1 SEI Investments Company (NASDAQ: SEIC) Dennis J. McGonigle Chief Financial Officer Raymond James & Associates 38th Annual Institutional Investors Conference March 6, 2017
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SEI Investments Company (NASDAQ: SEIC)
Dennis J. McGonigle
Chief Financial Officer
Raymond James & Associates
38th Annual Institutional Investors Conference
March 6, 2017
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1968 1980 1990 2000
SEI: a history of innovation and market expansion
Regions
Markets
Solutions
Innovations
Investment
Processing
Services
Investment
Management
Services SEI Wealth Services + + =
› Manager of Managers
› Fee-based advisor
Platform
› Back-office processing
› Globalization
› Invest idle cash
balances
› Asset allocation
› Goals-based investing
› OCIO & fiduciary management
› Total operations outsourcing
› SEI Wealth Platform SM
› Trust System
Investment
Operations
Services
Banks
2010
United States Canada EMEA, Asia UK
Investment Managers
Advisors
Institutional Investors
IWA’s
2017
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SEI business model
Organic Growth › Focus on emerging client needs
› Deliver enterprise platforms
› Selective acquisitions
Client Relationships › Forge strategic and intimate client relationships
› Be a thought-leader
› “Win-win” pricing models
Financial Strength
› Focus on sustainable growth in earnings-per-share
› Generate recurring revenue & predictable cash flows
› Maintain strong balance sheet
› Return capital: dividends and stock buy-backs
Innovation › Long-term focus
› Foster collaborative, innovative culture
› Fail fast and learn from mistakes
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SEI financial highlights
$207
$288 $319 $332 $334
2012 2013 2014 2015 2016
Net income attributable to SEI ($m)
$993 $1,126
$1,266 $1,334 $1,411
2012 2013 2014 2015 2016
Revenue ($m)
$257
$351 $375 $391
$425
2012 2013 2014 2015 2016
Net cash from operating activities ($m)
158 207
276 291 292
135 34
74 80 85
2012 2013 2014 2015 2016
Return of capital to shareowners ($m)
Stock purchases Dividends paid
293 241
350 371 377
SEIC appreciation
(approximate) as of February 16, 2017
1 year 35%
5 years 154%
10 years 59%
Since IPO 26,374%
(1981)
80 92 99 103 134
31 31 35 29 50
2012 2013 2014 2015 2016
Research and Development ($m)
Research and development expenditures
Capitalized software development costs
R & D as a percent of revenue
8.0% 8.2% 7.8% 7.7% 9.6%
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Additional information
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SEI
SEI is a leading global provider of asset
management, investment processing
and investment operations solutions.
We help professional wealth managers,
institutional investors, investment
management firms, and private investors
create and manage wealth – and enable their
long term success – by providing solutions
that are both innovative and comprehensive.
*As of December 31, 2016, through its subsidiaries and partnerships in which the company has a significant interest, SEI manages or administers $751.1b in mutual
fund and pooled or separately managed assets, including $283.1b in assets under management and $468.0b in client assets under administration. Client and
employee statistics are as of December 31, 2016.
49 years as a leading innovator and
outsourcer in the wealth
management industry
$751b Assets under management or administration*
~3,200 Employees*
~8,600 Client relationships*
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SEI representative clients
Representative clients are selected by SEI to illustrate a sampling of SEI’s client base as of December 31, 2016, but may not necessarily endorse
all of the services provided by SEI. All trademarks or services are property of their respective owners.
Banks and
asset management
distributors
Investment
Advisors and
Broker/Dealers
Institutional
Investors
Investment
Managers
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SEI markets & businesses
Serving two related markets
Private
Banks
Through five business units
Investment
Advisors
Institutional
Investors
Investment
Managers
New
Businesses (ultra HNW)
Wealth Holders Wealth Services Providers
› Individuals
› Institutions › Distributors
› Manufacturers
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SEI wealth management enterprise platforms
Platforms
Wealth Management Business Process Outsourcing
› Individuals
› Institutions › Distributors
› Manufacturers
Investment
Management
Investment
Processing
Investment
Operations
Three Core Competencies
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Investment Managers
Institutional Investors
Advisors
Banks
SEI today: segments and target markets
› Global banks
› U.S. national and regional banks; large community banks
› Non-bank private wealth managers and asset management
distributors globally
› U.S. registered investment advisors
› Financial planners
› Broker/dealers
› Global and U.S. corporations and retirement plans (DB & DC)
› U.S. hospitals and healthcare organizations
› Foundations, endowments and not-for-profit organizations
› U.S. municipalities and public pension plans
› Global hedge fund and private equity managers
› Traditional money managers
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United States
› Bank/advisory investment
processing
› Institutional/HNW asset mgt.
› Investment manager
operations/fund processing
South
Africa Institutional
asset mgt.
East Asia Hong Kong
Institutional/HNW
asset mgt.
Canada Institutional/HNW
asset management
SEI today: global presence and services offered
Europe
United Kingdom
› Bank/advisory investment
processing
› Institutional/HNW asset
mgt.
Netherlands
Institutional asset mgt.
Major Operations Centers:
› Oaks, PA, United States
› London, United Kingdom
› Dublin, Ireland
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Segment Solutions/Platforms Investments
Private Banks
› SEI Wealth PlatformSM
› Asset management distribution
› Software-as-a-Service
› Operating scale
› Front-office
› Expanded distribution
Investment Advisors
› Turn-key asset management platform
(TAMP)
› Expanded distribution
› SEI Wealth PlatformSM expands
addressable markets: Flexible TAMP
Institutional Investors
› Outsourced Chief Investment Officer
(OCIO)
› New markets
› Defined Contribution
Investment Managers
› Total Operational Outsourcing platform
Ongoing enhancements to:
› serve larger clients
› expand addressable markets
Investments in
New Businesses
› Ultra-high-net-worth market
› Goal Investor®
› Blockchain
SEI today: differentiated solutions – current investments
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SEI competitive advantages
Market Leadership › SEI recognized as an industry leader and innovator
› Large and diverse client base
› Facilitates new business and cross-sale success
Complete Strategies
› Strategies well-developed and coordinated
› Current economic climate reinforces value propositions
› Continuous research & development
Differentiated Solutions › Create new categories of solutions
› Solve large business issues in support of clients’ objectives
› Integrate advice, investments, technology & operations
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SEI platform overviews
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Private Banks solution
SEI Wealth Platform SM
INFRASTRUCTURE
SERVICES
Business continuity, hosting,
information security, release
management, production
services, system administration
Infrastructure Services Business continuity, hosting,
information security, release
management, production
services, system administration
Business
Management Services MI reporting, SLA/KPI tracking,
audit reporting, data integration,
document management,
professional services
Investment Processing Services Asset services, cash management,
corporate actions, custody, reconcilement,
settlement, fee & tax processing
End Client
› 360º view of relationships
› Prospect management
› Dashboard & reporting
› Portfolio planning & proposals
› Alerts & monitoring
› Tasks & activities
Wealth Advisory › Portfolio structure
› Manager research and selection
› Dynamic asset management
Wealth Administration › Multi-level risk analysis & reporting
› Consolidated portfolio analysis & reporting
› Stress testing
Asset Management › End-client website
› End-client statements
› Tax reporting
› Confirms/advices
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Traditional
turn-key asset
management platform
Open Custody
Platform
Do-It-Yourself
Flexible
turn-key asset
management platform
SEI Wealth Platform
Investment Advisors solution
Flexible turnkey asset management platform
Sources: Matt McGinness, Best Practice Research; Dennis Gallant, GDC Research. As of September 2015.
Market – Firm Size $5m - $250m $251m - $3b DIY $3b+ Total
Firms 11,526 2,043 205 13,774
Advisors 85,680 14,518 3,267 103,465
Assets $1.13T $1.48T $1.50T $4.11T
› Full custody platform with
middle office
› Single system architecture
› Limited front/middle office
technologies
› SEI investment program
› Full custody platform with
middle office
› Single system architecture
with extendable integration
› Integrated front/middle office
technologies with workflow
› Full range of investment
products and securities
Solution
category
Capabilities › Full custody platform
› Advisor purchased
component technology
› Front/middle office
supermarket technologies
without workflow
› Investment supermarket
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Institutional Investors solution
Outsourced Chief Investment Officer (OCIO)
Strategic Advice › Goal setting & monitoring
› Asset / liability study
› Investment policy formulation
Goals-based Reporting › Reconciliation of funded status
› Pension surplus decomposition
› Attribution of interest rate changes
Active Liability Driven Investing (LDI) › Active management relative to liabilities
› Glidepath optimization
› - Capital market point of view
Investment Management › Portfolio structure
› Manager research & selection
› Dynamic asset management
Risk Management & Monitoring › Multi-level risk analysis & reporting
› Consolidated portfolio analysis & reporting
› Stress testing
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Investment Managers solution
Total Operational Outsourcing Platform
Fund operations
Distribution services
Regulatory and
Compliance
Investment operations
Risk Management
Dashboards - Manager
- Investor
Best-of-breed
Technology
Engines
Flexible, integrated
handling of:
› Fund Administration
› Fund Accounting
› Investment Operations /
Middle Office
› Information Management
› Workflow/Process
Management
› Risk Management
Analytics
› Regulatory and
Compliance
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Forward Looking Statements
This presentation may include "forward-looking statements," and discussions about
future operations, strategies and financial results. Future revenues and income
could differ from expected results. We have no obligation to publicly update or
correct any statements herein as a result of future developments. You should refer
to our periodic SEC filings for a description of various risks and uncertainties that
could affect our future financial results.
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Thank you