フェデレーテッド・エルメス (FHI) 2026年第3四半期決算説明会：MDT資金流入が株式AUMを押し上げ

主要なポイント

• Federated Hermesの2026年第3四半期末における株式運用資産残高（AUM）は、過去最高の1,105億ドルに達しました。19億ドルの純流入があったものの、市場評価額の下落により一部相殺されました。
• MDT戦略の総売上（グロス売上）は過去最高の60億ドル、純売上（ネット売上）は32億ドルとなりました。過去3年間のモーニングスターのカテゴリーにおいて、MDTファンド9戦略のうち7戦略が上位25％にランクインしました。
• 債券運用資産は当四半期末時点で990億ドルとなりました。純売上は計7億ドルとなりましたが、市場価格の下落により資産は18億ドル減少しました。
• マネー・マーケット資産全体の残高は、第2四半期比で270億ドル（4%）減少しました。経営陣はこの減少について、9月の法人税支払い、米連邦準備制度理事会（FRB）による9月中旬の利下げ、および大規模な州ファンドにおける季節的な流動性の変動によるものとしています。
• 第3四半期の売上高は前四半期比で460万ドル（1%）増加した一方、営業費用は1,590万ドル（4%）減少しました。営業費用の減少は、主に第2四半期にFCP買収費用1,120万ドルが含まれていたことによるものです。
• Federated Hermesは、受託が決定しているものの未拠出である機関投資家向け純運用マンデートを約65億ドル抱えて第4四半期に入りました。経営陣は、MDTを中心とする株式への追加拠出およびプライベート・マーケットへの資金流入が、予想される債券の解約額を上回ると見込んでいます。

主要財務データ

事業および運用業績

株式およびMDT

MDTが主な成長ドライバーとなりました。その株式およびマーケット・ニュートラル戦略は、総売上60億ドル、純売上32億ドルを記録しました。サブ・アドバイザリー・マンデートを含む機関投資家向け個別運用口座は、第3四半期に15億ドルの純売上をもたらし、そのほぼすべてがMDT戦略によるものでした。

Federated Hermesは、株式ファンドおよびSMAの33の戦略全体で純売上を計上したと発表しました。過去3年間のモーニングスターのデータに基づくと、株式ファンドの56%が同業他社を上回り、33%がカテゴリー内の上位25%にランクインしました。第4四半期の開始から10月23日までの株式ファンドとSMAを合わせた純売上は2億4,200万ドルに達しました。

経営陣によると、機関投資家の需要はオールキャップ・コア、大型バリュー、小型グロース、大型コア、大型グロースなどの各戦略に分散していました。MDTのETFおよび共同投資信託（CIT）商品も純流入を記録しました。

債券

第3四半期には、22の債券ファンドおよびSMAが純売上を創出しました。主な商品には、Sterling Cash Plus Fund、Ultrashort Bond Funds、Total Return Bond ETF、Conservative Microshort Fund、C.W. Henderson Short-Term Muni SMAが含まれます。

機関投資家向け債券個別運用口座は9億2,400万ドルの純売上を生み出しましたが、これは多額の資金流入と流出を繰り返す大規模な公的機関が牽引したものです。過去3年間において、債券ファンドの49%が同業他社を上回り、21%がモーニングスターのカテゴリー内で上位25%にランクインしました。

10月23日までに、債券ファンドとSMAを合わせた純解約額は20億ドルを記録しました。これには、数十億ドル規模のマンデート内でより高いリスクを取ることを選択したトータルリターン債券戦略のクライアントによる17億ドルの解約が含まれます。

マネー・マーケット

マネー・マーケット・ファンドの資産は前四半期比で3%減少した一方、個別運用口座の資産は8%減少しました。サブ・アドバイザリー・ファンドを含む、同社の推定マネー・マーケット・ミューチュアル・ファンドのシェアは、第2四半期の6.7%から約6.6%へと低下しました。

経営陣は、Federated Hermesが追加の利回りを獲得するために許容範囲を超えて満期を延長するのではなく、元本での日々の流動性を維持することを重視し続けたと述べました。同社は、10月28日までに同社のマネー・マーケット・ファンド資産がその後37億ドル増加したと発表しました。

電話会議の数日前の運用資産総額は約8,900億ドルで、そのうちマネー・マーケットが6,540億ドル、株式が1,120億ドル、債券が980億ドル、オルタナティブ／プライベート・マーケットが230億ドル、マルチアセット戦略が30億ドルでした。マネー・マーケット・ミューチュアル・ファンド資産は4,890億ドルで、10月中の平均額も同水準でした。

プライベート・マーケットおよびデジタル資産

MDT Market Neutral FundとETFは合わせて1億8,000万ドルの純売上を達成しました。Federated Hermesはまた、第6号となるグローバル・プライベート・エクイティ共同投資ファンドと、シニアローンおよびホールローンに特化した新たな欧州不動産デット・ファンドの販売を行っていました。

デジタル資産分野において、同社はPrometheumと連携し、米国証券取引委員会（SEC）登録および金融業規制機構（FINRA）加盟のブローカー・ディーラーインフラを通じてトークン化証券を販売しています。その他の取り組みには、BNY、ゴールドマン、Archax、Conduit Digital Holdingsとの協業が含まれます。経営陣は、現在の最優先事項はトークン化された流動性商品であり、これらの取り組みは顧客からの足元の強い需要に応えることよりも、将来の需要に向けたインフラ整備を目的としていると強調しました。

経営陣の見通し（ガイダンス）

• Federated Hermesは、2026年通期の実効税率が25%〜28%になると見込んでいます。
• 経営陣は、機関投資家向けパイプラインにある株式マンデートの資金拠出が今後2四半期にわたって行われると予想しています。同社は、未拠出の機関投資家向け新規獲得（純額）約65億ドルを抱えて第4四半期に入りました。
• 予想されるパイプラインには、約70億ドルのMDT株式の追加、ならびにダイレクト・レンディング、プライベート・エクイティ、貿易金融にまたがる約12億ドルのプライベート・マーケットへの純流入が含まれています。予想される債券の純解約額は約17億ドルです。
• 最高財務責任者（CFO）は、事業拡大に伴い第4四半期の人件費が増加すると見込んでいます。ディストリビューション費用は主にマネー・マーケット資産残高の水準に依存する一方、システムおよび通信関連支出は高水準にとどまる見通しです。
• 経営陣は30%を超える営業利益率を強調し、その水準を維持する目標を示しましたが、2027年の費用見通しについては提示しませんでした。

リスクおよび注視すべき点

• 市場評価額の下落により、株式と債券の双方が第3四半期に記録した純売上のプラス効果が相殺されました。
• Federated Hermesのマネー・マーケット・ファンドにおける保守的な流動性ポジショニングは、競合他社が追加の利回りを獲得するために満期を延長した際に、一時的な運用実績および資金流出入のギャップを生じさせる可能性があります。
• 17億ドルのTotal Return Bondからの解約や大手公的機関による資金の断続的な動きが示すように、大規模な機関投資家向けマンデートは多額の資金流入または解約を引き起こす可能性があります。
• 機関投資家向け個別運用口座およびサブ・アドバイザリー・マンデートの信託報酬率は、従来の1940年投資会社法ファンド（40 Actファンド）よりも低くなっています。経営陣は、パイプラインの資金拠出が進むことでブレンデッド手数料率が低下する可能性があることを認めました。
• 経営陣によると、トークン化商品は需要主導の著しい成長ドライバーというよりも、依然としてインフラ投資の段階にとどまっています。

アナリスト質疑応答の要点

マネー・マーケットにおける資金流出入のギャップ： 経営陣は、一部の競合他社と比較して第3四半期の資金流出入が弱かった理由について、追加利回りを得るために社内の流動性や信用限度を超えて満期を延長することを拒否したことが一因であると説明しました。また、10月には資金流出入が正常化し始めていると述べました。

SMAの勢い： 同社は、強固なSMAの売上について、単一の商品やチャネルの取り組みによるものではなく、MDTの長期的な運用実績、広範な販売網、および多様化した機関投資家パイプラインに起因するものとしています。

税効率を考慮した戦略： 経営陣は、Federated Hermesが既存のマンデートに追加される可能性のある税効率に配慮した仕組みについて他社と検討を進めていることを確認しました。また、一貫した純流入を維持している既存のロング・ショート商品として、MDTマーケット・ニュートラル戦略を強調しました。

債券需要： 経営陣は、投資家がイールドカーブに沿って緩やかに長期化へシフトするなか、UltrashortやMicroshortといった短期デュレーション戦略の商品が需要を牽引すると見込んでいます。また、その後に大口解約があったものの、Total Return Bond Fundが第3四半期中に最も高い総売上を記録した債券商品であり続けたことにも言及しました。

決算説明会トランスクリプト全文

決算説明会の完全なトランスクリプト

経営陣による説明

Operator

Greetings, and welcome to the Federated Hermes Third Quarter 2026 Analyst Call and Webcast.

[Operator Instructions] And please note, this conference is being recorded. I will now turn the conference over to your host, Mr. Ray Hanley, President, Federated Investors Management Company. Sir, the floor is yours.

Raymond Hanley

Thank you, and welcome to our call. Leading today's call will be Chris Donahue, CEO and President of Federated Hermes; and Tom Donahue, Chief Financial Officer. Joining us for the Q&A are Saker Nusseibeh, who is the CEO of Federated Hermes Limited; and Debbie Cunningham, the Chief Investment Officer for Money Markets.

During today's call, we may make forward-looking statements, and we want to note that Federated Hermes' actual results may be materially different than the results implied by such statements. Please review the risk disclosures in our SEC filings. No assurance can be given as to future results, and Federated Hermes assumes no duty to update any of these forward-looking statements.

Chris?

John Donahue

Thanks, Ray. Good morning, all. I will review Federated Hermes' business performance. Tom will comment on our financial results. We ended the third quarter with record equity assets under management of $110.5 billion, up $949 million from Q2 as positive net inflows of $1.9 billion were partially offset by lower market valuations. Equity sales results were led by MDT fundamental quant strategies. MDT equity and market-neutral strategies had a record $6 billion in gross sales and $3.2 billion in net sales in the third quarter.

Now looking at fund performance rankings at the end of Q3, 7 of 9 MDT fund strategies were in the top performance quartile of their Morningstar categories for the trailing 3 years. We had net sales in 33 equity fund and SMA strategies during Q3, including a variety of MDT offerings. Institutional separate accounts, including sub-advisory mandates, added $1.5 billion in Q3 net sales, nearly all in MDT strategies.

Now looking at our equity fund performance at the end of the third quarter and using Morningstar data once again for the trailing 3 years, 56% of our equity funds were beating peers and 33% were in the top quartile of their category. Now for the fourth quarter through October 23, combined equity funds and SMAs had net sales of $242 million.

Now turning to fixed income. Assets ended Q3 at $99 billion. Net positive sales of $700 million were offset by a decrease of $1.8 billion due to lower market values. We had 22 fixed income funds and SMAs with net sales in the third quarter, led by the Sterling Cash Plus Fund, our Ultrashort Bond Funds, Total Return Bond ETF, Conservative Microshort Fund and the C.W. Henderson Short-Term Muni SMA. Fixed income institutional separate accounts had Q3 net sales of $924 million, driven by a large public entity that has regular sizable inflows and outflows. Regarding performance at the end of the third quarter and using Morningstar data for the trailing 3 years, 49% of our fixed income funds were beating peers and 21% were in the top quartile of their category.

For Q4 through October 23, combined fixed income funds and SMAs had net redemptions of $2 billion, which includes $1.7 billion in redemptions from a client in the total return bond strategy, who went in the direction of taking additional risk for this part of their multibillion-dollar mandate. On September 30, this fund, Total Return Bond Fund, ranked in the top third of its category for the trailing 10 years, 66th percentile for 3 years, top 28% for 1 year and top 18% for the trailing 3 months.

Now in the alternative/private markets category, assets were up slightly, reaching $21.7 billion. The MDT Market Neutral Fund and ETF combined for $180 million net sales. We are in the market with the global private equity co-invest fund, the sixth vintage of our PEC series and the European Real Estate Debt Fund, a new pooled European debt fund that will invest in senior and whole loans. Across our long-term investment platform, we began the fourth quarter with about $6.5 billion in net institutional wins yet to fund into both funds and separate accounts. Equity strategies are expected to have net sales of about $7 billion in MDT additions. Approximately $1.2 billion on a net basis is expected to come into private markets, including direct lending, private equity and trade finance. Fixed income is expected to have net redemptions of about $1.7 billion, which includes the aforementioned redemption in the multi-sector field.

Moving on to money markets. Total money market assets decreased by $27 billion or 4% from the second quarter as funds decreased by $13.6 billion or 3% and separate accounts decreased by about $13.4 billion or 8%. Money market fund assets were impacted by the mid-September increase in interest rates by the Fed and by September's corporate tax payments. Money market separate account assets were impacted by the liquidity levels of large state pools that we manage and typically peak with tax collections at the end of the year through April before decreasing in Q2 and Q3. Our estimate of money market mutual fund market share, including sub-advised funds, was about 6.6% at the end of Q3, down from 6.7% at the end of Q2.

Turning to digital assets. We continue active collaboration with financial institutions and technology providers to explore digital distribution. Our focus is liquidity, where our efforts are designed to enhance flexibility and accessibility while preserving the core structure and utility of money market funds. During the third quarter, our arrangement with Prometheum Inc. was announced. We are working with Prometheum, a market infrastructure provider for crypto assets, to expand the reach of tokenized securities through their SEC-registered, FINRA-member broker-dealer market infrastructure. Prometheum will make our tokenized products available to broker-dealers and RIAs through its correspondent clearing platform.

This follows the launch of our Money Market Management Digital Treasury Fund, which is expected to support both traditional and on-chain distribution. We have also selectively engaged with regulated digital asset intermediaries, including participation in the BNY, Goldman domestic initiative involving mirrored tokenization. Also the Archax initiative to offer tokenized access to a UCITS money fund in the U.K., our arrangement with Conduit Digital Holdings to support the launch of Conduit's tokenized money market fund in the APAC region with the Conduit fund investing in one of our offshore money market funds. We are engaged in digital asset development discussions with other intermediaries as well.

Now looking at recent asset totals that was a few days ago, managed assets were approximately $890 billion, including $654 billion in money markets, $112 billion in equities, $98 billion in fixed income, $23 billion in alternative/private markets and $3 billion in multi-asset. Money market mutual fund assets were $489 billion. Money market fund assets have ranged from $485 to $493 billion during October with average asset levels of $489 billion.

Tom?

Thomas Donahue

Thanks, Chris. For Q3 compared to the prior quarter, total revenue increased $4.6 million or 1%. Equity asset growth added $8 million of revenues and an additional day added $5.3 million of revenues. These increases were partially offset by lower Q3 money market average assets resulting in $4 million of lower revenues. In addition, Q2 included a $2.9 million gain on the sale of a renewable energy property by Rivington, and the U.K. real estate business had a $2 million real estate development fee for a project that did not advance into construction.

Total Q3 carried interest and performance fees were $726,000 compared to $1.4 million in the prior quarter. Approximately $428,000 of the Q3 fees were offset by compensation expense. Q3 operating expenses decreased by $15.9 million or 4% from the prior quarter due mainly to Q2 included approximately $11.2 million in transaction costs from the FCP acquisition in certain line items, also approximately $3.3 million of lower compensation and related expense, lower advertising and promotional activity, intangible asset expense decreased $1.5 million, primarily due to most of the intangible assets from the Hermes acquisition being fully amortized.

These expense decreases were partially offset by a withholding tax-related expense of $1.9 million recorded in the other expense line item. $1.7 million expense for an adjustment to the FCP contingent payment, also recorded in the other expense line item. The Q3 effective tax rate was 27.1%. We estimate the full year tax rate to be in the 25% to 28% range for 2026. At the end of Q3, cash and investments were $580 million. Cash and investments, excluding the portion attributable to noncontrolling interest, were $483 million.

Oli, we would like to open the call up for questions now.

Operator

[Operator Instructions] Our first question is coming from Patrick Davitt with Autonomous Research.

質疑応答

Patrick Davitt

On the money fund flows, I understand that 3Q is always a seasonally weaker fund flow quarter for you, but there was a pretty big gap with many of your largest competitors like BlackRock had big inflows, JPMorgan had big inflows, Invesco had big inflows. So I'd like to get a little bit more color on what you think explains that big gap with some of those big competitors? And to what extent you're seeing more pricing competition, people trying to compete more aggressively on fees?

John Donahue

Patrick, I'll go first, and then we'll have Debbie give you the report from the field. So overall, there's nothing new about people periodically doing things either with fees or with portfolio construction that cause intermediate short-term alterations in the flows. And that's what was going on in this past quarter. And if you look at it over the 50-year period that we've been involved in this, this is like a routine deal.

Debbie will give you more details.

Deborah Cunningham

Thanks, Chris. So Patrick, as you know, we manage our money funds with a bias to daily liquidity at par. And as part of that process, on a daily basis, we identify maturity restrictions for different security types that we use as well as for each of the approved issuers from our database that we use. And these restrictions, for the most part, are based on liquidity in the marketplace for those different security types for those different issuers as they go out the curve, in addition to our own internal credit rating, which ranges from 1 to 5 for the various issuers. And this process really involves all 3 members of our team. It's our portfolio managers that are looking at the structure of the fund. It's our analysts that are reviewing the issuers, and it's the traders that are looking at the security types and the selections on a daily basis.

And what we've determined is that historically, and in this particular case, we haven't been willing to extend our maturities beyond what I would traditionally call our comfort zone just because there's maybe some inordinate value and pursue that incremental yield out the curve. While in our minds, that would mean sacrificing some of that true daily liquidity. So it's basically a performance issue based on our choice of what I'll call the most liquid and highly rated sectors in the marketplace at this time.

The other thing that I would note is that the FOMC did move rates in September, and we, as well as others, were lagging the direct market, but that's across the board.

John Donahue

And to elaborate on that, so basically, we've caught up. And if you look at the recent stats for October 28, our money market fund assets are up $3.7 billion so far. And if you look at some of those other competitors you mentioned, some of their assets have walked out the door a little bit on them. So things are coming back to normal.

Patrick Davitt

Okay. Interesting. My follow-up is on expenses. Good control again in 3Q, which is nice to see. Could you maybe expand on how sustainable that is, what you're seeing heading into 4Q? And if you have any early view on how things are tracking in '27?

Thomas Donahue

I don't have a comment on '27, except you see our margin, which we are happy to see that go over 30%, maintaining that. And we've had a long-term goal of trying to get to the industry, but that's a longer process. I expect comp here in the fourth quarter to go up as we continue to grow. Distribution will follow primarily how the money market assets go. And we're still spending some more in the systems and communications line item. And the rest of them, I don't see big changes for next quarter. Another is lots of other things that go lots of different ways, which we don't really forecast that.

Operator

Our next question, sorry, is coming from Bill Katz with TD Cowen.

Robin Holby

This is Robin Holby on for Bill Katz. Could you speak to the success you saw in the SMA side of the business during the quarter in equity and fixed income? Is there anything specific you've done in those channels that's resonating with investors, and that might have driven the acceleration there?

John Donahue

That's a case of successfully repeating the sounding joy, standard blocking and tackling, making the calls and doing it for a long time. If you look at the long-term records, especially in the MDT field, you see consistent outperformance with their methodologies. And especially in the SMAs, it takes a little longer to make the sales, and it takes a little longer for redemption as well. So there was no magic. There was no silver bullet. It is just the power of a large distribution force with good long-term records that makes that happen.

Raymond Hanley

Rob, we commented on the performance, which is obviously outstanding, especially long term for the MDT strategies. And I would just emphasize that the success we've had in the institutional accounts is diversified within several of the SMA strategies. So we've had nice wins and good pipeline composition from a variety of those strategies, all-cap core, large-cap value, small-cap growth, large-cap core, large-cap growth. And so even in a quarter where with some equity market choppiness, which reflected itself in lower mutual fund flows, we were able to have strong inflows and strong pipeline by the strength of the institutional part of the business. So I would also note that our MDT ETF and CIT products also had net inflows.

Robin Holby

Great. That's helpful. And for a follow-up, we thought the Prometheum announcement was an interesting development. Aside from your current digital products, where do you see this going? Does this accelerate the tokenization of some of your other non-tokenized funds, for example, MDT?

John Donahue

I don't think it actually accelerates anything. It is just steady as we go in exploring this new field. As I've said to this audience before, the clients aren't beating down the doors to get these products. This is really getting the infrastructure ready for tomorrow. No different than a lot of other examples of where the infrastructure has to change for the future. And so we are excited about our deal with Prometheum, with BNY, with Archax and with Conduit, all of them, but it's hard to say, "Oh, this accelerates other things." We are focused, as I said in my remarks, on the liquidity portion, and I would say the other securities are behind that from our point of view, but we'll be ready for that as well.

Operator

Next question is coming from Michael Cho with JPMorgan.

Y. Cho

I just wanted to touch on the money funds discussion that we were having before. I mean you shared the AUM data, which is very helpful. But I was actually wondering how the relative revenue capture share might compare to some of the stats you provide on the AUM share? And if there's any bifurcation between the 2 that you might envision and any implications you might be able to help us frame there? I know you gave some discussion on the yields and performance, which makes sense, but also thinking about how the revenue share might compare relative to those statistics?

John Donahue

So you're touching on something that we don't have great information on, which is market share of revenue. And this has been one of Chris' crusades for a long time that to an owner operator, that's a very important statistic. But we can't get it. So we don't know. So we only do it by inference. But it's what's behind the curtain in not doing the things that others do to periodically jump their yield, jump a bunch of assets and then get back to regular.

And I'll let Ray comment on the specifics of our revenue picture as much as we know.

Raymond Hanley

Yes. And I would just echo that, Chris. We can't really do comparable revenue. I would stress that -- we have a lot of different pricing options across our money market franchise, reflecting our reach in the different portions of the intermediary channels, but a lot of the attention, of course, are in the most institutional products, which tend to have a lower fee rate. Among the products that are more geared to retail applications, which for us is not direct retail, it's still through intermediaries, but to the end client of the intermediary, we have tended to traditionally do better if you bifurcate the asset market share in that retail channel, which would be a positive influence to the blended fee rate overall for money markets.

Y. Cho

Great. If I could just switch gears to MDT. You've had quite a bit of success there, and you continue to make progress across a number of different channels. Just broadly from an industry perspective, there's been a lot made about tax-aware long-short products, the demand and the penetration that's having in terms of those products in market. I was wondering, given the success you've had with MDT, is tax-aware long-short is something you are or you may consider in the future just given the demand appetite there in the market today?

John Donahue

Yes. We are working with various firms on those types of products that basically get added to by the adviser or put on top of the existing mandates. And I can't get into the details on any of those. But yes, we're looking at that. But as soon as you say tax-aware, I think C.W. Henderson. I know that wasn't your question, but that's on the muni side and on managing the gains and the tax situation. And that was what I mentioned in my remarks is doing quite well. Overall, the message is that tax-aware is very important. But what we tell everybody is don't let taxes drive the truck. Underneath that, you've got to have good projects that are heading in the right direction for you and not just having taxes control the outcome.

Raymond Hanley

And I would just add to that, the MDT market-neutral strategy is a long-short strategy, and we've done well with that in terms of both performance and picking up consistent net inflows.

Operator

Our next question is coming from John Dunn with Evercore ISI.

John Dunn

Maybe just a little more on the institutional pipeline. Can you talk about any client concentrations? How quickly do you think mandates will fund and maybe the impact on the firm-wide fee rate? And then on the other end, any chunky redemptions you wanted to call out that you might see on the horizon?

John Donahue

Well, I'm going to let Ray give you those details. But first of all, we're going to stop and cheer on the number of $6.5 billion, one of the highest pipelines we've had.

Ray?

Raymond Hanley

Sure. When we're talking about funding, John, the equity portion we expect to fund over the next 2 quarters. And that, as I mentioned, coming from several directions. There are some large sub-advised mandates in there as well as some more regular institutional separate accounts. As you know, the fee rates on each of those kind of applications would be less than what we would realize in regular 40 Act mutual funds. We are, nonetheless, of course, happy to add as much of this as we can even if it would have the impact of diluting the blended fee rate.

John Dunn

Got it. And then maybe just on fixed income, given where we are with rates and where they're going, could you kind of frame where you expect demand for your suite to go from here? And which products do you think are going to catch a bid?

John Donahue

It's going to be on the short end is going to drive the truck, but we're never going to really be behind on Total Return Bond Fund, which was basically our highest gross selling product during the third quarter. So -- but the answer specifically your question will be on the short side. And we have a beautiful array of products with Ultrashort, Microshort, et cetera, for people who are wanting to step out the yield curve just a little bit.

Operator

Ladies and gentlemen, we have reached the end of our question-and-answer session. So I would like to turn the call back over to Mr. Hanley for closing remarks.

Raymond Hanley

Thank you. That concludes our call, and thank you for joining us today.

Operator

Thank you. Ladies and gentlemen, this does conclude today's call. You may disconnect your lines at this time, and we thank you for your participation.