SEI Investments Company · NASDAQ:SEIC
SEI Investments — Investor Day (November 2019)
114 slides from SEI Investments's investor day presentation, Nov 12, 2019
Slide 1: 2019 Investor Conference
By 2019 Investor Conference November 12-13, 2019
Slide 2: Welcome
Welcome Dennis McGonigle
Slide 3: ONE SEI is a mindset and business strategy
THEME ONE SEI is a… Mindset Business strategy It is not a platform.
Slide 4: Agenda
Strategy AGENDA Al West, Chairman & CEO UNLOCKING THE POWER OF SEI: KEY THEMES AND PLATFORM UPDATES One SEI Business Technology Strategy Jim Warren and Rob Wrzesniewski New Platform: Global Regulatory Compliance (GRC) Phil Masterson New Platform: SEI IT Services Ryan Hicke Advice and Customization K
Slide 5: Agenda: Segment Updates
GROWTH STRATEGY AND FOCUS: SEGMENT UPDATES AGENDA Private Banks, Investment Managers CONTINUED Steve Meyer Investment Advisors Wayne Withrow Institutional Investors Paul Klauder Panel Discussion Dennis McGonigle Luncheon and Optional Tours
Slide 6: Strategy
New ways. New wi SEL new ance lew answers.
Slide 7: Introduction: Who We Are
Introduction Who We Are (reminder) › We are a technology company with a wealth management competency › We are an outsourcer › We are an innovator › We apply a proven business model Strategy › Execute existing strategy › Turn headwinds into tailwinds › Leverage our assets › Transform with One SEI str
Slide 8: Who We Are (reminder)
ONE SEI Who We Are (reminder)
Slide 9: We are a technology firm with a core competency in wealth management
WHO WE ARE We are a technology firm with a core competency in wealth management Scratch us – we bleed technology and its application. Everything we do involves technology. ©2019 SEI 9
Slide 10: We are an outsourcer
WHO WE ARE We are an outsourcer Since 1971 We’ll do the heavy-lifting for our clients. Allows them to focus on mission-critical issues ©2019 SEI 10
Slide 11: We are an innovator: heavy investment in innovation
WHO WE ARE We are an innovator: We invest heavily in innovation to grow our businesses We invest 10% of our revenues in R&D. We did not pull back our rate of investment in the 2007–2009 period. ©2019 SEI 11
Slide 12: We are an innovator: history of innovation and disruption
WHO WE ARE We are an innovator: We have a history of innovation and disruption › Trust System › Invest idle cash › Manager of Managers › Goals-based investing Innovations balances › Fee-based advisor › OCIO & fiduciary management › Asset allocation Platform › Total operations outsourcing › Back-offi
Slide 13: We have a proven business model
WE APPLY A PROVEN BUSINESS MODEL We have a proven business model ©2019 SEI 13
Slide 14: Recurring revenue, strong cash flow and long-term relationships
WE APPLY A PROVEN BUSINESS MODEL Recurring revenue, strong cash flow and long-term relationships with clients and employees* 97% of revenues are recurring. Free cash flow of $476 million or $3.52 per share in 2018 Some clients have been with us over 40 years; 415 employees have been with us for 20 y
Slide 15: Uniquely positioned in the financial services ecosystem
WE APPLY A PROVEN BUSINESS MODEL We are uniquely positioned in the financial services ecosystem Creates unique possibilities for innovation and learning ©2019 SEI 15
Slide 16: 2004 SEI business life cycle
WE APPLY A PROVEN BUSINESS MODEL 2004 SEI business life cycle ©2019 SEI 16
Slide 17: 2019 SEI business life cycle
WE APPLY A PROVEN BUSINESS MODEL 2019 SEI business life cycle ©2019 SEI 17
Slide 18: Dynamic culture as foundation of mission
WE APPLY A PROVEN BUSINESS MODEL We have a dynamic culture that is the foundation of our mission to help clients succeed Culture drives innovation. Space demonstrates our culture. Successfully attracts and retains talent ©2019 SEI 18
Slide 19: Strategy
Strategy
Slide 20: Continue executing our strategy
OUR STRATEGY Continue executing our strategy ©2019 SEI 20
Slide 21: Apply advanced technologies and investment tools
OUR STRATEGY Apply advanced technologies and investment tools Technology Investments › Artificial Intelligence › Direct indexing › APIs › Factor-based investing › Blockchain › Overlays (e.g., tax & ESG) › Cloud › Alternatives › Cybersecurity › Data Analytics › Robotics › Front-end technologies › Inf
Slide 22: Confront headwinds
OUR STRATEGY Confront headwinds Stronger regulatory landscape worldwide Rising cost and complexity of managing information technology (IT) Increasing fee pressure ©2019 SEI 22
Slide 23: Turning headwinds into new and existing businesses
OUR STRATEGY Turning headwinds into new (and existing) businesses SEI is building a global business, GRC, which provides a technology- enabled solution to help clients manage a wide range of regulations. We also recently launched SEI IT Services, which outsources a variety of IT services to banks an
Slide 24: Leverage our assets
OUR STRATEGY Leverage our assets We craft new client offerings from the things we do very well. The result is high-quality services that can can be built fast-to- market and with scale. Recent examples: GRC and SEI IT Services ©2019 SEI 24
Slide 25: Leverage our assets
OUR STRATEGY Leverage our assets We are often a client of our own platforms. As a result, we anticipate our clients’ needs. Recent examples: SEI Wealth Platform (SWP), Investment Manager Services, SEI IT Services, GRC and many more ©2019 SEI 25
Slide 26: Transform with One SEI strategy
OUR ENHANCED STRATEGY Transform with One SEI strategy Our strategy is to make all platforms open to all other platforms. We call this strategy “One SEI.” It’s also the theme of this conference. ©2019 SEI 26
Slide 27: Transform with One SEI strategy
OUR ENHANCED STRATEGY Transform with One SEI strategy SEI has a multitude of assets – most created for single markets. One SEI will unlock the power and potential of all of SEI’s assets. This allows us to view clients and markets at a broader enterprise level. ©2019 SEI 27
Slide 28: Results!
Results!
Slide 29: Business model and strategy benefit long-term investors
RESULTS! SEI’s business model and strategy benefit long-term investors* We return substantial capital each year to shareholders through dividends and stock buybacks. Return of capital in the last 5 years is over $2 billion. Shares outstanding were reduced by 17 million shares in the last 5 years. *P
Slide 30: Gross growth in stock price since going public in 1981
RESULTS! SEI’s business model and strategy benefit long-term investors* SEI’s gross growth in stock price since going public in 1981 40,776% NASDAQ Composite growth in index over the same period of 1981 – 2019 4,819% S&P 500 gross growth in index over the same period of 1981 – 2019 5,923% Daily cumu
Slide 31: Summary
Summary Who We Are (reminder) › We are a technology company with a wealth management competency › We are an outsourcer › We are an innovator › We apply a proven business model Strategy › Execute existing strategy › Turn headwinds into tailwinds › Leverage our assets › Transform with One SEI strategy
Slide 32: One SEI Business Technology Strategy
One SEI Business Technology Strategy Jim Warren
Slide 33: One SEI is a platform and technology strategy
ONE SEI Take down the walls between our platforms, enabling delivery of SEI’s capabilities to all markets › One SEI is NOT a separate platform. › It is a platform and technology strategy. › A singular, SEI-based enterprise ecosystem, leveraging: › Existing SEI platforms › Open architecture › Modular
Slide 34: SEI aggregated functionality and services
SEI aggregated functionality and services ©2019 SEI 34
Slide 35: SEI aggregated functionality and services
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • ©2019 SEI 35
Slide 36: One SEI Front-Office Experience
One SEI Front-Office Experience Rob Wrzesniewski
Slide 37: Front office: clients, advisors, investment professionals
F R O N T O F F I C E End Clients Advisors & Wealth Managers Investment Operations Data Integration Professionals • Proposal Creation • Enrollment • Strategy Management • Corporate Actions • Reconciliation • Financial Planning • Administration Services • Rebalancing • Settlement • Fees & Commissions
Slide 38: Integrated Data Architecture
Reporting & Statements Advisor Dashboards Web/Mobile Integrated Data Proposals & IPS Architecture Operational Transparency Strategy Manager ©2019 SEI 38
Slide 39: Unified advisor and investor experience
THE CUSTOMER JOURNEY Unified advisor and investor experience Advisor Wealth Experience & Portfolio End-client Client Reporting & Planning Compliance Management Experience Performance • Goal Planning • Access to Information & • Model Management • End-client Website • Answers “How am I • Investment An
Slide 40: Large super-regional private bank
SWP CASE STUDY Large super-regional private bank Client Profile SEI Service Model › Provides consumer and commercial banking, wealth › Full adoption of SWP services, including proposal generation, management, mortgage and insurance products and services to onboarding, advisor experience, portfolio m
Slide 41: Independent Advisor Solutions
SWP CASE STUDY Independent Advisor Solutions Client Profile SEI Service Model › 7,400 Independent Registered Investment Advisors (RIA), › SWP front office services include: including both broker-dealer-affiliated advisors and purely – Proposal generation integrated with the account open process inde
Slide 42: One SEI Investment Manager Experience
One SEI Investment Manager Experience Jim Warren
Slide 43: Investment manager capabilities
• • • • • • • • • • • • • • • • • • • • • ©2019 SEI 43
Slide 44: Investor platform and data management
Investor Platform Ly © SEI Trade _Investor Dashboard Treasury Cash Mgt. Wires 0000 0000 Analytics APIs Regulatory Platform 2 Vv) fw 40 WorkDesk Document Global Regulatory Manager Workflow Management Risk & Compliance Manager Platform Ered End Client Performance Reporting Attribution & Manager Workfl
Slide 45: Investor data management and integration
IMS CASE STUDY Investor data management and integration Client Profile SEI Service Model › Investment Management Division of a global bank › Converted data in 2015 from multiple internal and external › Alternative investments in private equity funds, hedge funds and sources real estate funds › SEI p
Slide 46: Large technology-heavy traditional asset manager
IMS CASE STUDY Large technology-heavy traditional asset manager Client Profile SEI Service Model › Separate account manager: SMA, Private Client, Institutional › Improved SMA trading workflow via API connectivity between › 30 Emerging Markets, Global & International strategies (equity proprietary de
Slide 47: A differentiated solution
ONE SEI A differentiated solution › Horizontal integration across platforms for business units and markets › One provider › Vertical depth of solutions providing front/middle/back services across markets › Value added services › Data management with investment processing capabilities of a best-in-cl
Slide 48: Global Regulatory Compliance (GRC)
Global Regulatory Compliance (GRC) Phil Masterson
Slide 49: Complex, burdensome regulatory landscape
INDUSTRY HEADWINDS Complex, burdensome regulatory landscape Source: Ernst & Young, 2010 ©2019 SEI 49
Slide 50: Floods & fines / risk & enforcement
HELP! Floods & fines / risk & enforcement More than As many as JP Morgan added 57,000 100-150 13,000 employees ($2B) Global regulatory alerts in 2018 – Reuters Articles on regulation in the first half of 2019 and spent $600M in tech for global – Joint Working Group regulatory and compliance (2012 –
Slide 51: Regulatory-induced insomnia for the C-suite
Regulatory-induced insomnia for the C-suite How does this Do these new SEC, FINRA, CFTC, regulations apply to How do I ensure ESMA, IRS. Who impact my core me now? Will they consistency of business? in the future? reporting across wa n t s wh a t ? regulators? Do I have the How do I mitigate in-hous
Slide 52: Services timeline
SEI Global Regulatory Compliance Services timeline ’40 Act Portfolio AML Criminal Compliance Advisers Act 206(4)7 Justice Act (Mid-1980s) Support (2004) AIFMD Annex Front-Office (2010) IV (2015) Compliance Form PF (2012) Platform NASD 2830 Portfolio Regulatory Data Infrastructure Reporting SEC Rule
Slide 53: Enterprise Regulatory Compliance Platform
Enterprise Regulatory Compliance Platform Outsourced business services & integrated technology Key SEI Business Services: Operations / Relationship Management Differentiator Open Platform SEI Regulatory Compliance Dashboard Regulatory Reporting Program Firm Compliance Trading Compliance and Code of
Slide 54: Estimated market sizing data
Burden Creating Opportunity Estimated market sizing data Fragmented, decentralized market comprised of three main components: › Advice: Provided by lawyers and consultants (higher risk & difficult to scale)* Estimated spending on › Technology: Regulatory apps/software for discreet needs (first-mover
Slide 55: Large universe of prospects
SEI Global Regulatory Compliance Large universe of prospects 5,000+ 1,000+ commercial 12,000 investment banks; SEC-regulated managers 800+ savings RIAs >$1B AUM institutions 35,000 regulated 70+ buy-side 4,000 financial firms SEI broker services firms allocates to dealers globally ©2019 SEI 55
Slide 56: Case study
Case study Client profile Benefits › $60 billion asset manager › Automated creation of filing answers, reports and output files, › Equity, fixed-income, multi-asset & liquid alternative strategies allowing for vastly improved visibility into underlying data points and greatly improved speed-to-filin
Slide 57: SEI IT Services
SEI IT Services Ryan Hicke
Slide 58: We know financial services
SEI IT SERVICES We know financial services › Hosting, managing and processing client financial data › Integrating business and technology › Supporting our technology platforms that power banks, investment managers and wealth advisory firms globally › Operating as a regulated entity › Protecting ente
Slide 59: We understand technology trends
SEI IT SERVICES We understand technology trends End-customer Pressure Brand and Rising/ digital experience to innovate reputational risk unpredictable costs Cyberattacks increasing exponentially Rapidly advancing Limited resources technology and industry talent Lack of Evolving workplace IT agility
Slide 60: We deliver solutions for technology needs
SEI IT SERVICES We deliver solutions for technology needs Hosting Infrastructure Backup/restore Security Network Services Disaster Recovery Network Operations Cybersecurity Services Services Monitoring Network Protection Change Management Endpoint Protection Maintenance Email Protection Support Thre
Slide 61: Current client profile
CLIENT PROFILE Current client SELECTED SERVICES Hosting Services ORGANIZATION SNAPSHOT Infrastructure Investment • $5 billion in AUM • 2-person IT staff Manager • 3 office locations • Focused on core growth Run critical workloads on secure, reliable, high-performance • 45 employees and wholly-owned
Slide 62: New client profile
SELECTED SERVICES PROSPECT PROFILE Network Operations Services New client Monitoring Devices and interfaces are analyzed to ensure maximum ORGANIZATION SNAPSHOT availability and performance. Community • $1.3 billion in assets • 3-person IT staff Change Management Bank • 9 branch locations • Cybersec
Slide 63: The Importance of Advice and Customization
The Importance of Advice and Customization Kevin Barr
Slide 64: The disruption of asset management
ASSET MANAGEMENT The disruption of asset management Social Economic Regulation Technology › Choice › Growth › Speed › Disruption › Challenge › Interest rates › Cost › Data › Expectation › Confidence › Complexity › Open architecture › Personalization › Liquidity › Accountability › Accessibility › Amb
Slide 65: Advice and customization
Advice and customization The advice given, the technology platform employed, and the customization of the assets managed are the value drivers in SEI’s revenue models. — AL WEST ©2019 SEI 65
Slide 66: Investing on the rise
ASSET MANAGEMENT Investing on the rise $70,000,000 $60,000,000 U.S. DOLLARS (MILLIONS) $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $0 Alternative Passive Active 2012 2020 Source: PWC ©2019 SEI 66
Slide 67: Investors choose ETFs and SMAs
ASSET MANAGEMENT Investors choose ETFs and SMAs Mutual Fund Advisory Programs Separate Account Programs ETF Advisory Programs Total $3,000,000 $2,500,000 U.S. DOLLARS (MILLIONS) $2,000,000 $1,500,000 $1,000,000 $500,000 $- 2013 2014 2015 2016 2017 2018 Source: SEI. Data as of 12/31/2018 ©2019 SEI 67
Slide 68: SEI's assets reflect global trends
ASSET MANAGEMENT SEI’s assets reflect global trends* ETF Portfolios Traditional SMA Funds Total Assets Under Management $200,000 $180,000 $160,000 $140,000 U.S. DOLLARS (MILLIONS) $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $- 2004 2014 2019 Source: SEI. Data as of 9/30/2019 *Past performance
Slide 69: Choice to keep pace with the industry
ASSET MANAGEMENT Choice to keep pace FACTOR REAL PASSIVE ASSET with the industry MULTI- SPECIALIZED CREDIT MANAGER ACTIVE INVESTMENT APPROACH HEDGE FUNDS FUNDS ALTERNATIVE STRATEGIES PRIVATE EQUITY ETFs INVESTMENT STRUCTURE SMA FUND OF ONE INVESTMENT STRUCTURES TAX/ESG SOLUTION ALT OPTIONS ACCESS PL
Slide 70: Customized Solution
ASSET MANAGEMENT Customized Solution CUSTOMIZATION ADVICE IMPLEMENTATION PRODUCT ©2019 SEI 70
Slide 71: SMA
ASSET MANAGEMENT SMA IMPLEMENTATION CUSTOMIZATION PRODUCT ADVICE Separately Managed Account (SMA) ACTIVE SECURITY- INV. PHILOSOPY GEOGRAPHIC- FACTOR LEVEL CLIENT TAX SPECIFIC ACCOUNT SEGMENT- PASSIVE RISK SPECIFIC ESG INVESTOR- ©2019 SEI DIRECT INDEXING SPECIFIC 71
Slide 72: Income
ASSET MANAGEMENT Income IMPLEMENTATION CUSTOMIZATION PRODUCT ADVICE Distribution- Focused Strategy (DFS) ACTIVE FUNDS SEPARATE MGR. RESEARCH INVESTOR- PASSIVE FUNDS ACCOUNT CASH FLOW SPECIFIC ETFS ESG TAX ©2019 SEI CLIENT-SPECIFIC 72 INCOME STRATEGY
Slide 73: OCIO
ASSET MANAGEMENT OCIO IMPLEMENTATION CUSTOMIZATION PRODUCT ADVICE OCIO OPEN FUNDS MGR. RESEARCH CLIENT- ARCHITECTURE MODELS ASSET ALLOC. SPECIFIC ACTIVE SEPARATE PORT. CONST. GOALS-BASED PASSIVE ACCOUNT ESG ETF CIT RISK MGMT. 73 ©2019 SEI ALT LDI
Slide 74: Processing and Technology
Processing and Technology Steve Meyer
Slide 75: Convergence in our markets: Well-positioned in the ecosystem
Convergence in our markets: Well-positioned in the ecosystem ©2019 SEI 75
Slide 76: One SEI
One SEI › It is NOT a separate platform, rather it is….. ‒ A Mindset Change Evolve our mindset to focus on capabilities and complete client needs, not defined by any one segment ‒ A New Business Strategy Look at clients and markets at a broader enterprise level, solving their business challenges by
Slide 77: Global Private Banking and Trust
Global Private Banking and Trust Steve Meyer
Slide 78: Snapshot
GLOBAL PRIVATE BANKING & TRUST Snapshot* We provide solutions that enable organizational transformation, providing front-, middle- and back-office services, and supporting 50 More than 50 years as an infrastructure and investment processing service provider an end-to-end, holistic experience for wea
Slide 79: Strategic themes: Global PBT
Strategic themes: Global PBT Grow our business globally Monetize our investment in SWP Expand our markets and solutions to drive further growth Drive toward sustainable and accelerating profitability ©2019 SEI 79
Slide 80: Industry challenges: Ongoing complexity validates SWP
Industry challenges: Ongoing complexity continues to validate SWP ©2019 SEI 80
Slide 81: Continued growth and monetization of SWP
Continued growth and monetization of SWP APIs Front-Office Investment Middle-Office Services Management S Services Information Management Services Back-Office Services Infrastructure Services ©2019 SEI 81
Slide 82: SEI aggregated functionality and services
SEI aggregated functionality and services ©2019 SEI 82
Slide 83: Global Private Banking: Key business updates
Global Private Banking: Key business updates We have momentum and continue to drive that momentum as SWP is a premium, unified wealth platform that has expanded market opportunities. Market and Sales Activity Update DRIVE Global Update MOMENTUM! TRUST 3000 Update Growing Through Headwinds ©2019 SEI
Slide 84: Asset Management Distribution Snapshot
Asset Management Distribution Snapshot* We enable large firms and their advisors to achieve success and provide better outcomes to their clients through an integrated and customizable technology, advice and investment solution. 9 In ninth year of delivering custom asset management solutions › Strate
Slide 85: Global Private Banking: Key growth initiatives
Global Private Banking: Key growth initiatives › Grow and install our current backlog Continue our Current Momentum › Expand cross-sell opportunities › “Lean in” strategy › Expand growth opportunities by modularizing our platforms One SEI › Open up platforms to allow cross-selling of other platforms
Slide 86: Investment Managers
Investment Managers Steve Meyer
Slide 87: Investment Managers Snapshot
INVESTMENT MANAGERS Snapshot* We provide a comprehensive front-to-back office operating platform to investment managers globally, covering their business 3+ Decades as an infrastructure and investment processing service provider and investment vehicles/products, such as: › Private Equity Funds and F
Slide 88: Evolution driven by innovation
INVESTMENT MANAGERS Evolution driven by innovation* 2010 – 2018 2005 – 2010 • Total AuA approaching $900B • Middle Office assets over $215B 1995 – 2005 • Private Equity / committed capital • Total AuA reaches $400B assets over $365B • SEI Investments – Global Fund Services • Hedge fund assets over $
Slide 89: IMS Platform
INVESTMENT MANAGERS IMS Platform ©2019 SEI 89
Slide 90: Business update: Driving momentum
INVESTMENT MANAGERS Business update: Driving momentum › Private Equity, Real Estate driving growth Alternative Market Dynamics › Alternatives – the new active – $10 trillion market › Business dynamics opening up new opportunities Growth in Alternative Assets 10.0 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0
Slide 91: Business update: Driving momentum
INVESTMENT MANAGERS Business update: Driving momentum › Private Equity, Real Estate driving growth Alternative Market Dynamics › Alternatives – the new active – $10 trillion market › Business dynamics opening up new opportunities › $27 trillion retirement market providing significant CIT interest Tr
Slide 92: Business update: Driving momentum
INVESTMENT MANAGERS Business update: Driving momentum* › Private Equity, Real Estate driving growth Alternative Market Dynamics › Alternatives – the new active – $10 trillion market › Business dynamics opening up new opportunities › $27 trillion retirement market providing significant CIT interest T
Slide 93: SEI Archway Update
SEI ARCHWAY Update* We provide a suite of integrated accounting, investment data aggregation and reporting technology alongside outsourced 2 Nearly two decades of experience working with family offices service solutions to family offices and ultra-high-net-worth families, including: › Integrated Acc
Slide 94: Key growth initiatives
INVESTMENT MANAGERS Key growth initiatives › Continue One SEI strategy Continue Current Momentum › Execute on current pipeline › Execute across all segments: Alts, traditional, global, SEI Archway › Private Equity, Credit, Infrastructure, Private Debt, Real Estate Market Expansion › LP and GP Servic
Slide 95: Investment Advisors
Investment Advisors Wayne Withrow
Slide 96: Current overview
INVESTMENT ADVISORS Current overview* AUM: $67.7B Advisors: 7,400 Accounts: 354,000 *Past performance is not indicative of future results. ©2019 SEI 96
Slide 97: Themes
INVESTMENT ADVISORS Themes › Focus on increasing sales momentum › Reposition advisor offering – Capitalize on SWP technology enablement – Continue evolution of business model ©2019 SEI 97
Slide 98: Investment advisor headwinds are SEI's tailwinds
HEADWINDS / TAILWINDS Investment advisor headwinds are SEI’s tailwinds Headwinds › Growth of passive investing Tailwinds › Fee compression › The demise of commissions › Regulatory environment › Industry move to fee-based › Consumer empowerment ©2019 SEI 98
Slide 99: 2015: Manager-of-managers solution supported by technology
CAPITALIZE ON SWP TECHNOLOGY ENABLEMENT 2015: World-class, manager-of-managers solution supported by technology 2015 Positioning Investments Technology Practice Management ©2019 SEI 99
Slide 100: 2019: Independent Advisor Solutions
CAPITALIZE ON SWP TECHNOLOGY ENABLEMENT 2019: Independent Advisor Solutions World-class technology to meet today’s investment needs 2015 Positioning 2019 SEI WEALTH Investments PLATFORMSM Technology ACCOUNT MIGRATION Technology Investments BUSINESS MODEL MIGRATION Practice Management Practice Manage
Slide 101: World-class technology to meet today's investment needs
World-class technology to meet today’s investment needs 2019 › Digital signature › Online transaction processing Technology › Online model management › ETF strategies › Tax overlay Investments › Income overlay › Best practices Practice Management › Workflows ©2019 SEI 101
Slide 102: 2019 and 2020 and beyond
World-class technology to meet today’s investment needs 2019 2020 AND BEYOND ENHANCED OMNI-CHANNEL Technology CLIENT EXPERIENCE Technology TECHNOLOGY- ENABLED INVESTMENTS Investments Investments CONTINUED BUSINESS MODEL EVOLUTION Advice Practice Practice Management Management ©2019 SEI 102
Slide 103: World-class, technology-enabled investment advice
World-class, technology-enabled investment advice 2020 AND BEYOND › Integrated digital proposal and account open › Online UMA management Technology › Enhanced, digital end-client experience › ESG overlay › Risk management overlay Investments › Direct indexing Advice › Human Resources Practice › Regu
Slide 104: Focus on growth
GROWTH STRATEGIES Focus on growth › Attract advisors looking for a customizable, open-architecture, turnkey technology solution › Offer unbundled advice-centric investments › Capture the market for advisors seeking both solutions › Make bundled solution attractive to larger clients ©2019 SEI 104
Slide 105: Institutional Investors
Institutional Investors Paul Klauder
Slide 106: Institutional Investor Unit: Current overview
INSTITUTIONAL INVESTOR UNIT AUM % GROWTH Percentage Growth (1/1/2015 - 9/30/2019) Current Overview* 73% › Leading provider of OCIO / FM globally: 32% $89 billion AUM and 480 clients › Diversifying business, from U.S. Corporate 4% DB, to long-term, global growth markets U.S. Nonprofit Business Capita
Slide 107: Headwinds / Tailwinds: North America
HEADWINDS / TAILWINDS North America Headwinds › Acquisitions / mergers › Referenceable clients › Industry leader: $89 billion / 480 clients Tailwinds › DB lump sums / partial curtailments › Competition / lower OCIO fees (210 > 10 years) › Pivot to longer-term markets › Emergence of OCIO search consu
Slide 108: Headwinds / Tailwinds: EMEA & Asia
HEADWINDS / TAILWINDS EMEA & Asia Headwinds › Fee compression due to competition › Referenceable clients › OCIO / FM buying process controlled by › U.K. fiduciary management going Tailwinds search consultants up-market (CMA Review is helping here) › Buy-ins / buy-outs › U.K. DC (Master Trust authori
Slide 109: Strategic growth initiatives: ONE SEI
STRATEGIC GROWTH INITIATIVES Focused on delivering combined SEI platforms into multiple markets (ONE SEI) ©2019 SEI 109
Slide 110: Large Endowment & Foundations
STRATEGIC GROWTH INITIATIVES: A DEEPER DIVE Large Endowment & Foundations › Formal market review under way in this very competitive market segment › Emerging trend of OCIO being consumed by $300 million to $3 billion E&F institutions › “Boutique” providers of OCIO have cache in this market › Size, s
Slide 111: Institutional Investor segment summary
INSTITUTIONAL INVESTOR SEGMENT Summary › Effectively managing through the decline of the U.S. DB market › Position the new business focus on growth markets › Consolidation or going concern questions are real in this crowded space (e.g. TIAA OCIO) – Size, scale, resources and track record will prevai
Slide 112: Panel Discussion
Panel Discussion Dennis McGonigle
Slide 113: Forward-looking statements
Forward-looking statements This presentation contains forward-looking statements within the meaning of the rules and regulations of the Securities and Exchange Commission. In some cases you can identify forward-looking statements by the words ‘‘may’’, ‘‘will’’, ‘‘expect’’, “plan”, ‘‘believe’’ and ‘‘
Slide 114: Thank You
Thank You
SEI Investments Company — Investor Day (November 2019) on 6ix