And so we’ll keep an eye on where our peers are. We’ll keep an eye on what the business is doing, but we’ve got flexibility in other ways to manage that dynamic as well.
Operator: We can take our next question from Michael Brown with KBW.
Michael Brown : Good morning, everyone. So I guess I wanted to start on the custody and fund admin fees. They were essentially flat quarter-over-quarter, I guess, a little bit softer than we expected. What are some of the key drivers that played out this quarter. And as you noted, the lower market levels present a bit of a headwind here for the fourth quarter, but you did talk about some positive dynamics on the new business front. So what are the puts and takes that we should think about over the fourth quarter and then heading into next year?
Jason Tyler: Sure. So first of all, the — if you just look at the custody and fund admin line, and split it we talked about the fact that currency on a sequential basis was effectively a push year-over-year. It helped more than that roughly in the neighborhood of 1.5% to 2%. But if we just go back and look sequentially at how the quarter looked, the net new business was in Custody & Fund Admin Fees was a positive. It was low single digits, very low single digits, but positive. And then transaction volumes continue to be light. And we’re starting to talk about that dynamic as something that might be more long term, just as our clients move more toward more indexing as opposed to active management. There’s less trading activity, there’s less reporting.
There’s less transitions. And so we did — we’re continuing to see a lower level of transaction-related activity. But the overall business is strong, again, net positive from an overall net new business perspective. And the pipeline, as Mike mentioned, looks strong.
Michael Brown : Okay. And then if we just change gears to the deposit side, it sounds like the pressure there still remains. Could you just maybe unpack some of those underlying dynamics by client type and maybe just touch on where the pressure is perhaps the greatest and maybe where there’s a bit less of a challenge. And are you seeing some elements of the deposit base that are seeing stabilization here? Or is it really kind of across the board?
Jason Tyler: Definitely feel it’s stabilized in a lot of ways. It’s hard to predict where it’s going to go because obviously, it’s been a volatile cycle and clients are clearly trying to figure out what to do from here. There’s a lot of clients that are terming out their deposits. We saw in the wealth side, just to get at your question of how it’s separated by channel, the wealth side, we saw a significant increase in term deposits. So clients are saying this is an opportunity to move out of checking and into CDs. And a part of that is the nature of our clients where they have large amounts of deposits. And so they can take a component of their deposits and think about that more strategically and less about the need to maintain that liquidity just for day-to-day payments.
And then in the institute but — interestingly on the wealth side, deposits are actually up if you think — if you look 630 to 930, they’re up somewhat. And so it gives us an indication that the pricing actions we took were worked really well. Clients are — they continue to see the strength of the balance sheet. They like to deposit on Northern Trust’s balance sheet. So that increase was meaningful. On — in the institutional side, that’s what drove the period-to-period and most of the average decline — and that comes to a lot of clients is moving to different types of either longer duration or higher-yielding liquidity types. Overall, liquidity across the company was flat. Across the channels cumulatively. And so clients clearly are just saying Northern is the right place to be.
