“Looking ahead, we are committed to managing through expected near-term headwinds by focusing on further improving performance in our International Equity strategies, controlling costs in line with revenues and maintaining a conservative balance sheet. In keeping with the latter, we have reduced our quarterly dividend and recently repaid our remaining term debt. We believe these actions, coupled with the cash generating capacity of our business, will further strengthen our financial position.”“Artio’s success continues to rest on our ability to deliver superior investment returns for our clients. We are therefore pleased by the outperformance that we have generated year-to-date in the midst of a ‘risk-on/risk-off’ environment, particularly by our International Equity strategies, which has resulted in a significant improvement to our short-term Lipper rankings.” First Quarter of 2012 Comparison with First Quarter of 2011 Assets Under Management and Net Client Cash Flows Assets under management were $26.6 billion as of March 31, 2012, down $24.7 billion, or 48%, from $51.3 billion as of March 31, 2011, due to net client cash outflows and market depreciation. Net client cash outflows for the first quarter of 2012 were $6.0 billion, driven primarily by net client cash outflows from our International Equity I and II strategies, partly offset by net client cash inflows to our High Yield and High Grade Fixed Income strategies. 9 Revenues and Other Operating Income Revenues and other operating income for the first quarter of 2012 totaled $43.9 million, down 47% from $82.2 million for the first quarter of 2011. The decrease was driven primarily by lower investment management fees of $42.8 million for the first quarter of 2012, down 48% from $81.8 million for the first quarter of 2011, due primarily to lower average assets under management. Expenses Employee Compensation and Benefits For the first quarter of 2012, adjusted employee compensation and benefits expenses were $19.9 million, down 22% from $25.4 million for the first quarter of 2011. The decrease was due primarily to lower incentive compensation accruals and lower headcount, partly offset by an increase in the amortization of deferred incentive compensation awards.