Finian O’Shea: Hi, everyone. Good morning. A question on the active ETF launches. Can you talk about the success so far there as to the extent that they capture the outflows, say, of their sister mutual funds? And also on a high level, are you encouraged by what you’re seeing, or are there roadblocks for that strategy to gain traction? Thank you.
Rob Sharps: Look, at a high level, I am encouraged by what we’ve been seeing more recently. I think active strategies delivered in the ETF vehicle have really started to garner more attention and interest across the industry, and we’ve continued to expand our lineup, kind of we now have a broader range across equity and fixed income. And as noted, launched a series of new ETFs this quarter. We have particular early traction in the capital appreciation equity ETF offering. But kind of broadly, we’re getting more and more engagement and are increasingly encouraged by interest in ETFs. With regard to whether it’s just cannibalizing the open-ended 40 Act business, I think there’s an element of that, but I also think we’re attracting a lot of new investors.
What you find is that there are certain advisors that use ETFs exclusively. And until we had an ETF lineup, we weren’t able to engage or deliver our strategies to those advisors. Tim Coyne and our USI Wealth Broker-Dealer Financial Advisory team have done a really good job of getting out into the marketplace and ultimately kind of giving people a sense for our strategies and why they could be appropriate in their clients’ portfolios. We’re really pleased with how they’re performing. We think there’s a long way to go there. It’s early days, and I would say for us the momentum has really just started to build frankly kind of over the course of the last several months.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Dan Fannon from Jefferies.
Dan Fannon: Thanks. Good morning. Jen, I was hoping to expand a bit upon the expense commentary. So, at or below the midpoint of this year, I assume that’s based on kind of June 30 AUM levels? And then also would be curious about what kind of one-time or severance might be included in 3Q as you think about the actions that have been taken? And then, further, just on the commentary for next year, low-single digits at this point, did that include some of the real estate and longer-term dynamic — potentials cost saving actions that you mentioned, or would that be above and beyond as we think about ’25 and further?
Jen Dardis: Thanks, Dan. I’ll try to make sure I get all of those. So, first, on the midpoint of the range, the at or below the midpoint of the range, as usual, we tend to look at an average of the month as you might have noticed in this particular quarter, the markets went straight up into the end of the quarter. So, we tend to look at about a 30-day rolling average to look at what the balance might be for the balance of the year. In terms of severance, there’s about $15 million to $20 million worth of severance costs that would be reflected in Q3. And we would expect for the balance of the year, if you look at how things would roll into Q4, you would have that partially offset by some of the lower salaries based on the roles that departed in July.
Just remember, as we think about how that expense guidance would roll into the end of the year, fourth quarter typically has our long-term incentive plans where new LTI plans are issued and that tends to create a bit of a pop along with ad promo that tends to be more seasonal in the fourth quarter. And last, as we look into next year, that low-single digit guidance, it includes much of what I just mentioned. It includes the $200 million. The real estate savings would roll in over time. I would expect that would probably be more into the late ’24 or early ’25 timeframe. But again, we’re still going through planning for the year. We just wanted to give you a general sense for where next year might land.
