David Brown: Yes, good morning. A great question and very timely. You know, so just to expand on what we said in the prepared remarks, we have 16 products under the USAA franchise. 15 of them I think are four or five star, which is about, it’s really remarkable that we have this franchise with this excellent investment performance. We offer these products in ETF, a mutual fund, and also separate accounts. And we have intermediate, an intermediate term bond fund, a short-term bond fund, government securities fund and income fund, and then intermediate tax exempt. So we really do cover a lot of real estate from the fixed income and investors’ perspective. Since the acquisition, we’ve spent a lot of time building out the distribution on the retail and intermediary side and also on the institutional side.
We’re starting to make some progress and we think as investors come back into fixed income, we hope that as we progress through the year and the Fed, what the Fed is going to do becomes much more clear, we think we’re really well positioned with the investment performance. And then also this is a franchise that manages about $25 billion in assets, so it’s a sizeable franchise that is deep in resources and has been doing this quite a long period of time.
Kenneth Lee: Great, very helpful there. And then perhaps on a more broader level, as you look out further this year, which strategies or areas do you see as key growth opportunities in terms of net flows, potentially? Thanks.
David Brown: So yeah, I’d start off not in any priority order, but I’d start off with WestEnd. You know, WestEnd Advisors was net flow positive in 2022 when a lot of their competitors weren’t. They’ve got really solid investment performance. We like the model space. We have excellent distribution there, and it’s expanding, so we’re really excited about that opportunity. Mike mentioned our ETF platform Victory Shares, the consistency of flows there has been really impressive, and we’re seeing that moving into 2023 and we don’t see that changing, so we’re excited about that part of our business.
Trivalent, those: And then lastly, we also with our New Energy Capital acquisition we expect that to make progress as well and that’s around private funds, and we’re excited about that opportunity.
Kenneth Lee: Great. Very helpful there. Thanks again.
Operator: Our next question comes from Mike Brown with KBW.
Michael Brown: Great. Good morning guys. How are you?
David Brown: Good.
Michael Policarpo: Good.
Michael Brown: So, you know, I guess I wanted to just maybe start on the fee rate here. It’s remained relatively stable here and you’ve had a lot of kind of mix shift in your AUM here with the kind of some of the recent acquisitions. As we think about the fee rate here as you think about your growth profile for 2023?
David Brown: Good morning, Mike. Yes, I think as you mentioned, our fee rate has remained very stable. And I think as we look out in some of the areas that Dave just highlighted, we would expect that the fee rate will continue to be driven by both beta impact as well as asset mix, channel mix, product mix. As we think about opportunities for expansion of fee rate, we’ve talked a little bit about the fulcrum fees we have on some of our products that gives some upside. Those fulcrum fees were positive in the fourth quarter, about 0.1 basis points, and there is opportunity for upside on that. But as we think about the guidance going forward, I would say we’ll be in the 52 basis point range. That will vary as we see changes in different products that have organic growth going forward.
