Faiza Alwy: Yes. Hi. Good morning. Thank you. I wanted to ask about the Index business and a couple of questions there. First, I wanted to get sense of what you’re assuming in terms of your AUM and how you’re thinking about ETD revenues in the back half of the year. I think you had previously talked about a pretty significant decline. So, curious if that’s still the case. And then just last question around that is, you talked about a mix impact on the fees associated with the AUM related revenues. Give us a bit more perspective on what’s going there. Thank you.
Ewout Steenbergen: Absolutely, Faiza. And let me combine all three of your questions in one answer. So, first of all, the business is seeing very healthy flows. We have seen very strong U.S. equity flows at $53 billion. We have also seen very solid fixed income flows for the quarter. That was at $6.5 billion. So, we think the business is seeing really the positive impact from overall positive sentiments around the markets we have seen over the last couple of weeks and months. So, that’s first. Then with respect to the outlook for the remainder of the year in terms of our assumptions, we have assumed no further market depreciation from the June 30 level onwards. And we have also — looking at the ETD volumes, we have assumed that volumes for ETDs remain at a positive place, but coming down slightly from where we were in the first half of this year.
I also would like to point out that if you look at where we ended the quarter from an overall AUM perspective, we’re about 19% up compared to the point where we were at the end of the second quarter of last year. So, certainly, the starting point for the second half of this year is very strong. If you look at mix, yeah, there is always going to be some kind of a mix in flows to certain products versus other products. We have seen that in the past as well. That will normally normalize over time. So, we think this is more short-term noise due to that flow seasonality. But from a medium and long-term perspective, we believe that there is still a correlation between AUM levels as a key driver of overall AUM fees growth for the business. So, in other words, if you combine all of these trends together, we’re very happy that we could raise the guidance for the Index business for the second time in a row and we’re very optimistic about the outlook for the remaining of the year for the Index business.
Douglas Peterson: Thanks Faiza.
Operator: Thank you. Our next question comes from Alex Kramm with UBS. Your line is open.
Alex Kramm: Yes. Hi. Good morning, everyone. Just wanted to come back to the Market Intelligence guidance. I think you made this comment, and hopefully, I’m not misquoting here that you’re lowering the guide officially, but not trying to signal anything. I’m not sure what that really means. So, maybe you can flesh it out a little bit. You talked to the low end last quarter, 6.5. Now, you’re lowering the range, but you’re still leaving it very wide. So, theoretically, the mid-point is actually higher than what you said before. So, maybe just help us kind of like say what has changed, if anything, and then maybe just flesh out the margin of the guide as well. Thanks.
Ewout Steenbergen: Happy to clarify that, Alex. So, what I’ve said before is we think the business in all the aspects is performing in line with expectations what we had a quarter ago. So, we don’t see any deterioration in any of the underlying business lines within Market Intelligence. And it is actually exactly where we thought it would be at this point in time and also with respect to the book of business, the ACV growth, retention levels, sales cycles and so on, we see exactly what we would expect to see at this moment. But as we have highlighted during the call, there is uncertainty about sustainability and energy transition, particularly ESG scores is a part of the revenue stream for the Market Intelligence business. And we are a bit prudent here deliberately in order to change the guidance here.
We’re not pointing to any point in this guidance range. We’re just lowering the guidance at this point in time. But as we have said, we are actually really positive and optimistic about the outlook of Market Intelligence. We see a lot of positive trends underneath the business and I’ve mentioned those before. But let me just give another couple of examples of that. The combination of the capabilities is working. So, we’re seeing a lot of new products that is in development with respect to combining Market Intelligence and financial services of IHS Markit. We see increased value realization with customers and actually a slight pickup in pricing in the business. We should also benefit from trends of consolidation of data vendors and we are one of the beneficiaries of that.
So, many positive things that are positive trends for Market Intelligence. We’re just really prudent, and that’s the main reason around the sustainability revenues in the near-term.
Douglas Peterson: Thanks Alex.
Operator: Thank you. Our next question comes from Jeff Silber, BMO Capital Markets. Your line is open.
