Host: Martin Soong

Host: Todd up in Hong Kong, we were talking to … just post that surprise 50 basis point price cut and said look guys it’s not just because we’re in a shallow recession it’s also because of the tight credit conditions outside New Zealand which are having an effect that doesn’t surprise you, does it?

Todd G. Everts: No, it doesn’t surprise the fact that they were lowering. It’s obviously surprised that they did such an aggressive stance which shows that they do have a real interest in obviously their monetary policy and they’re taking into an account the fact that they’re involved in an inter-dependent global economy. But if I could ask Magnus a quick question in reference to his view on interest rates in Australia, if commodity prices stay low and don’t rebound and minerals in particular stay at the level they’re at, do you think the Australian policy and interest rates are going to stay the same?

Magnus Prim: I think that in terms of their policy stance they are still looking to cut rates. Obviously commodity is something that has given a significant boost or support to the economy in terms of giving significant gains in terms of trade but having said that I think that they remain on a pretty firm trajectory towards a lower rate but they don’t seem to be in a rush to bring them down aggressively as we have seen signs that RBN said is.

Host: Todd just a sort to tie up loose ends and wrap things up. When you meet with …we described you as sort of an honest broker dating agency, when you meet your clients what are you telling them these days?

Todd G. Everts: Well, when we’re meeting with our clients we’re not actually coming out with our position we’re asking them what it is that they need and because we take that consultative approach and what we’re finding is our clients are constantly asking us for asset classes that don’t correlate ..generally they’re not looking for another fantastic stock picker, a bond picker or someone that has a global macro strategy. They’ve developed their own policy and what they’re asking for us is what else in the market is..what asset classes in the market that don’t correlate should they be looking at, and our response is it’s quite broad from US-oriented specialized alternative investments to emerging markets. And that theme of non-correlating assets with a counterparty that has a strong balance sheet is the constant demand that we keep hearing from our clients all over the world.

Host: Does that surprise you though, I mean looking for non-correlating assets on the surface sure makes perfect sense to me but at the same time shouldn’t they be looking less at assets and more let’s say, strategies?

Todd G. Everts: Well, they have their win strategy and obviously their own assets in their own market. And so if they’re allocating 5 or 7 percent abroad they want it into an asset class that doesn’t have a correlation to their own market and so since many markets will rise and fall not identically but have a follow-on effect because of the underlying asset class they want an asset class that doesn’t look like their own existing asset class.

Host: Alright Todd great to talk to you thank you so much for the time.

Todd G. Everts: Thank you, Martin.