SEI Investments (SEIC) 21 Apr 222022 Q1 Earnings call transcript

Company Profile

Participants

Al West	Chairman and Chief Executive Officer
Ryan Hicke	Executive Vice President
Dennis McGonigle	Chief Financial Officer
Al Chiaradonna	Senior Vice President, SEI Wealth Platform
Phil McCabe	Head of Investment Manager Services
Wayne Withrow	Executive Vice President, Independent Advisor Solutions
Paul Klauder	Executive Vice President, Head of the Institutional Group
Ryan Bailey	Goldman Sachs
Owen Lau	Oppenheimer
Ryan Kenny	Morgan Stanley
Robert Lee	KBW
Michael Young	Truist Securities
Chris Donat	Piper Sandler

Call transcript

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Operator

00:04 Ladies and gentlemen thank you for standing by and welcome to the SEI First Quarter 2022 Earnings Call. At this time, all lines are in a listen-only mode. Later, we will have a question-and-answer session. [Operator Instructions] As a reminder, today’s conference is being recorded. 00:29 I’d now like to turn the conference over to Chairman and CEO, Al West. ahead. go Please

Al West

is On June Phil everyone. that our today, have role joining we and be I XX:XX to transitioning Wayne our Withrow, Chiaradonna, the us and Also then over to CFO. after Dennis McCabe, X. XX:XX by McGonigle, CEO business Heilig, Hicke, Paul start Al segment. who it I’ll Dennis each and will recapping first business on our will turn the Welcome, LSV of our the call Ryan leader Now today, Klauder, quarter investment Controller; new Kathy XXXX. segments. comment I’ll of results segment and And on their

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

for grew XXXX. First the first So, from our XX% let’s turn quarter quarter XX:XX results attention revenues year financial to ago. a of the

first year earnings a Our ago. by from grew quarter XX%

EPS First years variety leading while management, balances. XXXX. technology. grew reported events stranger quarter has the at from to successful He a quarter asset He repurchased first quarter stock is XX:XX Each decreased worked this quarter a processing, to $XX million. news segments X.X the our is we Ryan of of at SEI XX will balances recurring. the that repurchases. stock of of million, SEI in by for CEO. X.X $X.XX Hicke. asset The balances cover nor million share. decreased selected net big of had a into and $XX.X I'm and details. by during is sorry, no new Ryan $XX.XX million $X.XX And shares positions In $XX.X we per $XX XX% quarter, We a of LSV’s which SEI the quarter, you. XX:XX have X.X million. That is in net of million with translates the totaling price $XXX.X sales billion,

what's at start-up. finally, years to the Al? all. really it the States. And his to lives SEI leadership Al growing that hello. say global And United breathes and for like now [indiscernible] model career turn provided In culture, recently, having I'd providing is And to more brings perspective XX:XX a fast [Indiscernible] he we outside over important addition, our to Ryan of a to role

Ryan Hicke

Al. share Thanks, last am to the couple appreciated everyone. Good to focused many a afternoon, thought take some XX:XX of I things the I I weeks. speak of I over minute on the to would of brief so you opportunity presently.

businesses, to capitalize margin to on position see we will to focus expanding strategically units, While and Sphere make continue strong growth infusing strategy, including including across continue spending excited I expansion the coming weeks. year company. alongside the will and need truly the focus I'm including over closely changes on growth you. more skills, the the SEI continued a in in to and I the we and reinvigorated XX:XX to culture I thinking, opportunities now maintaining in engines, a accelerating our in banking in our talent running you or are to financially, expansion look evolves, rapidly very future. Al today emphasis turn M&A Dennis, in forward XX:XX truly all on As with ground other other segment questions team and diversity June. an you, relevant and existing and to and private new activity our it any XX:XX but Thank hit forward on look work with and of time all new to perspectives, to

Dennis McGonigle

to quarter quarter an experienced net for income discussed on and approximately and EPS segment increasing and in others million SEI occurred in also experience discuss deliver As to of a results Management. the approximately of quarter personnel quarter a as a other to $X.X loss XX:XX investments. new continue was to Assets SEI fee private with go fees. of with of new our As contract quarter activities Approximately in modernization fee in mentioned quarter of million million segment the Good business during strategy XX:XX depreciation the contribution pressures $X revenue Revenue in billion. a costs. industry, of of quarter. we inflationary integration business cover during segment market first million quarter our Ryan. the XXXX. during of X.X during I'll million of Regarding first is Wealth LSV quarter for contributed operation XX.X Group, $X.XX During Sphere, our our Private the of XX:XX Thanks, our LSV negative for data have billion disclosure, which During the cash X.X items. consisted per the platforms banking investments XXXX, different I'll and of quarter, and couple business SEI over decreased Management with XX.X LSV approximately consistent afternoon, XX.X% XX:XX of approximately the to million income in first the expense approximately of share. loss corporate the the XXX.X our LSV, million segment This in XXXX first new by the to $X impact XXXX. assets prior the of on tied one everyone. This investments the $XX XX:XX flow Al first results approximate first of of investments we SEI net the received of XXXX. during the the the compared Asset X.X X.X we had million ownership performance quarter for for billion. termination of XX:XX recorded the XX:XX in one effort. previously compares was

our foreseeable recent expenses operational us our of groups. quarter costs to effective to an with XX:XX our support the full XX.X%. in tax quarter growth. the impact with associated for including We a our pressure to In on Also, reflect has rate was expect acquisitions company, we Our continue the XX:XX this addition, across add Novus. particularly This expenses talent be had for future.

We information. take XX-Q included have a should additional refer now our be Please filed I'll more questions. take to information for release look at. earnings our that be in to also any soon to you happy

Operator

Instructions] come [Operator with Our Bailey from Please go question XX:XX line will Ryan ahead. first of Goldman the Sachs.

open. is line Your

Ryan Bailey

are about? and a maybe that most the strategic the I you XX:XX Hi, forward? question key business what I wondering areas the had that good was you of priorities what have afternoon, spent And going Ryan. the for are thinking time evaluating everyone.

Ryan Hicke

you? opportunities to strategic to think in much week, and pretty kind accelerating on some I have maybe the what clear I are redeploy but our reiterated. to how of when we a Ryan, minutes capital We talked ways growth also organic are in I we few X:XX can of continue such exactly looking opportunity a I we think do the have Hey, all last back, opportunity we coming focus changes what really the reposition is businesses, of priorities reinvigorate we business room there, call what new focus that mean, ago, important, and that great as mentioned an look, or advantage and everybody at XX:XX a but really also we that, talent workforce. really, refresh new great with workforce with ago, believe in I and minutes kind have really equally the opportunities on a shares couple we I to think And initiatives. view have to start the a

around down that drive going and as continue with So, three down] they're to we're continue what [falls do, key kind working to more will to to areas formalize plans. of transparency the but we're the real team [ph], going I – those much the time we'll provide

Ryan Bailey

business wondering around but prepared that is a will not you remarks the operated how And had or too change preview Private view you same around to Banking that much margin in segment. it. is and with in trying this, get implemented looking your mentioned that backlog of come incremental that the XX:XX helping sort to as margins? view was Got the previously that, is I the expand hopefully I'm in just

Ryan Hicke

Yes, focus to go and what spoken in accelerate to opportunities I look about margin. is remarks, but cases think certain past we're the you're in going his right, expand through to on we have XX:XX mean, I we'll we’ve going to continue C Al that Ryan, to

Ryan Bailey

Got XX:XX you. it. Thank

Ryan Hicke

XX:XX You're welcome.

Operator

with XX:XX Our Owen Please go next Lau question Oppenheimer. ahead. of will come the from line

Owen Lau

and Good XX:XX what how questions. about you for thank maybe rising taking you Thank want differently you SEIC tensions the Also, remarks? prepared to my on afternoon position please you the and based and anything would do environment geopolitical Ryan, current talk you. maybe navigate in said through to you could

Ryan Hicke

navigate the Owen, good the to middle missed speak sorry, to I'm you. tension? geopolitical that XX:XX I'd of

Owen Lau

[ph], [environment] Navigate through what remarks? also in tensions is do current anything just would prepared geopolitical rate the like differently mentioned XX:XX you rising the and Yeah.

Ryan Hicke

speaking We're specifically of specifically of really day in kind about impacted by our kind not Russia-Ukraine. XX:XX that day to business

So, right Owen, for usual. business now, kind it’s as of us

We happen any that [indiscernible] our that on front. impacts, our stay have will anything acutely influencers business would aware or obviously employees or on

Owen Lau

cash and And think please to also flows down clients on bit release, update due provide existing also maybe on I XX:XX you the negative year-over-year you. you color from little LSV? more Got then LSV, on were it. and could losses, Dennis for one Thank maybe client press mentioned the earnings a that

Dennis McGonigle

XX:XX Sure.

moving for their and tale the their very a of them good kind performance of markets oriented of value [indiscernible] to and a has relative to stuck fact So, to basis forward, of being a they've kind able me that it's coming advantage take out strong. on the been firm as tougher

quarter. fee And about that number first performance in somewhat XX:XX by the reflected million $X.X Last X.X the million. was year,

performance is generally quarter firm. of LSV a quarter not usually first for a So, as fees

hard the to the space one there's flows activity year they're negative, to search optimistic relative value improved gotten thing actually in of in as about the performance while asset LSV flows. their a they've attention lot [indiscernible] are gotten that talking to value capture but the new for has more cash to better it's they've gotten, investors. prospects has So, And

Owen Lau

very XX:XX Got Thank it. much. you

Dennis McGonigle

XX:XX You're welcome.

Operator

will ahead. come Kenny of from Please line the question Stanley. next Our Morgan Ryan XX:XX go with

Ryan Kenny

XX:XX Hey, good afternoon.

Dennis McGonigle

Ryan. XX:XX Hey,

Ryan Kenny

Ryan. a fairly First, the Understand announcement for recent. is question XX:XX

grow focused to don't about to big bit but versus to the anyone's operating strategy outline approach as the leverage. a the little How just expense just detail a wanted balancing being think CEO think the expecting So, your need invest Thanks. I a to on management? on in do more dig about yet, a comprehensive picture question, you to first I of follow-up

Ryan Hicke

XX:XX Sure.

at we're I it's making I look look in Ryan. invest of at position that maybe financially opportunities to term mean, couple best SEI privileged that how we're redirect discretionary mean investments and as revenue to re-deploy for either we will we a new but I is to include kind to the started that as fortunate opportunities, as and things or going the really do we position see parts, we think in the future be said the that capital that And ourselves we short think in strong we've of are. continue I we in to today may continue some beginning, with ways that allocate couple also in years on last of or horizon think that to growth. aligned to investments

Ryan Kenny

just Dennis. follow-up then And Thanks. XX:XX for question a

or SEI you the distributed the is something through reinvest tailwind as buybacks? to shareholders that a quarter, million be So, that would think termination had you is something want business that $XX fee to this accelerated revenue into it

Dennis McGonigle

But allocation our ultimately, a sheet relative one for balance have highly from that's investment a good capital very just and or opportunities to board to mean, – as Al have to strong well Ryan optionality clearly to our gives it's to and that to make perspective. capital have decision I XX:XX a a sheet as balance dividend Board problem liquid relative return.

was So, talk is The of something – one our subsidiaries. actual our business piece signed about. of the that's will board logistics of foreign XX:XX that through but capital

little will So, there's get to bit moved, ultimately on board issue. a before a actually would that address our that which worked of process capital here

Ryan Kenny

Thanks. XX:XX

Operator

Lee comes go with KBW. line Robert next from Please the ahead. question of Our XX:XX

Robert Lee

from should question, we where kind X of remind we level main to a think, Good know afternoon around is my in us taking or kind or million, way of SEI were was continuing trail work how and next kind of the of just called of update my fixture curious initiative that maybe new I Great. was One the X the that at think it's Thanks to others XX:XX permanent you cost of that through year? I more that off out Dennis, question. asked my we most investments the as into already, business, but you think ongoing year million for our should can the everyone. guess

Dennis McGonigle

segment. we a the that I investments forward, project that cost suspect business just investment in down segment as to specific but move new will trail is Yes. would XX:XX reminder, an

some Ryan’s some comments, things So, while and investments One associated trail of to technological down SEI. relative we with particularly may with on, making building would we're on that Based of that XX:XX it there reallocate One ideas have SEI, too. other probably are other spending Ryan, we the

look as segment. there's opportunity much pickup So, XX:XX a it to expense big our things at as I our base. add to that wouldn't in as for asset continuing on So, ability

are and part that's segment. of we in cloud, example, For investing that

We with working investing in are Snowflake. the data space

is with in that associated cost segment. the work So that

businesses of our our enhancing over our So, our if these learning, that enhancing think all most will we time. not company are the additional of benefit businesses, abilities R&D projects level, at

Robert Lee

That’s Great. I you. XX:XX Thank had. all

Dennis McGonigle

welcome. You're XX:XX

Operator

final line Michael Young Securities. Please in time the Truist And we queue from question of go ahead. have at this XX:XX with the comes

Michael Young

questions. you're I'm kind legacy sort of I And expect done, thinking you and thank of SEI. or larger the but of legacy become yet potentially much a we leverage of and balance way of how we a magnitude investors. for getting of doing Hey, M&A changed XX:XX or like rolling going of things of sort I'm curious, long-term Any is more shifts be this taking have to just sort that, of strategic what question way of should the more business any to not the the expect change? just given Al it's on new sort of marginal goals and this a table of out kind wholesale a of the is anything Ryan, understand aggressive? thoughts Is or option forward? sheet an more review from can are lot

Al West

and of rest I'd there change lot feel should to – say leave I'll that I that XX:XX be the of a Ryan.

Ryan Hicke

I of XX:XX I it's a doing. think agree review don't wholesale Michael. with Al, we're what

be lot a it's that and have continue But that. work assets well. of change we're through things and marginal really to do going strong We really to we going to not

tremendous ahead that advantage a take and opportunity. have expect us opportunity of of to we We

going change. So, that's require to

Michael Young

opportunity that feel kind follow-up, you just you experience, play a the you international you been and conversation of with this is made to kind as And where selected role, kind Okay. could XX:XX position just reason and there is lot had talk set international take the a now you it's why, the mentioned a about uniquely board in? of were is the what ahead of like piece that qualified the to going for

Ryan Hicke

XX:XX earlier. Yeah, mentioned that I mean, Al

So, here. footprint put kind think at proud culture there, a businesses, to was environment other that really we're creating over of my when you really kind our that SEI the look trying is it together and part it of of starting around of time of and also an with on the international, imprint folks I new lot

we or that some and cases some in XXXX new we that's you back that I can value just capabilities to XX:XX [XXXX] that market, many alongside and we actually the there of it different had of it Michael, markets global be U.S. highly leveraging culture. between that here, growing something things [ph] think the expand in lot starting being businesses exposure a especially ways started our around the at looking combination, and domestic businesses really that right than really so the was those when could we the So, would was bring opportunities but do of experience a We’re growth here.

Michael Young

much. very Thanks Okay. XX:XX

Ryan Hicke

XX:XX Thank you.

Operator

at questions have this in And we XX:XX further time. queue no

Dennis McGonigle

statements. our Uncertainties are like that make statements your to any have may our the differ appear response to we XX:XX to remind forward-looking We earnings actual today's presentation refer forward-looking notices risks. today's our materially. to to Please release certain of that filings to not our statements during and with update we'll that and questions, results forward-looking in subject and We in in do SEC. regarding you undertake would cause that

to I'd like Al the it Now, turn to over Chiaradonna? Al. other

Al Chiaradonna

Alright. Thanks Dennis. everyone. afternoon, Good XX:XX

as was of totaled $XXX.X $XX.X which from first revenues quarter, million, to First revenues quarter up XXXX XXXX. the million compared

quarterly profit was XXXX. $XX.X quarter million of quarter $XX.X first First million of up XXXX the from

Miami, revenues turning from which million quarter, agreement XX:XX processing signed Bank’s XX with net I continued revenues. represents the XX:XX the million quarter sales is During running Grove million, and on mentioned related Trust, revenues X.X selection mentioned, activity during profits currently to the to XX XX:XX to profit. for X.X the space. one-time We one events, call, during been recurring XXXX. Bank As agreements signed Dennis in that to and an excluding As of filed platforms subsidiary closed we of of to its Private success million termination in SWP Last fee we've the the the Grove contracted in & of cancellation respect clients we with an Florida terminated quarter, million benefited bank with In we X.X solution, the disclosing net a investment two headquartered convenience. month, approximately of last HSBC with competitor note. working community of one-time HSBC. our HSBC address related their changing Bank was SWP business in X-K needs that UK

alternative processing that on the discussed space sale of business fourth also We call, with quarter new and HSBC.

is outgrow announce Pacific migrated XX:XX with business pleased wealth relationships. our to is goals. forward principal adjustments that complex two installed our for processing HSBC partners relationship grow the mentioned, ability to the complex to new wealth of $XX.X changing to activity. and quarter, turning business total and their environments the from SWP platform. look a first clients our continuing Our XXXX Advisors, most will headquartered We're of business by SWP additional in we Central XX:XX competitor Pacific HSBC our management its SEI Financial installed also backlog, work [sign] strategic an also We from global implementation Court, competitor an the expanding business the of also and management firm Financial adopting during quarter, creates backlog Central change serve recurring we we the new U.S. million and Tompkins installed its XX:XX revenue, client signings demonstrates SWP environment XX:XX and the approximately a from platform. asset platform. update quarter, to clients. TRUST XX:XX large to ever help and SEI agreement. our converted with This that products trust just competitor Financial management Hawaii Investment to management move to implementations and has evolving in relationship our clients relationships help subsidiary impact sign our with further in Principal a Platform. to wealth our new to primary migrated the their agreement including Pacific most to distribution industry. platforms Bank retirement, but Group's As to opportunity to their in our market processing And one successfully successfully platform. netting book and as clients, with and SEI’s business Wealth TRUST XXXX The our Also, [ph], I with Tompkins successfully the net In institutional, Corporation not in Central on XX:XX Financial investment of canceled respond

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

of first Our approximately million. cash was the quarter positive flow a XXXX for XXX

concludes We I any prepared now focused our excited global matriculating talented XXXX, you optimistic. strategy that a We improving remarks, and growth. and through over my profits the we our backlog, committed XX:XX to turn have. go to sustainable questions investing it associated create pipeline have of backlog, a remain will that building in is XX:XX team goals. SEI we to across remain and prudently operating these That As and may gradually as businesses on

Operator

the from XX:XX [Operator Instructions] Ryan with Kenny Stanley. Morgan go Please Our line first of will come ahead.

Ryan Kenny

good Hi, afternoon. XX:XX

Al Chiaradonna

XX:XX Ryan. Good afternoon,

Ryan Kenny

that wealth know I announced a super of does talking understand So, seem like on was years you're players few regional in services, working but global on still the XX:XX to the ago, are mid-sized and are bring a about with it lot a SEI more HSBC camp. several domestic new more lot investing wins

you to the question global be from shift any outside the think sweet is, guess invest more more view that attract more regional players more to on need to do I there's do at So, institutions seems the you super to or least mid-size spot. focus your that or of strategic

Al Chiaradonna

parts. I'll question. take in it great two Ryan, XX:XX

the I think have success we So, some to on continue global side.

the of So, about alternative that of talked quarter HSBC. for in piece platform and fourth we XXXX, [indiscernible] a

some discussed our global of think, talent. So, investment strategies. wins were I processing U.S. I the when sales globally. you the in a outside think also our UK to and managing that about be then expansion, the to the to really a anyway side tax, on really big reinvesting different but ingredient to how related XX:XX been complexities that's and think being regulatory, comment limited on it's we established call, We success we sales I a there, going in And in saw that's some there. culture to And

by we're back. at to global now the dialing to try personnel of we investment that part, looking see Ryan other the of delivering. organic expand that The So, growth so we'll other in part kind mentioned, I in I'm sorry. environment? this right And be as to then, your XX:XX IP continue think can our is question, don't Ryan,

You correct. are

represents probably the some sell last the mature having success the quarters, can over and one in We bank the are we quickest and and regional the and space install solution most two community that good fastest.

observation. a that's fair think I So,

Ryan Kenny

XX:XX Thanks.

Al Chiaradonna

XX:XX Yes.

Of course.

Ryan Kenny

on follow-up there lost loss expense there? are the HSBC to offset one revenue just then any contract, And XX:XX

Al Chiaradonna

mentioned, XX. the Dennis As XX:XX was the impact XX, XX of the

million X about that. So there of was

leveraging. we other the that, Beyond we invested that would be stuff

out really that. of there's expense no So, other left

Ryan Kenny

you. Thank it. got Okay, XX:XX

Al Chiaradonna

pleasure. My Sure. XX:XX

Operator

go line Owen will ahead. the Lau Please XX:XX Oppenheimer. with of Next question from come

Owen Lau

XX:XX Thank you.

if drove going that? that of just impact Thanks. cost looks remind like forward, I should can if what may you we expense, bit The a I have And margin has how but exclude margin little from come the down million, one-time decline? fee, Private is there $X kind it HSBC that. termination like mentioned sorry, the revenue any, So, think missed about and you me, also think you Banking

Al Chiaradonna

XX:XX Yes.

So, Owen thanks the question. for

I to first related margin quarter. question in think your the was deterioration slight the

net If candidly, two fee cancellation drove you out quite was and really one the things that that HSBC the from capital markets.

retain So, we saw Dennis asset in of pressures the capital and XX business. then some cancellation. mentioned inside in question, related as nothing And talent discussed that release the that is I million, related us I million to else that the really market talent. the second investments to market caused there's of that pressure that our to the our XX:XX have we labor press our make your on and was and seeing XX secondly, And just impact you're net impact margins. side the think to then of that And million XX the think competitive

Of have, XX as that first course, they which and recognize in those begin business, revenue we'll quarter months. begin numbers is implementing the HSBC invest we'll that we as in to to implement XX the other we which in over then install to already

has what nothing related canceled. really there's to else So been

Owen Lau

off outside globally? option still M&A like this the you, and UK it's previous the about is to question, large XX:XX Got expand scale order of the Are in table And that think how it. U.S. related do thanks? consider then to or would you like you follow-up

Dennis McGonigle

is XX:XX Owen, Dennis. this

it any initiative just large we help the in think, much look really expansion, is growth through as banking and driven benefit strategic a of M&A one existing considering. private XX:XX strategic of businesses certainly M&A our and kind hard a which of in in for general specific M&A geographic opportunities positioning a So, as expansion it's of our lenses enhance geographic private M&A, not we is interested around for just take SEI, of be rationale I our would one the how not look at would scale through M&A. corporately acceleration of and can banking, or question is our company and while businesses our were

Owen Lau

XX:XX very Got Thank it. much.

Dennis McGonigle

XX:XX Sure.

Operator

XX:XX Our Robert come next line from KBW. will with of go ahead. the Please Lee question

Robert Lee

afternoon. A Good I questions. question the you. my taking on Thank XX:XX appreciate backlog.

I down I'm converting. that mean, that. which XX.X that backlog of seems recurring. to chunk kind when million for of not in may fairly So, Fargo, I assuming It's think in significant or still Can there’s you was begin it of us? ended Wells maybe be parse terms since open may

So the next today sit or of two you and what converting? expect we where should reasonably backlog convert begin that over years to

Al Chiaradonna

we would converting. XX:XX Robert, question. XX stands remainder thanks that that XX% the today we month about should where of converting. be and for that next The months, the about XX backlog, And of period, then think feel change if the in over XX over the to XX

Your They’ve we in still changes They backlog implement as And the continue to that challenge restructured. the clients. Wells Fargo with was work is M&A. overall take large with biggest have in Fargo, They that just They time. XX:XX leadership clients. yes, comment Wells those on them backlog. have and we jumbo

Robert Lee

bankers? in would regional of, you XX:XX idea of of pattern of to of big the couple where kind is don't and expectation that unless regions of next long reasonably you the and a here those years bigger kind [indiscernible] kind a to I platform community going is scale smaller could kind one like great there along more the a feel And chunky your of take kind of ago we're or to the at today follow-up, on that's kind I reasonable lines is was acceleration maybe you quantity Yeah. the think two you of look community are great see scale for of banks really smaller expect mid-size a of while Kind do the of some is misunderstood, sit the drive or converting of or SunTrust pipeline, the months seems the the and years. bigger wins So, that's and more as and you XX:XX needed I which platform to banks know, time. the more kind get of to, this that true XX

Al Chiaradonna

pipeline, question. XX:XX Robert, think market. the about healthy, the that's When is the I have pipeline good a good activity we in

we going of two are then forward because what have around we trends and leaning as region get to way, in lot I shaping because market to it them, community. We'll are continue every caveat implementation their activity side. than XX:XX to jumbos, banks just is last think predict the our little our predict with the the would no those. sales to not regional land, development of negotiate the ability are and in multi-year by day. time but hard to been by doing you, we has predictable these close it's is, think are I know those time talking themselves calls, A it. discuss wins do to you're takes those but the way, has It's come will SEI’s And that Jumbos in less and that and on They're more community. of pipeline mentioned doing, cycles, it and I they're on not we're to then we'll it. do those we're What actually focused a pipeline on your Robert We active it right. We a [can’t] [ph] Jumbos, takes when land, which they'll in and push continue us. the it's are will integration outsourcing things and community, to been our market. regional installations I in it strictly on driven terms Unfortunately because for same get which driven implement and The those helpful close. are the how off done. just really are XX:XX just them

Robert Lee

backlog the XX:XX subsequent XX to the of ask you're of next apologize kind you, part I Appreciate of given I the the I this the months? but months, XX maybe that. XX% your know And can of just, with comments next second funding over in us

Al Chiaradonna

XXXX of remainder that XX% matriculate that's idea matriculate of what XXXX, across you expect and in like could did could you XXXX next and can your it What said you XX:XX to where Yes. today. give that you was over implementations an the expect to I looks I on those had the I Robert, said, then XX, the three question, years? in me fall think of

Robert Lee

Okay. Thank for you clarifying that. XX:XX Great.

Al Chiaradonna

Yeah, course, my XX:XX pleasure. of

Operator

next question XX:XX Donat Our with Sandler. with comes Chris ahead. Please the line go Piper

Chris Donat

taking some XX:XX of million, do the or the right solely quarter for as that change mostly activities XX.X other more this HSBC or XX.X about of so is the say solely, can I question. my million, at quarter-on-quarter backlog one think and Hey, about the good the difference you to affected quarter, the just but backlog? I Last HSBC, the or Al. afternoon think way backlog. quantified we think I Thanks had

Al Chiaradonna

great a question. Chris, Thanks. XX:XX that's

and I I think I can help clarity. you can some provide

So, first the in yes, it HSBC is, of also talked quarter. it happened the that installations in is is but by affected of course, about it, three I truth the

while was the we're in first because back. we down would So, give drop about would new those – added it significant the it backlog be I of talked And that the delta. we but the sales a you that events HSBC revenue really of affect then combination negatively a large number, be matriculating that, would quarter. it's there that with refilling just XX:XX revenue still and would matriculation amount that So was

Chris Donat

Thanks that's helpful. Okay, XX:XX Al.

Al Chiaradonna

Chris. course, XX:XX Of pleasure, my

Operator

XX:XX of Securities. And question from go the our line Truist will next Michael Young ahead. come Please with

Michael Young

the for Hey thanks XX:XX Al, taking question.

a like for building with or it all we other more there pandemic of be in sales work color equal sort new of activity, back an helpful? implementations uptick is on, more, else the to Just should kind the sounds any of would pipeline that people expect wanted coming to subsiding, to tailwind touch are and

Al Chiaradonna

Yeah, XX:XX Michael, good question.

I been of think kind we've fortunate.

One to of the sales were that predecessor we during to remotely. I channel, completely and our some things about about the we how had able deals pandemic know is think talked my that almost closed digitize do

where level. might to think certain to back to going and bit XX:XX have a These [accelerating] ability people begin willing did XX:XX clients, decisions pipeline. I'm they answer. pandemic. reach making I would So, not be it give down, that I the with throughout some quicker, that. the the client is they what can't but a to I see little down think on that working stood wondering The We tell could been As pipeline but people in I slow of I at you make of the implementations, about decision I you were is same an think don't [ph] level people our because do think bring and So, the people slowed it pandemic.

the as we implementations of the of immediately. went Our pandemic digital year March,

implementations almost So, environment. all fully done remote we our have in of a

your as just are the benefited more Now, have it's level back back what level dramatically weighing it's people we make itself. client improves because I more office, your intimacy is going work. as intimacy I of to and pandemic visits, of you But as and think the gotten change the – don't opportunity us just people into has client and don't and improves think should of manifest visits to think getting the is making I

Michael Young

maybe And then of one, just the lot last inflation. power, XX:XX seeing great. on Okay, pricing a see we're

that of was or bit of all of expect the personnel able terms get, kind think kind that result are of mentioned in a costs, pressure? we upward within offset should of power pricing sort contracts just a impact as on margin core pressure little you inflation I to of, compression to

Al Chiaradonna

will think reaction markets that talked inflation. think in I don't call do dramatic. inside XX:XX be I those don't I labor we I some his, I compression tight, would I about it numbers as mean, so think I it we're I will Dennis to think able know are in think today. the to, have

each it. positively. to think attached a little all to to sustain continue we in our across we improve just term as think deals, hard a think points advance say across general our can I and XX:XX solution, price because it's it I Michael, we'll able But there. price has significant any have succumb our and negotiation I to to pressures it's modify a multi-year a think preserve I don't contract. we'll deal point be probably because to

Michael Young

Thanks. from all That’s Okay, XX:XX me. great.

Al Chiaradonna

XX:XX Okay.

Operator

have further in queue. XX:XX And we no questions

Al Chiaradonna

Phil, pass Thanks. friend, it off XX:XX Okay. all to yours. my Phil. it’s I'll

Phil McCabe

XX:XX everyone. All right. Good Al. Thanks, afternoon,

XX% compared XXXX, $XX.X our quarter higher first to to Profit the quarter XXXX. was of in first as revenues million, For of was for revenue compared $XXX.X the XXXX. quarter the million of first quarter which the X.X% as of higher first totaled

Our segment margin profits hiring labor were expectations. the impacted increased and they increased discussed closer by XX:XX were our Our is XX% expenses margin strong, previously to of in by operations, revenue. offset for

lower sales negative asset had $X.X $X.X XXXX generate billion $XXX.X billion client of end primarily quarter highest billion. and first at to of $XX.X balances of market the market of This to balances net end In first are during the quarter of the the were due activity, we annualized totaling business which approximately ever billion asset party to [ph] fourth events of new Third recurring XXXX. at is than net of with quarter net the turning increase revenues million. XX:XX our the expected XXXX, funding $XX.X $XX.X quarter of [depreciation] million,

a self-administered equity of collective include, re-contracted alternative signed in from managers, multi-billion competitor. unit, start-ups, and a of the CIT the record addition, our market by largest provide the for win one Our administration other party new sales in assets. events based services make the cross-sell the sales was large market recurring unit firms. clients. quarter, fund selected highlighted to industry. names trust ranging existing also to resonate revenue. will on firm from in our of these $X This outsourcing One number to third leading collective SEI and robust a XX:XX trust to provider industry in our SEI million takeaway conversions global and we In continues $X.X private strategy XX:XX we Highlights traditional was propelled of the

in and business with At many product to another about expand equity, clients primarily forward. backlog existing Europe, That path remain delivery. strong million. questions So, first sales, the share XX:XX debt implementation continued of prepared we other $XX.X businesses, clients. cross-sells the sold quarter concludes prospects new and continue through quarter, I private growth XX:XX In XX:XX turn our to end it private our all business solid my of of may clients. have. across existing with business any We at with added with summary, will ETF, backlog, lines client optimistic wallet unfunded now our over new remarks, excited expanded and you also our our in record and and for We the stands had

Operator

in one no at have We Instructions] queue time. [Operator this XX:XX

Phil McCabe

and with XX:XX guess you. Al Thank very All right. XX:XX yourself you out Ryan. Thank I much. you talked Okay.

the have on we Segment. the with up, update Next Advisor Wayne Withrow

Wayne Withrow

targeted Phil. for at of In XXXX, Thanks, first futures quarter XX:XX we roadmap great clients. continued our the of building our execution

pillars our in the by the the of following. Some on were of display highlighted strategies first quarter

explaining] by our factor. and investments positive platform tight schedule. integration were due grow [ph] into in process increased Numerical external reflected a continues liquidity and XX:XX contributing of were These fee growth this shift to of sales of both to XX:XX some as personnel our increase. named are cash QX release. curated in capital up press XXXX client positive range in we Investments orange fees, a platform partially basis our reduction [Color and personalization a small demand facing our in results fee continued the from the year financial digital the [ph]. offset in SEI, powered the continues technology also in The for by Continued revenues over to some others First flow. XXXX, orange of products XX increases including to advisor and our sales markets the new of Expenses take rollout to comparisons new also quarter due investment and technology comparisons offerings Like yield sales to on from included QX a a veteran. XX:XX of labor grow. are include: net And executive those costs, margins. markets strategies in rate. internal to that decline our [factors] the were will Direct sub collaboration point evolve, lower at XX:XX

advisors flow. During firms. advisory in the total XX existing In positive billion we XX:XX asset reengaged into $X we managed cash quarter, Of $X.X was billion had recruited this new programs. our and XX net nearly QX,

activity. continue year this to and from Our our advisors XX:XX validating advisors seen producing sales many some reengaged last active. cash decision focus to new advice the as of reengaged have year our remain of of flow pipeline We this direct

the and in-person for great to clients. components continue of building our the To XXXX, into XX:XX enhance continue our areas facing will we both components. Second, we focused focus platform. be: industry all process, end, sales an leading, digital multi-channel our futures to will As client First, incorporating on of goal of creation this

focus on global good Third, you continued an markets and we may enable mass RIA I now questions have. and investment uncertain progress, pure And the fourth, even personalization. dynamics. offerings well-positioned make evolution are any enhanced welcome continue our of believe XX:XX I We with to XX:XX to channel.

Operator

Robert with question [Operator will Our come Please XX:XX first from Instructions] the line Lee of ahead. KBW. go

Robert Lee

XX:XX Thanks. you are Good Wayne. afternoon, doing? How

Wayne Withrow

Rob. Good, XX:XX

Robert Lee

guess, Quick Good. I on, question expenses. XX:XX

be and of and obviously in So, the kind could is we not a through think I new sure mid-XX kind work it’s else to the up steps course to more from? is around extent? mean, want presumably had it the other double-check, expense make should past what do pressure of the And the anything some an think dramatically but level, base just but COVID, I we – in really similar that? was but increased to of that been I'm is transitory kind there's maybe and where quarter, right range travel there wage fourth from year of we pretty with things not move a of ago inflation whatnot

Wayne Withrow

hearing ask having I'm XX:XX trouble Can I you to – you.

Robert Lee

I'll forward? the if somewhat think or fall-in million new I a see spending XX really of to think try the quarters trying I'm reason is go expense moderate any ongoing better or couple of that should as a maybe levels, that's – expense a we there last could just is there somewhat Okay. kind anything the XX:XX this view, as is transitory to trying you pace the initiatives been in pace get on being of just

Wayne Withrow

Yes. XX:XX

the the comments managed the I we to investment we sell are element is internally is the go advisory line net sub think expenses, fees we such some appear of expense I numbers, think by is funds, you major to that accounts in XX:XX this in advisory about to a A mutual offerings. item. or as accounting need of expenses talk us advised advisory mind here be one revenue item the more the P&L of separate someone else. keep it of number shift so embedded revenue about at sub sub our The a whether the lot as when a

is growth So, not growth because it's revenue net Will number not also – contain will be those the reflective. revenue expense of expenses.

of. I item to So, biggest I think that's aware be the need we think

Robert Lee

also Also XX:XX a curious, Fair more as progressed, volatile just the negative so got and more enough. curious, in just quarter things way. obviously

pulled So, starting some kind all? business any impact, of it as the you've movement are besides your maybe if like kind that to that back, you started pattern of of you new seeing think people color about at see you you through business quarter actively new anything have, trends, as cash got the

Wayne Withrow

going that think our and trend we had advisors the also growth I we quarter – to flow, sales your Yes. And are, to mean, experiencing I very we're with think think That's I I we a in a mean, [ph]. continue. at mean, sales I look positive I if had, [advisor the strong question. a if XX:XX on think quarter] existing is I activity cash when too. we that question? strong. think is I sale, I of is good your think question I very had our think that quarter, [Indiscernible] new I lot is

Robert Lee

coming [ph]? it's the really phone, apologies. guess through bit] are so March quarter, April, clearly you pattern the challenging more moderate through XX:XX cell and mean, activity that or thinking was more seeing kind my maybe got you apologize I the on the as volatile But through Yeah. I I into of [change got not the as environment I of taste a

Wayne Withrow

XX:XX Yes.

I of flow. Ukrainian kind the, and interest I war saw the through lot I think I and market the of the inflation that rate we that sort shock, that look think mean, we at go then think them, a impacted the

what's them. for going stabilize going But I to to it's to kind me hard predict of happen. think that's

Robert Lee

Thanks Apologize [indiscernible] XX:XX Thank Fair you. so the for enough. question. Okay. much.

Wayne Withrow

worries. XX:XX No

Operator

up, XX:XX Young have Truist had just line the comes with one we that go queue Michael of And from – Please we ahead. Securities.

Michael Young

XX:XX question. for taking Hey, thanks the

think kind segment place, ask, know when competitor that the a the take was and of that that of specifically? impact way lot lately through industry, Just your how curious, guys in you could kind space, I any a there's you TAM just hands. business wanted been benefit of seen a in to changing is to potentially potentially to historically about news you’ve maybe

Wayne Withrow

a XX:XX to about is than rather benefit detriment. Well, – it a talk it or can

kind of that to anytime opportunity. disruption, – emotion. this at to and an like look of money emotion disruption we we call our it's kind it's job think money I And that any

So what our to But job don't will I figure of that out. kind know. is happen?

Michael Young

XX:XX I any put mean, happen where Okay. expect together, marketing so emotions Do is money guys something do ramp, there that speak? kind usually you you any we should special to of or to efforts if like were

Wayne Withrow

about really XX:XX tactics I To be them. talking comfortable sales honest, I'm do before not

Michael Young

Okay. XX:XX Alright, fair enough.

Wayne Withrow

XX:XX For obvious reasons.

Michael Young

Understood. XX:XX

Wayne Withrow

else everybody XX:XX when does. find You'll out

Operator

XX:XX questions queue And time. we have in this at no further

Wayne Withrow

I it Thank right. to very now over XX:XX much. turn you Paul. will All

Paul Klauder

for XX:XX first afternoon, I'm the going XXXX. results of quarter financial Wayne. to the Thanks, discuss Good everyone.

first XXXX. Novus to negative first Gross quarter were compared Operating quarter totaled XX:XX the XX%. Operating was quarter billion First of negatively from reflect revenue by balances OCIO to by compared billion. of of decrease for XXXX XXXX and versus Operating amortization increase quarter of profit for XX.X was operating and a X net impacted losses sales quarter Revenue This decreased Atlas XXXX. million contribution and the higher billion. by billion full revenue net and XXX $X.X due first XX.X XX:XX first losses. expenses offset margin expenses. client client million a quarter events X.X compensation the Quarter-end and increased first asset X% quarter net Atlas million quarter X% client profits driven was from for the of sales was were losses. XXXX. and of Novus the the $XX.X to

diversified healthcare. UK a a The foundations, very Novus into health for a has rebids, termination, were and quarter. new sales longstanding a merger the large client fiduciary DB client XX:XX due and in sales endowment new three client unsuccessful U.S. quarter systems. of management First the across SEI were quarter losses healthcare and predominantly to

to marketplace gross is provide XXX sales quarter-end rebids client see client unfunded continue near-term XX:XX OCIO We of very These million. The backlog was as revisit at competitive. headwinds. the

stabilizing year, new and solution, XX:XX OCIO I'm and the Thank very UK any you we you to are and distinguishing For that enhanced happy powered much on ECIO questions selling entertain have. focused OCIO our client master our base, relationships, SEI our by trust proposition Novus. selling

Operator

Our come Kenny, ahead. Ryan XX:XX will Please first from Instructions] Morgan Stanley. go [Operator

Ryan Kenny

good Hi, afternoon. XX:XX

Paul Klauder

XX:XX Hi, Ryan.

Ryan Kenny

ten if At XX:XX outlook yield is update the on the your for how of you year, wondering and end material now it's current last at I'm us approaching could three. business. interest X.X% the rate year quickly was

translates do impact think that you does an that funding your of status and just So, revenues? BD wondering how the how of big impact to plans

Paul Klauder

relates It have relationships. XX:XX Yes. That to a revenues. revenues the for fee impact really we because that segregated doesn't OCIO our much

Now have on are up that of with their a have with seen defined said, to benefit status. the tick respect close termination to With funded clients of a status, funded we bit path Ryan, regard most that a to a plan, or made little decision fixed part with portfolio. come the down assets income. interest there come to also up, or the duration fees most of know, are part as of the as So, the because go the XX:XX down is rates portfolio the assets we liabilities but [indiscernible] long the

wherewithal funded see XX:XX which play that why to want production and not are, was why to kind comes what that. still the They when you might part is do hasn't between which is into it curtail materially out company to down, the has go the is strategy. LDI liabilities changed cash do the So, a a the portfolio, really whether of rates of want deficit close assets it it. are. So, status, the really where have where We most

rising. it's really even think don't interest changed position dramatically though that So, with rate the I

Ryan Kenny

XX:XX helpful. Thanks. That's

Paul Klauder

Thank you. XX:XX

Operator

to XX:XX with go ahead. Please Robert Next, KBW. Lee go we'll

Robert Lee

thanks. XX:XX Great,

quick real Just Paul. question

I and repeated, what the think apologize I in having new the fundings client net just missed quarter I just but missed were it.

Paul Klauder

Yeah. XX:XX

me XXX look the Robert, million, were the so billion, a were bad losses the but was X.X really You're making gross sales negative net billion. here, X

Robert Lee

changing at quickly, increased trying real about on on obviously you OCIO maybe away it, And that, we Thanks. market competition today, of but the sense compete XX:XX that's any way maybe the, the I competitive the signs you're some too maybe Okay. to it of kind any just the dynamic, competitive you but players updated if in weakness changing and given in talked to just smaller to know volatility environment? of fewer the look that just diversify get environment, touched it's market of competitive an resource trying from early,

Paul Klauder

XX:XX large of number a competitors. Sure. still I mean, it's

really, lower of what billion, are look the the transparency, scale OCIO would they OCIO will under firm ones, also transaction messaged on of have safely XX think Some showing XX versus the less the be to a going its deals, using ECIO are solution beauties term us OCIO management. I've very We the think its to capability early clients not XX:XX reporting which we investments. in which more very as powering been is ways and other that but in showcasing Top analytics OCIO there's us. advanced has are a Novus unbelievable days the especially that only One before, and technology sophisticated clients. to the far We're point advanced firms. already on detailed large. competitive important these strain in differentiated of us two differentiation size is as of we may front, to OCIO through their assets diversify Novus we're That leverage, as think more on very more benefit So not get as larger that as transaction some and capability of of [indiscernible] XX:XX our addition the ones ECIO

Robert Lee

questions. XX:XX you my Thanks taking Great.

Paul Klauder

XX:XX No problem, Robert.

Operator

XX:XX in And queue. questions further have no we

Paul Klauder

Al back I'd West. over call to turn Great. XX:XX like to the

Al West

and for you. me your I'll SEI. to. as you want I role my thank Chairman, forward And call, for [indiscernible] XX:XX XX I quarterly job. you see have we're XX:XX new a good XXXX, A So, going to Enough to years in visit a Since it’s on and and our I quarterly Thank have day. some gentlemen, enough. do [indiscernible]. been look all times. ladies involved a for of excited [XXXth] XXX to ago, total analyst [ph] great Ryan And Executive And is is call. going about public me, attending

Operator

XX:XX thank like Ladies I'd and for does gentlemen, that conclude conference. today's you participation. to your

You may now disconnect.

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