Welcome to the SEI third quarter earnings conference call (Operator Instructions). I would now like to turn the conference over to our host, Al West, Chairman and CEO. Please go ahead.

Good afternoon, everybody, and welcome. All of our segment leaders are on the call as well as Dennis McGonigle, SEI's CFO, and Kathy Heilig, SEI's Controller. I'll start by recapping the third quarter, and then I'll turn it over to Dennis, first to expand on a few financial matters, including an update on activities around our money market funds, and he will also remind you of the important characteristics of SEI's business model, and finally cover LSV and the investment in new business segment. After that, each of the business segment leaders will comment on the results of their segments, and then, finally, Kathy Heilig will provide you with some important company-wide statistics. Then, as usual, we will field questions at the end of each report. So let me start with the third quarter. Third quarter earnings fell 53% from a year ago on a revenue decline of 10% and diluted earnings per share for the second quarter of $0.18 represents a 51% drop from the $0.37 reported for the third quarter of 2007. Our earnings for the quarter were adversely affected by a third quarter charge to earnings of $40.8 million or approximately $0.13 per share. This was due to a further drop in the market price of the commercial paper of certain SIVs held in our money funds. As you know, this is a continuation of the SIV situation we have been addressing since the third quarter of 2007. Dennis will give you a detailed update of the SIV situation in a few minutes. Now, our 10% drop in revenue for the quarter was a result of the impact of the declining capital markets on our assets under management and administration. While we experienced gains in new business during the quarter, these gains were more than offset by…

Thanks, Al. Good afternoon, everyone. I will provide a further update on our money market funds that we have discussed at length in our past filings, 10-K and 10-Q, and our past earnings calls. I also have a few comments on our business as a whole, and I'll briefly cover third quarter results for the investments in new business and LSV segments. During the third quarter, 2008, the credit markets continued to deteriorate. These difficult market conditions further reduced the market values of the collateral underlying the money market fund SIV holdings. The reduction in market value resulted in a direct increase in our obligations under the support agreements we have in place and also triggered some additional actions. As you are aware from our prior calls and 10-K and 10-Q filings, SEI entered in the capital support agreements with three SEI money market mutual funds back in the fourth quarter of 2007. Among other money market instruments, the funds hold senior notes issued by structure investment vehicles, or SIVs, which seize making payments on their outstanding notes on their scheduled maturity date. In regards to our money market funds, I will walk through each covered fund and provide an update. Our SDIT Money Market fund held one SIV security. On September 30, 2008, SEI purchased directly from this fund the last remaining SIV holding. This purchase was completed at a cash price of $15.3 million. This price represented the amortized cost plus interest of this security. We now carry this security directly on the balance sheet of SEI. As a result, the capital support agreement on the SDIT Money Market portfolio will lapse. During the quarter, SEI took a pre-tax loss of $5.6 million on the security. The aggregate amount of losses recorded related to it are $6.6 million.…

(Operator Instructions). Our first question comes from the line of Murali Gopal with KBW. Please go ahead.

Okay. Just wanted to quickly ask you, the SIV security that was purchased and brought on to your books, why did you choose to do that specific security versus the others?

The primary reason was it was the only security in that one particular money market fund. We thought it made sense to just clean that fund out and take it off the table in terms of the capital support agreements. Also, as we have had some follow-up conversations with rating agencies, they're kind of ongoing; that fund is rated AAA by Moody's it just made those conversations a heck of a lot easier.

Okay. When I look at the restrictive cash of $34 million you had at the end of the quarter, is that all segregated cash toward meeting any ultimate obligation on this front?

You mean the cash on our balance sheet?

Right. The $34 million, the restricted cash, not the cash and short-term investment.

$20 million of that is restricted to this purpose. The rest of that is restricted really in the context of some subsidiary companies for capital reasons or regulatory restriction.

Okay. And could you give us an idea on how you arrived at the $20 million number?

Sorry. Give me that again.

The $20 million number, how that was arrived at?

The $20 million cash collateral?

Right. The segregated cash that you have toward this purpose. Why did you choose to keep $20 million or and not something more?

Well, at the time we had to increase our support amounts. This has gone back quite a few months now. We've had this cash collaterals there for a while. We just decided with an easier more convenient path to go down. We have within our credit facility the ability to attach another $50 million LC. That's an option for us that we could just swap out the cash for LC, but this was just more of a convenience.

Okay. Lastly, the marketable security, you have $86 million, what is that comprised of?

The bulk of those marketable securities are Ginnie Mae securities that are held on the balance sheet of our thrift subsidiary for qualified thrift lending purposes as in that test.

Okay. Thank you. That's all I had.

You're welcome.

Our next question comes from [Rick Dwider, Altus Capital]. Please go ahead.

Yeah. Is there any way of assessing the probability of whether or not the SEC will allow you to extend your capital support agreements?

We're in conversations with them now. We've applied for the extension and are waiting to hear back from them.

Is there any precedent there?

I do not believe so. There have been maybe some extensions issued in the past, but since we were one of the early first complexes to put a capital support agreement in place, maybe we will be a precedent center. But they have granted extensions in the past, so it's not new territory per se.

So tell me again, if you move that $374 million on your balance sheet, how do you fund that?

Well, we have a $300 million credit facility that's available and we have a $185 million roughly of available cash.

Okay.

Immediately available. We have additional cash assets that are available to us, just would take a few days to free up from different subsidiary companies. We have significantly more available capital than we would need to do that kind of a transaction. In addition to that, we're very high cash producers on a regular basis. Our cash flow, unlike some other industries are not cyclical. They're fairly consistent. Cash is positive.

Last question. If they were to not extend it, is there any reason that you think they wouldn't?

I can't speak for the SEC.

All right. Thanks.

I wouldn't be able to answer that.

Thanks.

You're welcome.

Our next question comes from Tom McCrohan with Janney Montgomery Scott. Please go ahead.

Thanks. My question was asked and it was about the SEC approval. Thanks.

Thanks, Tom. If there's no more questions, then I'll continue on. Before I cover the investments and new business segment, I would like to make a few comments about SEI and how our business is responding to the current market environment. As you all know, approximately 75% of our revenue stream is sensitive to market fluctuations. While this may lead some of the investing community to categorize us as an asset management firm, we do not feel that truly represents the uniqueness of our business. First, our asset management client relationships are typically broader than an investor relationship. Our clients have selected SEI based on the completeness of our solutions, which include consultative operational and technological elements in support of their business or personal goals. Secondly, unlike many firms that have client relationships built upon a single investment product or style, our clients are typically invested in a globally diversified portfolio made up of multiple asset classes and styles. This adds a level of investment stability in markets like these. We are not a product provider. Finally, nor are we a direct to consumer marketer of our investment solutions. This gives us a stability of clients in emotional times like these. It doesn't mean our clients serving as intermediaries are not dealing with emotional individuals, but the fact that they provide a layer of professional judgment and reduce our volatility. Just as we are not a typical asset manager, we are not like some of those providing operational outsourcing services. Large competitors like banks carry additional risks to their business that we do not. In this environment, we have seen how this has added a level of volatility and uncertainty to their business that we just don't have. Our operational relationships are also under long-term contracts and a diversity of…

(Operator Instructions). Our first question comes from Tom McCrohan. Please go ahead.

I was wondering, Dennis, if you could (inaudible) the $1 billion of inflows into LSV. How many clients does that represent? Was that one big client adding new money or is it a variety of clients?

That was a variety of clients.

Okay. Could you elaborate on what specific products are receiving money versus which specific products are kind of witnessing the most adverse consequences from the market depreciation going on?

Yeah, I don't have that granular level of cash flows, Tom.

Understandable. Okay. Thank you.

Value style across the board has been beat up pretty good. The market depreciation I'd say is pretty much across the board.

Our next question comes from [Eric Connolly]. Please go ahead.

Hi. Have there been substantial clients' redemption notifications for LSV that will take place in the fourth quarter?

Not that I'm aware of, no.

Have there been any significant changes in opinion for the consultants recommending LSV?

I guess I can't say I'm as closely involved. Just as a background, we don't get that involved in the day-to-day running of LSV. Their interactions with the consultants, for example, we're not in the middle of.

All right.

I couldn't tell you.

Next question comes from Jeff Hopson with Stifel Nicolaus. Please go ahead.

Okay, thanks. Dennis, just in terms of spending for the overall organization, any change in how you are looking at some of the investments that you have talked about in the past as far as timing or amount?

Now the key strategic investments, we continue to maintain our level spend against, particularly the largest one we're all certainly well aware of, GWP platform, the continued investment that we've made in. I can't tell you we've got additional investment in infrastructure type areas like service or client relationship for operations in line with that because we have a pretty good baseline of investment already in place. But we're not rethinking that in terms of changing the path we're on despite the market activity. On the spending front, I'll just reiterate, we do have some flexibility in our spending model. That certainly has adjusted as revenues have adjusted and profits have adjusted. As always, I think we try to stay on top of on all of our spending to make sure we're getting the most out of the dollar capital outlaid. Now, maybe we're a little more heightened to that than we were six months ago or even a year ago. I'd say that's probably the case, but it is not out of the ordinary.

Okay. Thank you.

You're welcome. Operator Our next question comes from Murali Gopal. Please go ahead.

Dennis, can you give us an idea about of the total assets at LSV, what proportion is non-US equities?

Again, I don't have that granular detail in front of me. I'd say they are slightly more proportional to US equities. This is the general rule.

Okay.

I think if you go to the LSV site that information is available.

Right. Okay. The last posted was about 50% non-US equity. So I wanted to confirm that.

Non-U.S products invested in US equities, you are right.

Okay. And another general question, when you say 75% of your revenues are linked to asset values in some form or shape, is that based on period ending or average assets for the quarter?

In terms of how we generate revenues?

Right.

It depends on the business line. For some of our businesses, it's ending month end assets, and for other businesses, it's average assets over the period.

Would you tell us how that breaks out? What proportion maybe period end versus average?

Generally speaking, the institutional business for the most part is period end, the other businesses are average assets.

Okay. Thank you.

Okay.

At this time we don't have additional questions. Please go ahead.

Thank you, Dennis. I'm now going to turn it over to Joe Ujobai to discuss our private banking segment.

Thank you, Al. Today I would like to review our financials and give you an update on our market activity. As a financial update, revenue of just over $99.8 million declined by 4.2% from the year ago quarter and 3.6% from the second quarter of 2008. Revenue decline was due primarily to a decrease in assets under management from our distribution clients and a decrease in one-time fees in our wealth processing business. Average assets under management for the quarter were $16.5 billion, a decline of 23.5% from the year ago quarter and a decline of approximately $2.6 million from the second quarter of 2008. Approximately 70% of the decline in assets in the third quarter was attributable to market depreciation and 30% resulted from net client redemptions. Profit decreased from the year ago quarter by approximately 5.1% to $20.3 million. Profit increased by approximately 11.5% from the second quarter of 2008, primarily due to increased expense control. Margin for the quarter was 20.4% and increased from the second quarter. As I've often mentioned, we expect to see continued volatility around our margin as we launch Global Wealth services in Europe and in the US. Overall margin in the segment is also under increased pressure due to lower asset management balances and a pullback on wealth processing one-time revenues from our US banking clients. Longer term, we expect strong margins as we grow and scale our private banking business on the new platform. As an update on mark activity, market conditions are at present very challenging, also at the end investor, an intermediary or bank level. We remain focused on our strategy and the key opportunities of our business. We are actively engaged in four areas: Number one, the continued roll out of Global Wealth services. We are finalizing a…

We have question come from Tom McCrohan. Please go ahead.

Hi, Joe.

Hi, Tom.

Could you drill down a little bit on the expense control, I mean in prior quarter's as you saw in the past when you have had headwinds from market depreciation and declines in assets under management, you've seen kind of pressure on the margins, and its kind of interesting this quarter to see the margins go up despite those headwinds?

Well, we've making a real significant effort around expense control. So, as we launched a new solution, we have reallocated resources in the business. So areas like personal cost have actually gone down a bit. Unfortunately, expenses like sales comp and incentive comp have also gone down because we haven't sold as much business as we would like to. We are just getting a lot tighter around the current operating platform, and again, we've invested a fair amount already in the launch of the new platform, and until we see additional assets come on and revenue associated with that, we are been very careful with our spending.

Okay. Thank you.

We have follow up question from Jeff Hopson. Please go ahead.

Okay thanks. Joe, could you give us some further thoughts on the US bank market and how you are positioned there. I guess thinking about I guess of Bank of Americas is a big potential area of concern to the extent that they acquire. In terms of the outsourcing of the investment management solutions, so basically you are saying clients that have performed poorly with their investment products are considering using you because of that poor performance. Is that right?

Okay. I'll answer the first question. We are obviously standing close to the market and trying to understand how consolidation may occur. Your comment about Bank of America is true in that, they typically haven't been a client of ours and they generally are in-sourcers, but, if you look at our client list, we do have a number of strong players, for example, Wells Fargo as you all know is one of our longest term clients and is a good customer of ours, and their acquisition of Wachovia, although still very, very early, could be an interesting opportunity for us. We have a lot of other larger clients that are quite strong and have done well in the current market conditions. So, it's hard to tell how these M&A activity goes. Sometimes it goes in our direction, sometimes it goes against us. But, we are actively engaged in conversations with our clients, understanding their direction and stand close to help them as they make some of these decisions. Regarding outsourcing of our asset management solutions, Life solutions, I think most of our bank clients are manufacturers, and it has been increasingly difficult in these markets for active managers to be benchmarks and to meet the expectations of the clients. And those businesses are getting smaller and not getting any bigger and so we believe there's an opportunity for us to continue to talk to our clients about our asset management capabilities, and we are seeing increased amount of activity from the prospecting and marketing side in that area.

Okay. And if I could follow up on the US, can you give us an update on when GWP will be put in place in the US? Any thoughts if that could be accelerated or decelerated, I guess.

As you know we've signed two initial clients to two [DWP] in the US, Frost Bank and Centier Bank, and we are looking to convert those banks probably in the 2010 timeframe. I don't see us accelerating that. I think that we are continuing to focus on our significant opportunity in Europe, and we continue use Trust 3000 as a significantly workhorse in the mark, and so, I don't see us accelerate that.

Okay. Great, thanks.

At this time, we don't have any additional question. Please continue.

Thank you, Joe. And our next segment is investment advisors. Wayne Withrow will cover this segment. Wayne?

Thanks Al. Revenues for third quarter decreased $6.9 million or 10.5% from a year ago period, while our average assets under management during quarter were down $5billion from the same period last year. Third quarter net cash flow was a negative $400 million, reflecting dispersements of $2.1 billion and receipts of $1.7 billion. The $2.1 billion in dispersements weighed heavily on our total net flows, and were $600 million higher than the third quarter of last year. Receipts on the other hand, while below our quarterly totals in 2007 were essentially flat from the second quarter of this year. Profits for the quarter decreased 18.5% from the year ago period, due primarily to a decline in our average assets under management, offset slightly by expense controls. Sequentially, profits dropped $2.2 million as expense management allowed us temperate a $3 million drop in revenue. Obviously, these results are before the big market declines in October, and those declines will make the fourth quarter a challenge without some recovery in market values. While investor uncertainty and declining markets have had a profound effect on the first half of this year, it is fair to say that the third quarter reflected a little panic on the part of end investors. Having recently returned from a Four City Conference road trip with 200 of our large advisors, I observe that fear of market uncertainty is starting to creep into the minds of some advisors. Please keep in mind, however, that while the near-term financial pain of this fear is evident in their results, it is times like this that allow the value proposition of our total business solution to shine. One example is our production of new, ready to use end investor market reassurance pieces. I hear comments from advisors all the time like they are the best I have seen or nobody else is doing this for us, please keep it up. These types of activities will enable us to cement our long-term business relationships with advisors. In addition, the chaos in the market is allowing us to find new advisors. During 2008, our cash flow from new advisors has already topped $460 million and I would expect cash flow from new advisors to accelerate over the next 12 months. Strong relationships with existing advisors and a robust pipeline of new advisors should position us well for when the markets recover. In summary, declining market valuations and investor uncertainty have had a negative impact on our third quarter financial results and may make the fourth quarter challenging. But over the long-term, we remain confident in the value of our advisor solutions. I will now take any questions you have.

(Operator Instructions). We have a follow-up question from Jeff Hopson. Please go ahead.

Okay, thanks. Hi, Wayne. The new advisors, are you saying that potentially you may get more of their business than you originally thought because of challenges in the market? And then, two, what are the prospects for signing new advisors, has that changed any?

I think while there's uncertainty in the market, it creates a challenge for advisors that are now looking to maybe do business at different way. Outsourcing is a solution they would consider. So I think the market for new advisors has improved as a result of the uncertainty in the financial markets and we are directing efforts to sign new advisors at an ever-quickening pace.

Okay. Great. Thanks.

At this time, we don't have any additional questions. Please continue.

Thank you, Wayne. Our final segment today is investment managers. I'm sorry, Ed. Okay, everybody.

Hi, Al.

Institutional investor segment. I'm going to turn it over to Ed Loughlin to discuss this segment.

Today, I'm going to speak to the financial results for the third quarter of 2008 compared to the year ago period, and also touch on worldwide institutional sales activity. The financial results for the quarter continue to show modest revenue and profit growth compared to both the year ago period and also the second quarter of 2008. Negative capital markets throughout both periods dampened the financial results for the segment. For the quarter, revenues approaching $53 million increased 3% and profits of $22 million increased 9% compared the third quarter of 2007. Strong new client funding for the period helped to offset the 16% decline of an actively managed 60/40 portfolio during the annual period. Margins for the segment were 42%, representing a slight increase over the year ago period. Quarter end balances were approaching $45 billion, reflect a $4 billion decrease compared to the third quarter of 2007. This is a direct result of the negative capital market environment during the period. Net new client funding for the quarter was $903 million and the backlog of committed, but unfunded sales was $2.2 billion at the end of the quarter. The large client funding in the Netherlands, which we've talked about before, was delayed due to the client selecting Lehman Brothers as the transition manager. A new transition manager has been appointed and the funding should be complete by November 1. New client signings for the third quarter totaled $1.1 billion and we're pleased with having sold $6 billion in new client assets towards September. However, we are seeing institutional decision making slowing down due to the weakened economic environment and volatile negative capital markets. We are hopeful that as optimism returns to the market, institutional investors will actively evaluate the benefits of delegating investment management responsibility to an outsourced provider like SEI. Our solutions are well positioned in the market and we continue to execute our strategy to build the pipeline and grow the business. This concludes my prepared remarks and I'm happy to entertain any questions that you have.

(Operator Instructions). We have a follow up question from Murali Gopal. Please go ahead.

The $1.1 billion in new client sales that you mentioned, when do you expect that to fund?

I would say the bulk of it will probably fund between now and the end of the year.

Okay. I know you said that the decision-making, it's kind of been delayed generally amongst your clients, but could you talk specifically on the pension clients, and in this current environment given all the volatility, how they are looking at the [whole paying] and what are you hearing from them, just a little bit more color on that.

Well, I guess a couple of things. I think that generally the positive side of this is we continue to see prospects taking meetings, so first time meeting. Sp we continue to see potential clients talk about a change. I think that where we're seeing the slowdown is that they don't necessarily a put definitive date for when they want to conclude their due diligence because many of them are preoccupied with their own business, and this is not the most pressing issue that they see. I think that's the same issue that we see in endowment foundation space and it's pretty much the same dynamics around the world.

Okay. In terms of the new client sales that you had in the quarter, the $1.1 billion, what was different in that case that the client decided to make a decision. I mean, was there anything unique about the client situation?

Well, each of them had really been on a course to make a decision. They were pretty close to concluding that. It was a pretty diverse group of clients, including hospital clients, a public fund, some not-for-profit, and there were corporate pension plans. So there's nothing I could point to that was specific market environment that caused them. They were pretty diverse.

Okay, thanks. That's all I have.

Sure.

And you have a follow-up question from Tom McCrohan. Please go ahead.

Hi Ed, how are you?

Hi, Tom.

Can you remind us what portion of your revenues is tied to market valuations?

Sure. 100%.

Okay. So with the decline in asset balances this quarter going from $48.5 billion to $44.7 million, how do we attribute the increase in revenues then?

The increase in revenues were primarily attributed to the fact that we did fund new clients during the quarter, So during the quarter, there was close to $2 million of new revenue that came in attributed to those new clients. There was a one-time payment that also came in. So that's pretty much it.

Okay. Thanks.

Sure.

We have no additional questions.

Thanks, Ed. And finally, we do have our last segment today, investment managers. And I'm going to turn it over to Steve Meyer to discuss this segment. Steve?

For the third quarter of 2008, the investment manager segment experienced increased revenue and profit from the same quarter a year ago. Specifically, for the third quarter of 2008, revenues for the segment totaled $38.2 million or a 6.6% increase compared to the same quarter a year ago and a 2.4% increase over the second quarter of 2008. This growth was primarily attributable to net new client fundings and existing client growth. Our quarterly profit of $11.6 million was up 11.9% from the same quarter a year ago, but was down 5.4% from the second quarter of 2008. This decrease in profit from the second quarter of 2008 was due to the timing of certain expenses. Our third-party asset balances at the end of the third quarter of 2008 were $256.6 billion or $27.9 billion higher than at June 30, 2008. This increase in asset balances was comprised of approximately $33.7 billion in additional net client fundings and additional paid-in capital, which was offset by a negative $5.8 billion in market depreciation. During the third quarter of 2008, the segment had new business sales events totaling approximately $5.8 million in annualized revenue. This quarter was reflective of the slowing in sales decisions we were starting to see and mentioned in the second quarter call. From a market environment standpoint, these are obviously challenging times. The slowing in the sales decision process that we saw in previous quarters has continued to permeate and expand. Current capital markets continue to present a challenge to our investment manager clients and has redirected their attention. Many of our clients are focused on their current client base and have delayed new agendas. Our goal as always is helping clients succeed. To that end, we are committed to helping our clients with the current challenges by…

(Operator Instructions). We have a follow-up question from Jeff Hopson. Please go ahead.

Okay, great. Thanks. Can you give us more details on the new business this quarter as far as how much came from that? Was that one large or just a few large inflows, and then in terms of existing clients, I assume your concern is around the hedge fund area, any thoughts on kind of what's happening with your clients there?

Sure. Are you talking about new business sales events for the quarter? So the new business sales events were broken. Primarily there were several deals and they were about 60% from the alternative managers and 40% from our traditional managers spanning our SMA, institutional and mutual fund product lines. As far as the clients, it's not just hedged. I think this is one of our strengths, we do have a very diversified base and these markets obviously are impacting not just our hedge and alternative managers but also traditional managers as well, especially those that have money market funds etcetera. We are still seeing how things pan out, but on the hedge side, I think you are seeing impact across the industry as follows; one, there's the obvious performance drain that the markets have caused, and obviously, there's a spectrum of that performance impact depending on the type of strategy those hedge managers have. Two, you have the downward pressure of redemption that these managers are now having. Since most of these products are monthly or quarterly, I think we're going to start to see them. We've not seen that drain yet, it's not passive numbers, but we will start to see that at end of the fourth quarter, and into Q1 of '09. I think looking at the industry, there are managers in the hedge space who are more of the small boutique type. I think those managers especially given the performance and where they are, will see them being purged kind of the system in this, and they will probably pack up shop and go away. Luckily, that last one, we had the least impact to. We typically have focused on the more established and long standing managers and don't have many of the startups. So, we are not impacted by that, but certainly are seeing the impact of the redemption and performance hit our alternative managers but also kind of our traditional managers as well.

Okay. Great. Thanks a lot.

Sure.

At this time we don't have any additional questions. Please continue.

Thank you, Steve. And I would like Kathy Heilig to give you a few company wide statistics. Kathy?

I have some additional corporate information. Third quarter cash flow from operations was $97.6 million or $0.50 per share, year-to-date cash flow from operations $210 million or $1.08 per share, and the third quarter free-cash flow was $64.4 million. The third quarter capital expenditures were $14.7 million year-to-date, capital expenditures $23.7 million, and they exclude the Global Wealth platform. Capital expenditures for the remainder of 2008, again excluding capitalized software are expected to be $7 to $10 million, which includes about $3 million of new facility expansion. The tax rate for the third quarter was 36.5%. We expect the 2008 tax rate to be approximately 37%. And the accounts payable balance at 9-30 was $12 million. We would like to remind you that many of our comments are forward-looking statements and are based upon assumptions that involve risks and that the financial information presented in our release and on this calls is un-audited. Future revenues and income could differ from expected results. We have no obligation to publicly update or correct any statements herein as a result of future developments. You should refer to our periodic SEC filings for a description of risks and uncertainties that could affect our future financial results. And please feel free to ask anymore questions that you may have.

We do have a follow-up question from [Ravi Gautham]. Please go ahead.

Al, I was going to ask you, given your long experience in this business, when you look at the current environment and the challenges today, how do you view that from the perspective of say, 2000, 2001, and in your opinion what's different this time?

The difference seems to be that it looks a little bit more prolonged than it was in '87 or 2000. And I believe in '82 we had a relatively prolonged economic downturn, but didn't have the crisis in the financial markets, so this lack of confidence has been one that has kind of, I wouldn't say new, but it seems to be much more pronounced at this point. I think that, as every one of these, we have come through them fairly well and have been a lot stronger afterwards because it does show people that are do-it-yourself is that it's very difficult as individuals and even institutions. It is difficult do-it-yourself. And then, secondly, even in the technology, risk management is so important these days. And without the really a first rate system either, what we have in GWP or what Steve Myer has in his TOO, I think these things are going to come out the other side looking very attractive to our target markets. So, I just hope this thing isn't too long. That's the only thing, and you have to be patient.

Is that your top concern?

I'm sorry.

What would you say is your top concern in this environment that this could be?

It just drags on, and people drag their decisions. We are finding that there are clients or potential clients that are being aggressive in the non-bank wealth manager space for sure, and then in these areas. We are just looking for what we can do, and we are also bearing down on what we are doing, and trying to move things faster and doing better and just keep our head down.

Okay. Thanks. That's helpful. I also wanted to ask, Steve, if you can give some color and granularity especially in the hedge fund clients and in terms of assets booked client, what may be the top five clients? What's the total asset for the top five clients?

We typically don't give them out and break it down that far probably, but, the business has been traditionally around 50% alternatives, 50% traditional, again stretching across, mutual fund SMAs, institutional account. I would say the hedge right now might be a little bit higher than that, overall. But again, we have over 200 clients in the segment. So we don't really have a core concentration in any one client. We certainly have a number of large institutions. As I said before, our target market across investment managers is really what we define as a core medium, and they range from $5 to $35 billion of the assets under management. So that has given us a good diversity and spread among many different managers of different product types and solution types.

Okay. That's very helpful. Thanks.

Sure.

Okay. Thank you, Cathy. Despite some of the external short-term uncertainties we face and its impact on our short-term results, the strength of the company is really allowing us to stay the course on our transformation. While we have got a lot left to do, we are making really important strides and definitely feel our efforts will eventually be rewarded. So we remain excited about what we are building and before I say good afternoon, you can have this chance to ask anything else. Is there any questions still lingering?

(Operator Instructions). At this time we don't have any additional questions.

Okay. Thank you, everybody. I appreciate your attendance and have a good afternoon. Thank you.

Ladies and gentlemen, this conference will be available for replay at 2 O'clock Eastern Standard Time today through January 22, 2008 at midnight Eastern Standard time. You may access the AT&T Executive Replay system at anytime by dialing 1800-475-6701 and entering the pass code 966006. That does conclude our conference for today. Thank you for your participation and using AT&T Executive Teleconference.