SEI(US:SEIC)2025-04-23 23:49Financial 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]