I’d now like to turn the call over to Tom.

Tom Faust

Good morning and thank you for joining us. I am happy to report that our second fiscal quarter marked the return to positive organic growth for Eaton Vance with $567 million of net inflows into long-term funds and separate accounts during the quarter.

Our second quarter net flow results showed sequentially improvement across all categories of investments, equities, fixed and floating rate income, and alternatives, and among funds and separately managed accounts of all flavors, institutional, high net worth and retail. We achieved positive net flows primarily on the strength of net sales into Parametric’s structured emerging market equities, our tax managed bond and high yield income strategies, Global Macro Absolute Return, Parametric’s index tracking and overlay products.

We reported $0.45 of adjusted earnings per diluted share in the second quarter, which compares to adjusted diluted EPS of $0.47 in the prior quarter and $0.52 in the year ago quarter. As noted in the press release, earnings per diluted share were increased $0.01 and $0.03 in the prior and year ago quarter respectively by gains recognized on the 2011 sale of our interest in Hong Kong-based equity manager, Lloyd George Management.

And as Laurie will address in a few minutes, earnings in the first quarter of this fiscal year also benefited from $0.02 of other investment gains that did not recur in the second quarter. If there was a theme for our second quarter, I would say, it is improvement. In the quarter, we saw improved gross and net flows, improved investment performance, improved financial strength, and most importantly, improving opportunities. As I comment further on the results for the quarter and our prospects going forward, please refer to the PowerPoint slides on our website. We ended the second quarter with managed assets of $197.5 billion, 3% ahead of where we finished the first quarter and within 3% of our peak AUM reached 12 months ago.

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