4 Benefits of Hiring an OCIO
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Benefits Of Hiring An OCIO For Financial Advisors
The Benefits Of Hiring An OCIO For Financial Advisors
Nowadays, trust has become crucial in the financial advisory industry. Clients depend on advisors to take care of their funds and give them reliable financial guidance. Outsourced Chief Investment Officers (OCIOs) partner with advisors to set the standard for outstanding financial advice. Together with utilizing the unique skills and resources that OCIOs provide, this partnership attempts to help clients succeed. Advisors can transform their practices by working with an OCIO, as the following blog demonstrates.
In addition to basic investment guidance, clients expect more. They are looking for a complete solution, including managing risks, portfolio monitoring, and smart investment. OCIOs are excellent in these areas. Advisors can stand out in a highly competitive industry, boost their abilities, and satisfy clients by teaming up with an OCIO. However, it goes beyond just strengthening the abilities.
Working together with an OCIO makes sure that everyone is contributing toward the same goals, promotes creativity, and keeps things interesting. It’s similar to having a powerful squad prepared to face any financial challenge. In this blog, we will be exploring the benefits of hiring an OCIO for financial advisors that helps advisors navigate challenging markets, make better investing choices, and offer great client service.
What Is An OCIO?
Making choices regarding investments on behalf of clients is a major responsibility of an Outsourced Chief Investment Officer (OCIO). They manage various kinds of tasks, such as precise portfolio management and general governance oversight. Similar to the work that an internal Chief Investment Officer (CIO) and their subordinates would conduct within the organization, this involves tasks that include the allocation of assets, managing risks, and performance monitoring.
OCIOs undertake the role of fiduciaries, taking full accountability for their actions and making sure that investing decisions and strategies match the goals and preferences of the people they serve. The specific range of services and obligations are specified in agreements between clients and OCIOs, giving clients the power to choose what level of control they want to keep. Clients could take advantage of an OCIO’s expertise and facilities with this collaborative approach, which also ensures that the investments they make are being handled successfully and strategically.
Some Benefits of Hiring an OCIO:
Partnering with an Outsourced Chief Investment Officer (OCIO) offers transformative benefits for financial advisors, which are mentioned below:
1: Greater Experience and Resource Availability
Financial advisors have the benefit of a wealth of resources and experience when they work with an OCIO, which can greatly improve their advisory capabilities. By providing specific knowledge in asset allocation, handling risks, portfolio management, and performance monitoring, OCIOs ensure that investment plans are in line with the goals of clients and the fluctuations of the market. This depth of knowledge enables financial advisors to leverage advanced investment strategies, navigate market complexities, and optimize returns while mitigating risks effectively.
The additional benefits Of hiring an OCIO for financial advisors is that they use current technologies and statistical techniques to offer immediate analysis of developments in the market, opportunities, and potential dangers. Financial advisers can take advantage of new opportunities, proactively update investment plans, and make data-driven decisions by using these resources. Working together with an OCIO not only increases investment outcomes but also promotes an ongoing growth and strategy alignment culture inside the advising firm.
2: Improve Decision-Making Efficiency
Financial advisers gain immediate and helpful insights when they collaborate with an OCIO, which speeds up the process of making decisions. Everyday portfolio management is the primary responsibility of OCIOs, who additionally provide complete reporting, performance analytics, and market research. Financial advisors are able to assess portfolio performance against specified benchmarks, enhance asset allocations, and make well-informed recommendations thanks to this wealth of information.
Additionally, by offering strategic direction and assistance, OCIOs allow financial advisors to concentrate on higher-level strategic projects. Advisors can dedicate more time to value-added services, financial planning, and interaction with clients by assigning operational responsibilities to the OCIO. This successful division of duties improves the overall result, speeds up response times, and builds up customer relationships by providing expert guidance as well as personalized solutions.
3: Reduce Operational Expenses and Enhance Scalability
The hiring of an OCIO can result in financial advice practices that see notable cost savings and operational efficiencies. OCIOs operate as independent entities, eliminating the need for maintaining an in-house investment team and the related expenses that go along with it. Advisors can expand their client base and service options without sacrificing the quality of their services due to this simplified method, which also enhances scalability and lowers operating expenses.
In order to achieve the greatest returns on investment and optimize resource usage, OCIOs also make use of economies of scale and the latest techniques in investment management. Financial advisers can carefully allocate resources, invest in growth initiatives, and maintain their competitiveness in a dynamic market environment with this cost-effective strategy. Advisors can achieve client satisfaction, profitability, and sustainable growth by collaborating with an OCIO.
4: Fulfill Expansive Organizational Goals
When financial advisors work together with an OCIO, the benefits of hiring an OCIO for financial advisors can match investment strategies to the overall client’s objectives. OCIOs take a leading role in higher-level conversations in order to make sure that decisions on investments align with the goals, standards, and vision of the client. This alignment of strategies enhances organizational flexibility and adaptability, along with improving the success of investments.
Moreover, the strategic suggestions and insightful guidance provided by OCIOs encourage organizational expansion, diversity, and risk control. Financial advisers can successfully manage market crises, grab growth potential clients, and set up their businesses for long-term success using the experience of an OCIO. Innovation, alignment of strategy, and value creation are all promoted throughout the company by the collaborative relationship between financial advisers and OCIOs.
Conclusion
Innovation, efficiency, and perfection in investment management are made possible by the collaborative relationship between financial advisers and Outsourced Chief Investment Officers (OCIOs). Financial advisors can boost their advisory practices to new levels of success by utilizing the knowledge, resources, and participation of an OCIO. Hiring an OCIO has benefits that go beyond only financial gains; these include better decision-making, scalability, efficiency in operation, and strategic compatibility with the company’s goals.
Serving financial advisers nationally with a planning focus, East Bay Investment Solutions is an established provider of virtual services for Outsourced Chief Investment Officers (OCIOs). Our team of experts specializes in offering complete OCIO solutions that satisfy advisors’ constantly evolving needs. Delivering exceptional value, strategic directions, and outstanding operational performance to our clients is our top priority. Schedule a meeting with us today to explore how our OCIO solutions can empower you to deliver exceptional value, achieve sustainable growth, and elevate your financial advisory services to new heights.
How To Choose The Right OCIO for Your Financial Needs
How To Choose The Right OCIO for Your Financial Needs
In recent years, Outsourced Chief Investment Officer (OCIO) services have become increasingly popular, especially among institutional investors and high-net-worth individuals. The complexity of modern financial markets, coupled with the need for specialized expertise, has led many to turn to OCIOs to manage their investment portfolios effectively. However, navigating the landscape of OCIO providers and selecting the right one can be a daunting task. This guide aims to demystify the process and provide a comprehensive framework to help you choose the perfect OCIO for your financial needs.
Understanding OCIO
Before delving into the selection process, it’s essential to have a clear understanding of what an OCIO does. An OCIO, whether an individual professional or a firm, assumes the responsibility of managing investments on behalf of clients. This encompasses various tasks such as asset allocation, manager selection, portfolio monitoring, and providing strategic advice. OCIO services are particularly advantageous for institutions like pension funds, endowments, foundations, and individuals with significant wealth seeking tailored investment strategies.
Key Factors to Consider
When evaluating potential Outsourced Chief Investment Officer (OCIO) services, several key factors come into play that can significantly impact your investment outcomes and overall satisfaction with the partnership. Let’s delve into these critical considerations to guide you in choosing the right OCIO for your financial needs:
1: Expertise and Experience:
When evaluating an OCIO’s expertise and experience, consider their track record in managing investments across different market cycles. Look for certifications, qualifications, and industry recognitions that demonstrate their competence. Delve into their team’s backgrounds, including investment professionals, analysts, and risk managers. Assess their ability to navigate complex financial landscapes, anticipate market trends, and deliver consistent returns. Additionally, inquire about their approach to due diligence when selecting investment managers and how they mitigate risks within portfolios.
2: Investment Philosophy:
An OCIO’s investment philosophy reflects their core beliefs and principles governing investment decisions. Beyond understanding their risk tolerance and return expectations, delve into how they integrate environmental, social, and governance (ESG) factors into their investment process. Evaluate their approach to sustainable investing, impact investing, and ethical considerations. A robust investment philosophy should be aligned with your values, ensuring that your investments not only generate financial returns but also contribute positively to society and the environment.
3: Customization and Flexibility:
Customization is key to tailoring investment solutions to your unique needs and preferences. Explore how flexible an OCIO is in adapting investment strategies based on changing market conditions, economic outlooks, and personal circumstances. Assess their ability to accommodate specific requirements such as tax considerations, liquidity needs, and legacy planning. Look for OCIOs that offer personalized advice, asset allocation strategies, and investment vehicles tailored to your goals, whether it’s wealth preservation, capital growth, income generation, or a combination of these objectives.
4: Fees and Cost Structure:
Transparent fee structures are essential for understanding the total cost of OCIO services and assessing their value proposition. Beyond management fees and performance-based charges, delve into fee breakdowns for specific services such as investment advice, manager selection, portfolio monitoring, and reporting. Compare fee structures across OCIO providers while considering the depth of expertise, level of service, and added value they offer. Look for fee arrangements that align incentives with your long-term investment goals, such as performance fees tied to achieving predefined benchmarks or objectives.
5: Regulatory Compliance:
Compliance with regulatory requirements is paramount for safeguarding your investments and ensuring ethical conduct. Verify that the OCIO adheres to industry regulations, licensing requirements, and fiduciary standards. Inquire about their risk management practices, internal controls, and governance structures. Understand how they handle conflicts of interest, disclose potential risks, and comply with legal obligations such as anti-money laundering (AML) and know-your-customer (KYC) requirements. Working with a compliant OCIO minimizes regulatory risks and instills confidence in their operational integrity.
6: Client Servicing and Communication:
Effective client servicing and communication are foundational to a successful OCIO-client relationship. Evaluate the OCIO’s client onboarding process, service delivery model, and ongoing support mechanisms. Assess their responsiveness to inquiries, accessibility for meetings and consultations, and willingness to accommodate your preferences. Clear communication channels, regular performance reviews, and timely updates on portfolio developments foster transparency, trust, and alignment of expectations. Look for OCIOs that prioritize proactive communication, provide educational resources, and offer personalized guidance to enhance your investment experience.
Selecting the Right OCIO: A Strategic Approach
After thoroughly evaluating these key factors, create a shortlist of OCIOs that meet your criteria and schedule in-depth discussions or presentations with each provider. During these interactions, seek clarification on any outstanding questions, discuss specific investment scenarios, and assess the OCIO’s responsiveness, expertise, and cultural fit with your organization or personal values. Conduct reference checks with existing clients or industry peers to validate the OCIO’s reputation, service quality, and client satisfaction levels.
Additionally, consider the long-term implications of partnering with an OCIO, including scalability, continuity planning, and succession management. Evaluate their capacity to accommodate future growth, adapt to evolving market dynamics, and navigate economic uncertainties. A strategic partnership with the right OCIO should align with your strategic objectives, enhance your investment outcomes, and contribute positively to your overall financial well-being.
Conclusion
Choosing the right OCIO is a strategic decision that requires thorough due diligence, thoughtful consideration, and alignment with your financial goals and values. By prioritizing factors such as expertise, investment philosophy, customization,fees, compliance, and communication, you can make an informed choice that lays the foundation for a successful and mutually beneficial partnership. Remember to leverage professional advice, seek input from trusted advisors, and maintain open discussion throughout your engagement with the chosen OCIO to maximize the value they bring to your investment journey.
At East Bay Investment Solutions, we provide Outsourced Chief Investment Officer (OCIO) services to financial advisors across the country through virtual platforms. We handle investment management, portfolio adjustments, and rebalancing for the advisors, so they can concentrate on their clients’ needs. We also supply educational content for advisors to share with their clients, making it easier for them to offer valuable information. This service is like white-labeled investment management, giving advisors the benefit of expert investment oversight without the hassle. By partnering with us, advisors can ensure their clients’ portfolios are well-managed, leading to happier clients and a more secure financial future.
Can Planning-Focused Financial Advisors Have More Satisfied Clients with an OCIO Partner?
In the world of financial services, referrals are the gold standard for acquiring new clients. They come with the “borrowed trust” of the referring friend or family member and typically meet the minimum AUM requirement because they run in the same circles as your current clients. With the rise of AI clogging up other forms of digital communication, the value of a referral is increasing. So, do you need to wine and dine your best clients to get more referrals? You can if you want, but it all starts with providing an exceptional client experience.
Personalized Communication
Understanding your clients’ needs, preferences, and life goals is the cornerstone of personalized communication. This means going beyond the numbers to truly get to know your clients. Regular check-ins are crucial. These can be scheduled quarterly reviews or informal touchpoints just to see how things are going.
Tailored advice based on these interactions makes clients feel valued and understood. When it comes to the client experience in wealth management, it’s about making each client feel like they are your only client. For example, if a client mentions a significant life event, like a child going off to college or an upcoming retirement, make a note of it and follow up with relevant advice and support. This level of attention builds strong, trust-based relationships.
Mario and I attended a conference last year where one of the guest speakers spoke about creating an unforgettable client experience and there was something she said that really stuck with us. She said, imagine if your client could rate you on a scale of 1-10 after every interaction, sort of the way you can do with Uber. Would that client give you a high rating? If you’re doubtful or saying no, it might mean some adjustments should be made to how you do things. Sure, maybe it is because you don’t have enough time or are busy trying to onboard that new hire or have surge meetings coming up. But think about this when you meet with your clients: “How can I get a 10-star rating every time?” Now, we know this is shooting for the moon, but hey. At least if you shoot for the moon and miss, you’ll land among the stars. Small improvements over time can make all the difference.
Streamlining Processes
Efficiency is another big one. It is the key to providing a high level of service without burning out. How are you using technology to handle routine tasks such as scheduling, document management, or logging meeting notes? Having the right technology not only saves time but also reduces the likelihood of errors.
Implementing a robust CRM system can help you keep track of client interactions, preferences, and important dates. Automation tools can send out reminders for meetings, birthdays, or important financial deadlines. By streamlining these processes, you can free up time to focus on what really matters: building deeper relationships with your clients.
Proactive Client Management
Anticipating clients’ needs and addressing potential issues before they become problems is a hallmark of exceptional service. This means staying ahead of market trends, regulatory changes, and other factors that could impact your clients’ financial well-being. But regularly reviewing and adjusting your clients’ portfolios can be a huge vampire on your time. Not to mention sending out timely updates and insights that are relevant to their specific situations. For instance, if a new tax law is about to be implemented, you may want to inform your clients in advance and advise them on how it might affect their financial plans.
But let’s be honest, this is yet another task on your growing to-do list and you already wear so many hats. And from a numbers perspective, hiring in-house isn’t always the best answer. In fact, there are fewer cases where hiring in-house outweighs using an Outsourced CIO to fill those gaps and open time on your calendar. Imagine having a go-to partner to answer questions you might not know the answer to (and won’t be able to find without hours of research). With East Bay, our clients are able to access a private library of information to use at their disposal, either for their own edification or to share with their clients. And in some situations, our advisors even ask us to sit in on meetings when they are super keen on the investment topic the client is interested in learning about. There are simply so many ways that we can support advisors when it comes to investment management and client education and support. In short, hiring an OCIO provider like East Bay is one of the most proactive moves you can take.
Creating a Welcoming Atmosphere
Every interaction with your clients should be pleasant and professional, whether it’s in person or virtual. This starts with creating a welcoming atmosphere in your office and extends to your online presence. Ensure your office space is comfortable and inviting, with amenities like refreshments and a pleasant waiting area.
For virtual interactions, invest in high-quality video conferencing tools and make sure your online portals are user-friendly. Promptly return calls and emails, and always be courteous and respectful. A welcoming atmosphere helps clients feel at ease and reinforces their decision to trust you with their financial future.
If you’re unsure if your virtual space looks professional, there are a ton of resources on YouTube about how to look like a pro on camera. With a few small upgrades like adding a ring light or investing in a microphone, you can really improve the look and feel of your virtual client and prospect calls.
Delegating and Elevating
Delegating and elevating is about focusing on what you do best and delegating the rest. For many advisors, this means concentrating on financial planning and client relationships rather than getting bogged down in the minutiae of portfolio and investment management. If you want to focus solely on planning without wasting hours on researching,, and adjusting portfolios, an Outsourced Chief Investment Officer (OCIO) might be the perfect solution. An OCIO can handle the complexities of investment management, allowing you to dedicate more time to your clients and deliver a higher level of personalized service. This not only improves your efficiency but also enhances the overall client experience. Less falls through the cracks and clients grow ever more confident in your ability to serve them.
Benefits of Working with East Bay Investment Solutions
By prioritizing personalized communication, streamlining processes, being proactive, creating a welcoming atmosphere, and embracing the concept of delegating and elevating, you can significantly elevate your client experience. When clients feel genuinely cared for and well-served, they are more likely to share their positive experiences with friends and family. This leads to a steady stream of high-quality referrals, helping your business grow sustainably and with the right kind of clients. An exceptional client experience not only fosters loyalty but also transforms your clients into enthusiastic advocates for your services.
If nothing else, our clients are very vocal about how we’ve improved their client experiences and helped them grow.
“I will say from the beginning East Bay exceeded my expectations, and I feel the value you provide to my clients has only increased as my firm has grown. My firm’s AUM has nearly tripled over (our first three years together), and I’m sure East Bay has been part of the reason why.” – David M., CFP®, Founder
In response to our communication about Silicon Valley Bank collapse
“I just wanted to follow up and let you know that we all found your timely SVB piece to be very valuable. As you know, we turned it into a blog post and sent out comms to our clients- all with a quicker turnaround than normal. We are looking forward to using more of your content as we dig more into our own marketing and communications push. Steve in particular mentioned how much he enjoyed how clearly and simply this recent piece was written.” – Aaron B., CFP®, CPWA®
If you’re ready to get back to planning and improve the great client service you’re already providing, let’s talk. Schedule your complimentary intro call to learn if we’re right for you.
Or, if you’re not sure you’re ready, simply take our “Is an OCIO Right for Me?” Quiz here.
We look forward to welcoming you into the East Bay community.
These testimonials are from current or past East Bay clients who were not compensated for their testimonials and no conflict of interest exists between these clients and East Bay Investment Solutions.
5 Key Traits of the Fastest Growing Advisors
In the dynamic world of financial advising, some advisors stand out by propelling their practices to new heights of success and client satisfaction. What sets these fast-growing advisors apart? Often, it’s their strategic decision to embrace outsourcing for investment management—a transformative choice that enhances both client relationships and operational efficiency.
Let’s explore the shared characteristics of these rapidly growing advisors and see how their innovative approaches are reshaping the advisory landscape.
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Focused Client Interactions
Imagine your daily schedule cleared of cumbersome asset management tasks, now filled instead with deep, meaningful client interactions. According to industry insights, 61% of advisors cite “freeing up time” as the top reason for using external investment management capabilities. This time saved allows advisors to focus on truly understanding and meeting their clients’ unique financial aspirations— a cornerstone for building lasting relationships and achieving high client retention and satisfaction.
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Leveraging Expertise for Enhanced Services
Fast-growing advisors often have one thing in common: they provide superior, customized investment solutions previously beyond their capacity due to limited resources. By outsourcing, advisors gain exposure to a diverse portfolio of high-quality investment strategies managed by experts. This partnership not only expands the scope of their offerings but also solidifies client trust and loyalty, which are crucial for sustaining and growing a successful practice.
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Building Deeper Connections
The best-performing advisors understand the importance of evolving client interactions from transactional exchanges to profound, impactful communications. With the logistical side of investments managed by outsourcing partners, advisors can concentrate on discussions that resonate on a deeper emotional level—about life changes, retirement aspirations, and legacy planning. This deeper engagement significantly enhances client retention and attracts new clients seeking personalized advisory experiences.
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Personal and Professional Fulfillment
The journey to exceptional growth is not only about external achievements but also about personal satisfaction. Outsourcing markedly improves advisors’ work-life balance, with 95% reporting reduced stress and more time for individual pursuits. This balance is crucial for maintaining passion and dedication in their professional roles, ensuring that each day is productive and fulfilling.
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Proactive Adaptability
Advisors who experience rapid growth are often characterized by their ability to quickly anticipate and adapt to market changes and client needs. They use the insights and support gained from their outsourcing partners to stay ahead of trends, offering proactive solutions that address both current and future financial challenges faced by their clients.
A Strategic Path Forward
Becoming a top-performing financial advisor involves a blend of innovative practices, deep client commitment, and operational excellence. The fastest-growing advisors leverage these elements to meet and exceed their clients’ expectations, setting new benchmarks in the financial advisory sector. As the industry evolves, embracing these strategies could be your key to unlocking exceptional growth and client loyalty.
For advisors poised to elevate their practice, exploring a partnership with a leading outsourcing firm might just be the catalyst needed to join the ranks of the fastest-growing advisors in the industry. If you’re ready, let’s talk.
Unlocking Your Potential: The Power of Outsourcing in Revolutionizing Your Advisory Practice
Imagine a world where the role of a financial advisor is no longer defined by the daily operational burdens that consume their time but by their ability to connect with and deeply impact their clients’ lives. This is the transformative potential of investment management outsourcing, a strategic shift that liberates advisors from mundane tasks, allowing them to focus on what truly matters—their clients.
Tailoring Your Practice for Greater Impact
Picture this: a workday without the burden of back-to-back administrative tasks. Instead, you have scheduled deep-dive sessions with clients to explore their long-term visions. Outsourcing the technical functions of asset management liberates you to concentrate on developing tailored financial strategies that closely align with your clients’ aspirations. This not only simplifies your operations but also elevates your role from a financial advisor to a trusted life advisor.
A recent Deloitte survey supports this transformation, highlighting that most organizations experience enhanced operational efficiency and better resource allocation through outsourcing. This efficiency isn’t just about doing the same with less; it’s about doing more with what you have—redirecting your time and efforts towards what truly adds value to your client relationships and personal satisfaction.
Elevating Client Service with Expert Backing
Now, imagine the confidence of consistently offering top-tier, customized investment solutions without having to think about resource limitations. Outsourcing provides access to a broad spectrum of high-caliber investment strategies managed by experts. This capability not only enriches your service offerings but significantly strengthens the trust and loyalty of your clients, providing them with peace of mind and satisfaction that their financial futures are in capable hands.
Transforming Operations with Strategic Outsourcing
Envision an operational structure where efficiency and effectiveness are the norms, not the goals. Outsourcing streamlines your business processes, reducing operational and financial advisors cost and enhancing compliance protocols. This strategic shift allows you to allocate more resources towards growth initiatives, such as market expansion or service diversification, setting your practice apart in a competitive industry.
Deepening Relationships Through Focused Interactions
With the logistical load managed by your outsourcing partner, your client meetings can now delve into deeper discussions about life changes, retirement plans, and legacy goals. This shift from transactional to meaningful interactions can significantly enhance client retention and attract new referrals seeking a more personalized advisory experience.
A study by DALBAR Inc. supports the importance of these deepened interactions. During the market volatility following the COVID-19 crisis, 86% of investors reported increased confidence in their financial advisors who maintained proactive communication. Additionally, 87% of these investors said they were more likely to retain their advisors, underscoring the critical role of engaging meaningfully and regularly with clients, especially during challenging times.
This enhanced engagement enriches your relationships, boosting client retention by demonstrating that you are not just a financial advisor but a committed partner in their financial well-being.
Redefining Personal and Professional Satisfaction
Finally, imagine a career where personal satisfaction and professional achievements are not in conflict, but rather complement each other. According to a study by an independent research firm, 95% of advisors reported having a better work-life balance as a result of outsourcing. This statistic emphasizes the fact that outsourcing allows you to free up your schedule and reduce stress, leading to a healthier work-life balance. This newfound balance can rejuvenate your approach to work, improve your client interactions, and reignite your passion for your career, making each day more fulfilling and impactful.
Embracing Outsourcing for a Future-Ready Advisory Practice
The shift towards outsourcing in financial advising is not just about keeping up with industry trends—it’s about pioneering a movement prioritizing effective, client-centered service. For advisors considering this strategic transformation, the partnership with a seasoned outsourcing firm like ours doesn’t just promise enhanced operational capabilities—it offers a reimagined way of doing business that places client relationships and advisor satisfaction at the forefront.
For advisors ready to step into this promising future, exploring a partnership with a leading outsourcing firm could be the next pivotal step in your professional journey. Let’s talk.