Core Insights - SEI Investments is well positioned in the outsourcing market, with a strong pipeline described as the best in the company's history, as large managers seek to consolidate vendors and move towards outsourced models [1] - The Investment Managers Services (IMS) segment has shifted from a 70% traditional and 30% alternatives mix to an inverse mix, indicating a significant trend towards alternative strategies [2][5] - SEI's strategy focuses on the "three A's" of financial services: administration, asset management, and advice, with recent expansion into the advice channel through the Stratos acquisition [3][6] Investment Management Services - The IMS segment is experiencing record pipeline growth as large managers outsource fund administration, although there may be near-term margin pressure due to new implementations and technology investments [5][6] - SEI's private banking business has improved margins to around 18%, recovering from previous negative margins, aided by leadership changes [8] Asset Management - SEI's asset management segment is viewed as a significant opportunity, with new leadership leading to early recovery, including approximately $200 million in positive inflows after a year of large outflows [4][11] - Plans to launch 7-8 new ETFs in 2026 are underway, with $1.4 billion in ETF flows recorded in 2025 [4][12] Stratos Acquisition and AI - The Stratos acquisition aims to enhance SEI's exposure to the advice channel, which is less affected by pricing pressures compared to other areas [13] - SEI is exploring AI and automation to improve efficiency and reduce costs, with ongoing ventures in AI technology [14] Capital Allocation - SEI has historically maintained conservative leverage but is considering moving towards a net leverage of 0x to 1x over time, with intentions to return 90%-100% of free cash flow to shareholders [15]