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 there are 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. And as a reminder, and you heard it on the announcement, and in a favor to all of us, please do silence your phones and devices at this point. 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. So 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 from Broadridge's leaders.
A couple of administrative notes here. We will be taking two 10-minute breaks this morning, first after the governance session and second after technology. And then finally, we are gonna 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 gonna open with a short video, and then we'll hear from Broadridge's Chief Executive Officer, Tim Gokey.
We are an essential technology partner.
Helping our clients and industry operate, innovate, and grow. At Broadridge, we connect the financial world.
We are leaders in corporate governance.
Investor communications.
Trusted-
And transformative-
For our clients.
Creating new ways for investors to engage and participate.
Enabling over 800 million shareholder positions globally.
To have their voices heard.
Processing more than 7 billion critical communications each year.
Quite simply, we enable the entire trade life cycle. Front to back, across asset classes, globally. When the stakes are high, we're trusted to deliver securely, accurately, and efficiently.
We clear and settle $10 trillion every day.
Our expertise and technology is simplifying and fundamentally changing the way markets operate.
With our breakthrough modular platform, we are accelerating digital transformation-
For wealth managers on their terms.
Driving growth-
Improving advisor productivity
Reducing risk.
We are moving our industry forward.
Through our unmatched scale-
Our unique vantage point-
Our obsession with client-focused innovation-
Through the power of our people.
A diverse global network of voices-
Of expertise, powering change and empowering partners.
Relentlessly in pursuit of what's next.
All right, it is great to see you. Great to see you in person here today. Thanks also 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 two as CEO. 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 gonna 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 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.
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. 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. Through all of that, we end up knowing almost every position of every investor in North America. Now, this is our client's data, but holding it on their behalf gives us a trusted position. 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 scaled business at the intersection of wealth managers, capital markets firms, corporate issuers, and asset managers. 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 to 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 enable the 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.
We have become a trusted partner to our clients by focusing on critical services behind the scenes to ensure a 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 15 x 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. Our market opportunity has grown 30% since we talked to you three years ago in 2020. That's been fueled by a combination of underlying growth in each of those individual markets, by the acquisition of Itiviti, which added to our total addressable market, and 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 spend well north of $200 billion on the services we provide, and that spend is growing at roughly 5%-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%-9%. Broadridge is one of only a handful of players that can meet the complex needs that our clients have.
We've called this whole trend in the past mutualization, and it's 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 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 2.5 x 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 three-year financial objectives at our last three 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 five powerful long-term demand drivers. First, the democratization of investing continues to drive the growth of our governance and wealth management businesses.
Falling 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 zero-commission trading. That's driving position growth and investor engagement in governance and the need to modernize in wealth. Second is the digitization of communications. 25 years since email 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 affluent investors who've 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+1, and plans are already being discussed for T+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. Ever-decreasing costs of compute and storage have enabled companies to leverage growing lakes of data to guide decisions, operations, and products. Now, with 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 five 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. And this creates an opportunity to share the benefit with our clients, gaining faster time to market and lower costs, 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. Three 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've scaled our regulatory business. Today, we serve 50% more positions than we did in fiscal 2020, 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 three years ago. We've grown our digital revenues and 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 advisor productivity, and digitizing operation.
Lastly, we expanded our operations by and more than doubled our revenues in the past three 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 three 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, we'll 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 omni-channel Customer Communications, in our data-driven solutions for asset managers, and in 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 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 broader 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 will 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.
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 adopt best practices 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 an 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 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 should 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 three years, we have made significant investments to help fund the build of our Wealth Platform and with the acquisition of Itiviti, 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 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 with 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 six 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 his 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, my strong partner, especially on the revenue side of the business. Dipti Kachru is our Chief Marketing Officer.
She joined us two years ago from J.P. Morgan, 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 three 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 acclaimed companies that bring fresh perspectives, and, 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.
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 three years ago. Second, our market has grown, and the growth drivers that I talked about, including democratization and digitization, have become even more apparent. Third, and most importantly, we have evolved Broadridge.
Our governance business has a differentiated position and 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. 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%-9% recurring revenue growth. With the operating leverage of being a technology company, we can use that to drive earnings growth at 8%-12%.
Through the cycle, add 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 three Investor Days, and that's what we expect to deliver for the next three 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 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 then we'll do Q&A.
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 in 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 six years, where I first led our strategy and 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.
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.
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 was really our very first Investor Day. Since then, and prior to becoming Co-President of ICS with Mike, I've run several businesses, including our proxy business, prospectus business, our Customer Communications business, and I've 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 Communication 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. 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. 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.
For example, we deliver data-driven fund solutions, enabling asset managers to grow and retain their 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. We're transforming omni-channel communications in the financial services sector through next-generation digital capabilities while optimizing print and 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 2023, we recorded $2.5 billion of recurring revenue. That reflects a five-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 four businesses within ICS. Mike and I are going to dive deeper into each of our four 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 it 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 and 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 and intermediaries, and financial advisors, 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 scene. 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 de-risking 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 efficient. 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 our 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 2020, 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's a significant increase and 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. We're ISO 27001 and STAR Level 2 certified to the highest security standard certifications in the industry. We do all 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 robotic 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 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 challenge the status quo daily on the customer experience, and regulations have given us the 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 know that in the regulatory segment, the same can also be said, because we've grown an average of 12% over the previous five years on average, and we've seen consistent growth coming from two areas, and we're going to dive into these two 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, our processing, voting, and distribution fees are based on the number of positions that we process. If you own 1 share of Amazon or you hold 100 shares of Amazon, that's one 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 annualize. So equity position growth, 10-year average of 11%, and this reflects direct ownership of shares in public companies. And 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 2021 and 2022 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, it's worth noting that since 2007, and that's even during the 2008 financial crisis, when consumer sentiment and 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 and funds of 9%, and you see that here as well.
And you see that of that 9%, 2-4 points came from more investors in the market and five to seven 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 three years. So we're going to go into some detail and just build out these building blocks of 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, you know, an 18- or 20-year-old may not have a lot of money to invest in the market, but a, a position triggers the same communication, whether it's, you know, 10 shares or whether it's a 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 advisor-based account and a self-directed online account as well, maybe two. 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 like 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 2-4 points coming from more investors in the market and 3-5 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, and the bottom line is information on the number of U.S. families holding stock. I think the takeaway on this is that 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 2-4 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. 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. 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's going to talk about in a little bit. All right, so there's a couple trends here. There's two 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%-6% annually in 2019 and 2020, 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, 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 need to navigate them.
Given our focus on governance compliance, we're in the catbird 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 on the previous slide. 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. You know, class actions recovery was an opportunity we identified a few years ago in the fiscal year 2020. 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'll be $40 million a year by the time we get to the next Investor Day, and it represent, it represents a billion-dollar 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. Three 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 Shareholder Reports is creating additional opportunities as well because of our next-generation composition capabilities and automated data tagging capabilities.
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 omni-channel business. Three years ago, at the last Investor Day, the combined recurring revenue from our fund issuer and omni-channel 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 that growth was essentially all organic. Collectively, we have four 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 five-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-price products are creating real margin pressures. Broadridge's data-driven fund solutions businesses addresses our clients' needs through two sets of solutions, Global Distribution Insights and Retirement Technology and Analytics . Our global distribution insight 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 four 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 their revenue, manage their expense, and adhere to regulations. And then fourth, and finally, with AI-powered analytics 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 it, to fund managers. 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 advisors, 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. Then lastly, we enable advisors 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. Our success is clearly reflected in the financial performance of this business, which has experienced a 5-year growth rate of 16%. 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 three types of solutions: data and analytics, to better understand their shareholders, composition and disclosure solutions that generate compelling content, and omni-channel engagement tools that maximize the benefits of shareholder outreach. Let's talk a little bit about the complexity a corporate issuer faces as a result of being a publicly traded company. They have so many compliance obligations, with penalties for errors or non-compliance. 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. This is going to add more disclosure requirements to both new and existing documents. 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.
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, by providing them with visibility into their shareholder base. We build critically important composition services and tools that enable issuers to meaningfully connect with all their shareholders. We provide issuers with omni-channel solutions to communicate with their investors and to drive meaningful engagement. 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-to-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, last and final business that we're going to cover within our ICS division is our Customer Communications business and our trend to transform omni-channel communications. Our fiscal year 2023 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 this 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 and the margins of our digital business.
For those of you with us at the last Investor Day, you'll be familiar with the three 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 in print and industry-leading digital capabilities, and therefore, we've become widely recognized as the leading provider of omni-channel 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 omni-channel 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. I'm going to show it in a little bit.
We're live in market with that, and we call it our Wealth InFocus experience. We've also created a targeted experience in fund interim communications, and so that when you get an email, you open it to see pushed, relevant, easy-to-digest information, instead of just having to access a link that takes 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 open it up and you look at it, and you're like, "Ugh, let me call my advisor to help explain it to me." You know, 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 InFocus 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.
The InFocus platform reimagines regulatory and transactional communications for an omni-channel world. Extensive investor research and hands-on client feedback have shaped the design of this holistic platform. InFocus transforms digital and print communications to increase investor engagement with a simple, intuitive, and actionable experience, one that empowers investors and enhances their relationships with their advisors and the firm. Streamlined account views make it easy to understand holdings and transaction activity. Simplified access to disclosures and documents, such as Tailored Shareholder Reports, saves time. Seamless connections to proxy voting and corporate actions allow investors to quickly express their views and interests and easily take action all in one place. InFocus has proven to significantly enhance engagement. It produces 3 x the click-throughs and 10 x the account information views compared to industry norms.
It continues to be recognized as a game changer for investor communications by the industry and our clients. With this modern communications platform, firms are raising their Net Promoter Scores, reducing cost, and driving growth. Above all else, they are solidifying long-lasting relationships between investors and advisors. InFocus, only from Broadridge.
...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, recognition as a digital leader in financial services around digital experiences, especially when compared across market impact, vision, and capability. If you're wondering where Broadridge is on this slide, we're in the upper right corner, next to Adobe and Salesforce. You know, as nice as those accolades are, though, here's the real benefit. Clients are seeing significant savings and better digital outcomes. We've got a few instances of Wealth InFocus ongoing right now, and clients are saving $ millions 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, 3 x industry averages on click-through rates, and 10 times the industry norm in terms of the amount of investors that go and engage with the underlying statement. Those are fantastic statistics and results. 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 it 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 three 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 and 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 and 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 four 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.
... Our presentation today. If 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 gonna have a short video. Thank you.
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.
Capital markets firms' 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 firms 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 to 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 costs of industry change. We're driving innovation with the application of powerful artificial intelligence and distributed ledger technologies that will profoundly shape our industry.
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 2023. 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 in our Broadridge Trading and Connectivity Solutions. BTCS marked our entry into the trading and connectivity market and expanded our presence in EMEA and APAC.
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 and 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 Ledger Repo platform that combines smart contracts and digitized collateral is currently processing over $1 trillion a month of tokenized repo contracts. 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.
This is really important to consider, as banks often reallocate the spend to vendors as their priorities evolve. I'll highlight four 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 banks' existing technology platforms are running legacy tech, and banks realize this needs to change. Data from Celent suggests that two-thirds of global capital markets firms are planning to modernize critical systems in 2023.
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. 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. This has steered our approach towards developing modular solutions across the trade life cycle.
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. Shorten settlement cycles will be adopted globally over time. The U.S., Canada, and Mexico are moving to T+1 in May 2024. Momentum is building in Europe and in the U.K., and India is already settling at 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, at the top of this circle. The order then passes into the broker-dealer's front office order management system, or OMS, for trading and execution. The OMS assists 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. An 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 investor 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-dealer's 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.
An accelerated settlement puts even more pressure on these processes that are already challenged, given the current fragmentation in 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. This is where we distinguish ourselves as the market leader. Within this context, our strategy is focused on three 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. Our innovations using cutting-edge transformative technologies ensure 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 FIX network with around 17,000 touchpoints 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's 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 cleared derivatives. For example, we're going live with a major client in the U.S., displacing a key competitor in the order management space.
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 patterns. This modular approach makes the 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 five 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 firms simplify, become more efficient, and become more resilient. 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 a foundation of normalized data, we streamline the trade process, minimize reconciliations and data breaks, and increase efficiency. These are just some of the many benefits created through an interoperable, modular, multi-asset, front-to-back offering. 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 increase 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 spawning 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 questions 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 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. 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.
Broadridge is empowering firms with transformative technologies. Our award-winning Distributed Ledger Repo platform creates synchronicity across client workflows to simplify investing in the $10 trillion global repo market. The platform unlocks new opportunities for firms to increase liquidity and collateral mobility, drive operational efficiency, reduce counterparty risk, and realize millions in cost savings. AI's power is no secret. It's pivotal to forming a future-proof, competitive edge. We've created a robust AI toolkit that enables firms to discover greater insights, efficiencies, and more. BondGPT answers complex corporate bond questions in seconds. It provides pre-trade transparency and slashes time spent on data assembly, alleviating data privacy concerns through AI-driven controls developed in close partnership with our clients. OpsGPT shatters the silos between data sources so firms can view settlement status in real time and resolve exceptions in seconds.
With in-depth insights in hand, users can better manage post-operations risk, tracking, forecasting, capacity optimization, and research, even as trade volumes grow. At the heart of global markets is a unified multi-asset OMS. This award-winning trading platform fuels innovation, efficiency, and agility. Sophisticated automation and workflow functionality support thousands of sell side traders with high touch, low touch, portfolio trading, and market making. A modular technology stack integrates seamlessly across front, middle, and back offices throughout the entire trading life cycle. Experience unparalleled digital innovation, only from Broadridge.
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. ... We're seeing our clients increasingly look to trusted third parties instead of building in-house. 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 One U.S. banks, global Tier Twos, 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 One 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 lifecycle. 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're 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...
I should 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, 'cause 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've 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 gonna 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 gonna 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 what the key topics we have: how we have a leading position in North America, a leading position. How we have the platform that is gonna power our clients going forward.
... Three 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 advisor productivity with our solutions. And third, how we are digitizing operations for our wealth clients across their enterprise. Now, those first two 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 a 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 op 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 on 12, reasonable market share, but not enough yet. Now, I thought back about the highlights over the last three or four years, since our last Investor Day, and I have a few for you. First off, our advisor tools have dramatically increased in where we are in the market, and we've got great momentum in digital marketing, and I'm gonna 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 our opportunities in the marketplace, and our pipeline is growing and our 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 US and in Canada. Indeed, five of the top six largest 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. 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 one, two or many components in there. I say that for two 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's this mean? Well, this highlights our strong industry position and leadership that we bring to the table every day of the week.
We're gonna move now to the market dynamics, and they're quite interesting. They're evolving and, very key here, 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 digitalization, and compare that to client needs. They want to differentiate their offering, they want to attract and retain top advisors, and they want to transform operations and technology. We have complete alignment. Advisors equally need to be adaptable. There's change coming. Competitive pressures on fees, commoditization of existing app, 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 advisors' clients are women, and statistically are likely to switch advisor when they get possession of the portfolio. So that demands, it needs advisors 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 it earlier. Regulatory is always out there, but there's been a shift here a little bit into protecting and helping the investor. And let me give you an example here of the Tax-Free Home Buyers Initiative, which is a mouthful to say, and I got through it, in Canada. We were first in market here. So 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 earned the clients, and they moved forward. Really strong. But why did 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 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 advisor needs and digitizing operations.
Now, I did mention one or two 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 one 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.
I'm lucky to say that Tyler's coming up next, and Tyler's going to go in depth in 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've 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 one component, two 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, those new components that come from our recent platform build phase, we've already sold one 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 advisor. We have a brand new advisor workstation with the latest tech. It looks incredible. You may see it later. We're deploying all our capabilities into that workstation, plus the client capabilities and third parties. 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 one or two components in place with a, 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 come from our recent platform build phase, but we had 20 existing components already. Some examples of those are client onboarding, digital marketing, advisor 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, it can work in many configurations. So you've heard already that we can deploy all this within our advisor workstation.
But let me give you another example of what we do. So in October of this year, we signed an agreement, a partnership agreement with Salesforce, and we are putting those components, those 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 earliest 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 will experience what our clients see, our advisors see, and our prospects are seeing every day of the week. So with that, let's roll the video.
Firms ready to modernize will welcome the Broadridge Wealth Platform. Today, leading wealth management firms benefit from our future-ready digital platform. Some take a modular approach, while others have adopted the full platform. Here's how it works. Right from the start, advisors get a complete view of client activities. They can easily customize this page to suit their businesses and drive productivity. The platform's configuration capabilities allow advisors to turn these modules on or off based on their preferences. Our API-friendly design lets wealth firms integrate Broadridge modules with their proprietary solutions, as well as other third-party vendors and partners. Right now, we integrate with over 200 applications to improve the advisor experience. These enhanced tools help service and grow client and prospect relationships, as well as add workflow efficiencies between the front and back office.
Keeping on top of service requests and priority actions without manual effort is critical to productivity. Advisors and their teams can easily submit requests such as money movements, account transfers, and client updates. They can see the status of outstanding requests to provide full transparency. Advisors can also view and act on leads generated from their website or social media. They set up the campaign tool once, and it continues to deliver content and capture new leads automatically in the background. Advisors can leverage Broadridge's Financial Literacy Library, the largest of its kind. Updated every hour, this Broadridge curated content offers the relevant content advisors and clients want and need. Advisors can now prospect and personalize investor experiences by sending AI-recommended content to their clients quickly and at scale. Tracking compensation and incentives is important to every advisor. Today, over 50,000 advisors view their compensation through our platform.
Each modular tool can be leveraged regardless of firm's current back office technology. The client dashboard aggregates data available for the full household and offers a client-centric view to the advisor. To maximize productivity, the advisor will get a complete 360-degree picture, whether the assets are held with the advisor or away. We also put valuable real-time information at the advisor's fingertips. We've created a reimagined client statement. This concise, elevated communication increases engagement and personalizes the client experience. This is a brief view of the many capabilities available from the Broadridge Wealth Platform. Our suite of innovative, market-ready component solutions delivers what's top of mind for every wealth management firm. The Broadridge Wealth Platform.
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 it if you want to. Now, on to the three core themes we talked about earlier: personalizing investor experience, optimizing advisor 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 three presentations. So on to personalizing the investor experience. Now, our objective here, our need here, is to help the advisors 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 mail shots. 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, their holdings, their recent activities, and their overall profile. It curates a next recommendation of content, and that content comes from a very special source, the largest library of regulated 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. It's then time for the advisor 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. It's powering the advisor's ability to generate business.
Other key examples of what we're doing here: performance analytics, tax reporting, advisory, self-service, and suitability analytics. One call-out, I'm going to go link back to Doug's presentation over there. Doug talked about the InFocus platform. The InFocus platform is digitizing in 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 advisor productivity. What's a good example of advisor productivity that we're powering? Well, a great example is that desktop, that advisor 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. Now I'm going to jump to three other quick examples I think what you will relate to. Account onboarding.
You want to onboard a client if you're an advisor, 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 our advisors…. We're doing that with that solution. It's very popular, and it's allowing our advisors to unlock liquidity and offer new products to their clients. And finally, billing. We have transformed billing for two major wealth firms, allowing them to transform how they bill, 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 advisor productivity, they boost revenues, or for the wealth firms themselves, they allow them to attract and retain key advisors.
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 around productivity that's 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 services 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 the way 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 four archetypes here. First off, we have a cluster of fintech startups.
They are normally focused on a single use case to solve one problem, and they're potential partners for us going forward to put into our advisor workstation. Number 2 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 one more point, probably quite a key point. Critically, our platform modernization is not ahead of us. No, 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 depth, and the talent that we bring to the table every, every day. We're now going to move to the marketplace. We talked earlier about it being a $60 trillion assets under management market today. That's driven a lot of growth for our clients, absolutely, through those three 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.
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%-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 Cerulli do indicate that RIAs will win share over the coming three 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 three 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'm 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've had 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 relationships with partners.... We now have 30+ 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. In terms of engagements, we have strong engagements out there with firms who are looking for the entire suite. 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 us forward. As I pointed out, once we're into the firm with one or two components, it is easy for us to add on with that 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-$30 million in annual sales value we expect to create from this Wealth Platform. And we're creating wins and opportunities through 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 one place, both 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 advisor 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's going to talk more about the technology transformation and the technology infrastructure we have. Thank you very much.
Broadridge is really an awesome place to be a technologist. We have this unbelievable network that allows us to test new concepts and ideas very, very quickly.
When you marry that with a deep understanding of our clients' needs, what they need today, but also what they need in the future, that's when the magic happens.
As the Chief Architect, I spend a lot of time thinking about innovation as something that can be scaled. How do we take a complex problem and leveraging a disciplined process to be able to iterate and experiment? That's why we have so many successes.
BondGPT is a great example of this type of innovation. We use AI to do pre-trade analytics in a way that's never been done before in the industry, and now that's available to all of our clients in the palm of their hand.
Because we are always talking to all stakeholders, we know what they're looking for, and we infuse that into all of our product innovation. A great example is the ProxyVote app, where we're servicing our clients by making their clients' lives easier and enabling them to vote on an app, so bringing the proxy process into this century.
We have very deep financial services industry expertise. Our clients trust us with mission-critical processes, and that allows us to drive innovation in the marketplace. When we started on that journey to transform repo market infrastructure, we realized that the introduction of smart contract technology and tokenization would allow us to simplify the repo process, increase collateral mobility, and reduce costs of the entire process.
Our wealth solutions, where we've created an advisor platform really focused on the needs of how does the advisor work? How do we provide as much information in an easy-to-use experience, so they can interact with it how they please and personalize their specific needs?
Client-centered innovation really is truly understanding the client need and being deeply empathetic, not on the solution, but the actual problem.
Starting in a place where you can bring immediate and significant benefits for your clients.
The level of ambition and conviction that our team here has to solve global-scale financial technology problems excites me and excites all of us. That's what myself and all 15,000 of the associates at Broadridge wake up every morning to do.
Good morning. I'm Tyler Derr, and I wanted to talk to you a little about bringing that video to life. You know, 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. 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 in 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. As you can see here, you know, look, our clients depend 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 establish 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 four 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 a CTO, and over the last year and a half, 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. 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. They also want a 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 systemically 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 mutualized 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 employ 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 the lead when it comes to innovation in AI. You've heard a lot about that today. You know, 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're making our products more accessible to clients in a very secure way that protects our intellectual property.... 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. 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 the tech into fintech. The ethos of our technology strategy can be summed up simply in the words you see on the left. 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 and 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. 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 risks facing the industry, and we pass those benefits on, 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 heard 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're unlocking data into inform decisions, accelerate innovation, and can really have a competitive differentiation as a result of it. It's at the heart of really our innovation, and through that harmonized 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... You know, 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. 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, you know, Vijay mentioned earlier, we launched BondGPT, a natural language interface powered by GPT-4. It responds to complex bond-related questions and assists 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. 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 and 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 advisors 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 OpsGPT. 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 as a powerful, knowledgeable assistant to back-office operations departments and 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 T+1 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 context, allowing us to enrich, analyze, and contextualize data for our clients. We couldn't be more excited about how this is going to transform our clients' operations. In conclusion, I want to reiterate really three main points. We're a true fintech leader, serving the majority of the world's globally systemically important banks with mission-critical capabilities that 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. 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, a fourth franchise, but we're going to take a quick 10-minute break. Thank you.
Hello again. If I could ask everyone to find their way to their seats, we can begin the third act, as this is a produced event, so get all these, use all these theater terms. We're in the third act of this, hopefully, the most exciting. And we're gonna kick it off with a short presentation from our go-to-market team, in particular, led by our president, Chris Perry, and our Chief Marketing Officer, Dipti Kachru. Thank you.
Our partnership with Broadridge is not just a contract, it's not a transaction. As I said earlier, we rely on Broadridge to bring domain expertise, to work alongside us to solve the challenges that we face. So it's a collaborative approach, and it's a journey. So I would say as needs arise, we bring Broadridge in to assist us in, you know, generating the ideas that are going to solve the problem.
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 Halleran, Chief Operating Officer at Hilltop Securities, 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've spent over 30 years in financial services and technology. The first 10 as 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 JP Morgan a little less than two years ago. A business leader with over two 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 in go-to-market. She plays a pivotal role in powering our brand globally, amplifying our reputation, and she works in concert with our sales 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 JP Morgan, 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 two 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 base 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 three 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%-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, 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 six largest Canadian banks. In fact, we serve nine of the 10 custody banks, and actually, we're working every day to try to get that 10th 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 with 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, as David Hallerin said, many of the CTOs we work with now, we often are working with CMOs in the Wealth InFocus and digital experience.
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 earn the number 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. In this effort, a 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, we're also highly associated with the five things that clients tell us drives choice.
This value proposition of being trusted and transformative is what drives demand and gives us our differentiation. 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. 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, multi-product relationships. But don't take our word for it. Let's hear one of our global clients have to say about their partnership with Broadridge.
We partner with Broadridge because their solutions, backed by extremely high service standards, help us drive efficiency and innovation in our business. Their global scale and deep industry expertise help us improve our operations, respond to market and regulatory changes on a global scale, and most importantly, enable us to grow our business.
These, our clients' own words, are the greatest endorsement of our value proposition. 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. Given our scale of relationship with a lot of these clients, we're 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. In that, 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, to our portfolio, and we grow in global markets.
The strong effort and market position is fueled by 400+ 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 all saw some of those accolades on the screen during the break. We've also invested in building a strong, curated digital experience. 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're 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, we have a lot of runway on a path to $60 billion. Now, I want to call out one growth area in particular.
When we spoke to all of you three years ago, we were 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 and inorganic 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.
Very importantly, it's expanded our presence in EMEA and APAC, adding 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 why 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 three-dimensional coverage model incorporates great expertise from those segment and product teams. Then the account teams are building powerful relationships every day. They're deeply understanding our client strategies.
We meet our clients' needs on both a regulatory and a 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're 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 are as big as 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. You know, 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 a developer on our technology team, CEO, or me, we're committed. We've also been very intentional in creating client listening posts. Tyler talked about the 200+ 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 client's mind helps us shape our product roadmap.
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 one of the largest global investment banks.
Over the last five 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?
Yeah, 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 non-cash 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 longstanding 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 expansive suite of innovative solutions all come together as a big differentiating advantage. We reviewed 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 three years, and as Tim said, very far into the future. In a moment, you're gonna hear from our terrific CFO, Edmund Reese, and he's gonna 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.
Hear what Harry Temkin, Chief Digital Officer at DriveWealth, a very fast-growing digital broker, recently said about Broadridge. Thank you.
It has been a phenomenal partnership. We couldn't be happier with the decision that we made to come back to Broadridge, and we look forward to this partnership over the many years to come, and expect between the two of us to continue to grow both our businesses because of it.
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 three years ago, right at the last Investor Day. And I remember in those early months being asked about my focus, my immediate focus as 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." With the success that we've had through fiscal year 2023, right on track for 100% free cash flow conversion in fiscal year 2024, 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 in line 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? Those are questions I often hear, and hopefully, you heard the answer to them today. My key messages 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 in 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. Moving forward, we are focused on high return growth investments that increase the ROIC for the enterprise moving forward. As a result, we see a path to continued steady and consistent growth over the next three years and beyond fiscal year 2026.
So with that, let's begin, and I'll begin with the financial model. The Broadridge in 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%-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%-12% Adjusted EPS growth.
And it'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 2023. 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 and 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 three-year objectives. And when you look at the performance over the last three-year cycles, you see 14%-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 2020-2023 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, and 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 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 2023. 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.
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. 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 lifeblood of our growth. 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, in that it shows the consistent contribution to recurring revenue growth from converting new sales, 6 points or higher over the last 10 years. What is 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. 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. That market opportunity is benefiting from continued growth in invest- in the investments there. It's also benefiting from displacing in-house proprietary solutions and transitioning that to scaled third-party providers. So the portion of the market that is served by the third-party providers is growing at an even faster, high single-digit rate. There's a long runway for continued closed sales here.
Our track record of taking that market opportunity and converting it to closed sales demonstrates tangible growth. You look 10 years ago, and we had just over $100 million in closed sales. We think about fiscal 2024, 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%-9% recurring revenue growth that I just mentioned. In fiscal 2023, 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%-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 take it, 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 position growth, measuring the holders of equity and fund solutions in our overall business, and it's a 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. 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%. 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 two 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 2024-2026, our fiscal year, we anticipate 2-3 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 2025 and 2026, 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 set, 5-7 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 2-3 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%-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 an M&A can vary year to year.
But as we look over the three-year time period, we should see up to an additional two points of contribution, driving total recurring revenue growth to be at 7%-9%. I'll complete the revenue discussion and briefly touch on event-driven revenue. 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, contests, 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 2024, we anticipate $230 million-$250 million in event-driven revenue, and I'd expect similar levels over the 2025-2026 time period.
That's right in line with our seven-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, what, 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. 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. Most importantly, we have a long history of being able to fund investments while still expanding margins. 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 three years, our reported margins have been impacted by two 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 three 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 three years, float income together has contributed over 50 basis points, primarily driven by the aggressive rate tightening cycle by the Fed in fiscal year 2023. So the net impact on reported margins from those two 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 three years. In looking ahead to the next three-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 two 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 50-70 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 20-30 basis points in a typical year. Finally, the continued disciplined expense management. Over the last three years alone, we've right-sized our real estate footprint, we've realigned our businesses and management teams, and we've been able to find efficiency in the technology costs. 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 three years and above, and beyond.... Those levers allow us to fund investments, expand margins, and deliver earnings right in line with our objectives. 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 this chart shows is that in 2014-2019 time frame, we had more inorganic investment. We were focused on high return, tuck-in M&A to strengthen our proprietary 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 2020-2023 time period, we saw elevated investments and lower free cash flow conversion as we built 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 2023, so our Q2 2023, there was a significant drop in the amount of client platform investment.
Actually, in our most recent earnings call, we demonstrated trailing twelve months free cash flow conversion of 103%. As we look forward, for 2024 through 2026, we expect free cash flow of approximately 100%. As a growth company, that level of free cash flow allows us to invest to sustain that 7%-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. 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%.
Our capital allocation model is, again, balanced between making growth-oriented investments and returning capital to shareholders. In the fiscal 2014-2019 time period, the organic and inorganic investments largely equaled the capital that was returned through dividends and share repurchases. More recently, in the fiscal 2020-2023 time period, the dividend was the primary component of capital return, and we were more weighted towards investment, successfully strengthening our capital markets franchise with the acquisition of Itiviti and building out 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 2024, we see less opportunity for M&A that meets our high return, so we expect more capital return. I'll highlight that the share repurchases in Q1 of 2024 is the first step in that direction.
Looking further ahead to 2025 and 2026, we expect more balanced capital allocation, again, as we focus on growth investments and returning excess capital and dividends to shareholders. Let me quantify the strong capital position and the expected capital allocation over the next three years. For the fiscal 2024-2026 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 began, 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 a combination of continued disciplined capital allocation, growing returns on the BTCS investment and the platform builds, combined with steady 8%-12% earnings growth, will increase ROIC to a mid- to high-teens level over the next three years. Looking ahead, we are reaffirming our full year guidance for fiscal 2024 across all the key metrics: recurring revenue growth, adjusted operating income margin, adjusted EPS growth, and closed sales.
With our strong start to Q1, we have even increased confidence in the full-year outlook. I'll conclude my remarks with the three-year financial objectives, which was released earlier this morning in a press release. We expect total recurring revenue growth, constant currency, at 7%-9%, driven, as I noted earlier, by 5%-8% organic recurring revenue growth. We expect that level of growth, organic growth, across all three of the franchises. I would note that the midpoint of 5%-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 + in annual AOI margin expansion, excluding distribution revenue and float income.
You combine those things, the strong recurring revenue growth, the margin expansion at a flat tax rate, gets you to our expectation of 8%-12% adjusted EPS growth. This should, again, sound very familiar to you when you think about our objectives over the last three investor cycles and our performance over those three 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-teens level over the next three years.
Fourth, we are well positioned to deliver on our three-year objectives, and the combination of those four things positions us to continue to drive top-quartile shareholder returns. Let's bring Tim back up on stage, and then we'll go in the 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 three-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 it's an accident. We delivered on our objectives, really, based on three 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 on 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 three years from now, we'll be showing how we did deliver on 5%-8% organic growth, on 79% recurring growth, on an 8%-12% adjusted earnings growth.
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 ten years is going to be just as exciting and productive as the last ten. Thank you very much for the interest that you're taking in everything that we're doing. Thank you very much for being here today, and, we look forward to Q&A. Eddie, can you describe how that's going to happen?
Thanks, Tim. So we're just gonna set up for Q&A here. The next 2 minutes, we're gonna have the team come up. They're gonna be providing here. Greg Faje and I, from the investor relations team, will have a mic, so please raise your hand. If you'd like to ask a question, we'll do our best to answer all the questions that are in there. I would ask any individual person to perhaps limit their questions to 2, so that we can get a full representation from the audience. So we're gonna take a minute to set up. Greg and I are gonna get our mics, and then we'll go ahead and kick off. Thanks.
Perfect. Okay.
David Togut. David Togut with Evercore ISI.
Wait. Not quite?
David Togut with Evercore ISI.
Keep working on it.
There we go.
Thank you. Togut with Evercore ISI. Appreciate the comprehensive detail and analysis presented today. It was extremely helpful. The most notable change in your new three-year guide, obviously, is the higher organic recurring revenue range, 5%-8% versus 5%-7%, historically. Edmund, yeah, you talked about the strong start to fiscal 2024 being a contributor, but you also seem to be guiding a little higher in terms of the contribution of stock record growth, 2%-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?
Yeah, Dave, I'll start on that, and I'll let Edmund join in. First of all, what he was saying at the end there in that 2-3 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, you know, 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, to drive growth organically, also based on the technology that, that Tyler talked about and the, the ability to drive things, even better than we ever have. But Edmund, do you have anything to add just on the-
Well, 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, so 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 two things will help us have that 2-3 points of contribution to recurring revenue growth, which again, if you saw 2 points below for the pandemic, you know, that, that'll be at or above that level, driven by those two items.
Thanks for that. 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, wouldn't that tend to set you up for at least more conviction in margin expansion and or more margin expansion than historically?
Yeah, I think, and I'll let Edmund. Why don't you start this time?
No, go ahead.
It's, David, I think one of the things you saw, that, and we're pretty specific about it, is the investment that we plan to do. And so, yes, organic can have good, 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.
Thank you.
Go ahead.
Thanks. Hey, guys, it's Darren Peller from Wolfe. Congrats on today. Thanks for all the, the extra details. Great to see. You know, when we look at the, the variety of contributions to your closed sales over the last couple of years, it's never really been one big anchor, you know, 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, you know, 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, you know, 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, you know, the macro environment in the world the last year, you know, 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 and 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 have the 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, I guess.
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 advisor client acquisition, or whether it's class actions, is really big right now. These things are being done in-house. These are opportunities to move out. I don't envision that you're going to see 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... You know, 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, I don't know, 1-2 points or zero to 2 percentage points of M&A in your revenue outlook. And so maybe, Tim, just first, the priorities for you on 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, you know, capital available, and so can we expect that much more buyback? Thanks, guys.
Yeah, so clearly, M&A has been a really nice contributor to our growth over the past decade. I would start with the fact, though, 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. 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.
If you do see us doing M&A, you should know that it would be 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
Yeah
... jump on the second part.
You know, part of the first part is, like, we're constantly scanning the environment, and we see opportunities in each of our franchises, particularly in the ICS opportunities. I think it is probable that there will be some assets that are worth looking at. But, Darren, 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, you know, that $3 billion that you're referencing largely equal between those two items. That's playing out in fiscal year 2024, probably more weighted toward towards share repurchases, and we'll see over 2025 - 2026. 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.
Hi, thanks for doing this. It was really informational. It's Puneet from JP Morgan. 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 three years out, 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, and then I ask Chris Perry to also join in. Chris, our international business rolls up to Chris. But, I'm glad you called us 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 rate 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.
Yeah, I'll add two things on there. When I first got here, we were really a GTO business internationally, and it's very exciting to have now two 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 team's taking our other colleagues into these clients that they have relationships with in 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, you know, a few years ago wouldn't have happened, so we're really excited, as Tim said.
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 the next three years? Like, what could that be a net tailwind to margins over the next three years?
I do expect it to be. I think that was directed at to me, Puneet, and thanks for the question. I do expect it to continue to be a tailwind. It's hard for me to predict what the postal rate is, 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-teens growth. At least through the 2024 time period, we expect higher distribution growth, and so it will continue to be a tailwind. Who knows exactly for 2025 - 2026, 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.
Got it.
Yeah.
Thank you.
Just to clarify on the headwind versus tailwind, as distribution goes faster, it makes it harder,
Right
... harder to grow margin-
Switch it.
Harder to grow margin. But what Evan 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%.
Thank you.
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 timeline to achieve that revenue, and is your $20 million-$30 million of annual sales in Wealth in business enough given your sales pipeline?
I'll comment a little bit on that, and I'm going to ask Tom Carey to comment on it and see if Chris has any cleanup after Tom finishes, 'cause we all love this, all love this question. We're really excited about what is going on in wealth. Tom and I were together out at an important wealth client last week, and you know, they are looking at a long-term transformation, and they it really resonates, the componentized 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, you know, these sales cycles are very long, and so that's not the within year number, that's a number over time. So I do think that, you know, we're—when we brought all this out, we talked about three objectives: get UBS live, so I feel really good about that. Have an incremental $20 million-$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's developing.
Oh, sure. And you nailed a lot of it there, 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 as I think about it. One is this technology transformation they need to do. So we talked about the AI today, the operations, et cetera, so the backbone of the platform. But then you look at the front office piece and the advisor experience.
They need new products and new services, and that's where we step in with our components, because that's what's going to power them, and it's going to power us as well. I love the idea that $20 million-$30 million of incremental is not enough, and we'll keep pushing for more. Chris, anything?
I like that last part of your answer. Again, it is incremental on top of what we do already in-
Yeah
in that market. So it's, it's a, it's a strong number, and I think it will be accelerating.
I think it's interesting also, just to add on, just, you know, going back to last week, that's a client that is in the midst of implementing Salesforce, and it really resonated in terms of how we're able to deliver our components inside Salesforce with bidirectional data sharing.
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?
Yeah. Thank you, Patrick. So you saw that in a number of the slides, but we didn't talk that much about it today. It is. And just for everyone's recollection, LTX 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 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. 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 and the network, network going. The timing of that is very uncertain. The guidance that you saw today has the extents 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 one more question, so go ahead.
Michael Infante, Morgan Stanley. I just wanted to ask, just given the commentary on the business becoming increasingly weighted to SaaS in nature. Obviously, you know, that's increasingly more difficult to isolate just with the impact of distribution and event-driven revenue. But Edmund, I just wanted to ask, you know, 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?
Yeah. 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 know, you look at those components, the first bucket on that slide that I'm referencing was related to the question that you're asking. 50-70 basis points of margin expansion from the scale in both of the businesses, as I highlighted, and that includes, you know, as we become incrementally more marginal, more profitable in the wealth business, as well as the ICS and, 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. Terrific. So I'm gonna wrap up here. On behalf of the investor relations team, particularly my world-class colleagues, Greg Fauget 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, and very importantly, for your investment in our company. Appreciate it. Thank you, and have a great day.