A year ago we were among the relatively few asset managers that expected the combination of continued strength in the U.S. economy, improving conditions in Japan, and weakness most everywhere else. We expected -- and saw -- that lackluster economic activity and earnings in the emerging markets would produce a "value trap." Further, while we did not expect the price of oil to fall as precipitously as it did, our outlook for commodity weakness and dollar appreciation was accurate. On a relative basis, our investors' portfolios benefited from these macro views. Yet absolute returns were weak, leaving most investors short of their long-term targets. For 2016, we expect a year of transition in world capital markets as we enter the later stages of the post crisis market cycle in the United States. In this environment, markets are more discerning, volatility increases, earnings matter more and investors are more likely to benefit from the skill of active managers than the momentum and flows of the broader market. Our portfolio positioning for 2016 reflects this transition. We anticipate as the year unfolds investment opportunities will develop outside the United States which should fuel an asset allocation rebalancing to non-U.S. regions.