Marty Flanagan: Yes, excuse me. I get off mute. I do want to follow-up just on this conversation on expenses. So there’s some longer term investments that Allison was talking about, which we’ve talked about some, and then the obvious elements around discretionary. But as a management team, we are absolutely focused on what we call, driving scale within the organization against capabilities that are in client demand. And we’re deeply into that process and we’re constantly doing it. And from that, you get the opportunity to make a decision to invest in a capability for a client, let’s say, or have it dropped at the bottom line. So that’s another element that we have been working on very, very diligently. And it’ll make us a better company, but at the same time, at some point the markets recover, you’ll get further operating leverage with, from the organization.
So, I think you should look at it as three different elements, and that’s nothing new. You’ve seen us do it, time and time again. And it’s a normal practice from us and again, it’ll just create better outcomes for sure, shareholders and clients.
Operator: Our last question is from Mike Brown with KBW. Sir, your line is open.
Mike Brown: Great. Hi, good morning. I wanted to ask you a couple follow-up questions on the real estate business. So, I believe the total real estate exposure for Invesco is around $92 billion and $75 billion or so is in the direct real estate side. So within direct real estate, how much is tied to the U.S. and then how much is tied to office and retail?
Allison Dukes: I would say in terms of how much is tied to the U.S., probably around two-thirds is probably roughly, I’d have to €“ we can follow up with you on specifics there, but I’d say roughly. We’ve been managing our exposure to office and retail quite a bit over the last couple of years, three years probably in particular. And really favoring asset classes like cold storage and industrial and medical office buildings and, some of the asset classes you would expect us to be in. So the story around retail has been known for quite a long time, probably five years or six years. Office has obviously been quite challenged since the advent of COVID and we’ve been managing those exposure. So those are not a real concern overall. And as I think about really where our acquisitions have been focused over the last two or three years, they’ve been in these areas of real high demand. Multifamily would be another example of an asset class we’ve been favoring.
Mike Brown: Okay, great. Thanks Allison. And then just specifically in terms of some of the line items here, how much does real estate contribute to performance fees? So of the $68 million, how much was from real estate, and then how much do real estate transaction fees contribute to other revenue?
Allison Dukes: So on the performance fees this quarter real estate was the majority of the performance fees. If I think about prior years, you would’ve seen more coming from IGW China overall than what we saw this year. So the two biggest drivers in any given year would be China and real estate, but in 2022 it was definitely coming more from real estate. In terms of other revenue, I would say it’s a €“ I’d have to come back to you on what portion of it is. I will say the increase in other revenue in the fourth quarter was driven largely by higher real estate transaction fees.
Mike Brown: Okay, great. Thanks for the color there.
Marty Flanagan: Okay. Well look thank you very much everybody appreciate the engagement, the questions and we’ll be chatting next quarter. So have a good rest of the day. Thank you.
Allison Dukes: Thank you.
Operator: Conference has concluded. Again, thank you for your participation. Please go ahead and disconnect at this time.
