So, it is a relevant business across the sorry, relevant opportunity across the industry. And again, I think we’ll continue to innovate, evolve and get better and better at it. I suspect we’ll have competition out in the marketplace because it’s a big problem to solve. But we think we’ve got a good head start and good infrastructure of which to leverage and scale on.
Bill Katz: Thanks for taking all the questions.
Operator: Thank you. And, one moment as we move on to our next question. And, our last question is going to come from the line of Benjamin Budish with Barclays. Your line is open. Please go ahead.
Benjamin Budish: Hi, good afternoon, and thanks for taking the question. I wanted to first maybe one more follow-up on cash levels, but maybe asking about the April update more holistically. So on cash, it sort of sounds like your comment about the variable piece moving with given the timing of advisor payments and taxes, perhaps the cash continues to decline in April, but you also sound quite optimistic on the recruiting pipeline. Any color you can give on in terms of what you’re seeing there in terms of net new assets in April? I know the month is almost at an end.
Matthew J. Audette: Yes, you bet. I mean, I think we’ve got one more day of data to see. But, the headline I’d give you on April is that, it’s shaping up to be a bit better than you would expect, especially given the seasonality that you hinted at in your question of what you see in April. So, starting first on client cash balances, the two seasonal factors that do hit April are first to your point taxes, right. Taxes get paid in April. That for us typically reduces cash by about $1.5 billion. And, then the second factor is advisory fees. Those primarily come out in the first month of the quarter, April obviously being the first month of Q2. That reduces cash by about $1.4 billion. So, those two seasonal factors together, all else equal would drive a decline of nearly $3 billion in cash sweep for the month.
But, to the point on stability outside of those factors, we actually have seen cash balances grow by over $1 billion. So, you net it all out and cash balances for the month of April are down just $1.5 billion, where we sit right now. And, then to your point on organic growth, we’re continuing to see the strength that we’ve talked about in Q1. Those same dynamics, taxes and advisory fees do hit NNA in the month of April. That would reduce NNA by about $3 billion or about 3%. But outside of that, when you factor in the recruiting levels that we’ve had that have, that ramped that’s come into April as well as we continue to see from a strength in the month of April. We’re seeing organic growth in the 5% to 6% zone, which as a reminder April is typically the slowest month of the year from a growth standpoint.
So, at 5% to 6% for that month, I think it’s a solid start to the quarter.
Benjamin Budish: Great. And, then maybe my follow-up. Just in terms of promotional expenses, I guess, two questions. One, can you unpack a little bit the Prudential related expenses? I guess, how much was in Q1? And, then for the step-up you indicated in Q2, how much are you expecting that’s PRU specific versus the increase on the TA side? And, then at a high level, can you kind of just walk us through what happens over the next like year or say with Prudential and Atria? For Prudential, I understand there are promo expenses coming off for Atria, presumably, there’s a separate M&A spend, but TA, which should be ramping up. So, how are you thinking about the growth in that line over the next, say, four quarters? Thank you.
Matthew J. Audette: Yes, you bet. I mean, I think when you look at specific to Q1 and PRU, we had about $17 million of promo related expense related to PRU in Q1. We’d actually expected in the low $20 million range. It’s a little bit why promotional came in a little bit better than we had guided. And, the reason why next quarter is up by about $10 million, it’s really a shifting of the timing of spend related to PRU. I think when you look at the overall year to your question on what’s going to drive promotional and I’ll get to the PRU specific pieces of that. But, I think there’s really three factors when you look at the full-year. And, the first in Q1 is organic growth, right. It’s through and specifically from recruiting that we talked a little about earlier in the call, primarily the level and amount of recruited AUM that comes onto the platform with Q1 at a record prior to large financial institutions.
The good momentum we have going into Q2, I think we feel like that will be a key driver of promotional expense going up this year for a very good reason, that it’s the recruited assets coming on the platform with TA rates really stable. The other item is our conference spend, right. So, that is really in-line with the size and scale of the firm our conferences are aware, we get together. We connect with our advisor there really important, really valuable, and we would scale that with the size of the firm. And then lastly, to the point in your question on Prudential, Atria really wouldn’t impact promotional this year, but Prudential would. And, just as a reminder for that deal overall, we estimate $325 million of spend to bring them on, $200 million of that is in technology spend that, Dan gave a little bit of color on earlier.
And, then the other $125 million is really onboarding integration cost. That’s what shows up in promotional. We’ve incurred a little over $40 million so far through the first quarter. So, the remaining $80 million to $85 million that will primarily come through in the remainder of this year. So, those are the drivers, and hopefully, that gives you a little bit of a double click on Prudential itself.
Benjamin Budish: Very helpful. Thank you.
Matthew J. Audette: You bet.
Operator: Thank you. And, I would now like to hand the conference back to Dan Arnold, for any closing remarks.
Dan H. Arnold: Yes. I just want to thank everyone for taking the time to join us this afternoon, and we look forward to speaking with you again next quarter. Thank you.
Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.
