Some Positives for SEI Investments Amid Volatile Market Conditions, but Some Bumps Ahead

Narrow-moat-rated SEI Investments reported a decent third quarter. Revenue of $471 million was down 2% sequentially, not a bad result considering market movements. As expected, the investment managers segment continues to be SEI Investments' strongest performer, and this segment makes up most of its net new recurring sales events. Overall, we expect to lower our fair value estimate on SEI Investments by a single-digit percentage as we account for lower asset-based fees due to market movements since we last updated our model in August.