Glenn Schorr: Hi. Thanks very much. So, I want to take a step back on the intermediary channel, because it’s a little bit weird time where the markets go up a lot, yet you have a bunch of outflows. So, the question I have is, is the same performance drives flows on a lag basis? Is that relationship still what’s driving things in here, and as your performance started to improve, we should see things slow? That would be what history would say, but is it bigger than that now? Are you seeing like just a massive product preference change in the channel hence the ETFs and SMAs that you’ve been putting out, maybe you could weave in what the responsibilities of your new Head of Intermediate Distribution might be in charge of making happen? Appreciate it. Thanks.
Rob Sharps: Yes. Glenn, it’s a good question. It is an unusual moment in time. If you look at where most of the inflows have come in the industry, it’s been in passive, a lot of that in ETF and in money market. People are getting yields on money market funds that they haven’t had in 15 years or more. And it’s an uncertain environment. I think there are a lot of investors that are on sidelines that are waiting for the Fed to get out of the way or waiting for a more attractive buying opportunity. I’d also say that it’s been a narrow market. You’d note that the market is up quite a bit. It’s been driven by kind of a very narrow portion of the market and a small number of overall names. So there hasn’t been as broad participation as you might expect.
Look, I still believe that good performance will drive flows across vehicles. And we saw this quarter inflows into a number of strategies including funds where performance was good. Again, I think longer term, there is a shift away from open-ended 40 Act mutual funds in favor of other vehicles, you see that in fund to trust migration in our retirement business. And as you noted, SMA and ETF are both growing more rapidly. But we’re I think moving quickly to offer a broader range of strategies across those vehicles. So, while the trends that you note are real, in terms of a shift to SMA with lower account minimums, more customization, tax loss optimization, shift to ETF, to some extent, a shift to thematic or shift to passive, I think those are things that we can navigate if we leverage our, I think, best-in-class global investment platform, global research platform across equities and fixed income.
All of those are opportunities that we should be able to address, that I think we’ve made progress in building out our shelf space and availability and we’ll make further progress with — going forward. So look, I deeply believe that there will always be a market for active management that excellent security selection will drive value. And I think it’s incumbent on us to engage with our clients to understand kind of how we can deliver that value to them. So, I think there’s an element of this, Glenn, that is cyclical, that is kind of where we are today. And kind of ultimately, you’ll see behavior change and money flow back to strategies where you have a very good performance. But there’s also an element of it that I think is likely to be more enduring, which is why we’re working hard on SMA, ETF, things like the OCredit, BDC, we want to be more present and better represented in areas where we’ve been less well represented in the past because there are some changing demand trends.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Brian Bedell from Deutsche Bank.
