SEI Investments Company (NASDAQ: SEIC) Investor Presentation December 31, 2015

Transcription

1 SEI Investments Company (NASDAQ: SEIC) Investor Presentation December 31,

2 SEI SEI is a leading global provider of asset management, investment processing and investment operations solutions. We help professional wealth managers, institutional investors, investment management firms, and private investors create and manage wealth and enable their long term success by providing solutions that are both innovative and comprehensive. 48 years as a leading innovator and outsourcer in the wealth management industry 2,985 Employees in 8 nations* 8,172 Client relationships* $670b Assets under management or administration* *As of December 31, 2015, through its subsidiaries and partnerships in which the company has a significant interest, SEI manages or administers $670b in mutual fund and pooled or separately managed assets, including $262b in assets under management and $408b in client assets under administration. Client and employee statistics as of December 31,

3 SEI representative clients Representative clients are selected by SEI to illustrate a sampling of SEI s client base as of December 31, 2015, but may not necessarily endorse all of the services provided by SEI.. All trademarks or services are property of their respective owners. 3

4 SEI markets & businesses Serving two related markets Wealth Holders Individuals Institutions Wealth Services Providers Distributors Manufacturers Through five business units Private Banks Investment Advisors Institutional Investors Investment Managers New Businesses (ultra HNW) 4

5 SEI wealth management enterprise platforms Three Core Competencies Investment Management Investment Processing Investment Operations Platforms Wealth Management Individuals Institutions Business Process Outsourcing Distributors Manufacturers 5

6 SEI financial highlights Net income attributable to SEI ($m) $205 $207 $288 $319 $332 Revenue ($m) $1,266 $1,334 $1,126 $930 $993 $257 Net cash from operating activities ($m) $257 $351 $375 $ Return of capital to shareowners ($m) SEIC appreciation as of Feb 19, Dividends paid Stock purchases year (14%) 5 years 60% 10 years 76% Since IPO 19,500% (1981)

7 SEI: a history of innovation and market expansion Innovations Trust System Invest idle cash balances Asset allocation Manager of Managers Fee-based advisor Platform Back-office processing Globalization Advice & goal-based investing Integrated pension & finance Total operations outsourcing SEI Wealth Platform SM Solutions Investment Processing Services Investment Management Services Investment + + Operations = Services SEI Wealth Services Markets Banks Investment Managers Advisors IWA s Institutional Investors Regions United States Canada UK EMEA, Asia

8 SEI today: segments and target markets Banks Global banks U.S. national and regional banks; large community banks Non-bank private wealth managers and asset management distributors globally Advisors Institutional Investors U.S. registered investment advisors Financial planners Broker/dealers Global and U.S. corporations and retirement plans (DB & DC) U.S. hospitals and healthcare organizations Foundations, endowments and not-for-profit organizations U.S. municipalities and public pension plans Investment Managers Global hedge fund and private equity managers Traditional money managers 8

9 SEI today: global presence and services offered Canada Institutional/HNW asset management Europe United Kingdom Bank/advisory investment processing Institutional/HNW asset mgt. Netherlands Institutional asset mgt. United States Bank/advisory investment processing Institutional/HNW asset mgt. Investment manager operations/fund processing Middle East United Arab Emirates Institutional asset mgt. East Asia Hong Kong Institutional/HNW asset mgt. Major Operations Centers: Oaks, PA, United States London, United Kingdom Dublin, Ireland South Africa Institutional asset mgt. 9

10 SEI today: differentiated solutions current investments Private Banks Investment Advisors SEI Wealth Platform Software-as-a-Service Operating scale Front-office Asset management distribution Turn-key asset management platforms Expanded distribution SEI Wealth Platform expands addressable markets: Flexible TAMP Institutional Investors Fiduciary management for pension plans New markets; Defined Contribution Investment Managers Total Operational Outsourcing platform Ongoing enhancements to serve larger clients and expand addressable markets Investments in New Businesses Ultra-high-net-worth market Goal Investor Middle East 10

11 Research and Development $150m R & D as a percent of revenue 12.8% 8.0% 8.2% 7.8% 7.7% $100M $50m Research and development expenditures Capitalized software development costs Research and development expenditures as a percent of revenues 11

12 SEI business model Organic Growth Focus on emerging client needs Deliver enterprise platforms Selective acquisitions Client Relationships Forge strategic and intimate client relationships Be a thought-leader Win-win pricing models Financial Strength Focus on sustainable growth in earnings-per-share Generate recurring revenue & predictable cash flows Maintain strong balance sheet Return capital: dividends and stock buy-backs Innovation Long-term focus Foster collaborative, innovative culture Fail fast and learn from mistakes 12

13 SEI competitive advantages Market Leadership SEI recognized as an industry leader and innovator Large and diverse client base Facilitates new business and cross-sale success Complete Strategies Strategies well-developed and coordinated Current economic climate reinforces value propositions Continuous research & development Differentiated Solutions Create new categories of solutions Solve large business issues in support of clients objectives Integrate advice, investments, technology & operations 13

14 SEI Platform Overviews and additional information 14

15 Private Banks solution SEI Wealth Platform SM ASSET MANAGEMENT End-client website End-client statements Tax reporting Confirms/advices INVESTMENT PROCESSING SERVICES Asset services, cash management, corporate actions, custody, reconcilement, settlement, fee & tax processing END CLIENT 360º view of relationships Prospect management Dashboards & reporting Portfolio planning & proposals Alerts & monitoring Tasks & activities BUSINESS MANAGEMENT SERVICES MI reporting, SLA/KPI tracking, audit reporting, data integration, document management, professional services INFRASTRUCTURE SERVICES Business continuity, hosting, information security, release management, production services, system system administration administration WEALTH ADMINISTRATION Multi-level risk analysis & reporting Consolidated portfolio analysis & reporting Stress testing WEALTH ADVISORY Portfolio structure Manager research and selection Dynamic asset management 15

16 Investment Advisors solution Flexible turnkey asset management platform Solution category Traditional turn-key asset management platform Flexible turn-key asset management platform SEI Wealth Platform Open Custody Platform Do-It-Yourself Capabilities Full custody platform with middle office Full custody platform with middle office Full custody platform Single system architecture Single system architecture with extendable integration Advisor purchased component technology Limited front/middle office technologies SEI investment program Integrated front/middle office technologies with workflow Full range of investment products and securities Front/middle office supermarket technologies without workflow Investment supermarket Market Firm Size $5m - $250m $251m - $3b DIY $3b+ Total Firms 11,526 2, ,774 Advisors 85,680 14,518 3, ,465 Assets $1.13T $1.48T $1.50T $4.11T Sources: Matt McGinness, Best Practice Research; Dennis Gallant, GDC Research. As of September

17 Institutional Investors solution Fiduciary Management Strategic Advice Goal setting & monitoring Asset / liability study Investment policy formulation Investment Management Portfolio structure Manager research & selection Dynamic asset management Risk Management & Monitoring Multi-level risk analysis & reporting Consolidated portfolio analysis & reporting Stress testing Active Liability Driven Investing (LDI) Active management relative to liabilities Glidepath optimization - Capital market point of view Goals-based Reporting Reconciliation of funded status Pension surplus decomposition Attribution of interest rate changes 17

18 Investment Managers solution Total Operational Outsourcing Platform Flexible, integrated handling of: Investment operations Fund operations Fund Administration Fund Accounting Investment Operations / Middle Office Regulatory and Compliance Best-of-breed Technology Engines Risk Management Information Management Workflow/Process Management Distribution services Data aggregation Dashboards - Manager - Investor Risk Management Analytics Regulatory and Compliance 18

19 Forward Looking Statements This presentation may include "forward-looking statements," and discussions about future operations, strategies and financial results. Future revenues and income could differ from expected results. We have no obligation to publicly update or correct any statements herein as a result of future developments. You should refer to our periodic SEC filings for a description of various risks and uncertainties that could affect our future financial results. 19

20 Thank you 20