We’re committed to growing a dividend to then funding high-return internal investments, making high-value tuck-in M&A and then not letting capital build up on the balance sheet to return excess to shareholders. And so we’re really at an inflection point now with 2 things going on as we enter ’24. So first, we do expect to return to more historic free cash flow conversion. And second, as we exit ’23, we’re trending strongly towards our committed 2.5x leverage, which means a lot less need for debt paydown. So therefore, and when we get there, which we’re not there yet, but when we get there, we’ll have a lot more flexibility to return to our historic approach on capital allocation that really balances share buybacks and strategic tuck-in M&A.
And as I mentioned last quarter, we expect an outcome of all of that to drive increased ROIC to the mid- to high teens over the medium term. So we do think that this — we did want to make an emphasis on the cash flow point in this quarter because we do think we’re sort of turning a page here and moving to something that people will like going forward.
Darrin Peller : Okay. That’s really helpful. Just a quick follow-up. I mean, when — maybe preliminary, but any early thoughts on what UBS and Crédit Suisse coming together means for that business? And then actually, I did want to touch on position growth also. I mean, I think it accelerated a point when we look at equity position growth. When you think about what the normal rate of growth there is, I mean, it obviously has been strong for, like you said, a couple of years now. And so — just maybe reiterate, are we in the new norm now? Or what you think we can see over the next 12 months, assuming savings rates stay relatively — I guess, depending on what savings rates and unemployment levels do, et cetera?
Tim Gokey: Sure. Let me take the Crédit Suisse, UBS piece first. And to be clear, the transaction hasn’t closed, UBS has not completed its integration plan. So all of this is very preliminary. But if you look at the footprint of the 2 institutions and how it lines up versus us, first of all, on the wealth side, Crédit Suisse does not have a significant wealth business in the United States. There’s very little impact there. I will note that UBS has reaffirmed that continuing to grow U.S. wealth will be a strategic priority for UBS. And so in terms of the work that we’re doing with them on the wealth side, that will continue. And we’ve seen really no slowdown in their focus on that. The other side of things is the capital market side.
And as you may know, UBS is an important client for us on the capital market side in North America. Crédit Suisse is as not a client for us on that side. And so that’s an opportunity. UBS does plan what they’ve said certainly as a sort of speculation. What they said is that they will be reducing the size of that business in Crédit Suisse. But that said, whatever is left. And again, I don’t have any specific information on this, but it would be logical for them to try to consolidate infrastructure and to bring that on to the Broadridge infrastructure. So we think that will be a modest uptick for us. So as we look at that overall transaction, we’re seeing it as a modest uptick. Then on to position growth, it’s a bit of a two-fold question there, Darrin.
