SEI Investments (SEIC) 25 Oct 172017 Q3 Earnings call transcript

Company Profile

Participants

Al West	Chairman & CEO
Dennis McGonigle	CFO
Joe Ujobai	EVP, Head-Private Banking
Wayne Withrow	EVP, Head-Advisor Network
Paul Klauder	EVP, Head-Institutional Group
Steve Meyer	EVP, Head-Investment Manager Services
Kathy Heilig	CAO, VP & Controller
Glenn Greene	Oppenheimer
Robert Lee	KBW
Chris Shutler	William Blair
Chris Donat	Sandler O'Neill

Call transcript

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Operator

Welcome to the SEI Third Quarter 2017 Earnings Conference Call. [Operator Instructions] And as a reminder, today's call is being recorded. I would now like to turn the conference over to your host, Chairman and CEO, Al West. Please go ahead, sir.

Al West

Thank you, and welcome, everyone, good afternoon.

leaders McGonigle, on Heilig, SEI's segment well call, SEI's our Dennis as CFO; of are the here as Controller. All and Kathy by start recapping third XXXX. I'll the quarter and over to to I'll in turn segment. cover it LSV business new the Dennis investments business the the leaders will of results each comment their of that, segments After segments. on Heilig will Kathy some finally, you with important company-wide Then provide statistics.

at Now as each report. of usual, we the will end fill questions

quarter of So XXXX. the let me start third with

share for Third the ago. per quarter third earnings Diluted represents $X.XX from by $X.XX XXXX. the from third year a the a increased XX% for quarter increase of of quarter earnings XX% reported

increased reported also $XX.X grew assets $X.X third a XXXX quarter billion. in billion XXXX. the by assets grew and third quarter management Plus billion. We quarter asset revenue by by from third non-cash $X.X during SEI's X% increase our LSV’s to under balances

approximately of repurchases average addition, share that approximately at In repurchased we to an million million shares stock $XX.XX per the SEI quarter. $XX.X of of price X.X translates during stock

Finally development. we we approximately SEI amortized $XX.X platform approximately previously wealth quarter of capitalized million and the million million IMS SWP $X.X of development. development capitalized of capitalized Plus $XX.X the during

tranche of million heads Regions Our Bank which of each weekends of advisors converted we well. third SWP SWP Three were of ago address client to went $XX.X extremely quarter million to sales migrated their events segment losses recurring will would net both $XX.X large our revenues, generate the projects sales and activity.

regions the Platform-as-a-Service can a to proud large people believe of many project. involved is SEI the clients. in signal by that success performed that the handle SWP the market We’re the We the platform of work installation

increase bank we result a market. activity the expect As in

scheduled and to firms. is unit advisor Trust the Now March accounts another billion $XX the XXXX. from in next It’s great assets, migration XX,XXX for and SWP an success XXX XXXX additional migrated

U.S. the to installation investments an we offices. a And and clients. family concluded a to new This buck technology of that helping competitive the enhance to market and as services the contribution and acquisition the also position platform other are at enter large the multifamily you the quarter In support plans. Partners, global acquisition segment large to IMS Archway foundation with our Investors fine occurring existing and We’re businesses. segment the us also the market provide adjacent defined-benefit segment is specialized endowment investing provide opportunities institutions aim know, the new solutions, corporate downward our serving Institutional of in that in making and the well of as single market as offices beginning we in trend leader Technology

continue facing While we DB have success in markets. market, to newer headwinds the in the are we’ll

business meet summary, each they to lines themselves changes our in investing transform in in growing of the we and their marketplaces. So are as

these While the opportunities forward new of changes opportunities. to full those in look are And long-term. intermediate capturing also we challenging they’re and

my concludes remarks. this so And

other So in then you business it over LSV segments. business to new I'll ask an the on now segment. I’ll update investment to and Dennis turn Dennis? give the

Dennis McGonigle

company. Thanks I’ll about talk new management the items quarter the Good segment, note Al. business few for third and the asset and of afternoon, cover for results everyone. LSV results investments discuss the in

advice development During use technologies. mobile the investment the ultra-high-net-worth the third quarter two segment services business principally investor XXXX web-based its offering areas, of events on with a coupled in segment the continued new focus and of

to $X.X during third investment the incurred million the quarter, quarter a in which material change There's loss the loss the $X.X a compares segment XXXX. million business During been new segment. in of no

of The was for LSV just under XX.X% to principally during contributed of flow. the compared about experienced positive in $XXX.X the during related. to This rate appreciation was and from both interest Revenue lower of which impact option X.X% the first rate the the our the XXXX, quarter. XX% approximate was approximate net on from represent recording million was the income million quarter quarter to XXXX. tax quarter quarter rate performance market the third ownership cash during contribution $XX.X during quarter. and to exercises. change the effect LSV to approximately Quarterly from tax earnings the of XXXX. $X.X growth accounting our fee during stock Similar LSV, due million asset second million is compares third SEI $XX.X our quarter of Regarding the XX%

more rule experienced. a volatile As new will tax likely in than we result this have quarter-to-quarter this rate in we previously stated past,

that As effective Archway earnings results. you're Archway approximately to the $XXX,XXX consolidated impact. Meyer Technologies part Archway a the as This The aware, may quarter like including future some recorded XXXX. discuss X, the the negative in during now all we managers completed of segment. report. Archway items impact from July investment is to cover Steve quarter financials financial the SEI have the will the is I'd net few segment a acquisition first of

approximately As October continually platform mentioned, we Platform-as-a-Service Al the of In Regions five aware, as solution. is life reassess you this the Bank early We remaining on asset. useful years. the are life successfully of installed

will business our In validation the successfully addition Bank. Fargo we with Wells Software-as-a-Service that advanced launch of and technical offering

note fourth expense stock item result is related and amortization XXXX for will of asset. to A life of the we a the reassessing quarter that the and useful million this, expectation and and million components estimates life this of extending with a be expense. between $X certain Based $X per reduction for functionality quarter second may on our in starting Given the an platform portion initial quarter. the are the remaining we in of of currently fourth useful

trance option that achieved. to be adjusted all equity for lead of results fourth certain filed that specific our of and acceleration quarter compensation options year-to-date any overall the occurred, refer it now is fourth than I option our know questions. of with the quarter targets, items. sooner XX-Q soon If one our our options EPS take for expense Please of to best you expense expense issued reduction on XXXX. may as an As information are invest annual our were Based earnings, option this possible of potential EPS part will additional on XXXX in to a into in would currently these modeled. this program

Operator

from [Operator from Oppenheimer. Instructions] question And our first Please Glenn comes ahead, Greene sir. go

Glenn Greene

Just couple questions. of

the the LSV, Just and parse flows? between billion the appreciation on could the $X.X you market positive

Dennis McGonigle

positive they Yes, the net flows was rest market. billion X.X about and had in

Glenn Greene

it And then thinking you life how platform, years five terms of it useful the are far on extending you the is, was what reassessing are now?

Dennis McGonigle

some entire on the related stock Not thing as and to is only for want the principally delivery work and of regions years Wells. that asset Probably, to done and related certain I components. well don’t for five to newer we've segment, Software-as-a-Service built additional market as we've

Glenn Greene

And the XQ? incremental stock about expense think what you option

Dennis McGonigle

some that I it least if dependent in trance of amortization the I the at level decided completely. probably really say would be at expense. reduction but would haven't I think or around range

up an offset wind items. with trying you on cash So,

Operator

question our from go And Lee ahead. comes next Robert from Please KBW.

Robert Lee

of just over last have I stock would May you what question, really just think it assuming in to kind come quarter options have its follow-up it you know truly just the was to kind of clarify mentioned pulling this time? you of the forward some

Dennis McGonigle

XX.

Robert Lee

yes. that’s right And

Dennis McGonigle

occurred like you works. you that Exactly, bit the it little that actually lower would had that’s expense incurred a really way timing get you if the and have something later, frankly when rule

Operator

[Operator Chris William Please ahead. from Instructions] Blair. line now to And of go Shutler

Chris Shutler

questions my Dennis, have answered. been

Dennis McGonigle

Chris. Thanks

Operator

Thank continue. Please you. we else no And one have in queue.

Al West

Joe over be I will to now you, Joe? to segment. banking private it going Thank Ujobai turn discuss our Dennis. to

Joe Ujobai

the third business Great thanks Al. on I’ll activity. quarter and update financial on followed start conversion update an with the new

Bank Third Regions one-time a single SWP-related securities the converted the SEI from the driven revenue an segment, costs as install processing for other management in higher is wealth third-party by quarter service sell second across costs backlog the costs expense including business to client a from U.S. wealth businesses investment accounting The clients. quarter. revenue. is for solution experience and unified on was lead it that the processing quarter. advisor platform conversion is increase agendas. client recurring reasons, About as infrastructure. provides a the were SWP and of sales up asset million and client front in and quarter. million these continue platform the $XXX.X key This of to integrated milestone Bank systems other Regions from solution, revenue slightly a private prospects sales significant and clients also In platform a is X benefit we fully all services The increase asset was services SEI. marketing higher of and slightly institutional a was will expense successfully increase for SWP-related office, trust The the large several target client Bank. because Expenses to signed market The where the significant went finance and large well our profit second new we the growth. as of also partner. due delivering market with based also global we Revenue in relationship functionality management and was management are to slightly investments by to $X.X very U.S. enhancements to conversion was looking SWP down integrated advisors to service, up this to increase especially were the enhancements asset we of second our advanced and and technology operations opportunity this XXth the from client forward Operating will the On of long-term us third platform a achieved client direct XX conversion infrastructure. converting the Regions help from October improve scale significant bank various due

million which and decision bank. events development new and net SEI. SWP Including contracting business XXXX a conversations books clients our is of events clients Sales at SWP The CITY as balance as active SWP good Moody of an Trust client of new to the professional and conversion National Moody National new a current one-time and including an clients pace of Trust City three to additional two new to attributed $X.X moving Trust were prospect activity. quarter or client, National million includes largely continue XXXX book is custom additional names. with During sales current National the $X.X Bank $XX.X of types services well business and is sales million Bank and events to SEI longstanding recurring which the

clients $X revenue. million During Trust we annualized in the six current quarter securing recontracted XXXX

to to strong Trust from Overall, protect clients. is recontracted convert goal current revenue Our of maintain and recontracting these to clients levels SWP. we our revenue until XXXX ready are current maintaining are relationships

new The growth slightly new assets net distributors positive are billion in net $XXX of business recurring assets is $XX with distribution key for the U.S. us management asset our million year. and of the cash wealth in also bringing million in $X Our flows net showed adding by approximately flow conversion new not over representative signed to of revenue. backlog for the Bank, the installed Regions total Yet platform Asia, Europe but new SEI now

$X expect remain improving will profitability backlog, in the and installing on months following, conclusion that take million on of the to happy later. install momentum We are the be banking now to next any the segment. and grow focused XX install capitalizing questions? In we our to I’d to backlog

Operator

go to we'll Lee Robert from And Instructions] line KBW. [Operator of

Robert Lee

the that your have comment called XX last to just backlog that next million about install correct over I I of XXXX? was the think middle Yes, so did to through kind months of curious X

Joe Ujobai

Yes.

Robert Lee

includes that the tranche next of to assumed of Wells speak I that the And the of end year? towards kind so first

Joe Ujobai

No, really be would could later XXXX. know that not it really in

Robert Lee

time about assume at start know block kind want like you of not you okay, how is I obviously for the in I my make and to processing adopted guess chain mean sure have And had - the be new I question or all technology right. built and And the think Later of bad read of investing would if looking and kind platform a a you or… investigating or conceptual over lot see that do you we you do platform mean lot more kind transaction dates just SWP guess this into that to I I and a processing. what that capability companies

Joe Ujobai

- block Investor the area at we but that probably two the the talk talk innovation its and has Steve certainly incorporated platforms also conference, at actually the U.S. he one it around a that yes we’re into will and pilot about and up one November provided today. new Steve chain we other at technologies but absolutely looking think an about pilots in about more SWP some November, the U.K. talk related the and be can in Conference in in that We’ll that

Robert Lee

flow absorbed expense in Should would bought think up running, margins actually just I on in as kind And that one last I kind there meaning some would believe the so numbers was that you our on you regions we originally away through of the segment, may can that may one be be and seats regions of converted. expect some was other incremental? this and be

Joe Ujobai

well while of take of as bank to certainly probably into talked in of Fargo how earlier will have I up Platform-as-a-Service start catch expense that And for bank were year. peak as here Wells regions development finish look Software-as-a-Service. key and development next decline it, at sometime one a or the we we little It sort will model some for this about the our large to this really discussed as year but these model, agendas biggest is as recent calls we

So decline. peaked has and which these compensation we news to that the the see see to will and operating drive expense this will we’re model, momentum conversion big this believe we’re U.S. though infrastructure. some drive more critical We start increase and in also will scale sales side that where service The good believe increased because hoping in on with momentum conversions. we're development these hopefully some will sales expense technology mass we drag and model starting overtime is conversions expense the

but a are balances definitely have might of to quarters, on see the for you incremental that start the So we profitability. couple I focused to think see or

Robert Lee

much lied SAS mean got I know one that that last client know would up regions kind process have question you said the I of today you've potential how I if - platform. you board, one think I I question, kind kind of when on of faster conversion now you type is be know client do building every different last sign you regions but I the had about? another out been

Joe Ujobai

lot XX can it’s of quarter nine big a months. that’s hope do now banks we about think shade that so I’d six We for or we’re that a bank's the all year the we community fast a that, conversion these to Software-as-a-Service think like think that of to to forward. seeing with And depends times. months. us larger regional then banks I pretty we are in in and doing months XX XX in months probably have on organization I but XX the smaller definitely priorities to probably larger months but going working improvements A time

Operator

from And Sandler Donat now of ahead. line from O'Neill. Please Chris go

Chris Donat

you I to and some was there level I something I’m thinking it the this remarks figure want just you I know call trying in your have out ask, prepared if quarter. but mentioned of about is some revenue one-time in out should about always be it? just having particular

Joe Ujobai

in is XXXX much very Trust that’s port really it for revenue that’s pretty things one-time revenue custom a there long by now. with time associated pretty three Trust drawn mentioned sort I little much comes that from of one-time for

be to project integration then are revenue clients revenue able discovery talk achieve moving in upfront the large one-time it implementation for for And so develop, software Trust can about revenue we means things, some them a three that’s process DB systems. it's to clients thing about to revenue and generally and with platform. sales as that we particularly and it's And might custom we their around it

the quarter So included this in one-time. hopefully things the those sort of were

Chris Donat

are right, three all not there And they’re just those of - easy… lumpy

Joe Ujobai

Extremely.

Operator

ahead. from now Oppenheimer. Glenn Please Greene it’s And of go line

Glenn Greene

I just question scheduled timeline early is it the was mean early on thought sort a by your wealth delayed I XXXX? of on conversion for First comments been

Joe Ujobai

part latter the of XXXX. No, it’s

Glenn Greene

change timeframe no there's from in originally? So, your

Joe Ujobai

That’s correct.

Glenn Greene

you sales within out a caught it losses sort few net up quarters not niche of did the client numbers Any the been you called in inning quarter? this

Joe Ujobai

losses this client no No, quarter.

Glenn Greene

And what broad TB&T that’s sense us to the nice sounds some AMT year. like flows directionally of - then AMT of well get is? and the give the happy trending profitability part the you Could the for

Joe Ujobai

plus XX. Yes that. Yes, percent. take probably let XX it's look quick at more probably little Yes that a about me it’s about

Glenn Greene

full conversion of the it regions rate that the of end terms in the we way fourth did is run think then quarter? at to third going rate And the about quarter have the quarter into given

Joe Ujobai

correct. That’s

Operator

line And Shutler Please Chris it's [Operator William go Instructions] now Blair. of from ahead.

Chris Shutler

to going So that expenses some quarters then that software consistent generate thinking there'll to about few come ask reasonably you next couple if Joe fall remain or comp? to off that the and expense events of I you they so be want for is not the that sales additional quarters may a for it is a starts you're is the development said down because

Joe Ujobai

Right, into and and to that Software-as-a-Service and the Wells next to related the side. on conversion sales we conversion year again would continue there development will momentum still Fargo is that expect prior

the So, Platform-as-a-Service going to a probably Regions as the bit for you’ve other some done that’s development and pick conversion of little Bank and expense. sales with up comes off

Chris Shutler

in the flows then under talk there? you the U.K. And the can the U.K. give administration us and in about assets

Joe Ujobai

There were market and U.K. and about AUA is there in $X billion the with I the in think $XX.X appreciation, billion. flows

Chris Shutler

sales then in but if through quarter? the not nature call And quarter one-time side professional I'm and much of was one-time events in that sure lastly and at came you you the the revenue revenue, on in this or sales of how look out the the how services the much if one-time actually

Joe Ujobai

in So million. sales related $X million were SWP at revenue event about one-time $X.X one-time about we recognized sales as to

Chris Shutler

the recognized $X million in quarter? You about

Joe Ujobai

About $X million, yes.

Operator

Thank you.

in We continue. have more please questions no queue,

Al West

Joe. Thank you,

Withrow segment advisors, segment? Wayne will next cover investment this Wayne? is Our

Wayne Withrow

Al. Thanks

in made we supported the by business platform. During At good transformation same most our wealth a progress growth quarter posted we SEI in business. one our date time of to the the the third to traditional

September year. XX% last September of at $XX Assets under from management almost increase reached XX a XX, billion

SEI increase we During driver up $XXX for the effort. of XX.X% XXXX. for This Contributing positive cost expense a quarter also roughly Revenues were both the quarter platform and $XX.X direct increase. million. third to increase to part positive quarter during were our we increase. were our largest up tied and cash positive year's last quarter to third market compares as wealth the XX% flow. personnel An compared this Expense were of net quarter returns. had a migration $XX.X was development to net increase cash this ramped expenses of growth million of flow million and in this the

signed quarter business strong. the of slightly we pipeline balanced XXX advisors front, On new while prospects from remain last our

on Moving more of our to largest $XX assets and platform. platform in counts wealth on the migration on to was AUM we we than now This status platform. we $XX billion migrated have SEIC date platform, now Trust have over the the Significantly, our SEI in legacy and September billion XX. XXXX

XXXX. We and like migration I XXXX fee final have One mention migrations two compression. March stands topic for is planned from would final to

pricing this responding to We our and order expense with X and this the this SMA are on to end fees ratios introduce the of in of reduced line. January for EPF we then market. on funds our trend keep To year two X both aligned product we our on July

examples and commitment continue full to deliver summary, we advisors gather net are These value deliver our All reflected growth. In reductions to three positive of ongoing third recruit quarter to competitive cash just to flow. these results. to are in commitment of business enable our reductions

the financial model and term While FDI transformation future. us for I’ll broader opportunities wealth view efforts currents flexibility it any and our holds platform questions all are our growth have. in about the for business success are critical the these welcome in activities you the near

Operator

Blair. we from a William go And [Operator Chris Shutler Instructions] ahead. Please question have from

Chris Shutler

was cash XXX? just the missed flow could it, just number first So restate you it I

Wayne Withrow

XXX.

Chris Shutler

fee you the levels XXX, the what okay just what’s talked what points what go then casual got the expenses And basis expense are? new little it. other went, the about, could ratios old into reductions the and detail more was

Wayne Withrow

of across a $X.X and What the those all on and third line. to all million items you to the quarter full by profits lines in product fee but would reflected from product those the is product two tell about structure revenues it were It's quarter. reduce I line defers that’s impact

Chris Shutler

than million So $X little less annual?

Wayne Withrow

X.X million.

Chris Shutler

broker And then does competitive by quarters? way cash acquisition landscape, of impact landscape the at your does the next here trend lastly about just flow LPL any should the few over thinking have on dealer the the NPH

Wayne Withrow

frankly think one I say the That’s the us would they because presents did actively LPL acquire and transaction didn't an Advisors. physically at threat answer. both tough a to and looking advices those significant not opportunity I quite we’re that way it but

Chris Shutler

Right.

Wayne Withrow

to we’re a make a they brokers investment new sense. dealer now new they’re preoccupied before Right find product look that finding

Operator

And now to line ahead. from Sandler Chris of Donat go Please O'Neill.

Chris Donat

just who threatening what reduction leaning seen to where some on is go somewhere ask to the are that process see marketplace is and in ETF get you SMA cutting or funds on just to was else want on else curious the there? EPS and on going with to Just fee got I’m thought the that fees, motivates what something their you advisors your and what

Wayne Withrow

the monitored business. going fee bit our fee And else. reductions can growth it’s surely we products do at think constantly we it’s how feedback we a so and a that I Well, to than we get we’re up we engage from often stack And pressure more it's from in to not little advisors, advisors because our all looking mean see to both. of across of our grow the how the anything contribute markets

Operator

from And Please now go to KBW. of ahead. line Lee Robert

Robert Lee

so that I could my how the because am us you an I revenues quarter-mile not AUM a it, a your actually guess increasing kind that because or? but ETF portfolio in ETFs kind for should rate have that optics on your the but sense that think r of capturing will guess and that's for you on demand about is of through know basis on maybe I is believe product of AUM correct it’s flowing fee we from Quick that has don’t demand you just although your results or of lift update been have have your flow kind and I that I question numbers product

Wayne Withrow

AUM the No, our you’re that is the that is SMA reflected that organized to in program in see going our results. program, is way so SMA because to that comes

we first was that in AUM do part So include that that on question. results

of is see we which you see increase part in we know industry. second for product what The the as the that continue the demand question to

Robert Lee

So if of kind I is so your percentage your meaningful guess obviously is we're a cash net still thinking a sense it a then this - as flows portion just it cash is each growing to net your coming in that trying get a the flows growth? quarter a dry of kind trying release a But including flow relatively small. of think to

Wayne Withrow

a significant flow. it’s of our cash No part

Robert Lee

size Moving all? at to the

Wayne Withrow

No.

Robert Lee

could I greater update platform third guess you of with larger question are middle that SWP last roll to on capabilities where the where or out market initiative? with you the advisors party going just advisors to kind us around are you that

Wayne Withrow

we’re to like and roll one we’re be advisors self to client more continue very to to areas, lead our on we more done continue now and and we track to more migration especially out reporting and clients. roll to in get right then valuable out service number the area that the that capabilities Our done, to to are that, and going migration objective

outside on focus the that expanding migrations we So clients. done capabilities get once I will those more think we of the

Operator

the of Oppenheimer. Please from And now go to ahead. Glenn Greene line

Glenn Greene

frequent about January more adjusted going should have fee of pricing against around sort we where in we’re sort sort stage to of the you be adjustments compression? Wayne fee just so of on sort know here July, one are the sort twice thinking and model we and once year question a a you back of the compression,

Wayne Withrow

to question going we’re do to What our at to to hard we we’re need market going me to do as what and I the nothing could theory answer point. product you tell that this do we so planned have for in It’s because monitor competitive. keep

Operator

you. Thank

please have in We no queue continue. questions more

Al West

Wayne. our And is Investors Paul report you, segment. Institutional and on next Klauder segment this will Thank segment

Paul Klauder

results discuss for quarter third going Good XXXX. everyone. I'm the financial to of Al. afternoon Thanks the

primarily market quarter were revenues earnings third quarter acquisitions. third quarter Net DB appreciation This This Operating to $X.X positive but by of was client operating and positive the X% positive increased fundings of primarily appreciation the X% externally of balances due expenses. compared compared quarter fundings part corporate losses of fundings. clients, for compensation and advised billion. mergers offset capital net $XX.X client higher quarter million base to included principally by Third to increased manage and XXXX. This increase due the was profit $XX.X market was third reflect XXXX assets and driven compared funding billion client the is of $XX.X market, to XXXX. and in to higher million Quarter the due to and in $XX.X asset increase of in client a billion assets XXXX.

our signings and $XXX with cross-sell a client U.S. existing signing quarter endowments New clients. and clients unfunded client new included backlog foundations defined-benefit and for million In markets the at quarter growth million the end. was $XXX corporate was four

distinguish is have. and And our OCIO continue landscape are Thank increasing in Our you that the to I'm market, for continues feasibility to sales five may any ourselves. to much. you growth very invest people or competitive management happy answer going expanding to solution and fiduciary we questions

Operator

Instructions] KBW. we question from [Operator ahead. And Please Robert have from Lee go

Robert Lee

the Just want quarter far mean in I came growth, but about and of and not mean to a last follow kind to the called - for margin you obviously your up XX change change running off your investing some bit little I there kind are at. from of the been XX know it’s comment I this

be I then incremental XXs we range? So a in should bit competitive thinking may also for needs you have they kind some low lower of mean that landscape investment margin maybe guess be here pressure that a the then been little from recently more of some while just and given in that the running

Paul Klauder

products going foundations see line. consume fair. it of this that new of that’s going are these revenue as in us really be are to for both you’re these clip down I launching people we’re technology to able also bit the help to going suite markets at endowments continue of But those think around think but we've to in and in be get already high for year that maybe made retrench little just going doing are a by specifically little alternatives be products - I our bit products that back Yes, I that to with need we and that that make diversify and to grow are some to exploit we opportunity. a mean higher should investments to and continuing margin we invest

Robert Lee

U.S. And of just marketplace, of interested how between also have between first so just regions? is competition OCIO curious landscape sense there about increased the kind it, business healthy is U.S. there you is to a competition meaningful kind versus the the difference say where in a but talked trying pretty hear of size new outside to of time get the the say the means I’m two you about in the kind

Paul Klauder

around In well Mercer. players Hewitt, and as the the see They're globe. pension both in space U.K. you like the Towers Willis here Aon Watson, U.S.

consistent pretty across defined-benefit they’re competitors the So space.

markets firms at different [indiscernible] look those across but if foundations, healthcare all at each if competitors. at look look in that are at you of government, As you you we’re respective unique one those you the markets of few look markets and U.S. cut endowments

say universities or So partly. just there just if and just say colleges both healthcare are or people are that it’s

is are size well. qualitative those years, XX fact the consulting do to to $XX to what and we’re and OCIO in for the this skill a XXX organization components those need a remarks, plus we remarks it’s doing going U.S. of very but billion our distinguish been don't the them have that fact separate people clients, quantitative able operation. have When value distinguish we that ourselves we versus So and we

versus distinguishing So the the mentioned some lot U.S. have here a you are see some competitors ones do market but globally different as also we we a characteristics just we niche see mentioned of that in and I or

Operator

go And Please line from ahead. Greene to now of the Oppenheimer. Glenn

Glenn Greene

get could So the to gross on and net for the you up sort fundings the billion, us I what $X.X trying of DB side? the is that losses

Paul Klauder

losses. in $X.X billion gross, $XXX million

Glenn Greene

DB? that And all was

Paul Klauder

DB. exclusively It’s almost

Glenn Greene

terms the the us flavor in whether of growth came signings directionally And where it's a then endowments, markets on the DC signings from? international just give

Paul Klauder

and decisions has bit of other are quarters. our $XXX and their to medical comfortable even so and August, of we million then so makes the phase client were DB in which Aviva slowdown an made. far DB corporate a that then pipeline signing we saw little the in existing in October, in see was are actually difference. the plan grown that But and that in little us first asset, so down U.K. small being are a gave rest up We the foundations is July relative a The endowments, and bit decisions signings their

Operator

now go to Shutler of And Please from ahead. the Chris William line Blair.

Chris Shutler

good. so questions, Paul, my stole Glenn I’m

Operator

you. Thank

have please no in else queue one We continue.

Al West

going Thank And to turn to today to segment. is you, Investment am Manager, segment it Paul. over this discuss I our final Steve Meyer Steve?

Steve Meyer

Al. Thanks Good afternoon, everyone.

the revenue third to revenue million the in the as quarter revenues our to so $XX in third million due the was higher period, as for in as $XX of XXXX. primarily fundings during to for well Archway quarter X in would market client revenue the have or of time XX.X% as of our appreciation quarter the revenue quarter third compared which $XX.X increase been $X $XX.X the the of segment totaled XXXX this revenue from number Archway our new compared addition million For total acquisition Archway. and was XX.X% revenue This million million third or was which XXXX. our was of included higher above

quarterly third for primarily charges. is impact a $XXX,XXX results drag to which acquisition million the or The on amount the $XX.X This was profit expectations. consistent XXXX. $X.X higher includes the attributable business million in of of profit of amortization from quarter our slight and Archway in Archway acquisition Our this XX.X% are with of segment the

approximately was of as to client fundings the $XX Third-party higher billion or of quarter end increase of new of billion billion. the $XX.X approximately assets due asset the third market at appreciation quarter as third of XXXX. to $XX.X the $XX.X combined to net asset compared and at in at were second X.X% balances the billion or with end the X.X% year-over-year of $XXX.X higher XXXX compared of balances billion XXXX asset balances quarter the end The

new included family large to our a existing were sales market funds, wins client to business. our to of in several office across new Demand and equity regulatory our a in new the segments remains of manager expansion From third as well-positioned. office including large of unit million opportunity flow business, an with quarter alternative named all perspective activity strong event an sales and and grow Archway its multiple strong market as current wins with several across segments existing and outsourcing compliance totaled wins sales new capabilities outsourcing and back existing market business business to as Net of clients all at multiple middle the quarter. to market of office well private market traditional business agendas Turning XXXX, comprised across in we adds we platform feel had finally $XX.X SEI. going well market These addition mandate, revenue. for our growth, share a a annualized with

to So in summary, to you remain turn continue on current our our concludes our and and remarks, we I'll may solutions continue to We my That and now on it platforms. plans. growth and over any in growth invest have. long-term questions strategy optimistic prepared short-term executive

Operator

line go Please of [Operator Shutler Blair. Instructions] And now from Chris to ahead. William

Chris Shutler

retention. I backlog was about to ask and

Steve Meyer

no a this backlog of order, retention, coming So $XX.X order strong we is re-contract right losses had and around out pretty million quarter. actually

Operator

And [Operator questions continue. no Instructions] in have queue. more Please we

Al West

give like you to I'd for Steve. you, few now a companywide to statistics, Thank Kathy? Heilig Kathy

Kathy Heilig

third Thanks Al. about quarter. Good afternoon, additional I've everyone. information corporate the some

was $XXX.X third the flow to the capitalized or expenditures share, to software project million capital million. capital quarter. operations excluding the for $XXX.X $XX We year-to-date another third flow million. fourth have year-to-date cash capital million the million. $XXX.X was million, flow expenditures about of quarter, $X.XX expenditures In in $XX.X flow been year-to-date free Free quarter quarter from $XXX.X Third bringing million per cash bringing cash cash from operations was $XX.X and

remind like also Future results. you and unaudited. expected and forward-looking to financial that assumptions our risks revenues differ We this information based would upon are income could that statements release that are many call is involve the on of presented from and comments and in our

obligation or result correct update future any statements developments. publicly no herein a have of to We as

through filings you that You should could periodic of questions And have. various any refer and a to description future please uncertainties risks affect results. our feel may our that financial SEC free to ask other

Operator

And Chris we line Shutler of go go from William Blair. to ahead. Please

Chris Shutler

Thanks follow-up. for taking the

Trustmark, and Joe, for one National third? was one I wins the just what confirm City you talked the SWP to wanted more three about, was Just Joe.

Joe Ujobai

National. Moody

Chris Shutler

Okay. it. Got

Joe Ujobai

Moody City is Angeles. Los in and is Texas, Trustmark in in Mississippi, National

Chris Shutler

that recurring And with of City that National just that in sales about, and book talk about was book talked what the of X.X you business additional was can additional events? the you

Joe Ujobai

net we is so another that top additional inside the Trust client recurring didn’t business included we National number that it’s today, Trust recurring in revenues the for XXXX the of on of number Yes, it’s City in and book that net expect the book past. yes process

Operator

now it’s ahead. Greene Oppenheimer. go Please And of from Glenn line

Glenn Greene

acquired just Archway million on Archway, seen from back maybe and Just from was what you $XX.X about since high-level for on you it? results just any Archway sales any color

Steve Meyer

acquisition strong continue that they pipeline or $XX see just strong we've to XX% pipeline million about that a We have be pre Archway. was growth. seen Yes from

going results expect forward. more So

Operator

you. Thank

have in more no questions We queue.

Al West

Thanks Kathy.

of projects a And our behind proud us. and will largest banking advisory profound are we migration we're have - so have to and Bank businesses. have bound and the ladies to-date advisory to These Regions gentlemen, on effect the conversion

our addition the of direction are taking there progress place in us industry. taking I'm lines making. I believe benefit In soon is each will our in and the are help strategic the changes by they from investments business encouraged

you have our good everyone day So call. a and thank attending for

XX night on Wednesday much. Thursday. Thank will which a is starting presentations you dinner you the with very Investor We Day be have to XXth and an the see on the Hope there. November XXth,

Operator

ladies participation gentlemen, our AT&T Teleconference for your that And for Thank today. conclude and Executive you. using Service. does for conference you Thank and

You may now disconnect.

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