Steven Finch: Well, I might just add a couple of other points, if I may. And I think Phil covered the question quite well, but if you think about higher rates, we have been in an environment of lower rates for more than a decade, which has been a headwind for our industry and, quite frankly, for us. And per our disclosures, we’ve shared that a 50 basis point increase in rates equates to a $1.6 billion PV of future earnings. So higher rates is certainly something which is a positive and a tailwind for us. In ’22, we saw rates up approximately about 150 points. And the run rate benefit to earnings of those higher rates are approximately $170 million per year. That’s pretax. And that doesn’t include other benefits such as margin improvements in our Group Benefits business or new business value improvements as well.
And on top of that, obviously, if rates stay higher at the tail end, then there are possibly URR benefits as well. So I would just sort of add that whilst ’22 was an environment with a lot of volatility, we have seen higher rates. We do expect that as central banks around the world continue to raise rates despite inflation that we are going to be in an environment of higher rates and we see that as a positive clearly.
Operator: The next question is from Tom MacKinnon from BMO Capital.
Tom MacKinnon : Just continuing on this seed capital AFS gains guide that you gave, Phil. It was over $100 million in the quarter and you expect kind of a run rate of $80 million to $100 million. Seed capital gains in AFS equity gains are largely driven by increases in the equity markets. The fourth quarter, the equity market was up 7% from September 30 to December 31. So I think you generally assume the market would be up about 2% each quarter. So why would the number not be like, 2/7 of that over $100 million? Why wouldn’t the guide be like significantly less than the $100 million going forward? And then I have a follow-up.
Phil Witherington: Thanks, Tom. So in a typical quarter, normal environment, we’d expect somewhere between $50 million and $100 million of aggregate seed capital and AFS equity gains. There’s clearly some discretion as to the timing of AFS equity gains. So it’s not entirely dependent upon what happens in any particular quarter. What happened in the fourth quarter, the aggregate gain was $110 million post tax. So I would say that’s in the order of $10 million above the sort of typical range that you could expect in any particular quarter, Tom.
Scott Hartz: Yes. It’s Scott. I might add to that. I think you’re right. So that math doesn’t work because of the AFS timing as well as in the seed capital, there are a bunch of bond funds and rates were up in the fourth quarter. So that did not create the gains you might have otherwise expect.
Tom MacKinnon : Okay. So the wild card seems to be the timing of the AFS gains. But — okay. Question with respect to the Global Wealth and Asset Management business. Even if I just look quarter-over-quarter, the assets were higher, but the core earnings were significantly less and the margins were significantly less. Now is there anything particular to the fourth quarter, like in terms of higher OpEx, any other kind of expenses that would deem to be one timers? How should we be looking at core earnings and margin potential for this business going forward? Because I think the fourth quarter GWAM disappointed in terms of margins and in terms of flows. But if you can give us any kind of guide as to how we should be thinking about this business going forward? And how — anything that was unique to the fourth quarter that drove that margin down?
