Financial Data and Key Metrics Changes - SEI reported an EPS of $1.30, marking an all-time high when excluding one-time items, with earnings growth of 8% sequentially and 17% year-over-year [4][13] - The company recognized unusual items that positively impacted EPS by approximately $0.03 from insurance proceeds and $0.01 from an earnout true-up, offset by $0.02 of M&A expenses and $0.02 of severance expenses [13][14] - Net sales events totaled $31 million for the quarter, with year-to-date net sales surpassing $100 million, a record for SEI [5][9] Business Line Data and Key Metrics Changes - Private banking revenue increased by 4% year-over-year, driven by growth in the SWP platform [14] - The investment manager segment experienced double-digit revenue and operating profit growth, with a notable increase in alternatives across the U.S. and EMEA [14] - The advisors segment posted the highest year-over-year revenue growth, supported by market appreciation and contributions from the integrated cash program [14] Market Data and Key Metrics Changes - Assets under administration (AUA) grew broadly across CITs, alternatives, and traditional funds, with the majority of growth driven by alternatives [18] - Assets under management (AUM) increased, with modestly positive net flows in advisors, driven by growth in ETFs and SMAs [18] - LSV's AUM increased over 4% from Q2, supported by strong market performance [18] Company Strategy and Development Direction - SEI is focused on disciplined execution, transparent communication, and creating long-term value for clients and shareholders [4] - The company is investing in technology, automation, and talent to drive margin expansion and optimize capital allocation [10][19] - SEI is strategically positioned to support large alternative asset managers exploring outsourcing fund administration [6][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth pipeline and the ability to capitalize on opportunities, emphasizing the importance of client relationships [9][72] - The company is optimistic about the impact of recent wins and the diversified pipeline of opportunities, despite a notable contract loss in private banking [9][26] - Management highlighted the ongoing investments in talent and technology to support future growth and client onboarding [33][35] Other Important Information - SEI ended the quarter with $793 million in cash and no net debt, with share repurchases totaling $142 million in Q3 [19] - The company made a $50 million anchor investment in LSV's market-neutral hedge fund, contributing $1.5 million to Q3 results before taxes [19] Q&A Session Summary Question: Sales events from alternatives - Management confirmed that 2/3 of sales events were from alternatives, with a mix of large and small clients contributing to this growth [22][24] Question: Details on the contract loss in private banking - Management clarified that the contract loss was a one-off event due to a major operating model change by the client, not indicative of a trend [25][26] Question: Integrated cash program yields - Management stated that the integrated cash program is currently earning about 370 basis points, with yields adjusted as rates change [31][32] Question: Expense growth in private banking - Management indicated that the expense growth is primarily due to investments in talent and onboarding new clients [33][35] Question: IMS business margins and future expectations - Management expects strong margins going forward but acknowledges the need for ongoing investments to support growth [38][40] Question: International market strategy - Management is in the early phases of defining a go-to-market strategy for international growth, focusing on existing jurisdictions [46][47] Question: Buyback pace and future expectations - Management plans to return 90%-100% of free cash flow to shareholders through dividends or buybacks, with a focus on maintaining this pace [50][51] Question: Impact of credit fears on private credit servicing - Management reported no significant impact on the private credit servicing pipeline, emphasizing the strength of their client base [51][54] Question: High-risk relationships in private banking - Management stated there are currently no known high-risk relationships in the private banking portfolio, reflecting strong client engagement [57][59]