Tim Gokey: Yes. Peter, thank you. And remember that when the industry moved to 30e-3, we got a sort of an uptick. We argued against it, but we got a sort of a $30 million uptick. And we had commented that when the — when the world moved away from 30e-3 that we would have a headwind of about $30 million in revenue. And what I’m really pleased about is as we look at the — now is the help our clients solve the issues that tailored shareholders, and I’ll come back to this in a second, the issues that it creates. I think we’re going to see that revenue more than replaced, which is very nice. The challenge that clients face with tailored shareholder reports, just to remind people what it is. It’s taking the 150-page or so annual and semiannual reports that people receive and it is saying, what are the key data points that are inside there that people really care about and creating a condensed, much more readable sort of 2- to 3-page summary that is much more digestible for investors.
So that’s good. The challenge it creates for our clients is that those reports, the new regulation has them the wires tailored. It has to be specific to the share class that, that client has. So in the past, you would have gotten a report and you have a table and you said, we’ll have to look up your share class and try to figure out for you what it means now has to be specific to you. That dramatically increases the number of SKUs. We talked in an earlier call about a fund we talked to you that had something like 120 to 150 different reports and now that’s going to be 1,200 different reports. That makes it very hard to print the reports in advance and inventory level. So the solution that we have is because we’ve invested in digitizing all of this and a digital database of all the latest regulatory reports, we can — for that percent of things that is print, which is — a lot of this is digital, it’s 80% digital, but there’s still a lot of print.
We can print that in line right in our facility and put multiple things in the same envelope significantly savings on creating significant savings on all the inventory but also all the postage and the envelopes and all of that. And so that ability to consolidate multiple reports into a single envelope all digitally in line, it creates a very significant savings for our clients over any other way of doing it. So we’re having a really — a high percent of funds are coming to us for that. And in fact, many funds that used to do this themselves on the registered side are also coming to us for that. So that’s the whole sort of output and mailing side of things. The other thing I’m really pleased, though, about is moving upstream into the composition side of things.
And historically, that work has been done by others, by Donnelley Financial and by Confluence. And one of the other unique things in the regulation is that the reports need to be tagged with XBRL and — which is great for digital delivery and extraction of data points. That can be a very laborious process. And the composition engine that we have is pretty unique in that it’s — first of all, it’s built in a way that makes it very easy to have many versions, same thing. And is also built with the XBRL tagging sort of natively embedded in it so that you don’t have to come back as a second process. So it’s a much better solution on the composition side. We’re a newer player there, but we’ve seen a lot of client interest and that’s really enabling us to move upstream to have a much deeper relationship with the asset managers.
Operator: And our next question comes from Patrick O’Shaughnessy from Raymond James.
Patrick O’Shaughnessy : So for GTO, in past quarters, I seem to recall you guys speaking to a 5% to 7% growth outlook for that business both in, I think, fiscal ’24 as well as the medium term. And today, I heard you speak to 5% to 8% growth. So I’m curious if anything has changed in terms of your outlook for that business? And then I think specific to this year, is faster or higher trading volumes may be a bigger contributor to growth than you had previously anticipated?
Edmund Reese: Patrick, thanks for that question. We did. I’ll emphasize that we did come out at an Investor Day and one of the big changes and an important change for us is moving our growth objectives, our 3-year growth objectives for organic growth from 5% to 7% to 5% to 8%. Now the strong growth that we expected in fiscal ’24 has a lot to do with that. But the investments that we’ve been making in the strength that we’ve been saying, Tim said earlier, our front office capital markets business and even the strength in wealth management, given the incremental sales that we have, we think that GTO will be a contributor there as well. Those are our objectives of 5% to 8% over the next 3 years. And I think you’re going to see each of the GTO businesses playing — performing right in line with that, both capital markets and wealth management here.
Patrick O’Shaughnessy : All right. And as you guys are to being able to modulate your investment spend due to higher event-driven revenue. Can you maybe give a little bit more detail on kind of the type of spending that represents? Are you bringing on more consultants? Are there other kind of very short-term expenditures that you’re able to ramp up?
Tim Gokey: Yes, Patrick, it’s a great question. It is one of the things that we’re very clear with all of our businesses on is that the investments we’re making are our onetime investment. So we have — we, as do many firms have a whole set of relationships with external providers for building technology consulting, other kinds of things. And so when we have the ability to incrementally invest, it is not adding associates that are going to be here for the long run, but it is really going deeper into projects that may be already underway and accelerating those, but leveraging largely third parties for things that are already in motion that we can accelerate.
Operator: And our next question comes from Brendan Miles from JP Morgan.
