Lots of moving pieces, difficult for you to build without seeing this underlying pieces and that’s why we are giving you the high level guidance on LTI. What you probably need to know is that right now we’re looking at the LTI expense for the full year 2015 being forecasted to be $70 million to $75 million. So that’s the numerator. In the denominator revenue there is also a lot of very difficult predictions that have to be made to get at this. The other revenue bucket stems some Velocity Shares product in which we see performance fees that move they have no tie to compensation. So, lots of moving pieces, where does that end us at the end of the day? Well, we run scenarios that put all of these drivers in, have all of their relationships embedded in our models and ultimately the stress is on our models come from running up and down market scenarios. When we look at these scenarios we end up with a range for 2015 of total comp to revenue it’s anywhere from 40% to 45%. I hope that’s helpful to you all. I know that doesn’t tell you what you need to nail it, precisely but at least it helps you see all the different moving pieces.
I will say that for the next quarter we have a little bit more visibility because it’s just a short in time horizon. We are looking at probably 42% to 44% of total comp to revenue for the first quarter of next year. So with that long explanation, I would like to turn it back over to Dick, for some closing remarks.
Dick Weil – Chief Executive Officer
Thank you, Jennifer. I will just return to the theme I started with.
In 2014, I think it is clear that we have taken a major step forward. During the year, we added significant talent to our already strong team. And we have seen considerable improvement in our fundamental equity franchise. We continue to make progress on each important element of our strategic initiatives, but it is not a time to declare victory. This progress is not been sustained for a long enough period of time to be secure. We are proud of our record in talent acquisition in innovation in our efforts to expand. Our vision continues to be: we plan to deliver excellence and active management across equities, fixed income, and asset allocation through strengthening our legacy franchises and also continuing to innovate in new ones.
Today, we are financially stronger and more stable than we have been. We have better investment talent and better opportunities with clients than we’ve had certainly at any time since I have been here, it still requires strong delivery, strong execution from here and that has our full attention. So with that, we will turn it over to you, operator, to take questions. Thank you!
Operator
Ladies & gentlemen at this time we will conduct the question and the answer session, in the interest of time questions will be monitored to one initial and one follow up question , if you like to ask a question please press *1 on your phone and you will be placed in a queue, in the order received. If you are using a speaker phone please make sure the function is turned off, to allow your signal to reach out equipment. Once again please star *1 to ask a question. We will pause just a moment to allow everyone an opportunity to signal to ask a question. We’ll go first to Dan Fannon from Jefferies.
Dan Fannon – Jeffries
Thanks, Good morning. Looking at the chart on the flows by channel. I was hoping you could give a little more color on the retail intermediary channel and the improvement in gross sales you’re seeing, and maybe focus a little bit on what’s changed, particularly within the equities franchise and separated from fixed income, and talk about where you’re seeing the most success.
Dick Weil – Chief Executive Officer
