We continue to benefit from our affiliates outstanding investment performance and our strategic focus on global and emerging markets equity and alternative products … We anticipate and are seeing early signs of broad based reallocation to return oriented products by both retail and institutional investors.

We believe that the outsized flows into fixed income products over the past several years will inevitably reverse. And when that occurs, AMG will not be impacted by the decline of assets from fixed income outflows or the depreciation and value of fixed income products …

... We think that a broad based reallocation from fixed income into risk assets is inevitable. Whether we're seeing it now is uncertain. Certainly, there is anecdotal information in the industry trends broadly, and we have seen anecdotally some evidence that this is occurring.

Now, one point regarding the significant growth in passive allocations, generally, we believe that this is ultimately very good for truly differentiated return oriented managers, as clients are dividing their portfolios between passive exposures and alpha, which I would define broadly as including all the ways clients are taking risks to their actual return.

These so called barbell approaches clearly benefit providers of passive market data, but they also benefit the better providers of this extra return. Now, we view this as a long-term trend and believe that funds such as our performance oriented affiliates will continue to attract strong flows, as they have, even as passive product grow.

As we look forward into 2013, I think it will be a very strong year for the industry, and I think it will be a very strong year for AMG. We entered the year with a very good pipeline. And if you sort of look forward and think about the broad trends and this will be 2013 and beyond. The first and most important when we're talking about boutique firms, we have demographic issues, demographically driven success in transactions or to some extent inevitable. They may not all go to AMG, but every boutique firm have to at some point have a solution to their demographically driven transition issues.

And what's important to understand is the base of firms that face these issues has expanded globally among traditional firms, but also includes an increasing number of alternative firms, also includes for us, wealth management firms.

Second thing to understand is that when you have a period of rising markets and relative stability, then those are the essential ingredients for an acceleration and activity. And it seems as if, certainly the year is beginning in that way. Obviously, if we have some event, which with renewed market volatility, that would have a chilling effect on transactions.

But it's important to understand, there has been a big build up of these potential transaction across the industry, and of course, for us as well. And so we're quite optimistic as we look forward.