Raymond Hanley: And the intention, of course, is to regardless of shifting and if any of that occurs or when our – when we undertake changes like this, our expectation is that they will be revenue enhancing.
Patrick Davitt: Got it. Thanks. And as my follow-up, you’re building a fairly nice cash balance and did a lot more repurchase in the second quarter than I think maybe your tone on the last call would have suggested. So should we be leaning more into repurchases as we think about our models for the second half now and now that your price is much lower than it was last quarter?
Tom Donahue: Yes, Patrick, it’s Tom. So we had the Russell –we got to tick down in the index in the Russell. And so we weren’t sure what was going to happen there and wanted to be prepared. And then we also knew that the money market regulation was coming, and we’re exactly sure what was going to happen there. And so looking into the future, the Russell is behind us. And we did buy shares during that period. We thought that there was lower price than was appropriate. So a buying opportunity. And now that the money market thing is not as bad as it could have been. We think that our stock is underpriced and so we will review as we buy shares based on that thought process.
Patrick Davitt: Thank you.
Operator: Thank you very much. Your next question is coming from Mike Brown of KBW. Mike, your line is live.
Mike Brown: Great. Good morning, everyone. You just touched on the dynamic with the Russell removal there. We did receive a number of inbounds about that dynamic and the resulting technical pressure on the stock. Can you just touch on this dynamic a little bit more? And I guess given your governance is kind of part of your investment strategy. Why not meet the requirements to stay in the index?
Tom Donahue: So I’ll deal the first part, and Chris can answer the last question. The dynamics are hard to understand, know exactly, but we looked at our volume and saw that before the index date, our volume picked up and the price came down leading up to it. If you look at a month or so before hand, the price went – kept going down, down, down, and the volume went up, whether that was people addressing and preparing their portfolios in advance of the Russell change or whether it was people betting or selling based on what they thought was going to happen in the money market business, you can pick. I think it was probably both. After you had a big volume day, I forget 12 million shares or something on the day that Russell changed.
And actually, the few days before, the stock we kind of outperformed relative to the market. And then roughly the five days after we kind of underperformed. So maybe that was the people who were tied to the Realty Index but not actually index funds. We’re adjusting their portfolios – we thought that was the buying opportunity and participated. And I would think it’s in the rearview mirror now because our share trading seems to have settled down to more historical levels.
Chris Donahue: So changing in order to get with an index didn’t strike us as the way to do the strategy for Federated Hermes, Inc. The index people decide not to be an index doesn’t mean that we have to decide to join their non-index index. We have had this structure going all the way back into the 60s when we went public. It was an intervening time in the ’80s when we were owned by Aetna. But when we bought ourselves back in ’89, we went back to the same structure. And in conjunction with looking at the funds, the money that we manage on the institutional side, it’s been our conclusion, and it’s worked well for us that it’s very clear as to who is in charge and who is managing the money. And we’re not worried about who’s having lunch with whom.
