SEI Investments Company (NASDAQ: SEIC)

Transcription

1 SEI s Company (NASDAQ: SEIC) Dennis McGonigle, Chief Financial Officer Sandler O'Neill Global Exchange & Brokerage Conference June 7-8,

2 SEI SEI is a leading global provider of asset management, investment processing and investment operations solutions. 49 years as a leading innovator and outsourcer in the wealth management industry We help professional wealth managers, institutional investors, investment management firms, and private investors create and manage wealth and enable their long term success by providing solutions that are both innovative and comprehensive. ~3,200 Employees* ~8,600 Client relationships* $779b Assets under management or administration* *As of March 31, 2017, through its subsidiaries and partnerships in which the company has a significant interest, SEI manages, advises or administers $779 billion in hedge, private equity, mutual fund and pooled or separately managed assets, including $297 billion in assets under management and $478 billion in client assets under administration. Client and employee statistics are as of December 31,

3 SEI representative clients Banks and asset management distributors Advisors and Broker/Dealers Institutional Investors Managers Representative clients are selected by SEI to illustrate a sampling of SEI s client base as of December 31, 2016, but may not necessarily endorse all of the services provided by SEI. All trademarks or services are property of their respective owners. 3

4 SEI markets & businesses Serving two related markets Wealth Holders Individuals Institutions Wealth Services Providers Distributors Manufacturers Through five business units Private Banks Advisors Institutional Investors Managers New Businesses (ultra HNW) 4

5 SEI wealth management enterprise platforms Three Core Competencies Management Processing Operations Platforms Wealth Management Individuals Institutions Business Process Outsourcing Distributors Manufacturers 5

6 SEI financial highlights Net income attributable to SEI ($m) Revenue ($m) Net cash from operating activities ($m) $207 $288 $319 $332 $334 $993 $1,126 $1,266 $1,334 $1,411 $257 $351 $375 $391 $ Return of capital to shareowners ($m) Stock purchases Dividends paid Research and Development ($m) R & D as a percent of revenue 8.0% 8.2% 7.8% 7.7% 9.6% Research and development expenditures Capitalized software development costs SEIC appreciation (approximate) as of March 31, year 22% 5 years 144% 10 years 67% Since IPO 26,447% (1981) 6

7 SEI: a history of innovation and market expansion Innovations Trust System Invest idle cash balances Asset allocation Manager of Managers Fee-based advisor Platform Back-office processing Globalization Goals-based investing OCIO & fiduciary management Total operations outsourcing SEI Wealth Platform SM Solutions Processing Services Management Services + + Operations = Services SEI Wealth Services Markets Banks Managers Advisors IWA s Institutional Investors Regions United States Canada UK EMEA, Asia

8 SEI today: segments and target markets Banks Global banks U.S. national and regional banks; large community banks Non-bank private wealth managers and asset management distributors globally Advisors Institutional Investors U.S. registered investment advisors Financial planners Broker/dealers Global and U.S. corporations and retirement plans (DB & DC) U.S. hospitals and healthcare organizations Foundations, endowments and not-for-profit organizations U.S. municipalities and public pension plans Managers Global hedge fund and private equity managers Traditional money managers 8

9 SEI today: global presence and services offered Canada Institutional/HNW asset management Major Operations Center Oaks, PA, United States United States Bank & advisory investment processing Institutional & HNW asset management manager operations & fund processing Europe United Kingdom Bank & advisory investment processing Institutional & HNW asset management Netherlands Institutional asset management Ireland manager operations & fund processing Major Operations Centers London, United Kingdom Dublin, Ireland East Asia Hong Kong Institutional & HNW asset management South Africa Institutional asset management 9

10 SEI today: differentiated solutions current investments Segment Solutions/Platforms s Private Banks SEI Wealth Platform SM Asset management distribution Software-as-a-Service Operating scale Front-office Expanded distribution Advisors Turn-key asset management platform (TAMP) Expanded distribution SEI Wealth Platform SM expands addressable markets: Flexible TAMP Institutional Investors Outsourced Chief Officer (OCIO) New markets Defined Contribution Managers Total Operational Outsourcing platform Ongoing enhancements to: serve larger clients expand addressable markets s in New Businesses Ultra-high-net-worth market Goal Investor Blockchain 10

11 SEI business model Organic Growth Focus on emerging client needs Deliver enterprise platforms Selective acquisitions Client Relationships Forge strategic and intimate client relationships Be a thought-leader Win-win pricing models Financial Strength Focus on sustainable growth in earnings-per-share Generate recurring revenue & predictable cash flows Maintain strong balance sheet Return capital: dividends and stock buy-backs Innovation Long-term focus Foster collaborative, innovative culture Fail fast and learn from mistakes 11

12 SEI competitive advantages Market Leadership SEI recognized as an industry leader and innovator Large and diverse client base Facilitates new business and cross-sale success Complete Strategies Strategies well-developed and coordinated Current economic climate reinforces value propositions Continuous research & development Differentiated Solutions Create new categories of solutions Solve large business issues in support of clients objectives Integrate advice, investments, technology & operations 12

13 SEI platform overviews and additional information 13

14 Private Banks solution SEI Wealth Platform SM Asset Management End-client website End-client statements Tax reporting Confirms/advices 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 Business Management Services MI reporting, SLA/KPI tracking, audit reporting, data integration, document management, professional services INFRASTRUCTURE Infrastructure Services SERVICES Business continuity, hosting, Business information continuity, security, release hosting, information management, security, production release management, services, system production administration services, system administration Wealth Administration Multi-level risk analysis & reporting Consolidated portfolio analysis & reporting Stress testing Wealth Advisory Portfolio structure Manager research and selection Dynamic asset management 14

15 Advisors solution Flexible turnkey asset management platform Solution category Traditional turn-key asset management platform Flexible turn-key asset management platform SEI Wealth Platform Open Custody Platform Do-It-Yourself Capabilities Full custody platform with middle office Full custody platform with middle office Full custody platform Single system architecture Single system architecture with extendable integration Advisor purchased component technology Limited front/middle office technologies SEI investment program Integrated front/middle office technologies with workflow Full range of investment products and securities Front/middle office supermarket technologies without workflow supermarket Market Firm Size $5m - $250m $251m - $3b DIY $3b+ Total Firms 11,526 2, ,774 Advisors 85,680 14,518 3, ,465 Assets $1.13T $1.48T $1.50T $4.11T Sources: Matt McGinness, Best Practice Research; Dennis Gallant, GDC Research. As of September

16 Institutional Investors solution Outsourced Chief Officer (OCIO) Strategic Advice Goal setting & monitoring Asset / liability study policy formulation Management Portfolio structure Manager research & selection Dynamic asset management Risk Management & Monitoring Multi-level risk analysis & reporting Consolidated portfolio analysis & reporting Stress testing Active Liability Driven Investing (LDI) Active management relative to liabilities Glidepath optimization - Capital market point of view Goals-based Reporting Reconciliation of funded status Pension surplus decomposition Attribution of interest rate changes 16

17 Managers solution Total Operational Outsourcing Platform operations Fund operations Flexible, integrated handling of: Fund Administration Fund Accounting Operations / Regulatory and Compliance Best-of-breed Technology Engines Risk Management Middle Office Information Management Workflow/Process Management Risk Management Analytics Distribution services Dashboards - Manager - Investor Regulatory and Compliance 17

18 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. 18

19 Thank you 19