Connecting financial services SEI Investments Company (NASDAQ:SEIC) Investor Presentation, Q4 2021 ©2021 SEI | --- | --- | |--------------|--------------------------------------------------------------------------------------------------------------------------------------------------| | | | | Who we are. | We're part of the financial services industry's backbone, delivering platforms and solutions that help our clients face and embrace change. | ©2021 SEI 2 Who we are. Distinct position. With relationships ...

Financial Data and Key Metrics Changes - Revenues grew by 13% in Q4 2021 compared to Q4 2020, with earnings increasing by 15% and EPS rising to $1.03, a 20% increase from $0.86 in Q4 2020 [5][6] - SEI's asset balances increased by $6.2 billion during the quarter, while LSV's asset balances grew by $1.4 billion [6][15] - The company repurchased 1.5 million shares at a price of $62.44 per share, totaling $95.5 million in stock repurchases [6] Business Line Data and Key Metrics Changes - The Private Banking and Investment Management segments reported net sales events of $31.3 million, with $22.1 million expected to be recurring [7] - The Investment Managers segment saw revenues of $154.5 million, a 19.2% increase from Q4 2020, and profits of $53.5 million, up 28.4% [109] - The total assets under management for the Investment Managers segment ended at $907.4 billion, reflecting a $45.8 billion increase from the previous quarter [110] Market Data and Key Metrics Changes - The global backlog of signed but not installed recurring investment processing revenue stands at approximately $81.7 million [72] - The Investment Managers segment reported a backlog of sold but unfunded new business at $34.4 million [114] Company Strategy and Development Direction - The company is focused on building growth engines beyond its four traditional businesses, exploring opportunities in adjacent markets and services [10] - SEI has made three acquisitions to enhance capabilities in the IMS and Institutional Investor business lines, integrating these companies into SEI [11] - The company aims to continue executing its growth strategy, increasing client acquisition rates, and investing in platform solutions and workforce [114] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's momentum and backlog, indicating a strong sales pipeline and successful repositioning of asset management-related business segments [12][73] - The management acknowledged challenges in the legacy-defined benefit OCIO client base but emphasized a strategy to address fast-growing markets [9] - The company is committed to managing expenses strategically while maintaining a focus on growth and client satisfaction [53] Other Important Information - The effective tax rate for the quarter was 18.3% [17] - The company experienced net negative cash flow of approximately $2.6 billion with market appreciation of approximately $4.1 billion for LSV [15] Q&A Session Summary Question: How does SEI manage compensation expenses amid rising labor costs? - Management discussed adjustments made to compensation for early-stage to mid-level professionals in response to market conditions and competition for talent [21][22] Question: What is the status of employees returning to the office? - Management indicated that U.S. offices were opened on a voluntary basis, with a gradual increase in employees returning, while also emphasizing the importance of flexibility in the work environment [28][32] Question: What is the outlook for LSV in the context of value versus growth performance? - Management noted that LSV had a strong performance in 2021, which positions them well to capture assets as the market shifts towards value [38][39] Question: How does the company prioritize capital allocation between share buybacks and M&A? - Management stated that stock buybacks remain a predominant use of capital, alongside ongoing M&A activities to enhance existing businesses and explore new revenue streams [42][43] Question: What is the current status of the backlog and expected conversions? - Management confirmed that the global backlog is at $81.7 million, with expectations that approximately 50% would be installed over the next 12 months [83] Question: What are the strategic priorities for the company moving forward? - Management highlighted the focus on serving existing clients, building a global pipeline, and managing expenses effectively while ensuring employee well-being [95][98]

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 or UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________________________ FORM 10-Q ________________________________________ ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OF 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from_________to ________ Commission File Number: 0-10200 _______________________________ ...

SEI Investments Company (NASDAQ:SEIC) Q3 2021 Earnings Conference Call October 20, 2021 4:30 PM ET Company Participants Alfred West - Chairman and CEO Dennis McGonigle - EVP and Chief Financial Officer Steve Meyer - EVP, Head of Global Wealth Management Services Wayne Withrow - EVP, Independent Advisor Solutions Paul Klauder - EVP, Head of the Institutional Group Conference Call Participants Owen Lau - Oppenheimer Robert Lee - KBW Christopher Donat - Piper Sandler Ryan Kenny - Morgan Stanley Ryan Bailey - G ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________________________ FORM 10-Q ________________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OF 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from_________to ________ Commission File Number: 0-10200 ____________________________________ ...

Financial Data and Key Metrics Changes - In Q2 2021, revenues grew by 19% year-over-year, while earnings increased by 32% [5] - Earnings per share (EPS) reached $0.93, a 37% increase from $0.68 in Q2 2020 [5] - Asset balances grew by approximately $7 billion during the quarter [5] - The company repurchased 21 million shares at an average price of $61.93, totaling $129 million [6] Business Line Data and Key Metrics Changes - The Investment Management Services (IMS) segment is steadily growing its revenues and profits [7] - The RA segment is executing a new technology-driven strategy, showing positive indicators of recovery [7] - The Institutional Investor segment faced challenges in the legacy OCIO client base but is addressing growth in OCIO and ECIO segments [8] - The Banking segment reported revenues of $123.7 million, a 14.8% increase from Q2 2020, with a profit of $6 million [57][58] - The Investment Manager segment saw revenues of $142.8 million, a 19.7% increase year-over-year, with a profit margin of 40.5% [102][103] Market Data and Key Metrics Changes - Total assets under management in the Banking segment reached $26.3 billion, up 4.7% from Q1 2021 [65] - The Investment Manager segment's third-party asset balances increased by $44.1 billion to $875.9 billion, driven by net client fundings and market appreciation [104] Company Strategy and Development Direction - The company is exploring growth opportunities beyond its four traditional business lines, including Global Regulatory Compliance services and IT services focused on cybersecurity [9] - The One SEI strategy aims to integrate various services and platforms to enhance growth opportunities [66] - The company is adapting to a hybrid work model and is focused on enhancing its digital capabilities and market reach [11][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about capturing opportunities from significant changes in the market and a strong backlog of sales [12] - The competitive landscape for talent is driving up personnel costs, which is expected to continue [18] - Management anticipates that margins may experience choppiness due to ongoing M&A activities and the competitive environment [69] Other Important Information - The effective tax rate for the quarter was 22.3% [21] - The company is increasing spending on corporate marketing and branding to support the promotion of SEI Services [20] Q&A Session Summary Question: Can you elaborate on expenses and spending? - The company incurred $1.9 million in severance expenses, which are not repeatable, and $5.6 million in expenses tied to revenue growth [25][26] Question: How should we think about headcount growth and compensation pressure? - The company expects to increase headcount to support growth, with competition for talent driving up costs [27][28] Question: Was there a one-time adjustment in sub-advisory expenses? - Yes, there was a one-time adjustment in the institutional business related to sub-advisory expenses [36][38] Question: What is the outlook for LSV and potential for better flows? - LSV experienced negative net flows but saw increased sales activity, indicating improving market conditions [48] Question: How is the company managing real estate and travel expenses? - The company plans to maintain its real estate footprint due to long-term leases and expects a hybrid work model [42] Question: What is the status of the backlog for implementation? - The backlog stands at $72.6 million, with most implementations expected within the next 18 months [77] Question: How is the company addressing demand for crypto transactions? - The company supports crypto funds and is expanding its solutions in this area, indicating potential for revenue growth [125][127]

PART I - FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements.) This section presents SEI Investments Company's unaudited consolidated financial statements for the quarter ended March 31, 2021, encompassing balance sheets, statements of operations, and cash flows [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2021, total assets were $2.15 billion, total liabilities decreased to $321.8 million, and shareholders' equity increased to $1.83 billion Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2021 | December 31, 2020 | | :--- | :--- | :--- | | **Total Assets** | **$2,150,901** | **$2,167,256** | | Cash and cash equivalents | $782,582 | $784,626 | | **Total Liabilities** | **$321,793** | **$427,349** | | Accrued liabilities | $199,235 | $299,845 | | **Total Shareholders' Equity** | **$1,829,108** | **$1,739,907** | [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) For Q1 2021, total revenues increased 10% to $455.7 million, with net income rising 19% to $129.5 million, resulting in diluted EPS of $0.89 Q1 2021 vs. Q1 2020 Performance (in thousands, except per share data) | Metric | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | Total Revenues | $455,686 | $414,762 | | Income from Operations | $132,837 | $110,228 | | Net Income | $129,470 | $109,242 | | Diluted EPS | $0.89 | $0.72 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations increased to $136.6 million in Q1 2021, while investing activities used $30.7 million and financing activities used $109.5 million, leading to a $2.0 million net cash decrease Cash Flow Summary (in thousands) | Activity | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $136,573 | $98,972 | | Net cash used in investing activities | ($30,656) | ($17,352) | | Net cash used in financing activities | ($109,512) | ($165,050) | | Net decrease in cash | ($2,044) | ($94,576) | - The company used **$71.2 million** for the purchase and retirement of common stock in Q1 2021, compared to **$130.6 million** in Q1 2020[26](index=26&type=chunk)[167](index=167&type=chunk) [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, revenue disaggregation, segment performance, the LSV Asset Management equity investment, litigation updates, and the new credit facility - The company's revenue is primarily derived from asset management, administration, and distribution fees, as well as information processing and software servicing fees[113](index=113&type=chunk) - The company holds a **38.8%** partnership interest in LSV Asset Management, accounted for using the equity method, with SEI's share of LSV's earnings at **$33.4 million** in Q1 2021[44](index=44&type=chunk)[46](index=46&type=chunk) - The company provides updates on two key legal matters: the Stanford Trust Company Litigation and the SS&C Advent Litigation, with management not expecting a material adverse effect[91](index=91&type=chunk)[100](index=100&type=chunk) - On April 23, 2021, the company entered into a new five-year, **$325 million** credit facility, replacing the previous agreement[69](index=69&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) Management discusses Q1 2021 financial performance, highlighting revenue and net income growth driven by market appreciation, segment performance, and LSV affiliate earnings, alongside liquidity and capital resources Q1 2021 Consolidated Performance Summary | Metric | Q1 2021 | Q1 2020 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $455.7M | $414.8M | 10% | | Income from operations | $132.8M | $110.2M | 21% | | Net income | $129.5M | $109.2M | 19% | | Diluted EPS | $0.89 | $0.72 | 24% | - Revenue growth was primarily driven by higher average assets under administration (up **21%** to **$821.6 billion**) and management (up **$43.2 billion** to **$280.4 billion**, excluding LSV), benefiting from market appreciation and positive cash flows[128](index=128&type=chunk) - The company continued its stock repurchase program, buying back **1.2 million** shares for **$66.9 million** in Q1 2021[133](index=133&type=chunk) - The 'One SEI' strategy, a company-wide initiative to integrate and modularize technology platforms, incurred significant costs in 2020, with investments expected to continue through 2021[136](index=136&type=chunk) [Business Segments Analysis](index=35&type=section&id=MD%26A%20Business%20Segments) All business segments reported year-over-year revenue growth, with Investment Managers leading at 17% revenue increase and Private Banks showing a 168% operating profit increase Segment Operating Profit (Loss) (in thousands) | Segment | Q1 2021 | Q1 2020 | % Change | | :--- | :--- | :--- | :--- | | Private Banks | $6,884 | $2,568 | 168% | | Investment Advisors | $58,267 | $49,889 | 17% | | Institutional Investors | $45,341 | $40,936 | 11% | | Investment Managers | $53,399 | $42,340 | 26% | | Investments in New Businesses | ($9,538) | ($7,522) | (27)% | - Investment Managers segment revenue grew **17%** due to higher asset valuations and positive cash flows into alternative and traditional offerings[148](index=148&type=chunk) - Private Banks segment operating profit grew **168%** due to higher revenue and decreased promotion, travel, and non-capitalized SWP-related costs[143](index=143&type=chunk)[145](index=145&type=chunk) [Liquidity and Capital Resources](index=39&type=section&id=MD%26A%20Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity, with $785.7 million in cash, secured a new **$325 million** credit facility, and used cash for stock repurchases and dividends in Q1 2021 - On April 23, 2021, the company replaced its credit facility with a new five-year, **$325 million** agreement with a syndicate of lenders led by Wells Fargo[161](index=161&type=chunk) - Cash flow from operations increased to **$136.6 million** in Q1 2021 from **$99.0 million** in Q1 2020, primarily due to higher net income[160](index=160&type=chunk)[166](index=166&type=chunk) - Key uses of cash in Q1 2021 were stock repurchases (**$71.2 million**), dividend payments (**$53.1 million**), and capital expenditures (**$4.2 million**)[167](index=167&type=chunk)[170](index=170&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=43&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk.) There have been no material changes to the company's market risk disclosures since the 2020 Annual Report on Form 10-K - There have been no material changes to the company's market risk disclosures since the 2020 Annual Report on Form 10-K[181](index=181&type=chunk) [Controls and Procedures](index=43&type=section&id=Item%204.%20Controls%20and%20Procedures.) Management concluded that disclosure controls and procedures were effective as of March 31, 2021, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the reporting period[182](index=182&type=chunk) - No material changes to the internal control over financial reporting were identified during the quarter ended March 31, 2021[183](index=183&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=45&type=section&id=Item%201.%20Legal%20Proceedings.) The company is party to various legal proceedings, including Stanford Trust and SS&C Advent litigations, with management believing no material adverse effect is probable - The company states that it does not believe the various legal proceedings it is party to are material and that the probability of a material adverse effect from their outcome is remote[184](index=184&type=chunk) [Risk Factors](index=45&type=section&id=Item%201A.%20Risk%20Factors.) There have been no material changes in risk factors from those disclosed in the 2020 Annual Report on Form 10-K - There have been no material changes in risk factors from those disclosed in the 2020 Annual Report on Form 10-K[185](index=185&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=45&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds.) In Q1 2021, the company repurchased **1.15 million** common shares for **$66.9 million**, with **$125.9 million** remaining for future repurchases Common Stock Repurchases in Q1 2021 | Period | Total Shares Purchased | Average Price Paid per Share | Approximate Dollar Value Remaining Under Program | | :--- | :--- | :--- | :--- | | January 2021 | — | — | $192,827,000 | | February 2021 | 554,000 | $57.44 | $161,010,000 | | March 2021 | 598,000 | $58.72 | $125,888,000 | | **Total Q1** | **1,152,000** | **$58.11** | **$125,888,000** | [Exhibits](index=45&type=section&id=Item%206.%20Exhibits.) This section lists exhibits filed with the Form 10-Q, including the new Credit Agreement, CEO and CFO certifications, and XBRL interactive data files - Key exhibits filed include a new Credit Agreement, CEO and CFO certifications (Rule 13a-15(e)/15d-15(e) and Section 1350), and XBRL data files[188](index=188&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Commission File Number: 0-10200 ________________________________________ ________________________________________ SEI INVESTMENTS COMPANY (Exact name of Registrant as Specified in Its Charter) Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the tran ...

SEI Investments Company (NASDAQ:SEIC) Q4 2020 Earnings Conference Call January 27, 2021 4:30 PM ET Company Participants Al West - Chairman and CEO Dennis McGonigle - CFO Kathy Heilig - Controller Paul Klauder - EVP, Head of the Institutional Group Steve Meyer - EVP, Head of Global Wealth Management Services Wayne Withrow - EVP, Independent Advisor Solutions by SEI Conference Call Participants Ryan Kenny - Morgan Stanley Chris Donat - Piper Sandler Robert Lee - KBW Chris Shutler - William Blair Owen Lau - Op ...

SEI Investments Company (NASDAQ:SEIC) Q3 2020 Earnings Conference Call October 21, 2020 4:30 PM ET Company Participants Al West - Chairman & Chief Executive Officer Dennis McGonigle - Chief Financial Officer Kathy Heilig - Controller Paul Klauder - Executive Vice President, Head of the Institutional Group Steve Meyer - Executive Vice President, Head of Global Wealth Management Services Wayne Withrow - Executive Vice President, Independent Advisor Solutions by SEI Conference Call Participants Ryan Kenny - Mo ...