McDonnell is wholly-owned by a team of professionals who were instrumental in developing this business in 1987, when our group operated a separate account management business as part of Van Kampen Investments. Founded by Dennis McDonnell and Edward Treichel, the business evolved and expanded throughout the 1990s, as numerous institutional and private client advisory relationships were formed. Performance track records were established by the group for various investment grade fixed income products.

As the separately managed accounts (SMA) business gained momentum with brokerage firms and independent financial advisors throughout the 1990s, the firm (then known as Van Kampen Management Inc.) secured participation with several key sponsors through the offering of both tax-exempt and taxable investment grade strategies. Growth in the institutional channel continued steadily across diverse client types. In addition, the organization expanded its sub-advisory relationships in 1998 and again in 1999 for a tax-exempt trust and an intermediate taxable bond fund.

In May of 2001, McDonnell Investment Management, LLC was organized by the original founders of our business unit at Van Kampen to acquire substantially all of the assets of the business, an acquisition that occurred on October 31, 2001. McDonnell opened its doors as an independently owned registered investment advisor on November 1, 2001 with more than $6 billion in assets under management.

Our organization has continued to thrive, with our asset management business growing across all distribution channels by over $6 billion since we were established as McDonnell. We broadened our traditional investment grade fixed income management expertise in 2004 by forming the Alternative Credit Strategies Group ("ACS Group") with a team of professionals dedicated to providing below investment grade investment management to institutional investors, including expertise in managing bank loans and high yield securities. The ACS Group currently manages three collateralized loan obligation ("CLO") funds and a private investment fund which invests on a leveraged basis in a diverse portfolio of below-investment grade assets. In 2007, we were awarded our first assignment to manage a separate account portfolio of below investment grade bank loans for a state pension board. Below investment grade assets under management were approximately $3.1 billion as of June 30, 2008.

Our insurance asset management business has expanded meaningfully since 2005, as we continue to establish new investment advisory relationships with life & health, property & casualty, reinsurance and other types of insurance entities for customized investment management mandates. We recognize the unique business and investment needs of insurance companies and employ a comprehensive approach to managing insurance client portfolios, incorporating a detailed business review and sensitivity to actuarial and regulatory objectives. We have specialized compliance and reporting systems in place that are geared toward insurance companies.

Our goal in 2008 is to seek continued success across all business channels with the implementation of existing and potential new investment strategies, including a commingled International Fixed Income Fund, commingled Senior Secured Loan Fund and the creation of a Municipal Credit Sensitive/Focused strategy, in which we may structure a portfolio that includes a non-rated component. We recognize that the investment demands of our diverse client base are shifting in response to today's market environment - we stand poised to respond with client tailored investment solutions.