Question · Q3 2025
Jeff Schmitz asked about the integrated cash program, specifically if SEI is earning near the Fed funds rate, if any portion is fixed-rate, and how potential Fed easing might impact it. He also questioned the recent higher expense growth in private banking, asking if it was due to talent investments and if offshoring would reduce future growth.
Answer
Paul Klauder (EVP and Head of Independent Advisors Solutions Unit) explained that SEI earns about 370 basis points on integrated cash, yielding 55 basis points to investors, and outlined how investor yield would be adjusted with rate changes. Ryan Hicke (CEO) and Sanjay Sharma (EVP, CEO, and Global Head of Private Banking and Wealth Management) stated that private banking expense growth was primarily due to investments in talent and onboarding backlog for new clients, with no unusual trends, and that successful delivery is paramount.