SEI Investments (SEIC) 21 Oct 202020 Q3 Earnings call transcript

Company Profile

Participants

Al West	Chairman & Chief Executive Officer
Dennis McGonigle	Chief Financial Officer
Kathy Heilig	Controller
Paul Klauder	Executive Vice President, Head of the Institutional Group
Steve Meyer	Executive Vice President, Head of Global Wealth Management Services
Wayne Withrow	Executive Vice President, Independent Advisor Solutions by SEI
Ryan Kenny	Morgan Stanley
Robert Lee	KBW
Chris Shutler	William Blair
Owen Lau	Oppenheimer
Chris Donat	Piper Sandler

Call transcript

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the SEI Third Quarter 2020 Earnings Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time. [Operator Instructions] As a reminder, this conference is being recorded. to CEO, conference Al like host, to now and Chairman West. would turn over the our I Please, go ahead.

Al West

Thank you and welcome, everyone.

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

As usual, field the at this end of we will report. questions

we Now our service the priority workplace From delivery and of investing has to our immense term. workplace for home the and to grateful communities. this while other and best our set strength shines are in third with our before the to to the challenges the of health safety health our of At face the when extreme. crisis SEI, home clients, transitioning we to The their seamless am workforce supporting each the for incredibly all SEI both along of speak we of and are results quarter, circumstances beginning pride the I globe, today. of and still clients. been COVID cover with dealing I our take long pandemic. the the families, will we employees on the Around

ability the of from crisis to over They of better the years stronger experience. take emerge proven We are weather the opportunities. the been that uncertainties our past of and business have XX and tomorrow's current positioned shaped models have advantage today bedrock of to

clients. the be heart on We successes. in straightforward: of we Our our our growth-generating look strategic remain keeping believe invest world-class and sharing also workforce our success forward innovate at secret the vision initiatives is be healthy best-in-class service technology, relentless you. in continuously launching to and future our executing to deliver We'll productive, will focused our and with our to progress on

turn So of results attention the to third XXXX. financial let's quarter our the

earnings quarter third $X.XX XXXX decrease is for the of share $X.XX of earnings from per of decreased a Third by the the second year quarter XX% Diluted sorry. a for -- ago. from XX% reported XXXX, quarter

from increase also in quarter revenue capital third year's to reported in markets. our This XXXX XXXX. X% benefited a third a from We third quarter quarter rebound results

and during price the during under third under to asset shares Also non-cash million by flows of million approximately the balances That LSV's stock of at quarter. appreciation. from X.X per repurchased cash $XX.XX an quarter grew average Our gained third balances approximately we both repurchased share. during $XXX market just stock SEI just quarter, translates $XX the billion of billion. $X

Now, investment the we initiatives. investment is part contained growth-generating of large this is which quarter also The growth strategy. in our our -- a One continued effort our SEI newest

adjacent by SEI SEI markets them of to and accessible will types recall, leverages all existing you other One all platforms clients, new As all platforms. and making

As previously of the capitalized $XX.X approximately we of have capitalized amortized development. suite capitalized date a million of not third One development and $X.X investment in the we the approximately million work. made SEI by-product To of quarter, any

production. to turning revenue Now

revenue. million although fact encouraged throughout and They generate are we that $XX recurring million. teams net events reflect are sales revenues approximately expected losses this year's to of entrepreneurial annualized of totaled company net we sales -- quarter successful the the Third sales client have $XX approximately and with results. Clearly, driving

sales speak results. will specific heads unit Our to their

three objectives. business have We

operations. deliver to is The first smooth, safe soft,

innovate, reach these so significant our new The inherent realities. our been to to business future. models same, clients and the busy helping objectives We we keep and to have be by in change. we can things adapting grow opportunities third grow is second never capture mental objective in the so we will feel our that continuously growing second know excuse -- quarter To objective me, ready to the the is

concludes this to heads update my LSV an segments. segment. that, Dennis? the remarks, you Now our the update to Dennis and give it formal And on after their turn in results all I'll will in business and investment over segment new

Dennis McGonigle

investments the segment LSV asset afternoon, discuss business Thanks, the and cover results Al. quarter results the everyone. management. Good third I in will for of new

related investor management focus the initiatives, During through its the services stand-alone strategy. and XXXX, of those wealth components IT the including our business and business ultra-high-net-worth segment for continued segment research additional on processing platforms on larger opportunity our to group third SEI into the space quarter private new management wealth modularization investments to technology in business One the deliver our and investment and

to During SEI the third our in well have business during business approximately the strategy entire lines. million segment a to $X.X initiative XXXX. This incurred One couple quarter tied to loss company, we $X new which across in an quarter, discussed the $X.X company-wide as in as is the reflects prior to strategy, opportunities of which business is million, compared that a of creating increase loss specifically related One in The open SEI of our increased expenses quarters. Of investments effort. new a segment this million investments, of loss our

contribution income approximate quarter. income million XXXX. quarter ownership in during third Regarding LSV LSV, $XX.X LSV of the $XX.X contributed XX% the in from the of a represent third million quarter This interest XXXX. during of SEI our during to third to our earnings compares

grew of $XX.X second quarter $X.X million cash approximately negative Revenue experienced during during quarter the the appreciation was billion. Assets of $X second XXXX. or for net third flow XXXX the I coming thought, $XX question during approximately offsetting quarter approximately from that. no $X.X with third approximately billion. Since expenses, fees. X% billion I quarter address market quarter the – I LSV the grew is on know performance to would Expenses million approximately

annual the one-half most under this consistent quarter growth of million we other of areas relates expense growth. beginning well our at to approximately with and in $X salary as as workforce process of for compensation of hiring the continued compensation our adjustments made Just

approximately segments professional health spike experience the as hope one-time are XX-Q. a we XX% self-insured. with essentially couple These final breakdown insurance costs million or addition, approximately The not and I second well a nature that G&A. or In since as to actual to our which quarter fees some in and during due by and $X million disclosed are quarter, result our $X.X are in was spread is predictable incidents driven generally helps. expense related trade of a in costs severance costs services associated corrections of as across XX%

quarter rate for any you was now have. XX.X%. I tax questions Finally, will take our effective the

Operator

Morgan Thank Kenny ahead. you. And go the Please [Operator Instructions] we'll with Stanley. of line go to Ryan first

Ryan Kenny

Dennis, you? are Hey, how

Dennis McGonigle

onboard. Good. Welcome Ryan. Hey,

Ryan Kenny

you. Thank

want there Just it's get do to a resemble this thinking that or year how Do and in about peaks XQ One more more year? to still Should of you're think XXXX? sense is the that Or trajectory next spend. something there of you SEI XXXX? less

Dennis McGonigle

there's of part come second the then the year we Yeah. course There's the still I to certainly into half think, the of first start over but of said year, – early and to the half more year. in call down the last on of do it'll as the the

in platform it's we're the project, as the project we're sustainable than we past, So – more – trajectory and take of said a a it'll a build.

Ryan Kenny

Thanks.

Dennis McGonigle

You’re welcome.

Operator

you. Thank

Next ahead. from line of KBW. Lee with the Robert Please go

Robert Lee

Dennis, all you. of Thanks, and also Hi. Great.

Dennis McGonigle

Thanks, you Rob, too. Yeah.

Robert Lee

– assets may guess, kind I with quick anything change to we I just there's they mean there over near-term you the color should obviously questions. any have if Two I with like known into thinking in know, – Thank I coming struggling mean, you. any be year-to-date of I LSV, of a as XX%. that insight they've that Or we don't down could known bunch be some think been have quarters? flows and trends reason if look terms in mean, the its about ahead? redemptions this

Dennis McGonigle

generally. obvious very for I predictability of it's mean, say the they're And I specific trends not good clearly of quarter-to-quarter. that in is there's LSV real to they're since market, up kind and that. Yeah. good caught segment value aren't investing can't the

half quarter flows about As from clients negative the of flows half the this negative and of were were flows from lost the about existing past clients.

Arguably, So the it's gets capital outlook they clients. were value as existing and rebalance improves not really And if would as really of say potentially that I with away the some predictable. -- this more to segment equity markets. itself for reverse committed would not to

actually If couple you a of positive had back quarters, remember they'd moves.

even So predictable. it's less

they're other This really they're kind through. And So the though on will know of high very suggests type this the a that before prolonged at. one department we're certainly it conviction which as are perspective thing is conviction Those about this what turn They than the turns even we -- talked we're -- periods. been worth, for it's call of it has favor. a much what with when historical last value. shocker what convicted doing, more high just about the good about

Robert Lee

your in know And just this appreciate embedded I'm I some maybe their that $X.X know and of expense Great your over data. million. -- client July I mentioned I exposed it’s think of as pack of at some or I one end is so guess But if the was you back it. if the of numbers I curious it was the -- had don't there and vendors a ransomware follow-up

this curious the impacted with any expense kind that? of Or other maybe vendors. and way out kind for one it approach related is of you've maybe or outside in how changed was of working your if of Steve or your -- a question I to to seen fall some So maybe any or segments

Dennis McGonigle

No.

itself of is we that in that that's front, event say, just particular firm expect top that this we some associated improvement. in expense with million of sure On the certainly expense did to on that we there to we're and constant always I would number, make portion repeat were $X.X a a what don't vendor. that's of

or it an have to with this our been that management, approach to vendor comes consistent it's we management. So would management we area risk and had when whether event vendor not

our Now would issues caught particular event this if us something had in it. at elements the that this have to points vendor terms with associated that program of it in even this

follow-up here. we're behind kind a leave questions at from more improving is I'll looking it it's we market condition feel Steve end-market kind of that. any maybe just more of our we're from of perspective So to But It's and as it this well. elements us. since -- to all like evaluating

Robert Lee

we of pretty it's that trailing much least for quarters a mean there that your... more of should bit you this expenses behind expect little be or couple to a I may kind at related and

Dennis McGonigle

see we don't that, I incrementally Yes. I they're area we down would bit. be I professional the of what and little than expensed have -- it's probably in quarter on be related it's any a quarter. some say top And But what will wouldn't say anything services -- pocket of greater expenditures incurred out would third given third only it'd we've in others. not consultants

Robert Lee

question. taking for my Thanks Great. Okay.

Dennis McGonigle

No problem. Thank you.

Operator

Thank you.

the to ahead. go William we'll Blair. go Please Chris Next Shutler line of with

Chris Shutler

Hi, Dennis. afternoon. Good

Dennis McGonigle

Chris. Hi,

Chris Shutler

let's One guess, about SEI want reiterate. just to I the ask So see. first I to

business So new was the you said about SEI? $X million One of in expense segment

Dennis McGonigle

Yes. That's with consistent as quarter second well.

Chris Shutler

down into in guess we it XXXX? And basically terms about down. so do year $X next so level I you maintain come that per going come of expect then early quarter how -- you it'll to through start And to much into and progress million Yes. forward think should as how or that

Dennis McGonigle

Yes.

in a the then third off and I the in little much first the is pretty think the more bit year. second expectation through the it's end gradual books would the my to more and significant be in it by -- quarter it's hopefully in where quarter, of

Chris Shutler

to And then that you explain would ongoing is expense? the is that that just cost an Okay. item just $X quickly? care million confirm mentioned, Great. you And that health --

Dennis McGonigle

may health there's a all, No, first not or on care. of not, whether One, self-insured there. couple -- aware in of elements we're you you're

of saw arena health the as I care. in companies it's experience first similar was which healthcare a we'll obviously, think away as second quarter the But top. what we for stayed we up the go because lot back catch-up COVID it there in appointments We other have probably third quarter and in And from going their in over quarter. and for third the pay the coverage are catastrophic to popped medical of the have the medical third people treatments and quarter in part,

added catch-up that some in also we And fairly was there if to -- healthcare you situation health of terms So we unfortunately significant individual had expense. then usage the one will.

that expect but be for to -- people of it will There itself that level normalize. should repeat in still quarter. don't may So I the catch-up fourth some

Chris Shutler

it. Oh the I there Got onetime one was segments. said mentioned more think let's was it see any maybe you than segments expenses the million. And pronounced detail. it was then that -- you $X.X it And Thanks across more. Okay. million for the just $X.X Were others? where

Dennis McGonigle

Probably a combination G&A. of

probably -- was -- little investment it so the and institution. was But Maybe more in Some in around. then a banking. spread bit in pretty severance it's managers

Chris Shutler

Thanks right. all lot Okay, a guys.

Dennis McGonigle

by So its the pretty good way.

Chris Shutler

Okay. Make sense. Thank you.

Operator

I have Owen ahead. do from Oppenheimer. go And question with Lau a Please

Owen Lau

Dennis. for you question, Thank taking my

would XXXX? and additional we So home. spend that other going view companies Could give think of you. downside of some how maybe from T&E SEI's XXXX? say upside you operating us into model of the to Thank an potential, any going or started talk working G&A save about And should save into any please updated

Dennis McGonigle

we're right in significant in now work have XXX the mean workforce employees I our here our March bringing the Sure. the until about X. is announced recently way be again so offices that Pennsylvania. return-to-office mostly We've thinking earliest back numbers any we we wouldn't or about

able we months progressed made But further same were of we -- would now. be the closer time year-end, the some been ago processing. announcement. than functions we specific job our also pull it has back more that to reminded people by need a few So so time instances into would hopeful for particularly or to -- there were when that to get we that the we more offices we so workforce have for may bring their At year-end where periods office we people pandemic have might

I a work-from-home change employees comfortable that making on have. additional very can don't of next experience of as adjustments terms see over In really cost, have front much the quarter. sure would that or we cognizant incur -- We're they our

that already. a having, our locations children are of or that done the school-aged school-aged on the cognizant working -- of lot we've children. So also challenges front all really We're in than younger parents

celebrations. little movement we least expect I that we've that So I will occur think visitors. certainly them anywhere a I and really And field And not and over to -- any planning we're big what's and over We And a occurring changed can there. and when campus made to close or is clients travel get our our One time, workforce want when visiting into really the on movement very don't willingness a it twofold. that limited basis. to and expect prospects will lot don't clients our normal call client to bit that expand quarter. but I'd the conversely the out comes say a it really for help protective very and to We're it's a it let travel with while. T&E, of comes of bit I'll conversely some events next of the of it and don't workforce there adjustments issue. expect at little

So campus the that. We campus prepared accommodate we for visitors safely. to here can

for -- by our and travel. it client employees were required travel and They I travel don't voluntarily demand travel but We much. who change see protocols entertainment or have might do to

Owen Lau

Thanks very helpful. you. Thank

Dennis McGonigle

Thank you. Welcome.

Operator

you. Thank

Next we go Please of Lee the line with go Robert to KBW. ahead.

Robert Lee

Thanks. Great.

any But just a thinking option X. of with as maybe a it's going tax exercises and sit of now, given rate what always kind you follow-up venture I hard predict you're to moves that forward? kind not. what around tax Just know of where

Dennis McGonigle

Yes.

in fourth little benefit for to think be elements It we most be the this third third some from bit quarter will a should get it quarter tax part. quarter. similar the -- of range on in a I range expiring

Robert Lee

saying you the would want you thing guys? maybe reason any get road think sense -- it you would few But would puts knows, say that? on And a it maybe that full kind the any there Great. tax of where there thing you increase own foreign-sourced less? I hypothetically, straight XXX income where corporate hypotheticals. one patients is effect that be Trying be on point know Or and you then expect a be or last about kind something the last we kind basis is ever to who facing today, of higher are talking have to rates but down is sit of way you're maybe let's on what your if

Dennis McGonigle

think I will us It elements of any Hypothetically, we in flat I rate any without hit the probably direct directly. pretty would to for prepare statutory other would have say adjustment. increase

Robert Lee

Thank Okay. taking hypothetically. for you my

Dennis McGonigle

Yes, recall from much pretty and well. as occurred, got cut when benefit the know I don't full we tax that if you

Robert Lee

Right.

Dennis McGonigle

most also companies' to liabilities. this deferred adjust as on sheet assets tax there's little have or well. balance Those thing And called

So these to that. have on for one-quarter watch it We and as something hypothetically, hypothetically. out as don't anomalies that you much have companies most get all probably we

Robert Lee

Hypothetically. Appreciate Thank you. it.

Operator

I you. queue have And at Thank in no questions further this time.

Dennis McGonigle

talk pass that, now With on right. I'll Steve All to about Private Banking Steve? it segment. the to

Steve Meyer

Dennis. everyone. Good Thanks, afternoon

our which quarter quarter comparison the $XXX.X third due X.X% losses XXXX, in primarily a from to XXXX, revenues client decrease asset management second implementation to primarily which activities. of revenues. were announced the In was up down For previously for onetime the quarter third due segment was XXXX, segment of for to million, for was tied revenues the revenues and X.X% quarter, third the the totaled which to

increase our primarily losses in For the the third was XXXX. quarter year-over-year was up management and mainly million in second of driven profit the was from previously Quarterly $X.X client about by of from our down of $X.X million for XXXX, segment a onetime decline driven revenues. This quarterly third quarter announced profit business. quarter asset by the decrease XXXX,

activity. to Turning sales

our our signed that signed to Bank agreement of selected management and of U.S. largest an as longest-running wealth to SEI technology wealth over nation model. agreement. the X $XX.X partners The Wealth advantage of small net which million business. and to a total one million bank to their to Bank a quarter. that SWP the million SWP another and in Wealth U.S. the Bank has the was between the their quarter, $XX revenue sales we events I'm of will we global other And solidified in to take $XXX,XXX with upgraded resulted gross one infrastructure investment due recurring in of of grow U.S. $XX.X in in was quarter, for services clients infrastructure the committed for this The business. technology difference closed and management recurring as U.S. XXXX recontracted the also $XX.X will of and and since million quarter For the Platform an to and the revenue, events SEI $XXX,XXX business, largest XX the a average long-term Bank our implementation will onetime and negative a segment. and on events Software set the Service years. utilizing the approximately in client our of this processing in solution future closed for term announce and signed management events quarter the primarily we gross been Bank power offset strategic pleased fifth down client negative Platform. recontracts net modernize join clients fuel adopt offset growth our net SWP and net In signed brought during total by contract in for events million initiatives deals a SEI to events. sales. their quarter X.X the a asset consume recurring July, recurring investment $X.X for This core for U.S.

platform. U.S. our we a Bank conversion. the XXXX this As remain large-scale expect multiphase In is multiyear TRUST implementation, will on interim, a

several implementation significant U.S. for event We activities reasons. have This Bank. for started is with us

our validates pandemic. to able finalizing approach SEI agenda the are our for core-to-core as offer during One it this only to we it back-office and First, modularize move strategy, and platform SWP faster

provides U.S. with to front-office opportunity the to capabilities Bank SWP us us and then Second, it additional expand allows U.S. our Bank. land to SWP

Platform. U.S. this And broad Third, Bank's a more SWP, further allow adoption continued validating global of us of in finally, SaaS SEI's this large-scale way. to will growth meaningful support Wealth is capabilities a the

new able Bank. enjoyed Trust many to growth in with of an during in Bank Premier our we from and family have the quarter, future thrilled a U.S. continue long-time long-term to to to as to Pacific see Premier our U.K. as the forward relationship. business in be process to expansion and Fusion/Schroders partnership Trust, – We a of we agreement SEI partners client division continue SEI, are platform we growth continue supporting look the industry well SWP and Also won the we XXXX signed welcoming expect milestones with and first We Pacific as this Premier expand a with to this them and a initiatives. to to and competitor a HSBC the Pacific perspective, From we continue migration half their implementation. progression migrate from competitive

on backlog, point is – update total an in revenue. new XX signed installed As but recurring million approximately backlog our million $XX.X not net our dollars

remote third the live converted & in Choate, Texas, In XXX% clients a SEI environment. TRUST activity. successfully Massachusetts; platform: Trust implementation to Houston Wealth Both two SWP clients Boston to the quarter on in Company were XXXX existing Legacy LLP in both and we clients. Hall brought Turning Stewart successfully

implementations these our times clients, these a live circumstances. these capability our conversions management From $XX.X is testament quarter to the business. implementation assets total any from While the second and a in environment the bodes bring The billion, quarter, during of the client disruptive milestones capabilities to standpoint, others and X% and operate on on our future. experiencing workforce teams and ability virtual budget. to SEI our well successfully unforeseen and increase and to met management ended are training and continue will continue a representing continued ensure ongoing XXXX. all have at to to we clients' clients Throughout to delays, remote time dates disruption for the teams This our avoid enhanced live implementation under under of in an period industry finalize asset success partner install our the clients

market was increase due Our AUM to appreciation.

cash was for Our the flow million. $XXX quarter third negative a XXXX

market Turning challenges Despite have continue occasion. has ongoing brought, the And ways as company workforce continues our pandemic clients by encouraged executed we making business that encouraged environment. opportunities continued the I'm to business rise platforms the am the to operate to engage sustainable strategy to and of and strong One activity as are our across growth. are SEI usual new execution and in extremely our and us. well the we to prospects. and seeing growth the we of investments by the the further we in I our front finding and business to drive

I'll culture our turn concludes are people, Our them. over and my may positioned and technology to well and feel you our for questions any due it have. prepared differentiators, remarks That I now

Operator

And the Oppenheimer. ahead. of Owen line Please Lau go [Operator with to we'll Instructions] go

Owen Lau

for you my again. thank taking questions, Yes,

balance from see beginning Sorry that next didn't margin sign revenue, of Should to Or overall, And will sustainable it's for here? from revenue? line say started a quarters? we as get one-time we what more over it too a How Thank to it expand the of Steve is that? I take the the margin was couple the the much you. early the one-time And it expansion amount. here. was

Steve Meyer

sale. that one-time, in the quarter million we Owen the closed $XX So one-time in was

kind digest of quarter say, would the I through still the this we're we've them of ad going As to this far year. the and as margin dealing announced nauseam rest client that with still losses and before we're

XXXX, number path. a this start of more calls. this have get to and sustainable My a to hope I've where our before in through backlog, way we sometime and margin mentioned we more on hoping get accelerating to meaningful a can I'm implement a point is as think I in that

Owen Lau

Steve. Thanks, it. Got

Steve Meyer

Sure.

Operator

Thank KBW. you. next Robert we go ahead. the Lee with line of And to go Please

Robert Lee

well? Great. I Thanks, Steve. hope you’re

Steve Meyer

Sure, you I’m. are hope too? I

Robert Lee

– good, incorporated thanks. pretty Is first win. SWP went is for a Well, I your sort bank back. that's neutral of should kind quickly the if for private really And I'm assuming maybe impacts a to my that how that guess of into we numbers impact I you net a – of through that question so could go how your about A lot numbers the get we the just I'm quarter. All of while? trying think kind is of just revenue revenue. sense think

Steve Meyer

Sure. Sure It's understand a lot of Rob. a moving here. I there's question great and parts

is say this. I'll what So

So for revenue even us. to an moves obviously love revenue remember, U.S. great book. SWP Bank existing announce SWP in any the And can't. when have past the time the entire process, a a to in obviously, to on new while it's as We is like we client I'd move event competitive

again reduced to to In only this back-office we One core the So, announce the to a we adding that did we up. obviously rate. case sell because And U.S. the processing SWP that at just because the SEI ability strategy, afforded Bank. core-to-core TRUST wasn't it stack full

from number. said to little the or the improve and But as have a U.S. down. was upsell it down net that land and of expand -- net we kind Bank TRUST TRUST ability from actually now I potentially negate So, and

really the between the know, well take that. three and bringing through our it's We're our net to talked any and four. and recontracts we next I sale and solidified and think So quarter, business, point that if as last clients; growing clients; there's will. you we think legs from The in that point I take at retaining the about a this take gross the our growing you that this ups segment down the growing you all business revenue and this. the of $XXX markets from existing and last significant little had four, and One, it solutions the reflects is close to clients net new I opportunities, and frankly, obviously our quarter, expanding net should look for Quite we doing we years. as million four quarter our this seven have think two, I importance existing that best the our should at on; three new from new that the going important to should forward. we reflects When

Robert Lee

the then remember can I correctly turning in like $XX And starting I of a several the us of you that? on? post mean it? years kind billion Then way million thinking quick XX-month That's how of $XX with right over if maybe next maybe -- next I terms half backlog, follow-up, the other the excuse just me about that year? maybe remind just first an of of guess kind to of period Great. half backlog the think you're of

Steve Meyer

Yes I so. think

obviously was was it next I think about going time If it numbers then after now I come -- XX at next months, almost we've XX, in on XX% I to to think last expect and XX months. I XX look that we the the up would still now. I'd months, think the rough the correct backlog that's new added that how of in added are to but some I we to to would some deals Obviously XX directionally that that. will of at add be that it. conversion the say about look But down

in after So And the I'd had around look months. out. that rest XX%, XX% say spread XX next if at I to roughly the

Robert Lee

Okay. Great. you, Thank Steve. it. Appreciate

Operator

Please to go Shutler go of ahead. with Next, the Chris line we'll William Blair.

Chris Shutler

afternoon. good Hi Steve,

Steve Meyer

Good you doing? afternoon, Chris. How are

Chris Shutler

you? How Good. are

Steve Meyer

Good.

Chris Shutler

Bank. U.S. on first So

like-for-like. net a that's sounds if recognizing -- like a its So down modest

in that you SWP to it ago trying is the If Wells in nice like-for-like technology certainly Fargo the I'm that was your it's step-up that and of five as when also, sense. isn't announced a reconcile better makes same pretty revenue. what Just had years has recurring but still than was U.S. in how Bank massively experience kind past that --

Steve Meyer

full Well SWP. stack Chris, they did the of not buy

not So, certainly bought they're while what step-up to they stack. what have, they full a is have getting the

the and had while going transformational again, a our talks extremely extremely full SEI it's strategy hard stack of change. because valuable back such sometimes is big the to we've powerful So and One some

case the this in So bought back kind installing. TRUST that's they to office what of literally core-to-core SWP and they're X,XXX

So, all office included are not this. unlike the value-add front Wells applications in

Chris Shutler

Okay. Got it.

Steve Meyer

step. the revenue are obviously in the grow SWP and and standing opportunity in time Banks this us U.S. to to Obviously this done large and getting quite this pandemic and giving the think partner. And is a long frame I a securing significant move

Chris Shutler

Yes.

us going help on a to jumping-off then, expenses should trajectory QX, think I but through in So, your the guess? Makes about we Okay. secondly QX just point just QX business And only not think how is forward? expenses, good sense. of maybe

Steve Meyer

Yes.

up. Dennis a over So bit. them were certainly, little expenses went

now If you were quarter-over-quarter a I $X little net over our look expenses think our up, million. at up

asset that million increase. $X it directly to tied of I'd of our Some was say management revenue

due about Dennis go the normal If up. was fees of to Half you midyear cycle. And of think corrections and it the trade underlying manager kind the our revenue was there, of to some remainder sub-adviser partly our tied had that it raise as expenses personnel processing mentioned. increases

And headcount some new to -- it to in. tied tied very some positively coming of new revenue

new on I and bringing of on top that got focused it accelerating down is think focused in year but this are into bringing people I've personnel the next very obviously, that's new see going business and of keeping and vein our some a So, I We've will technology of getting hopefully, job can line the where said some sustainable more great bottom-line. and flat provide to as manage grow going But this. it But we're an as before, and And revenue trajectory. you or forward uptick expenses. we're my a in. hopefully, we group managing profit to on of in our bring

Chris Shutler

the it. million? were flows the business, got management that did asset you And distribution Okay, negative lastly say Steve $XXX on

Steve Meyer

Cash year Yes. negative million for is the quarter. flow a -- for $XXX the

Chris Shutler

It of days? quarter you're me. quarters of to -- slightly quarter? in sign Is flattish in that feels these negative any a sort most there the For excuse turning like business this

Steve Meyer

our up cash lot for position we side the Yes, together on defensive of a side. see and who of asset to deciding pandemic can pretty cash conservative coming banks was you we're a really their We where see made really position environment. imagine and private I that think are taking view think what's in I put a to unrest And and two -- on. clients the election the management going with a happen think negative were I going more

bit the in. to little think lean more after a a election the a turn things other see the some more I of bit see -- corner you'd banks more little for feel So, going to fully to little comfortable to stabilization and we're the

Chris Shutler

lot. Okay. Thanks a

Steve Meyer

Sure.

Operator

Please ahead. over And next go you. Morgan Kenny with Thank line of the Stanley. to Ryan

Ryan Kenny

Hey good Steve, afternoon.

Steve Meyer

Good afternoon Welcome. Ryan.

Ryan Kenny

Thanks.

profitable platform talked for TRUST on and keep clients that it's you while. XXXX Just to have some the running platform, platform you've still wanting I and on that about know a

of at all? to the migrating appetite XXXX get a impacted we're SWP the pandemic Just in to And want TRUST where at sense to has in the transition. current from environment the economic

Steve Meyer

entertaining side. the some them think because right some our pandemic. on certainly now the moves any I'd -- aren't of people of put clients No, lower I

market. increasing can asset I well very it XXXX they said a on SWP use in always of still And I asset. a think platform will with capabilities one the I an the many that view engaged and we're happen as normal TRUST and powerful I course. with the get before I've competes growing and And think think that I a still in word it's is them it's

now So, even I to support to XXXX a opportunities going provides to continue that continue in the think ones TRUST we'll there's growing move I services on take and just asset. a think and size look SEI it. SWP don't the scheme us to maybe for the limited at to they're now. them with of of to components are left might to But more some it SWP, my look view and with continue clients at opportunities grand our to it. continue continue XXXX, right do TRUST mindset, the One tool. And going there's But provide it's is other of combined for powerful we're us the it platforms, we think of Because an the with of clients when SEI a and as that reasons We're invest business. the expand through side on right capabilities grow maybe the that trust for want to they assets One some mindset. Maybe fit of to our number relationship the I via wealth including other trust their be for, not management there's we

Ryan Kenny

you. Thank

Operator

next to go Piper Donat over of Chris Sandler. line And you. Thank Please with the ahead.

Chris Donat

are Steve, you Hey how doing?

Steve Meyer

Chris? you are how Hey,

Chris Donat

fine. to answer I to strategy. wouldn't you questions and but directly the expand My is Doing expect ask U.S. directly. land on Bank, about Wanted question

much landing sell in the but SEI on as One you with strategy doing So, of about U.S. core-to-core in-house now you against so Platform expanding you're that competition general SEI like competing just your Bank? banks are that's Bank, were Wealth what U.S. and thinking think you what's more the as to you if transaction with the in not were --

Steve Meyer

it to I runs to I in That's specifically technology office, anywhere the from is norm worse. to all what CRM I want way in you. to we're cases software very client. long-term, anywhere of thank don't any about kind one going But banks it's front portfolio the key plug-and-play, the situation answer speak seeing would homegrown say was the to cobbled the modeling together Well, the legacy But from technologies disparate But made situation. so it the to it's management gamut. across many solve

very gives way of a So, for have five them a it of of look of major expanded this stack think a to doing other kind I improved platform number I technology of to firms the part digest they're platform it really think powerful appetizing, anywhere a at start you benefit part is XX. then the when more which cadence to many is and and from pieces and ability these looking especially transition systems, in the of straight-through

better internal less a way internal their and of operations think systems. I more definitely So, replacing trajectory transforming risky it acceptable provides and a

Chris Donat

very it. Okay, Thanks got much.

Steve Meyer

Sure.

Operator

you. I time. questions further have queue at And in Thank this no

Steve Meyer

Great. With segment. questions, turn investment to other I'll no the manager

year-over-year XXXX client due increase new $XXX.X was or and the third million, net revenues third of client expansion. was XX.X% as quarter segment revenue $XX.X existing our quarter totaled to fundings primarily the in higher for compared of which for million, So the to revenue This XXXX.

for Our in higher was to and primarily compared profit or X.X% were expense quarterly quarter $X.X by an Higher a segment the in smaller by driven of $XX third as increase offset million XXXX. revenue, increase of investments. the year-over-year million profits personnel

And due than to Third-party million sales transaction. end quarter market providing This quarter investor in billion stand-alone platform as increase In we was significant SEI alternative our to fund new closed deal to deliver clients at new strong XXXX to business net third asset end of asset $XXX.X activity, turning following billion totaling new billion balances standard the $XX.X administrator. management, $XX.X demonstrates higher were robust highly selected reporting revenue solutions number onboarding, as third manager products. alternative to XXXX. to billion appreciation be $XX.X role quarter and clients front-office a sales highlights. in as XXXX, market in our of and these recurring the $XXX a second data comprehensive addition continue support well capability $X.X revenues. million was platform competitive the while had fundings to recurring include a balances This of with client a events unit, in to names, continue events market our the existing These new of we strategic provide to of as launch the re-contracts $XX.X approximately the of net billion. during of of at quarter of the our

to single-family Europe, clients. Trust family our in main of In be private and of Circle real our with first to equity our to strong in competitor, client the credit, sales by services with on Platform. we – clients summary, advisers In In track and our a new growing addition, fund new In with addition with office continue credit our our with across office unit, to with from our assets see existing demand market our segment In to platform. record continue convert turnkey the in platform. start-up and on expanding collective trust space. our a operational private cross-sales we continuing expertise in a selected also market steady and name also due drivers the we investment to we announce the private clients, we in addition momentum the unit are private Archway our momentum technology traditional selected our see the pleased were to to significant relationships the strong continue business a by were shop And base. estate real for ETF launches credit events leadership equity capitalizing manager

success. share we less of and Their persistence of year workforce have being has by real nothing immensely the are fair our it noticed had challenges, face and continued key know, these proud been our all and and appreciated resilience remarkable As I than our am this the of in is who to its challenges clients.

feel over we significant investing XXXX, as As the questions and has front-end now you platform, any my in stretch executing continue may have. of platform, I'll opportunities the That on which growth well it prepared us. remarks, our turn enter for we concludes we growth on will overall as final our for including opportunity

Operator

Ryan Thank first with you. Morgan Stanley. ahead. the of go Kenny go we'll And line Please Instructions] [Operator

Ryan Kenny

question a on Just the fee rate.

so I at then coming revenues roll fee So, managers' in is at quarter. if should the because and it a check to bit rate the I like of want look looks onboarding your average management came is it just rate appreciation this that Or investment over pricing forward? under fee assets pressure? administration and the end asset Thanks. down

Steve Meyer

Yeah.

events think that our it tiers lot might And I reaching the funded new latter. events those of et of or be with this at looking you and breakpoints even is clients. if Many lower clients of a it's of quarter higher think existing more of tiers the new cetera. their

products less function in a as, quarter some more came the as type would clients. tied to more I'd and the solutions for primary as say, and that it's the some of fee and business assets of volume increases. more So our a we say, of I tied to platform look from of that other well is for But they're

Ryan Kenny

Thanks. helpful. That's

Steve Meyer

Sure.

Operator

Robert next And ahead. of line go with Please the Lee you. over to KBW. Thank

Robert Lee

again, Hi, Steve.

first probably question. can predict my You

Steve Meyer

Backlog.

Robert Lee

Yeah.

Steve Meyer

at you the million it It's ask for the me $XX.X out, leave quarter. can end it. I so of

Robert Lee

maybe but of kind recontracting are around similar to some expecting the of recontracting, in or I you us of color on kind terms And of additional saw revenue maybe level, – give just trying or Great. some million. kind of that guess, are what you kind get adding I'm – it's around services? this Can color quarter last at $X the Thanks. some you

Steve Meyer

Yeah.

a is little Rob, every – every different. client So,

at lean and good we're depending and had a recontract – dropped. to for have and continuation But expansion expansion other year we this expansion mostly of them the same the and services uptick, business. future recontracting we clients some look have And clients certainly, to on a in fee Some the those think, of quarter, segment, a an of and assets and in maybe and and as partner, years for them help because potentially level their have saw the just rough we'll some I sell case of services.

Operator

go we Owen the to Oppenheimer. Lau Next line with of

Robert Lee

it. Thank was you. That Great.

Steve Meyer

Sure.

Operator

you. Thank

the of with line Next Please Owen we go to Lau Oppenheimer. go ahead.

Owen Lau

question. Steve quick modeling just a

was line incremental this For investigation the expense million Thank to uptick compliance? there in onetime expenses stay you Or expense item, you. because expense personnel the any $X mentioned? related consulting of would there of

Steve Meyer

that salary the hiring in this is which through, say would to think half this in people personnel. and midyear promotion again uptick say our combination routine really I'd a I we go as of a new I for And segment, And new tied people well as -- Yeah. business, sign. was great the was new -- corner

some around professional this of situations earlier and a other was as mentioned and and up there investments to Our little costs that consulting due about services others -- was probably XX%. Dennis we the closer due had fees were And some to the and bit year. professional to at

pace. manage the new keep modest to part, we're and uptick most expenses. business that a due in new the hoping some personnel and We for to but bring think at could we're revenue see I continue looking to to

Owen Lau

Thank Steve. it. Got you,

Steve Meyer

Sure.

Operator

questions time. queue at Thank further this have no in I you.

Steve Meyer

If I to to over go segment. turn you. Withrow it Wayne Thank there's questions Okay. over other will Wayne? the no adviser

Wayne Withrow

Steve. Thanks

third execution in our the XXXX, continued virtual strategy environment. we quarter of of During business a

to we While feel we evolve take virtual this model our positioned to and new reality. progress, making continue are of uniquely advantage

compared third quarter Third $XXX totaled to million. flat quarter last of year. the were These revenues revenues

and in and quarter to platform this increases fixed expenses corporate flat they fees growth. travel SMA asset areas increased resulted and in on assets wide good savings revenue growth move revenues our asset in is of being reflected expenses the discussed were compared balances increased as equity of sub-advisory to and The while year. receive last into these flat Like third are -- year-over-year Now news not but compensation. our an mostly our mix our driven we in Dennis by hope products. program including revenues, and were by were sales offset other mostly assortment The income increases

Our flat third last profits quarter. year's remained from

was XX, the $XX.X XXXX. roughly third quarter at This the from is management under billion. September X.X% Assets end up of

million Positive up under asset repositioning percentage similar contributed activity cash sales revenue but into our growth flow quarter million. for fees assets money markets taken were was to from a in market Our cash the average growth. growth, quarter overall $XXX positive yielding this is Net by year's products the prevented quarter. $XXX advisory portfolio from This flow total management net of and advisers. last during from

of sales Going quarter $XXX advisory gross the since fees, these forward, they of I flow for these intend to Exclusive report cash flow was result fees the are cash not million. of activity.

the advisers to our assets we into on assets non-managed flow management, under million cash had cash In XX during We flow our new this quarter. platform. addition recruited $XXX into in

by SEI's asset call, third-party managers. products As now during managed I some unit our investment curating second is quarter management discussed

this new focused growth are by in We are these curated driving environment. on products. of seeing summary, driven we the are growth COVID-XX In normal settling into and operating new

this driven culture allow technology business on position questions and I welcome capitalize scale, you will may environment. financial to Our have. any now strong new us

Operator

to first Kenny of ahead. we'll Please line go go And Instructions] Ryan Stanley. Morgan the with [Operator

Ryan Kenny

me? Can hear you

Wayne Withrow

can Hi. I Ryan.

Ryan Kenny

Hi.

update competitive Just management any the pricing you an Thanks. should give see what forward? there program you're the on pressure in going if could environment, we about to turnkey and asset how think us want specifically seeing

Wayne Withrow

think from fierce pricing and see in those broker-dealer continue it's Yes. internally-managed competition the I will space mean, it's the And I in and turnkey markets. other I is to providers the you platforms. turnkey pressure competition also think

inherent a look I mean, leverage say we now. compression at I think fee that the right in would I really However, our positioned world model, if you well business are in

Ryan Kenny

platforms remote environment your the has for impacted all? demand And at Thanks. working

Wayne Withrow

our platform. for demand the increased it's if know don't I

remote perhaps -- I to than quite the a it's past. virtual the platform I platform us operates the And an remote processing environment allowed -- world. is frankly as the it inclined and it more in environment, But it has ease a functionality does I of outsource they in enabler. the as remote and people think to in the thrive just think in think the were are well a live real -- in in world really

Ryan Kenny

Thanks.

Operator

you. Thank

of KBW. go to with Please Robert Lee line go the we Next ahead.

Robert Lee

Thank you. are Hi, Wayne. you? How

Wayne Withrow

I'm talk great, backlog Rob you and I don't have a to to about.

Robert Lee

the Okay. net cash if and I the change you understand starting I quarter. -- apologize, kind just to the I day. your this late around make flows want Can of and it's in comments sure

walk So why and can just again maybe that changing? it's you through

Wayne Withrow

included activity to the a we've as I flow the their significant our if become at And of And advisory always collect in every bigger activity. measure cash we flow bigger and fees more out it's flow negative Yes. have mean, fees accounts. sales do as of really, quarter, numbers. nothing will But cash has you sales our it's really if advisers which that investment to traditionally, advisory that as pay gotten you cash with redemptions -- look go a number.

to it quarter, last the was during fees out for said I million $XXX advisers. the went for just As that pay advisory

depreciation, an of longer even indirect if include we're -- more akin it's not or something no and is a activity. really which that appreciation result will -- result direct market much that. to It's going sales to we'll in So you that's

Robert Lee

see. I Okay.

net of opposed of kind up So dollars... but gross, AUM it's grossed kind like so same to you'll as report gross be to

Wayne Withrow

to just include We report AUM in I'm that to not going net fees and we're saying the AUA paid the net. calculation, advisers.

Robert Lee

Great. Okay.

assets. then it. of the million $XXX -- flows you think to and cash think I you I I touched on non-managed get also And

So maybe was kind total you can you and those I to about -- not think start and AUA talking if will. going quarter those you're more last of

can maybe that kind update us you on of is where So just today?

Wayne Withrow

the you didn't Rob? of again, part question that I'm last I get it. repeat sorry. Could

Robert Lee

to had you right? cash million I increasingly The that's flows becoming mean assets $XXX important. I mean, under of non-managed administration, think assets So I

So on non-managed I AUA handle the your just was to assets today? what a I of kind is or get mean, your platform trying on

Wayne Withrow

it discussed. look the driver Yes. I it's -- AUA custody, not to of differing land you platform. we and And -- expand forward the a strategy as the better say is have as north us it's But or needs primarily can meet we're at which AUA they pure when to a which other existing clients gather so increasing under much revenue $XX us it's would as the assets it's needs with going variation able enables products. billion. of Steve This a gives address that

Robert Lee

Thanks, Wayne.

Operator

Thank you. no questions this have further And in time. I queue at

Wayne Withrow

Okay. to Institutional over turn Paul, I With it will who our that will discuss segment.

Paul Klauder

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

quarter Third quarter third the of million XXXX. revenues compared to decreased $XX.X X% of

$XX.X higher impacted negative Operating were decreases positively capital Revenue sales compared the increase quarter negatively quarter, profits to of and a increase impacted decreased This and margin by the billion million. profits for $X.XX offset $X.XX positive losses by travel positive operating the end of costs. of XXXX. $XX.X slight client expenses balances by Quarter reflect onetime asset of by fundings. a quarter by severance Third of by XXXX. comprised were Operating quarter onetime offset to were and client the million was were $XXX a was negative markets compared of for trading lower client third capital billion quarter gross $XXX X% sales which XX.X%. error, of impacted Net million driven but billion markets. third is fundings

our a quarter. in not-for-profit, while client continue unfunded were RFPs momentum stage new return strong in virtual to Sales at was accounts, included quarter million. with governmental interactions select positive a inquiries healthcare, enhancing early U.S. saw with OCIO and management backlog inbound U.S. OCIO increased strong in the and to execution the be New end quarter the The of $XXX and also prospects. fourth benefit. activity and in-person fiduciary turn and defined signings

to clients on very go focused current are process a anniversary are apt to through clients as We our time SEI. existing due rebid also formal a with

enhanced of strategic new CIO/ECIO the in to side, institutional formally marketplace quarter. solution large initiative the third the end On our launched the we

solution marketing is add this consistent more are and We This and to solution mindset. One SEI the a building actively resources. looking with sales pipeline

very strategic new We continue any to and markets globally. to that I'm have. other happy research much answer you questions Thank initiatives and you evaluate may

Operator

of Instructions] go Thank you. Kenny Stanley. the to go Morgan Ryan [Operator ahead. with Please And we'll line

Ryan Kenny

you? are How Paul. Hi,

Paul Klauder

Ryan. Good,

Yourself?

Ryan Kenny

Good.

for material how driver this a at to just the revenues want On understand of point? that ECIO, is

Paul Klauder

Well, ECIO. group driver our it's a no at not There's all. in revenue for

and X,XXX more So qualitative to effective. we're think into in-source of efficient launching to institutional those and definition We want is just this the about have and make team the there's solution the team the a large that suspects fit more globally marketplace. that and quantitative

be with incremental to have we to not the revenue had So of do the anything we profits a yet, and ECIO, incremental respect to unit. that transaction would the

Ryan Kenny

the from then impact, status. the rise How it. funding revenue businesses long-end we were about in one Got rates some Thanks. if And think benefit the from delays more from question. quantifying understand lower I to DB should that there's here? on rates

Paul Klauder

might type annuitize to perspective. things give is were hard funded from or points may would quantification a it a status and to give defined do are in them that that to have of position or or a portfolio, rates point corporate-defined presently be our about of the for certain basis. XXX assets. benefit inflection immunize a $XX the book long-end better clients on a $XX billion would be being Certainly, is But them basis curtailment. If it'd me XX% status clients The revenue just for a quick X%, average those equal rise, that billion more X% about certainly assets. you of move benefit funded PBO with opportunity on cash the more funded probably to an move but or certain all give not plans

may it our action. it's business plans time, tailwind benefit long for legacy-defined and decide to because a headwind over be certainly, as when So, low raise long are would take a rates rates

Ryan Kenny

Got it. Thanks.

Paul Klauder

you. Thank

Operator

Thank you.

the ahead. KBW. of line with Robert we’ll go go Next to Please Lee

Robert Lee

are How you? Paul. Hi,

Paul Klauder

talk Good you. Robert. to to Good,

Robert Lee

heard I net reconcile guess, if defunding. bit wanted AUM guess, about comments driven unusual. -- increase by which to a flows not too. just was I was correctly, guess, some, I offset to just clarify the I and markets, was really maybe your trying I Me you funding. you I I is in I guess, confused, quarter, But, or by the outflows

I like had have net inflows. just make heard to it You right sure maybe correct. Want it. -- I want about I misunderstanding or just $X.X billion something must I'm wrong of have

Paul Klauder

year. quarter against I'm comparing -- so end asset comparing just I'm balance, Robert, the the it previous

quarter for collectively We have and of quarters, backlog had itself. So in $XXX had $XXX the lost outflows a inflows billion. and million. to $X.XX third four million we sold respect than the more with we've of we've We

the third So funded third not that quarter the in everything we in quarter. sold

we some usually -- year-over-year, comments of negative fundings not -- the portfolio. when a therefore, sales versus XX about my a we that the But it to so accruing quarter. XX-day lag start are revenue. more event, in or usually client we have quarter And have we before So comes actually

Robert Lee

at rate. guess, I'm pretty curious. Got Great. been That's your pretty healthy a I in I is running then, And business. of kind It's this helpful. margin just high it. mean,

look XX of SEI initiative and understanding but reason different maybe some margin segment, So, the or and margin a kind launched trying that you as we makes sense? any to typically back One I of going I'm there in just should settling is more get how towards -- the about be as that. peak ECIO costs you mean, ahead are thinking development a forward on down handle

Paul Klauder

lose comes OCIO probably we're what say if in and we're move Yes. versus that our probably I dollar impact are profitability. We the in. losing than they lose biggest Robert to clearly to respect going we is would out a what client a on platform -- of bringing making with similar more we're

So we have that reality.

same are to out at have retain rebid we rate reality a go not We when the the gaining probably going we and that be them just client. had. We

of more that are about management all the that It's stack infrastructure investments. the McCabe clients built. by technology and sell offset is similar the much the unit. Steve more ECIO, Phil is and to said, that investment technology the Now very thing consume is ECIO great technology that diversified alternative to not might services

So it's some out And leverage there. reporting But those service things of lot model. a again that's -- an adjacent a of not that. point There's in it's a capital. real investment of we some great There's think salespeople. huge to capabilities SEI a don't there's There's not market. unleashing like build and

Robert Lee

Appreciate Great. the Thank color. you.

Paul Klauder

you. Thank

Operator

William to go line the we'll Shutler Next Blair. Chris with of

Chris Shutler

Paul, Hey good afternoon.

So assets appreciation? net first versus new the could the the market break you in out quarter

Paul Klauder

quarter Are saying There's market the that again no second net new are sales. third sales. in just sales the the the appreciation assets versus quarter? So the meaning you

Chris Shutler

the quarter much of the ending won? to from versus second net new how get assets ending it business new much To quarter how Correct. it assets was was third or markets of

Paul Klauder

Yes. It about $X.X would looks market $X.X billion roughly is it's like about be roughly probably new on billion based events.

Chris Shutler

space about year X talking Okay. thinking on maybe acquisitions think two foundation were or doing be And would strategic still higher maybe a that address or least Or about an great. going area. then the update I Is that endowment mainly back at or to your select tuck-in a in you that's just priority? ago, making something

Paul Klauder

year us quarter. something is have present we an It Sure, did fourth outside We opportunities. formally or at sure. looked some firm last

decided on bring We not to we did anything have we to properties they us to pause differential saw. that the us. incremental or think would So

kind that So actually looking markets enhanced solution. of to really to market our of don't of part go and fronts want SEI we when in-source an the want we're have capability that than this properties with delivered that confirmed E&F unleashed capabilities there's with set outsource. One we larger many to and Rather to are endowment at process the already enhance billion also They the CIO specifically really $X should to of larger our deploy more of that standpoint. can sell that a belief we the of of fight going and were trying looking strategy the make a efficient end you you capabilities to select the at. But more saying technological market end of flight from we outsource another one and personnel on a that which our sights individuals the solution we've two on for

do that that I series internally breakthrough work we externally. both was So were able think to a and of

Chris Shutler

it. Got

Okay. update. the Thanks for

Paul Klauder

Thanks.

Operator

queue no questions at have in further I this time.

Paul Klauder

turn will I now Heilig, Great. Kathy the call SEI's over to Controller.

Kathy Heilig

some and good afternoon this information quarter. corporate about everyone. Thanks have additional Paul I

quarter from share. or cash was per flow bringing $XXX.X $XXX.X $X.XX million per third cash $X.XX or The share operations from to year-to-date operations flow million

million Third our software third expenditures quarter number year-to-date $XXX.X the This of million. cash the was quarter flow excluding free capital bringing million. cash includes were to capitalized free facility. our flow $XXX.X In $X.X expansion

$XX.X are the will million. project expenditures be capitalized the year-to-date expenditures million. fourth We capital $XX quarter excluding for capital Our approximately software

like forward-looking expect, that also identify statements cases that you are and appear. release We remind are in or In may, is that our as call some that un-audited. should, to information would of can the will, by based and forward-looking upon on many continue risks assumptions you such involve comments presented believe, our terminology financial this statements

unforeseen revenue and drive as our of advantage the expectations include degree generated for our believe time fund; that and to unfunded allocations scale, resource will infrastructure; of live when we to expand existing by with invest we and we the to that may our growth; Our platforms our components our forward-looking products which and technology sales during and statements the occurred clients; and One and backlog to technology the execute in our investments which on that or the ability resources, initiative; bring the to the of in and be pipeline quarter events strategic our circumstances; growth the and of our relationships including to ability our our services objectives. success our business we opportunities SEI pursue, take the revenue benefit our strength from clients of segments ability initiatives will and our horizons strategic business demand our ability that and opportunities to opportunities; will choose

of undue place statements which subject beliefs change. as significant subject not forward-looking they of control expectations should management our or current on and reliance and uncertainties, risks many beyond to You based on are are and the to

assumptions we base the Although reasonable, upon forward-looking our be inaccurate. could they which believe we statements are

Factors in the in which feel annual immaterial, website. XX to our or forward-looking of ask differ Some believe report that impact actual forward-looking other on our reflect the we currently not described the we forward-looking risks that December presently free that after do contained arise to the from are differ is from those of may be forward-looking There have. section may cause That cause our results statements could or additional results report important Form statements. risks can XXXX. may for now, events circumstances the do could those to date We in And and Risk of to statements the factors you please that actual our XX-K of also found not know any be questions statement. update available that

Operator

Please Shutler Instructions] [Operator Chris to with line go ahead. And the we'll of go William Blair.

Chris Shutler

Thanks.

one of buy Steve. there figure to risk other go wouldn't they Bank platform the bank last trying is more office the use what not discussion back-end compelling implementation out the one for as to Just kind help -- just to a back and I through for want bank would Steve, they like, the SEI use for a be and U.S. tools? et come would everything solutions? that I custody But of to reason integrated lot experience think process the end the front cetera. only is the using a through for for think thought SEI us better that just SEI a kind that the of and back

Steve Meyer

Yes, understand, a but overthinking it I Chris, I little. think you're

So look this it way. at

very think whole it's the platform. use compelling I to

of when our times a a the However, to adopting lot our plan part mindset whole quite to surgery. It's adopt platforms numerous of transformation. pieces platform. of increase ability to as large open times heart give to discussed we SEI and growth be the the adopt would was like One And platform modularize the

a in of which adopting it. obviously this office, core-to-core back large case, the part Now is they're

and packaged and ability SEI and lean are in services to technology then hurdles gives I the is go. impactful great as adopt front-end more not key move platform. lot real for And way However, there's a here the institution that of components add and less a it with any other think many certainly as the they in and

with positive. day needed financial more think especially and I and age and large I which in quite is So optionality, much think this gives it frankly, dealing institutions

and So great at with outcome positive frankly a huge as a move the this opportunity positive I quite for look future.

Chris Shutler

for Appreciate clarification. the that. Thanks Okay.

Steve Meyer

Sure.

Operator

further you. have I And Thank questions at no time. this in queue

Al West

the this fighting during times. gentlemen, first, we on disruption; and growing profits COVID-XX and ladies So second, fronts: and revenues two difficult are

to able On healthy fortunate the have front, and been planned first we well and keep to workforce very our were productive.

motivated our we future. prevail, face thanks Thank we day. investments great but we On a healthy. our the Have will are be second believe and short-term workforce front, headwinds, safe and making for that strategic innovative to in you the we and attending. remain Please

Operator

and gentlemen, Thank you. that your you Teleconference conclude conference Ladies and Thank does for Executive your AT&T for today. service. for participation using

disconnect. may You now

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