SEI Investments Company (NASDAQ: SEIC) Dennis McGonigle, Chief Financial Officer Mark Samuels, Chief Marketing Officer Sandler O'Neill Global Exchange & Brokerage Conference June 6, 2018 1
MISSION We deliver innovative, comprehensive solutions to help clients achieve lasting success. 2
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
What is a Platform? 4
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 & 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
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 Markets Banks Investment Managers Advisors IWA s Institutional Investors Regions United States Canada Ireland U.K. EMEA, Asia 1968 1980 1990 2000 2010 2017 6
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 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
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
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
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
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
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
SEI: Plan Summary 13
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
SEI: Apply advanced technologies Robotics Data analytics Blockchain Artificial intelligence Front-end technologies Infrastructure 15
SEI financial highlights Net income attributable to SEI ($m) Revenue ($m) Net cash from operating activities ($m) $288 $319 $332 $334 $404 1,126 1,266 1,334 1,402 1,527 351 375 406 434 460 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 241 34 207 Return of capital to shareowners ($m) 350 371 377 74 80 85 276 291 292 89 248 2013 2014 2015 2016 2017 Stock purchases 337 Dividends paid Research and Development ($m) R & D as a percent of revenue 8.2% 7.8% 7.7% 9.6% 10.2% 92 99 103 31 35 29 134 155 50 61 2013 2014 2015 2016 2017 Research and development expenditures Capitalized software development costs SEIC appreciation (approximate) as of May 15, 2018 1 year 26% 5 years 113% 10 years 178% Since IPO 25,788% (1981) Source: Financial highlights, company filings; SEIC Appreciation, Yahoo Finance May 15, 2018. 16
SEI platform overviews and additional information seic.com 17
Private Banks: Enterprise wealth management SEI Wealth Platform SM Asset Management End-client website End-client statements Tax reporting Confirms/advices 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 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 18
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
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
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
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
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. 23
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