Financial Data and Key Metrics Changes - SEI delivered earnings per share (EPS) of $1.17, an 18% increase year over year [11] - Share repurchases contributed three cents to EPS growth compared to Q1 2024 [21] - The operating profit margin increased to 28.5%, the highest level achieved in the last three years [25] Business Line Data and Key Metrics Changes - All business segments posted higher operating profits and expanded margins [12] - Investment managers' business growth was driven by strong sales momentum, particularly among alternative and global managers [23] - Private banking growth reflected continued momentum from 2024 and recent professional services wins [24] Market Data and Key Metrics Changes - SEI achieved record-breaking net sales events of $47 million in Q1, with $37 million being recurring [12] - AUM and AUA increased on both a sequential and year-over-year basis despite a 4.6% decline in the S&P 500 [31] - Positive net inflows were observed in institutional and adviser segments, offsetting some market losses [57] Company Strategy and Development Direction - The company is fundamentally reshaping its operating model and deepening client engagement [9] - SEI is actively pursuing both organic and inorganic opportunities to accelerate strategic progress [19] - The sale of the family office services business was announced, reflecting a strategic choice for greater growth opportunities outside SEI [13] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in SEI's strong foundation and ability to deliver sustained long-term growth despite market uncertainties [18] - The diversified business model and strong sales pipelines were highlighted as key strengths in navigating challenging environments [15] - Management is closely monitoring market conditions but remains focused on controllable factors such as talent and client focus [18] Other Important Information - SEI repurchased $193 million of stock in Q1, with total repurchases over the last two quarters exceeding $450 million [36] - The company ended Q1 with over $700 million in cash and no long-term debt, positioning it well for future investments [37] - An Investor Day is scheduled for September 18th in New York to discuss growth initiatives [38] Q&A Session Summary Question: Can you talk about the sales environment over the last few weeks? - Management noted strong Q1 sales and no slowdown in activity, with positive traction in both late-stage and early-stage pipelines [40][41][50] Question: Can you unpack the drivers of inflows and the US vs. non-US AUM? - AUM allocation is approximately 80% US and 20% non-US, with inflows driven by a variety of strategies and new distribution partners [52][57] Question: How do you maintain the 28% margin in the current market? - The margin is supported by net sales, cost control, and thoughtful management of investments [60][62] Question: What has driven the significant uptick in sales events? - Key drivers include a solid client base, a horizontal positioning of the company, and increased activity levels across teams [72][75][76] Question: How much of the revenue growth in private banking is from regional and community banks? - Approximately 60-70% of growth is coming from the community bank segment, which is presenting additional opportunities [88][90] Question: Would loosening banking regulations impact the private bank segment? - Management believes the shift to wealth management is a more significant trend, regardless of regulatory changes [96][98]

Core Insights - SEI Investments (SEIC) reported revenue of $551.34 million for the quarter ended March 2025, marking a year-over-year increase of 7.8% and an EPS of $1.17 compared to $0.99 a year ago, with a revenue surprise of +0.86% over the Zacks Consensus Estimate [1] - The consensus EPS estimate was $1.12, resulting in an EPS surprise of +4.46% [1] Financial Performance Metrics - SEI's assets under management (AUM) for Private Banks reached $29.26 billion, exceeding the average estimate of $28.26 billion [4] - AUM for Investment Advisors was $78.84 billion, slightly above the estimated $78.75 billion [4] - AUM for Institutional Investors stood at $78.07 billion, surpassing the average estimate of $75.06 billion [4] - AUM for Investments in New Business was $2.95 billion, close to the $2.99 billion estimate [4] - AUM for LSV - Equity and Fixed Income programs was $87.11 billion, exceeding the estimate of $85.52 billion [4] Revenue Breakdown - Revenue from Investment Advisors was $136.58 million, above the average estimate of $133.40 million, reflecting a year-over-year change of +11.3% [4] - Revenue from Investment Managers was $192.05 million, exceeding the estimate of $188.36 million, with a year-over-year change of +11.2% [4] - Revenue from Private Banks was $137.71 million, slightly below the average estimate of $140.19 million, showing a year-over-year change of +5.8% [4] - Revenue from Investments in New Business was $16.50 million, surpassing the estimate of $15.70 million, with a year-over-year increase of +15.4% [4] - Revenue from Institutional Investors was $68.51 million, slightly above the estimate of $67.54 million, reflecting a year-over-year change of -4.6% [4] - Revenue from Information processing and software servicing fees was $119.20 million, exceeding the estimate of $116.64 million, with a year-over-year change of +11.2% [4] - Revenue from asset management, administration, and distribution fees was $432.14 million, slightly above the average estimate of $429.49 million, reflecting a year-over-year change of +6.9% [4]

分组1 - SEI Investments reported quarterly earnings of $1.17 per share, exceeding the Zacks Consensus Estimate of $1.12 per share, and up from $0.99 per share a year ago, representing an earnings surprise of 4.46% [1] - The company posted revenues of $551.34 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.86%, and an increase from $511.58 million year-over-year [2] - SEI has surpassed consensus EPS estimates three times over the last four quarters, indicating a positive trend in earnings performance [2] 分组2 - The stock has underperformed the market, losing about 12.8% since the beginning of the year compared to the S&P 500's decline of 10.1% [3] - The current consensus EPS estimate for the coming quarter is $1.11 on revenues of $544.58 million, and for the current fiscal year, it is $4.57 on $2.2 billion in revenues [7] - The Zacks Industry Rank for Financial - Investment Management is currently in the bottom 9% of over 250 Zacks industries, suggesting a challenging environment for the sector [8]

Financial Performance - SEI reported Q1 2025 revenues of $551.3 million, an 8% increase from Q1 2024's $511.6 million[3] - Operating income for Q1 2025 was $157.1 million, reflecting a 25% growth compared to $125.9 million in Q1 2024[3] - Diluted earnings per share (EPS) rose to $1.17, an 18% increase from $0.99 in the same quarter last year[3] - The operating margin improved to 28% in Q1 2025, up from 25% in Q1 2024, marking the highest level in three years[6] Segment Performance - Investment Managers segment revenues increased by 11% to $192.0 million, with operating profit growth of 19%[5] - Private Banks segment saw a 6% revenue increase to $137.7 million, with operating profit growth of 34%[5] Asset Management - Total assets as of March 31, 2025, were $2.57 billion, down from $2.68 billion at the end of 2024[14] - Total assets under management increased to $485.976 billion by March 31, 2025, up from $476.713 billion in December 2024, representing a growth of approximately 1.8%[18] - Client assets under administration reached $1.084278 trillion as of March 31, 2025, compared to $1.055943 trillion in December 2024, indicating an increase of about 2.7%[18] - The average total assets under management for the first quarter of 2025 were $487.254 billion, reflecting a slight increase from $486.481 billion in the fourth quarter of 2024[22] Sales Events - Net sales events reached $46.6 million in Q1 2025, contributing to a record total of $153.2 million over the trailing 12 months[6] - Net recurring sales events for the first quarter of 2025 totaled $36.840 million, a significant increase from $28.211 million in the fourth quarter of 2024[26] - Total Sales Events for Q1 2024 were $21,285 million, compared to $21,966 million in Q1 2023, indicating a slight decrease of about 3.1%[30] Share Repurchase and Divestment - SEI repurchased 2.5 million shares for $192.8 million at an average price of $77.10 per share during Q1 2025[6] - The company plans to divest $14.6 billion in assets related to the Family Office Services business during the second quarter of 2025[24] Investment Processing - Total revenue from Investment Processing-related Businesses for Q1 2024 was $24,480 million, showing a significant increase from $21,285 million in Q1 2023, representing a growth of approximately 10.6%[30] - Total Investment Processing-related Businesses revenue for Q1 2025 is projected to be $40,250 million, showing an expected increase from Q1 2024[30]

Core Viewpoint - SEI Investments (SEIC) is expected to report quarterly earnings of $1.12 per share, a 13.1% increase year-over-year, with revenues projected at $547.69 million, reflecting a 7.1% year-over-year growth [1]. Earnings Estimates - The consensus EPS estimate has been revised down by 6.9% in the past 30 days, indicating a reassessment by analysts [2]. - Revisions to earnings projections are crucial for predicting investor behavior and stock price performance [3]. Revenue Projections - Analysts estimate 'Revenue- Investment Advisors' at $133.40 million, a year-over-year increase of 8.7% [5]. - The consensus for 'Revenue- Investment Managers' is $188.36 million, suggesting a 9.1% year-over-year change [5]. - 'Revenue- Private Banks' is expected to reach $140.19 million, indicating a 7.7% increase from the previous year [5]. - 'Revenue- Investments in New Business' is projected at $15.70 million, reflecting a 9.9% year-over-year growth [6]. Assets Under Management - 'Assets under management - Investments in New Business' is expected to be $2.99 billion, up from $2.49 billion in the same quarter last year [6]. - 'Assets under management - Investment Advisors' is forecasted at $78.75 billion, compared to $79.44 billion in the same quarter last year [7]. - 'Assets under management - Private Banks' is estimated at $28.26 billion, slightly up from $28.02 billion year-over-year [7]. - 'Assets under management - Institutional Investors' is projected at $75.06 billion, down from $78.15 billion in the same quarter last year [8]. - 'Assets under management - LSV - Equity and Fixed Income programs' is expected to be $85.52 billion, compared to $93.62 billion year-over-year [8]. - 'Assets under management - Investment Managers' is likely to reach $197.38 billion, up from $161.86 billion in the same quarter last year [9]. Client Assets Under Administration - 'Client assets under administration - Investment Managers' is estimated at 1,025,964, compared to 959,904 in the same quarter last year [9]. - 'Client assets under administration - Private Banks' is projected to reach 8,350, up from 8,024 year-over-year [10]. Market Performance - SEI shares have decreased by 5.5% in the past month, slightly better than the Zacks S&P 500 composite's decline of 5.6% [11].

Group 1: SEI Investments - SEI Investments announced an increase in its share buyback authorization to $556 million, up from a previous $500 million, representing approximately 6.1% of its market cap of about $9 billion [1][2] - In 2024, SEI spent a record $500 million on buybacks, and utilizing the full $556 million in 2025 would set a new record for the company [2] Group 2: Broadcom - Broadcom announced a new share repurchase program allowing for up to $10 billion in buybacks, which is about 1.2% of its total market capitalization [4][5] - The buyback authorization is set to end on December 31, 2025, indicating a rapid utilization plan within eight months, contrasting with typical long-term buyback programs [5][6] - Broadcom has increased its buyback spending significantly post-2021, averaging around $6.7 billion per year over the last three fiscal years [7] - The company also announced an 11% increase in its dividend in December 2024, with a current dividend yield of approximately 1.3% [8] Group 3: XPO - XPO announced a share repurchase authorization worth $750 million, which replaces its previous program and equates to about 6.8% of its market cap of around $11 billion [10][12] - Historically, XPO has been slow in utilizing its buyback capacity, averaging only $69 million per year from 2020 to 2024, despite having spent significantly more in previous years [11][12] - The new buyback authorization suggests that XPO may be preparing for a more aggressive repurchase strategy in 2025 [12] Group 4: Overall Market Implications - Together, SEI Investments, Broadcom, and XPO have raised their buyback capacity by over $12 billion, reflecting a strong commitment to returning capital to shareholders [12]

Core Points - SEI plans to release its earnings for the first quarter of 2025 on April 23, 2025, after market close [1] - A conference call will be held at 5 p.m. Eastern Time to discuss the financial results [1][2] - The public can listen to the call and access a replay through the company's investor relations website [2] Company Overview - SEI is a leading global provider of financial technology, operations, and asset management services within the financial services industry [3] - The company customizes its solutions to help clients effectively deploy their capital, including money, time, and talent [3] - As of December 31, 2024, SEI manages, advises, or administers approximately $1.6 trillion in assets [3]

Core Insights - SEI has launched SEI Access, an alternative investment product marketplace aimed at enhancing the investment experience for wealth managers and financial advisors [1][2] - The platform is designed to provide broader access to alternative investment products, addressing the growing demand for personalization and investment choice among investors [2][3] Group 1: SEI Access Features - SEI Access offers an end-to-end solution that includes automated processing, increased transparency, and educational tools to assist advisors in making informed financial decisions [3][4] - The platform integrates subscription processing capabilities, allowing for efficient execution and investment management directly from the marketplace [6][8] Group 2: Market Reach and Performance - As of December 31, 2024, SEI Access supports over 250 wealth management firms and 165 fund managers, providing access to approximately 300 alternative investment funds [5] - The platform has processed around $4.9 billion in alternative transactions, indicating strong market engagement and adoption [5][8] Group 3: Strategic Investments and Growth - SEI's acquisition of Altigo enhances its capabilities in subscription automation technology, further solidifying its position in the alternatives ecosystem [4] - The company is committed to investing in innovative technologies to improve client solutions and drive growth, as evidenced by its recent acquisition of LifeYield [4]

Core Viewpoint - SEI Investments reported a mixed earnings performance for Q4 2024, with earnings per share slightly missing estimates but showing significant year-over-year growth. The company faces challenges from rising expenses, although revenue and assets under management (AUM) have improved [2][3][4]. Financial Performance - Q4 2024 earnings per share were $1.19, missing the Zacks Consensus Estimate by $0.01, but reflecting a 30.8% increase from the prior year [2]. - Net income for Q4 2024 was $155.8 million, up 29% year-over-year, surpassing the estimate of $151.3 million [2]. - For the full year 2024, earnings per share were $4.41, also missing estimates by $0.01, but up 27.5% year-over-year. Net income increased 25.7% to $581.2 million [3]. Revenue and Expenses - Total revenues for Q4 2024 were $557.2 million, a 14.9% increase year-over-year, driven by higher asset management and service fees, exceeding the Zacks Consensus Estimate of $553.9 million [4]. - For the full year 2024, total revenues reached $2.13 billion, up 10.7% year-over-year, also beating the Zacks Consensus Estimate of $2.12 billion [4]. - Total expenses for Q4 2024 were $411.6 million, a 7.4% increase year-over-year, driven by various cost components, slightly above the estimate of $404.8 million [5]. Assets Under Management - As of December 31, 2024, AUM was $476.7 billion, reflecting a 10.4% increase from the prior year. Client assets under administration (AUA) were $1.06 trillion, up 12% year-over-year [6]. Share Repurchase - In the reported quarter, SEI Investments repurchased 3.1 million shares for $259.5 million at an average price of $83.43 per share [7]. Market Sentiment and Outlook - Estimates for SEI Investments have trended downward over the past month, indicating a potential shift in market sentiment [8]. - The company holds a Zacks Rank 3 (Hold), suggesting an expectation of in-line returns in the coming months [11].

Core Viewpoint - Aquiline has entered into a definitive agreement to acquire SEI's Family Office Services business, which will operate as Archway post-transaction, leveraging the established Archway Platform brand in the family office market [1][2]. Company Overview - Aquiline is a private investment firm focused on financial services and technology, managing approximately $11.3 billion in assets as of September 30, 2024, and has deployed around $7.0 billion across private equity, venture, and credit strategies [7]. - SEI is a leading global provider of financial technology, operations, and asset management services, managing, advising, or administering approximately $1.6 trillion in assets as of December 31, 2024 [9]. Transaction Details - The total purchase price for the acquisition is $120 million, with the transaction expected to close in late Q2 2025, pending regulatory approval and customary closing conditions [5]. - SEI's Family Office Services business had $723 billion in assets on the Archway Platform as of December 31, 2024, providing technology and outsourced services for family offices [2][6]. Strategic Implications - The acquisition is expected to enhance the growth and adoption of the Archway Platform within the private wealth landscape, as Aquiline aims to invest further in the platform [3][5]. - SEI has committed to investing in areas of its business that drive growth, having made substantial investments in solutions for the family office segment over the past seven years [4].