SEI Investments Co. (NASDAQ:SEIC) Q3 2020 Earnings Conference Call - Final Transcript

Oct 21, 2020 • 04:30 pm ET

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SEI Investments Co. (NASDAQ:SEIC) Q3 2020 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

Thank you. [Operator Instructions] And we'll go to the first line of Ryan Kenny with Morgan Stanley. Please go ahead.

Analyst
Ryan Kenny

Hey, Dennis. How are you?

Executive
Dennis J. McGonigle

Hey, Ryan. Good. Welcome onboard.

Analyst
Ryan Kenny

Thank you. Just want to get a sense of how you're thinking about the trajectory of One SEI spend, do you still think that it's something that peaks this year and in 2021, should more or less reasonable 4Q 2019 or is there more to do that next year?

Executive
Dennis J. McGonigle

Yeah. There's -- I think we said on the last call, there's still more to do in the early part of the year, but it will start to come down over the course of the first half of the year and then certainly into the second half of the year. So we're -- as we said in the past, we're -- it's a project and it will take the trajectory more of a project than a sustainable platform build.

Analyst
Ryan Kenny

Thanks.

Executive
Dennis J. McGonigle

You're welcome.

Operator
Operator

Thank you. Next we'll go to the line of Robert Lee with KBW. Please go ahead.

Analyst
Robert Lee

Great. Hi. Thanks, Dennis. So far all is well with you.

Executive
Dennis J. McGonigle

Yeah. Thanks, Rob.

Analyst
Robert Lee

Thank you, on the hear. Two quick questions. I guess, just with LSV, I mean obviously, they've been struggling with flows and I mean assets down in bunch year-to-date by 24%. I mean, I don't know if there's any color insight you may have into kind of it's known -- if they've anything in terms of known redemptions that we should be thinking about as we look ahead or any reason to think that this, you know, there could be some change in the near-term trends over the coming quarters?

Executive
Dennis J. McGonigle

Yeah. I mean, it's obvious the trends aren't good, they're not good for value investing generally. And since LSV is very specific to that segment of the market they're clearly caught up, caught up in that. I can't say, there's real predictability kind of quarter-to-quarter as in it. The flows this past quarter, about half of the negative flows were from lost clients, about half of the negative flows were from existing clients. So they were really more just rebalance away with some existing clients. Arguably, the outlook for value improves and that potentially would reverse itself. And as capital gets committed to this segment of the equity markets and I would say, it's really not as -- not predictable.

And if you remember back a couple of quarters, they'd actually had positive moves. So it's even less predictable. So we're just [Speech Overlap] convicted talked about this on the last call, with a high conviction about what you're doing, high conviction about value. They know what they're really good at. Those are the kind of shocker the department has been through. This type of thing before even though, yeah, this one is more prolonged than other periods. And the historical perspective for what it's worth would suggests that when it turns, it will turn very much as our favor.