Rob Sharps: Yes, I’m not going to comment on specifically what the underlying drivers are of the compensation accrual. I will say that our approach and philosophy around incentive compensation does emphasize longer-term track records. And kind of how you define that really depends on the tenure of the investment professional. But we look not only at the current year results, but at three-, five- and even 10-year results for long-tenured portfolio managers. So, our incentives are basically designed to reflect the long-term performance for investment proposals. But you’ve got to remember, we have 8,000 associates. And we have people that are doing a lot of different things in the organization. We also have a very broad range of strategies.
So kind of while we might have delivered disappointing three- and five-year results in certain strategies, we have other strategies where you have excellent results. So, kind of at the end of the day, as I’ve said before, we’re really focused on, from an expense perspective overall, making sure that we have the capacity to attract and retain world-class diverse talent and maintain our culture. And those are the things that I think are really essential for us to be able to deliver for our clients over time and to be able to deliver for our shareholders.
Jen Dardis: I think it is worth noting, as we talked about the steps that we’ve been taking from an expense perspective, we had the notable announcement where we took the actions with the 2% of existing roles. But in leading up to that, we’ve been working for the past several months at looking how we can actually slow down and close open roles, and that will have an impact on the expense growth rate in salaries. So, trying to manage that over a period of time allows us to do that through closing open roles, not necessarily having to eliminate roles that have people in them. So, you would see that flowing through in the impact of salaries.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Mike Brown from KBW.
Mike Brown: Hi, good morning. So Jennifer, as you noted, the market rally was particularly strong at the end of the quarter. So, just wanted to see if you had any color about the exit fee rate here relative to the second quarter? And any puts and takes we should really consider here for the second half?
Jen Dardis: No. I’d say, look, if you look at our trend over the last several years, five-plus, we’ve had modest fee compression rates over the past several years in the range of 1% to 2%, depending on the actions that we’ve been taking to lower fees across different product lines and be competitive. So, I would expect that wouldn’t change. Obviously, in times of market rally, you’ll see a little bit of an uptick as the business mix shifts, but nothing really specific to call out that’s different from trends.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Patrick Davitt from Autonomous.
Patrick Davitt: Hey, good morning, everyone. So, T. Rowe is widely known to be one of the best places to work in asset management and you’ve obviously been able to maintain that strong culture and strong pay packages through the last decades plus bull market. But history would suggest that asset managers to start cutting more aggressively, start to impact the investment management process and then, ultimately, performance. So, after now two, I guess, waves of layoffs in a year, how are you balancing this new restraint on expenses with the risk that you negatively impact the investment franchise?
