That’s been a sore point for the industry for some time. And in addition to the components of the existing platform, they are all the existing solutions we had, which — things like securities-based lending and other solutions to digital marketing that are — have strong demand as well. So it’s been nice to see the growth this quarter but really more importantly, to see how the pipeline is building over time.
Operator: The next question is from Peter Heckmann of D.A. Davidson.
Peter Heckmann : I just wanted to see if you had any additional thoughts on tailored shareholder reports and where Broadridge might see opportunity to offset some of the revenue loss related to notice and access.
Tim Gokey: Yes, Peter, thank you very much. And a very important topic. And as you know, in the tailored shareholder reports, we’ll really enable deeper engagement by investors and they’re going to drive digitization. And we think it’s something that is ultimately good for funds and makes Broadridge more valuable to its clients. And it is part of a long series of innovations that the industry has undertaken that have been really good for investors and good for the industry. Now as we have talked about, it does create challenges for ourselves with some — about $30 million of revenue that will go away and challenges for funds because the number of — basically the number of SKUs that they have since these reports need to be tailored by share class means the number of versions has dramatically increased.
And I think I talked last quarter about one fund, where it’s going from maybe just under 200 reports to over 1,000. So a real challenge for the industry. We are creating what we believe is a really unique industry solution that will significantly address the challenges that funds face. From a distribution standpoint, while 80% of this is digital, there is still — 20% of a line is — there’s still a fair bit of print out there. And we’re creating a unique print on demand solution that really eliminates the need to inventory, these literally tens of thousands of SKUs and create tens of millions in postal savings for funds by being able to combine mailings and print directly a client that’s receiving something print. Instead of 5 different envelopes, print 5 things right off, put them in an envelope in one shot.
And so that is a solution that really funds are seeing a lot of power in. And then this also creates a really important opposition — opportunity in composition. And composition has really been something that’s been largely performed by one of our competitors in the industry, hasn’t been an area that we have strongly competed in. But a couple of years ago, we bought a composition engine, and it is uniquely suited to help funds solve the problem of having many versions of the same document and of delivering data directly into composed documents, whether those are physically delivered or digitally delivered. And so by putting the composition engine together with the unique print on demand, it’s a really unique end-to-end solution that can really simplify this for our clients.
So we’re actively demoing that end-to-end solution to our clients. The reception has been very positive. And we think with that combination, we should be able to offset or more the revenue that we see.
Peter Heckmann : That’s helpful. Helpful insight. And then can you just remind us in terms of the — I think is it the retirement account trading business that generates the float? And remind us just some of the mechanics there and kind of what type of flow we’re talking about.
