SEI Investments Company (NASDAQ: SEIC)

Transcription

1 SEI Investments Company (NASDAQ: SEIC) Dennis McGonigle, Chief Financial Officer Wayne Withrow, Head of Independent Advisor Solutions by SEI Raymond James & Associates 40 th Annual Institutional Investors Conference March 5,

2 MISSION We deliver innovative, comprehensive solutions to help clients achieve lasting success. 2

3 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. 3

4 What is a Platform? 4

5 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 Innovate Focus on sustainable growth in earnings-per-share Generate recurring revenue and predictable cash flows Maintain strong balance sheet Grow dividends and stock buy-backs 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 5

6 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 Platforms Investment Processing Investment Management Investment Manager OCIO SEI Wealth Platform Investment Managers / Family Offices Markets Advisors Institutional Investors IWA s Banks Regions United States Canada Ireland U.K. EMEA, Asia

7 SEI today: global presence and services offered Canada Institutional & HNW, affluent asset management Major Operations Center Oaks, PA, United States United States Bank & advisory investment processing Institutional & HNW asset management Investment manager operations & fund processing Europe United Kingdom Bank & advisory investment processing Institutional & HNW asset management Netherlands Institutional asset management Ireland Investment 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 7

8 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 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 Institutional Investors North American DB corporate sponsors U.K. DB corporate sponsors Hospitals Taft-Hartley plan sponsors Public funds 8

9 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) 9

10 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) 10

11 SEI: Enter or increase focus on adjacent financial markets with existing and new platforms NEW MARKETS Independent RIAs DC plan sponsors Foundations & endowments Large global wealth managers Family offices 11

12 SEI: Enter or increase focus on adjacent financial markets with existing and new platforms NEW MARKETS EXISTING PLATFORMS NEW PLATFORMS Independent RIAs DC fund sponsors Foundations and endowments Large global wealth managers Family Offices 12

13 SEI: Plan Summary 13

14 SEI: Investing in the future We are committed to make capital investments to drive growth Target 8-10 percent of revenues for platform development 14

15 SEI: Apply advanced technologies Robotics Data analytics Blockchain Artificial intelligence Front-end technologies Infrastructure 15

16 SEI financial highlights Net income ($m) Revenue ($m) Net cash from operating activities ($m) $319 $332 $334 $404 $506 1,266 1,334 1,402 1,527 1, Return of capital to shareowners ($m) Stock purchases Dividends paid Research and Development ($m) R & D as a percent of revenue 7.8% 7.7% 9.6% 10.2% 9.8% Research and development expenditures Capitalized software development costs SEIC price appreciation (approximate) as of February 21, 2019 YTD 13% 1 year (29%) 5 years 56% 10 years 411% Since IPO 27,963% (1981) Source: Financial highlights, company filings; SEIC Appreciation, Yahoo Finance, February 21,

17 SEI platform overviews and additional information seic.com 17

18 Integrated services and processes Private Banks: Enterprise wealth management SEI Wealth Platform SM Front Office Services Advisor Dashboards Prospecting, Proposal & IPS Client Reporting Packages Client Website & Mobile App Statements Investment Management Model Management S Asset Allocation Trade Order Management Managed Accounts Performance Measurement Investment Compliance Information Management Services Middle Office Services Client & Account Maintenance Cash Processing Fee Processing Asset Transfer IRA Administration Special Assets Audit & Regulatory Document Management Reporting SLA Management Back Office Services Custody Asset Services Cash Settlement Trade Settlement Corp Actions Reconciliation Tax Processing Aggregation Infrastructure Services Data Integration Business Continuity Hosting Info Security Release Management Production Services System Administration 18

19 Private Banks: Asset management distribution Custom investment management solutions Manager Research Research Selection Engagement Oversight Custom Asset Allocation Advice manager research + portfolio construction = actively managed strategies SEI Platforms Turnkey Investment Strategies Actively managed Manager research Manager selection Portfolio construction Funds Solutions Goals-based Traditional Comprehensive Turn-key Strategies Goals-based or Traditional Customized solutions Flexible Branding Implementation Infrastructure Goals-based Tools & technology Separately Managed Accounts 19

20 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 Aggregation Tax Management Rebalancing Custody CRM Financial Planning Proposals Portfolio Client Reporting Management Firm Reporting Independent Advisor Front Office allows SEI clients to utilize industry leading third party tools in a fully integrated ecosystem. 20

21 Institutional Investors Outsourced Chief Investment Officer (OCIO) Platform + Asset Management Platform Strategic Advice Goal setting & monitoring Asset / liability study Investment policy formulation Investment 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 21

22 Investment Managers Investment Managers Platform Investment operations Fund operations Flexible, integrated handling of: Regulatory and Compliance Best-of-breed Technology Engines Risk Management Fund Administration Fund Accounting Investment Operations / Middle Office Information Management Workflow/Process Management Risk Management Analytics Regulatory and Compliance Distribution services Dashboards - Manager - Investor 22

23 Forward Looking Statements This presentation contains forward-looking statements within the meaning of the rules and regulations of the Securities and Exchange Commission. Our forward-looking statements include discussions about future operations, financial results, structure, and strategies, including our expectations as to how we intend to achieve sustainable growth, our strategies for the execution of our businesses in existing markets, and the manner in which we will seek to invest in and seek opportunities for growth. You should not place undue reliance on our forward-looking statements as they are based on the current beliefs and expectations of our management and subject to significant risks and uncertainties, many of which are beyond our control or are subject to change. Although we believe the assumptions upon which we base our forward-looking statements are reasonable, they could be inaccurate. Some of the risks and important factors that could cause actual results to differ from those described in our forward-looking statements can be found in the Risk Factors section of our Annual Report on Form 10 K for the year ended December 31, 2018, filed with the Securities and Exchange Commission and available on our website at and on the Securities and Exchange Commission s website ( We do not undertake to update our forward-looking statements to reflect the impact of circumstances or events that may arise after the date of our forward-looking statements. There may be additional risks that we do not presently know or that we currently believe are immaterial which could also cause actual results to differ from those contained in our forward-looking statements. 23

24 Thank you seic.com 24