Patrick Davitt: Hi, good morning everyone. So, my first question is on the Hermes impairment, could you give a little bit more detail on the changes that went into the cash flow downgrades? Are there some products that are not working out as planned? And I guess more broadly on that point, has your view on the opportunity for growth there changed in some way?
Chris Donahue: Yes, Patrick from Autonomous. The cash flows, we have to go through, I think there’s six different categories when we did the deal, and this is one category, the public markets. And since the deal, if you look at it from a €“ since 2018, the assets and particularly more recently, the asset declines, and then we have to go through and look at forecasts and predicting the future. We just had to scale those back and then the discount rates of course rates have gone up since we did the deal. And so, when you, kind of take the whole picture on a long-term basis, we had to have an impairment just on an accounting basis, pretty simple.
Tom Donahue: In terms of excitement with what’s going on, with Hermes, I think number of things that Chris mentioned in our pipeline are pretty exciting. And I think Saker out to give a comment on exciting things that we still see happening there.
Saker Nusseibeh: Thank you very much, Tom. So, I mean, let’s start just with some of the stuff that you heard from Chris. If you remember, he said that $4.8 billion of net are yet to fund, but these are signed and yet to fund. And the majority of these actually are coming into Federal Reserve and is limited, which is in London. With old Hermes business. And that gives you an idea of the strength of growth. And of that, for example, if you talk about the equity strategies well over a billion, 1.3 billion is in Asia ex-Japan. Then you’ve got further going into global emerging markets, another going into global equities and then some more into fixed income and you look around 290 million, add to which you can add private equity, which is over 1.3 billion and you have a very exciting picture based on the future positivity that we see.
I mean, yes, one , but it tells you the strength that’s here we’re looking forward. Now why is that? Two reasons. One is, yes, of course, since 2018, from an accounting perspective, we’ve got to look at the fact that markets went down, there was COVID and there was the Ukraine war and we have a lot of growth assets or growth equities in our public markets, but actually, they are much in demand. We’ve seen that even through the last years, and it looks as if this is going to continue to grow for us. The proof of the is within public markets is, we’re continuing to invest particularly in sales. We’re looking at offices in other parts of Continental Europe than the ones we’ve got. We’ve talked about offices there, at least one that’s going to be established to see that possibly too.
And that means that we increase our capability to distribute within the mentioned European markets. And then if you go to private equities, which is where we €“ sorry, I beg your pardon, with private markets, there’s private equity, which includes private debt. That has been very exciting with lots of flows through over the last year. Strength seeing this year with a lot of interest from our clients, an excellent environment for our, kind of strategy. To get our private equity again, we’re seeing lots of excitement from our clients. So, that’s good and of course, our property is a long-term play, which continues to travel on. And for that, we’re investing in €“ I mean for private markets as a whole, we’re investing into a dedicated sales force work alongside our to help increase that.
