Thank you. Now it is my pleasure to introduce Dick Weil, Chief Executive Officer of Janus Capital Group. Mr. Weil, you may begin your conference.Richard Mac Coy Weil Thank you, operator. Good morning, everyone. Welcome to the Second Quarter 2012 Earnings Presentation for Janus Capital Group. In the second quarter of 2012, we delivered an earnings per share of $0.13 compared to $0.12 in the quarter. Assets under management were $152.4 billion, down 7.1% versus March. Total company long-term net flows were $3.9 billion out in the second quarter compared to $2.5 billion out in the first. And we maintained an operating margin of 25.3% compared to the 25.9% in the first quarter. Let me just take a moment to tell you what I think the story of the quarter is, and then I'll turn it over to Bruce Koepfgen for some more information from him. And then, of course, as we always do, we'll take your questions. For the story on the quarter. Our highest priority here remains investment performance for our clients. We've seen some significant improvement, particularly in our U.S. growth franchise at Janus. But clearly, we have a lot more work to do, and that remains priority 1. We are disappointed with the flows in the second quarter, but we understand them to be in the context of a very challenging external environment for equities in general for actively managed equities in particular. With correlations returning to pretty high levels in the second quarter driven by macro risk-on, risk-off trading. This is a tough environment for active management, and it has been for a couple of years in this dimension. With extreme market volatility and a longer-term not such great results and equity markets more broadly, a lot of investors are scared and they're either doing nothing or pulling back from equities. As a result, active equity flows in the first half of 2012 has suffered about a $37 billion withdrawal, so we continue to face a challenging environment.
In the face of that, we're moving forward with our diversification strategy, with our planned organic diversification strategy, which, over time, will leave us much less exposed to the ebbs and flows in any single asset class. Toward that end, we continue to balance -- maintaining business discipline and margins with investment in our team and in our strategic priorities. We've added significant new talent in fixed income, in international, in U.S. institutional and in innovative new product areas. But at the same time, the strategy of organic diversification takes more time than we would like. We're on the right path and we are making progress, but these efforts are too new and, at this point, too small to drive dramatic changes in the flows and the results.Our balance business discipline maintained through this process has allowed us to control and reduce operating expenses $8 million compared to the last quarter. We've maintained a 25%-plus operating margin, and we've delivered in this quarter $71 million of cash flow from operations. Today, what we're seeing from our clients, from advisors, from institutions both in the U.S. and non-U.S. is they are risk-averse. There's strong demand for fixed income and there is -- that creates a very positive trend for our fixed income business. However, we're also challenged by the fact that many clients, particularly institutional clients, are shifting away from actively managed U.S. equities. This creates particular challenges for our INTECH subsidiary. Read the rest of this transcript for free on seekingalpha.com