SEI Investments Co (SEIC) 2024 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to the SEI First Quarter 2021 Earnings Call. (Operator Instructions) And as a reminder, this conference is being recorded.

女士們先生們，謝謝你們的支持。歡迎參加 SEI 2021 年第一季財報電話會議。 （操作員說明）謹此提醒，本次會議正在錄製中。

I would now like to turn the conference over to our host, Alex Whitelam. Please go ahead.

現在我想將會議交給我們的主持人 Alex Whitelam。請繼續。

Thank you, Eric. Thank you, everyone. Welcome. We appreciate you joining us today for our first quarter 2024 earnings call. On the call, we have Ryan Hicke, SEI's Chief Executive Officer; Dennis McGonigle Chief Financial Officer; and Sean Denham, incoming Chief Financial Officer with leaders of our business segments, James Cipriano, Sandy Ewing, Paul Klauder, Phil McCabe, Sneha Shah and Sanjay Sharma.

謝謝你，埃里克。謝謝大家。歡迎。感謝您今天參加我們的 2024 年第一季財報電話會議。 SEI 執行長 Ryan Hicke 出席了電話會議。丹尼斯‧麥戈尼格爾財務長；即將上任的財務長肖恩·德納姆(Sean Denham) 以及我們業務部門的領導者包括詹姆斯·西普里亞諾(James Cipriano)、桑迪·尤因(Sandy Ewing)、保羅·克勞德(Paul Klauder)、菲爾麥凱布(Phil McCabe)、斯尼哈沙阿(Sneha Shah) 和桑傑夏爾馬(Sanjay Sharma)。

Before we begin, I'd like to point out that our earnings press release can be found under the Investor Relations section of our website at seic.com. This call is being webcast live, and a replay will be available on the Events and Webcast page of our website. We would like to remind you that during today's presentation and in our responses to your questions, we have and will make certain forward-looking statements that are subject to risks and uncertainties that may cause actual results to differ materially.

在開始之前，我想指出，我們的收益新聞稿可以在我們網站 seic.com 的投資者關係部分找到。本次電話會議正在進行網路直播，我們網站的活動和網路廣播頁面將提供重播。我們想提醒您，在今天的演示和回答您的問題時，我們已經並將做出某些前瞻性陳述，這些陳述存在風險和不確定性，可能導致實際結果出現重大差異。

Please refer to our notices regarding forward-looking statements that appear in today's earnings press release and in our filings with the Securities and Exchange Commission. We do not undertake to update any of our forward-looking statements.

請參閱我們今天的收益新聞稿以及我們向美國證券交易委員會提交的文件中有關前瞻性陳述的通知。我們不承諾更新我們的任何前瞻性陳述。

With that, I'll turn the call over to our CEO, Ryan Hicke. Ryan?

接下來，我會將電話轉給我們的執行長 Ryan Hicke。瑞安？

Thanks, Alex, and good afternoon, everyone. We are out of the gates this year with high-quality results, top line growth and margin expansion in the first quarter. This deepens our conviction to maintain our focus on excellent execution against our strategic priorities. We are seeing significant traction in our technology and operational businesses as we manage expenses diligently, especially manifesting in profit growth in private banking.

謝謝，亞歷克斯，大家下午好。今年，我們在第一季取得了高品質的業績、營收成長和利潤率擴張。這加深了我們繼續專注於策略重點的卓越執行的信念。隨著我們努力管理開支，我們看到科技和營運業務的巨大吸引力，特別是私人銀行業務的利潤成長。

Our attention remains on increasing sales and pipeline activity and allocating capital and talent to new growth initiatives and emerging technologies. Accelerating activity and innovation is also a strategic priority in our asset management businesses as market trends and product types, asset allocation and investment choices continue to be headwinds. Our broader value proposition and solution set is resonating and gaining momentum. We need to translate this momentum into increasing new client acquisition and adoption.

我們的注意力仍然放在增加銷售和管道活動以及將資本和人才分配給新的成長計劃和新興技術上。由於市場趨勢和產品類型、資產配置和投資選擇仍然是不利因素，加速活動和創新也是我們資產管理業務的策略重點。我們更廣泛的價值主張和解決方案集正在引起共鳴並獲得動力。我們需要將這種勢頭轉化為增加新客戶的獲取和採用。

We will continue to lean into growing segments in the intermediary and institutional markets. Let me dive into our results for the quarter. Revenues in the first quarter were $511.6 million, up 9% from the first quarter of 2023. Net sales events in the quarter totaled $21.3 million, of which $16.6 million were net recurring. This was driven largely by a combination of technology and operational outsourcing sales of $24.5 million, offset by net negative activity in our AUM-oriented businesses.

我們將繼續專注於中介和機構市場不斷成長的細分市場。讓我深入探討一下我們本季的業績。第一季營收為 5.116 億美元，較 2023 年第一季成長 9%。這主要是由 2,450 萬美元的技術和營運外包銷售額共同推動的，但被我們以 AUM 為導向的業務的淨負面活動所抵消。

In our advisor business, we generated over $9 million of revenue with the FDIC-insured component of the SEI Integrated Cash program, which we launched in December 2023. Net income for the quarter increased 23% over the same period to $131.4 million. This is an important indication that our focus on sales implementing the backlog and driving more operational leverage across SEI trying to show results. We have more to do on all fronts.

在我們的顧問業務中，我們透過 2023 年 12 月推出的 SEI 綜合現金計劃中由 FDIC 承保的部分創造了超過 900 萬美元的收入。這是一個重要的跡象，表明我們專注於銷售，落實積壓工作，並在整個 SEI 中推動更多的營運槓桿，試圖展示結果。我們在各方面還有更多工作要做。

In the quarter, we repurchased approximately 808,000 shares of SEI stock at an average price of $69.32 per share for a total of $56 million of stock purchases. EPS was $0.99 for the first quarter, up 25% over the $0.79 reported in the prior year period. We believe we are well positioned for the remainder of 2024 and into the future, combining a strong financial position and unmatched set of capabilities and an engaged client and employee base. We're focused on delivering comprehensive solutions for the markets we serve and enhancing shareholder value.

本季度，我們以每股 69.32 美元的平均價格回購了約 808,000 股 SEI 股票，總共回購了 5,600 萬美元的股票。第一季每股收益為 0.99 美元，比去年同期的 0.79 美元增長 25%。我們相信，憑藉強大的財務狀況、無與倫比的能力以及積極參與的客戶和員工基礎，我們在 2024 年剩餘時間和未來處於有利地位。我們專注於為我們所服務的市場提供全面的解決方案並提高股東價值。

With that, let me turn to our business lines. Our Investment Managers business had another exceptional quarter. On the growth front, we have new business and cross-sales in the alternative and traditional markets, notably with the expansion of their product line, including CITs and the conversion of mutual funds to ETFs. This is a trend we are seeing increase in the traditional asset management segment.

接下來，讓我談談我們的業務線。我們的投資經理業務又經歷了一個出色的季度。在成長方面，我們在另類市場和傳統市場擁有新業務和交叉銷售，特別是產品線的擴展，包括企業所得稅以及共同基金向 ETF 的轉換。這是我們在傳統資產管理領域看到的成長趨勢。

We also implemented more than 60 new funds from a competitor onto our private equity platform for one of our larger clients. We continue to expand our reach in global markets. In particular, we are actively engaging with European-based private asset managers and we've made investments to further strengthen our global operations in Dublin, London and Luxembourg. The expansion of our IMS services in the non-U.S. markets is an important component to our future growth strategy.

我們還在我們的私募股權平台上為我們的一位大客戶實施了來自競爭對手的 60 多隻新基金。我們繼續擴大我們在全球市場的影響力。特別是，我們正在積極與歐洲私人資產管理公司合作，並進行投資以進一步加強我們在都柏林、倫敦和盧森堡的全球業務。我們的 IMS 服務在美國以外市場的擴展是我們未來成長策略的重要組成部分。

Most importantly, we hosted 80 of our clients for an annual event earlier this month, and it makes me extremely proud to be part of SEI. When I get the privilege to your firsthand, the experience our clients are having and the excitement they have to continue to grow with us. It shows how powerful our people, our culture and our capabilities are in the market. Private banking continues to execute effectively. The team carried last year's momentum through the first quarter with solid revenue growth and margin expansion compared to a year ago.

最重要的是，本月初我們接待了 80 位客戶參加了年度活動，這讓我非常自豪能夠成為 SEI 的一員。當我有幸獲得您的第一手資料時，我們的客戶所擁有的經驗以及他們必須繼續與我們一起成長的興奮。它顯示了我們的員工、我們的文化和我們的能力在市場上的強大力量。私人銀行業務繼續有效執行。該團隊在第一季延續了去年的勢頭，與去年同期相比，營收成長強勁，利潤率擴大。

While new contract signings were light in the quarter, this is simply a function of contract timing versus activity. The team already has a good start to Q2. We are seeing increased activity and success in the regional community bank segments. U.K. private client investment managers and our professional services offering across all segments. This go-to-market strategy was a key part of Sanjay's reorientation of the client-facing teams and it is being received positively in the market. The focus and deployment of additional investments in marketing, R&D and talent over the past 18 months is paying off.

雖然本季新合約簽約量較少，但這只是合約時間與活動的函數。球隊在第二季已經有了一個良好的開局。我們看到區域社區銀行領域的活動增加並取得了成功。英國私人客戶投資經理和我們在各個領域提供的專業服務。這種進入市場的策略是 Sanjay 面向客戶的團隊重新定位的關鍵部分，並且在市場上受到了積極的歡迎。過去 18 個月對行銷、研發和人才的額外投資的重點和部署正在取得回報。

Moving to our Global Asset Management businesses. Investment Advisors saw positive net cash flows of approximately $915 million. This was largely driven by our Strategist Partner Solutions and separately managed accounts, along with AUA growth from advisors leveraging our technology and operational solutions. Offsetting these inflows were outflows in our active mutual fund products as a result of markets shifting to lower-cost products and package solutions.

轉向我們的全球資產管理業務。投資顧問看到正淨現金流量約 9.15 億美元。這主要是由我們的策略合作夥伴解決方案和單獨管理的帳戶以及利用我們的技術和營運解決方案的顧問帶來的 AUA 成長所推動的。由於市場轉向低成本產品和一攬子解決方案，我們活躍的共同基金產品的資金流出抵消了這些資金流入。

During the quarter, we brought on 61 new advisors. And we also saw 3 of our existing RIAs crossed the $1 billion threshold on our platform, demonstrating our value and helping our advisors scale and grow their businesses. In the Institutional Investors segment, we remain focused on growing this business by aligning our cost structure and our talent to drive sales and margin expansion.

本季度，我們聘請了 61 位新顧問。我們還看到我們平台上的 3 個現有 RIA 突破了 10 億美元的門檻，展示了我們的價值並幫助我們的顧問擴大和發展他們的業務。在機構投資者領域，我們仍然專注於透過調整我們的成本結構和人才來發展這項業務，以推動銷售和利潤擴張。

While our results continue to reflect industry challenges, our teams did a really nice job managing expenses and securing a number of new wins with new and existing clients. Of note, we completed the transition of our first SWP client with a sizable private foundation into our OCIO program. We also recontracted 3 clients in the quarter, and finally, we have made adjustments to the cost structure and focus of SEI Novus to improve overall business results.

雖然我們的結果繼續反映了行業挑戰，但我們的團隊在管理費用和贏得新舊客戶的許多新勝利方面做得非常出色。值得注意的是，我們完成了第一個擁有相當規模私人基金會的 SWP 客戶向 OCIO 計劃的過渡。本季我們也重新簽約了 3 位客戶，最後，我們對 SEI Novus 的成本結構和重點進行了調整，以改善整體績效。

Within our investments in new business segment, we announced our strategic investment in TIFIN, a leading platform, accelerating the adoption of artificial intelligence and wealth management. With this partnership, we expect to more rapidly explore, develop and deliver new offerings that drive growth for our clients and the broader industry. We also had new wins in the family office services and private wealth businesses. Our partnership with LSV remains strong, and they had another quarter with positive relative performance, which Dennis will discuss.

在新業務領域的投資中，我們宣布策略性投資領先平台TIFIN，加速人工智慧和財富管理的應用。透過這種合作關係，我們期望更快地探索、開發和提供新產品，從而推動我們的客戶和更廣泛的行業的成長。我們在家族辦公室服務和私人財富業務方面也取得了新的勝利。我們與 LSV 的合作關係依然牢固，他們又一個季度取得了積極的相對業績，丹尼斯將對此進行討論。

Finally, we've launched new initiatives focused on developing talent for the future and elevating our culture across the organization. One focus area is on professional sales development, offering programs that are designed to expand and increase our bench of sales talent and support our client center culture. Another initiative is the launch of an employee-led group SEIsmic. SEIsmic's goal is to unite our innovation centers across the company, create opportunities for every employee to contribute to our growth and to actualize new business ideas aligned with our organizational objectives.

最後，我們推出了新舉措，重點是培養未來人才並提升整個組織的文化。其中一個重點領域是專業銷售發展，提供旨在擴大和增加我們的銷售人才隊伍並支持我們的客戶中心文化的計畫。另一項舉措是成立一個由員工領導的 SEIsmic 團體。 SEIsmic 的目標是團結整個公司的創新中心，為每位員工創造機會，為我們的發展做出貢獻，並實現與我們的組織目標一致的新業務理念。

With that, I'd like to thank all my colleagues across SEI for their commitment to our vision. This concludes my prepared remarks. I will now turn it over to Dennis to discuss our financial results for the quarter. Dennis?

在此，我要感謝 SEI 的所有同事對我們願景的承諾。我準備好的發言到此結束。我現在將把它交給丹尼斯討論我們本季度的財務表現。丹尼斯？

Thanks, Ryan. As Ryan mentioned, EPS for the quarter was $0.99 per share. This compares to $0.79 during the first quarter of 2023 and $0.91 for the fourth quarter of 2023. The revenue for the quarter was $512 million compared to $469 million in the first quarter of '23 million and $485 million in the fourth quarter. Total expenses for the quarter were $386 million, which compares to $367 million last year and $383 million in the fourth quarter.

謝謝，瑞安。正如 Ryan 所提到的，本季每股收益為 0.99 美元。相比之下，2023 年第一季為0.79 美元，2023 年第四季為0.91 美元。 ，第四季為4.85 億美元。本季總支出為 3.86 億美元，去年同期為 3.67 億美元，第四季為 3.83 億美元。

Included in the first quarter, expenses were approximately $6.2 million of severance expense as a result of workforce changes principally in our SEI Novus and Finomial units. The EPS impact is approximately $0.03 to $0.04. On the sales front in our technology and investment processing businesses of private banking and investment managers, net sales events totaled $24.5 million and are expected to generate $20.7 million in recurring revenue.

計入第一季的遣散費約為 620 萬美元，主要是由於我們的 SEI Novus 和 Finomial 部門的勞動力變動所致。 EPS 影響約為 0.03 至 0.04 美元。在我們私人銀行和投資管理公司的技術和投資處理業務的銷售方面，淨銷售活動總計 2,450 萬美元，預計將產生 2,070 萬美元的經常性收入。

In our asset management-related businesses, net sales were approximately negative $5.7 million, primarily due to asset movement from our mutual fund products into other investment programs as well as net losses in our institutional business. As Ryan mentioned, cash flows in our advisor business were a positive $900-plus million. We also sold $2.5 million of revenue in our new business segment. Total net sales were $21.3 million, of which $16.6 million is recurring.

在我們的資產管理相關業務中，淨銷售額約為負 570 萬美元，主要是由於資產從我們的共同基金產品轉移到其他投資計劃以及我們機構業務的淨虧損。正如 Ryan 所提到的，我們顧問業務的現金流量為 9 億多美元。我們還在新業務部門銷售了 250 萬美元的收入。淨銷售額總額為 2,130 萬美元，其中經常性銷售額為 1,660 萬美元。

Private banking sales were $2.9 million, most of which is onetime. During the quarter, we had one client win and one loss, both smaller in size that essentially offset each other. The 3 clients recontracted during the quarter represent $4.8 million in annual recurring revenue. Despite first quarter closes, sales activity is strong. The limited client signings, as Ryan referenced, are more an issue of timing versus activity.

私人銀行業務銷售額為 290 萬美元，其中大部分是一次性銷售額。在本季度，我們有一個客戶贏了，一個客戶輸了，兩者規模都較小，基本上相互抵消了。本季重新簽約的 3 位客戶代表年度經常性收入為 480 萬美元。儘管第一季已結束，但銷售活動依然強勁。正如瑞安所提到的，有限的客戶簽約更多的是時間與活動的問題。

During the quarter, we stayed on schedule with client implementations and conversions. We installed $1.4 million of revenue from our fourth quarter backlog. Our current backlog of expected to be installed revenue in the next 18 months is $18.5 million. Also note that as part of the segment change we announced yesterday, we moved $2.8 million from the banking backlog to the IMS backlog. This was a piece of business related to alternative asset processing that while the client is a bank is more aligned with IMS services and delivery.

在本季度，我們按計劃完成了客戶實施和轉換。我們從第四季的積壓訂單中獲得了 140 萬美元的收入。我們目前積壓的預計未來 18 個月內安裝的收入為 1850 萬美元。另請注意，作為我們昨天宣布的部門變更的一部分，我們將 280 萬美元從銀行積壓訂單轉移到 IMS 積壓訂單。這是一項與另類資產處理相關的業務，雖然客戶是銀行，但更符合 IMS 服務和交付。

Asset Management revenues in private banking were up from fourth quarter, flows were essentially flat. However, higher asset levels entering the quarter led to higher average AUM, which helped the revenue growth. Expenses in private banking were up slightly from the fourth quarter of 2023 reflecting overall business growth. Note that expenses year-over-year were flat.

私人銀行業務的資產管理收入較第四季有所成長，但流量基本上持平。然而，進入本季更高的資產水準導致平均資產管理規模更高，這有助於收入成長。私人銀行業務的支出較 2023 年第四季略有上升，反映了整體業務的成長。請注意，支出與去年同期持平。

On the investment managers front, net sales for the quarter were $21.6 million, $20.4 million of which is recurring. During the quarter, we recontracted 4 clients totaling $5.7 million in annual recurring revenue. Revenue for the quarter was up compared to fourth quarter, reflecting the impact of client installations. Expenses were down slightly. However, fourth quarter included a $5.3 million item for an asset write-down. Our backlog of sold but expected to install in the next 18 months recurring revenue is $28.9 million, which includes the $2.8 million move from private banking.

在投資經理方面，本季淨銷售額為 2,160 萬美元，其中 2,040 萬美元為經常性銷售額。本季度，我們與 4 位客戶重新簽約，年度經常性收入總計 570 萬美元。該季度的收入比第四季度有所增長，反映了客戶端安裝的影響。費用略有下降。然而，第四季包括 530 萬美元的資產減記項目。我們已售出積壓但預計在未來 18 個月內安裝的經常性收入為 2,890 萬美元，其中包括從私人銀行業務轉移的 280 萬美元。

As Ryan mentioned, for investment advisors, net cash flow onto our platform were up including increased flows into our newer strategist partner and platform-only programs. This was offset by negative flows from our mutual fund products. One key item of note is the $9.6 million of revenue generated in the quarter from the FDIC insured deposit program launched in December.

正如瑞安所提到的，對於投資顧問來說，我們平台上的淨現金流量有所增加，包括流入我們新的策略合作夥伴和純平台計劃的資金增加。這被我們共同基金產品的負流量所抵銷。值得注意的一個關鍵項目是本季 FDIC 12 月推出的保險存款計劃產生的 960 萬美元收入。

As a reminder, this takes the cash allocation in our model portfolios generally used for operational purposes like paying fees and suits those balances into an FDIC insured deposit account. At quarter end, there were approximately $897 million in assets in this program.

提醒一下，這將我們模型投資組合中的現金分配通常用於支付費用等營運目的，並將這些餘額存入 FDIC 受保存款帳戶。截至季末，該計劃的資產約為 8.97 億美元。

Also note that we recognized approximately $1.5 million in revenue in the fourth quarter. Revenues for the quarter were up for reasons mentioned. Expenses were flat from fourth quarter, reflecting overall good expense management. In the Institutional Investors segment, net sales events for the quarter were negative $4.6 million reflecting positive client signings offset by losses and repricing and client retention activities. Revenues for the quarter were up due to positive markets. Expenses were also up slightly reflecting personnel-related costs. In the investments in New Business segment, revenues and expenses were also up compared to fourth quarter with modest profit improvement. LSV produced $31.6 million of profit during the quarter, this compares to $35.4 million during the fourth quarter. Revenues for LSV were $107.3 million compared to $117.1 million in the fourth quarter.

另請注意，我們在第四季度確認了約 150 萬美元的收入。由於上述原因，該季度的收入有所增長。費用與第四季持平，反映出整體良好的費用管理。在機構投資者部門，本季的淨銷售事件為負 460 萬美元，反映出積極的客戶簽約被損失、重新定價和客戶保留活動所抵消。由於市場積極，該季度的收入有所增長。費用也略有增加，反映出與人員相關的成本。在新業務部門的投資中，收入和支出也較第四季有所成長，利潤略有改善。 LSV 本季利潤為 3,160 萬美元，而第四季利潤為 3,540 萬美元。 LSV 的營收為 1.073 億美元，而第四季的營收為 1.171 億美元。

First quarter revenues included $6 million of performance fees. As a reminder, LSV recorded performance fees of $19.8 million during the fourth quarter. Performance fees are a reflection of continued positive relative performance. Our tax rate for the quarter was 22.9%. As I'm sure you all noted with our 8-K filing yesterday, we have made a few modest adjustments to our segment reporting. All numbers presented today reflect those changes.

第一季營收包括 600 萬美元的績效費。提醒一下，LSV 第四季的績效費用為 1,980 萬美元。績效費反映了持續正向的相對績效。我們本季的稅率為 22.9%。我相信你們都在昨天的 8-K 備案中註意到，我們對分部報告做了一些適度的調整。今天提供的所有數字都反映了這些變化。

As you also know, this is the last of my roughly 90-plus earnings calls. I would like to thank all the investment and financial professionals present in the past. This role has given me the opportunity to meet and engage with. I thank you all for the professional manner in which we engage and the insights and questions that you brought to me that broaden my and our thinking. SEI is in great hands, and I'm sure your interactions and working relationship with Sean will serve him and the company well.

如你所知，這是我大約 90 多次財報電話會議中的最後一次。我要感謝過去在場的所有投資和金融專業人士。這個角色給了我見面和接觸的機會。我感謝你們所有人以專業的方式參與我們的工作，感謝你們帶給我的見解和問題，拓寬了我和我們的思維。 SEI 得到了很好的管理，我相信您與 Sean 的互動和工作關係將為他和公司帶來好處。

That concludes my remarks. All of our unit heads are on the call, and we will now take questions. It's your last chance to stump me.

我的發言到此結束。我們所有單位的負責人都已接聽電話，我們現在將回答問題。這是你最後一次難倒我的機會了。

(Operator Instructions) And our first question will go to Owen Lau with Oppenheimer.

（操作員說明）我們的第一個問題將由奧本海默的 Owen Lau 提出。

So Dennis, as you wish, I'm going to give you a fast ball. Could you please talk about the traction for the cash program going into the second quarter? I know you generated a fee of $9.6 million in the first quarter. You gave us, I think, the quarter end number $897 million. But how much average cash did you get in the first quarter and in April so far? And how we should model out the revenue going forward?

所以丹尼斯，如你所願，我會給你一個快球。您能否談談第二季現金計劃的吸引力？我知道你們第一季產生了 960 萬美元的費用。我認為，您給我們的季度末數字為 8.97 億美元。但到目前為止，第一季和四月你平均拿到了多少現金？我們該如何模擬未來的收入？

Thanks, Owen. That is pretty much a fast ball right down the middle. I really appreciate doing that. You are too kind. I guess when we travel together this quarter, that helped. Average assets in that program for the quarter were just under $850 million. So the $9.6 million was derived from that average balance, but we ended the quarter with higher levels. And so this is our first quarter of experience with this program full quarter. Paul and the team are continuing to work with our advisor community and getting a better feel for how flows are going to occur into this program. So as the year progresses, I think we'll get a better feel for kind of what's kind of the consistent rate of cash in this program, which can be affected by how much rebalancing occurs when fees are paid, when this cash is used to meet the operational needs of customer accounts. But so far, so good. We're clearly on track for the $25 million we talked about back in January.

謝謝，歐文。這幾乎是中場的快球。我真的很感激這樣做。你太好了。我想當我們這個季度一起旅行時，這很有幫助。該季度該計劃的平均資產略低於 8.5 億美元。因此，960 萬美元來自平均餘額，但我們在本季結束時達到了更高的水平。這是我們整個季度對該計劃的第一季體驗。 Paul 和團隊將繼續與我們的顧問社群合作，以更好地了解該計劃的流程。因此，隨著時間的推移，我認為我們會更好地了解該計劃中現金的一致比率，這可能會受到支付費用時、當這些現金用於滿足客戶帳戶的營運需求。但到目前為止，一切都很好。顯然，我們正朝著 1 月談到的 2500 萬美元目標邁進。

And then on price of banking, margin continues to go up. Is there any explorational goal on when you can get back to historical 30% margin level? I mean it may or may not be a straight line up, but is there any potential investments that we should be aware of before it reaches your goal.

然後在銀行業價格方面，利潤率持續上升。是否有什麼探索性的目標，什麼時候可以回到歷史30%的保證金水準？我的意思是，它可能是一條直線，也可能不是一條直線，但在達到您的目標之前，我們是否應該注意任何潛在的投資。

It's probably best that Ryan answered this question because I would be -- I'm not going to be here. I know what my aspirations are now. They've changed quite a bit (inaudible).

瑞安回答這個問題可能是最好的，因為我不會在這裡。我知道我現在的願望是什麼。他們已經改變了很多（聽不清楚）。

It treated differently as the (inaudible)

它以不同的方式對待（聽不清楚）

But I think we've always said that this business, we expect the type of business it is, how we operate the business to scale and opportunities within the business that this should be a 30% margin business that we'll get to both through top line growth and efficiency and delivery that gets that top line growth or a big chunk of it to the bottom line. And Sanjay has really done a great job over the past 18, 20 months in reorienting the business both in terms of its market-facing activities and client engagement and the level of client engagement and prospect engagement, but also in working with not just with his own unit but across other units within SEI that contribute to the offering of private banking to bring costs down or to bring them to a level that we feel really good about the scale we'll get going forward.

但我認為我們總是說這個業務，我們期望它是什麼類型的業務，我們如何經營業務以擴大規模，以及業務內的機會，這應該是一個30% 利潤率的業務，我們將通過這兩者來實現營收成長、效率和交付，使營收成長或其中很大一部分達到獲利。在過去的18、20 個月裡，Sanjay 在重新定位業務方面確實做得非常出色，無論是在面向市場的活動和客戶參與度方面，還是在客戶參與度和潛在客戶參與度方面，而且不僅是與他的同事合作。

So we're still looking at that I'd say, a 3-plus year time frame, 3 to 5 years as a good target. But a lot of it depends on continuing to execute the way the team has been executing.

所以我們仍在考慮三年多的時間框架，三到五年作為一個好的目標。但這在很大程度上取決於繼續執行團隊一直以來的執行方式。

I would echo that. I think what's been consistent (inaudible) I mean, I think this is the fifth or sixth quarter that you kind of see consistent improvement and I think we sent hopefully a very clear message externally and internally when Sanjay took over responsibility that we were going to get this business back to historical margins. We were going to be extremely disciplined and focused on how we do that. But I think the thing that is encouraging for us as a leadership team is really seeing how the activity and focus on the revenue side and the sales side is starting to pay off with leading indicators that we track, such as activity and pipeline engagement. So I mean, I think Dennis' answer is spot on. But I think most importantly, Sanjay and the team just have this as a really strong blueprint and plan that they're executing against moving forward.

我會附和。我認為什麼是一致的（聽不清楚）我的意思是，我認為這是第五或第六季度，你會看到持續的進步，我認為當桑傑接手責任時，我們希望在外部和內部發出一個非常明確的訊息，我們將讓這項業務回到歷史利潤水平。我們將非常自律並專注於我們如何做到這一點。但我認為，作為領導團隊，對我們來說令人鼓舞的事情是真正看到對收入方面和銷售方面的活動和關注如何開始透過我們追蹤的領先指標（例如活動和通路參與度）獲得回報。所以我的意思是，我認為丹尼斯的回答是正確的。但我認為最重要的是，桑杰和團隊將其作為一個非常強大的藍圖和計劃，他們正在執行以繼續前進。

Thanks a lot for your insight, Dennis. It's my pleasure working with you.

非常感謝您的見解，丹尼斯。我很高興與您合作。

Thank you, Owen. Mine as well.

謝謝你，歐文。我的也是。

And next, we'll hear from Jeff Schmitt with William Blair.

接下來，我們將聽取傑夫·施密特和威廉·布萊爾的演講。

Dennis, I wish you the best in your retirement.

丹尼斯，我祝你退休後一切順利。

Thanks, Jeff.

謝謝，傑夫。

So question on the Investment Advisors business, the margin jumped up 45%. Expenses were pretty flat from last quarter. Is that improvement in the margin mainly from the addition of spread income? Or are there some expense initiatives underway. Just trying to think how should we think about that 45% margin going forward?

因此，投資顧問業務的利潤率激增了 45%。與上季相比，費用相當穩定。利潤率的改善主要是由於利差收入的增加嗎？或是否有一些開支計劃正在進行中。只是想一下，我們該如何看待未來 45% 的利潤率？

I'll let Paul jump in here. But clearly, the revenue up and the high-margin on that revenue stream helped in the first quarter, certainly compared to fourth quarter and last year. But there also is a very concerted effort on cost containment. And I would -- I use terms more like a greater efficiency and delivery, higher quality and delivery, higher scale, better -- we always invest in our technology in operational areas to help drive scale. So that's also been a help. I don't know, Paul, do you want to?

我會讓保羅跳進去。但顯然，與第四季和去年相比，第一季的營收成長和高利潤率有所幫助。但在成本控制方面也有非常一致的努力。我會——我使用的術語更像是更高的效率和交付、更高的品質和交付、更高的規模、更好——我們總是在營運領域投資我們的技術，以幫助推動規模。所以這也是一個幫助。我不知道，保羅，你願意嗎？

Yes. I would concur. Net interest income and the profitability of the FDIC program, obviously, is a big contributor. The markets are a contributor. Expense management, we continue to be disciplined about that. And just from a sales and marketing perspective, we are looking for more larger advisors that convert, I would say, we call them chunk plays, bigger advisors over $250 million. We did see 3 of those this quarter and we continue to have a sales emphasis on those larger advisors while we still work our bread and butter, which is our advisors affiliated with broker-dealers.

是的。我同意。顯然，淨利息收入和 FDIC 計劃的獲利能力是一個很大的貢獻者。市場是貢獻者。在費用管理方面，我們持續遵守紀律。僅從銷售和行銷的角度來看，我們正在尋找更多規模更大的顧問，我想說，我們稱之為“大塊遊戲”，即價值超過 2.5 億美元的更大顧問。本季我們確實看到了其中的 3 家，我們繼續將銷售重點放在那些較大的顧問身上，同時我們仍然以我們的麵包和黃油為生，即我們附屬於經紀交易商的顧問。

So overall, a very positive quarter for the segment.

總體而言，該領域的季度表現非常積極。

And then a number of your biggest competitors in that segment are starting to implement price increases in their businesses. Does that sort of open the door for you to do the same? Or do you see it more as an opportunity if you don't?

然後，該領域的許多最大競爭對手開始在其業務中實施價格上漲。這是否為你打開了同樣的大門？或者如果你不這樣做，你會更多地將其視為一個機會嗎？

Yes. On the price increase side, I mean, we always look at the competitiveness of all of our offerings. I mean the mutual funds, we know have had some price decreases over time or just more investors kind of opting out for other implementation, whether it's ETFs, separate accounts, UMA programs. So we're always looking at the competitiveness. We don't see right now much increase that we can just build in, in absolute price relative to our competitive set, but we'll continue to evaluate that. But more importantly is just driving growth through getting more and more assets under management. That's where we really think there's going to be escalation in the profitability of the segment.

是的。我的意思是，在價格上漲方面，我們始終關注所有產品的競爭力。我的意思是，我們知道，隨著時間的推移，共同基金的價格有所下降，或者只是更多的投資者選擇退出其他實施方式，無論是 ETF、獨立帳戶還是 UMA 計劃。所以我們一直在關注競爭力。相對於我們的競爭產品，我們目前看不到我們可以增加的絕對價格，但我們將繼續評估這一點。但更重要的是透過管理越來越多的資產來推動成長。這就是我們真正認為該領域獲利能力將會提升的地方。

I'll just add to that. We're operating under a longer-term view that there's going to continue to be price compression and that the pricing environment in the asset management in particular is -- that pressure is not -- isn't changing. It's only going to continue, which is why we're so focused on technology build, operational efficiency and scale, client delivery, broadening out our market segments for growth. So it's -- I don't know that we've seen price increases in the competitive set, it would possibly be a good thing in certain areas if that occurred. But we're operating under that this is going to be a more price-competitive environment and making sure that from a delivery standpoint, we're as effective and efficient and scalable as possible. And that's something our clients really appreciate both within the advisor channel and the banking channel. I mean many of Sanjay's clients, every one of them is dealing with the same market issue.

我就補充一下。我們的經營理念是長期觀點，即價格將繼續壓縮，尤其是資產管理領域的定價環境——壓力不會——不會改變。 這種情況只會持續下去，這就是為什麼我們如此專注於技術建置、營運效率和規模、客戶交付、拓寬我們的細分市場以實現成長。所以，我不知道我們是否看到競爭產品價格上漲，如果這種情況發生，在某些領域可能是一件好事。但我們的營運環境將是一個更具價格競爭力的環境，並確保從交付的角度來看，我們盡可能有效、高效和可擴展。這是我們的客戶在顧問管道和銀行管道中真正欣賞的。我的意思是桑傑的許多客戶，他們每個人都在處理同樣的市場問題。

(Operator Instructions) Next, we'll hear from Ryan Kenny with Morgan Stanley.

（操作員說明）接下來，我們將聽取摩根士丹利瑞安·肯尼 (Ryan Kenny) 的演講。

Dennis, congratulations on 90-plus quarters.

丹尼斯，恭喜您獲得 90 多個季度的成績。

I survived, right? I am a survivor.

我活了下來，對吧？我是一個倖存者。

You have been very helpful. So thank you so much for everything throughout the years. I have a question on net new sales. So when I look at the 3 bullets, you have $24.5 million from private banks and IMS, it's pretty strong. You have $2.5 million from the newer initiatives and then there's the drag of negative $5.7 million from the Asset Management-related businesses. And when you look over the last few quarters, that drag has persisted for a while. So how should investors think about how much of a drag there is going forward. If you could give an update on where your current (inaudible) defined benefit plans stands? And how much headwinds should we expect going forward on there?

你非常有幫助。非常感謝你們這些年來所做的一切。我有關於新淨銷售額的問題。因此，當我查看 3 個項目符號時，您從私人銀行和 IMS 獲得了 2450 萬美元，這是相當強勁的。新措施帶來了 250 萬美元的收入，但資產管理相關業務帶來了 570 萬美元的負數拖累。當你回顧過去幾個季度時，你會發現這種拖累已經持續了一段時間。那麼投資人應該如何看待未來的阻力有多大。您能否介紹一下您目前（聽不清楚）的固定福利計劃的最新情況？我們預計未來會遇到多少阻力？

Yes, Ryan. It's Ryan. Hope you're doing well. I'll start and then Jay is in the room, and Paul can add. So let's start with the first of the 3. So if you look at IMS bills in the room as well. That's another exceptional quarter of sales, as I mentioned. When you think about the breadth of our capabilities set there, the overall market trends around the appetite and the embracing of outsourcing and our ability to continue to invest and deliver differentiation through technology and operational solutions and our people, we feel good on the traditional side of the alternative side and the emerging in the global side to continue to drive net new sales numbers.

是的，瑞安。是瑞安。希望你做得很好。我先開始，然後傑伊就在房間裡，保羅可以補充。因此，讓我們從 3 個中的第一個開始。正如我所提到的，這是另一個銷售業績出色的季度。當你想到我們在那裡的能力的廣度、圍繞外包的興趣和接受的整體市場趨勢，以及我們透過技術和營運解決方案以及我們的員工繼續投資和提供差異化的能力時，我們在傳統方面感覺良好另類面向和全球新興面向繼續推動淨新銷售。

We already touched on what Sanjay and the team are doing. So first of all, we feel good. We look at the total addressable markets. We'll continue to be nimble. We'll allocate resource where needed, and we'll continue to expand our footprint in areas there. We made a concerted effort, as you know, last summer to bring in an executive from the outside and look at our new business initiatives and investments in new business in different ways. I talked about a little bit of that earlier with what we're doing with TIFIN and SEIsmic, but when you see family office services and sphere and private wealth management, we know when we think about the company 5 to 7 years out, we want additional growth engines beyond what we have today, and we're starting to really lay some railroad tracks to make some investments there. We feel good about that.

我們已經談到了 Sanjay 和團隊正在做的事情。首先，我們感覺良好。我們著眼於總的潛在市場。我們將繼續保持敏捷。我們將在需要的地方分配資源，並繼續擴大我們在這些地區的足跡。如您所知，去年夏天我們做出了共同努力，從外部引進了一位高階主管，並以不同的方式審視我們的新業務計劃和對新業務的投資。我之前談到了我們與 TIFIN 和 SEIsmic 所做的一些事情，但是當你看到家族辦公室服務以及領域和私人財富管理時，我們知道當我們考慮 5 到 7 年後的公司時，我們希望超越我們今天擁有的額外成長引擎，我們開始真正鋪設一些鐵軌以在那裡進行一些投資。我們對此感覺很好。

And then when you get to the AUM-based businesses, I honestly think it's a tale of 2 cities right now. You just have an overall market and macro shift in terms of product types, whether that is a move from mutual funds to ETFs or lower-cost products and I think a continued move overall, especially in developed markets from active portfolio management to passive portfolio management driven partially by price. So in some ways, we're a victim of success that we've had over many years, but I believe that we have been extremely thoughtful and aggressive in figuring out how do we continue to invest not just in differentiated investment management solutions, but as Dennis mentioned, technology and operational platforms that will really allow us to deliver value to a broader set of intermediary and institutional clients in the future.

然後，當你談到基於資產管理規模的企業時，老實說，我認為現在這是兩個城市的故事。就產品類型而言，整體市場和宏觀發生了轉變，無論是從共同基金轉向ETF 還是低成本產品，我認為總體而言，特別是在已開發市場，從主動投資組合管理轉向被動​​投資組合管理是持續的轉變部分由價格驅動。因此，在某些方面，我們是多年來所取得的成功的受害者，但我相信，我們一直非常深思熟慮和積極主動地思考如何繼續投資，不僅是差異化的投資管理解決方案，而且正如丹尼斯所所提到的，技術和營運平台將真正使我們能夠在未來為更廣泛的中介和機構客戶提供價值。

So really long-winded answer to say, how should you think about it? I think it will continue to be a little bit choppy, but we're looking really at how are we increasing client adoption. Paul's point around larger conversions, expanding into different segments and really continuing to rethink what our asset management offering is both proprietary and third party to drive value. So it's there, you're on it, we're on it. And Jay, if you want to provide a little commentary maybe underneath institutional around DB and different segments there. And I can always come back, Ryan, and unpack anything I said.

這麼回答真是囉嗦，你該怎麼想呢？我認為它會繼續有點不穩定，但我們正在真正研究如何提高客戶採用率。保羅的觀點圍繞著更大的轉換，擴展到不同的細分市場，並真正繼續重新思考我們的資產管理產品是專有的還是第三方的，以推動價值。所以它就在那裡，你在上面，我們在上面。 Jay，如果你想提供一些評論，也許可以在 DB 和不同部門的機構下提供一些評論。瑞安，我隨時可以回來，解開我所說的一切。

Sure. Thanks, Ryan. Certainly, planned corporate defined benefit plans, making the decision to annuitize. We've touched on this in the past. It continues to be a reality in the corporate DB space. Certainly in the rate environment that we've experienced over the last couple of years. It's encouraging to see a few reports out there that the pace of annuitization has slowed over the last 6 months and also talking to some of our clients who may experience a funding status over 100%. Some are utilizing that cash to fund other opportunities instead of moving towards annuitization.

當然。謝謝，瑞安。當然，規劃企業設定受益計劃，做出年金化的決定。我們過去已經談過這個問題。它仍然是企業資料庫領域的現實。當然是在我們過去幾年經歷的利率環境中。令人鼓舞的是，看到一些報告表明年金化的步伐在過去 6 個月裡有所放緩，並且還與我們的一些資金狀況可能超過 100% 的客戶進行了交談。有些人正在利用這筆現金來資助其他機會，而不是轉向年金化。

What I'm most encouraged about those as I look across the new business activity that we did close in the first quarter of this year, the new names we brought in span U.S. corporate defined benefit U.S. endowments, U.K. master trust business, know this business. So we continue to see activity across all of those sectors and the new names as we work through some of those planned annuitizations that we've talked about now for a bit.

當我回顧今年第一季我們完成的新業務活動時，最讓我感到鼓舞的是，我們引入的新名稱涵蓋美國企業固定收益、美國捐贈基金、英國主信託業務，了解這項業務。因此，當我們處理我們現在討論過的一些計劃年金時，我們繼續看到所有這些部門和新名稱的活動。

And Ryan, if I could that (inaudible). Ryan, this is Paul. Just to add one other thing. With regard to the FDIC program, I know you know this, but I just wanted to call it out. We did not recognize that as a sales event. So that's very strong revenue and profitability that the unit and the firm is getting, but that is not a sales event. So recognize that lift that's not in there, but the lift -- the decrease associated with moving out of mutual funds to ETFs and other passive implements are in there.

瑞安，如果我可以的話（聽不清楚）。瑞安，這是保羅。只是補充一件事。關於 FDIC 計劃，我知道您知道這一點，但我只是想指出這一點。我們並不認為這是一場銷售活動。因此，該部門和公司獲得了非常強勁的收入和盈利能力，但這不是銷售活動。因此，要認識到，提升並不在那裡，但提升——從共同基金轉向 ETF 和其他被動工具相關的減少卻在那裡。

And that was our final question. I would now like to turn the call over to CEO, Ryan Hicke.

這是我們的最後一個問題。我現在想將電話轉給執行長 Ryan Hicke。

Thank you. As I mentioned, we started the quarter with strong financial results and are poised to drive future success. We also announced in Q1 the hire of Sean Denham as Dennis' successor as CFO for SEI. Sean is a terrific addition to the SEI executive team and brings a wealth of experience and talent to drive our future growth.

謝謝。正如我所提到的，我們在本季伊始就取得了強勁的財務業績，並準備好推動未來的成功。我們也在第一季宣布聘請 Sean Denham 接替 Dennis，擔任 SEI 財務長。 Sean 是 SEI 執行團隊的絕佳補充，他帶來了豐富的經驗和人才來推動我們未來的發展。

But I would like to close by thanking and acknowledging my friend, Dennis McGonigle. For almost 40 years, Dennis has set the standard for leadership, culture, stewardship and care and that care extended to shareholders, clients, employees and our families. I have the deepest amount of personal and professional respect and admiration for Dennis, and I'm extremely proud to have worked with him for 26 years, learned from him for 26 years and laughed with him for 26 years. Many more times ahead for us in the future, but on behalf of all of us at SEI, I want to say thank you to Dennis, and thank you to everybody for joining today's call.

最後，我想感謝並感謝我的朋友丹尼斯·麥格尼格爾。近 40 年來，丹尼斯為領導力、文化、管理和關懷樹立了標準，並將這種關懷延伸到股東、客戶、員工和我們的家人。我對丹尼斯懷有最深切的個人和職業尊重和欽佩，我非常自豪能夠與他共事 26 年，向他學習 26 年，與他一起歡笑 26 年。未來我們還有很多機會，但我謹代表 SEI 的所有人，向丹尼斯表示感謝，並感謝大家參加今天的電話會議。

That does conclude our conference for today. Thank you for your participation. You may now disconnect.

我們今天的會議到此結束。感謝您的參與。您現在可以斷開連線。