David Brown: Well, I think we’ve guided towards keeping the 49% guidance we have today, and we reiterate that in the pro forma business. We’ve obviously exceeded the 49% guidance over the last few years, but we’ve also highlighted that it’ll ebb and flow based on the investments we’re making. So, we’re very confident in the 49% in the pro forma organization. Our track record in history of integration, and when we talk about integration, we talk about smartly integrating, I think is top of the industry. And we have a lot of confidence that the principles of Victory Capital, are the right principles on how to run an investment management organization for the future. And we think that those principles will be able to partner with Amundi U.S. And those people that work for Amundi U.S. will adopt the principles we have to maintain our culture.
I don’t think that anything that we have seen, all the diligence we have done, and we have been working on this for a while, give us any reason to believe that we wouldn’t be able to maintain our culture and the margins in our operating discipline going forward. And even as we think about additional acquisitions post Amundi U.S., it would be the same story.
Etienne Ricard: Okay. Great. And staying on the topic of expenses, how do you think about the pace of realizations on the $100 million of expense synergies for ’25?
Michael Policarpo: Good morning. Yes, so I think as we had said in our prepared remarks, and Dave just highlighted, the level of the work that we’ve done, we’re very confident in the $100 million expense synergy that we had put out there, and had commented on. We also said that we expected to realize them over two years, really with the majority of those coming in the first year. And as Dave mentioned, our track record and our history of integration and expense realization, I think kind of speaks for itself. And we have a pretty time-tested and well thought out plan with respect to integration. And we believe we’ll execute on that with respect to the Amundi acquisition as well.
Etienne Ricard: Great. Thank you very much.
Operator: The next question comes from the line of Michael Cyprys with Morgan Stanley. Please go ahead.
Michael Cyprys: Great. Thank you. Just wanted to circle back to the distribution agreement that, you have with Amundi with respect to selling their products into the U.S. Just hoping you might be able to elaborate on how that might work. Maybe you could talk about the economics, what that can mean for Victory, and what strategies of Amundi’s do you think could make the most sense to sell into the U.S. over time? How many products do you envision selling and how do you navigate prioritizing selling their products in the U.S. versus your products?
David Brown: Yes, I’d start off by saying is that they have a good – investment manufacturing capability outside of the U.S. There are a few products that today we think there’s an opportunity to sell. One maybe example would be an emerging market debt product, or maybe a product that is like that maybe through an institutional channel. So, there will be a number of products that they have based on the market conditions that will move through different channels. As far as priorities, our sales force is used to selling, and has come up with a system of selling multiple products, different asset classes. So it isn’t really about what the prioritization is. It’s really about accepting what the client demand is. So, we’re well, this is really part of what we do today.
So we’re well-schooled on how to do that. The economics of it will be very similar to what from our perspective, very similar to what we have today of selling our own products. So the margin requirements we have with products of our own will be the same, really will be the same margins, with products that we sell into the U.S. And it really just gives us another avenue to get closer to different clients by being able to offer them a wider range of investment solutions and capabilities.
Michael Cyprys: Great. And just a follow-up question on the margin profile. I hear you on reiterating the synergies coming through, you’re sticking to the 49% margin profile, but just curious as you think about this large transaction, it seems like it can enhance your scale and revenues coming on at high incremental margins. So just hoping maybe you could elaborate on some of the moving pieces there, and offsets that lead you to maintain the margin outlook. Maybe you could talk about how much you’re looking to spend. It seems like maybe there’s an underlying net-net spend. How much you’re looking to invest back in the business and what are the top areas?
David Brown: Yes. So we’ve guided towards $100 million of synergies and then the 49%. The $100 million of synergies is a net number. We will invest a significant amount of money into the platform. And a lot of that will be into the U.S. intermediary portion of our business, distribution portion of our business. And so, we will continue to invest on our platform. I think one of the major advantages we have is the way our platform is set up. Is we have the ability to invest, and invest in a way where it’s very efficient. And I think you can see that by the margins. So a lot of what we’re going to be doing is investing, even though you see $100 million of cost synergies, it’ll be a net number. And we will be investing heavily back into the platform as we are today.
Michael Cyprys: Great. Thank you. [Operator Instructions] Your next question comes from the line of Adam Beatty with UBS. Please go ahead.
Adam Beatty: Thank you and good morning. First, I wanted to focus in on solutions a little bit. Obviously, WestEnd doing well. The Amundi U.S. business had positive flows in their solutions business. So hoping to get maybe a fuller picture of the solutions business that Amundi U.S. will bring in, the complementary nature of it versus what Victory already has, and whether or not those businesses will be kind of integrated into one sort of solutions provider, or remain somewhat separate? Thank you.
