SEI(US:SEIC)2025-09-18 14:02SEI Investments Investor Day Summary Company Overview - Company: SEI Investments (NasdaqGS:SEIC) - Event: 2025 Investor Day - Date: September 18, 2025 Key Points Vision and Strategy - Long-term Focus: The leadership emphasizes building sustainable growth rather than short-term stock performance, highlighting the importance of repeatable wins and client satisfaction [6][9][60] - Sales Events: The company has experienced significant success in sales events, with three of the largest quarters occurring in the last six quarters, indicating a strong sales trajectory [8][10] - Client Engagement: Improved client engagement is a priority, with a focus on understanding client needs and expanding relationships across different units [11][20] Leadership and Talent - Leadership Changes: The company has made significant changes in leadership, infusing new talent to drive growth and innovation [13][29] - Cultural Shift: A cultural transformation is underway, promoting collaboration and breaking down silos within the organization [31][85] Growth Areas - Asset Management: The company is reimagining its asset management business, aiming for high single-digit annualized growth in assets under management (AUM) [71][72] - International Expansion: There is a focus on boosting international returns, with plans to improve margins and revenue in international markets [73][76] - Enterprise RIAs and Community Banks: The company is targeting enterprise registered investment advisors (RIAs) and regional community banks as key growth segments [49][48] Financial Performance - Revenue Sources: Over two-thirds of revenue comes from alternative asset classes, with a strong focus on private credit [68][70] - Cost Management: The company aims to improve operating margins through disciplined cost management and optimization strategies, including the establishment of a Global Capability Center in India [79][81] Capital Allocation - Strategic Investments: The company is shifting its capital allocation strategy to include more mergers and acquisitions (M&A) alongside traditional share buybacks and dividends [58][110] - Balance Sheet Strength: SEI maintains a strong balance sheet with zero debt and approximately $700 million in cash, targeting a positive leverage ratio to enhance investment capabilities [106][108] Operational Changes - Segment Simplification: The company is restructuring its reporting segments from five to three to simplify operations and improve clarity for investors [114][116] - Horizontal Integration: A shift from vertical to horizontal operational structures is being implemented to enhance collaboration and efficiency across business units [85][90] Market Positioning - Competitive Landscape: The leadership believes SEI is well-positioned to capitalize on market trends, particularly in the alternative investment space, and is focused on becoming a leader in this area [61][52] Employee Engagement - Workforce Strategy: The company is focusing on optimizing its workforce strategy, including the use of AI and automation to enhance productivity without compromising service quality [100][104] Additional Insights - Client Perception: The company is working to change how clients perceive SEI, moving from a single-threaded provider to a comprehensive service partner [21][20] - Cultural Buzz: There is a palpable excitement among employees and stakeholders, indicating a positive shift in company morale and outlook [119][120]