Todd G. Owens:
See actually if you do the math, that’s correct. We’re not providing forward guidance for next year’s earnings. We are not forwarding guidance on earnings but as we look out, as we consider where the BDCs are craving today and our ability to raise equity capital there, we’ve had, it was important to point out that that dividend on the annual basis maybe above 90% of our earnings.
Question: Okay then following up on the dividend, is the expectation to try to target a dividend based on a pay-out ratio of 80% or so, you know when the dividend of January should be more in lined closer to an 80% pay-out?
Answer: Look the goal is to do an 80-90% pay-out over the long term. Initially, there’s gonna be some volatility to that percentage range and the board is very obliged to monitoring the situation.
Okay, thanks for answering my questions.
Tia:
The next question comes from the line of Mark Every with Golman sec. Please proceed.
Mark Every:
Great, thanks.
Question: Can you give us an update on the Sirlon fund in SMA build in 2015 just in terms maybe on what the pipeline looks like? I know you’ve hired Rene and I have an opportunity to build that institutional business and I’m curious how that’s gonna progress or you think that’s gonna progress as you look at sort of the opportunity set ready for 2015? Thanks.
Answer: You know we are pretty excited about the initial traction and it’s our first time hiring ahead of institutional sales and building out that function. And there’s a lot of balls in the air, so I hope that since we’re gonna have frequent calls, that we’re gonna have positive things to say on these calls regarding our institutional business. I think it’s a little bit too early to discuss it but I think there’s gonna be another call reporting some of our earnings and we hope to say some positive things about the growth of the institutional business.
Question: Okay and then you know in terms of the 2015 expanse outlook, obviously we’ve got some start-up causative manual with the Tokyo office in 2015, how should we think about as you don’t have capital raises in the BDCs and you have a little bit of pressure against on the top, how much flexibility is there in terms of the expanse plan or should we continue, is there any sort of variable cause structure that we should be thinking about? Thanks.
Answer: You know I think that’s a very good question. I’m in the middle of the budgeting process. Many adorations for next year. Thinking about all those different things, I will point out that several of our business plans, the management company lose money, which is things like the aircraft leasing team, the hedge fund, we’re operating the hedge fund, it’s a billion dollar hedge fund and it’s not a billion dollars, it’s 60 million. So at those scale, you can be able to get some efficiencies there. That will be offset of course by some new lines such as Japan. So from all intents and purposes, I’ve been actually through the budgeting processes, I’m pretty much detailed now, I feel like flat margins are a reasonable assumption.
(Right Alex?, Yeah, I was gonna say the same thing).
Okay great thanks.
