Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
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| So SEI standing as a market leader in that space, our seamless integration of technology, operational and investment expertise, I think, are going to enable us to win moving forward |
| Bank from TRUST 3000 to SWP, helping solidify our SWP SaaS solution as market ready |
| We talked about private credit and real estate and infrastructure before but I think we’re in a really, really good spot for the future |
| I think, the runway is fairly long for what we see out there, and I think we’re in a really good spot |
| We’re very excited about what we see in the future there |
| We are proud of our momentum as we’re executing our long-term growth strategy while managing our company for profitability |
| I’m excited about what we see ahead, knowing we are not satisfied or complacent, we will keep executing and innovating |
| As I mentioned, our momentum continued through the third quarter, and we made good progress on our strategic initiatives |
| Investment advisors had net positive cash flows of approximately $612 million, primarily driven by our separately managed accounts, strategist partner solutions and open architecture technology and custody that support advisor-driven investment flexibility |
| So I think we have a lot of traction, and we expect to see some good results in the future |
| Sanjay is very consistently putting positive results on the board |
| So we feel really good about where we are on a pipeline perspective |
| We believe these efforts are positioning us well to capitalize on future growth opportunities and increase sales |
| Our Investment Managers business had another good quarter, delivering strong revenue and earnings growth |
| We had another really solid quarter, and we expect that to continue |
| We are really excited to see that we are winning across alternatives, traditional and global segments |
| So, we really felt that we have a really strong financial foundation, we have very effective business models and that we’re very scrutinizing around making sure we don’t sacrifice the long term and what we’re really all about, which is long-term strategic growth and value just because of some short-term pressures |
| And we think that that puts us in a well position for growth as we move forward into the fourth quarter |
| Globally, we also continue to see strong flows from existing relationships, and we have expanded our sales leadership and client service functions on the ground to enhance our pipeline development |
| This provides significant opportunity for SEI |
| So, we are getting really, really good feedback |
| Next, Private Banking drove another solid quarter, signing three deals and re-contracting five clients |
| The team also successfully delivered on their backlog, implementing five clients on the SEI Wealth Platform, representing more than $15 million in recurring revenue from the backlog |
| On our flows, we’ve had very strong growth on the AUA side, the custody platform, very strong growth on the SMA, the ETF, the strategist program and we’ve seen a little bit of continued outflow of the SEI higher fee funds |
| We see those opportunities not only as the ability to strengthen our relationship, but also to potentially move them into other products that are better for them and better for us long term |
| Performance fees are a reflection of continued positive relative performance |
| Our clients are referencing us very happily, and they’re glad to do it and we’re in a good spot |
| Dennis McGonigle The new product comment is -- and Phil’s team has done such a great job of building really strong relationships with our clients and the -- particularly the clients that continue to grow and expand |
| We’ve had to absorb and Sanjay and his team has done a terrific job through new sales, increased revenue to continue to smooth that trajectory and drive those margins higher |
| All new advisors benefit from the enhanced investor portal and we’re seeing solid adoption across the entire client base |
| Statement |
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| In our asset management-related businesses, net sales were approximately negative $7.6 million, primarily due to losses and repricing in our institutional business |
| Revenues for the quarter were down $4.7 million due to net client asset losses |
| Corporate defined benefit curtailments and annuitizations continue to be headwinds in the UK and the U.S |
| We experienced increased flows into our newer strategic asset management solutions and platform-only programs and negative flows from our more mature mutual fund products |
| Q3 was really impacted on the asset management side |
| As I mentioned on the call, we have some losses that were announced over the last couple of years |
| In the Institutional Investors segment, net sales events for the quarter were negative $5.8 million, reflecting positive client signings offset by losses and repricing and client retention activities |
| So there, there was some margin compression, but it wasn’t a severe plus with breakpoint pricing, the first assets you would lose in down markets or the lower-price assets relative to most client contracts |
| I mean, if you look at Q3, Q3 was a little bit down relative to Q2 in sales |
| So, I guess, what I can use is, first use of historical reference, the last time we’ve been through that type of a difficult market cycle |
| We need to relentlessly challenge ourselves to improve our execution and drive growth |
| And we knew that |
| We know everybody in the industry across the board, there’s no hide from it, is under fee pressure |
| Q3, sometimes you get a little bit of like the summer and things drag on, things push into Q4 but really, I think Q3 was primarily impacted by what we’ve just talked about and what Jay went through |
| It looks like year-to-date, you’re running just below 23%, and that’s just kind of below your historical mid- to high-20% range |
| And then maybe just kind of quickly lining up some of your sales and pipeline commentary, and it just looks like some of those metrics are just down quarter-over-quarter |
| Dennis McGonigle And Ryan, just to close the loop, one of those losses that we had talked about for probably close to a year has still not matriculated at all |
| But that’s one of the things that the private banking business will have to absorb when it happens |
| Expenses in the quarter were down from the second quarter of 2023, reflecting the efforts by Sanjay and the team to bring Private Banking back to higher levels of profitability |
| We’re not deviating from the previous stance that that business is going to get back to historical margins over the next few years |
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