Broadridge Financial Solutions, Inc. (BR) Earnings Call Transcript & Summary

Good morning. All right. I'm Edings Thibault, Head of Investor Relations here at Broadridge, and it is fantastic to see so many familiar faces in the crowd. It's really great to see so many of our investors in one place. And it's -- I know they're 100 or so more on the line. So it's great to see everyone here physically and virtually. And so welcome to the Broadridge 2023 Investor Day. Before we get started, I do have a few housekeeping items to remind everybody. First, today's presentation is being recorded and webcast. [Operator Instructions] Second point is, of course, we'll be making forward-looking statements today regarding Broadridge that involve risks. A summary of these risks can be found on the slides you see in front of you and on our website with, of course, a more complete description on our annual report on Form 10-K also available on our website. Three, we will also be referring to several non-GAAP measures, which we believe provide all of you with a more complete understanding of Broadridge's underlying operating results and an explanation of these non-GAAP measures and reconciliations to their comparable GAAP measures can also be found at the end of the presentation slides. To fourth, let's turn to the exciting part of the day. We couldn't be more pleased to share our excitement about Broadridge and the opportunities we see in front of us. As you can see from the agenda, we have a great morning planned with a full slate of presentations for Broadridge's leaders. A couple of administrative notes here. We will be taking 2 10-minute breaks this morning, first after the governance session and second, after technology. And then finally, we are going to do a Q&A session at the end of the day, so please hold any of your questions until that time. So now let's get started. We're going to open with a short video, and then we'll hear from Broadridge's, Chief Executive Officer, Tim Gokey. [Presentation]

All right. It is great to see you in person here today. Thanks all to the people that are joining us online. I hope you saw from that video, how excited we are about our ability to power and transform our clients' businesses, also about the talented and deeply knowledgeable associates that make that happen. And those were not actors. Those were real Broadridge associates. I wish you could meet all 15,000. Because of that, we are also really confident and pleased about how we can continue to drive value for all of you, our shareholders. I'm Tim Gokey, CEO of Broadridge. This is my fifth Investor Day. That includes two, as Chief Operating Officer and now 2 as CEO. And it has been a privilege and an honor to be part of and to lead our growth journey over that time. But whether you've been part of Broadridge for 10 years or 10 days, we're really pleased to be here to talk about how we're going to continue that growth journey by growing our governance, capital markets and wealth businesses. And my objective is that after today, you'll be as confident as we are that the next 10 years will be just as exciting and productive as the last 10. Now our theme today is powering and transforming financial markets, and that reflects the critical role that we play today, but also the opportunity that we see for tomorrow. We help our clients and our industry to operate, innovate and grow by providing the critical infrastructure that powers governance, capital markets and wealth and investment management. We deliver for our clients every day. And because of that, it gives us a unique insight that helps them change for tomorrow. And that work, as we've evolved our business over the last decade, has positioned us to continue to drive long-term growth. To show how I'm going to provide an overview of our business and the strong position we have in an attractive and growing market, and how that has translated into consistent top and bottom line growth. Then I'm going to talk about how we take that forward and continue to grow our capital markets, wealth governance franchises. And finally, I'll talk about how we translate all of that into top quartile shareholder returns, including a few thoughts on capital allocation. Now all this begins with our unique network and our SaaS business model. We have been called ubiquitous. And as Mike and Doug will outline in a little while, we serve nearly every broker-dealer in North America, and because of that, we end up with a service relationship with every public company, every asset manager, every fund, every individual investor, every institutional investor. And we serve them on a 24/7, 365 SaaS platform that receives and reconciles investor positions that tracks clients' preferences that sends and receives digital and physical communications and that provides consolidated industry-wide billing. And through all of that, we end up knowing almost every position of every investor in North America. Now this is our clients' data, but holding it on their behalf gives us a trusted position. And we've built on that trust over time by extending the services we offer to each node of that network to help them grow their businesses with more modern technology at lower cost. Today, we're a global fintech leader with a scale business at the intersection of wealth managers, capital markets firms, corporate issuers and asset managers. And we play a critical role in supporting their operations, technology, governance and communications. We ensure that investors get the critical information they need to vote their shares and understand the risks and potential returns across nearly 800 million individual equity positions. We process more than $7 billion regulatory and client communications each year. We enabled a clearing and settlement of over $10 trillion of trades each day and over $15 trillion in assets are custodied using our SaaS technology platform. This position gives us extraordinary domain expertise across an increasingly wide set of critical, complex and relatively arcane functions. And we have become a trusted partner to our clients by focusing on critical services behind the scenes to ensure compliant, resilient, efficient and frictionless experience. Now the market we serve is large and growing. McKinsey estimates that the vended market for the services that we provide is $60 billion, which is about 15x our $4 billion of fee revenue. That includes $25 billion for governance, $24 billion for capital markets, and $12 billion for North American Wealth and Investment Management. And our market opportunity has grown 30% since we talked to you 3 years ago in 2022 -- in 2020. And that's been fueled by a combination of underlying growth in each of those individual markets by the acquisition of activity, which added to our total addressable market by the introduction of other new products, which also added to our addressable market. That $60 billion market, though, is only part of the market we serve because only a little bit less than 40% of the spend is with third parties today. And of that, we address about 27%, including in-house technology and operations, our financial services clients worldwide spent well north of $200 billion in the services we provide. And that spend is growing at roughly 5% to 6% a year. Now given the scale and increasing complexity that our clients face, it's no surprise that they're turning increasingly to outside partners for help, and that's driving the vended market at a faster clip of 7% to 9%. Broadridge is one of only a handful of players that can meet the complex needs that our clients have. And we've called this whole trend in the past mutualization and is one of the fundamental drivers of the demand for our services. If you look inside that growth more deeply, you'll see that the growth is even faster in the front office and capital markets and in wealth management and the data and analytics and asset management, all areas in which we've been investing over the past 10 years. Now we've talked about our unique business model, our large and growing market opportunity, and our focus on providing mission-critical services. Those have all translated into a long track record of steady and consistent growth and top quartile shareholder returns. Excluding distribution revenue, which is almost all pass through, our fee revenue is 95% recurring. Over the past decade, we've grown that recurring revenue by more than 2.5x to $4 billion. We've expanded our margins by almost 80 basis points each year, driving a compound adjusted EPS growth rate of 14% over that period. Couple that with our strong and growing dividend and Broadridge has driven average total shareholder returns of 22% since 2014. We have set and delivered on each set of 3-year financial objectives at our last 3 Investor Days. Now these are strong results. We're really proud of that track record of top and bottom line growth. And we believe that our ability to deliver consistent results over this period should give you confidence that we'll deliver over the period between now and 2026 and much further beyond. Our growth is underpinned by 5 powerful long-term demand drivers. First, the democratization of investing continues to drive the growth of our governance and wealth management businesses. Following trading costs, increased diversification and the ongoing introduction of new products are putting more investment options into the hands of more individual investments. And that trend has continued in recent years with the growth of ETFs, managed accounts, model-based investing and more recently, app-based and 0 commission trading. That's driving physician growth and investor engagement and governance and the need to modernize in wealth. Second is the digitization of communications. 25 years since e-mail became ubiquitous, the urgency around reducing the cost of physical communications remains real. Innovation leaders have also realized that done right digital communications can increase client engagement, providing top line benefits as well. This trend is resonating in the wealth management industry, driven by the generational transfer of wealth from boomers to Gens X and Y, and increasing engagement with younger and less afflu investors, who have grown up in the age of Apple and Amazon. Third is the acceleration of trading. Capital markets face pressure to drive increasing trade volumes at ever lower spreads with faster settlement. Settlement periods are converging globally on T plus 1, and plans are already being discussed for T plus 0. New asset classes continue to grow, each often built with separate operations and technology infrastructures, multiply each asset class by dozens of markets around the world with ever higher volumes. And you can see why our clients, both large and small, are looking to simplify their technology and operations. Fourth is the importance of data and with that, AI. Every decrease in costs of compute and storage have enabled companies to leverage growing length of data to guide decisions, operations and products. And now the advent of generative AI, new tools to increase productivity, client experience, client outcomes will become table stakes for all companies. And for those companies with unique data, we think the opportunity is even greater. And finally, regulatory change is a constant. With all the change that I just described, legislators and regulators around the world are constantly creating new rules, updating old ones to maintain what they believe is the safety and soundness of the system and to improve disclosure for all investors. Taken together, these 5 trends are driving demand for our services. Change is expensive, and the challenges across firms are common. And that creates a real rationale for mutualization. We can support a change once instead of each firm building it themselves. This creates an opportunity to share the benefit with our clients gaining faster time to market and lower cost and with us earning a fair return for our shareholders. Since our last Investor Day, we have actively reshaped Broadridge to address these drivers and the future needs that they create. 3 years ago, we told you we'd build on our existing market positions. We said we'd extend our governance franchise grow our capital markets franchise and expand our international business. And we have executed on each of those strategies. In governance, we scaled our regulatory business. Today, we serve 50% more positions than we did in fiscal '20 and we've more than doubled over the last decade. We're helping our clients implement multiple regulatory changes and innovations, including universal proxy, end-to-end vote confirmation, pass-through voting and now tailored shareholder reports. At the same time, we've increased our investment in data security and overall resiliency. Today, the corporate governance system in the U.S. is safer, more efficient and more engaging than ever before. We've also invested in our digital and data capabilities. Last year, 80% of regulatory communications were delivered digitally, up from 72% just 3 years ago. We've grown our digital revenues in Customer Communications by double digits to cross the $100 million threshold. And we've continued to grow data and analytics by acquiring new data sets and extending our global coverage. In capital markets, the acquisition of BTCS has expanded our capabilities into the front and middle office. Together with our ongoing investments in global post trade, we've dramatically strengthened our ability to simplify and innovate our clients' trading operations across multiple asset classes and geographies. And we're innovating with distributed ledger repo and AI-based fixed income trading. In wealth, we completed the build of our wealth platform suite. We're live in the market with 30 separate modules focused on enhancing investor experience, driving adviser productivity, and digitizing operation. Lastly, we expanded our operations by -- and more than doubled our revenues in the past 3 years to over $400 million. The acquisition of BTCS, has strengthened our position in the Nordic markets, in Europe and in Asia. And we've grown our governance business as well. Step by step, we continue to transform Broadridge to be even more closely aligned with the long-term drivers of that even larger $225 billion market that we serve. Looking forward, these changes put Broadridge in a position to enable the transformation of financial markets over the next decade. We have a clear plan to grow across our 3 franchises by building on our strong market positions, driving innovation, delivering next-generation technology, and of course, world-class service. In governance, our largest franchise, we're driving democratization and digitization. As Doug DeSchutter and Mike Tae will describe, will support ongoing growth in investor positions while continuing to innovate in regulatory communications with tailored shareholder reports, pass-through voting, enhanced digital delivery, making regulatory communications more engaging for investors at lower cost for brokers and issuers. We'll also continue to invest in digital and omnichannel customer communications and our data driven solutions for asset managers and a simplifying governance for corporate issuers. Turning to capital markets, Vijay Mayadas will describe how we will simplify and innovate our clients' global trading and operations. In the front office, our clients' infrastructure has been built up by asset class, by region, leading to huge complexity. We're simplifying that with a global multi-asset class SaaS solution. The story is similar in the back office where we already have the leading global platform to help our clients move to a simpler, more efficient solution that enables them to optimize capital and collateral. We can also simplify it front to back with unified data and straight through workflows. Lastly, we're delivering real innovation with distributed ledger repo and new AI capabilities. Our ability to attack multiple pain points across the trade life cycle makes us a unique thought partner for capital markets transformation. In Wealth and Investment Management, our clients are struggling with legacy technology. Tom Carey will describe how we're helping them meet that challenge with the most modern technology in the market. Our next-generation componentized architecture enables clients to seamlessly integrate Broadridge applications, their own applications and other third-party applications to transform on their terms. Our world-class client relationships, technology and associates provide the foundation on which our business franchises are able to scale. As Chris Perry and Dipti Kachru will outline, we've become a global fintech leader by building on strong relationships with key clients. We've built strong and deep relationships on a foundation of superior service of deep subject matter expertise and a go-to-market team that makes it easier than ever to buy from Broadridge. So I don't think it's an exaggeration to call these client relationships, our fourth franchise. As Tyler Derr describe, our next-generation technology will also continue to play a key role in our growth. We're already delivering multiple scaled SaaS solutions in our governance and trading businesses. And now we're using our module architecture and AI to help our clients modernize. And of course, all of this is built on world-class cyber capabilities, which are strengthened by working with industry-leading clients and being able to [indiscernible] best patches from all of them to strengthen our own platform. Finally, our talented and engaged associates and client-focused culture drive real business impact. Now this is important. So just let me take a moment to double-click on it. Our hardworking client-focused culture is based on the service profit chain. We firmly believe that if we engage and develop our associates, they'll provide great service to clients, and that will lead to growth for Broadridge and fair returns for shareholders. We've all seen statistics on how much more productive and engaged associate is. And in our business, where technical knowledge and long-term relationships are important. That matters even more. So our people and our culture have real business impact, and I'm confident that they'll continue to drive growth for Broadridge in the future. Finally, Capital stewardship is at the heart of our growth strategy and strongly contributes to top quartile shareholder returns. Our capital allocation approach starts with funding high-return internal investment that supports the long-term growth and health of our franchises. We're also committed to a growing dividend which would grow with earnings. And I want to call out that we have grown our dividend every year since becoming a public company and by double digits in 11 of the past 12 years. Next, we look for opportunities to invest in our franchises with high-return, tuck-in M&A as we evaluate build versus buy opportunities. And finally, we don't let cash accumulate. We return excess cash to shareholders. Now over the last 3 years, we have made significant investments to help fund the build of our wealth platform and with the acquisition of activity, now named BTCS. Those investments are behind us. So going forward, you should expect us to maintain free cash flow conversion at approximately 100%, to deliver strong returns on the investments that we've made and as a result, to return ROIC to mid- to -high teens. We have a strong and experienced management team. to make all of this happen. They average more than 25 years in financial services and more than 10 years with Broadridge. Mike Tae and Doug DeSchutter are the Co-Presidents of our ICS segment. Doug has been moved Broadridge since before we became an independent company. As Head of BRCC, he delivered double-digit earnings growth while transforming our digital capabilities. Mike joined us 6 years ago. And as Head of our mutual fund business, he has strongly grown our relationships with asset managers and regulators. Tom Carey has been with Broadridge nearly 30 years. He started as a career in technology, and now leads our GTO segment, including both capital markets and wealth. Vijay Mayadas joined us in 2013. He led our fixed income business before taking the reins of the broader capital markets business. Tyler Derr has been with Broadridge for 11 years. We named him Chief Technology Officer of all of Broadridge in 2022 after a long period serving as Head of Technology for GTO. As President, Chris Perry joined us 10 years ago also. He's been my strong partner, especially on the revenue side of the business. Dipti Kachru is our Chief Marketing Officer. She joined us 2 years ago from JPMorgan where she was a client, and she's brought a client's eye to help us really sharpen and better describe our really unique value proposition. Finally, our CFO, Edmund Reese, joined us 3 years ago from American Express, and his focus on driving returns has made us a better company. It is a strong and deep team of proven leaders and it's a good mix of long-tenured executives with deep client relationships and newer people from academy companies that bring fresh perspectives. And that combination is really powerful and keeps us moving forward. So let me conclude by bringing you back to where we started. As I prepared for today, I went back to our last Investor Day. And much of what I'm saying today is similar to what I said then. And that's not an accident because much about our business is similar now to what it was then. We're still a global fintech, providing the critical infrastructure behind governance, capital markets and wealth. The market we serve is still growing and attractive, and we've delivered consistent top and bottom line results. At the same time, a lot has changed since 2020. First, we delivered at the top end of our financial objectives. And we're happy about that. It also means we're 40% larger today than we were 3 years ago. Second, our market has grown. And the growth drivers that I talked about, including democratization and digitization have become even more apparent. And third and most importantly, we have evolved Broadridge. Our governance business has a differentiated position in core offering, driven in part by innovative new solutions like pass-through voting, digital communications and tailored shareholder reports. We have invested to become a leader in capital markets across the trade life cycle front to back. And our wealth business is now bringing the platform of tomorrow to clients today. We're using that same technology across Broadridge to transform our own business. And this evolution puts us in a position to drive the next leg of growth. I have my own simple model for how this translates into shareholder returns. It starts with our objective of 7% to 9% recurring revenue growth. With the operating leverage of being a technology company, we can use that to drive earnings growth at 8% to 12%. Through the cycle at a point for share buybacks and a roughly 2% dividend yield. And we can deliver total returns to shareholders in the low teens over long periods with low volatility and high defensiveness. That's been our track record for the last 3 investor days and that's what we expect to deliver for the next 3 and beyond. Summing up across all of this, as you listen to the rest of the day, the bottom line is that Broadridge has never been better positioned for long-term growth and top quartile shareholder returns. Thank you very much. We have a great day in front of us. And now I will come back after Edmund and we'll do a Q&A. But right now, I'd like to turn the floor over to Mike Tae and Doug DeSchutter to talk about how we're going to continue to drive democratization and digitization and governance. Thank you.

Good morning. I am so thrilled to be here to present our governance franchise with Doug DeSchutter. By way of introduction, I've been at Broadridge for 6 years, where I first led our strategy in M&A functions. And then more recently, over the past few years, I've transitioned to run our mutual funds, retirement issuer and data and analytics businesses. Before coming to Broadridge, the vast majority of my career was in Financial Services, where I was an investment banker and a consultant. Also during the financial crisis of 2008, I served in the U.S. Treasury Department as the Director of Investments for TARP. My collective experience has led me to be genuinely passionate about the intersection between financial services, technology and regulation. And what I love about Broadridge is that we sit in the middle of that, and we drive better outcomes for our clients, and for everyday investors.

And I'm Doug DeSchutter. I've had the honor of being on Broadridge's executive leadership team since we became a public company in 2007. I was Chief Strategy Officer at the time and I was deeply involved in our roadshow when we spun off from ADP, which I suppose is really our very first Investor Day. Since then, in part to becoming Co-President of ICS with Mike, I've run several businesses, including our proxy business, prospectus business, our customer communications business and have led our overall digital communication strategy. Now before we dig in, I want to stress that you're going to see a consistent strategy and a fair amount of carryover from our prior Investor Day as we talk about our governance franchise. And that's not by accident. We play in large and attractive markets, and we have a lot of opportunity ahead of us. We like our strategy, and it's working well. Mike and I have the opportunity this morning to share our perspectives on our Investor Communications Solutions Division, or ICS for short. At the heart of ICS is an extensive industry network, which took decades to develop, it creates extraordinary value for our clients and for our industry and it positions us to grow as our industry grows. And you see that in our regulatory business, where we track and report equity and mutual fund position growth, and we provide investors with critical information therefore, enabling the democratization of investing. And because we hold such a unique vantage point in working across asset managers, corporate issuers, banks, brokers and custodians, we've been able to identify additional client needs, and we've built additional thriving and growing businesses based on those opportunities. So for example, we deliver data-driven fund solutions enabling asset managers to grow and retain the revenue in a very competitive environment. We simplify governance for issuers, and we provide tools to enable them to understand and engage with their shareholders, and we're transforming omnichannel communications in the financial services sector through next-generation digital capabilities, while optimizing print mail. At the last Investor Day, we talked about extending our governance franchise, and that's exactly what we've done. If you look at our financial performance. In fiscal year '23, we recorded $2.5 billion of recurring revenue. That reflects a 5-year average growth rate of 9%, of which approximately half was from new sales and new solutions. We believe we have meaningful room to grow. We have a $25 billion addressable market. And if you're Mike and I sitting here at $2.5 billion of revenue against a $25 billion addressable market, your foreseeable runway is essentially unlimited. Given the demand drivers that Tim talked about a little bit earlier, we're well positioned for continued growth across all 4 businesses within ICS. Mike and I are going to dive deeper into each of our 4 businesses in a little bit, and you're going to see this data on some upcoming slides. But we've delivered 5-year average annual growth of 12% in regulatory, 10% in data-driven Fund Solutions, 16% in issuer and 3% in customer communications with a very high-growth digital business inside of it. This is consistent and diversified growth and reflects the strong execution and the breadth of our governance franchise, Mike?

So how do we achieve all this? The answer is with our key asset, our Broadridge network. This is our powerful, unique governance network that is critical to the efficient functioning of the global capital markets. Let's look at the slide behind me and see what this means. On the left are the issuers of securities, public companies, mutual funds, ETFs. In the middle are the key distribution channels of those securities, broker-dealer intermediaries and financial advisers, which connect with the investors on the right, over 200 million retail and more than 150,000 institutional. Now to highlight the importance of this network, let me tell you what life was like in corporate governance before Broadridge entered the same. Each company -- each public company had to distribute voting materials to every single broker-dealer that held a position in that stock. For the average issuer that meant interfacing with hundreds of broker-dealers, and each interaction involved multiple calls. Did you receive the information? When will the materials go out? When will the voting go back -- come back? Now from the broker-dealer side, each broker dealer had to deal with thousands of public companies, each of which had their own bespoke way of sending data and information. They'd have to have the right regulatory documents for that issuer. They'd have to create the right voting ballots for that issuer and not to mention the requirement to send these materials to shareholders in an accurate and timely fashion. The system created a sea of paper. There are tons of inefficient processes and the brokers and issuers were at risk of not fulfilling their regulatory obligations. Broadridge simplifies this entire system. And we do this by consolidating duplicative processes. We standardize and digitize communications, and we save issuers and intermediaries billions of dollars, while derisking their compliance processes. In doing so, we ensure that the right communication goes through the right channel, to the right investor at the right time. This seamless flow of information ensures that nearly every single investor is able to participate in corporate governance. The Broadridge network is reliable, and it's sufficient, and what's notable since our last Investor Day is that we've continued to extend this network and deliver exceptional value to our clients even as the number of participants and complexity has increased. This matters to all of our key stakeholders. It matters to financial services firms, it matters to investors and it matters to regulators who we engage with frequently and who understand that we support a world-class governance process. This network is not just for North America, it connects investors, companies and intermediaries around the globe. Our ability to leverage our scale across multiple national and regulatory jurisdictions is an important differentiator for us, and we are making so much progress. ICS International has grown on average by 21% each year since fiscal year '20, and we now reach over 100 markets with our products and services. This has led to growth in Global Annual Meeting services, fund communications and data and analytics. And that's just the start. Globally, there is a significant increase in emphasis on shareholder rights and regulators across the world are amending rules to allow for greater investor participation and increased disclosures. We believe this will be a growth driver for Broadridge in the foreseeable future. Across our network, our value proposition helps our clients become safer, smarter and more efficient. Let me walk you through how. First, safer. We have invested hundreds of millions of dollars in the cybersecurity of our network, which we believe is a key differentiator, where ISO 27001 and STAR Level 2 certified, 2 of the highest security standard certifications in the industry. We do all of this because our clients and the regulators expect it from us. And we have earned their trust because of how safely our network performs. Second, smarter. We continually invest to make our network smarter by providing our clients access to data and insights that will help them make better decisions. For example, we can help an issuer or mutual fund deeply understand their shareholder base or we can help a broker-dealer optimize distribution with proprietary suppression logic. Our investments in cutting-edge technologies, such as AI, will only accelerate how we help our clients reach their goals. Third and lastly, we make our clients more efficient by streamlining our operations and investing in technology to simplify and digitize wherever possible in order to drive down costs. Advances such as machine learning and robotics process automation are implemented to reduce errors and enhance throughput. The value we bring on this front is absolutely clear. During the 2023 proxy season, we helped the industry achieve $3.8 billion in cost savings by driving the digitization of communications. Our vantage point from the network allows us to spot emerging new requirements from across our client base, which makes us uniquely positioned to help solve some of the industry's most pressing problems. Whether it be global custodian or IDC or SIFMA, we have been globally recognized as a consistent innovator by some of the most prestigious organizations in the financial world. Now I'd like to think of this recognition as proof that our client-focused values continue to propel us forward and that we remain a change agent in the financial services. Despite having grown to become an industry leader, we don't rest on our history or what got us here. Instead, we focus on getting ahead of our clients' needs by constantly innovating across all of our offerings. Many times, these innovations are driven by industry needs and other times by a single client that wants us to help them with a challenge. For example, we leverage data and analytics to drive better outcomes for mutual fund proxy campaigns. In our communications business, we challenged the status quo daily on the customer experience and regulations have given us opportunity to leverage digital solutions to vastly improve shareholder engagement. Now before I hand it over to Doug to discuss the first business within ICS, it's important to reiterate that with our powerful network, strong value proposition and our many innovations, we are well positioned for growth. Now let's move on to how we enable democratization with next-gen regulatory solutions.

All right. We're now going to cover the regulatory business, and I absolutely love this business, and I think a lot of you do, too. Earlier today, I talked about how our unique vantage point positioned us for growth to extend into fund and corporate issuer and omnichannel communications and grow those businesses. But it's important to note that in the regulatory segment, the same can also be said because we've grown an average of 12% over the previous 5 years on average, and we've seen consistent growth coming from 2 areas: and we're going to dive into these 2 areas through this presentation. First, by underlying position growth, which in turn drives more communications to shareholders. And second, by a growing number of products and solutions that are often tied to the evolving regulatory and compliance needs of our clients. So let's talk about positions here for a moment. As you know, our processing, voting and distribution fees are based on the number of positions that we process. And if you own 1 share of Amazon or you hold 100 shares of Amazon, that's 1 position. We'll talk about position growth, and you can think of position growth as a same-store sales metric because we exclude growth from new brokers until they fully annualized. So equity position growth, 10-year average of 11%, and this reflects direct ownership of shares in public companies. In this 11% over the past 10 years has come from balanced growth across self-directed accounts and also managed accounts. We did have an unusual spike in '21 and '22 during COVID. But I'll point out that equity growth has averaged 7% since we spun off from ADP in 2007. Mutual fund and ETF growth has averaged 8% over the previous 10 years. And while active funds are still growing, the majority of that growth has been coming from passive fund investments. So I want to talk about the resiliency of position growth here for a moment. It's worth noting that since 2007, and that's even during the 2008 financial crisis, when consumer sentiment in the stock market both crashed 40%. Since 2007, on a combined basis, equity and mutual fund position growth has never been negative, and that's the definition of Resilient. All right. On the previous slide, we show a blended average 10-year position growth across equity in funds of 9%, and you see that here as well. And you see that of that 9%, 2 to 4 points came from more investors in the market and 5 to 7 from more positions per investor. While 9% was a 10-year average, we saw 7% combined growth from 2013 to 2020, and then 14% over the last 3 years. So we're going to go into some detail and just build out these building blocks that position growth in more detail. So first is around demographics and they show a steady increase in the population growth of adults over 18. And it's just worth remembering that an 18 or 20 year old, we now have a lot of money to invest in the market. But a position triggers the same communication, whether it's 10 shares or whether it's 1,000 shares. We're also seeing an increase not only in the investable population, but in the percentage of adults who are investing. In addition, as our clients grow, as they innovate as they compete for assets, the number of positions per investor has continued to grow. And it's easier than ever now to just open up an account and it's not unusual to have an adviser-based account and a self-directed online account as well, maybe 2. And industry innovation is also fueling new investment strategies like direct indexing, so you can better manage your taxes and it's creating access to new security types by crypto ETFs, which is allowing investors to participate in new emerging asset classes. So when you take all these naturally occurring forces, you have demographics, you have industry competition, you have industry innovation. All these things lead to more investors in the market, more accounts, more positions per account and all those are driving more position growth. Before 2020, we saw a 7% combined position growth over periods of time. And I could foresee 2 to 4 points coming from more investors in the market and 3 to 5 points being driven by more positions per investor. All right. Diving into some of these in just a little bit more detail. Here's the demographic data over the last 10 years. The top line is census data of the U.S. adult population. In the bottom line, is information on the number of U.S. families holding stock. And I think the takeaway on this is both trends are consistent and both lines are going lower left to upper right. So this is the data behind the demographics, that's showing 2 to 4 points of growth coming from demographics over periods of time. All right. Therefore, the biggest driver of position growth is coming from more positions per investor. And I absolutely love the data on this slide for a couple of reasons. First of all, it tells a great story about to tell it. But it also comes from a proprietary Broadridge analysis across 40 million retail investors and it's coming from our fund business, and it talks about the unique data insights that we have at Broadridge and in the fund business that Mike is going to talk about in a little bit. All right. So there's a couple of trends here. There's 2 trends here, and they're very clear. So the first as [ Mick Jagger ] was saying, time is on our side. As investors age, the size and complexity of the portfolios is growing. Today's young investor with their 8 positions is likely to almost double them by the time they get to middle age and then grow another 50% as they get ready for retirement. Second, you can see across the various different age groups that the average number of positions continues to grow regardless of what age group that you're in. The average number of positions grew 5% to 6% annually in '19 and '20. And it accelerated further even beyond that. On the fund side, the trend is being driven by a shift towards ETFs. And on the equity side, it's being driven in part by an increase in number of managed accounts. So we wanted to provide this information to you and decompose and create the building blocks for position growth. We know it's a very important metric for you, and we're hoping that this data is valuable for you as you think about this going forward. All right. Let's go beyond position growth now. We have been and will continue to be in very dynamic regulatory environments mandating, protection and transparency for investors. And you can see just how active regulators have been both in the U.S. and abroad. Between the SEC and European regulators, there's almost 30 new rules and regulations coming out every year. And not every single one impacts our clients, but many do and they needed to navigate them. Given our focus on governance compliance, we're in the [indiscernible] seat to be able to provide mutualized solutions on behalf of our industry and to solve these. This slide is a bit of a proof point, and a lot of these products are in response to the regulatory changes that you saw in the previous slide. And you can see a subset of some of the new products and solutions here. I'm going to talk about a few. First, I'll raise class actions. Class Actions recovery was an opportunity that we identified a few years ago in the fiscal year '20, right about the time of the last Investor Day, we brought in a highly accomplished team to drive that business going forward. They've already taken it to being a $20 million a year business. I expect it will be $40 million a year by the time we get to the next Investor Day, and it represents a $1 billion addressable market. So I see a lot of opportunity for growth to come. More recently, we've launched pass-through voting. Now pass-through voting allows asset managers to get input directly from retail shareholders of funds instead of simply relying on the vote recommendation of large vote agencies. 3 of the top 5 asset managers in the United States right now are undertaking proxy pass-through voting campaigns, and we are the engine behind each of them. Another launch, which is underway is for tailored shareholder reports. And we've worked with the industry to redefine what a powerful and informative communication can look like and tailored share of the reports is creating additional opportunities as well because of our next-generation composition capabilities and automated data taking capabilities. And we're already driving a lot of market interest, and we've already got some meaty chunky sales as a result. I'm going to end our discussion on the regulatory business here, and it's worth acknowledging again that our success here has paved the way to grow in other areas, including our data-driven fund business, our issuer business and our omnichannel business. 3 years ago at the last Investor Day, the combined recurring revenue from our fund issuer and omnichannel business was just over $1 billion. Now it's over $1.3 billion, and that represents an 8% average annual growth over that time period and that's coming from businesses that are not directly related to position growth and now growth was essentially all organic. And collectively, we have 4 businesses that create a very strong governance franchise.

Let's now talk about our second business area, data-driven fund solutions. We're growing this business by harnessing the power of our unique asset management capabilities. We have delivered an impressive 5-year growth rate of 10% and revenue is now over $400 million. We serve asset managers and distributors who are operating in a very challenging environment. They have to navigate market volatility and geopolitical risk. The regulatory change is constant and the trend of active to passive mutual funds, ETFs and low-priced products are creating real margin pressures. Broadridge's data-driven fund solutions businesses addresses our clients' needs through 2 sets of solutions, global distribution insights and retirement technology and analytics. Our global distribution insights solutions help asset managers identify growth opportunities, understand competitive dynamics and operate in complex macroeconomic environments. We do this through the application of large data sets and AI-powered analytics. And these solutions help asset managers grow revenue, while mutualizing the operating costs of global operations. Now this platform is powered by 4 key attributes. First, with robust data. We track and analyze over $100 trillion in global assets across retail, distribution, retail institutional and private markets and that includes going back more than a decade of history. Second, with domain expertise. We have some of the industry's leading experts on key topics, and we use their knowledge and expertise to augment and improve our data and analytics solutions. Third, with actionable analytics. Our data powers a diverse and comprehensive set of analytical solutions that help asset managers grow the revenue, manage their expense and adhere to regulations. And then fourth and finally, with AI-powered insights. Our data is the bedrock for the application of AI to understand complex relationships and using machine learning. We also help our clients consume our research using generative AI. And we are leveraging our global asset data set and neural networks to predict future asset flows. This will help asset managers build the best product for the appropriate market at the optimal price. Let's now look at our Retirement and technology analytics solutions. The Retirement channel represents a bright spot in the asset management industry because of the opportunity that it provides to drive more assets to fund managers and there are strong fundamentals for ongoing growth in this space. They include the recurring nature of retirement plan contributions, regulatory change, such as Secure 2.0 Act, that increases retirement plan formation and consistent flows into individual retirement accounts. As retirement accounts and assets continue to grow, our retirement solutions help our clients participate in that upside through our scalable solutions and industry expertise. We sit in a unique position of trust within that retirement ecosystem. We serve asset managers, record keepers and advisers. And our strategy is focused on broadly enabling those financial intermediaries, but we do not compete with them. So what do we do? We power scalable retirement platforms. Our open architecture trading and custody platform executes 67 million trades annually across 600 asset management firms. Over the past decade, we have achieved fivefold growth from approximately $125 billion to now $630 billion of assets under administration, which is a testament to our track record of executing for our clients. We also improve participant engagement. Our platform provides over half of all enrollment and disclosure communications for U.S. retirement plan participants. And we do this through 12 of the largest retirement record keepers. And then lastly, we enable advisers by training them on their fiduciary responsibilities and delivering them software that helps them win and grow new business. And all of this gets back to data as these solutions help enhance the data and analytics offerings that we provide to asset managers and their distributors. Now before we move on to talk about our issuer business, let me highlight how excited I am about the power of analytics, about the power of AI and the power of our mutualized capabilities to help solve our clients' biggest needs. And this is just such a great example of how we leverage our network to serve our clients, while capturing new opportunities in front of us. Okay. So let's now talk about one of our recent success stories at Broadridge, our issuer business, which is driving real value for Chief Legal Officers, for Corporate Secretaries and IR professionals year after year. At the core of what we do is we simplify increasingly complex disclosure and governance requirements for public companies. And our success is clearly reflected in the financial performance of this business, which has experienced a 5-year growth rate of 16%. And this is the result of an effective strategy. We provide issuers with a comprehensive platform to understand and engage with shareholders. Shareholder engagement is an increasingly critical area for issuers, particularly when facing contentious votes. And we help them with 3 types of solutions, data and analytics to better understand the shareholders, composition and disclosure solutions that generate compelling content and omnichannel engagement tools that maximize the benefits of shareholder outreach. Let's talk a little bit about the complexity of corporate issuer faces as a result of being a publicly traded company. They have so many compliance obligations with penalties for errors, or noncompliance. Just to paint you that picture. They have to manage their ongoing reporting requirements, including filing 10-Ks, 10-Qs, their proxy statement, while at the same time, conducting an annual general meeting. They also have to manage event-driven situations. And these instances can vary from a special proxy to shareholders in a special meeting to filing requirements for acquisitions or for other capital raises. And then to add on to that, there are many new regulations on the horizon. For example, approximately 50 proposed or soon-to-be implemented new rules are sitting right now at the SEC, and that includes the climate disclosure rules. And this is going to add more disclosure requirements to both new and existing documents. And then lastly, the need to leverage technology to address mounting regulatory requirements, such as XBRL tagging, which has historically been a costly and manual process. Our value proposition addresses our clients' pain points. We offer an end-to-end solution that connects issuers and shareholders across all intermediaries. And because we provide both beneficial and registered shareholder services, issuers can work with a single entity to drastically reduce the complexity and expense of reaching their investors. And importantly, we don't just provide investors with a document but we get them to act, and that is so critical for corporate governance. So what do our solutions do? We help them understand who their shareholders are by providing them with visibility into their shareholder base. We built critically important composition services and tools that enable issuers to meaningfully connect with all their shareholders. And we provide issuers with omnichannel solutions to communicate with their investors and to drive meaningful engagement. A key value -- a key part of our value add is giving issuers the data and the tools that enable them to build and execute a strategy for reaching shareholders that drives the outcome that they need. Just to give you a little bit of sense of the scale, these connections result in billions of regulatory and customer communications annually for issuers and over 25,000 SEC filings. Altogether, the addressable market for these critical solutions is $3 billion. The result, over 3,100 U.S. public companies choose Broadridge because of our valued expertise to help them simplify their governance, complexities and whether it's our unique data, including ownership, voting insights and demographics or our ability to create investor communications in a compelling and engaging and timely manner in line with all distribution and regulatory rules or our pioneering tools like the virtual shareholder meeting. We've built the governance platform to enable issuers to effectively engage with their shareholders and regulators in a simple and compliant way. Let me finish this section by pointing out that the needs of our clients will continue to increase as additional regulation is introduced, making our end solutions more and more valuable. And for that reason, we expect our issuer business to continue its impressive growth. Let me now turn it back to Doug, who will cover our final business.

All right. The fourth flash and final business that we're going to cover within our ICS division is our Customer Communications business, in our trend to transform omnichannel communications. Our fiscal year '23 revenue in Customer Communications was $673 million. And we're still seeing very large outsourcing opportunities as we partner with institutions who are looking to drive to better digital outcomes, create more digital capabilities and rationalize print capabilities, some of them of which are in-house. And as we execute on the strategy, we are converting higher revenue, but lower margin print into higher-margin, higher-growth digital revenues. And as we do that, I expect that our revenue growth rate in customer communications going forward may be below Broadridge's average overall growth rate. But I also expect we'll continue to make very strong earnings contributions given the inherent scale in the margins of our digital business. For those of you with us at the last Investor Day, you'll be familiar with the 3 primary goals that we've set forth for the Customer Communications business. First, we overachieved our initial synergies when we closed the deal with DST for their North American Customer Communications business. And because of that, we were able to deliver very strong earnings contribution and make very meaningful investments into our digital platforms and capabilities. Second, we then had significant scale and print and industry-leading digital capabilities, and therefore, we become widely recognized as the leading provider of omnichannel communications in North America, and this has been evidenced by several years of strong sales success. But third and most importantly, our broader objective is to create better digital outcomes for our clients and a healthy, growing digital business within BRCC. And we're achieving both. And in fact, revenues within BRCC have now exceeded $100 million, and they're growing at a double-digit clip. We've continued to make continued investments in our omnichannel communications platform, which is called the Broadridge Communications Cloud. And generally speaking, we've added new capabilities, which are scalable across our entire client base so that we can provide a level of expertise scale, investment and efficiency that's very difficult for our clients to replicate on their own. But it's not just about the platform. And importantly, we've been leveraging the communications cloud to create targeted personalized experiences based on that platform. So for example, in wealth, we've reimagined the wealth experience and the wealth statement to streamline print and create personal interactive digital communications. We'll share in a little bit. We're live in market with that, and we call it our wealth and focus experience. We've also created a targeted experience in fund interim communications. And so that when you get an e-mail, you open it to see pushed relevant, easy digest information instead of just having to access the link that take you to a PDF on another website. And for proxies, we're creating more engaging experiences, more options for brokers to brand and to customize the communications that they send. And we're using better digital capabilities as a way to explain complex elections and actions to investors. And so I'll use an example of a tender offer. If you've ever gotten a tender offer letter in the mail, you opened it up and you look at like, let me call my adviser to help explain it to me. Sometimes they can and sometimes they can't. But we're using these digital capabilities to change all that and to make it easier to understand the information that you're receiving. So we call each of these experiences in focus experiences, and we're bringing our scale and our platform capabilities and now importantly, design and expertise to digital communications. So let's watch a video and let's see what it's all about. [Presentation]

Well, we're excited about bringing these new experiences and capabilities to market. And here, you can see that others are too. We're gaining recognition as a digital leader in financial services, around digital experiences, especially when compared to cross-market impact, vision and capability. And if you're wondering where Broadridge is on this slide, we're in the upper right corner, next to Adobe and Salesforce. As nice as those accolades are though, here's a real benefit. Clients are seeing significant savings and better digital outcomes, we've got a few instances of wealth and focus ongoing right now and clients are saving millions of dollars in paper and postage with a simplified print experience and higher digital adoption. The digital adoption engagement statistics are fantastic. We're seeing higher open rates, 3x industry averages on click-through rates and 10x the industry norm in terms of the amount of investors that go and engage with the underlying statement. Those are fantastic statistics and results. And as I said earlier, we're strategically aligned to this outcome. So even though we're proactively cannibalizing higher but lower-margin print revenues, we're creating a healthy growing high-margin digital business within BRCC. So this slide does a very good job of providing an overview in terms of BRCC's overall strategy, and we've been executing extremely well over the past several years. Well, Mike and I are going to conclude talking about our governance franchise. And as we do, there are 3 key points we'd like you to take away. One, our strategy has been consistent and it's working, and we're benefiting from demand drivers such as the democratization of investing in the digitization of communications. Two, at the heart of ICS is an extensive industry network that's taken decades to develop, and we continue to strengthen and grow that network through constant innovation. And third, our success in vantage point in our proxy and regulatory business has allowed us to create additional growing thriving businesses in fund, issuer and customer communications. So we have 4 growing, healthy and thriving businesses across this governance franchise. Mike and I are incredibly excited about where we take it from here. All right. That concludes the governance franchise discussion. We're going to take a 10-minute break. And when we come back, Vijay is going to walk us through capital markets. Thank you. [Break]

Our presentation today. We could take a seat over the next minute or so. Terrific. Well, as we settle in, our next presentation is coming from our capital markets business, and you're going to hear from the President of our Capital Markets business, Vijay Mayadas, but first, we're going to have a short video. Thank you. [Presentation]

Well, thank you, Edings, and welcome back, everyone, from the break. I'm Vijay Mayadas. I have the privilege to lead our Capital Markets here at Broadridge. My journey with Broadridge began just over a decade ago in 2013 when I joined as Head of Strategy and M&A. I then transitioned to running our fixed income business in 2016 before leading our capital markets business in 2020. I started my career in capital markets technology and I'm passionate about the power of technology in shaping the future of global capital markets and our leadership role in that. As you saw in the video, increasing trading velocity, faster settlement, the relentless pursuit of efficiency and rapid advances in artificial intelligence and digital assets are transforming capital markets. And Capital Markets firm's ability to succeed and thrive is driven by their capacity to simplify, innovate and transform their technology infrastructure. Over the next 20 minutes, I'll talk about how our trading, connectivity and post-trade solutions are uniquely positioned to help capital markets firm succeed and why this creates a compelling growth opportunity for our franchise. We're a market leader in capital markets technology. Our solutions deliver simplification and innovation across the trade life cycle from order initiation through the settlement. Our SaaS platforms are engineered to be global, multi-asset and modular to meet the diverse needs of global capital markets firms, helping them drive transformation at scale while mutualizing the cost of industry change. We're driving innovation with the application of powerful artificial intelligence and distributed ledger technologies that will profoundly shape our industry. And I believe that our leadership position driven by our scale, execution and innovation track record, create a compelling growth opportunity for the future. Our financial performance reflects robust demand for our solutions and very deep alignment with market trends. The franchise generated $965 million in revenue in FY '23. We have a strong established presence in North America and have rapidly expanded in EMEA and APAC. Today, our capital markets business accounts for the majority of the $434 million of revenue that we generate internationally. And key drivers of our revenue growth have been our post-trade business, the onboarding of major new clients and the acquisition of activity now broadest trading and connectivity solutions. BTCS entry into the trading and connectivity market and expanded our presence in EMEA and APAC. And with our unique combination of trading, connectivity and post-trade solutions. We serve global and regional capital markets firms holistically across the trade life cycle. The breadth of our solutions in our global scale equip us to tap into a substantial $24 billion addressable market opportunity of vendor spend paving the way for continued growth and expansion. Our position in the market is underscored by the volume of transactions we handle daily amounting to around $10 trillion in equity and fixed income trades, as Tim highlighted. In fixed income, our post-trade platform is the go-to choice for 20 of 24 primary dealers, while 7 of the 10 largest firms rely on us for equities trade processing. The leading firms use our front office solutions for trading and connectivity, connecting 2,200 buy and sell-side firms and routing tens of millions of trade messages daily across thousands of channels. We serve over 120 markets globally. We are innovating at scale. For example, our distributed leisure repo platform that combines smart contracts and digitized collateral is currently processing over $1 trillion a month of tokenized repo contracts. And as you can see at the bottom of the slide, the industry has recognized our contributions through multiple high-profile industry awards across our trading and post-trade solutions and for our innovations in artificial intelligence and distributed ledger technologies. We see a compelling market opportunity ahead of us, where the demand for our solutions is amplified by a number of tailwinds. McKinsey estimates that capital markets firms will spend $56 billion on tech and ops in 2023. Of that $56 billion, $24 billion is vended spend and $32 billion is in-house spend. And this is really important to consider, as banks often reallocate the spend to vendors as their priorities evolve. I'll highlight 4 factors that are influencing how firms are allocating the spend. First, increasing trading velocity and faster settlement cycles are compelling firms to find ways to simplify their trade life cycle, driving significant investments in this area. Second, continued pressure on trading economics is driving banks to unlock more efficiencies by consolidating trading platforms across asset classes and regions. A recent survey from Value Exchange noted that 80% of bank's existing technology platforms are running legacy tech, and banks realize this needs to change. Data from selling suggests that 2/3 of global capital markets firms are planning to modernize critical systems in 2023. And these pressures are compounded by the fact that as banks have grown, they have built or inherited technology platforms that are siloed within asset classes and regions. For example, we have clients that have multitudes of legacy order management systems for just equities and multiple systems even within a single region. And this fragmentation across the trade life cycle creates a lot of challenges for banks, impacting efficiency, creating risk and impeding their ability to innovate. The third factor is that clients are looking to solve for technology transformation in an incremental manner versus big bang using phased approaches through modular components. Now we cater to a highly diverse set of capital market firms, each with their own complex and unique technology infrastructure. And this has steered our approach towards developing modular solutions across the trade life cycle. And this modular approach ensures that we can tailor our clients' transformation journey to their specific needs through scalable components delivered in an economically efficient manner. Finally, regulatory change continues to be a key driver of mutualization with new regulations creating new opportunities. [ Shortening ] settlement cycles will be adopted globally over time, the U.S., Canada and Mexico are moving to T+1 in May of 2024. Momentum is building in Europe and in the U.K. and India is already settling a T+1. All of this increases the operational pressure driving the need for simplification, consolidation and innovation across the trade life cycle. A survey from value exchange conducted earlier this year showed that less than 10% of firms were fully prepared for T+1, and over 40% hadn't even started preparing, underscoring the urgency for firms to adapt to the new settlement regime. Our trading connectivity and post-trade solutions enable our clients to consolidate and simplify across the trade life cycle onto a global modular multi-asset platform that's ready for T+1. I hope this gives you a sense of the leadership position we have in capital markets and the key market trends that highlight the opportunity for us ahead. Now let me dive a bit deeper into our specific role across the trade life cycle and highlight our priority areas that will drive growth in trading, connectivity and post-trade. Our focus in capital markets is simplification and innovation across the trade life cycle. So let me take a moment, kind of break down the trade life cycle. So you can see the difference we make in this intricate area. In a trade broker-dealers are the intermediary between the buyer and the seller, and they have to work with several parties during this process. It's absolutely critical to have accurate, secure and timely flow of information from one party to the next. The process starts with an investor initiating an order with their broker dealer. The broker-dealer typically receives this order through an order routing network like NYFIX, which is what I'm showing at the top of this circle. The order then passes into the broker-dealers front-office order management system, or OMS, for trading and execution. The OMS assist brokers in navigating multiple trading venues to secure best execution for the trade. For trades involving easily traded securities, the OMS enables automated low-cost electronic execution or low-touch trading. For more complex orders, the OMS offers sophisticated workflows, helping brokers achieve best-in-class execution through high-touch trading. And advanced technology like smart order routing allows traders to quickly identify the best execution pathways into liquidity pools. Now we move to the middle office, the trade matching, validation and allocation. Here, the investor informs the broker-dealer, how the trade should be allocated among its accounts. The broker-dealer and investors then engage in a confirmation and affirmation process to validate the trade details. Timely validation is critical to reduce the risk of operational losses. And once all the information has been verified, the trade is ready for the back office. Finally, the back office executes the clearing and settlement activity. The transaction is recorded in the broker-dealers books and records, which are then used for a broad range of activities, including finance and accounting, compliance, regulatory and risk reporting and asset servicing. Now that was a very basic explanation that dramatically oversimplifies the process. Now imagine accounting for millions of transactions across multiple markets multiple asset classes and geographies. All of them need to follow this basic workflow. And accelerated settlement puts even more pressure on these processes that are already challenged given the current retain technology infrastructure. By ensuring seamless integration, both within and across the front, middle and back office, and offering some of the most scalable, innovative and resilient industry solutions, we help our clients increase efficiencies, mitigate risk and position themselves for growth. And this is where we distinguish ourselves as the market leader. Within this context, our strategy is focused on 3 themes that together help our clients drive simplification and innovation across front, middle and back office. In the front office, our solutions optimize agency and principal trading on a standard platform. In the middle and back office or post-trade, our global real-time multi-asset solutions simplify our clients' operations and streamline integration into the front office and our innovations using cutting-edge transformative technologies and sure we are well positioned for the future. I'll dive into each of these now in a little bit more detail. We have a state-of-the-art OMS platform that gives agency and principal trading firms, best-in-class order management, execution, scale and reliability. Our front office solutions are supported by a global fixed network with around 17,000 touch points across 2,200 asset managers, broker-dealers and trading venues. And this mission-critical multi-asset, multi-market platform provides a resilient order routing network and post-trade matching solution that's ready for T+1 and even T+0. Now BTCS' footprint was historically concentrated in equities outside of North America. We are successfully expanding into the U.S. and Canadian markets. We are broadening our asset class coverage to include clear derivatives. For example, we're going live with a major client in the U.S., displacing a key competitor in the order management space. And this is a really significant win for our North American trading franchise, accelerating our momentum in the market. We are winning additional marquee clients from competitors as firms seek to partner with a trusted and resilient vendor that's investing for the future. We're simplifying post-trade for our clients through global multi-asset integrated solutions to optimize their back-office activities. We're investing in our post-trade platform so they can be deployed as modular components built on an API-first microservices architecture with cloud-native design patents. This modular approach makes a transformation journey much more manageable and cost-effective for our clients. Last quarter, we completed the rollout of our post-trade platform for a large global bank, looking to simplify its technology stack, covering 75 markets around the world. We consolidated 5 legacy client systems, each with their own operational structure, onto a single unified Broadridge platform. The scale and scope of this project is a strong example of how we're helping global capital markets firm simplify, become more efficient and become more resilient. We're also generating -- we're also incorporating advances in generative AI, smart contracts and distributed ledgers into core, middle and back-office functions. And I'm thrilled to see how these advances are driving step changes in the efficiencies that we can create for our clients. Now the convergence of our global trading and post-trade solutions puts us in a truly unique position to drive simplification across the trade life cycle. This convergence increases straight-through processing, reduces operational costs and risks and provides better analytics. Let me highlight a few examples. So the front office struggles with delayed access to post-trade data in real time, impacting decision-making and market responsiveness. By enabling front office applications to access post-trade data in real time, we enable better trading decisions. Data issues, in general, cause firms a lot of problems across the trade life cycle. And with the foundation of normalized data, we streamlined the trade process, minimize reconciliations and data breaks and increase efficiency. And these are just some of the many benefits created through an interoperable modular multi-asset front-to-back offering. And these benefits are generating new sales opportunities as clients are seeking to converge technology capabilities onto a single platform. Beyond our core trading connectivity and post-trade solutions, we are pioneering innovations based on AI and digital assets that I believe will profoundly shape our industry over the coming years. We're driving innovation through our position as a trusted provider across the entire trade life cycle, the scale of our network and an entrepreneurial focus on solving industry challenges. The repo market, one of the largest financial markets is ripe for transformation using smart contracts and digitized collateral. We are the market leader in applying this technology through our Repo platform. We recently announced go-lives with UBS and HSBC. Our growing pipeline of clients underscores the market's recognition of the platform's ability to generate immediate cost savings, increases in efficiencies and increased collateral velocity. And this innovation is especially relevant as the world moves towards faster settlement cycles. The combination of smart contracts and digitized collateral enables instantaneous settlement that can unlock new sources of intraday liquidity. We're integrating generative AI at the core of our capabilities to create multiplier effects in operational efficiency for our clients and increase our own internal productivity. Our investments in AI are supporting new products. One of our most notable examples is BondGPT, the first GPT-powered tool in the fixed income markets. BondGPT, part of our LTX corporate bond platform quickly provides answers to complex question about corporate bond liquidity, questions that would have taken 30 or more minutes to answer are now taking seconds. BondGPT is a great example of the speed at which we're innovating, going from a live product -- going from a concept to a live product in less than 8 weeks and using large language models to accelerate our product development cycle, which Tyler will touch on a little bit later. We're very excited about several upcoming GPT products that we're developing for trading and post-trade. And let me just say that over the course of my career, I have never seen innovations come to market this quickly with this level of transformative potential. Take a look at this video. [Presentation]

Provided you with a deeper understanding of how we're helping our clients simplify and innovate across the trade life cycle. Let me now share some additional perspectives on what I think sets us apart in the market and how our unique position lays a foundation for sustained growth over the coming years. Across the trade life cycle, we face competition from incumbent vendors, emerging fintechs and in-house technology builds. And we're seeing our clients increasingly look to trusted third parties instead of building in-house. And this is accelerating as fragmented legacy in-house technologies come face-to-face with rapidly evolving market structure and increased concerns around resiliency and cybersecurity. Our differentiation is anchored in technological innovation, our investments for the future, deep client relationships and deep capital markets expertise. The breadth of our solutions, our proven track record of delivering some of the most complex transformations in our industry, sets us apart in the competitive landscape. Our emphasis has always been on building long-term client relationships, understanding the distinct challenges of each asset class and geography and providing resilient and scalable solutions. We're excited by the growth opportunity ahead, given our competitive position and the market drivers I mentioned. Our engagement with Tier 1 U.S. banks, global Tier 2s and regionals is intensifying. And these deepening relationships are a testament to the trust and value we bring to our clients. The largest banks are increasingly looking to trusted partners like Broadridge for technology solutions that would have previously been built in-house. A case in point is a premier U.S. Tier 1 firm that considered internalizing their fixed income processing tech. However, the complexity and cost led them to come back to us and expand their engagement with us using our platform to broaden their tech capabilities. The trend is clear with more and more marquee clients choosing to use our solutions across the trade life cycle. And as a result, we're seeing growth in our pipeline, reflecting the deepening relationships with our clients. Our global client relationships across the front, middle and back office expand share of wallet for our component solutions, and you'll hear more from this from Chris and Dipti a bit later. And finally, regulatory and market structure changes create opportunities for us to engage clients and accelerate sales cycles as firms focus on addressing their own technological and operational gaps. In closing, Broadridge is a leader in simplifying and innovating trading. We are uniquely positioned to help firms optimize trading and connectivity and simplify post-trade solutions with global real-time multi-asset SaaS platforms. Through our strong partnerships with top-tier banks, our growing global footprint and leading innovations we are at the forefront of accelerating the industry's transition to a more efficient and technologically advanced future. Thank you very much. I will now introduce Tom Carey, the President of GTO.

Hello, and good morning. Truly a pleasure to be here today. Now I'm Tom Carey, and I lead our Global Technology and Operations division and have done so since 2018 powering the growth in our capital markets and wealth franchises. Now prior to that, I pioneered our growth in Europe and Asia and through my career, I've been involved in all our functions. So I think I have a deep -- or I know I have a deep understanding of the market and how we drive our growth going forward. Now as Tim said, he introduced me as a technologist. Well, what he didn't say was it was back in the 1990s, and it was in AI. So I was doing AI back in the 1990s in a really poor way, I think, on reflection because now you see this massive innovation that's happening in this industry. But what I'm particularly proud of is how Broadridge is leading in the pioneering of AI across financial services. We're doing a stellar job. You heard from Vijay, you'll hear from other people later on. We're doing a fantastic standout job in that space. So now let's turn to wealth a little bit. And as we brought our wealth businesses together and we've delivered the wealth platform, I've been leading that charge with our wonderful wealth management team led by an industry icon in Mike Alexander. So we're now going to jump into wealth. This is where we are powering our clients' growth by modernizing wealth management, modernizing wealth management. I know you're super keen today to hear about the wealth platform and how it's going to deliver long-term value. And my purpose over the next 30 minutes is to cover that off and hopefully please you with the information. Now the agenda today and the key topics we have, how we have a leading position in North America, a leading position, how we have the platform that is going to power our clients going forward. 3 core drivers that we are totally aligned to with our clients. And I think probably most interesting for all of you here our go-to-market. Now let me tell you about those drivers because they're really key, I'll give you a foundation now and then we'll talk about them later in terms of detail. Number one, how we are personalizing the investor experience with our solutions. Number two, how we're optimizing adviser productivity with our solutions, and third, how we are digitizing for our wealth clients across their enterprise. Now those first 2 are revenue drivers for our clients, really important revenue drivers. The third is more of a cost play and it's paramount right now in our industry, given cost-to-income pressures and the desire to transform given all the AI and emerging technology out there. So we are very, very key in this space. Let's jump in now to the marketplace. We sit within a fantastic $12 billion market. We define that by outsourced tech and ops spend, and our revenues last year, our recurring revenues were over $550 million. Now that gives us a very strong base, which I'll talk about in a minute, but also tells me as well, we have lots of opportunity, $550 million on $12 billion means more market share, but not enough yet. Now I thought back about the highlights over the last 3 or 4 years since our last Investor Day and I have a few for you. First off, our adviser tools have dramatically increased in where we are in the market, and we've got great momentum in digital marketing, and I'm going to show you that later. Number two, probably Edmund's highlight of the year, is that UBS is live and revenue recognition is flowing. Number three, in this, we see a big growth in opportunities in the marketplace and our pipeline is growing and opportunities are growing. And that they're really strong opportunities for us going forward. There is a lot going on in wealth today. So let's flip over now to our foundation, the foundation of where we are because we just didn't enter into wealth last year. We have 20 years of strong experience -- more than 20 years, and we have a great client portfolio already. We have marquee names in the U.S. and in Canada. Indeed, 5 of the top 6 Canadian banks are on our platform. And we have some fantastic, impressive stats here, $15 trillion in assets under management and 120 million accounts are on our platform today. And there's more to come as we sign and win new business, and that's fantastic. Now to set context, some of these clients go end to end, so we do all their flow. For others, today, we offer 1, 2 or many components in there. And I say that for 2 reasons. One, we offer flexibility. Two, there is loads of runway left in our existing client base. Industry recognition is key. We love that. And we love the fact that Everest Group this year selected us twice in the top quadrant in performance, the wealth platform and in digital. What this means? Well, this highlights our strong industry position and leadership that we bring to the table every day of the week. We're going to move now to the market dynamics. And they're quite interesting, they're evolving and very key here is, favorable to us. And why is that? Well, firms are looking to address these pain points and what we offer addresses the pain points. Think about our primary focus areas I talked about, personalization, optimization and digitization and compare that to client needs, they want to differentiate their offering. They want to attract and retain top advisers, and they want to transform operations and technology. We have complete alignment. Advisers equally need to be adaptable. There's change coming. Competitive pressures on fees, commoditization of existing products that they currently sell. They need new revenue sources. They need new products. And examples here are alts and securities-based lending. Market demographics are also changing. There's a movement of wealth to a younger generation, and they want digital, online solutions with self-access. Equally, with women outliving men on average, 42% now of advisers' clients are women and statistically are likely to switch adviser when they get possession of the portfolio. So that demands -- it needs adviser to be adaptable. They need to embrace digital solutions and tailored content. And that's exactly where we are focused on serving the current asset owners, and the future asset owners out there. Regulatory, Tim touched on them earlier. Regulatory is always out there, but there's been a shift to a little bit into protecting and helping the investor. And let me give you an example here of the tax-free homebuyers initiative, which is a mouthful to say and I got through it, in Canada. We were first in market here. We were absolutely first in market with a solution and that enabled our clients to be first in market, too. What's that mean? They got the revenue, they earn the clients and they move forward, really strong. But why do we get first in market? Well, I have it -- for 2 reasons for you. One is the platform. The platform's flexibility is superb. The second is our people. You cannot win in this market unless you have deep domain knowledge about regulations, about financial services, and we have that in spades. Now let's move on to cost pressure, and I'll touch on it very briefly. Cost pressures remain, cost to incomes are under pressure and clients want to transform. They want to embrace AI and changes. But how do you fund that on an internal budget? You can't, potentially. So you have to come to scale providers like Broadridge. So all this is coming together to actually power the wealth platform, and it's where we excel, both driving adviser needs and digitizing operations. Now I did mention 1 or 2 products in there, and you'll be shocked to know they're products that we have in our portfolio. So later on, we'll talk about a few of those. Right. It's time now to debut, for you at least, the wealth platform. Now in 2018, we set out to create the long-term sustainable wealth franchise, and we quickly secured 1 of the largest wealth managers in UBS. The key now, they are live. They are live and in market with a differentiated experience. We're driving revenues and we're enhancing productivity. And we had a vision here, a very important vision that I'm going to go carefully through. Two parts to it. One was to create the long-term wealth platform. But number two was to create the foundational technology for all of Broadridge. And I'm lucky to say that Tyler is coming up next, and Tyler's going to go in depth and that -- and showcase what we're doing. But I will tell you right now from my viewpoint, it's driving scale, it's driving standards and it's accelerating our time to market for all our products across Broadridge. But let's bring it back to wealth and what we're doing in wealth. At the heart of what we've done, we have created a component-based open architecture. And by doing that, we brought together all our components, both our long-standing components and the new ones from our recent platform build phase. And that's given us a lot of flexibility. We can deploy our platform completely or we can do components. So 1 component, 2 components, up to the full platform. And we term that to our clients, transformation on your terms. You choose and we'll expand with you. Now here, key. Both new components that come from our recent platform build phase, we've already sold 1 or more components to 9 clients and there's much more to come in our sales cycle. Now let's look at the front of the house of what we actually offer to the adviser. We have a brand-new adviser workstation with the latest tech, it looks incredible. You may see it later. And we're deploying all our capabilities into that workstation plus the client capabilities and third parties. And it's live, very key. It's live. It's live with 15,000 field users and an exceptional 95% adoption rate in the field. That is almost unheard of. Now down below here is an integration layer, but it's not all about tech here. It allows us to move data seamlessly and coherently. But what it also does is allow easier upsells going forward. Because once we have 1 or 2 components in place with a firm, we've got that layer in place, and then we can power the next component in as well. So it allows easier integration and easier upsells. Now within the wealth portfolio, there are 50 components today. Tim touched on the 30, which comes from our recent platform build phase, but we had 20 existing components already. Some examples of those: Our client onboarding, digital marketing, adviser compensation, operations, workflow, cash management and real-time margin to name but a few, I could go on. And it also includes our post-trade platforms as well. Now the importance here is it can work in many configurations. So you've heard already that we can deploy all this within our adviser workstation. But let me give you another example of what we do. So in October this year, we signed an agreement -- a partnership agreement with Salesforce, and we are putting those components as business components into the Salesforce app store, and we're exchanging data between Salesforce and Broadridge to power that experience. It is another way to win in the market and build our pipeline, which is going very well so far. We're also transforming the way we showcase what we do. So we have built a sandbox within the wealth platform. It allows our prospects at the earlier stage in the sales process to come in, touch, feel the platform and deploy their data. And you all know that using your data, your experiences is far more powerful than simply looking at a demo. It's great. It's embedded in our sales focus already, and it is a fantastic way to demo our platform. With that, it's a great time to see the platform now. We're going to see it right now. You can experience what our clients see, our advisers see and our prospects are seeing every day of the week. So with that, let's roll the video. [Presentation]

Fabulous, if I say so myself. That was a very quick tour of the wealth platform. And we showed you a few components there. Evidently, there are many, many more. So I saved you the hours of the demo there, but please come in and see if you want to. Now on to the 3 core themes we talked about earlier, personalizing investor experience, optimizing adviser productivity and digitizing operations with the wealth platform. I'm going to show you some powerful use cases now about how we deliver that, and we're going to drop into that now and go through those 3 presentations. So on to personalizing the investor experience, now our objective here, our need here is to help the advisers build deep, meaningful relationships with their customers. And the key to that is actually personalizing content and adding new products over time. It's the art of creating intrigue with personalized content and not just generic mailshots. Now this example here uses data science and AI. And this is the digital marketing capability that I talked about earlier. What it does is a nuanced analysis of all the information of the client. So their portfolio, they're holdings, their recent activities and their overall profile, and it curates a next recommendation of content. And that content comes from a very special source the largest live regulatory content in North America that we have. We then deliver that to the client on their preferred channel and then it's time for the sale, is then time for the adviser to follow up, knowing that, that content should have or will have piqued the interest of their client and then it's on to the next recommendation is powering the adviser's ability to generate business. Other key examples of what we're doing here, performance analytics, tax reporting, advisory self-service and suitability analytics. And one call out, I'm going to link back to Doug's presentation over there. Doug talked about the InFocus platform. The InFocus platform is digitizing a reimagined statement. We have embedded that already into the wealth platform. So anybody coming now to want that can get the InFocus capabilities. Now let's move to adviser productivity. And what's a good example of adviser productivity that we're powering Well, a great example is that desktop, the adviser workstation. We're bringing everything together in one place, our components, client components and third-party components with that data flowing seamlessly underneath. This sets us apart with a powerful and differentiated solution, very powerful. And now I'm going to jump to 3 other quick examples I think you will relate to. Account onboarding, you want to onboard a client if you're an adviser, really quickly and get their assets on board. Our focus with this highly specialized and new platform is to drive absolutely that fast time to market for onboarding. Securities-based lending, unlocking liquidity has become very important for advisers. We're doing that with that solution. It's very popular, and it's allowing our advisers to unlock liquidity and offer new products to their clients. And finally, billing, we have transformed billing for 2 major wealth firms, allowing them to transform how they build and equally and very importantly, give better transparency to their customer. Every component we have within the wealth platform boasts very strong value propositions. We've worked on them really hard. They either boost adviser productivity, they boost revenues or for the wealth firms themselves, they allow them to attract and retain key advisers. The final piece in the puzzle. Digitizing operations, pretty hot topic. Why is that? I mentioned earlier, cost-to-income challenges and this emergence of AI and the idea of [ our ] productivity is emerging. Our strategic positioning here is exceptional, if I say so myself. We have a brand-new ops dashboard. It's up here again. It's a brand-new piece of technology. It's a single pane view of your operations, but we haven't stopped there. Since the emergence of AI in the last 12 months, we have embedded tools within this that are now AI-enabled. We've put GPT engines into this. We're powering this going forward. So we have the most holistic solution in the market right now for this. It's also going to drive the growth of our BPO group. Our BPO group service today over 40 clients, and we will lead the industry in digitizing operations, driving efficiency and benchmarking industry performance, particularly with T+1 and potentially, as Tim mentioned, T+0 in the future. It all includes as well our post-trade capabilities, our new corporate actions capabilities, account transfers, reg reporting and our biggest platform, our settlements platform. This is a really exciting area for us because we are driving away and leading the way in digitizing operations for the industry. Now on to market positioning and trends. There's a lot of interest in the market. But I would say the competition is fairly fragmented. And I'm going to talk you through 4 archetypes here. First off, we have a cluster of Fintech start-ups. They are normally focused on a single use case to solve 1 problem, and they're potential partners for us going forward to put into our adviser workstation. Number two, are established firms, but whose sole focus is the front office, and they do not have capabilities in the middle to back like we have. And then you have these entrants, which are very interesting, coming to market typically with platforms from Europe and Asia and attempting to get into market in a very complex North American evolved space. And then finally, legacy providers. They have broad offerings but perhaps are preoccupied with other projects and other parts of the business or a technical transformation of their platforms. So given this landscape, we believe we have the offering that's the broadest, the deepest and also, we have the talent you have to have in this marketplace to win. That's us. I'll make 1 more point, probably quite a key point. Critically, our platform modernization is not ahead of us. No, no, no. It's already behind us. We have a proven track record in transformations. We have deep client relationships. Yes, we have healthy respect for the competition. But that said, we have the winning formula with our breadth, our depths and the talent that we bring to the table every day. We're now going to move to the marketplace. We talked earlier about being a $60 trillion assets under management market today. That's driven a lot of growth for our clients absolutely through those 3 areas we talked about. And we've also widened our access during this period of time. So the primary market is these full-service firms, the wirehouses, the nationals, the regionals, the online and direct broker dealers and the Canadian banks. And here, we can offer the full platform or components. So we have that whole model in play about transformation on your terms. We have lots of options to win. It's an $8 billion space. It's growing at 10% to 12% per year. We then move to independents and RIAs, a $3 billion market defined again by outsourced tech and op spend in the space. Here, we focus on the front office. And it's important because we really do indicate that RIAs will win share over the coming 3 years from the wirehouses. And then finally, private banks, a smaller but interesting space. Here, we offer the front-to-back solution or specialist solutions like the securities-based lending. So these 3 sectors represent a $12 billion market space. And we have ways to win for our 50-plus components and our strong front-to-back offerings. Pipeline, it's been growing very, very well over the last 18 months. Now we're live in market with our solutions. And I am pleased to say our pipeline currently stands north of $200 million. Our client approach is to find the use cases, the pain points they have, address revenues, reg compliance and cost-to-income challenges. We've been very strong in market in the last 12 months. We've been at industry events. We've had analyst briefings, and you saw earlier the industry recognition that we powered through. That sandbox, the ability to show and touch the platform in the early stages is powering what we're doing. And one thing I'm going to touch on now is we've deepened our relationship with partners. We now have 30-plus partners in our network. From a wealth lending network to the Salesforce partnership I mentioned earlier, that is creating new channels, new pipeline and new opportunities for us as we power this through. And in terms of engagements, we have strong engagements out there with firms who are looking for the entire suite. And with 50-plus components, each with great value propositions, we are targeting those very carefully and Chris and team are out there every day talking and pushing those forward. And as I pointed out, once we're in as a firm with 1 or 2 components, it is easy for us to add on with the integration layer. So we expect to build rapid momentum as we go through this. We are seen here as a very agile partner. Right. I'm going to bring this home now. Our go-to-market has driven pipeline of over $200 million. It is also powering the incremental $20 million to $30 million in annual sales value we expect to create from this wealth platform. And we're creating wins and opportunities for the 50-plus components, our partner network and the larger scale transformation opportunities we have in this space. So as I bring this all together now, my purpose today was to give you a deeper understanding of our capabilities, how we win and the marketplace. At the heart and purpose of our mission, we are modernizing wealth management with our solutions. Our wealth platform brings together all our assets in 1 place plus our existing capabilities and the new ones from our recent platform build phase. I said it before, I'm going to say it again. Our platform modernization is not ahead of us. It's already behind us, and we are powering our clients by personalizing investor experience with our solutions, optimizing our adviser productivity with our solutions and digitizing operations through this wealth platform. I'll leave you with this. What we have is truly powerful. And it's our mission now to maximize the value creation. Thank you. And with that, the next turn on the table is Tyler Derr. Tyler is our CTO; and Tyler is going to talk more about the technology transformation and the technology infrastructure we have. Thank you very much. [Presentation]

Good morning. I'm Tyler Derr, and I wanted to talk to you a little bit about bringing that video to life. If you think about that display of passion from our product management, our go-to-market and our engineering organizations, it's about customer pain points, and it's about how we're leveraging a modern architecture to really drive value. I joined Broadridge over 11 years ago, as Tim mentioned. First, as the Chief Technology in our GTO business, and it was really about bringing leverage to that segment. It was the first ever created role in technology. And then I took on a Chief Operations Officer role that took technology and architecture and then added client service and risk. I took on the enterprise CTO role in 2022 and now I'm responsible for cyber, our hosting platforms and now ICS engineering along with GTO. I've had a long career in financial services, 25 years. And the thing that really resonates with me of listening to Mike and Doug today -- my career is with asset managers like Oppenheimer Funds. And so I have a unique vantage point in the client pain points that they're trying to solve every day. Having said that, I'm really energized about being here today to talk to you about our vision. You heard our teams talking about it already and how we're going to really drive client retention, revenue generation but also bringing together how our technology organization is really becoming an asset and fueling this modern architecture and the growth that you heard from Mike, Doug and Tom. With that, let's dig into it. We're driving our growth with next-generation technology. Broadridge is truly a fintech leader. And you've heard that today, but let's talk about what that means. We serve a critical function in the financial services marketplace. And as you can see here, look, our client is dependent upon us for security, the consistency and the innovation that they want mutualized and our scale and global expertise that allow us to deliver client retention and top line revenue growth. Our leadership position we established as a result of our commitment to staying ahead of industry needs, that we're putting the tech into fintech. Over the last several years, we've made foundational investments, as Tom just mentioned, that basically underpin our market presence. Our strategy is on 4 key pillars: Data security, architecture, the use of data and then along with that, artificial intelligence. Through our execution across these pillars, we are helping clients transform their businesses. In my role as the CTO in over the last 1.5 years, I've had the opportunity and pleasure to meet with our clients. and to hear my counterparts in their organizations talking about what they expect from us. And what they're looking for is that we can play a critical role in how they evolve and how they transform. They want a platform that's open and could be called via services. They want one that's well defined with data and that it's got market-leading security riding on top of it. And they also want to partner that can mutualize innovation and that we bring that to the table. We're well positioned across these needs, and it's reflected really in our critical services that are entrusted to us by the industry. So let's go into this a bit deeper. Broadridge is a scaled fintech leader serving the industry with modern technology, and you heard on that video, domain expertise. We understand how the market operates. As you heard from previous speakers today, we provide mission-critical systems, supporting the global financial system. We count 28 of 29 FSB recognized globally systemic important banks as our clients. Now what does that mean? That's both a privilege and it's a tremendous responsibility. Our position at the center of our vast network enables us to maximize value for our clients. And how does that feel? Well, during our development process, we're able to gain feedback from all of those constituents, all of our partners and key industry players and our clients, and we can iterate with them on solutions. This connectivity in this broad market allows us to build mutualize and therefore, more cost-effective solutions. For example, in our hosting centers, where the focus is really on risk management and operations that we can take things like cyber, disaster recovery, PCI as really a shared expense across our client base. We serve our clients with industry-leading scale. Our clients depend upon us for our global operations, our talent and then once again, that domain expertise. We deploy over 6,000 people in 17 countries, and we manage data centers across all major financial markets. This allows us to meet the global needs of our clients, as they are constantly delivering with changing needs and regulations, ever-growing cyber risk and an evolving technology landscape that they're trying to transform. Since our last Investor Day, we've gone live on the public cloud with 150 critical products and services. As a fintech leader, we intend to continue to bring new and existing products into the cloud. This will help us support our sales growth, reduce the time between closing a sale and realizing revenue and improving the availability and the efficiency of our products. And then finally, we're taking a lead when it comes to innovation and AI. You've heard a lot about that today. One thing is our patent portfolio is large, and it continues to grow. Every day, our product and engineering teams are working to invent patent and once again, commercialize innovative new products that solve industry pain points and respond to real customer needs. It's about being commercial. We also have over 140 services that we've built out. As Tom talked about that wealth platform, and it's all across Broadridge. We may get our products more accessible to clients in a very secure way that protects our intellectual property. And in AI, we're moving quickly. We've brought many generative AI products to market in the last 6 months. And there are more in the pipeline. It's about getting commercial, those ideas to commercial software. Internally, we're augmenting our associates, especially our engineers with AI tools to make their work more powerful. It's that deep domain expertise that we really want to enhance and make their time more efficient. And now that you've heard where we're at today, I want to tell you a little bit about where we're going. As I stated, we're putting a tech into fintech. The ethos of our technology strategy be summed up simply in the words you see on the left. And what does that really mean? We're leading in data security. Our position at the center of a highly regulated financial services industry gives us a truly unique advantage and a perspective, we are constantly interacting and learning from our clients, regulators to keep up with the latest industry trends and standards. Those conversations inform our product and technology decisions that allow us to continually meet our client needs. We're building the architecture based upon a future cloud first, as I mentioned, data-centric and services-based environment. Our technology platforms are now more flexible to deploy more cost-efficient and easier to integrate with, as I stated, meeting with those counterparts at our clients, that's what they're looking for, and we can scale with them over time. We're also unlocking the power of data sitting at the center of mission-critical capital markets infrastructure gives us vast connectivity and the ability to be the hub for industry data. We are leveraging this to rapidly deliver innovative products and also much better client experiences. And finally, we're harnessing the power of artificial intelligence as an enabler for growth. It's also an efficiency play. But leveraging that architecture allows us to innovate safely and also deliver real commercial value for clients. Let's walk through each one of these points. We stay at the vanguard of security by constantly learning from clients and regulators. What does that mean? We conduct over 200 client reviews annually. Our customers talking to us about policies, practices and zero trust security controls. These learnings allow us to better understand the challenges and the risk facing the industry, and we pass those benefits on those shared experiences in the form of market-leading security practices. It gives us a competitive advantage and enables us to deliver SecOps at scale. Furthermore, our ongoing engagement across regulators across the world keep us and our fingers on the pulse of our practices, emerging regulations and also implement these into our development practices. Let's talk about architecture. We are investing in a modern architecture that is cloud first, data-centric and services based. You hear Tom say that investment is really behind us. Since our last Investor Day, we've made significant investments to modernize to unlock a number of business drivers. First, consistency of data across the platform can be leveraged as an asset, enhancing flexibility and also increasing cost efficiency. Second, a standardized architecture enables us to build solutions that can grow with our clients. And that's an important element once again, from talking to my peers at our customer base. And we are delivering scalability that our clients want. And third, we continue to make integration easier across Broadridge, industry partners and client applications. It's about the flexibility of the platform. Let's talk about data. We are unlocking data to inform decisions, accelerate innovation and really have a competitive differentiation as a result of it. It's at the heart of really our innovation. And through that harmonize data model, and you can see that we connect thousands of industry participants from consumers to institutions in real time. In this process, we're unlocking data's potential to enhance decision-making, drive product development and make our competitive differentiation in the market. Again, it's through our connectivity at the center of these mission-critical capital markets infrastructure that positions Broadridge to be the hub for industry data. Not only are we harnessing the connectivity to deliver innovative products and a better customer experience, but we're doing so in real time. The scope and the speed -- as Doug mentioned, it took decades to build this network. It's an ever-increasing premium that our clients place on data. It's a big, big unlock for us. And because of that, let's talk a little bit about AI. That foundation of data really powers how we think about AI and how our position can be leveraged as a result of that. We are taking a multipronged approach to harnessing AI and large language models as we look to power our associates, build next-generation capabilities, and also protect our clients and Broadridge's data privacy and IP. Let's start with the commercial opportunities. As we continue to integrate those AI-based solutions into our products, Vijay mentioned earlier, we launched BondGPT, a natural language interface powered by GPT4. In response to complex bond-related questions and assist users in identifying corporate bonds that fit their trading needs. Once again, it's about taking technology and making it commercial solving a client pain point. We also recently launched distribution AI and distribution insights platform, and that new tool acts as a digital analyst for asset managers, enabling natural language interrogation of thousands of specialist proprietary research documents, focused on themes and trends impacting the asset management industry. The solution is now live with over 600 funds. We're enhancing the power of our business units. And with that, we've launched an internal BR wide AI platform. which is allowing our business units that Tom, Mike and Doug Drive to innovate on their customized commercial AI application needs on top of their existing products. We have powered associates internally with safe access to large language models. SaaS models like ChatGPT and OpenAI and privately hosted models like Llama 2. We're excited about the opportunity to further enhance our overall productivity, and we embed AI across our products and across the entire platform. We're modernizing product development, leveraging large language models. So internally, you think about documentation, test cases and writing code, making our deep expertise, which is really the value of our associates even more valuable to us and to our clients. And finally, we're intensely focused on protecting IP and adhering to data privacy standards. As part of that focus, we're embedding automated data and IP controls to enforce clear usage guidelines for compliance in security. Now that you've heard about the key pillars of our technology strategy, I'd like to touch upon a few real-world examples and talk about clients and the broader experience they have working with Broadridge. Doug mentioned earlier about Wealth InFocus. It's transforming and creating a truly customer-centric experience and approach leveraging our technology platform. After adjusting really account data on the back end, we can then consolidate and bring the most important relevant information, along with analytics and action items for the investor. This creates a holistic experience, making it easier for investors to consume better understand account details and provide advisers with new opportunities to reinforce their value and communicate directly with their clients. Cetera was one of our first go-live clients in Wealth InFocus, and the feedback we received has been tremendous. 78% of Cetera's pilot investors said Wealth InFocus provides a better digital experience and 88% said they'd like to receive Wealth InFocus as an ongoing communication. From a technology perspective, we're treating InFocus as a centralized, secure and cost-efficient platform, as Doug mentioned earlier, transforming all communication experiences emanating from our governance franchise. We continue to roll out the product to new clients and believe it's the future of investor communications. The second one is OpsGBT. It's really supercharging operations. I'm going to give you like a bit of a sneak preview. If you think about the work that we've done in the pipeline that we've built around leveraging AI, it acts a powerful, knowledgeable assistance to back-office operations departments. It allows them to better effectively manage post-trade interactions. It's something that's using a harmonized data model from our global multi-asset post-trade systems. We're driving a step function change in operational productivity while reducing trade risk. Why is it important now? As we enter a T1 environment, it will be even more important now than ever getting real-time visibility into trade risk and resolution actions. OpsGPT provides these natural language and contacts allowing us to enrich, analyze and contextualize data for our clients. We couldn't be more excited about how this is going to transform clients' operations. In conclusion, I want to reiterate really 3 main points. We're a true fintech leader, serving the majority of the world's globally systemic important banks with mission-critical capabilities they are constantly innovating. And we do this with our unmatched scale and expertise. Our scale and deep client relationships inform our technology evolution and strategy. Our investments in a modern architecture are making our products more consumable, cost-effective and scalable. And as you've heard many client examples today, I just want to give you a few more that our message is clear, our clients are really at the center of what we do. You heard that even on the video. We've made investments that have positioned us as an industry leader today, and we'll continue to create lasting value for our clients, for the industry and for Broadridge for years to come. Thank you for your time. Next, we're going to bring up Chris and Dipti to talk about our deep client relationships. And in fact, as Tim mentioned, the fourth franchise, but we're going to take a quick 10-minute break. Thank you. [Break]

Welcome back. Thanks so much for being here. I'm thrilled that we get to start our section with a testimonial from one of our clients. You heard David Holleran, Chief Operating Officer of HilltopSecurities, talk about how partnering with Broadridge leads to so many good things at Hilltop. We are very flattered by that. Good morning, everyone. I'm Chris Perry, President of Broadridge. I spent over 30 years in financial services and technology. The first 10 is a practitioner then 20 years driving growth in the fintech space. The last 10 here at Broadridge delivering record sales, 7 out of the last 10 years. Well, I'm delighted to be here with you today. You're some of our most important stakeholders and the opportunity to share our vision and how we will execute on behalf of our shareholders is really a privilege. Earlier, you heard Tim talk about the incredible growth opportunity that we have. Then our franchise leaders, Doug, Mike, Tom and Vijay shared how we continually differentiate ourselves. And I was pumped up and I work with them every day. And now our CMO, Dipti Kachru and I, will bring those threads together by telling you about how we will expand and deepen our client relationships every day. And how over the last decade, we've created an unparalleled client franchise, our fourth franchise. The video that opened the segment really sets the tone for the next 15 minutes. And we're excited to show you how the power of our client franchise is an advantage for our clients, our shareholders, and a key differentiator from our competitors. But first, let me introduce you to Dipti Kachru, our Global Chief Marketing Officer. Dipti joined us from JPMorgan a little less than 2 years ago. A business leader with over 2 decades of experience in financial services across asset and wealth management, a perfect add for us. The client insights that Tim talked about. Dipti is my partner and go-to-market. She plays a pivotal role in powering our brand globally, amplifying our reputation, and she works in concert with our sales and account teams so that we can deliver programs that drive demand, create client retention. Dipti?

Thank you, Chris. It's an absolute honor to be here today. I got to know Broadridge during my tenure at JPMorgan, and that really shaped my enthusiasm in joining the company and my true belief in its bright future. Also, since I've joined over the last 2 years, I've gained an even deeper appreciation for the breadth of our capabilities and the impact we have in the industry, a lot of which you're hearing today. As CMO, I also get this unique lens into understanding why our clients choose us. This is what shapes our go-to-market strategy, our messaging, our brand, a lot of which you'll hear about today. So let's jump right in. As Chris mentioned, today we're focused on telling you about our client franchise and why it's such a core part of our go-to-market strategy and a very important element that drives our success. We'll give you a view into our expansive established and diversified client place globally and the opportunity that unlocks for us as we strive for more growth. You'll hear about what shapes our value proposition, our incredibly strong value proposition in the market. The role of our trusted brand, the breadth of our capabilities and our unmatched domain expertise that then creates this differentiation. And lastly, you'll hear about how the market continues to have expansive growth opportunity for us across markets, regions, products and segments. In our growth, what you'll see is our drivers have really come from our ability to drive this deepening and this client expansion. It's what's fueled our growth in the last decade and what's very core to our success in the future. I have no doubt it's going to give you the confidence in our ability to deliver on our sales goals and our growth goals for the next 3 years.

We operate a truly global fintech. We serve clients in over 100 countries. And while we have a concentration footprint here in New York, places like London, Singapore, the places you'd expect, Hong Kong, Paris, we have an immense amount of opportunity to grow this business around the world. When you look at this in the context of the $60 billion opportunity Tim mentioned, you see the powerful position that Broadridge has. And this $60 billion opportunity is growing at a rate of 7% to 9% as more companies look to move from vended to unvended functions. This just makes the opportunity even more compelling. Now I'm proud to say that we have long-standing and proven relationships with the most influential and essential firms worldwide. This fuels our ability to expand and deepen all those existing relationships and prospect in the most viable local markets around the world to grow our client list. Across the breadth and depth of all the services that we offer, our clients include the top 10 global corporate investment banks. 10 of the largest global wealth management firms including the largest wealth management firm on the planet UBS, the top 10 asset managers and the 6 largest Canadian banks. In fact, we serve 9 of the 10 custody banks and actually, we're working every day to try to get that [ attempt ] one as a client. Many of these firms make up that $60 billion opportunity and are already our clients. And those relationships span the globe and run across multiple segments and services. Suffice it to say, we cover global markets on the sell side and the buy side and we continue to grow the customer base and deepen existing relationships every day. Given our current recurring revenue of $4 billion, we are clearly set up for success on this path. Now what adds to this excitement and our effectiveness every day is that the nature of our interactions and relationships at these firms has expanded over the years. We've always valued our connections to the operations executives and with capabilities in liquidity, trading digital communications, wealth management and truly transformational platforms like you've heard about from the team today. And what you experienced like working with COOs that David Holleran said, many of the CTOs we work with now, we often are working with CMOs in the wealth and focus and digital experience. And in some cases, we're even working with the CEOs. That is a big difference for our company today. As our capabilities have expanded, so has our ability to engage and serve various functions across our clients' organizations, reinforcing our shift from vendor to a long-term, trusted and valued partner. Now you can see on this slide here, really important. This combination has helped Broadridge the #3 position on IDC's top 100 FinTech rankings and further demonstrates why our client franchise is so valuable and why we are a true fintech.

As Chris mentioned, we have an expansive and diversified base of clients that we're focused on extending and deepening. And in this effort, our strong value proposition is a driver of differentiation. I want to start with our trusted brand. The Broadridge brand leads the market in awareness and consideration. And it's a matter of great pride for us. We're well positioned as a market leader and our reputation and credibility comes from our proven track record of delivery and innovation, both of which you heard a lot about in the presentations previously. What we do is essential and mission-critical. And our clients, not surprisingly, want a partner that's trusted and proven. A recent global brand study showed that not only is the Broadridge brand top of mind for our competitors were also highly associated with the 5 things that clients tell us drives choice. This value proposition of being trusted and transformative is what drives demand and gives us a differentiation. And this helps us compete in a crowded marketplace, and it helps us win against both incumbents, large incumbents as well as the newer fintechs. Now at the heart of this brand equity and consideration is our value proposition. And this comes from our ability to bring our deep domain expertise and the breadth of our capabilities together in service of our clients. This is what we call our One Broadridge Advantage. It's really about the sum of our parts, if you think about it. Because when our clients choose us, they're choosing us for more than just one product or one solution. What they're getting is our governance and regulatory expertise that's unparalleled. What they're benefiting from is our scale and our network that connects all market participants. We know they feel confident in our secure and resilient systems knowing that the world's largest financial institutions, trust and rely on us every single day. You heard Tyler talk about this. With Broadridge, they're also getting the intelligence and insights that can come from our vantage point across the financial world. And when you bring that along with our continued investments in research, product development and innovation, our clients know they can rely on us as a partner to deliver on changing market needs and as their needs evolve and they need more support. These are hard-earned collective benefits that naturally foster long-term multiproduct relationships. But don't take our word for it. Let's share what one of our global clients have to say about their partnership with Broadridge. [Presentation]

These -- our clients' own words are the greatest endorsement of our value proposition. And it comes from a global client who's been with us for more than 10 years. The relationship started as a post-trade processing relationship. And over time, the partnership has grown to over 17 different solutions with some of our most innovative products. Now another very important part of our value proposition, which fuels these long-term relationships is that we make it easy for our clients to do more with us. Our scale, our experience, our entrenched relationships all reduce friction in what's a fairly complex buying process. As you can imagine, vendor risk is top of mind for our clients. They're highly regulated and they need suppliers who are compliant, resilient and financially sound. This is where Broadridge shines. We typically have fully executed master services agreements already in place. We carry a long list of industry certifications across information, security, cyber, a lot of what you heard Tyler talk about. This includes third-party reviews of our systems and services. We have established connectivity with a lot of these clients for their data and their systems, which makes the onboarding process easier. And given our scale of relationship with a lot of these clients were often designated as top-tier vendors or strategic partners, a designation that comes from sourcing that we take great pride in. It's hard earned. And it often is important when you go through a vendor selection process. Now at the end of the day, I'm pleased to say this unique value proposition delivers and is a substantial contributor to our growth. Let's look at the chart here. This shows you how our relationship with our top 20 clients has grown since 2019. We've grown 32% from a revenue perspective and 27% when you think about the product groupings that we've added on average with each client. What's as exciting is that given our expansive suite of solutions, the runway to grow with each of these clients is enormous, and we continue to focus on deepening with them. And in that context, our deepening and our continued investments also focus on bringing our value proposition to market in a more amplified way. We're investing in our brand, we're investing in our storytelling, and we're working very closely with our sales and our account management teams in ensuring our clients know about our capabilities, especially as we add new capabilities to our portfolio and we grow in global markets. This strong effort and market position is fueled by 400-plus sales team members globally who cover us from a segment and a product perspective. Our proprietary research, our thought leadership is widely received by industry analysts, by our clients and by the media. Hopefully, you also some of those accolades on the screen during the break. We've also invested in building a strong curated digital experience. The sales -- the buying behavior of our clients has evolved. We see a lot more activity online and we have the digital ecosystem to support that, making us easy to find, easy to learn about and easy to do business with. And lastly, by having a really active role in industry forums like SIFMA and Nicsa, we're able to reinforce the value we bring to the industry and the work we're doing in driving it further.

This is why we are so confident in our ability to grow. We have the relationships. We have an incredible suite of solutions, a powerful value prop and a huge market opportunity. As you see here on this slide, we have substantial growth opportunities in every one of the market segments. And our client franchise is key to powering our success from the thousands of clients who choose to work with us, to stay with us and grow with us to the new prospects around the world who choose proven capabilities from a solid public global fintech leader. With $4 billion in recurring revenue today, have a lot of runway on a path to $60 billion. Now I want to call out 1 growth area in particular. When we spoke to all of you 3 years ago, we are at the early stages of turning our North American opportunity into a global opportunity. At that point, in 2020, our international business was just 4% of Broadridge revenues. Today, it's over 7% and we're a much larger company with revenues of $434 million. Our international business now serves over 1,300 clients, up from just 800 in 2020. We've grown through the mix of organic initiatives and acquisitions. Notably, with our acquisition of Itiviti, which we now call Broadridge Trading and Connectivity Solutions, we've extended our capabilities in capital markets across asset classes and the trade life cycle that Vijay talked about. And very importantly, it's expanded our presence in EMEA and APAC and in clients, associates and offices in really exciting new markets for us: Italy, France, Spain, Sweden, the Nordics, just to name a few. With our strength in the North American market, and our commitment to global expansion, I think you can see where the market map continues to grow. We have a thoughtfully orchestrated go-to-market playbook. It acts as an engine that nourishes this incredible client franchise. Our relationship management model covers our clients very deeply at a segment level, wealth management, asset management, capital markets and at a product level and at the account level, which is incredibly important. This 3-dimensional coverage model incorporates great expertise from those segment and product teams. This then the account teams are building powerful relationships every day. They're deeply understanding our client strategies. We meet our clients' needs on both the regulatory and are ready for next basis. That's the innovation dimension. As a result, our clients choose to stay with us, grow with us and profit with us. We are very, very proud of our 98% client revenue retention rate. Not many companies in our industry can say that 98% retention. On average, companies can have churn rates that is biggest 10% or 20%. On top of this extraordinary retention rate, we regularly secure long-term contracts with even more revenue due to cross-selling, upselling CPIs, these are tools that we have in our coffer. Many companies use this expression, land and expand. You've heard land and expand. At Broadridge, we landed a long time ago, and we just keep expanding our relationships and partnerships every day.

A key element of that relationship management playbook and that retention rate that Chris just talked about is our relentless focus on client satisfaction. Our approach to ensuring client satisfaction is anchored in a rigorous and comprehensive Net Promoter Score program, and client success program. At Broadridge, we take client satisfaction very seriously. All our associates have part of their compensation tied to our client satisfaction goals whether you work on the production floor, you're developing our technology team, CEO or me were committed. We've also been very intentional in creating client listening posts Tyler talked about the 200-plus client reviews that we do. And this is really important, whether that's through operations and relationship reviews or it's through client advisory panels and steering committees. Being able to understand what's on top of our clients' mind helps us shape our product road map. It helps us tune into exactly the areas of focus our clients need us to. It helps us anticipate our clients' needs and as importantly, deliver personalized value. Our track record and ability to delight our clients year-over-year has driven really strong outcomes. We all know happy clients buy more and make great references, which is often the CMO's dream to have client references, as you can imagine. Now Chris and I want to talk to you and give you another example of how our client focus drives results. What you see here is a view of our relationship with 1 of our largest with 1 of the largest global investment banks. Over the last 5 years, we've grown our relationship with them by over 50%. And as the chart shows, given the steady increase and expansion in the products we serve them with, this relationship now is across businesses and functions and has evolved to be much more strategic in nature. They see us as a trusted partner. Chris?

Yes. I have personally been very closely involved with the nurturing and deepening of this client relationship. For corporate governance, they use us for proxy, transfer agency, virtual shareholder meeting services. In their wealth business, they use us for securities cash comp and securities class actions and noncash compensation. More recently, we're helping them transform their investor communications platform with a digital center of excellence that we're working with them to build. Now the most important thing for me anyway, is our account team tells me that we have a lot more runway as we help this particular client on their own ambition and own transformational goals. This is the power of our relationships. So in closing, let me say that our client franchise is key to our success, and we are well positioned to win. Given our long-standing relationships with these firms, you saw who they all were. Our track record of delivering for them, and of course, the $60 billion market opportunity, it's easy to see a path to even more growth. As Dipti stated at the top of our segment, our goal today was to show you how we will build the power of this client franchise into the next level and why that is the key to our success. We showed you how our expansive and established global network of client relationships unlocks that growth. We discussed how our value proposition, how our trusted brand, unmatched domain expertise, our knowledge and expensive suite of innovative solutions, all come together as a big differentiating advantage. And we viewed how our proven playbook helps us capture immense growth opportunity that's ahead of us. In our industry, we are truly trusted and transformative, and this gives our clients confidence in Broadridge every day. This client confidence has been key to our sales performance in the last decade and should give all of you confidence in our ability to deliver our growth goals for the next 3 years and as Tim said, very far into the future. In a moment, you're going to hear from our terrific CFO, Edmund Reese. And he's going to show you how our fixation on serving and delivering consistent, great service translates into consistent revenue growth and returns that are terrific for Broadridge shareholders. But before we do that, I think it's only appropriate that the last words from Dipti and Chris in go-to market comes from one of our clients, right, where we started, a different client, another win-back client. Here with Harry Temkin, Chief Digital Officer at Drive wealth, a very fast-growing digital broker recently said about Broadridge. Thank you. [Presentation]

Thank you, Chris, and thank you, Dipti. And I always do enjoy hearing from our clients. Good morning, everyone, and there's 5 more minutes. So it still is morning. Good morning, everyone. I -- as Tim said earlier, I joined 3 years ago right at the last Investor Day. And I remember in those early months being asked about my focus, my immediate focus is the new CFO for Broadridge. And I've been mingling with you guys and talking to many of you, I recognize many of the faces in the audience today. And so I hope you remember my response during that time, my response was execute the financial model, create investment capacity drive margin expansion, be the steward of our capital. And with the success that we've had through fiscal year '23, right on track for 100% free cash flow conversion in fiscal year '24, we are even more focused and I am even more focused on decisioning the right high-return investments that will help drive sustainable long-term growth for us. My objective today is to take what you just heard from our leadership team and to translate that into financial performance expectations. Why do we expect increased investor participation to be at a mid- to high single-digit rate, in line with the historical levels of growth that we had. Why do you believe that the capital markets franchise growth will be aligned with our historical objectives? Why do you believe that your investment in the wealth management platform positions wealth management in that franchise for continued growth? These are questions I often hear, and hopefully, you heard the answer to them today. So my key message is today pick up right where we left off at the last Investor Day. Broadridge has a strong financial model that generates sustainable recurring revenue growth and steady and consistent adjusted EPS growth. The operating leverage and free cash flow in our business allows us to continue to have a balanced capital allocation policy, investing for growth, and returning capital back to shareholders. And moving forward, we are focused on high return growth investments that increase the ROIC for the enterprise moving forward. And as a result, we see a path to continued steady and consistent growth over the next 3 years and beyond fiscal year '26. So with that, let's begin and I'll begin with the financial model. The Broadridge business and financial model is a simple one. As I just said, it's anchored in driving sustainable long-term growth. In order to accomplish that, it begins with 7% to 9% recurring revenue growth, rooted in sales and rooted in strong revenue retention. We are an organic growth company and our organic growth is supplemented by high-return targeted tuck-in M&A that meet our strategic and financial criteria. The operating leverage in our business allows us to invest in digital and technology products that are also high return and help us sustain that revenue growth and help us drive steady 8% to 12% adjusted EPS growth. And that's part of our objective to translate that earnings growth into high free cash flow so that we can invest in growth-oriented investments and return capital to shareholders. And we strongly believe that that's a winning formula for shareholders, driving top quartile S&P shareholder returns. And when you look over the last 10 years, this is an amazing chart, it shows that Broadridge has had significant earnings growth moving from just under $2 a share to now over $7 per share in fiscal year '23. I think Tim said it earlier. That's a 14% CAGR. And over that same time period, the dividend has grown in line with earnings at a 45% payout ratio and that has resulted in an average dividend yield of 2%. So the combination of that earnings growth in that consistent capital return to shareholders has resulted in a compounding TSR business. With annualized total shareholder returns of 22%, outpacing the S&P over that time period of 13%. The business has been resilient and the drivers of growth have been stable, and that has given us the confidence to communicate specific top line and bottom line 3-year objectives. And when you look at the performance over the last 3-year cycles, you see 14% to 27% recurring revenue growth right in line or actually above our objectives, primarily organic right in line with the objectives. You look at the fiscal '20 to '23 time period and growth was higher at 11% recurring revenue growth. As you know, there was nearly a 3-point contribution from our acquisition of Itiviti during that time. So we have continued to be able to deliver on the objectives that we've set out steadily increasing margins in this most recent time period, 77 basis points of margin expansion over the last 3 years and driving adjusted EPS growth at a remarkably consistent, 12%. Now over the last 10 years, we've increased total revenue by about $3.6 billion and they are now a $6 billion total revenue company. As you think about the growth going forward, it really begins with recurring revenue, which is now 66% of total revenue and reached $4 billion in fiscal year '23. And you look over the last 10 years, we've delivered recurring revenue growth that was right in line with our organic and our total recurring revenue objectives. And we expect to sustain that level over the next 3 years through fiscal 2026. So over the next few slides, I am going to describe for you the drivers of recurring revenue growth and give you some insight into why we have confidence in the long-term outlook. So I've said it before that our ability to be able to sign new clients and sell new products to existing clients, as Chris was just talking about, is the life blood of our growth. And you can see from this slide that the biggest driver to recurring revenue growth has been converting new sales to revenue. This is a remarkable chart and that shows the consistent contribution to recurring revenue growth from converting new sales, 6 points or higher over the last 10 years. And what does that -- our ability to generate new sales and convert those sales to revenue has been remarkably stable through changing macro environments through a global pandemic, through different competitive landscapes as well. And you heard from Tim, Chris, Doug, all of the leaders talked about what's on this slide. Companies are spending $60 billion on technology solutions that are directly addressable by the diverse set of products and solutions that Broadridge offers. And that market opportunity is benefiting from continued growth in the investments there. It's also benefiting from displacing in-house proprietary solutions in transitioning that to scale third-party providers. And so the portion of the market that is served by the third-party providers is growing at an even faster high single-digit rate. So there's a long runway for continued close sales here. And our track record of taking that market opportunity and converting it to close sales demonstrates tangible growth. You looked 10 years ago, and we had just over $100 million in closed sales. We think about fiscal '24 and achieving the midpoint of our guidance would suggest a 9% CAGR. That closed sales growth, in turn, allows us to replenish the revenue backlog and sustain that 7% to 9% recurring revenue growth that I just mentioned. In fiscal '23, the backlog -- revenue backlog was $400 million, and that was 10% of recurring revenue growth, and that gives us a high degree of visibility into our top line growth. We also have a long track record of being able to retain the clients once we've closed the sale. So I'll continue to show this very boring chart that's essentially a flat line, but it does demonstrate our ability each year to consistently retain 97% to 98% of our recurring revenue retention over a 10-year period. So what I just discussed was what we call net new business. And it's key to understand that as you think about the drivers of growth for Broadridge. Let me continue to construct the recurring revenue growth with a deeper analysis into internal growth, which is the incremental revenue that you get from existing customers, and it's primarily driven by things you heard about today by position growth, by trading volumes, by float income. The largest component to internal growth has been positioned growth, measuring the holders of equity and fund solutions in our overall business, and it's a key performance of the -- key performance indicator for the regulatory business that Doug was talking about earlier. You look at this chart, and prior to the COVID time period, the contribution from internal growth was 2 points to recurring revenue growth. And over that time period, the average position growth, as you heard earlier, was 7%, driven by the trends that Doug and Mike talked about earlier. Now during the pandemic, the trends driving increasing investor participation accelerated and the average position growth doubled to 14%. And at the same time, the Federal Reserve was tightening rates drove a sharp increase in float income for us, in interest and float income. So the combination of those 2 things drove higher internal growth, 4 points to overall recurring revenue retention. Look at the right-hand side of this slide, as we look ahead to '24 to '26 our fiscal year, we anticipate 2 to 3 points of contribution from internal growth. That's at or above the pre-pandemic levels that we have here. And our assumptions in that internal growth include position growth at the mid- to high single-digit level. It includes no float income for '25 and '26. And lower concessions a modest uptick in pricing with CPI rolling through the portfolio here. So summing up the components of recurring revenue growth. We expect the contribution from closed sales to revenue to continue to be at a steady 5 to 7 points as we continue to penetrate the large and growing market opportunity and displace in-house solutions and bring them onto our platform with steady revenue retention at 98%. And as I just said, we expect internal growth to contribute 2 to 3 points, driven by the ongoing secular trends that increase investor participation and drive position growth, and our continued pricing actions to be able to drive that. Together, this equates to 5% to 8% organic recurring revenue growth. And as I noted earlier, M&A is a part of our long-term strategy for growth, high-return, tuck-in M&A plays an important part. And the contribution from M&A can vary year-to-year. But as we look over the 3-year time period, we should see up to an additional 2 points of contribution driving total recurring revenue growth to be at 7% to 9%. So I'll complete the revenue discussion and briefly touch on event-driven revenue. So event-driven revenue continues to be an important part of our overall regulatory offering as we support corporate issuers as we support mutual funds within proxy elections, mergers, contest other corporate actions. Those events are episodic. They're difficult to predict. But over time, they should grow in line with equity and fund position growth. In fiscal '24, we anticipate $230 million to $250 million in the event-driven revenue. And I'd expect similar levels over the '25 to '26 time period. That's right in line with our 7-year historical objectives. And we have no assumption about a major fund complex going to proxy during that time. So moving past revenues. Consistent investment continues to be a key component of our financial model and our strategy for growth, both near term and long-term growth. Each year, we have a number of high-return investment opportunities, both P&L and organic that allow us to sustain that high level of recurring revenue growth. It supports the client retention and it help us maintain our modern technology infrastructure that Tyler just went through. Now our P&L efforts to increase the distribution efforts that Chris just mentioned and enhance our products, they normally generate revenue over the short to medium time frame, but we also make long-term investments, and you heard Vijay talk about the distributed ledger repo. That now has over $50 billion in notional value per day on the platform, and we'll look to sustain that over a longer-term horizon. Our organic capital investments are tied to client contracts as we, again, move them from their in-house proprietary systems to our wealth and trading platforms. And these investments typically generate revenue in the 6- to 18-month time period. Now the OpEx P&L investments, they impact and lower our margins, but we do have the ability to ramp up or ramp down based on the performance that we see in the year. And most importantly, we have a long history of being able to fund investments while still expanding margins. And that really takes me to my next page. Even after absorbing investments, Broadridge has a long and consistent track record of being able to drive margin expansion. You look over the last 10 years, and we have expanded margins in each and every year, on average during that time period, 80 basis points of average annual margin expansion, above the 50 basis points objective. Now over the past 3 years, our reported margins have been impacted by 2 items that have an immaterial impact on earnings. So let me hit on those 2. First is the negative impact of higher postage rates. Postage is the primary component of pass-through distribution revenue for Broadridge. And over the past 3 years, the U.S. Postal Service has been increasing postal rates to offset lower volumes and offset inflation. And what that has done is elevate distribution revenue, but lower our reported margins by 110 basis points. Second is float income. Float income has a positive impact on our margins. But it really offsets the increase in interest expense that we have on our variable debt. So again, an immaterial impact to earnings. Over the last 3 years, float income together has contributed over 50 basis points, primarily driven by the aggressive rate tightening cycle by the Fed in fiscal year '23. So the net impact on reported margins from those 2 items was 60 basis points of dilution on margin. And I view that detail as noise and a distraction from the fact that the underlying margins have expanded above 50 basis points in each of those last 3 years. And looking ahead to the next 3-year cycle, we anticipate that the postal rate increase on distribution revenue will continue to be a headwind on the reported margins. We expect that the margin contribution from float income will either flatten out or actually become a headwind as the rate tightening cycle comes to an end. And as usual, I'll update you as we go along. Most importantly, when you strip out those 2 impacts, we continue to expect the same 50 basis points of underlying margin expansion right in line with our historical objectives. Our economic model is 50 basis points of margin expansion, and we continue to see a long runway to deliver operating leverage in the business. The natural scale benefit in both our ICS and our GTO business as we bring on new sales at higher incremental margins would typically contribute 50 to 70 basis points of margin expansion in a year. Additionally, you heard about the digital revenue, additionally higher-margin digital revenue, both in the customer communications business and in our regulatory business, can contribute 20 to 30 basis points in the typical year. And finally, the continued disciplined expense management. Over the last 3 years alone, we've rightsized our real estate footprint. We've realigned our businesses and management teams, and we've been able to find efficiency in the technology costs. And those factors actually help offset inflation impacts and adverse FX headwinds that we saw during the time period. The important point is that we see a clear path to continue growing even more profitably with high confidence in the opportunity to expand margins over the next 3 years and beyond. Those levers allow us to fund investments, expand margins and deliver earnings right in line with our objectives. And our objectives include converting 100% of those earnings into free cash flow. We are a capital-light business and we've typically generated strong free cash flow. What the chart shows is that in '14 to '19 time frame, we had more inorganic investment. We're focused on high-return, tuck-in M&A to strengthen our product portfolio and to bring in technology, talent and expertise. Internal development was lower, and so free cash flow was above 100%. For the fiscal '20 to '23 time period, we saw elevated investments and lower free cash flow conversion as we build out the wealth platform that Tom talked about and enhanced the post-trade capabilities that Vijay took us through earlier today. Now since the second quarter of fiscal '23, so our Q2 '23, there was a significant drop in the amount of client platform investment. And actually, in our most recent earnings call, we demonstrated trailing 12 months free cash flow conversion of 103%. As we look forward for '24 to '26, we expect free cash flow of approximately 100%. And as a growth company, that level of free cash flow allows us to invest to sustain that 7% to 9% recurring revenue growth at returns that are accretive to the enterprise. Again, after organic investment, the priority in our capital allocation policy is our commitment to the dividend. And this slide again shows that we have a strong dividend that grows in line with earnings. It was said earlier that for 11 of the past 12 years, we had a double-digit increase in dividend growth, and we will continue to target a dividend payout ratio of 45%. So our capital allocation model is, again, balanced between making growth-oriented investments and returning capital to shareholders. In the fiscal '14 to '19 time period, the organic and inorganic investments largely equaled the capital that was returned through dividends and share repurchases. More recently in the fiscal '20, to '23 time period, the dividend was the primary component of capital return, and we are more weighted towards investments successfully strengthening our capital markets franchise with the acquisition of Itiviti and building up the wealth platform to attack the $12 billion market opportunity that Tom showed you on the screen earlier today. I said earlier to one of you that in fiscal '24, we see less opportunity for M&A that meets our high returns. So we expect more capital return. And I'll highlight that the share repurchases in Q1 of '24 is the first step in that direction. And so looking further ahead to '25 and '26, we expect more balanced capital allocation, again, as we focus on growth investments and returning excess capital and dividends to shareholders. So let me quantify the strong capital position and the expected capital allocation over the next 3 years. For the fiscal '24 to '26 time period, we expect to generate $3 billion in free cash flow at approximately 100% free cash flow conversion. If we hold the leverage ratio at 2.5x, that would give us the opportunity to borrow up to an additional $1 billion, bringing total available capital to $4 billion. At a 45% dividend payout ratio, you'd expect us to return approximately $1 billion to shareholders through the dividend. And what that does is leave $3 billion in available capital for high return tuck-in M&A that drive growth and share repurchases. So I also want to emphasize before moving on here, this point on expected returns. I was happy to see it in Tim's slide when we begin the session today. Broadridge has historically generated high ROIC through a combination of tuck-in, accretive M&A and more modest internal development. More recently, ROIC was lower as we approach the payback on the BTCS acquisition and the GTO platform builds that we've been talking about today. Going forward, I expect the combination of continued disciplined capital allocation, growing returns on the BTCS investment and the platform builds combined with steady 8% to 12% earnings growth will increase ROIC to mid- to high teen level over the next 3 years. Looking ahead, we are reaffirming our full year guidance for fiscal '24 across all the key metrics, recurring revenue growth, adjusted operating income margin, adjusted EPS growth and close sales. And with our strong start to Q1, we have increased confidence in the full year outlook. So I'll conclude my remarks with the 3-year financial objectives, which was released earlier this morning in a press release. We expect total recurring revenue growth constant currency at 7% to 9%, driven, as I noted earlier, by 5% to 8% organic recurring revenue growth. And we expect that level of growth, organic growth across all 3 of the franchises. And I would note that the midpoint of 5% to 8%, the midpoint of that organic recurring revenue range represents a modest acceleration from the historical objectives, really representing and reflecting the strong start to the year that we have. We anticipate that we'll generate 50 basis points plus in annual AOI margin expansion, excluding distribution revenue and float income. And you combine those things, the strong recurring revenue growth, the margin expansion at a flat tax rate gets you to our expectation of 8% to 12% adjusted EPS growth. This should again sound very familiar to you when you think about our objectives over the last 3 investor cycles and our performance over those 3 cycles. So let me close by reiterating my key messages. Broadridge has a simple financial model, that generates sustainable recurring revenue growth and steady and consistent adjusted EPS growth. Second, we generate and expect to generate strong free cash flow, and that will allow us to continue the balanced capital allocation, investments for growth and capital return to investors. Third, we will increase ROIC to mid- to high-teen level over the next 3 years. And fourth, we are well positioned to deliver on our 3-year objectives. And the combination of those 4 things positions us to continue to drive strong top quartile shareholder returns. So let's bring Tim back up on stage, and then we'll go into Q&A. Thank you.

Wow, thank you. Thank you very much, Edmund. Just as we move to Q&A, I want to tie a few things together for us. You've just heard our latest 3-year financial objectives, and Edmund showed some really powerful math behind those. But beyond the math, I just want to talk for a little bit about why I am so confident that we will deliver on those objectives for 2026 and well beyond. Now I think you've heard just a few times this morning that we've delivered consistent performance over the past decade, whether that's recurring revenue, earnings growth or pretty much other -- any other metric. And we're very proud of that. And we don't believe that is an accident. We delivered on our objectives really based on 3 key building blocks. First, there's a lot of demand for what we do. The financial services industry continues to evolve, and our clients continue to have needs to power their critical infrastructure, but also to transform that infrastructure for tomorrow. And Broadridge is uniquely positioned to deliver n those needs. Second is culture. We have built deep client relationships, as you heard from Chris and Dipti, on a record of great client service on taking a long-term view and of doing the right thing. And third, we've executed. There's simply no substitute for the hard work of delivering for clients every day. There's no substitute for the hard work of building new capabilities that they'll need in the future. And there's no substitute for the hard work of participating in the industry, all of the industry forums and ensuring that our markets continue to operate smoothly and efficiently. So I'm confident that we can continue to deliver on our objectives because all of those building blocks are still very much in place going forward. The democratization of investing, accelerated trading and the imperative to modernize wealth are powerful ongoing drivers. Broadridge continues to have the strongest culture in the industry, and I'm committed to ensuring that we remain the best place to work for the most talented associates in our industry. And finally, our management team led by the executives that you saw today. That team is stronger, more experienced and more capable than ever. It's a team that has executed and will continue to execute. So I'm confident that when we're here 3 years from now, we'll be showing how we did deliver on 5% to 8% organic growth and 7% to 9% recurring growth on an 8% to 12% adjusted earnings growth. And what's even more important, I'm very confident that we'll be sitting here setting out new objectives that are very similar that will take us through the end of the decade. So I hope after hearing all of us today, and we'll do the Q&A, but I hope that you believe as we believe that the next 10 years is going to be just as exciting and productive as the last 10. Thank you very much for the interest that you're taking and everything that we're doing. Thank you very much for being here today. And we look forward to Q&A. Ed, can you describe how that's going to happen.

Thanks, Tim. So we're just going to set up for Q&A here in the next 2 minutes. We're going to have the team come up. They're going to be riding here. Greg Faje and I from the Investor Relations team, we'll have a mic. [Operator Instructions]

David Togut with Evercore ISI. Appreciate the comprehensive detail and analysis presented today. That was extremely helpful. The most notable change in your new 3-year guide, obviously, is the higher organic recurring revenue range, 5% to 8% versus 5% to 7% historically. Edmund, you talked about the strong start to fiscal '24 being a contributor, but you also seem to be guiding a little higher in terms of the contribution of stock record growth, 2% to 3% contribution versus 2%, I think, in the pre-pandemic period. So if I've got that right, what makes you more confident in the growth outlook for stock record position growth going forward?

Yes, David. I'll start on that and I'll let Edmund join in. First of all, what he was saying at the end there that 2% to 3% was that's the contribution from internal growth. So that's beyond stock record, it's not just stock record. It would include some of the other factors that we see. And that really comes from the underlying growth inside some of our products, things like CPI and things that are in our contracts that contribute to internal growth. I do think though, I just want to comment before I turn it to Edmund. Thank you for noticing the extra emphasis on organic growth, I think that's really a result of the investments that we've made. And as we see those coming through and looking forward to what we think will happen in sales, that we feel that we are better positioned than ever to drive growth organically also based on the technology that Tyler talked about and the ability to drive things even better than we ever have. But Edmund, do you have anything to add just on that.

Tim gave a pretty comprehensive answer. I just want to be very specific about your question. So because of the reasons that Doug talked about, sort of more normalized pandemic level position growth in the mid- to high single-digit level. And Tim said it, but specifically, lower concessions and the impact of pricing impacts rolling through our portfolio. I think the combination of those 2 things will help us have that 2 to 3 points of contribution to recurring revenue growth, which, again, if you saw 2 points below for the pandemic, that will be at or above that level driven by those 2 items.

And just as a quick follow-up, to the extent organic revenue growth is significantly higher or at least, let's say, toward the higher end of that range, which seems to be in play because you put it in play. Why wouldn't that generate higher margin expansion going forward to the extent more of your revenue growth is coming from organic versus acquired, would that tend to set you up for at least more conviction in margin expansion and/or more margin expansion than historically?

Yes. I think -- and I'll let Edmund, why don't you start at this time. David, I think one of the things you saw that we're pretty specific about it is the investment that we plan to do. And so yes, organic can have good margin implications. If it's coming into existing products, it has very good margin implications. If it's a new product, it might not be as high margin at the beginning. And -- to the extent that we start going above that range that we've talked about, we really view that as an opportunity to invest and really drive further growth for the future.

It's Darrin Peller from Wolfe. Congrats on today. Thanks for all the extra detail. It's great to see. When we look at the variety of contributions to your closed sales over the last couple of years, it's never really been 1 big anchor opportunity. It's always been a variety. Maybe, Chris, you could just give us a sense, what are you seeing in the market in terms of rank ordering what demand is coming in like in terms of different opportunities that you're now signing and booking today? And I also kind of want to add on to that, has there been a cyclical pressure that you've noticed at all? Or is your business so sort of in demand and mission-critical that we don't see much. I'm just wondering if we're going to see an uptick as the economy maybe stabilizes more over time?

Well, thank you very much for the question. Let me do the second one first because it relates to then the variety of the sales side. Look, the macro environment in the world last year, geopolitical interest rates inflation, I think the last year was pretty tricky for everybody. I wish everybody that buys from us turned off the TV but they didn't. But I think people are getting adjusted to that. We're seeing uptick in engagement with clients. There was also the pandemic, so people were harder to access to. So we're really accelerating now. And I think the second point I'd make is we had a strongest pipeline we've had ever. It is -- to your first question, it is quite diverse across the capability set that we have. BTCS has been a really good driver both North America and internationally. So that's great. We have a really strong tailored shareholder report opportunity for us. So that's a big one, a number of our core capabilities, including some Tom talked about in wealth are really adding to that. So I think, again, I have to start with that macro environment was tough for everybody, but we've really seen progress. And I mean, the last thing I would say is that we're reaffirming guidance in our range with confidence.

All right. So it sounds like it's still broad.

It's broad because we're getting after a big number. And clients are reticent to take big project risks, so that's why we love the modularity of our wealth platform. We're coming into clients with what is their current problem, what are they solving for, whether it's a financial adviser, client acquisition or whether it's class actions is really big right now. These things are being done in-house, these are opportunities we about. I don't envision that you're going to see large, large sales. There are some really interesting opportunities in the digital space that could be differentiating. Some of those are takeouts of unvended things. But I think you'll see -- we look at our sales opportunities, like we want to do $200 million a year of velocity type sales. We'd like to do $100 million of strategic type sales, which are bigger but not massive, and then we'll continue to look for big platform opportunities.

Okay. And then just my follow-up question would be on the M&A side. I think you guys included about 1 to 2 points or 0 to 2 percentage points of M&A in your revenue outlook. And so maybe, Tim, just first, the priorities for you in that M&A approach in terms of what you need or want for the business to keep growing the way it is. And then Edmund, if we didn't find the right deals, $3 billion is a healthy capital available. And so can we expect that much more buyback?

Yes. So -- so clearly, M&A has been a really nice contributor to our growth over the past decade. I would start with the fact that we are and have been an organic growth company and the M&A has always been an add-on in terms of build versus buy in our different areas. And so -- it is something that we think will probably begin to return over the next few years. Obviously, the last few years has been a pretty big dichotomy between what buyers and sellers thought values were. That's still the case in the market right now, but we think that will begin to come together again. And if you do see us doing M&A, you should know that it would because we have high conviction that we're the right owner for that asset and that we can really bring a lot of value to it. So that's the first part. I'm going to ask Edmund to jump on the second part.

And part of the -- the first part is like we are constantly scanning the environment, and we see opportunities in each of our franchises, particularly in the ICS opportunity. So I think it is probable that there will be some assets that are worth looking at. But Darrin, I'd point you back to that slide that I had on the balance between capital allocation, inorganic and organic investments in -- which include M&A and then dividends and share repurchases. And we -- you saw that balance there. So the expectation is that you'll see that $3 billion that you're referencing, largely equal between those 2 items. That's playing out in fiscal year '24, probably more weighted toward towards share repurchases, and we'll see over '25 to '26. But as you saw in that slide, I just have to point out that we are super focused on the high-return right opportunities that really help expand the franchise.

Thanks for doing this. It was really informational. It's Puneet from JPMorgan. I have a question on your international business, 7% of revenue. I think you said growing 24%. So it should be like a decent contributor to overall growth rates as we think 3 years out, where there is -- which segment of the business has more excitement as it relates to international. ICS or GTO, like where do you see more excitement? And how competitive international ICS market is, especially as it relates to regulatory and proxy delivery?

Sure. Puneet, I'm going to start with that. I'm going to ask Chris Perry to also join. Chris, the -- our international business rolls up to Chris. But I'm glad you called this out. It is -- I think a really important part of the business for us, and we talk about 7 of our overall revenues. If you look at it as a part of our fee revenues because it is largely a fee revenue business, it's nearly 10% and growing very nicely, as you said. We're excited about both parts of the business. We really like what we've done in terms of bringing BTCS together with our global post-trade offer, and we really like how we have a much stronger position now in some of the key markets. But there are also really good opportunities on the ICS side, particularly in regulatory communications. As you know, the proxy business is a little bit different outside the U.S., but the other kinds of regulatory disclosures that we do are very important, including data and analytics.

Yes. I'll add 2 things on there. When I first got here, we were really a GTO business internationally, and it's very exciting to have now 2 powerful businesses that have opportunities internationally. The second one, which is very specific, which is with the acquisition of Itiviti, now BTCS, we're cross-pollinating those opportunities. So there's a lot of cross-selling. So the Itiviti teams taking our -- other colleagues into these clients that they have relationships within offices in cities where we haven't been and there's vice versa happening really strongly. And we're also cross training a lot of the people that are coming in from BTCS, on our front, middle to back. So I think to me, that's going to be a really powerful growth element. Similarly, ICS, both of my teammates here have some great offerings there. They've made several trips to Europe now that a few years ago wouldn't have happened. So we're really excited, as Tim said.

And my second question is on margins like it's good to see underlying margin expansion of 50 basis points. But what should we expect for distribution like over next 3 years? Like could that be a net tailwind to margins over the next 3 years?

I do expect it to be -- I think that was directed to me, Puneet, and thanks for the question. I do expect it to continue to be tailwind. It's hard for me to predict what the postal rate -- what the Postal Service is going to do in terms of postal rates. But look, over time, we've talked about distribution revenue being sort of low single-digit growth. You know very well that over the last few years, it's been elevated, double-digit, low-teen growth. At least through the '24 time period, we expect higher distribution growth, and so it will continue to be a tailwind. Who knows exactly for '25 to '26, which is why I was very specific in pointing out that I'll just keep you informed as we go along. But right now, it will be a headwind to the margin expansion.

So just to clarify on the headwind versus tailwind, as distribution goes faster, it makes it harder -- harder to grow margin. And -- but what Edmund did really well is he dissected that between those effects that don't really have any economics and the underlying piece, which is still the 50% -- 50 basis points.

Patrick O'Shaughnessy from Raymond James. So I think I heard you guys speak to a $200 million sales pipeline in wealth. What's the time line to achieve that revenue? And is your $20 million to $30 million of annual sales in wealth and business enough given your sales pipeline?

I'll comment a little bit on that. I'm going to ask Tom Carey to come in and see if Chris has any cleanup after Tom finishes, because we all love this question. We are really excited about what is going on in wealth. Tom and I were together out at an important wealth client last week. And they are looking at a long-term transformation, and they -- it really resonates the component has approach and the ability to do that over time. So we really feel like how we've architected this is really right for the market. And -- yes, $200 million sounds like a big number. I think as you know, Patrick, these sales cycles are very long. And so that's not the within your number, that's the number over time. And so I do think that we're -- when we brought all this out, we talked about 3 objectives, get UBS live. So feel really good about that. Have an incremental $20 million to $30 million of sales a year. We feel good about that given the pipeline and then use the technology throughout the rest of Broadridge, and you can see from what you heard from Tyler, that we have a good start on that. Tyler -- Tom, maybe add on about how you see the timing of things and how the market is developing.

No, sure. And you nailed a lot of that, Tim, so thank you very much. As Tim said, we were down with a major client last week, and it was a great experience to actually see the wealth platform in motion with them, and actually work through with them the component parts that they need for their infrastructure going forward. And there's a lot of demand for modernization. And that modernization is on a couple of tracks so I think about it. One is this technology transformation you need to do. So we talked about the AI today, the operations, et cetera. So the backbone of the plate. But then you look at the front office piece and the adviser experience, they need new products and new services, and that's where we step in with our components because that's going to power them, and it's going to power us as well. I love the idea that $20 million to $30 million of increment is not enough, and we'll keep pushing for more. Chris?

I like that last part of your answer. Again, it is incremental on top of what we do already in that market. So it's a strong number, and I think it will be accelerating.

I think it's interesting also just to add on just going back to last week. That's a client that is in the midst of implementing sales force, and it really resonated in terms of how we're able to deliver our components inside sales force with bidirectional data share.

Got it. And then for my follow-up, just can we get an update on LTX and in particular, your traction with clients and getting some of the larger dealers signed up and active on the platform.

Yes. Thank you, Patrick. So you saw that in a number of the slides that we didn't talk that much -- not talk that much about it today. It is -- and just for everyone's recollection, LTX is -- applies AI to fixed income trading to help identify counterparties and then it has a novel protocol that aggregates demand to enable larger trades to take place. And there's -- it's pretty low penetration of electronic trading today in larger trades. This is I'd say something about which we remain cautiously optimistic, but we didn't talk about it today really because the timing is very uncertain as to when it could have any material impact on our revenues. And so we just didn't make it a big part of the story. We do continue conversations. We have a lot of buy-side clients signed up. We have a lot of broker dealers signed up, we have a really good management team, but we need to get the network value really going in the network growing. The timing of that is very uncertain. The guidance that you saw today has the extense of LTX in it. It does not have any revenue in it. So to the extent that we do get that going, then that would be upside.

I think we have time for 1 more question, so.

Michael Infante, Morgan Stanley. I just wanted to ask, just given the commentary on the business becoming increasingly weighted to SaaS in nature. Obviously, that's increasingly more difficult to isolate just with the impact of distribution and event-driven revenue. But Edmund, I just wanted to ask sort of what's contemplated in the objectives from a gross margin perspective? And how do you expect that to evolve as wealth becomes a bit more meaningful to the story?

Yes. Thank you, Michael. Tim knows that one of my favorite slides today was the slide that showed why we think that the outlook for continued margin expansion is very positive for us that we have this continued ability to be able to grow more profitably, and you look at those components. The first bucket on that slide that I'm referencing was related to the question that you're asking, 50 to 70 basis points of margin expansion from the scale in both of the businesses as I highlighted. And that includes as we become incrementally more marginal -- more profitable in the wealth business as well as the ICS and GTO platforms as well. So you see a very fixed -- solid fixed infrastructure cost there. And as we bring on those new sales, they come on at incrementally higher margins. And I think you see that across each of the businesses, right in line with technology, SaaS company industry margins in terms of the incremental revenue that's coming on to us.

So I'm going to wrap up here. On behalf of the Investor Relations team, particularly my world-class colleagues, Greg Faje and Sean Silva, who's been making all of this happen. Obviously, on behalf of all of our management team here and on behalf of the more than 15,000 Broadridge associates around the world. Thank you guys very much for taking the time for your interest and very importantly, for your investment in our company. I appreciate it. Thank you, and have a great day.