So you’ll have some fluctuation in trends as the economy moves as interest rates move, but the basic trend is toward higher allocations. And we don’t see that stopping and we think it’s a multiyear trend.
Operator: Thank you. Our next question comes from Nigel D’Souza with Veritas. Your line is open.
Nigel D’Souza: Thank you. Good morning, I wanted to go back to SLC Management. And when I look at the revenue line item, that’s up material a quarter-over-quarter looks like that’s related to question carried interest. And there’s a corresponding increase in expenses. Just wondering was there anything that particularly drove a bit more lumpiness this quarter for that item, because there’s a bigger divergence between total revenue and fee related revenue and how we should think about that going forward.
Kevin Strain: Thanks for the question. The way I would I really think given our disclosures now, which I think we improve last year and expanded, really, if you want to look at the core trends in the business, I think you should look at management fees. I know in the supplement, it’s the revenues are on page 87 thing in the supplement and management if you just like isolate management fee revenue for the quarter, it was 234 million up from 204 million last year, and for the full year was 862 million up from 755 or about 14% increase. And those are core management fees for managing assets under management and those revenues are up because AUM is up. If you look at in core earnings measure that we look at it and also you look at across the industry as fee related earnings.
And fee related earnings for the quarter were 73 million, and that was up 22% from the fourth quarter of last year. And for the full year, fee related earnings were up 20%. So that’s really I think the way to look at the core business. In terms of performance fees, we don’t have a lot of performance fees yet coming through those actually, I think are recorded below underlying income and the reported net income over the coming years, you will start to see I think more performance fees impact results.
Nigel D’Souza: That’s helpful. There’s like IFRS 17, I believe, Manjit mentioned that the impact was on investment activity gains running lower and the benefit of the spreads being recognized over a longer period of time. Just wondering if you could expand on that. What’s the spread benefit you recognize over the duration of that underlying asset and reduce size, the expected decrease in the run rate of investment activity? Would it be 20%, 30% 40% lower IFRS 17?
Manjit Singh: So Nigel, it’s Manjit. So yes, so under IFRS 4 when we trade up in our investment portfolio, that excess spread, as you know is present valued into our earnings under IFRS 4 you get the same excess spread. So economically and from an earnings standpoint, over time, the benefits will be the same, but that spread now instead of being present value into earnings in the quarter that you undertake the activity will come in over time over the duration of the assets. So that would be really a function of the duration of the assets that we traded up into.
Nigel D’Souza: Okay, so no sizing there. But just to circle up on guidance out earlier. I think you mentioned previously, that you expect underlying net income of IFRS 17 2023 to be higher than underlying income and Iris IFRS 4 2022. Is that still the guidance that you expect for this year?
