SEI Investments Company

Invesco reported second-quarter revenues of $1.33 billion, up 20.3% year on year and in line with analysts' expectations, as the 16 custody bank stocks tracked by the roundup collectively beat consensus revenue estimates by 3.2%. Invesco beat analysts' EBITDA estimates while assets under management came in line, and its stock is up 1% since reporting, trading at $30.43. Hamilton Lane posted the group's biggest estimate beat, with revenues of $275.3 million, up 56.5% year on year and 21% above expectations, though its shares are down 6.6% at $88.65. StepStone Group delivered the weakest performance against estimates, with revenues of $300.6 million, up 26.6% year on year but 3.9% below expectations, and its stock is down 11.1% at $44.72. SEI Investments reported revenues of $641.6 million, up 14.7% and 0.7% above expectations, with its stock up 5.7% at $104.35, while Ridgepost Capital posted revenues of $81.28 million, up 11.5% and 3.6% above expectations, though its shares are down 16.9% at $7.51. On average, custody bank share prices are down 3.8% since the latest earnings results.

SEI has opened a Singapore office, extending its global operations into one of Asia's most important financial centers and marking a strategic milestone in its international growth strategy. The firm will initially offer asset servicing, professional services, and distribution of its UCITS funds, with plans to expand regional capabilities and add locally relevant products as client adoption accelerates. The launch comes as assets under management at Singapore-based firms grew 10% from the previous year to reach S$6.7 trillion in 2025, their highest ever level, with more than three-fifths of that AUM sourced outside Singapore and 88% invested globally. SEI provides asset servicing for 48 of the world's 100 largest asset managers and ranks among the top five largest administrators of private assets globally, managing, advising, or administering approximately $2.1 trillion in assets as of June 30, 2026. Connall McGuckian has been named Managing Director, Head of Singapore, joining from State Street Singapore, where he spent close to 14 years, most recently as Chief Operating Officer for Alternatives Investment Solutions in Asia-Pacific.

SEI Investments announced on August 12 a partnership with Zocks, an AI assistant built for financial advisors, adding the tool to the ecosystem of services it offers wealth management clients. The deal came three weeks after SEI reported second quarter results on July 22, when revenue climbed 15% year over year to $641.6 million and operating income jumped 33% to $197.0 million, lifting the operating margin to 31% from 27%. Adjusted diluted earnings per share rose 38% to $1.66, helped by a 3% reduction in share count from buybacks that included 1.3 million shares repurchased for $112.4 million. Underneath those headline numbers, GAAP diluted earnings per share fell 11% to $1.59 and net income attributable to SEI dropped 14% to $195.7 million, while the Investment Advisors segment grew revenue 30% but saw its operating margin compress to 42% from 45%. Erich Holland, who heads SEI's US wealth and advisor business, said the Zocks tie-up is meant to meet advisors where they already are, past the novelty phase of AI, and the company plans webinars, education programming and thought leadership alongside the software.

Schroders has launched the Schroders U.S. Autocallable Ladder Income ETF, trading under the ticker SALI, its first U.S. autocallable income ETF, marketed and supported in partnership with the alternative investment platform CAIS. The fund seeks monthly income through a broad-based, laddered portfolio of autocallable structures with risk management embedded in the strategy design, and it uses the proprietary Bloomberg Schroders US Large Cap Autocallable Index, developed by Schroders and independently calculated and administered by Bloomberg. Schroders partnered with SEI's Advisors' Inner Circle Fund platform to launch the ETF, which is expected to begin trading on the New York Stock Exchange on September 15, 2026. The strategy is led by Portfolio Manager Marcus Durell and supported by Schroders' Risk Managed Investments team, which manages approximately $44 billion in risk managed investment strategies as of June 30, 2026. Schroders reported £867.8 bn, or €1,007.4bn and $1,151.8bn, of assets under management at June 30, 2026, while CAIS serves over 2,000 wealth management firms supporting more than 62,000 financial advisors who oversee approximately $7.5 trillion in end-client assets.

The Carlyle Group is expanding its wealth-management business to support fee revenue growth, targeting more than $2.8 billion in management fees by 2028, up from $2.2 billion in 2025. As of June 30, 2026, fund management fees represented 73.7% of total segment fee revenues, which grew at a 5.7% compound annual growth rate from 2022 to 2025. To broaden its reach, Carlyle completed the acquisition of a majority stake in MAI Capital Management in June 2026, adding advisor-led distribution, and acquired Intelliflo from Invesco in December 2025 for wealthtech capabilities. The company also expanded partnerships with SEI in April 2026 and with UBS's Unified Global Alternatives in June 2025 to develop private-market solutions for wealth and retirement investors. Management expects wealth and retirement to account for 20% of more than $200 billion in targeted inflows through 2028, which could increase fee-generating assets and support management-fee growth.

WTW Investments and SEI have expanded their strategic relationship to develop private markets solutions for the 401(k) and broader U.S. defined contribution market. The collaboration combines WTW's investment research and portfolio implementation capabilities with SEI's trust and platform capabilities through SEI Trust Company, a leading provider of trustee, operational, and administrative services for collective investment trusts. The firms aim to help plan sponsors and participants access more diversified sources of return through structures designed for the operational, governance, and liquidity needs of the defined contribution market. As part of the expanded relationship, WTW selected SEI Trust Company to support the delivery of certain WTW retirement solutions through collective investment trust structures. The firms are also collaborating on the design of new products and structures intended to broaden access to private markets through vehicles suited to the needs of defined contribution plans.

SEI Investments Company reported second-quarter 2026 revenue of US$641.62 million, while net income and diluted EPS from continuing operations eased compared with a year earlier. The company completed a long-running multi-billion-dollar share repurchase program and launched the SEI QiM U.S. Equity Factor Allocation Active ETF, an actively managed U.S. equity factor ETF. The new ETF extends SEI's factor capabilities into a core portfolio wrapper, reinforcing a catalyst around growing flows into models, SMAs, and tax-sensitive ETFs. The combination of higher revenue, extensive buybacks, and the new product launch could influence the investment narrative, though near-term margin pressure remains a key risk.

SEI Investments reported second-quarter 2026 adjusted earnings per share of $1.66, surpassing the Zacks Consensus Estimate of $1.45 and rising 38.3% from the prior-year quarter. Total quarterly revenues were $641.6 million, up 14.7% year over year and beating the consensus estimate of $637.9 million, driven by higher asset management, administration and distribution fees, as well as information processing and software servicing fees. Assets under management reached $606.7 billion as of June 30, 2026, a 17.2% increase from a year earlier, while client assets under administration rose 19.7% to $1.36 trillion. Total expenses increased 8.2% to $444.6 million, and the company repurchased 1.3 million shares for $112.4 million during the quarter.

SEI Investments will report its second-quarter earnings this Wednesday after the market closes. Analysts expect revenue to grow 13.8% year on year, an acceleration from the 7.8% increase in the same quarter last year. The company beat revenue expectations last quarter, reporting $622.2 million, up 12.8% year on year. Peers in the custody bank segment have already posted strong results, with BNY delivering 13.3% revenue growth and State Street reporting a 16.7% increase. SEI Investments shares have risen 9.8% over the past month, and the average analyst price target stands at $107.57 compared to the current share price of $99.40.

StockStory highlights SEI Investments as a cash-heavy stock to buy this week while recommending investors avoid Privia Health and Hamilton Insurance Group. SEI Investments holds a net cash position of $343 million, representing 2.9% of its market cap, and has posted annual revenue growth of 9.9% over the last two years along with a 26.5% return on equity. Privia Health, with a net cash position of $410.5 million or 11.6% of its market cap, is flagged for its modest $2.25 billion revenue base, 5% free cash flow margin, and 0% return on capital. Hamilton Insurance Group carries a net cash position of $805.7 million, equal to 24.1% of its market cap, but faces flat projected sales and earnings per share growth of 14% that lagged its revenue gains.

SEI Investments shares have moved in line with the broader market, returning 9.9% over the last six months compared to the S&P 500's 9% gain. The company's annualized revenue growth of 9.9% over the past two years exceeds its five-year trend, while earnings per share have grown at a 13.2% compound annual rate over five years, outpacing revenue growth and signaling improved profitability. SEI Investments has also posted an average return on equity of 26.5% over the last five years, well above the sector average of around 10%. At $95.93 per share, or 15.7 times forward earnings, the stock's valuation is noted alongside these positive fundamentals.

SEI has expanded its transfer agency solutions with the launch of SEI Transfer Agency and Registry Services, Inc., an SEC-registered entity that will support U.S.-based traditional and alternative asset managers offering retail-distributed funds. The new transfer agency leverages core technology from Envision Financial Systems and extends SEI's capabilities beyond its existing institutional transfer agency, which already services over 1,100 funds representing $395 billion in assets. It will now also service semi-liquid alternative investment funds, including '40 Act registered closed-end interval funds, closed-end tender offer funds, business development companies, and '34 Act registered 3(c)(7) funds. The expansion comes amid rapid growth in semi-liquid funds, which surpassed $530 billion in total net assets by the end of 2025. SEI's Investment Managers business head Phil McCabe noted that the move allows the firm to capitalize on the convergence of private and public markets by leveraging its technology and operations expertise.

SEI has appointed Rob Wrzesniewski as Head of Stratos Technology within its Asset Management business, a newly created role that will advance the technology strategy for Stratos Wealth Holdings. Wrzesniewski, who joined SEI in 1992 and most recently led the Global Solutions team for SEI's Private Banking and Wealth Management business, will focus on advisor technology oversight, platform alignment, and long-term capability development. He will report to Jeff Benfield, Chief Product Officer at SEI, and Jeff Concepcion, Founder and CEO of Stratos, while also overseeing SEI's advisor-facing technologies to ensure scalability and a consistent advisor experience. The appointment follows the December 2025 completion of the first stage of SEI's strategic investment in Stratos Wealth Holdings, which is strengthened by SEI's capabilities across technology, custody, operations, and asset management. As of March 31, 2026, SEI manages, advises, or administers approximately $1.9 trillion in assets.

StockStory identified Dick's Sporting Goods and SEI Investments as stocks with lasting competitive advantages trading near 52-week highs, while flagging Selective Insurance Group as facing challenges. Dick's Sporting Goods is expanding its store footprint amid same-store sales growth averaging 3.6% over two years and a sales outlook calling for 17.2% growth over the next 12 months. SEI Investments posted annual revenue growth of 9.9% over two years, above its sector average, with earnings per share boosted by share buybacks and a market-beating return on equity. Selective Insurance Group is expected to see sales growth slow to 1.7%, with pre-tax profit margins declining by 3.2 percentage points over five years and earnings per share growing just 12.6% annually, underperforming its sector.