Roger Thompson: Yes. I think there’s a number of things in there list, so let me try and pick it up. And if I miss them, please follow up and Ali chip it as well. But yes, I think there’s a number of pieces in there. First is, we’ve always looked to run the business efficiency — efficiently, and we had another good hard look in Q4. And as we said, we had line of sight of $40 million to $45 million of savings. And we’re on track for those. And as I’ve just said, those savings probably ran a little bit ahead of the investments we’re making. And then where are you investing? Or where are you spending that money? And I put that into 3 categories. The first one — those 3 categories are sort of intentional, nonintentional, if you like, and accounting.
So the intentional stuff is the exciting things. That is where we believe we have real opportunity to grow to see those — to see flows for the future, to grow in some of those areas that Ali just talked about. That’s primarily — there are people pieces in there. We’re investing in new people. There is certainly marketing in there that is getting out and seeing clients. So our T&E will be higher, It will be lower than it was in ’19, but higher than it has been over the last 2 or 3 years. So we’re excited that we’ll be doing more conferences, more higher-quality conferences, things like that, where we’re seeing real interest in talking to our portfolio managers and our broader teams. So that’s the exciting piece. And then like you say, there were 2 other pieces.
One is the sort of unintentional. That’s inflation, which is real, particularly in some areas like technology, where you’ve got contractual contracts with inflationary uplifts in them. And FX as well, and some of that is sterling — sorry, the U.S. dollar has weakened a little bit relatively from its real strength, then that’s benefited our AUM and our revenue, but that will increase some of our sterling and euro costs in dollars. So that’s sort of an unintentional piece. And then like you said, that accounting piece, which is about 40% of the increase, that’s real, that’s unavoidable. It’s good. That’s again, is a very important piece of work that we’ve done over the last couple of years that will go live shortly. And so we’re excited by that, but we have to pay for it now through the P&L, so it’s being capitalized.
That unintentional piece in the accounting piece. Yes, they’re fixed, if you like. So then you’ve got to be even more careful. We really want to make those investments. We’re excited by those investments. So we’ll continue to look at how we can make sure we’re doing those right and how we can be more efficient in everything else that we’re doing.
Ali Dibadj: I just want to assure you that we’re not going to underinvest.
Elizabeth Miliatis: And then just a second question is just on performance fees. I mean, obviously, we’re hardly a month in. But are you able to sort of characterize how you think the business is placed on a performance fee perspective, whether it be around high watermarks or that sort of stuff just because the last couple of years, we’ve gone from some pretty sizable performance fees to — in FY ’22 negative? So getting a sense of where we might be tracking potentially in the next year would be helpful in terms of what your place.
