Average assets under management also reached a record level of $72.6 billion in 2012, though the year-over-year gain was  1%. This reflects the pattern of market volatility throughout 2012, as the growth in our assets was not achieved in a steady,  upwards progression. Reflecting the change in average assets, revenues for the year were flat, at $1.5 billion. Net income was $352.2 million in  2012, down 7% from $376.9 million in the prior year. Earnings per share were down 5% to $1.24 from $1.31 in 2011. However,  there were two items that affected this comparison: CI received an insurance settlement of $3.5 million in 2011, and there  was an $18 million non-cash tax adjustment in 2012, resulting from an increase in future corporate income taxes imposed by  the Ontario government. Adjusting for those two items means that the decline in net income was less than 1%. In looking  at pre-tax operating earnings per share, which is designed to show CI’s underlying profitability before taxes and other  items, we see that this measure was $2.26 in 2012 and $2.28 in 2011 – again, a change of less than 1%. One of the themes in our industry in recent years has been the dominance of income funds in the sales charts as investors  have continued to shun equity funds since the severe bear market of 2008-09. Statistics provided by research fi rm Investor  Economics Inc. indicate that net sales of funds classifi ed as fixed-income and income balanced accounted for 137% of  industry net sales in 2012 (excluding money market funds).  CI is well represented in the income segment with a number of funds with good performance and sales. However, income  funds have lower management fees than balanced or equity funds. Our institutional products, which are becoming an  increasingly important part of our business, also have lower management fees than most retail funds. What this means for  our results is that funds with lower fees are becoming a larger part of our overall asset mix. CI has been able to offset this trend and maintain its profitability through the strict control of expenses. Selling, general  and administrative expenses expressed as percentage of average assets under management declined 3% to 39 basis points  in 2012 from 40 basis points in 2011. We are proud of this achievement by our staff, especially given that it occurred while  assets under management grew by 9% and we increased our expenditure in key areas of our operations, including portfolio  management and sales and marketing.  Free cash flow amounted to $423.9 million in 2012 and it was used to strengthen the financial position of the company  by paying down debt and to return cash to you, our shareholders, through share repurchases and dividends. A high level of effi ciency 6