And we’ve also spent some time to realign the incentive structure. If you think about that structure, it’s a sales force heavy structure for us. We have people all over the country, delivering our products and supporting our client base and our adviser clients and their clients in a very active manner. And we’ve changed the incentive compensation there compensation, looking at market share, looking at what assets are stickier and delivering on those, activity levels. Again, it’s all going to be about having the metrics, measuring them and paying on that. That’s tied to our strategy. So all those changes on a very, very strong foundation make us feel quite comfortable. When you think about what we’ve seen successful from a product perspective, look, it’s our bread and butter, right?
It’s our bread and butter. U.S. equities platform to begin with, whether it be the U.S. Mid-Cap range or SMID Cap Growth or overseas or Core Plus or multi-sector global life sciences and go down the list. These are all names you know. These are all names others now. Then we have more things beyond just protecting and growing those businesses, whether it be the biotech hedge fund, whether it be property. We think there is a future for diversified alternatives in the U.S. as well. From a product perspective, we have a gamut of things to deliver, especially again in our core business in the U.S. equities. But I would note that it’s not just about the product, right? It’s about the form factor, what’s digestible by the client and our clients’ clients.
Think about JAAA, which is a pretty good success, I would argue, AAA CLO ETF, where we’ve done quite well. We’re on the league table is relatively high. It’s about delivering things in SMAs and CITs for the right spaces and the right clients. It really is a little bit of earlier question, a dynamic marketplace, and we think with what we have as a foundation and the changes that we’re making, we’re going to be over the time, again, not tomorrow, but over time, well positioned to continue to deliver and gain market share in this competitive market.
Alex Blostein: A quick one, Roger, for you, on the expense guide and particularly the comp rate guide. Sorry if I missed it, but are you assuming sort of year-to-date market performance, or what kind of beta assumptions do you guys have baked into the comp rate?
Roger Thompson: That’s all — that is also at year-end markets. So obviously, markets pleasingly have started the year well, but what I’ve given you in terms of guidance is based off 3112 market levels.
Operator: The next question comes from Elizabeth Miliatis from Jarden. Please go ahead, Elizabeth, your line is open.
Elizabeth Miliatis: The first one is just on the noncompensation growth rate. You said mid- to high single digits. Obviously, you also mentioned that a big chunk of that is in relation to some amortization step-up. If it is a challenging market and you do pull back on spend again in ’23 and all concerned that you’re sort of underinvesting in the near term? Or do you feel that the cost efficiencies that you’ll generate will sort of really help you invest in the business near term, despite whatever is going on in the market?
