Financial Data and Key Metrics Changes - SEI reported earnings per share (EPS) of $1.38 for Q4 2025, marking the highest quarterly earnings performance in the company's history, with a 16% year-over-year increase and a 6% sequential increase [3][12] - The company achieved double-digit earnings growth for the year and over a full percentage point of operating margin expansion [21] Business Line Data and Key Metrics Changes - Private Banking segment posted $28 million in net sales events, significantly contributing to the overall strong performance [4] - Investment Manager Services (IMS) benefited from a $3 million revenue accrual true-up, with overall revenue and margins increasing meaningfully from both the prior year and prior quarter [13][14] - Asset management segments experienced sequential growth driven by market appreciation and healthy flows, despite some client losses in the institutional segment [14] Market Data and Key Metrics Changes - The integrated cash program contributed $21 billion to revenue, matching levels achieved in the prior quarter and prior year [14] - Assets Under Management (AUM) grew by 2% and Assets Under Administration (AUA) grew by 3%, supported by strong win momentum and market appreciation [17][18] Company Strategy and Development Direction - SEI is focused on expanding its reach in the advisor channel and capturing new flows through strategic partnerships, such as the Stratos partnership [6][8] - The company plans to accelerate investment management product launches in ETFs, SMAs, models, and select alternative products [8] - SEI is transitioning its IMS business to platform-level services, leveraging automation and AI to lower costs and expand access [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sales momentum and expects positive developments to be announced in the April earnings call [5][25] - The company is committed to returning 90%-100% of free cash flow to shareholders through dividends and share repurchases [19] - Management acknowledged the need for thoughtful resource reallocation and ongoing cost efficiency efforts to support future investments [20] Other Important Information - SEI repurchased $101 million of shares in Q4, totaling $616 million for the year, representing nearly 6% of total shares outstanding [19] - The company implemented a targeted reduction in force affecting approximately 3% of its global workforce to ensure a more efficient operating model [21] Q&A Session Summary Question: Can you provide more color on the sales events from alts? - Management indicated that over two-thirds of sales events came from a combination of new business and expanding relationships with current clients, with strong visibility for 2026 [25][27] Question: What drives the gap between net recurring and non-recurring sales? - The gap is driven by the growth of the professional services strategy, with many engagements being characterized as one-time professional services [29][30] Question: Can the margin for the private banking segment stay in the high teens range? - Management expects margins to remain in the high teens range, influenced by the mix of professional services [36][37] Question: How should we think about the revenue recognition impact of the two big sales events? - The two wins are recurring revenue SWP wins, and the associated professional services will be realized immediately or over 12-18 months [56][58] Question: How strategically important is the UK market to the institutional business? - The UK market is important but represents a fraction of the overall business, with ongoing efforts to grow that segment [59][60]