Dennis McGonigle: I’ll just add to that. We’re operating under a longer-term view that there’s going to continue to be price compression and that the pricing environment in the asset management in particular is — that pressure is not — isn’t changing. It’s only going to continue which is why we’re so focused on technology build, operational efficiency and scale, client delivery, broadening out our market segments for growth. So it’s — I don’t know that we’ve seen price increases in the competitive set, it would possibly be a good thing in certain areas if that occurred. But we’re operating under that this is going to be a more price-competitive environment and making sure that from a delivery standpoint, we’re as effective and efficient and scalable as possible. And that’s something our clients really appreciate both within the advisor channel and the banking channel. I mean many of Sanjay’s clients, every one of them is dealing with the same market issue.
Operator: [Operator Instructions] Next, we’ll hear from Ryan Kenny with Morgan Stanley.
Ryan Kenny: Dennis, congratulations on 90-plus quarters.
Dennis McGonigle: I survived, right? I am a survivor.
Ryan Kenny: You have been very helpful. So thank you so much for everything throughout the years. I have a question on net new sales. So when I look at the 3 bullets, you have $24.5 million from private banks and IMS, it’s pretty strong. You have $2.5 million from the newer initiatives and then there’s the drag of negative $5.7 million from the Asset Management-related businesses. And when you look over the last few quarters, that drag has persisted for a while. So how should investors think about how much of a drag there is going forward. If you could give an update on where your current [indiscernible] defined benefit plans stands? And how much headwinds should we expect going forward on there?
Ryan Hicke: Yes, Ryan. It’s Ryan. Hope you’re doing well. I’ll start and then Jay is in the room and Paul can add. So let’s start with the first of the 3. So if you look at IMS bills in the room as well. That’s another exceptional quarter of sales, as I mentioned. When you think about the breadth of our capabilities set there, the overall market trends around the appetite and the embracing of outsourcing and our ability to continue to invest and deliver differentiation through technology and operational solutions and our people, we feel good on the traditional side of the alternative side and the emerging in the global side to continue to drive net new sales numbers. We already touched on what Sanjay and the team are doing. So first of all, we feel good.
We look at the total addressable markets. We’ll continue to be nimble. We’ll allocate resource where needed and we’ll continue to expand our footprint in areas there. We made a concerted effort, as you know, last summer to bring in an executive from the outside and look at our new business initiatives and investments in new business in different ways. I talked about a little bit of that earlier with what we’re doing with TIFIN and SEIsmic but when you see family office services and sphere and private wealth management, we know when we think about the company 5 to 7 years out, we want additional growth engines beyond what we have today and we’re starting to really lay some railroad tracks to make some investments there. We feel good about that.
And then when you get to the AUM-based businesses, I honestly think it’s a tale of 2 cities right now. You just have an overall market and macro shift in terms of product types, whether that is a move from mutual funds to ETFs or lower-cost products and I think a continued move overall, especially in developed markets from active portfolio management to passive portfolio management driven partially by price. So in some ways, we’re a victim of success that we’ve had over many years but I believe that we have been extremely thoughtful and aggressive in figuring out how do we continue to invest not just in differentiated investment management solutions but as Dennis mentioned, technology and operational platforms that will really allow us to deliver value to a broader set of intermediary and institutional clients in the future.
So really long-winded answer to say, how should you think about it? I think it will continue to be a little bit choppy but we’re looking really at how are we increasing client adoption. Paul’s point around larger conversions, expanding into different segments and really continuing to rethink what our asset management offering is both proprietary and third party to drive value. So it’s there, you’re on it, we’re on it. And Jay, if you want to provide a little commentary maybe underneath institutional around DB and different segments there. And I can always come back, Ryan and unpack anything I said.
Unidentified Company Representative: Sure. Thanks, Ryan. Certainly, planned corporate defined benefit plans, making the decision to annuitize. We’ve touched on this in the past. It continues to be a reality in the corporate DB space. Certainly in the rate environment that we’ve experienced over the last couple of years. It’s encouraging to see a few reports out there that the pace of annuitization has slowed over the last 6 months and also talking to some of our clients who may experience a funding status over 100%. Some are utilizing that cash to fund other opportunities instead of moving towards annuitization. What I’m most encouraged about those as I look across the new business activity that we did close in the first quarter of this year, the new names we brought in span U.S. corporate defined benefit U.S. endowments, U.K. master trust business, know this business.
So we continue to see activity across all of those sectors and the new names as we work through some of those planned annuitizations that we’ve talked about now for a bit.
