Dan Houston: Yes, so thanks for calling that out, John, really appreciate that. We’re excited about expanding our relationship with China Construction Bank. As you know, we’ve had a 17-year relationship with China Construction Bank, including asset management and retail funds, so adding retirement and all four pillars by the way of the China retirement scheme is included as part of that JV. As I said in the earlier comments, the transaction will be accretive and we look forward to deploying resources against that opportunity, and again, establishing Principal’s positioning as being a global retirement player along with asset management. So thanks for the question.
John Barnidge: Thanks for the answers.
Operator: Our next question comes from Jimmy Bhullar with J.P. Morgan. Please proceed with your question.
Jimmy Bhullar: Hey, good morning. So first just had a question on flows in the asset management business. If you can talk about to what extent are they being affected by the overall environment that the asset managers are facing versus maybe your performance getting a little worse over the past year? And then I had a question similarly on your outlook for flows in the retirement business obviously this quarter feed retirement flows were pressured because of the lapse of a large case, but what’s the €“ what’s your outlook in terms of deferral rates, matching contributions and just flows in that business in the current environment?
Dan Houston: Well, that’s a great question. I appreciate that, Jimmy, and I’ll have both Pat and Chris respond. But before I do that, just maybe at a high level, I think what’s interesting is the way we report, and again, that’s on us on how we do this. But it reflects the Morningstar retail funds of which that’s a minority share of our overall asset management capabilities. And we actually have very strong performance in particular around the fixed income, which as you knowas in very high demand and Pat will cover a lot of that. And then secondly, just to note that, it’s €“ some of the most sophisticated investors out there are actually buying third quartile performance, because they have confidence in the manager and the strategies themselves.
And we have a very positive outlook on what’s in the pipeline today and some commitments that have been made. So I know the correlation between investment performance must yield net cash flow, but I think there are instances of where you find a growth strategies like ours maybe a bit out of favor and therefore the commitments come in, in spite of not having one-year performance. But a reminder, our long-term performance remains very strong. With that, I’ll turn it over to Pat.
Pat Halter: Yes. Jimmy, maybe just to start off with sort of the fourth quarter. Fourth quarter always is challenging, typically, that’s a very challenging seasonal quarter. But it was even more challenging because of the investor sentiment that we experienced in the fourth quarter. It was a sentiment of basically being risk off and positioning their portfolios with a waiting of concern. Concern about the fed, concern about the path of inflation, nervousness around the economic growth and related company earnings. So this risk off sort of impact was amplified, particularly in the mutual fund investor base in addition to being sort of focused on accelerating their holdings for tax management reasons, which offset some of the capital gains in this period.
