So we continue to invest in our solution and our model to ensure that we create a differentiated solution that will help us be positioned to win and capitalize on whether it be market share opportunity that’s created by consolidation or just ongoing demand for that type of solution. And I think as we try to position ourselves as a more vertically integrated strategic partner that creates more value for the adviser, we think that positions us well to participate and win an outsized share of market as we move forward in this space.
Devin Ryan: All right, thanks Dan. Follow-up here just for Matt. Thinking about kind of the ICA yield glide path maybe beyond 4Q, so you have $6.5 billion of contracts maturing next year. We’re just modeling kind of – those kind of rolling off ratably. But is there any sense of, as we get closer there, just more color on the cadence, what that could look like. And then as we think about also the base rate on ICA and even on the floating book today, how much improvement are you seeing? It seems like, and we’re hearing that there’s more demand in the bank system. And so just kind of what the uplift might look like there? Thank you.
Matt Audette: Yes, Devin. On the fixed rate side, I think the – of that $6.5 billion, about $0.5 billion rolls off in the first quarter and then the rest of it is evenly throughout the year. So about $2 billion a quarter. And I think our plans would be to reinvest that in new fixed rate contracts, the same way we have been in that three- to five-year zone. And I think when you look at the rates in that environment the demand here is just as strong as it is on the floating rate side. So, to your point on kind of spreads above the base rate, so if you look at where the curve is for a three- to five-year money at this point, you’re in the 450 to 470 range, but we’re starting to see with the demand for deposit spreads on the fixed rate side as well.
So you can think maybe more closer to or up to 500 basis points for those contracts when they’re rolling off on average at 250. So rounding up, I’d say, an opportunity to kind of double the earnings on those balances as they mature. On the floating rate side, I think, we’ve seen spreads in the 15 to 30 basis point range, which I’d say is historically high. But we’ve probably seen that for the last couple of quarters. So you’re starting to see that flow through on the floating rate side. But a broad point, you can just see in the pricing, if you are a supplier of deposits, the demand is there and the pricing is quite good.
Devin Ryan: Yes, got it. Okay, I leave it there. Thanks guys.
Operator: And one moment for our next question. And our next question will come from Ben Budish of Barclays. Your line is open.
Ben Budish: Hi, good afternoon. And thanks for the taking the question. I wanted to follow-up on some of the commentary on Ameritrade. We’ve seen some kind of media press indicating that there may be a pickup in sort of outbound to alternative custodians and other kind of services providers. I am not sure if that’s something you can comment on, but would great if you could. But even if not, maybe another sort of question along the same lines is if that were the case and you were seeing a pickup post Labor Day, how long does it typically take for an adviser who is showing interest to convert if you’re successful there?
Dan Arnold: Yes. So for us, I think I’d answer that more broadly that we see all registered advisers as an opportunity to potentially affiliate with one of our models, and we obviously invest in a significant business development team that’s out in the marketplace, exploring those opportunities. I think we continue to create real structural value that creates demand and appeal across our model, it’s first and foremost, the opportunity. But if you’re doing that well, and you have the efficacy of a good business development team you will then when market opportunities may arise in the short run, and we challenge ourselves to be agile and nimble to be able to capitalize on those regardless of what they may be and when they may occur.
And so that’s the combination that we think about how we go to market, right? You create good structural differentiation and value, you have a great team that can go tell that story and then you’re agile and nimble when opportunities come up that may be created for whatever reason. So look, when there’s transitions that occur in the marketplace, just in general back to your other question, there’s generally opportunity that may occur around the transition of assets from one custodian to another or one broker-dealer from another. And depending on the complexity that may occur in that transition, typically, then there’s some opportunity that may arise post that, whether that be because of new environment, service challenges, new technology, whatever the case may be change management challenges that may occur, that may create some unrest.
And that may create some opportunity. And again, I think we try to be well positioned and well prepared to capitalize pre-conversions, post-conversions when those may occur and where that opportunity may occur. I hope that helps.
Ben Budish: Yes, understood. Maybe one just quick follow-up just on corporate cash for the last few quarters been running ahead of your target level. Just to what degree is that maybe conservatism or just a matter of timing for the end for the quarter? Or is that more intentional? Any color you could share there would be helpful. Thank you.
Matt Audette: Yes, you bet. Short answer is timing, right? I think when you look at our overall liquidity it’s more about managing our overall leverage ratio. I think the corporate cash balances end up being a little bit of timing, simple as that.
Ben Budish: All right, appreciate it. Thanks so much.
Matt Audette: Welcome.
Operator: [Operator Instructions] Our next question will be coming from Dan Fannon of Jefferies. Dan your line is open.
Dan Fannon: Thanks. I wanted to follow-up on NNA and the outlook. And just what the backlog looks like today maybe versus last quarter or a year ago, and we’ve heard about more industry churn or churn for advisers picking up. And would you echo that? And what does that mean for potential acceleration in terms of that adviser adds over the next kind of six, twelve months?
Dan Arnold: Yes. So look, I think the headline, as we said earlier, from a recruiting standpoint is we continue to see that as a solid lever and driver of growth or contributor to growth both in the short run and longer term. So if I just put a little color on that for you, when we look out at the environment explore how we position ourselves to win we typically start with the opportunity set where you went to advisor movement. I would actually reflect it as more flat over the last year, it’s somewhere around 5.5% movement or turnover. We haven’t seen a big move up from that, but it’s more sustained and we call it that range down for now. What has happened is there has been a bit of a mix shift in some of the movement or turnover where we’ve seen the movement amongst the independent market picked up where some of the movement has slowed down from the wires as an example.
