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or other efforts successfully stabilize and add liquidity to the financial markets, we may need to modify ourbusiness, strategies or operations, and we may be subject to additional constraints or costs in order to satisfynew regulatory requirements or to compete in a changed business environment.The amount and mix of our assets under management are subject to significant fluctuations.Fluctuations in the amount and mix of our assets under management may be attributable in part to marketconditions outside of our control that have had, and could continue to have, a negative impact on ourrevenues and income. We derive the majority of our operating revenues and net income from providinginvestment management and related services. The level of our revenues depends largely on the level andmix of assets under management. Any decrease in the value or amount of our assets under managementbecause of market volatility or other factors negatively impacts our revenues and income. We are subject toan increased risk of asset volatility from changes in the global financial and equity markets. Individualfinancial and equity markets may be adversely affected by economic, political, financial, or otherinstabilities that are particular to the country or regions in which a market is located, including withoutlimitation local acts of terrorism, economic crises or other business, social or political crises. Declines inthese markets have caused in the past, and would cause in the future, a decline in our revenues and income.Global economic conditions, exacerbated by war or terrorism or financial crises, changes in the equitymarket place, currency exchange rates, interest rates, inflation rates, the yield curve, defaults by derivativecounterparties and other factors that are difficult to predict affect the mix, market values and levels of ourassets under management. The funds we manage may be subject to an unanticipated large number ofredemptions as a result of such events, causing the funds to sell securities they hold, possibly at a loss, ordraw on any available lines of credit to obtain cash to settle these redemptions, or settle in-kind withsecurities held in the applicable fund. The Company, in its discretion, may also provide financial support toa fund to enable it to maintain sufficient liquidity in such event. Our investment management servicesrevenues are derived primarily from fees based on a percentage of the value of assets under managementand vary with the nature of the account or product managed. A decline in the price of stocks or bonds, or inparticular market segments, or in the securities market generally, could cause the value and returns on ourassets under management to decline, resulting in a decline in our revenues and income. Moreover, changingmarket conditions may cause a shift in our asset mix between international and U.S. assets, potentiallyresulting in a decline in our revenue and income depending upon the nature of our assets under managementand the level of management fees we earn based on them. Additionally, changing market conditions maycause a shift in our asset mix towards fixed-income products and a related decline in our revenue andincome, as we generally derive higher fee revenues and income from equity assets than from fixed-incomeproducts we manage. On the other hand, increases in interest rates, in particular if rapid, or high interestrates, as well as any uncertainty in the future direction of interest rates, may have a negative impact on ourfixed-income products as rising interest rates or interest rate uncertainty typically decrease the total returnon many bond investments due to lower market valuations of existing bonds. Any decrease in the level ofour assets under management resulting from price declines, interest rate volatility or uncertainty, increasedredemptions or other factors could negatively impact our revenues and income.We are subject to extensive and complex, overlapping and frequently changing rules, regulations andlegal interpretations. Our investment management and related services business and our banking/financebusiness are subject to extensive and complex, overlapping and frequently changing rules, regulations andlegal interpretations in the countries in which we operate, including, among others, securities, banking,accounting and tax laws and regulations. Moreover, financial reporting requirements, and the processes,controls and procedures that have been put in place to address them, are often comprehensive and complex.While management has focused attention and resources on our compliance policies, procedures andpractices, non-compliance with applicable laws or rules or regulations, conflicts of interest requirements orfiduciary principles, or our inability to keep up with, or adapt to, an ever changing, complex regulatoryenvironment could result in sanctions against us, including fines and censures, injunctive relief, suspension24