Pinnacle Investment Management Group Limited (PNI) Earnings Call Transcript & Summary

Thank you for standing by, and welcome to PNI's Full-Year FY 2026 Financial Results Teleconference. [Operator Instructions] I will now hand the conference over to the Managing Director, Mr. Ian Macoun. Please go ahead.

Thanks, Ashley, and welcome to all of you who've joined us on the call this morning. Thanks for being with us. This call is to discuss our results for the 2026 financial year and to enable you to check in on our ongoing progress and success and our business positioning, strategies and practices, which are aimed at enabling higher rates of profit growth to continue for many years to come. As we passed the milestones of 20 years since the formal commencement of Pinnacle Investment Management Limited and 10 years since the commencement of Pinnacle Investment Management Group Limited as a listed pure-play funds management company, we are better placed than ever with a terrific culture that our long-serving executives, together with a few carefully selected newer ones, are able to imbue into the many extremely talented people we have recruited and whose high-quality careers are growing with the company. We are in a happy position of having a very strong track record of 20 years of growth in FUM, in NPAT and in EPS, and a strong investment performance that together have proved our model to be very attractive. And we are determined to continue to evolve and grow so as to deliver a continuation of high rates of growth. Our results to date, together with what we observe occurring in our traditional markets and in attractive adjacent markets give us the confidence to proceed at pace with our growth plans to stimulate progress whilst at all times preserving the core. We are confident with good reason, but not overconfident or complacent. We are finding and progressively addressing more and more blue oceans of demand, and we are resourcing and organizing our company to produce growing funds volumes whilst preserving, indeed, increasingly exploiting as our most important task, the very large capacity of our core capabilities, existing affiliates, existing strategies and existing markets. Our distribution capabilities continue to grow and evolve to cater to both our traditional and additional areas of demand. And we know how to organize ourselves as we grow to avoid the growing pains and bureaucracy that stump the growth of some companies. Our distribution strength and experience provide us with the intel and insight on which we plan and execute. We posted with the ASX last night our formal results announcement, our annual report, including the audited financial statements for the year, our corporate governance statement, our corporate sustainability report and importantly, our investor presentation. We'll be speaking to key parts of the presentation this morning. The colleagues with me on the call are Alan Watson, our Chair; Andrew Chambers, Executive Director, with particular responsibility for institutional and international distribution; Kyle Macintyre, who leads wholesale and retail distribution; and Dan Longan, our CFO. Also on the line at midnight his time in the U.K., the CEO of Pacific Asset Management and freshly minted Executive Director of PNI, Matthew Lamb. Matt, are you there?

Yes, I'm here. Thank you very much for involving me and inviting me on to the Board. I mean, Pinnacle is an amazing business. It's a huge privilege, and I'm looking forward to working with everyone.

Great. Thanks for being there, Matt, and it's great to have you with us. So, I'll call out the main themes and highlights and provide some context for our results and elaborate some aspects that we feel are particularly important for analysts and shareholders to understand. In brief, we have achieved strong results in terms of underlying profit growth, funds inflows and growth in funds under management as well as overall strong investment performance. Besides the key outcomes and results for FY '26 and the key themes for the past year, we will outline the strong growth outlook. As always, we'll leave plenty of time for questions, which you're welcome to direct to any of the Pinnacle representatives on the call, including Matthew Lamb. Slide 2 is an agenda. The footnote to Slide 2 refers to the disclaimer on Slide 64 that we would ask you to please read. Slide 4 is an overview or context slide provided for people who are newly interested in our company and don't yet know Pinnacle very well. It seeks to succinctly summarize the essence of Pinnacle and what we believe makes us special and a highly compelling investment. We are a highly scalable, multi-affiliate platform and business model, which has proved itself over 20 years to be able to compound the growth of earnings and dividends at very high average rates through market cycles. Diversified and resilient. Again, we are a proven compounder of FUM and earnings. We have multiple growth drivers. We are forward-thinking and innovative with no choke points to restrict ongoing growth and a business model specifically designed for investment excellence at its core, delivering continued investment outperformance for 20 years. Slide 5 is a summary of our highlights or themes for the 2026 financial year. We have enjoyed strong growth, continuing strong growth in our core earnings, record net inflows and continuing investment excellence. And we have evolved into a robust, increasingly global platform, driving scalable and diversified earnings growth with multiple tailwinds evident heading into the 2027 financial year. Looking at the first heading on Slide 5, strong core earnings growth. NPAT was up 31% on the prior financial year, up 21% after adjusting for returns on principal investments and the non-cash profit recorded on the step-acquisition of PAM. Affiliate margins on fund management activities before performance fees were 10% higher in FY '26 than FY '25. Importantly, and I'll elaborate on this later, Pinnacle Parent's revenues, excluding the PAM and PI adjustments, were up 50%. This is revenues from affiliates for the core distribution and operations, risk, tech and RE Services provided by Pinnacle, which are core ongoing repeatable revenues. These were up $25.3 million at $76.1 million in FY '26. This revenue comfortably funds high-quality resourcing, both for our core activities as well as high levels of business growth, particularly with the efficiency benefits from growing scale, the use of AI, et cetera, and still contribute strongly to profit growth. Total people costs comprising salaries, short-term incentives and long-term incentives in Pinnacle Parent were $55.5 million, up $12.2 million or 28.3% on FY '25. The total number of people employed in Pinnacle Parent globally increased from 144 at 30th of June 2025 to 182 at 30th of June 2026. And we are confident that this process, Pinnacle Parent revenues growing faster than its costs can continue, notwithstanding that we continue to strongly grow our resourcing for future growth. To the second point, record net inflows. Our overall net inflow number of $33.4 billion for the year was a record again. The aggregate closing FUM of the affiliates at 30th of June 2026 was $229.4 billion, which is $50 billion or 28% higher than the aggregate opening FUM at the beginning of the year and 14% higher than the average FUM for the 2026 financial year. Approximately 1/3 of the $229.4 billion is now from clients outside of Australia, and 44% of that is from wholesale and retail investors. We are at an inflection point as we work to replicate our domestic wholesale retail strength in other markets of the world. It took us years to build that kind of valuable presence in Australia. Of the $33.3 billion of total net inflows, $10.2 billion was from Australian retail. That was very much a record, but more in the first half than the second. And we note that this year's flows represent 26% of the opening retail fund. $12.3 billion was from clients outside of Australia, and this was 24% of opening international FUM and $10.9 billion was from Australian institutions, 12% of opening domestic institutional FUM and not a bad result, not a bad net result given what has been going on in the Aussie institutional market last year. Now looking at the section heading Continuing Investment Excellence. 81% of affiliate strategies with a track record of 5 years or longer have outperformed over that 5-year period. We have achieved a solid performance fee outcome, with 12 affiliates contributing despite significant challenges for some investment styles. And there are now 35 strategies with the ability to deliver material performance fees on $61 billion of FUM versus $50 billion at 30th of June 2025. Now the topic of investment performance is very important and warrants some further comment. 81% is a good number. As I said on the first half results call, for style and other reasons, not all, even very high-quality managers will outperform in all periods. Markets are continually changing and short term can be highly volatile. FY '26 certainly qualifies in that regard. There has been a lot going on. Many of the people on this call would be very familiar with equity market conditions during the past 12 months or so. It is not an understatement to say that confusion, speculation, exuberance in both directions surrounding AI in a variety of ways and a war impacting the oil price. The geopolitics and inflation concerns generally have loomed large. Styles such as quality and growth that have had years of favorable conditions over the past decade or more have encountered headwinds. It is testament to the consistently high quality of Pinnacle Affiliates that we have maintained a very high proportion of outperforming funds and strategies throughout our history. This also reflects the diversity of our stable, including style diversity. And we see that the composition of which affiliates have recently outperformed changes through time. At Pinnacle, we are continually in close contact with our affiliates, and we retain high conviction in the quality of those whose shorter-term performance has been below their usual standards recently. Their time will come again and their talent, experience and processes will once again translate into compelling outperformance numbers. Again, as I commented at the half year results, it's appropriate to acknowledge, for example, the strong recent outperformance of several of the managers. Plato, see Slide 53. Solaris, also Slide 53. Firetrail, Slide 54. Firetrail was awarded overall Fund Manager of the Year at the 2026 Lonsec and Money Management Fund Manager of the Year Awards. Along with the major overall award, the Firetrail Absolute Return Fund was named Liquid Alternatives Fund of the Year and the Firetrail Australian Small Companies Fund Active ETF was named Australian Small Cap Equity Fund of the Year. Resolution Capital, Slide 53, Metrics. Slide 55, Coolabah, also Slide 55 and Longwave, Slide 54. Again, this would not have been the same list a couple of years or even a year ago. To the final heading on this Slide 5, evolution to a global platform, $75 billion of FUM from 50-plus countries outside of Australia, of which $33 billion is wholesale retail. Pinnacle's unique supported independence and value-add platform is resonating strongly across the globe. We have a demonstrated ability to execute and deliver rapid growth across Horizons 2 and 3 globally, Horizon 3 investment in Japan's largest homegrown private markets platform, Advantage Partners, initial 5% was completed in January and the expanded PAM partnership accelerates our global growth with complementary distribution platforms to enhance geographic reach, affiliate origination, product innovation and expansion. Now, just a couple of quick comments on our expansion overseas that we didn't write in there. Firstly, we are not expanding overseas, seeking growth for growth's sake, arrogantly pursuing some kind of ego trip or because there is any pressure on us to do so. And we have said many times, we have so much natural growth coming down the pipes from Horizon 1 that we don't have to undertake Horizon 2 or 3 initiatives. We do them only when the opportunities are extremely compelling, low risk, expected high return and where our competitive advantage is clear and the task firmly within our core capabilities and our business model. We have been studying the opportunities overseas for most of the past 20 years. I don't think we could be accused of rushing in carelessly. We are notorious for how many things we have looked at and not done. No doubt, we missed some, perhaps a lot of good opportunities, but we are confident that when we do undertake initiatives overseas, they are compellingly attractive for our shareholders. We don't have time just here, but I'll be happy to go through individually each of the initiatives we have undertaken and explain why we are confident they will do so well. Some of that is done later in the preso. Also another happy situation is that as we add resourcing overseas, the cost of that is generally now added simultaneously with revenue growth. The extra resources tend to produce additional revenue quickly these days. And we have a model for growing without growing pains, so we can succeed with new initiatives without distracting from our existing or core activities. A particular culture related, I think, to our start-up heritage and our modular approach to organization structure and our disdain for bureaucracy. So, evolution to a global platform is about both, reporting on realized outcomes and simultaneously reporting on the activity going on within the company that is work in progress, continuing to build out further our offshore capabilities, both affiliates and distribution and operations and tech, et cetera, for that matter, overseas. I won't take up more time dwelling on them right now. There's more detail in the preso, but it is stating the bleeding obvious to express our absolute delight at the tremendous progress already with both Life Cycle Investment Partners and Pacific Asset Management. Not only their rapid business success, Life Cycle had the equivalent of AUD 42.4 billion of FUM at 30th of June 2026, less than 2.5 years from their effective commencement of business. And PAM's run rate earnings have grown from GBP 9.4 billion per annum when we first purchased equity in PAM to GBP 17.9 million per annum when we increased our holding to 100%. And as you can see from the segment reporting, that run rate has increased nicely again since then. But also more importantly, with both of these overseas affiliates, we are delighted with the character and integrity, as well as the talent and experience and expertise of their leadership and their people. Their passionate commitment to excellence, coupled with their philosophies and clear approaches to delivering strong results for their clients, each from a strong and very high-quality business over many years into the future. High EPS growth. So just turning to Slide 6, which points out that high EPS growth is supported by a diversified, scalable and cash-generative business model. We have delivered high compounding returns. This is really an extension or conclusion from our FY '26 highlights or theme slide. Of course, we are reporting to you on the outcomes achieved. But in addition to these outcomes, the big question people want us to answer and to explain is whether the high growth -- high rates of EPS growth that we've achieved to date can be continued for many years into the future and why we are so confident of that. Of course, we don't have a crystal ball and can't make predictions, but we can explain our agenda, our plans and how we are planning and executing. Thus, we are confident that high compounding returns can be achieved by executing our unique model and 3 Horizons of growth in parallel across more addressable markets. Pinnacle's business model is globally distinct, compelling and sustainable. Equity ownership of high-performing investment managers, combined with market-leading distribution continues to drive strong cash generation. The appeal of the supported independence model appears to be universal amongst investment managers and clients alike. It is replicable in an expanding range of asset classes, subclasses and styles, geographies and product formats such as ETFs, LICs/LITs, managed account solutions and so on. And the total addressable market, particularly internationally is, therefore, very large and growing. Turning to Slide 7, the financial highlights. NPAT was $176.7 million during the 2026 financial year, up 31% on the prior financial year, but up 21% after adjusting for returns on principal investments and the non-cash profit recorded on the step-acquisition of PAM, which will be explained on the next slide. EPS was $0.781 in FY '26, up 25% on FY '25, but up 15% on the same adjusted basis. The final dividend was $0.31 per share, bringing the total for the year to $0.60, the same as for FY '25. Franking was at 72%, and the payout ratio was 77%. As mentioned before, aggregate affiliate FUM at 100% was $229.4 billion, up $50 billion or 28% from $179.4 billion a year earlier. Details of the FUM of each affiliate are provided in Slide 56. Aggregate domestic retail FUM was $50.7 billion at 30th of June '26, up $11 billion or 28% from $39.7 billion at 30th of June '25. The aggregate affiliate FUM capable of earning performance fees was $61.3 billion at 30th of June, up $10.9 billion or 22% from $50.4 billion at 30th of June '25. Total net inflows for the year, $33.4 billion, comprising $10.2 billion of domestic -- net domestic retail inflows, $12.3 billion of net inflows from international clients and $10.9 billion of net inflows from Australian institutional clients. The increase in FUM attributable to market and investment performance combined was $11.8 billion, including $800 million from retail. In addition, $4.8 billion of FUM was acquired in the Advantage Partners transaction. Aggregate Affiliates' funds management revenue at 100% was up $251.6 million or 28% to $1,152.4 million, of which base fee revenues were up $258.5 million or 35% to $1,005.8 million. And performance fees were down 5% from $153.5 million to $146.6 million at 100%, of which Pinnacle's share after tax was down from $46.6 million to $35.6 million. 81% of Affiliate strategies with a track record of 5 years or longer have outperformed their benchmark over the 5 years to 30th of June '26, down from the exceptionally high 91% over the 5 years to June '25. There's further performance detail on Slides 10 and 50 to 55. Slide 8 provides the numbers you might need to adjust our reported NPAT and EPS numbers to remove the unusual or abnormal non-recurring items, if you like to normalize the growth in NPAT and EPS numbers. We recorded that one-off accounting profit on the step-acquisition. The net impact of that in our FY '26 NPAT was $46.2 million, which could be eliminated as unusual. Also, as explained with our first half results, there's a second unusual factor in our results for FY '26, which is that the overall net return we received on principal investments was very low, negative $2.3 million. This is mainly due to unrealized capital losses on seed invested in 3 Affiliate strategies, which have experienced drawdowns during FY '26. We think many analysts would exclude the impact of this when assessing our core or underlying earnings growth. And you can see the net impact of these adjustments in the adjusted NPAT and adjusted EPS lines. Now for anyone who considers the FY '25 performance fees unusually large and wish to adjust for that, we've included the numbers for Pinnacle's share of performance fees impact on NPAT and EPS in the bottom 2 lines of the table. So, for example, if you included the PAM step-acquisition of TI returns, you adjusted the FY '25 numbers by deducting the $10 million from NPAT and $0.059 earnings per share by which the performance fees were higher in '25 and '26, then you would say NPAT grew by 32.4% in FY '26 and EPS grew by 29.5%. Slide 9 shows our record of earnings growth over the 10 years that we have been listed Pinnacle, which is through periods which incorporate a range of stages of market cycles. Over the 10 years to 30th of June '26, we have grown EPS by 27.2% per annum compound on average, eliminating the impact of the 2026 PAM step-acquisition non-cash profit. Slide 10 provides the specifics of the 5-year performance track records of the 43 Affiliate funds or strategies. Slide 11 shows the detail of the Affiliate platform and highlights of the '26 financial year. Slide 12 shows some details on our performance fee record and opportunity. As mentioned, we are growing the size and diversity of our performance fee potential and look forward to further large performance fee outcomes each year in future years. Slide 13 shows our 20-year FUM and net flow history. Our institutional, retail and wholesale pipelines each remain strong, and our client base is increasingly diversified, including overseas as we grow and evolve, recognizing changing market circumstances. Slide 14 elaborates the evolution of our FUM by channel type. Slide 15 focuses on our evolution and growth in private markets asset classes and internationally-domiciled Affiliate FUM. Slide 16 shows the evolution of our international platform and the growth in FUM from clients located outside of Australia by affiliate and by country. Again, Slide 17 provides some detail of the increasing diversification of our business, diversification by affiliate, by asset class and by strategies with the potential to earn performance fees. The result is greater resilience of our core earnings. Slide 19 has detail on our revenue and margin performance and the key drivers of that performance. Note that Affiliate margins, excluding performance fees have increased by 10%. Slide 20 further detail on our financial results. Slide 21, some balance sheet commentary. Section 3 provides an update on Pacific Asset Management, including PAM's very recent acquisition of Asset Value Investors. Section 4, an institutional and international market update. Andrew Chambers will explain the factors that work in these markets during question time and one-on-ones. Section 5, domestic wholesale and retail market update and Kyle Macintyre will elaborate during questions and one-on-ones. Now, Section 6 is titled our Growth Agenda, Slides 33 to 39. I don't have time to go through all of this, but the bottom line is it explains our results in growing the business and that we plan to continue our purposeful expansion into larger international markets through a growing affiliate presence, expanding our globally relevant product suite and increasing our global distribution footprint. And we return to this theme of our growth agenda by way of conclusion at Slide 47 shortly. Section 7 is on corporate responsibility. Again, I will leave it for you to read those slides. We are immensely proud to highlight the work of the PNI Foundation and the donations that we've made during the year. Now in conclusion, referring to Slide 46, I'd like to remind shareholders once again of the basis on which we remain so confident of our company's ability to grow and prosper, which is our distinctive business model that was designed specifically to ensure sustained investment excellence. And on Slide 47, our conclusion that high rates of EPS growth should be sustainable. As we pointed out very early in this call, when referring to Slide 6, we can't make specific predictions, but we can explain why we should be able to continue to compound EPS growth at high rates. This is summarized in Slide 47. So, can we please now invite questions. Please note the appendix has additional information that people are often interested in, such as the FUM history by Affiliate in Slide 56. So over to questions, please.

[Operator Instructions] Your first question today comes from Cameron Halkett with Canaccord Genuity.

Congrats on 20 years. And Matt, congrats on your appointment to the Board. I'll keep it to 2 in the interest of time. Can I start just around PAM? Obviously, another very strong year and clear momentum into FY '27. Now that it's been fully acquired, can you share with us anything on any initiatives for FY '27 that both Pinnacle and PAM will be working on together?

I think Matt is probably best placed to answer this.

Yes. I guess there's a number of things. Firstly, I think what we're doing in the U.S. is quite interesting. We've had quite a lot of success in the U.S. It's a ginormous market. People talk about model portfolios and the SMA market that's happening in Australia, but really model portfolios are happening all over the world. And that means, actually, there's fewer and fewer allocators of capital and there's more and more capital as everyone moves towards models. So the ability to tackle ginormous markets like the U.S., I think is much easier than it was historically when you may have needed sales teams that were ginormous. So, we're working very closely with Chambo's team in the U.S., some of the structures that we've mutually got around active ETFs and CITs and LLCs and Cayman vehicles. So, I think that's a super exciting opportunity for us. Affiliate origination, working at how we can take interesting investment capabilities that sit within the Pinnacle Group and work at how to best distribute outside of Australia, whether that's through PAM's infrastructure, whether through PAM's quasi-captive distribution through its own model portfolio business, which is growing. And I guess most obviously is what we can do in the SMA market in Australia. Clearly, the retail market in Australia is focusing on outcomes and advice, and that requires more and more financial advisers probably to outsource to SMA providers. And we believe when the time is right, the technology infrastructure, the Pinnacle brand, the track record that we've built and the sort of global nature of what PAM do has as much appeal in Australia as it does in the U.K. So, we're super excited about that. And our U.K. business within the SMA market or model portfolios continues to accelerate. So, I think we can achieve -- there's a possibility we can achieve what we've done in the U.K. successfully in Australia when the time is right.

And the last one I'll just do is can I just touch on metrics? I mean, a particularly strong year for profit growth, noting it looks like some performance fees has helped given there wasn't any in the prior year. But just outside of that, it looks like there was strong operating leverage. So is that something that we can think about again into FY '27?

Thanks for that, Cam. Yes. So it was good to see metrics plans in regard to the bringing together and the streamlining of those asset-backed lending businesses start to come through in FY '26. And we definitely think that, that can continue as they continue to get the benefits of the cost rationalizations from those platforms being combined. And then medium to longer term as they incept products that just behind that origination capability. So yes, we absolutely think that, that continues to improve the metrics from here.

Your next question comes from Nick McGarrigle with Barrenjoey.

Just in terms of the -- obviously, FY '26 is an interesting year in terms of the ins and outs and part years of a range of things. I wonder, if Dan, if you've got kind of a mental map of how you think about the growth rate across the business in terms of profit and the key drivers, not obviously numbers, but thematically, what are the key things that you think are latent in the business that help deliver reasonably good profit growth into '27.

Sure. So, there are really 4 things simplistically that we think about, and this is outside of any organic growth or any acquisitive or additional growth initiatives we may undertake. So the first one is the fact that we'll have 100% ownership of PAM for the full year next year compared to only 2 months this year with the balance at 25%. There's the fact that our closing FUM is 14% higher than the average. Importantly, that FUM is at a consistent fee rate, with the fee rate during FY '26 and FY '25. So, that will earn, therefore, at similar rates. There's the fact that the profit margins in Affiliates before performance fees improved by 10% year-on-year. And then there's the 50% uplift in revenues in Pinnacle Parent, which will annualize into next year. So, we think each of those 4 things, if you add them together, that takes you to a significantly improved starting point for next year compared to this. And as I say, that's before any organic growth or any acquisitive or additional growth initiatives we may undertake.

All right. Awesome. And maybe just one last question for me around Life Cycle. How is that business tracking in terms of its capacity? It feels like we're getting close to a point where do they start to soft close certain vehicles? And have they had meaningful success in raising money from U.S. allocators or into the U.S. equity strategy as an additional leg of growth beyond the global?

Well, I'll take that if I may. It's Andrew Chambers here. So if we just recap the capacity of Life Cycle in the select strategy, the flagship concentrated strategy is about $10 billion of capacity in that strategy. On top of that, you have a bespoke strategy, which is for institutional investors where they replace less liquid stocks with more liquid names and substitute those. That's another $10 billion of capacity. On top of that, again, you have $20 billion in a diversified strategy, which is moving from 60 stocks to around about 180-odd stocks in stock count. So it's much more diversified, lower tracking error, very fit-for-purpose for your future, your super environment, of course, here in Australia. And then on top of that, again, we have another $10 billion capacity in what is called a global equity income strategy that gets you to $50 billion and then you add on a minimum of $20 billion on top of that for the U.S. equity strategy. So if we think about those ones today, we'll be probably on about 50% of the way there for the select strategy. We've sold, I guess, the majority, I would say, of the bespoke capacity there. Diversified, we're probably a good 70-odd percent of the way there, I suspect, and U.S. equity is now lifting up. We've sold about $2 billion of capacity already. We've had success in North America with U.S. allocators into the U.S. equity strategy. We brought on board our first U.S. allocator into that strategy on a stand-alone basis and then winning clients into the global equity strategy. There are inflows and outflows happening inside these firms all the time. So, obviously, if capacity sometimes gets freed up as there's rebalancing inside the portfolios, we can allocate that to new investors as well. So yes, that's probably the summary. Sorry, Dan.

There's quite a bit of capacity left in aggregate.

Substantial capacity left.

That's helpful to understand. Sorry, I lied. I'll ask a follow-up to the Life Cycle one. How should we think about revenue margins in that business over time, just given the mix of where the additional growth is across that capacity?

I think it's fair to say given where they're at with capacity that the focus now will be on maximizing the revenue take rather than the absolute flow numbers. So, you should definitely expect that margin to improve as they cycle out some of that capacity into retail and as they start to sell out the more high-yielding strategies that Andrew mentioned, so the select strategy and then also their U.K. income strategy, which is sold entirely into retail.

Important to note, there are additional product extension capabilities within that organization. One would be into emerging market equities and the other would be into a lower tracking error, more systematic version of their offering as well, which would increase the capacity again.

Your next question comes from Andrei Stadnik with RBC.

Congratulations on the result. Can I ask 2 questions? My first question is just around the global distribution platforms, which you touched on earlier. Like are there any channels or any capabilities around managed portfolios or model portfolios SMAs that you think you want to prioritize in terms of your build-out?

Is that for Matt? Are you okay to take that question, Matt? I think the question is around managed accounts, model portfolios.