SEI Investments (SEIC) 27 Jan 222021 Q4 Earnings call transcript

Company Profile

Participants

Alfred West	Chairman and CEO
Al Chiaradonna	SVP, SEI Wealth Platform
Phil McCabe	Head of Investment Manager Services
Dennis McGonigle	CFO
Kathy Heilig	Controller
Wayne Withrow	EVP, Independent Advisor Solutions
Paul Klauder	EVP, Head of the Institutional Group
Owen Lau	Oppenheimer
Michael Young	Truist Securities
Robert Lee	KBW
Chris Donat	Piper Sandler
Ryan Kenny	Morgan Stanley
Ryan Bailey	Goldman Sachs

Call transcript

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen thank you for standing by and welcome to the SEI Fourth Quarter 2021 Earnings Call. At this time, all participants are in a listen-only mode. Later, we will have a question-and-answer session, instructions for queuing up will be provided for you at that time. [Operator Instructions] And as a reminder, this conference call is being recorded. I would now like to turn the call over to our host Chairman and CEO, Mr. West. Al ahead. go Please

Alfred West

Private our a we our change segments. speak Investment On participants Management Banking and Phil be They Controller. Kathy some on due call Manager for will Heilig, Chiaradonna joined to in the Al and call Dennis everyone. have as leaders will as segment today, SEI's new segment. and Banking Welcome, leadership well McCabe the McGonigle, for will the speak Investment by SEI's CFO in

to attention XXXX. plus our same fourth the turn in financial during results quarter $X.XX of let's XXXX. First, increased of fourth the quarter the quarter fourth the EPS reported of north year. grew Revenues the - XX% of quarter time earnings At XX% XX% in grew fourth X.XX quarter from compared to last the

asset asset LSV's During increased the balances billion. quarter, $X.X grew SEI's billion by $X.X while balances by

shares of into stock of During X.X SEI at the translates that of share price million a $XX.X repurchases. per repurchased we stock quarter million $XX.XX

Next, fourth in quarter. of to let's recurring. $XX.X managers investment million Net during $XX.X which were be the production banks and events are private sales expected to revenue turn million

their sales units. sales of In opportunities. incurred - $X.X were the asset specific results minutes unit asset business in few a and new more management-related net billion on advisors provide addition, These In detail positive events reflect institutions. their events million flows and will heads

results build in these and to work on will We XXXX beyond.

like of situation I'd our today. Now provide you to outline an

This collectively Brett expertise, they Phil four Al years our deep earlier, example They gained Together experienced Manager Private talented are for we SEI. and leadership XX involves have an changes have of collective I individuals segments. the As Bank Ewing, McCabe. as - working Williams, I and strong in Investment over leadership. Chiaradonna, Sandy and mentioned remember, leadership

revenues steadily One grows of IMS. its and that's businesses profits, our

strategy. recently Another executing the has business, the been technology-driven Advisor segment

pre-eminence. returning that business indicators We have the is to strong

about that. excited very are We

Another backlog, working pipeline on a diligently implementation client business, satisfaction. Private large sales strong enhanced a Banking is and

business Investors large the last Institutional segment. is Our

legacy-defined their client base, While faces is headwinds aggressively in the fast-growing it to benefit markets. address OCIO strategy

focused also four our beyond are on growth traditional We building engines businesses.

finding we couple and main services businesses. these the innovative past, four shared In engines. to in have adjacent our are we Here of markets opportunity a young

SEI's example, is business data For management the of traction is wealth platform completed service year positive of providing to just enterprise an leading-edge net networks high security and growth. private alter families gaining and a worth and

will both toward Melbourne Finally, we three our that additional capabilities of Atlas, Investor lines. Finomial, year business made have IMS for sorry. - acquisitions Novus, and the add are Novus Institutional and the end They

on SEI the our with integrating and expanded these already in us. are way We capabilities are market companies give they well into

built have during positive XXXX. We momentum

prospects and and backlog cycle. in have of the strong implementations sales We number a sales late of key a

investments In an asset over And business and segments. business LSV with addition, the that, of you successful give update new it been we have turn Dennis management-related to in to in Dennis? repositioning segment. I'll our our

Dennis McGonigle

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

SEI modularization to quarter deliver our integration investments. During of group, our private business strategy operation wealth fourth of consisted data other the the Sphere, SEI XXXX, different platforms in segment of and the investments activities of the management assets new on of One and

SEI approximately of effort. business million, tied expense the loss to in a investments the fourth to during of the $X.X $XX.X quarter which new our quarter loss incurred XXXX, of quarter segment fourth of million million during compares XXXXis the a During $X.X One

for fourth SEI to a income million of the This contributed ownership contribution $XX.X compares $XX.X quarter in XXXX. LSV the to income of of Regarding million XX.X% our fourth in approximate quarter for XXXX.

approximately approximately by experienced with million $X.X flow grew net Revenue market quarter of the for of negative was billion of $X.X approximately the during billion. approximately $XXX.X appreciation $X.X during cash billion. fees. $X.X the quarter LSV Assets with performance million quarter

to the provide the Atlas, we portfolio in two company third acquisitions addition is As additional Finomial Al a Novus. Novus. will of markets. and Al SEI's and on call on discussed investor for investment additional we expand capabilities quarter an acquisition designed company management called Novus the closed mentioned platform intelligence a global commentary on both to institutional

revenue assimilation expense acquisition. the of well operational as Our the of their fourth quarter cost as and results reflect respective

rate Our for was effective tax quarter the XX.X%.

soon for We financial any our information. refer information. have XX-K to our questions. will Please to included I filed take release, more additional also be earnings in now

Operator

Instructions] ahead. our go with Lau we've Please to question go first Owen Oppenheimer. And [Operator from

Owen Lau

thank and afternoon question, my you Dennis. for Good taking

and costs that and - topic people attention many to. labor pay labor is So, salary a

million cost increase. I XX% just think stock-based compared but the please during talk million represents which SEI expects be across labor about and manages this comp XX.X different saw it's that and the XX.X year? comp Thank Could not you. tackle how this year SEI a specific XXXX, industries I approximately rising SEI you to to expense

Dennis McGonigle

for in stage great not is adjustment the the but XXXX to need expense fourth compensation own significant issued compensation on into calculation. talent third that success addressed a option This terms we particularly that not you employees its to in bit call competitive only about talked on and additional to half most front made of that future the cost had we generally compensation it's at if for - Sure. we conditions, our SEI. in different remember then and a that feels are made summer do the only contributors quarter if Stock second of employees had. come reward we an and Option to and we Board of early stock the for options with going all they how remain expense, and market certainly our to unique mid-level is quarter. our professionals third kind will, topic little the of particularly adjustments are the the On feel did cash for work of quarter of We of competition conversation baked reflective results. the story, professionals us you also between to end of we our be carries

expenses So each attributed are factors that how option issued that much to into calculation. has go multiple that

of If to a XXXX, back look you we grant fairly significant had in XXXX. options

shortened December each and say, XXXX We vesting that we additional in - in granted have so options for for we the let's say, saw generally an grant issue were a, had the had that with that will some we be in additional in previously. was estimated reflective in of is options the that XXXX of made play you we XXXX our to options coupled timeframe expense year, granted

So expensing it bit from XXXX. pulled into little some you XXXX we if will from forward a accelerated maybe really and and XXXX

in vesting a increased option expense process. have that eventually, given bit little pulled you would So of incurred had just XXXX we forward we our it

quarter, that of other you'll did in is McCabe's the commentary Phil fourth in in fourth did The hear and thing quarter. the retirement unvested occur we options a

against quarter. get - bit if got a benefit expense an do little expense the option So of in you we

offset that some that of of that some So increase. -

Owen Lau

the us you remotely think year in latter versus how XXXX. this of on then people an And back partly SG&A do status about side, to compared the you. latest your XXXX speaking, please - working SG&A about update helpful. going That's it. could expense Got to you give office Thank

Dennis McGonigle

Sure, thanks.

the Now people or our to around with campuses are where we bringing back offices globe.

probably in attributes back In own going has basis. is a particularly. up of terms on In appreciate unique as all you other than our its city, to come New volunteer on the for New can U.S. how October, given city what's York, opened of to of employee offices, we the York kind it offices any and

So certain if back not want anybody don't still - certainly we were there quite force comfortable. to

our functioning as are firm in a environment. well work We current very

the force So a days days to our to we didn't open to two come it's who did week, whether up we anybody week, one offices want day issue, week. a back but five to come wanted back really

the XXX the every were being time had week. office said that during XXX, day that Now probably that coming at people in we

So team-oriented work offices in pickup company. the to it people see. returning real project-oriented We good different see of across started around across different players, we our and benefits to being people groups see particularly activities, some was of

that So didn't alphabet the we linings to then the foster the with been Greek familiar has of got too continue year covid. history guess this has all for the we're silver we who of alphabet Greek so to learning as - pronounce, the but been, of mid-December Omnicron, into want study ancient us of one we December letter I particularly that those

want numbers embraced would that. really we have January more are long-term as benefits They're together, the we've know work the that about little on and we real So relative we bit flexibility as being of plans environment, people almost a a in back, that together, office, We and our up. working certainly say coming spontaneity in are company proceed if - comes the with are also gone got COVID I environment we the do folks currently to setback, both we've long-term with that, how an strategically outside will. We're you how work a actually neutral that seen into working so ticking the but actually, saw to to office. work comes but an there cross-pollination people

at course we those the will continue and expect, shut the the certainly on the again back U.K., half sustain and was of people from a bit Outside year good that level little support environment. then see having to government prior and of and to So U.K. Omnicron environment. the first U.S., office we'll us because really coming back but it's pushed we're holidays down of a additional the working I success plans - people work of different, the this over work with flexible home this now into certain to really back bringing folks In I we things a expect and

that offices. As and XXX-degree know reversed shift recently done to have back people we a getting they now gone, to just just

Similarly, government Again I regular they element also is office much, this baked of they weekend more in. our people of remote, a say. to the I back office, announced U.K. were to to a just back Ireland past similar Irish the of bringing flexibility will certainly the reversal get consistently So another would were the the U.K. presence of larger our most more think office. workforce. with

the how we can maybe see we'll guess, let's comment turn responds one. to back people office that will I our on So get but work that, to here. and mic Phil Dublin

going So in I the it's all, all to year. this first believe half of out play

kind environment. work we alphabet world next and the can letter kind of the back to we don't of know hope the get new Let's together of but in Greek flexible,

Operator

comes question Truist next Michael with from Our Young ahead. go Please Securities.

Michael Young

the appreciate I of seen taking question. outperformance of for that kind just significant trends update you of quarter, of sort by Dennis, maybe the first then update business. any things value we've the year, just to month the stand for in ask LSV. In wanted and since could now value of kind where thanks obviously if the I versus curious fourth on about but versus vis-a-vis provide kind outperformance secular growth of this

Dennis McGonigle

still the mean LSV They this searches struggle XXXX, particularly continued on of year, with as I yet. really value them don't but a continue I - firms performance the XXXX. towards would relative It little be into has of in I and market Sure, help they the suspect extent bit the weigh for number did more for five-year that numbers lot certainly good to as will will to LSV a and that for and that occurs will was shortlist firm year a assets. performance three-year in start have

their beneficial. the performance So having a strong as more should much not so help that number as, and also be longer-term numbers, if XXXX will one-year

they is seems are to or that occurring tried I to in direction. like our are moves calls the, performance good last the and value. is them They capture market the really well and they I that their they to environment assets the years are what prior over we about in about get at, if they knitting to despite stands So, value certainly shift emphasize know for they the optimistic thing kind shift. brand good their what they to have they feel the feel they have return to what know serve really, of their if brand and they five-plus stuck that will one to given a on good year, certainly value this past again LSV be know stuck are, know tough value position

Michael Young

in Okay, market have great. my but M&A little allocation is the a as X%, X%, bit you more fourth X% up just quarter, of the of kind guys down generally, a been And little with also just the follow year. stock active more a the arena capital kind on in

should seeing M&A, allocation how capital pipeline? what versus we of, of in buyback sort So kind that vis-a-vis think priorities about share are you

Dennis McGonigle

point Yes, trade make definitely we se. We per don't to well, first, two not. other the one the or after

very bit that strategically good geographies entry interested and in streams have and that that much us market existing we an but multiple are other give us in opportunity, are opportunities could our revenue the capabilities certainly of done and SEI the can potentially We further us relative we've that might acquisition help of a diversify of good opportunity. fits SEI, business little new our to our in think new lines on one the give adding quicker landscape kind enhancing M&A profit new we company recent like some market to parts of for transactions businesses

something paying future. to capital, of attractive higher So press come but this dividend declare I on the companies, in process. predict to won't of It's continue this into we'll it for along, don't year which did that continues you consistent and know of lack buyback late know saw December us will is progression in see year-over-year dividend list business, Board we either. the whether and dividend the which don't also Board's I entertaining includes hard to was and that's gold the anything be predominant in to use priorities ideas. Stock stock of - looking as that the return really another than our just and the dividend changing in so if repurchase, growth capital changed, year's but last shareholders. on haven't reinvest M&A we're I - just that our but we're Relative

Operator

with Lee question Our go Robert ahead. comes from Please next KBW.

Robert Lee

morning. everyone's Great, morning. Completely Good well. Good here. doing Hope everyone. thanks, good afternoon, confused

anyway. So

Dennis McGonigle

Good evening, good evening, Rob.

Robert Lee

evening. It's long been Good a week already.

guess and probably but minds. question, I ask, So really a uncomfortable level, a I much is think higher to I investors' something guess my little frankly, I'm it's on

or as company. the rightly rightly potential him think of investors leaving think viewed or were I I there as a Steve wrongly So, future again do with leader the firm, who wrongly

for think investors, I some So sudden departure his I've jarring least was at with. conversations somewhat had that

I transparent time maybe So leadership, the going the I is potential outside those start could update any to us what or there along leadership something to make plan more forward of or guess how lines, kind over think because to of investors some value. evolve succession it's would really

you. thank So,

Dennis McGonigle

So creating environment yes, with a - we're back looking and think as we're as that track CEO I we that through an - share will creating we where the go it. we - for on strong

Robert Lee

Dennis then a And had you few transactions. that. Appreciate maybe Okay. I whether know

one-time kind in expenses guess of think will termination that? Where in side you through bank quarter the transaction private should I the segment of the touched think of flowed expenses. of we maybe some about kind that kind going offsetting fee sizable transaction be I any mean one-time that there notable away or related flip forward, the on may going or have I that

Dennis McGonigle

profit that termination was Yes, outside. saw so release, I helped - the on know that there from and offset, and from that of The benefit net about you'll bank mean earnings hear the, some I you really net profit. of you'll million fee revenue private that hear the think in I to banking X so revenue had the and bank

So help while that repeat. some or things other one one the won't transaction. had we had other the We way that

the and will to the impact acquisitions, had Atlas smaller in larger really In was terms transaction. quarter. Novus of if P&L, a Finomial the two you acquisitions less

say would we from stub and quarter, will quarter quarter talked about period we that do Klauder salary Paul you'll the from question but about asked repeat. a that won't wasn't benefit negatively salary full the and impacted - his or changes some you benefit compensation performance in for of what changes the what had I be negative in you - but that to there a and fee kind P&L. - so tell they're run impact. had in into million was XXXX net rate hear it that that Paul impact profit there a So it baked and only the that was business our Things negative so $X.X that's I when Owen comp a this earned expect

So that was beneficial to earnings.

some get there's mean expense. of Now line that was profitability things unvested go options in was the into the I strong. directions revenue retirement strong, really mentioned that in always was I all, really but quarter, we of as did both we the strong, option the move won't XXXX, all In quarter repeat as top it with benefit

doing We do continue - smartly our but it strategic we're to the which from to through a strategic it manage is way a best expenses, and lens with perspective.

have we quarter but is net, probably do, say more a fourth have quarter. very I'd not, bit moving there down was, parts, normally it earnings still net but a So would in the little strong the brought it than we

Operator

with Sandler. Our next Chris question comes Piper go ahead. from Donat Please

Chris Donat

Dennis, up you but less was acquisitions, the Atlas and revenue you Paul's backwards have on just and I Finomial follow will expect XXXX - to understand, XXXX, to just know Novus, wait on Atlas from Finomial for do that businesses I'm I a comments the from to said thoughts. meaningful for expenses impact impactful, and question Rob's wanted but I in and on any those just impact looking for

Dennis McGonigle

had more as little year. of there. given say the little Well, it the and the not a a you more of full than anything expenses revenue more, say play as with size It's fund scope. really the it's full revenue that else. a to I'd for revenue a comes a - is I'd purchase of bit material well people, year Finomial as know, expense Yes, speak Paul but with was let a Atlas Atlas couple I'll as expense, of so and Novus,

Chris Donat

I'll Okay. wait Paul for then.

Dennis McGonigle

impact. tell will maybe Yes, Paul you its

it in about You're stub into The just any out on. of is now $X it, XXXX any based we improvement from period that's Novus, for aside is fully quarter baked fourth get got the we million. growth

So that operating includes - amortization income. the the all versus itself to acquisition of tied operating

know firm, As reporting GAAP non-GAAP. don't we you do a we're

that all we back but it out, could count, apparently I don't. So sometimes stuff doesn't amortization

Chris Donat

Right.

Dennis McGonigle

I'm Chris, I'm it. Got kidding, kidding.

Chris Donat

Dennis. Thanks,

Dennis McGonigle

No, you're you. welcome, thank

Operator

Ryan We now Kenny ahead. Stanley. Please to go Instructions] with [Operator go Morgan

Ryan Kenny

Good.

on expenses of together. far, a questions put follow-up the so had Just to that we've trying everything some to

XX% are in So last at been higher that's running for they now, have you've few your around margins quarters historically. the XX%, than been

look to So comp as we the Do to forward down you we move the all? and acquisitions and XXXX some investments number expect you're adjustments when factor or the making. up either that at of

Dennis McGonigle

that dollar opportunities, you run we is new but on a same of and I range. sustain margin get would the the given to expect going really a - if to that relatively both I'd would running fairly it's think a a maybe be things revenue If will, which of markets. scalable markets, line new will more but bullishness I guess target because in to something whether neutral predict, and our in new is don't we stable. help directions. but optimism dependent is be I I would hard say at at, have lot it's spend it to in much growing higher on rate to upon reinvestment top really certainly would money, do better we predict general margin on we things, generally rate that hard that it - we that do and moving parts always new look calculate It's to level with the profits profit easy healthy it's us think all

Operator

queue And we time. questions this at no have in additional

Dennis McGonigle

Thank you.

forward-looking remind to today's will and actual to our with and certain the update today's in statements. like to subject of differ other uncertainties that over the and Please responses We forward-looking filings do notices during our not our forward-looking regarding are that we in statements in would may it turn I statements questions your Al. other any appear undertake Before to SEC. to cause presentation materially. you that earnings to refer and have release make We that results to risks

the Now, other is Al? here Al.

Albert Chiaradonna

closed we cross-sells. segment to right. X% Under Fourth existing compared $XX.X quarter million include which the quarter or revenues one from is quarterly XXXX million In Fiduciary agreement profits recurring of related million Fiduciary signed All approximately times. items. fourth entity. platform to clients agreement one SEI's processing Trust everyone. XXXX with or X we was of and of XXXX. Good a recurring revenues fourth Thanks, SWP to note. million U.S., $X.X subsidiary Dennis. is new TXK, million revenues million was X adopt positive million the X for investment events, acquired Company, afternoon, profit of XX related X SWP to as XX SWP, Pennsylvania revenues, from client Overall, activity Fourth wealth from the Templeton. of of up XXXX the International, Trust million of will $X.X wholly-owned million to million combined $XXX.X quarter signed XXXX quarter Franklin impact and one-time which International related an for Trust the million three related new Of totaled the TRUST And to the sales the during QX XXXX. net up we turning net XX approximately quarter

During new leading Management, notes. wealth U.K. Waverton in was One management expanding the quarter segment. contract in two the our U.K., with Investment contract brand PCIM the we success a signed

has business on our current platforms is Another a contract in business client of HSBC, in currently that and note our U.K. the backlog.

of relationship services. fund this alternative represents an signing our While processing expansion include to

ability firms. excited our to environment. as these environment most complex adjustments help to We're business with for We respond to the their This changing try and demonstrates relationships clients contracted complex our to client respond we respect to in currently of them working help part most large needs our opportunity and with these our that in all ever-changing XXXX The are client this changes. backlog. changing market creates work is our of to to address with

the from New converted platforms competitor quarter, in Now Trust clients headquartered we SWP. In fourth to Cambridge to activity. England to SWP. two turning successfully migrated implementation

they signed their back staff. momentum new quarter. UMB to throughout their addition it's managed platform. In the that ultimately feel business, been the private number for their good also outsourced in implemented private from City business and have office determining SEI to their migrated believe Kansas wealth headquartered wealth to We operations converting management in-house. Cambridge wealth also management Previously, clients strong the We is while and is a with new continues, that of not pandemic agreements a firms indication partnering SEI. the

As not an processing including our signed, is update - backlog, in million global recurring on our new total $XX.X mentioned. but approximately the just backlog installed revenue I back net investment signs

opportunities We X% period ended themselves. our business from the fourth continue timelines quarter $XX.X which longer-tail asset clients total up management XXXX. to under as at change new work of management their standpoint, the an with and billion, needs assets From with was present

Our quarter cash flat. flow for essentially of the fourth was XXXX

associated of building and As our operating strategy 'XX to gradually business remain XXXX global into investing sustainable profits our matriculating that a we prudently pipeline create to growth. the we committed - backlog, improving and in go backlog,

that focused any turn questions optimistic. these over remain prepared We may it have. remarks concludes We across have goals. talented SEI on and a you I'll excited team That my to and is

Operator

[Operator Morgan from Ryan in Kenny Stanley. Instructions] You queue have one with

go Your line open. Please ahead. is

Ryan Kenny

on of update in the Private if wondering you any Bank have pre-tax expansion the and the margin path segment. I'm pace just

Albert Chiaradonna

again? that What question? you Can was the sorry. say I'm

Ryan Kenny

Bank update margin the of on pace segment? expansion the the pre-tax in any there Is Private

Albert Chiaradonna

it. I Ryan. Thanks, Yes. appreciate

a foreshadow operating markets continued with margin M&A we're but improvement, several feel the and laid where continue plans where as - capital progress. risk as you be the they're As do continued be monitoring well margin in achieved, we overall, the XXXX and we comfortable about forward, we us, improved of but opportunity over success and management what waiting will as impact we've to quarters but we've and will expense having can for going think the we don't an out last imagine

Ryan Kenny

it's on when there to Thanks. is any Fargo in expected if is And and just the follow-up update Wells backlog still backlog the still come one that's through.

Albert Chiaradonna

know question. divestitures before Yes, make, and still of mentioned good live the investments in Wells deliberately backlog lining our make I but we're how we timeline. backlog, they in Ryan, business implementation you is talk our to constantly Fargo those up is the they about don't clients their about dates changing, implementation as and discussions then our with as

Operator

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

Robert Lee

two thanks. Good good I have And evening, questions. afternoon. Great, Al.

size given First, update that where it us and backlog you kind in business on of right the had things so first some just could It's the question. new of you aggregate funded, my now? wins stands

Albert Chiaradonna

No Yes, well. in prepared and the you as is as good mentioned to Robert. Yes, $XX.X my evening million. problem, - at I comments, backlog global backlog the

installed. XX% As make previous revenue $XX.X installing would of matriculating quarters from million progress you that I and continue clients. we know that be myopic, would and approximately the And then to anticipate over the next XX months

Robert Lee

expected maybe or kind with you to a a margins of how have or give where year, kind you margins? asset would of given maybe started flat trying go set Can do let's to have sense of, But see you have, predict year, then would business where you - you in heading a given new whatever markets kind progress to finish - conversions, of year expense from further. call I what a what expected you return you as no down mean up, us they into plans one perspective, follow-up, back ended? the where margin into it kind go the environment, you level here, clearly just And can Great. that, Heading hard it. of this stay

Albert Chiaradonna

with we're think - the how Robert, Yes, throughout we obviously yes, I think happy progressed year. I

expense where that I progress has around improvement, we sit and we will fact still as I looking at But time. progress continue into investment ins margin capital management to or moderation, neutrality can't there our outs a that to that lot one I as think of I market our would given and even especially made how we're XXXX. predict. imagine would from the point relates it margins, I today, the stream helped in and And is our

Robert Lee

Okay. get expect any certainly is may we some some, some converts, come that arms And sales, are to there that I the kind be just anything be we to installation kind backlog on know, know convert don't one-time should mean, cost the you as nowhere that to ran trying expect happen costs incremental lumpy I around see there that half this as of year, about there's usually it? increment? as of big thinking conversions should my you around about - I but

Albert Chiaradonna

about related Yes. lying to No, is install wouldn't we that would Thank. material our flow line baked clients, us not have in ahead, ebb I items. expect relatively to what it's what's we great, and implementations Robert. and in our implemented personnel be costs the to - exceptional it our talk The as cost inside but cost will we our we expense backlog. see Obviously, as P&L.

Operator

Our Please next Sachs. with Goldman go question comes from Ryan ahead. Bailey

Ryan Bailey

was I potential this watching can about maybe wondering can number funds terms help sort of know help just way is you're be you a think very of those helpful? If of headwinds? potential think us if the challenging, think if about that M&A us of that I some I being about help there can - just what that and comments, think would in you size be risk us and but any you can is

Albert Chiaradonna

know opportunity Yes, All pace don't imagine, Ryan, as pacing. control really that moving to not of you can sure because size is M&A down. is up, the risk impossible we of me we moving the that for or trend I'm the it's

business to pay that. the So attention as we

et we we're to as Now as end the is M&A decisions with view the the We're conversion an like deal, final actively our what know, And it And that and intimate to top asset. we at on I say, their and become the we're capabilities But of but don't platform experience, M&A to them tier you is we're respond engaged an going day with that determine outcome. it, second organization's that our as cetera, in priority needs. relates will Ryan, clients. to involved decision.

hard it's that or for for monetize So really predict to you. me

Ryan Bailey

segment difficulties. of I other, appreciate Q&A, wanted that. sorry, had tried sorry I looking clearly I'm for with during to am the Thank misheard you for did process in you and I the to getting Al, discussions. come question. other and I'm technical doing Rob's maybe say Dennis, But All a a CEO? Okay. you back the initial future if you. And question, but quick first that right. on sorry some Al it I of I the into are line

Alfred West

We started the look.

Ryan Bailey

Got it.

Thank Okay. all questions. you. you. Thank my That's

Operator

comes with Young Michael Truist ahead from question please. next Securities. Go Our

Michael Young

a little level could Maybe open-ended, Just if for and the about ask, are? strategic high it? priorities of professor especially what how stack intentionally wanted for leaving you kind So management? those bit to rank and businesses your that kind strategically of

Albert Chiaradonna

opened just Yes, that great that's I'm Michael, funny. question. I hours humor wasn't can up you that now about to be lot three to of maybe a last. Michael, going But sure today. use two call

to And summarize relates about think to if I going several our the main is remain to last and were I have. clients year talked we serving the and to I as consistent relatively that it we focus that, half. our the over strategy, a we're think strategy probably quarters

We we're have think and clients, evolve. additional businesses, see would focused global be relationships pipeline. in a potential serving value on really I clients, we deep and there we existing their those those those After relationships with relationships building out and pipeline, could say we as a change really

in global has U.K. some that some we've to people and U.S. selling with personnel in So take made experience office. the our help some then moves

the to and in would clients. deep build the momentum clients, which that on and experience the get the U.S. So matriculation pipeline we laser-focused I'm our I in then the revenue, with that implementations of pipeline of And those then would stronger we U.K., to consider the that expect in that continue have

on around been but almost a for been here, clients have installed all with. I've I've while involved SWP So been

whatever huge questions needed So investments be expense that. I And would with or four I relationships are a to then expand know really overall what saying, though, be and necessary going number respect be it to those work we're on continue and it think eye - say and not say, my be from towards safety operate without SEI's clients to focused an and that going of so a about matriculate part And to to on we're remiss our what it priorities, sure to and we hard that's strategy Michael, install the on they management. health new ourselves in have my we've business in like this, environment I mention making will employees feel goes culture. in as I I before today talked find takes I'd keep of to priority

Michael Young

a move with pandemic, of process. existing curious proposition just of about kind clients what sales that function kind wins the internationally kind sales as into you really kind year trial the with is with platform just just the the getting you newer of value success recently like of Okay, maybe feel is a post the kind ahead this it key great. driving I'm and side? of or And on Is of especially or

Albert Chiaradonna

one be mean, things about to you it. our say start is Yes, can't multifaceted. sales one process question, thing that just Michael. I'll sales because with that's sure business the great are in timed of I the I'm - just the the process decisions know interesting

have CTO involved. CFO involved, the Risk may involved, You of Head the a

And good one of pointed I the our to is close you get So you about because sales value things will I process with value of things our would difficult underneath our actually the go once But really of predicting is feel our unit, exactly market selling the selling think will complicated. in I pipeline start process proposition. where proposition. when about I

think advent and ourselves proposition priority And value position our I trend overall provider differentiated when COVID, like strategic given and towards I as in a outsourcing we how the the important macroeconomic they as about think in SEI. of place sales of position point we cycle, a rightly resiliency the so. favor it an

our the infrastructure We that. have space. updated into We lean most inside

of I the I types over of we're our seen intangible. think I show services deals XXXX closing, the to translates more to U.S. into that of And and a to point is in partner and see the architecture one lean it's here expertise clients our sure we'll the relationships with we you've are to to We outsourcers that that of a is market. We be year hard, means only differentiation. momentum, into, When think how that lean both SEI. think we're then we deep this momentum. and to in the captive make as winning little domain professionals lean about pursue homegrown, as the and that fully continue have into transcends and our the continue My clients active U.K. a it what we goal engagement we in the and

Operator

Instructions] Oppenheimer. now go [Operator go with We to ahead. Lau Owen Please

Owen Lau

very terminate much you fees I'm that any missed did how million back $X.X existing early an much. one, Thank this is want have I termination impact expect also sorry, Why but client in processing there we should client. investment out go and may to this I Thank to revenue offset. you. quarters from and

Albert Chiaradonna

don't thanks. think Owen, Yes. missed I it. you

platform, to good for appreciation, and to referring you're client The M&A purchaser system. just It business So, non-SEI which competitive was onto client move SWP a question. have proprietary a of this their to was the buyer us, an so they that this fee is decided termination related activity. point client has you the and for

basis business wasn't on by a revenue they're to this I it as the on the impact. losing to this that this, appreciate because don't proprietary we is lost we consolidate are then we competitor, to of it actually another we - think details client going platform. into if of And our, So client get

Operator

no questions We queue have time. this in at additional

Albert Chiaradonna

right. All

it to McCabe. So esteemed I'm to over my colleague, going Phil send

Phil McCabe

our XXXX Thanks, another the lines. strong everyone. Investment Al. Managers and all business of segment afternoon, continued of growth year Good momentum marks for from

and results led executing our possible our through entire made existing significant strategy the and of our IMS on by new driven with team seasoned continued growth, These clients group the around were focus world. results Our expansion the positive growth efforts sales leadership operational efficiency.

one-time For our revenues as which option options. fourth the was of million million XX.X% fourth compared to totaled growth fourth by expense for to of the of unvested our quarter revenue reversal compared million, a retirement XXXX, XXXX. growth related the was quarter result of also of was the quarter higher the XXXX. to $XXX.X and of in $X Profit or a stock XX.X% $XX.X quarter as fourth higher revenue Profit benefited

are of balances due asset at $XX.X end $XXX.X to fourth revenues billion, returning another recurring of net fourth in the with sales third of approximately net market net billion to market Third-party the quarter $XX.X of at generate the to XXXX. during of million, of totaling expected million. primarily we the the XXXX client fundings and the quarter strong $XX.X asset appreciation events business This higher increase annualized end quarter billion activity balances of billion. of XXXX, which quarter had new $XX $X.X were is In

$XX.X clients $XX continues administration as of startups a managers in re-contracted we equity selected of the quarter, $XX.X billion new business we our market marking private these In takeaway collective from and SEI conversion was equity business we as business clients. our with recurring announce both to administration. billion of fourth added platform. fund traditional end expand Advisors We wallet stands of We're for the Circle competitive added a the to funds of a unit, the alternative existing robust million fund solutions market new remains addition, all equity also fund included resonate our firm product provide a competitor. in estate existing sales unit, continue our multibillion-dollar particular, the lines and multi-fund our process pleased clients. another won to startup share well also expanded and a sector. ranging of expansion In revenue. several new business sales number initial in in Highlights to and ETF private ETF in global EPS, cross-sell private strategy many entry strong. with of with million. outsourcing $XX into Europe, real to Inner unfunded our and trust sold from In with names private closed but backlog we our complex strategic events new the large and a at At In

existing into progress as XXXX, we our the following. we wallet focus market then you plan XXXX rate, our Executing for and in prospects clients increasing That on with I it on our with investing As our prepared our plan questions we about growth any forward. solution turn position and We're growth my over platform workforce. we momentum share client will strong build and to may acquisition concludes exit and and strategy, our excited our and optimistic the in very a strong will have. expanding successful remarks

Operator

Robert to Mr. And Please Instructions] [Operator go back Lee to we're so with again going ahead. KBW.

Robert Lee

the on for thanks. my Thanks curious I'm Great, just re-contracting. questions. taking

mentioned you've call it roughly. think about I $XX million

of the mean concessions, kind but to get unique pattern you're to to you're kind - able on I sure if somewhat come up been the for give curious kind up. new contracts you're re-contracting, Just experience when of I'm any of, come increases. price kind have has price, able that's seeing you of in your what one what's of general, each

Phil McCabe

years They are Hi, Rob. all are evenly on almost about had Actually, alternative we different that quarter, multi-year split four in this a traditional. and plus Sure. average. number of re-contracts between extensions,

here alternative and and thing we're seeing our general, additional few any there, them a all second re-contract. probably not client of same years - signed downs at was they in in same but and seeing One with largest net we're really five for services

Robert Lee

And follow-up, just as you. thank notwithstanding reversal. I mean, $X million a the Great,

out Is of still that of range. something XXs XXXX that the I just expectation could that than of think pace the down that back the higher at high progresses, to we calls, that kind kind trend be Is there towards margins I was let's a be? kind in running market of guess again that an normalized call prior play that it, expect they whenever and flat expectation? as backdrop may it mentioned was should would in of have against been

Phil McCabe

Yes, not. we're

bottom-lined. kind think of I we're

the our than cost than are if you one-time back margins so, converting actually would or quarters operational higher last we or didn't the is hiring implementations as higher we be QX probably range and so in and in at see expense the past ever seen. that bit the XX.X%, the catching So have right running that little up. of faster that clients over benefit, but we've in know, out, our highest XX, a you few we're We

for XX% the being of talking still spend with we're going been actual we've long in towards the is we said matriculating range faster in We So number, trend focused probably, our focus a time, But managing also that position ourselves where with but business, expenses, the as hiring. the hiring to expenses you catch-up a growing and know margins. expense on XXXX we're mid-XX back as about down are to that certainly than a revenue particular those revenue. the not of kind operational managing on very

trying line, time, a as So we're the fine on same nice to was it get walking job over possible but convert and at the we're we're, clients as quickly the business. a

Robert Lee

follow-up or of to have fourth the what that's what budgeting people meeting that above Is the kind December is wage you there, out - you when would to you the did even up want it as it the in try in ramp is kind sometime have which as staffing it kind but hiring, a up is that, corporate I that with finding kind catch business, get back you're like even most And And of most, Are the good. maybe to is seems you America of of you this, as I this inflation really your to it's quarter. - you expectations, you mentioned guess with thought or facing mean asked spend earlier. running of your onboard?

Phil McCabe

the about challenges in spoke as been in helping us and operational we of money I last Yes. the additional out the a a and the our our gave all And In think call, employees that investing Rob, same else we're everyone of is to that lot you workforce industry. know lot. facing know has I actually Dennis

So run rate. baked anything into that's down our there is current

ledger. that we from So incremental anticipate operating lot the expense a don't of part of

at think and happy. going one we're get top people three can stay I in for and just we're So them to the of doing to our XXXX initiatives door keep It's keep it. what we

Operator

queue. there that. gentlemen Please questions who no Lau, [Operator Instructions] Mr. have that Owen go with prompt, additional retract We with are do And Oppenheimer. I in ahead. is back

Owen Lau

taking Thank my you question. for

a Just one. quick

about Could to other approval recent Europe the there traction I you countries into Are expand license. think get you. the servicing you in any please talk may you on got quarter last your that want Luxembourg Thank overall? further? and

Phil McCabe

Okay.

probably partner running existing client and EFA. we alternative our we had Owen, second jurisdiction Luxembourg that the business had a the ground and and you is and we converted hit on X So, November already as know, any on of for largest funds ton European investors

really great own office that moved there. and we a is business doing into where So our over Lux job Steve

we by is the And the lot alternative traction. the think being as of our are clients job. of a funds I in states of a all office I Even well. a doing great have think lot So launched

to as of those expansion, how figure have working get presence looking some at Eastern that and us a to we Far do As things are more far out try we're as we clients to just with speak.

Operator

additional questions again no in And are there queue.

Phil McCabe

you. All And who to right, with thank that Withrow I'm runs the going being segment. transition said, to Advisor Wayne

Wayne Withrow

Phil. Thanks,

supported ambition For is ongoing for XXXX, solidly trend strategy. the the be by of can so for fully of in all is quarter Advisor deliver unit Its to advisors clients. and the the the their better, is they pillars help fourth futures bright our that implementation our strategy. new And mission headline that of

in of the we total platform billion our key what of the comparisons financial growth, our Numerical With the that believe milestone the segment, over of in $XXX highlighted of execution strategy results the achieving drove that by assets. cash net of market include in fourth momentum are comparisons quarter the included results and release. financial some flow. positive positive last due those continued to press rose Color capital years revenues in explaining

in $XXX in up flow. non-managed contributing including net to we nearly billion costs $X.X cash were decline asset asset and the Direct Expenses For million in year, managed eclipsed cash flow platform margin. our the in in significant are increase. growth of including fees both other reflected or in this our our labor and to market integration technology items. investments Orange tight the and Investments due sub-advisor platform, personnel a

billion positive net we managed quarter, had $X.X this the our billion progress. in total, cash into $X During flow. Of was asset

business advisors and advisory reengaged at had firms, over who December platform As last total I new before, XX doing the assets existing QX, essentially recruited new stopped exceeded million few XX. years XX we In with mentioned us. $XXX

For year, reengaged XXX new we advisors, the existing advisory recruited and XXX firm.

new Our remains noting of Wealth cloud-based The follows. began office three first comments including the the strategy. middle capabilities I on value are our built pipeline and integrated unparalleled my service. core of advisors by we the active. ongoing strategy Platform, a as are and principles of of the of technology With thrilled reengaged execution front SEI new proposition

and standalone unbundled we Second, fee curated offer bundled the technology platform our management and platform. of offering options or bundled our platform providers. with opening asset our third-party And to management platform components our construct asset both third, fee

are execution feel are may making I the early welcome strategy, still we in phase now you our good any we of have. progress. While I new questions

Operator

go is Instructions] ahead. [Operator Lee first question Please Robert Our KBW. Mr. from with

Robert Lee

and but feel growth seeing, simple expense real you're do as on linkage of rate revenues what's it's is run there that quarter with mind, kind comments of good do between going level the maybe one-time-ish in we what of can obviously that you good is I about a With is quarter-to-quarter, this markets, there kind kind we maybe on platform? away there forward pretty some they the or or is in think a of around the assets your question, there, should anything And going building to understanding is the but - of base. of versus that give breakdown us forward? and just kind expense some just goes think kind will of AUA obviously total going bounce think in around to this And and kind what ahead

Wayne Withrow

say to are assets where assets you If - don't non-managed. about that I solid, the in want do. revenues XX% of if and there your wouldn't do But of to know unusual and that quarter. your the know revenues is was nothing what I start. platform-only sort just question, was

Robert Lee

types have great. updated know of of into, a you're maybe deeper, a products or but I give you managed us Okay, what sense where give has you falling is been an the then shifted that's maybe And your that's billion kind of portfolio little cash you demand seeing, that, - ETF shifting? just products, successful, - portfolios things and look maybe or can of know follow-up, the us you or the are the a very model dig it pretty can flows,

Wayne Withrow

fee. I that to mean level, say for would my a it items gives take are more to be And in with there's advisors flexibility number - pricing one, clients I a if fee as would at I a to I Yes, that unbundled preference think high opposed [indiscernible], be bundled two there assessment. their appears as

definitely the there going And that's a on on. is for secondly, So definitely passive ETFs. preference side

Robert Lee

right. All Great.

thank questions. for taking Okay, you that

Wayne Withrow

unbundle be both [indiscernible]. Have that to path

Robert Lee

Great, Right. thank you.

Operator

Our next Owen from comes Oppenheimer. question ahead Go with Lau please.

Owen Lau

Could taking you on my Thank just a Wayne. us question, indexing direct product. quick give the update for please you an I one. have

is from I you this February ESG you think in rollout. last and Thank an launched product also that, learned year what I this have with there overlay think you.

Wayne Withrow

both lines. I don't some we and that continue Yes, momentum of year overlay think that. of those coming ESG what product either that results initial gain last year while those full we're we positive of I stride in direct of on getting fronts the in think could say this and at the it would one the No, our releases further of sort and to of traction end enhanced in have those yet launched that, indexing in a we was I with lot we both areas and is phase

Operator

Goldman question with go Sachs. Ryan next Bailey Our is Please ahead.

Ryan Bailey

I some us you more re-engaged could of firms. was bit color advisory a in these give hoping little

re-engaged, or part, away it with and like, them, it that say most important is and probably this business when reengage is with you're to you now back had them platform, decide to caused have they what that the to maybe you? new come starting to was the So incremental is converted that win

Wayne Withrow

would I wealth it's and and our the enhancement think are question way the a format it the over into is, platform. and the last really multifaceted completed also year mean so we changed of Yes, of platform or we've we've I robust rollout strategy the I deep that

us maybe to they and used us, we don't really that addition we unbundle advisors in investments things who of in way strategy about, I changed to us some to are talked we've technology the bundle, now. used really a us, I there's business years know know know how lot the this what that came XX of don't almost think been with anymore, to we and know So do we've maybe they and

reconnect concerted as some we're over account reengage they they some effort, out open people that's some, you those a maybe them new know getting So we're and time, and a get we defining reengage. how with and what, and if have can maybe we let's maybe had opened see business well let's and not them account one maybe of or new really

I new and We a excited say are that hey, people the these they said, to assets I had to expect on SEI, excited to what doing we're want we're do would now We're and platform. about about talk get - again. what we maybe So assets. I us to to business - want doing want sending new do about you don't they say are are

how reengage. define that's we So

We engaged that now, not accounts. talk, opening prepared a have single that about opening specific these say talk account weren't people but new accounts, are would just to but to are metrics, I multiple I'm but they not now

Ryan Bailey

can contacting with potential us of and platform we the part any it, of you reengage still in are give previously about firms reengage XXX I during you rather than majority really that? or sort Is it firms the around but interesting. advisory It's existing the color that So okay. this those year. of maybe reconnected you qualitatively vast re-engaged quantitatively firms? were process Got of early wonder, the can speak

Wayne Withrow

that XXXX probably There's category. firms targeted that fit

Ryan Bailey

very Thank that you right, interesting. for okay, color. all Well, that's

Operator

ahead, Truist Go Our next question Young please. with Michael is Securities.

Your not line open, is sir.

no in We questions at have queue additional this time.

Wayne Withrow

you Thank very to much. Okay. I With that, over turn Paul. it will

Paul Klauder

funding million discuss profits. increased quarter Thanks, the sales quarter I'm as Wayne. compensation we were quarter and a deal prior year. financial revenue in QX. fourth billion asset sales prior everyone. quarter U.S. X% profit for lower were year. million $XX.X foundations, and was $XX.X by revenue. new going impacted Novus expenses Fourth than Higher XXXX for for evening, billion. million profit Gross million million. year-end Operating one-time the year. with XXXX. endowments, costs capital Client strengthened to revenue the one-time compared and QX XXXX profits for across which to the and of were quarter-end to losses competitive losses of higher the to due in were healthcare, $X.X X% North employee backlog growing for for higher impacted clients a markets that business X% we full the acquisitions American year and fourth terminations, markets. million. fee feel positive and our of quarter $X.X million, rebids. profits were $XXX.X full Full signings diversified was Operating to The represents Lost a operating QX Total fourth and we Good the Partners, quarter, of of In of Management. and or directly client Net $XX.X revenue and the at in Fiduciary XXXX U.K. capabilities strategic quarter increased acquired XXXX. OCIO afternoon/good results balances XXXX be than the year compared most were was and as performance for new to sales $XXX.X margin well asset unfunded an QX client billion. totaled entire OCIO year $XX.X operating X% loss billion, large earned year the $X.X were it and of mergers two continue events XXXX. Fourth healthy $X.X $X.X $XXX two sales positive billion were was completed XX% XX% DB in full very DB

in the institutional mindset sophisticated, which company. The investor large, to us significantly and Novus and Master the The platform can and Partners previously global investment in capabilities U.K. ECIO As Trust our institutional Atlas overall office our for market capabilities SEI our the trust manager acquisition announced, acquisition clients we and bolsters leverage believe investors. of brings in the fast competitiveness large enhances family master One clients, growing clients the acquisition we

our much and these that position we percentage acquisitions headwinds believe While the profit to in acquisitions growth and any in optimistic will bring you answer XXXX. are questions to profit very strategic on both may we have. and potential, I'm happy enhance you markets long-term Thank margin

Operator

KBW. from have Robert Lee We Please ahead. go Instructions] [Operator

Robert Lee

Even I do that. can

a if speak? quickly, $XXX kind relatively the versus kind relatively of just, been Is curious or gross a, real characterizing basis negative, of and Paul, there outs, to unlike of mix to so positive, kind ins of of flows the Just of I the I any maybe changing net just mean, have redemptions. the kind way on even, sales million revenue would think

Paul Klauder

million, the look net million definitely have in a and we we about then it over When the fourth is incentive bit recognized at as we little the positive, $XXX $X that I that quarter did fee talked well. probably

of revenue, for of of So of pay that benefit million that because accretive. $X.X specific just a million million expense That certainly XX-XX was split. profit. number $X.X your It's sub-advisor and we the $X.X was product

Robert Lee

right. All

Okay, great.

the comments incremental around guess of acquisitions, the the kind I of pressures. some some so at And of least expense headwinds or from

$XXX know less it's part guess think expenses the million So in that was the, about be that the of is so, we - I $XXX,XXX deal I that kind than forward, going or or release, kind or and incremental pressure just think of should was about going somewhat it's if we of so to that?

Paul Klauder

Yes, let impact that me for you.

run So, said or I that's loss. $XXX, the release which is $X.X rate in million, $XXX,XXX that's the the

Robert Lee

Okay.

Paul Klauder

the it component $XXX,XXX deal X.X deal we then of largest for the Novus to QX. was is That's Obviously, go the costs. transaction of the costs away. And amortization. how impact million The get

off clip of So, XXXX the organic some just but in kind and both kind is non-GAAP schedule then of it'll over tune diminishes flow impact basis, of XXXX million a time from kind cash around is over time. breakeven, be perspective XXXX, of on actually in the the business the about $X will the amortization basis of probably as and

Robert Lee

into you And of you are kind Are once these you their mean acquire period them at expect curious, to to least just I addition these of network, time investment some mean, they bring to some their scale as you, do - post-acquisition. to that capabilities Great. for to step-up of in require or enhance I capabilities capabilities. whatever add that fit maybe some platforms your you,

Paul Klauder

than More equally which capabilities selling we awesome is office in the the is art we kind in which on the that's of that table. is not to least bring their our side, the addition technology is baked capabilities to of bring but and technology revenue back all them, the of projections state of middle-office the in Atlas but projections, the into Yes, because side sizable increases the absolutely. Novus

and So meet brings of fit because SEI of clients which to it able their that additional two really clients awesome their possibilities the table, such to organizations. up sizing revenue why the to capabilities upgrade an is is the

is for credibility So are $XX growth that in which we fairly I financial deal ones part think can suspects be quite And I'm think investment are the I global were team, want some on XXXX, trillion asked, and they the capability maybe a to and they OCIO, have we bullish now them. there residual of about about to go that an opportunity, is potential is we're about that over of because are have a XXX clients message with XXXX, we instant already before bit little great into the get that this business. that as might do-it-yourselfers, market, bringing impact not going we we're X,XXX the acquisition suspects profound but squarely

Operator

in additional at no have this queue We callers time.

Paul Klauder

to Al Okay. back With like the West. that, turn I'd call over to

Alfred West

optimism throughout to So, the inherent. with look ladies businesses. future and to the We opportunities we gentlemen, capturing are our momentum and building

constantly changing markets. We are

will clients our brand Our remain you futures. and our our we Thank great belief attending build be call. and new Please optimism safe healthy. our reflects our strengths, help company's for that

Operator

Conferencing. and thank Ladies today. conclude you do gentlemen, for AT&T conference participation and does using Event that for for this call your We

You may disconnect. now

We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our Cookie Policy for more information.