SEI Investments Company

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Ladies and gentlemen, thank you for standing by, and welcome to the SEI second quarter 2021 earnings call. At this time, all participants are in listen-only mode. We will have a question-and-answer session following each presenter, and instructions for queuing up will be given at that time. Should you require operator assistance, press star zero on your phone's keypad. And as a reminder, this conference is being recorded. I'd now like to turn the conference over to our host, Chairman and CEO, Al West. Please go ahead.

Thank you very much. Good afternoon, everybody. Welcome. All of our segment leaders are on the call with me here, as well as Dennis McGonigal, CFO, SEI CFO, and Kathy Heilig, SEI's controller. I'll start by recapping second quarter 2021. I'll then turn it over to Dennis to cover LSB and the investment in new business segment. After that, each business segment leader will comment on the results of their segments. As usual, we will field questions at the end of each report. So now let's turn our attention to the financial results of the second quarter 2021. Second quarter revenues grew 19% from a year ago. Second quarter earnings increased by 32% from a year ago. Second quarter EPS of 93 cents grew 37%. percent from the 68 cents reported in the second quarter of 2020. Second quarter asset balances grew by approximately $7 billion, while LSV's assets under balances grew by $800 million. During the quarter, we repurchased 21 million shares of SEI stock at a price of $61 and 93 cents per share. That translates into 129 million of stock repurchases. Now I'd like to provide you our situation today. One of our businesses is steadily growing its revenues and profits. That's IMS. Another business, the RIA segment, has recently been executing against the new technology-driven strategy. Currently, we are experimenting, experiencing strong indicators that the business has turned the corner. And we're very excited about that. Another business private banking is diligently working on an implementation backlog, a strong sales pipeline, and enhancing client satisfaction. The fourth business is the institutional investor segment. While it faces strong headwinds in the legacy OCIO client base, it's addressing growing segments of OCIO and ECIO. We're also searching for growth engines beyond our four traditional businesses. Here we are finding opportunity in markets and services adjacent to our four main business engines. You have been exposed to a couple of these innovative young businesses. First, GRC, offering global regulatory compliance services. Second, SEIIT services, whose leading service is cybersecurity. And third, private wealth management, providing a complete platform to ultra high net worth families and individuals. Next, let's turn to revenue production. Net sales events in private banks and investment managers were $13.2 million, of which $9.8 million are expected to be recurring. In addition, net sales events of $2.8 million incurred in the asset management related units. These events reflect positive asset flows investment advisors, and AMD, offset by losses in our legacy institutional investor client base. In a few minutes, unit heads will provide more detail on their specific sales results and their new business opportunities. Now, to grow and prosper in the future, we know that things will never be the same. So we have been busy adopting to new mental models and realities. One such new reality is a remotely distributed workforce. We have been planning how we will work in the future and are currently acting on those plans. Fortunately, we have a lot of positive momentum created during the first half of 2021. We have a strong backlog of sales and implementations and a number of key prospects late in the sales cycle. We have also made progress in repositioning our asset management related business segments. So, net-net, we look forward to capturing the opportunities inherent in significant change. And this concludes my formal remarks, so I will turn it over to Dennis to give you an update on LSV and the investment in our new business segment. After that, our segment heads will update the results in their segments.