Jim Cracchiolo: Yes. So Suneet, I think that’s really the larger question, right. And that depends on how people feel about the market and where rates are going forward, right. So, I think if you saw the market over the last number of quarters that – it increased tremendously with a lot of volatility and people were concerned, right. A few stocks drove that up. Now, you see a pullback occurring, right. So, I think if the market starts to feel like it’s on a better, more solid footing, I think people will start to deploy back. I also think that as rates, if they stabilize on the long-term up where they are rather than continue to rise, you will see money move from the short to the long-term to lock it in, right, and get that appreciation and the spread.
So, I don’t have a crystal ball. But I think we are holding extra cash for the reason that we feel a little bit regarding the environment and where the markets are. But that will go back. People don’t hold that amount of cash at that percentage that we are seeing right now. And I think that’s across the industry, not just in our channel. So – but it’s good. It stays with us right now. And when it’s ready to deploy, our advisors will definitely do it. They look – we are investing for the long-term, not just to take advantage of the market in the short-term.
Suneet Kamath: And can you just provide some timing on when you are planning on rolling out some of those other banking products that you mentioned in response to an earlier question?
Jim Cracchiolo: Yes. We are looking to do that over the course of the New Year. So, we are looking to phase that in. And right now, we are just looking at the climate and looking at the operating activities for that. So, we feel good about getting things up and running in the bank in more of a full-fledged fashion. So, it will be periodic. We will alert you to it as we go about.
Suneet Kamath: It makes sense. And then maybe just if I could sneak one more in on expenses for Walter. So, I think you said flat in 2024 relative to ‘23. When you think about the segment level, should we assume a little bit of a decline in asset management offset by some growth in Advice & Wealth Management just in terms of the moving pieces there?
Walter Berman: Yes, I think that’s a reasonable assumption. And obviously, we are focusing on CTI and looking at to preserve margin and certainly continue to take advantage of the growth opportunities in AWM, but still prudently managing the expenses.
Jim Cracchiolo: Yes. And Suneet, I mean across the firm, we are going to look for that to be pretty – managed pretty tightly, okay. So, I mean I don’t have a firm number at this point in time. But as I have said, I feel good to start with about G&A flat.
Suneet Kamath: Got it. Okay. Thank you.
Operator: And the next question is from Tom Gallagher with Evercore. Your line is open.
Tom Gallagher: Good morning. First question, just a follow-up on the $32 billion of third-party client cash. Do you currently earn any fee on that money at all from an administration perspective or would that all be revenue upside if that gets deployed into your wrap account?
Walter Berman: Current math say, it’s marginal, I would say it’s bigger around 4 basis points or 5 basis points, but it’s the real opportunity of redeployment that will provide us certainly margin and profitability potential.
Tom Gallagher: Got it. The – let’s see, the other question I had was on variable annuity reserve charge. I know when some other companies have taken reserve strengthenings under the new accounting that there has been an ongoing earnings drag in addition to the reserve charge, anything like that to consider for the variable annuity charge. Walter, I think I heard you say the $200 million a quarter was still intact on guide. So, I would presume that means probably not much, but just curious if there is any impact there.
Walter Berman: You are correct. It’s probably not much. And the answer is no, really.
Tom Gallagher: And anything – okay. Thanks. And then any – should there be a similar 4Q charge on a statutory basis for the same assumption changes, or is that still TBD?
Walter Berman: I think that’s still TBD.
Tom Gallagher: And then if I could sneak in a final one. Long-term care, I saw your updated disclosures, which I thought was helpful. I guess considering that this block continues to shrink, it looks like the risk is well managed, is risk transfer still a consideration here, or is the bid-ask spread still too wide, or should we really think about you most likely continuing to own it considering the risk continues to shrink?
Walter Berman: So, okay, over the years, we certainly have been able to demonstrate that we are managing the risk very effectively. So, any risk transfer would have to consider that and really have a very balance of bid-ask and because the portfolio is performing quite well, and as it’s indicated in the observations that you made about it. So, yes, we feel very comfortable in retaining it. But if somebody comes along with something that is certainly the best interest shareholder was considered.
Jim Cracchiolo: Over the last number of years, it’s performed better than we expected in many instances and improved in that sense. And we haven’t factored in some of the other things that has affected pre-COVID as a positive yet.
Tom Gallagher: Thanks.
Operator: The next question is from Brennan Hawken with UBS. Your line is open.
Brennan Hawken: Hi. Good morning. Thanks for taking my questions. Thanks for all the color on the cash dynamics here intra-quarter and quarter-to-date and it certainly sounds encouraging. I guess does that mean that we could get back to a period where we are looking at how to grow the sweep balances and it just becomes a function of net new assets, or is that sort of more organic growth trajectory still hindered by balance remixing? And when do you think we could get to that period? Thanks.
