Paul Klauder: Yes. I would just add on the advisor side, we haven’t seen really a big position of cash. We’ve seen a little bit of spike in cash balances. That’s kind of normal when you see this level of volatility, but there has been kind of no movement around, away from the strategic portfolio, someone has some excess cash, they might be holding it in a money market fund. We offer very competitive yields there. On our flows, we’ve had very strong growth on the AUA side, the custody platform, very strong growth on the SMA, the ETF, the strategist program and we’ve seen a little bit of continued outflow of the SEI higher fee funds. And we knew that. So, that’s part of our business strategy is to kind of sell through that in this environment.
We just also had a conference of 270 advisors a few weeks ago, unbelievable commentary and receptivity, especially around our applications and our investor portal, our dashboards and our mobile app that we rolled out. So, we are getting really, really good feedback. And we think that that puts us in a well position for growth as we move forward into the fourth quarter.
Operator: We’ll go over to Mike Brown with KBW.
Mike Brown: I wanted to start with just maybe a follow-up comment on the margin. It looks like year-to-date, you’re running just below 23%, and that’s just kind of below your historical mid- to high-20% range. So I know that you guys really focus on R&D spending and you’re kind of managing for the longer term here. But, if I have to think about an environment that could get even more challenging from here, like where does your margin really kind of bottom out? And what are the levers at your disposal here to protect the margin? And of course, I appreciate that there was some rightsizing actions in the quarter, so you’re not standing by idly, but just trying to think through what’s at your disposal if things stay or get worse from here.
Dennis McGonigle: Sure. So, I guess, what I can use is, first use of historical reference, the last time we’ve been through that type of a difficult market cycle. And during that market cycle, our highest margin business at that time was probably close between the Advisor business and Institutional business. The Advisor business — this is without SEI taking any drastic measures in terms of headcount or cost reductions, but really running the business as is. That business, the margin has bottomed out. It went from about high-40s to high-20s. The Institutional business went from similarly high-40s and bottomed out around maybe high-30s, 40% margin. So, the asset management — more direct asset management businesses, the margins held up really well, obviously compressed, but we spoke to our operating model, our business model and our capabilities there.
On the banking side and on the IMS side, which are more operational businesses, the pricing is a little bit less impacted. We do get some variability because of markets, it’s hard to run away from those types of extreme markets. But in IMS, for example, the mix of business is very diverse. So, it’s not as directly correlated to market activity. So there, there was some margin compression, but it wasn’t a severe plus with breakpoint pricing, the first assets you would lose in down markets or the lower-price assets relative to most client contracts. So, there’s a little bit of buffer in that. And banking, similar, we have revenue streams that are not tied to assets or more account-based or transaction or activity-based. In times of market stress, those things tend to — not necessarily new account numbers, but activity goes up.
