sei investments company - seic.com...may 31, 2018 · 3 sei: focus on long range sustainable growth...
TRANSCRIPT
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SEI Investments Company (NASDAQ: SEIC)
Dennis McGonigle, Chief Financial Officer
Mark Samuels, Chief Marketing Officer
2018 KBW Mortgage Finance
& Asset Management Conference
May 31, 2018
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We deliver innovative,
comprehensive solutions to help
clients achieve lasting success.
MISSION
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SEI: Focus on long range sustainable growth
› Grow by adhering to SEI’s mission, values and proven business model.
› Overcome headwind trends and take advantage of tailwinds.
› Execute core businesses in existing markets with existing platforms.
› Expand business with existing clients by building new platforms.
› Enter or increase focus on adjacent financial markets with existing and new
platforms.
› Apply advanced technologies.
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What is a Platform?
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SEI: Grow using proven business model
Grow Organically › Focus on emerging client needs
› Deliver enterprise platforms
› Selective acquisitions to create organic growth
Engage Clients › Forge intimate client relationships
› Be a thought-leader
› “Win-win” pricing models
Enhance Financial
Strength
› Focus on sustainable growth in earnings-per-share
› Generate recurring revenue & predictable cash flows
› Maintain strong balance sheet
› Grow dividends and stock buy-backs
Innovate
› Long-term focus
› Capital investments are necessary to grow in new ways
› Foster collaborative, innovative, risk-taking culture
› Try to fail fast and learn from mistakes
› Be patient with new potential winners
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1968 1980 1990 2000
SEI: A history of innovation and market expansion
Regions
Markets
Platforms
Innovations
Investment
Processing
Investment
Management SEI Wealth Platform
› Manager of Managers
› Fee-based advisor
Platform
› Back-office processing
› Globalization
› Invest idle cash
balances
› Asset allocation
› Goals-based investing
› OCIO & fiduciary management
› Total operations outsourcing
› Trust System
Investment
Manager
OCIO
Banks
2010
United States Canada EMEA, Asia Ireland U.K.
Investment Managers
Advisors
Institutional Investors
IWA’s
2017
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United States
› Bank & advisory investment processing
› Institutional & HNW asset management
› Investment manager operations &
fund processing
South Africa Institutional
asset management
East Asia Hong Kong
Institutional & HNW asset
management
Canada Institutional/HNW asset
management
SEI today: global presence and services offered
Europe
United Kingdom
› Bank & advisory investment processing
› Institutional & HNW asset management
Netherlands
Institutional asset management
Ireland Investment manager operations &
fund processing
Major Operations Center
Oaks, PA, United States
Major Operations Centers
› London, United Kingdom
› Dublin, Ireland
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SEI: Existing markets
Private Banks
› Global banks & other wealth managers
› U.S. banks & other wealth managers
› U.K. banks & other wealth managers
› U.K. PCIMs
Investment Advisors
› Affiliated RIAs
› Broker-dealers
Institutional Investors
› North American DB corporate sponsors
› U.K. DB corporate sponsors
› Hospitals
› Taft-Hartley plan sponsors
› Public funds
Investment Managers
› Traditional investment managers
› Global investment managers
› Hedge fund managers
› Private equity managers
› Real Estate managers
Investment in New Businesses
› Ultra-high-net-worth investors
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SEI: Execute core businesses in
existing markets with existing platforms
Private Banks
Investment Advisors
Institutional Investors
Investment Managers
Ultra-high net-worth
investors (INB segment)
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SEI: Expand business with
existing markets by building new platforms
Private Banks
Investment Advisors
Institutional Investors
Investment Managers
Ultra-high net-worth
investors (INB segment)
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SEI: Enter or increase focus on adjacent financial
markets with existing and new platforms
Independent RIAs
DC plan sponsors
Foundations & endowments
Large global wealth managers
Family offices
NEW MARKETS
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SEI: Enter or increase focus on adjacent financial
markets with existing and new platforms
Independent RIAs
DC fund sponsors
Foundations
and endowments
Large global
wealth managers
Family Offices
NEW MARKETS EXISTING PLATFORMS NEW PLATFORMS
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SEI: Plan
Summary
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SEI: Investing in the future
We are committed to make
capital investments to drive growth
Target 8-10 percent of revenues
for platform development
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SEI: Apply advanced technologies
›Robotics
›Data analytics
›Blockchain
›Artificial intelligence
›Front-end technologies
› Infrastructure
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SEI financial highlights
$288 $319 $332 $334
$404
2013 2014 2015 2016 2017
Net income attributable to SEI ($m)
1,126 1,266
1,334 1,402
1,527
2013 2014 2015 2016 2017
Revenue ($m)
351 375 406
434 460
2013 2014 2015 2016 2017
Net cash from operating activities ($m)
207 276 291 292
248
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74 80 85 89
2013 2014 2015 2016 2017
Return of capital to shareowners ($m)
Stock purchases Dividends paid
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350 371 377 337
SEIC appreciation
(approximate) as of May 15, 2018
1 year 26%
5 years 113%
10 years 178%
Since IPO 25,788%
(1981)
92 99 103 134
155
31 35 29 50 61
2013 2014 2015 2016 2017
Research and Development ($m)
Research and development expenditures
Capitalized software development costs
R & D as a percent of revenue
Source: Financial highlights, company filings; SEIC Appreciation, Yahoo Finance May 15, 2018.
8.2% 7.8% 7.7% 9.6% 10.2%
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seic.com
SEI platform overviews
and additional information
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INFRASTRUCTURE
SERVICES
Business continuity, hosting,
information security, release
management, production
services, system administration
Infrastructure Services Business continuity, hosting,
information security, release
management, production
services, system administration
Business
Management Services MI reporting, SLA/KPI tracking,
audit reporting, data integration,
document management,
professional services
Investment Processing Services Asset services, cash management,
corporate actions, custody, reconcilement,
settlement, fee & tax processing
End Client
› 360º view of relationships
› Prospect management
› Dashboard & reporting
› Portfolio planning & proposals
› Alerts & monitoring
› Tasks & activities
Wealth Advisory › Portfolio structure
› Manager research and selection
› Dynamic asset management
Wealth Administration › Multi-level risk analysis & reporting
› Consolidated portfolio analysis & reporting
› Stress testing
Asset Management › End-client website
› End-client statements
› Tax reporting
› Confirms/advices
Private Banks: Enterprise wealth management
SEI Wealth PlatformSM
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Private Banks: Asset management distribution
Custom investment management solutions
Turnkey
Investment
Strategies › Actively managed
› Manager research
› Manager selection
› Portfolio Construction
Goals-based
Tools & technology
Manager
Research › Research
› Selection
› Engagement
› Oversight
Funds
Solutions › Goals-based
› Traditional
Separately
Managed
Accounts
SEI Platforms
Custom Asset Allocation Advice › manager research +
portfolio construction
= actively managed
strategies
Comprehensive
› Turn-key Strategies
› Goals-based or
Traditional
› Customized solutions
Flexible
› Branding
› Implementation
› Infrastructure
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Independent Advisor
Front Office allows SEI
clients to utilize industry
leading third party tools
in a fully integrated
ecosystem.
CRM
Financial Planning
Proposals
Client Reporting
Firm Reporting
Portfolio Management
Tax Management
Aggregation
Rebalancing
Custody
Investment Advisors
Flexible turnkey asset management solution
SEI Wealth Platform + Asset Management Platform
› Full custody platform
with middle office
› Single system
architecture with
extendable integration
› Integrated
front/middle office
technologies with
workflow
› Full range of
investment products
and securities
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Institutional Investors
Outsourced Chief Investment Officer (OCIO) Platform
+ Asset Management Platform Strategic Advice › Goal setting & monitoring
› Asset / liability study
› Investment policy formulation
Goals-based Reporting › Reconciliation of funded status
› Pension surplus decomposition
› Attribution of interest rate changes
Active Liability Driven Investing (LDI) › Active management relative to liabilities
› Glidepath optimization
› - Capital market point of view
Investment Management › Portfolio structure
› Manager research & selection
› Dynamic asset management
Risk Management & Monitoring › Multi-level risk analysis & reporting
› Consolidated portfolio analysis & reporting
› Stress testing
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Investment Managers
Investment Managers Platform
Fund
operations
Distribution
services
Regulatory and
Compliance
Investment
operations
Risk Management
Dashboards - Manager
- Investor
Best-of-breed
Technology
Engines
Flexible, integrated
handling of:
› Fund Administration
› Fund Accounting
› Investment Operations /
Middle Office
› Information Management
› Workflow/Process
Management
› Risk Management
Analytics
› Regulatory and
Compliance
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Forward Looking Statements
This presentation may include "forward-looking statements," and
discussions about future operations, strategies and financial
results. Future revenues and income could differ from expected
results. We have no obligation to publicly update or correct any
statements herein as a result of future developments. You should
refer to our periodic SEC filings for a description of various risks
and uncertainties that could affect our future financial results.
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seic.com
Thank you