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A. Assets Under Management (“AUM”)Fees for providing investment management and related services (“investment management fees”),substantially all of our revenue, are generally based upon the monetary value of assets in the accounts thatwe advise, the investment category of the account and the types of services that we provide for an account.As of September 30, 2009, the types of assets under management by investment category for the variousservices described below and held by investors on a worldwide basis were:Type of AssetValue in Billions Percentage of Total AUMEquityGrowth potential, income potential or various combinations thereof . . . $247.0 47.2%HybridAsset allocation, balanced, flexible and income-mixed funds ......... 98.2 18.8%Fixed-IncomeBoth long-term and short-term ................................. 171.3 32.7%Cash Management 1Short-term liquid assets ...................................... 6.9 1.3%Total ................................................ $523.4 100.0%1 Includes both U.S.-registered money market funds and non-U.S.-registered funds with similar investment objectives.Broadly speaking, the change in the net assets of our sponsored investment products depends primarilyupon two factors: (1) the increase or decrease in the market value of the securities held in the portfolio ofinvestments; and (2) the level of sales (inflows) as compared to the level of redemptions (outflows). We aresubject to the risk of asset volatility, resulting from changes in the financial and equity markets, includingchanges due to the recent volatility in global financial markets. In addition, because we generally derivehigher revenues and income from our equity assets, a shift in assets from equity to fixed-income or hybridfunds reduces total revenue and, thus, net income. Despite such a risk of volatility, we believe that we aremore competitive as a result of the greater diversity of our sponsored investment products available to ourcustomers.B. Types of Investment Management and Related Services1. Investment Management ServicesWe provide investment management services pursuant to agreements in effect with each of oursponsored investment products, which include U.S.-registered open-end and closed-end funds (“U.S.Funds”), non-U.S.-registered funds (“Non-U.S. Funds”), unregistered funds, institutional, high net-worthand separately-managed accounts, and the sub-advised accounts that we manage. Investment managementservices include services to managed accounts with full investment discretion, and to advisory accountswith no investment discretion. Advisory accounts for which we do not have investment discretion may ormay not include the authority to trade for the account. Our investment management services includefundamental investment research and valuation analyses, including original economic, political, industryand company research, and analyses of suppliers, customers and competitors. Our company researchincludes the utilization of such sources as company public records and activities, management interviews,company prepared information, and other publicly available information, as well as company visits andinspections. In addition, research services provided by brokerage firms are used to support our findings. Ourmanagement fee on an account varies, among other things, upon the types of services that we provide forthe account.6