Brennan Hawken: Excellent. That’s great. And not that I want to give Greg more work, but it definitely would be great to see like fee rate or like revenue by asset class along with the flow disclosure that might help to given — particularly given the dynamics at play for your business, just a recommendation. On — for my follow-up, you said that there was a big loss of a single account with GTR. Was the fee rate given that, that was a single large investor, was that fee rate sort of below the average for your alts business for the firm broadly just given the size?
Allison Dukes: Yes. Thanks Brennan. Okay. First, I’m going to point you to Page 9 because Greg did do the extra work, and we’ve got some of the fee rates disclosed from an AUM standpoint there to try to provide exactly that and give a little bit more color. And then on GTR, no, that fee rate, that capability was priced significantly above the firm average. And so that has been, as you think about some of the challenges and the remixing and some of what we are trying to draw out on Slide 9. GTR would have been one of the challenges we’ve been experiencing along with the pressure from developing markets and global equities. Those would have all had fee rates quite north of the firm average, consistent with what you would see in that fundamental equities fee rate range on Slide 9.
Brennan Hawken: Yes. Okay, great. And thanks for pointing out that on page — on Slide 9, of course, I just more meant in a way that we could actually embed within the financial models, right? So, we could have it in greater detail. Does Slide 9 tie to the AUM disclosures you guys have in your pressor?
Allison Dukes: Not exactly. And I think that’s part of the challenge, and we hear you on that one, and I know that is a desire you have expressed, and we will continue to work through our data in a way that we can make it as digestible as possible. Although I do think this gives you quite a bit of color as to what’s been going on over the last four years and a lot of the challenge in the results that we’ve experienced being increasingly captured.
Brennan Hawken: Sure. Of course. Sorry to be a pain in the butt. Thank you.
Allison Dukes: Not at all Brennan. Thank you.
Operator: Thank you. The next question comes from Michael Cyprys with Morgan Stanley. Your line is open.
Michael Cyprys: Great. Good morning. Thanks for taking the question. Just one on regulation, Basel III end game rules for the banks are slated to potentially raise capital requirements. Just curious how you see that trickling down to the asset management industry and your business whether it’s availability and cost to warehousing, you spoke derivatives, accessing leverage? Just what areas you think might be impacted from the new capital rules? And then can you speak to the opportunity set just in terms of where you guys might be a beneficiary where you might be able to press to innovate, to create new products to be able to take some share from the banking system?
Allison Dukes: Good morning. I’ll take that one. I’d say, honestly, the Basel III capital requirements have little to no impact on us at all. There’s very little that we do that has have any relationship to the areas that are impacted by Basel III. So, I would say, in terms of where might we have some opportunities, we could take advantage of. Certainly, we’re all seeing the opportunity to continue to think about capturing some private credit share as we continue to see that be a challenge for the banking system and a lot of that getting pushed out of the banking system. We’ve certainly already seen the impact of that over the last five years, and I expect that those trends will continue. I think it also creates opportunity on the real estate debt financing side, and I think consistent with Andrew’s prior comments and where we see some opportunities in our positioning our capabilities there to take advantage of that as well.
Andrew Schlossberg: I’d just add bank loans where we’ve been an innovator as well as different things on the liquidity side of the business. But I’d echo Allison’s comment it’s just not Basel has not been a focus of ours.
Michael Cyprys: Sure. I get it doesn’t apply to you, but just curious how you see that impacting the banks, which then may reprice or pull back capacity, which is to the question I was getting at. But maybe we’ll move on. Just a question here on efficiencies. That’s an area of focus for you guys in streamlining the organization. I was just hoping you might be able to speak to some of the potential from generative AI, how you guys are experimenting with that today? How do you see the opportunity set from that? How might be able to quantify the benefit there over time?
Andrew Schlossberg: Yes, it’s a great question. Early days, of course, data and organizing our data and making it strategic asset is one of our priorities and how we apply artificial intelligence and generative artificial intelligence to it is high on the order. We’re early days in experimenting with traditional applications that we think will and could lower costs and drive efficiency going forward. But also speed to market and friction that exists inside the client experience. So, things like marketing material and content legal and regulatory procedures and filings, onboarding of accounts, things like that, that are pretty operationally intensive at the moment. We haven’t started to experiment yet, but how we’d apply that on the investment side.
But on the sales side, we’re applying it internally with finding ways to get ourselves to products and get ourselves to attributes that we can express to clients rapidly. So, we’re going to continue to invest in the area, explore it and seek to make it a part of our efficiency going forward. But it’s a little too early to quantify.
Michael Cyprys: Great. Thank you.
Operator: Thank you. Our next question comes from Brian Bedell with Deutsche Bank. Your line is open.
Brian Bedell: Great. Thanks. Good morning folks. Thanks for taking my question. Maybe just back to Slide 9, maybe on the fundamental equities franchise. Obviously, given industry pressures, that’s — that shrunk as a proportion of your overall asset base, but it is the highest revenue yielding area. So, can you talk about maybe what types of investments you’re making in the overall fundamental equities franchise that might help the organic growth prospects of that? And then also maybe just to what extent are you viewing active ETFs as a potential vehicle enhancement for that platform?
