Good day, ladies and gentlemen, and welcome to the SS&C Technologies Third Quarter 2016 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. As a reminder, this conference is being recorded. I would like to introduce your host for today's conference, Ms. Justine Stone, Head of Investor Relations. Ma'am, please go ahead. Justine Stone - SS&C Technologies Holdings, Inc.: Hi, everyone. Welcome and thank you for joining us for our Q3 2016 earnings call. I'm Justine Stone, Investor Relations for SS&C Technologies. With me today on the call is Bill Stone, Chairman and Chief Executive Officer; Norm Boulanger, President and Chief Operating Officer; Rahul Kanwar, Senior Vice President and Managing Director of Alternative Assets; and Patrick Pedonti, our Chief Financial Officer. Before we get started, we need to review the Safe Harbor statement. Please note that various remarks we make today about the future expectations, plans, and prospects, including the financial outlook we provide, constitute forward-looking statements for the purposes of the Safe Harbor provisions under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors including those discussed in the risk factor section of our most recent Annual Report on Form 10-K, which is on file with the SEC and can also be accessed on our website. These forward-looking statements represent our expectations only as of today, October 27, 2016. While the company may elect to update these forward-looking statements, it specifically disclaims any obligation to do so. During today's call, we'll be referring to certain non-GAAP financial measures. A reconciliation of these non-GAAP financial measures to comparable GAAP financial measures is included in…

Our first question comes from the line of Dan Perlin with RBC Capital Markets. Your line is open. Please go ahead.

Thanks. Good evening guys. I had a question just about the reorganization quickly. If the plan there, or I should say that, was the plan a function of the change in end market demand and environment, or a function of the mix that's shifting inside your business given the assets that you've acquired over the past say, couple of quarters? Rahul Kanwar - SS&C Technologies, Inc.: I think, it's primarily the latter, it's primarily that we have acquired a lot of capability over the last several years. And what we're trying to do is bring that capabilities together to be able to go after these market segments in kind of the most effective way possible.

Okay. And then, I think, Bill in the past you guys have mentioned, Geneva has something like 400 some odd clients, and only about 15% or something like that are not currently – or are currently fund administrative clients. I'm wondering, of that other 85% of the pool, what does that look like, and what's the opportunity there, and is there any update in terms of conversions? William C. Stone - SS&C Technologies Holdings, Inc.: Well, I think, that the Geneva business continues to be strong and we've been able to – when you look at fund administration from a fund administrator basis, there is about 300 fund administrators, and my guess is that Geneva is in about probably 40 of them, ranging from JPMorgan to smaller fund administrators. Rob Roley has been running that business for the last six months. He's done a great job, he's got a big pipeline, and we think that, that will continue to be a strong area for the business.

Okay. And then just lastly, I think last time we talked, you mentioned kind of a deal pipeline not just with acquisitions, but actual signings of deals, of 10 deals that could be $5 million annualized in revenue each. Where do we spend on that pipeline, are we any closer to getting some down the road? And then the other part of the question is, you had also mentioned that there were two to three institutional clients, I think, that you were expecting to have fully implemented, and now it's going to be a big driver to be fourth quarter organic growth (24:07). Thanks, guys. Rahul Kanwar - SS&C Technologies, Inc.: We still have a big pipeline of large deals. We are, knock on wood, getting closer to closing a number of them. And certainly we have weekly, if not daily, conversations about when we're going to get ink on paper. I think as far as where we go from there, I think the business will remain strong. I think we have lots of opportunities, and I think that our business has performed, and I think will continue to perform.

Thank you. And our next question comes from the line of Ashish Sabadra with Deutsche Bank. Your line is open. Please go ahead.

Hi. Thanks. Just a quick question on the organic growth, what are the organic growth expectation for 4Q? Patrick J. Pedonti - SS&C Technologies Holdings, Inc.: In the range that we provided, it's between 3.6% and 5.7%.

Okay. That's helpful. And just quickly on the $68.4 million of acquisition revenues in quarter, how much of it is Citi, and expectations for how Citi has been trending, and expectations for Citi revenues for the full year? Patrick J. Pedonti - SS&C Technologies Holdings, Inc.: Citi revenue in Q3, I think it was $53.4 million. And we expect that to trend down for the fourth quarter, probably in a range of somewhere around $50 million plus or minus.

That's helpful. And then just a quick question around the guidance for the full year, I think the organic growth guidance for the full year was in the range of 3% to 4.5%. Just wanted to confirm that because you've confirmed the revenue range, I believe you're comfortable with that organic growth guidance as well, of that 3% to 4.5%? Patrick J. Pedonti - SS&C Technologies Holdings, Inc.: I think, the full year guidance, now we've had little bit stronger results from Citi, and we got a little bit of revenue from Salentica. So it's about 2.3% or 3% right now full year.

Okay. That's helpful. And maybe one final question around the drivers for organic growth improvement in the fourth quarter. I'm just wondering if you can talk about, like what were the drivers for organic growth improvement in this quarter as well just in terms of the core business versus contribution from Advent and stuff like that, if you can help us parse what have been the drivers for organic growth. Thanks. Normand A. Boulanger - SS&C Technologies Holdings, Inc.: Okay. I'll take that. This is Norm. I would say, the best way to look at it is, for Q3 the two, three, the three primary drivers of growth were the institutional asset management segment, our fund services team, and Advent.

Thank you. Our next question comes from the line of Peter Heckmann with Avondale. Your line is open. Please go ahead.

Good afternoon everyone. Patrick, could you help us size the two recent acquisitions, I think you said Salentica has closed, Wells potentially, I believe Bill said you believe you can close in December. But could you help us size those, and if possible talk about what type of margins we might see from them early on? Patrick J. Pedonti - SS&C Technologies Holdings, Inc.: Salentica is about somewhere, it's a pretty small acquisition, somewhere around $3.5 million a year. The Wells acquisition, I think we said that they've got $42 billion in assets, and the average key is probably around 8 bps or so. So I think that's around $35 million, somewhere around that, a year. But we didn't provide Wells' guidance at this point, and we will once it closes.

Okay. That's good. And then as regards to the deal with Russell, which you pressed really and talked about on the last call press release recently, when do we expect that to ramp up to its full run rate, would that be about mid-2017? Rahul Kanwar - SS&C Technologies, Inc.: I think that, we will certainly expect to see a substantial portion by mid-2017, but the overall ramp up plan is about 18 months.

18-months. Okay. And then just lastly, are you seeing any hesitation on the part of your customers in terms of spending plans as they try and navigate a more difficult environment, fee pressure, the fiduciary rule, potential consolidation in the industry? Do you feel, or do you see decision cycles lengthening more on the software side, or are you seeing deals continue to close as expected? William C. Stone - SS&C Technologies Holdings, Inc.: I think, in general, Pete, that in the financial institutions the major banks are really, in certain sectors, very anxious to improve their operating environment and be able either to take technology in are outsourced to providers like us. And I think, the Russell win is kind of a wakeup call to a lot of long only places that are looking to reduce their footprint as far as their cost base. Once you get these things in large-scale in these big places, the overhead from the data centers and all the cost of the bureaucracy become pretty burdensome on these individual businesses. And so we've seen a number of big companies come see us about what we're offering to Russell, and whether or not we could offer the same thing to them.

Great. I'll go back in the queue.

Thank you. And our next question comes from the line of Brian Essex with Morgan Stanley. Your line is open. Please go ahead. Brian L. Essex - Morgan Stanley & Co. LLC: Hi, good afternoon, and thank you for taking the question. I was wondering if you could start by maybe touching on Varden, Primatics and Citi and how margin progression is progressing there. How long do you think before you get those kind of in line with corporate averages, and particularly with Citi, what kind of steps you're taking there, and what that trajectory might look like with that one? William C. Stone - SS&C Technologies Holdings, Inc.: Well, I'll let Rahul comment in a second, but as Patrick mentioned in his remarks that in a second quarter of 2016, Citi was 18.8% margins, and we acquired them in March of 2016. So we probably picked up 600 basis points, 700 basis points in the first quarter that we own them, second quarter of 2016 that would be. And then in the third quarter of 2016, I think, we reported that the margins were 24.3%, which is another 450 basis points or 550 basis points above what we did in Q2. So that's a pretty fast ramp, and we have a transaction services agreement that will run for a year, and when that year is up, that will be a pretty nice kick into our margin expansion. I don't know what you'll say, Rahul. Rahul Kanwar - SS&C Technologies, Inc.: No. I think, that's right. Also just to add, the big areas for us have been focus on the technology cost, and vendors, and renegotiating some of those contracts. And also how many contractors we use, and how efficiently we can do that. And that's worked pretty well, and…

Thank you. And our next question comes from the line of Sterling Auty with JPMorgan. Your line is open. Please go ahead.

Yeah. Thanks. Hi guys. So looking at the nice acceleration in organic revenue growth into the fourth quarter, how would you characterize that improvement in terms of just the mix now that you've annualized Advent versus maybe just generally some improvement that you're seeing in, in either broader execution, or maybe even some improvement in the health of your end markets? William C. Stone - SS&C Technologies Holdings, Inc.: Well, I think, Sterling, I think that Q2 was a real tough comp for 2016 over 2015. Q3 was a little bit easier, and we did have some of the acquisitions go organic. And we're focusing on the business, and the more we focus, the better that business gets. And as far as the end markets, we're seeing some surprising strength in various of our products. I think we just sold the largest MarginMan in history, about a $2 million deal over five years. We've just sold some really nice Precision LM business. We have a lot of capability across our product portfolio. And I think it's really that, if we continue to execute, I think, our business can continue to perform.

That makes sense. And maybe just on the Citi business, you're seeing overperformance relative to what you kind of guided to when you first bought it. How much of that is related to kind of the positive customer retention comments that you had earlier in the call versus other factors? Rahul Kanwar - SS&C Technologies, Inc.: I think it's both. I think we've had an opportunity to get to know those customers and show them the combined offering, in some cases we've been able to either retain them when they were looking to leave, or up sell them on several of our other products and services. And also we're doing a little bit better with synergies than we had originally thought. And we think that process is going to keep going pretty well.

Great. Thank you.

Thank you. And our next question comes from the line of Hugh Miller with Macquarie. Your line is open. Please go ahead. Hugh M. Miller - Macquarie Capital (USA), Inc.: Hi. Thanks for taking my questions. Just I guess, a quick follow up or two on the Wells transaction. Definitely I appreciate some of the insight you gave. If you could just give us a feel of kind of what their business may be, the EBITDA margins that they were kind of running at, and if you have an expectation as to the time horizon which is realistic to kind of get them up to your standard? Patrick J. Pedonti - SS&C Technologies Holdings, Inc.: Yeah. I think, in general, the Wells business was running in the 10% to 15% EBITDA range. What we would be shooting is 40% to 45%. And my guess is you're looking again at probably an 18 to 24 months transition. It depends how quickly we can scale parts of their technology infrastructure. And then also, they have a pretty nice sales pipeline themselves. And so, if we can help them bring some of that to fruition, I think, it can – perhaps it could be at the low end of that 18% to 24%. Hugh M. Miller - Macquarie Capital (USA), Inc.: Okay, great. That's definitely helpful. And I guess as you think about kind of some of the headwinds within the hedge funds space and the macro environment there, but also some of the strength that you're seeing in terms of the recently acquired franchises that you're seeing some synergies and kind of tailwinds to selling efforts. When we think about organic growth in 2017, can you just give us a rough sense as you think about you moving into next year, how…

Thank you. And our next question comes from the line of Rayna Kumar with Evercore ISI. Your line is open. Please go ahead.

Good evening. Could we get your AUA number for the quarter and your expectation for AUA growth for the next 12 months? Rahul Kanwar - SS&C Technologies, Inc.: Yeah, the AUA number for the quarter is $1.093 trillion. We do not guide forward AUA.

Okay. But just overall thoughts, when that number.. Rahul Kanwar - SS&C Technologies, Inc.: As Bill mentioned, we've got lots of opportunity both within our client base. We continue to see really strong performance particularly in private equity and real estate. And the pipeline is strong. And on the backs of some of the recent wins, we think we're getting interest from similar organizations. So, we're pretty optimistic.

Great. That's helpful. You discussed your progress with post-trade matching in the U.S.? Normand A. Boulanger - SS&C Technologies Holdings, Inc.: Yeah. William C. Stone - SS&C Technologies Holdings, Inc.: Yeah. Go ahead, Norm. Normand A. Boulanger - SS&C Technologies Holdings, Inc.: Yeah. So, we're working very closely with the different partners in that space as well as the SEC. It's still little bit slower than we like in terms of the delay on the bank side to be able to change some of their systems to allow processing. But we're still optimistic that we can win some business over the course of Q4 and start to see more improvement going into next year. But it's going to take a little bit. All the partners have to come together to make sure we can communicate the settlement process across each of the systems. And it's the large banks – (46:28) side of the banks that's the delay at the moment.

Got it. What was the revenue growth in the Alternatives business in third quarter, and could you just discuss client retention? Patrick J. Pedonti - SS&C Technologies Holdings, Inc.: Yeah. This is Patrick. So client retention, we measure it on an LTM basis for the last 12 months. So, on an LTM basis for the last 12 months, it was 95.7%. And that's a little bit of an – I'm sorry, 95.9% – and it's a slight improvement from LTM as of June, which was 95.7%. Did you have another question? I'm sorry if I missed it.

Yeah. And what was the organic growth rate, revenue growth rate for the Alternatives business in third quarter? Patrick J. Pedonti - SS&C Technologies Holdings, Inc.: It was about 1.8%.

Okay. Thank you.

Thank you. And our next question comes from the line of Chris Donat with Sandler O'Neill. Your line is open. Please go ahead. Christopher Roy Donat - Sandler O'Neill & Partners LP: Thanks. Good afternoon. Thanks for taking my question. Wanted to ask Bill about something you'd said at a conference a couple months ago about how after the acquisition of Primatics, you had about 55 clients on it, but you thought you could get it up to 550. Just trying to size the opportunity there. Is this something that, based on the math that was available, it looks like Primatics clients are doing about $1 million in annual revenue. Can it scale up at that level or do you think you're going to move sort of down market and get into some smaller clients if you can't scale into the hundreds? William C. Stone - SS&C Technologies Holdings, Inc.: Yeah. I think, obviously, that their clients now are places like JPMorgan and PNC and Fannie-Mae. So you know what there's not 550 of those, right? So, obviously, we're going to down market through two to three tiers of various banking organizations. But there's probably multi-billion-dollar banks, there is probably about 500 of them, I'll bet. So I think that we have opportunities to probably sell $500 million in assets all the way up. And obviously, a lot of banks are consolidating. When you consolidate, you acquire a bunch of loans. And there's an awful lot of requirements coming out of the Fed and the SEC about reporting on those loans. And the EVOLV platform is a pretty robust capable platform that we think will get a lot of traction. And I think that we have lots of opportunity in that space. Christopher Roy Donat - Sandler O'Neill & Partners LP: Got it. Thanks very much.

Thank you. And our next question comes from the line of John DiFucci with Jefferies. Your line is open. Please go ahead.

Hi, guys. This is AJ Ljubich on for John. I was just looking at cash flow in the quarter and I think it came in a little bit late versus expectations. I think deferred revenue is down a bit sequentially. Would you point to that as the reason for maybe a little bit of cash flow lightness or was there anything sort of one time in the quarter? Patrick J. Pedonti - SS&C Technologies Holdings, Inc.: We don't guide cash flow by quarter. We guide it for the full-year. So I think we'll see – probably the DSO was a little bit higher than we expected would probably the disappointment in the quarter. But I think we'll make that up in the fourth quarter and we'll hit the overall guidance for the full year that we just provided.

Okay. Thanks. And then one sort of more strategic question. I think the Salentica acquisition is very interesting. It's sort of technological acquisition, as an adjacency to the RA wealth management market. As you look out into other potential acquisitions, are there other adjacencies that you'd like to enter within sort of that wealth management space? William C. Stone - SS&C Technologies Holdings, Inc.: Well I think there's a lot of opportunity in the wealth management space because, like I said, it's one of the few areas where you have organic growth in the industry as a whole. So as you look at what Black Diamond offers and then also what Salentica offers, some of the things that people are going to want are more sophisticated plans, investment plans that are easy to read and easy to understand. As you start going the mass affluent market, right, everybody is not a CFA and a CPA. A lot of people are doctors or lawyers or business people, teachers. So that the financial information is going to have to be able to be presented in a way that is quite understanding. We also think that our learning process with our Zoologic process and Nervanix can be an addition into this space as well as people want to get increasingly conversant with how people are investing their money and what risks they are taking, and what expectations they should have on a reasonable basis, right. Most of us with our retirement funds aren't trying to go to Vegas and put it on red. I think it's much more of trying to understand how you maintain your principal balances and get as much income as you can off those principal balances. So, I think there's a lot of things across that in the wealth management sector. We've been putting a very big push on tax across all of our businesses. And we think that's another area that will be quite attractive to the mass affluent.

Great. Thank you.

Thank you. And our next question comes from the line of Chris Shutler with William Blair. Your line is open. Please go ahead. Christopher Charles Shutler - William Blair & Co. LLC: Hey, guys, good afternoon. Just wanted to touch on organic growth for a second here. So, it looks like the – I think last quarter, Patrick, you provided a full-year guidance of 3% to 3.5% organic. And today, I think you said 2.3% to 3% despite the fact that Q3 was relatively in the middle of the previously-provided range. So, what happened to make Q4 a little bit lower? Obviously, FX isn't helping you guys, but on the Alternatives side I guess particularly with what's happening in that business, I would think that markets would be helping? Patrick J. Pedonti - SS&C Technologies Holdings, Inc.: I think, in summary, we are getting hurt by FX especially the British pound. I think it was down to 8% from Q2 to Q3. In addition, I think, the guidance we provided for Q4 is – the midpoint of that guidance is exactly the same guidance we provided at the end of Q2 except we upped it a little for Salentica. But what we're seeing is we're seeing a little bit of a shift in some of the components that are contributing to the growth from Q2. And we got a lot of products and lot of it kind of shift around. But I think in summary, from where we were at the end of Q2, we're getting better performance out of the Citi, better revenue performance out of the Citi Fund Administration business, especially in retaining clients longer than we expected originally when we acquired them, and the growth in the core fund administration business is a little bit slower than…

Thank you. And our next question comes from the line of Patrick O'Shaughnessy with Raymond James. Your line is open. Please go ahead. Patrick J. O'Shaughnessy - Raymond James & Associates, Inc.: Hey, good afternoon. So first question, lot of the chatter right now seems to be around asset manager consolidation, and we saw that with Janus and we're hearing others asset managers talk about that. Does that post potential threat to your software business or do you think even if one of your clients consolidates, you probably also working with the other firm that it might join with? William C. Stone - SS&C Technologies Holdings, Inc.: You know, Patrick I didn't know you changed your name from O'Shaughnessy, but even if you did we'll still answer those questions. I think that the Janus Henderson creates some opportunity for us, because as they combine, they start looking at what they do and how they do it. And then they see what we do with Russell and they might give us a shot at being their middle and back office provider. So, in general, when these long-only shops get together, I think it creates more opportunity for us than it creates consolidation of current clients that would not pay us as much because we only have one license instead of two. That's possible as well. But so far, knock on wood, it looks like more opportunity than it looks like headwind. Patrick J. O'Shaughnessy - Raymond James & Associates, Inc.: Got it. And we can't all be blessed with an easily pronounced last name like Stone. So, I'll work on that. William C. Stone - SS&C Technologies Holdings, Inc.: I appreciate that. Patrick J. O'Shaughnessy - Raymond James & Associates, Inc.: One quick follow up question. So, the reorg on the…

Thank you. And I'm showing no further questions at this time. And I would like to turn the conference back over to Mr. Bill stone for any closing remarks. William C. Stone - SS&C Technologies Holdings, Inc.: Again, thanks so much. We look forward to talking to you after the New Year. And everyone enjoy the holiday season and this last two weeks of this American election, which has been quite entertaining. Thank you.

Ladies and gentlemen, thank you for participating in today's conference. This does conclude the program and you may all disconnect. Everyone have a great day.