Full Year 2011 Comparison to Full Year 2010
Net Client Cash Flows
Net client cash outflows for full year 2011 were $16.7 billion, driven primarily by net client cash outflows from our International Equity I and II strategies 8.
Revenues and Other Operating IncomeRevenues and other operating income for 2011 totaled $276.0 million, down 18% from $335.1 million for 2010, driven primarily by lower investment management fees. Investment management fees were $277.2 million for 2011, down 17% from $334.0 million for 2010, due primarily to lower average assets under management. Expenses Employee Compensation and Benefits For 2011, adjusted employee compensation and benefits expenses were $86.9 million, down 1% from $87.9 million for 2010. The decrease was due primarily to lower accruals for incentive compensation, partly offset by accruals related to the Company’s long-term incentive plan implemented in 2011 and higher costs related to the amortization of deferred incentive compensation awards. GAAP employee compensation and benefits expenses were $105.2 million for 2011, an increase of 6% from $99.0 million for 2010, due primarily to the Compensation Charge recorded in 2011, partly offset by the reasons noted above. Shareholder Servicing and Marketing Expenses Shareholder servicing and marketing expenses for 2011 were $18.7 million, down 7% from $20.1 million for 2010, driven primarily by lower custody and platform costs, and a decrease in marketing expenses. General and Administrative Expenses General and administrative expenses were $39.5 million for 2011, a decrease of 8% from $42.8 million for 2010, driven primarily by lower costs across several categories. Income Taxes For 2011, the adjusted effective tax rate was 42.1%, 1.3 percentage points lower than 43.4% for 2010, due primarily to a lower apportionment of income for state and local tax purposes.