SEI Investments provides outsourced investment and fund processing for about 7,000 private banks, trust companies, investment advisors and managers, and institutional investors. Services include securities and trust processing and accounting, portfolio analysis, treasury and cash management, and performance measurement reporting. Its fund processing segment serves managers and distributors of mutual funds, hedge funds, and alternative investments. The company administers more than $403 billion in mutual fund, separate account, and pooled assets. It also provides customized investment programs and manages some $53 billion for retirement plans, not-for-profits, and affluent individuals and families.
The company's Investments in New Businesses segment offers investments to ultra-wealthy families in the US and is involved in business development in the Middle East through its office in Dubai. SEI operates primarily in the US, but also has offices in Canada, Western Europe, Asia, and South Africa.
SEI's growth strategy includes adding to its service offerings and expanding internationally. The company spent more than $100 million each year from 2008 to 2010 on research and development of new technologies. It is emphasizing its Global Wealth Platform, which serves private banks and independent wealth advisors in the UK and will soon be available in the US.
SEI owns around 40% of LSV Asset Management, but stopped reporting the affiliate's business results with its own in 2010. As a result, revenues were down slightly that year. However, net income was up, thanks in part to new business from institutional investors and investment managers and gains from structured investment vehicles. Market depreciation during the economic downturn negatively impacted the company's assets under management in 2008 and 2009, but those rebounded in 2010 as well, which also helped the company's results.
As capital market conditions continued to improve, so did SEI's revenues, which grew 3% to $929.7 million in 2011. The company's average assets under management also grew by nearly 10% that year, both as a result of market appreciation and from new business. However, net income decreased 12% to $205 million as the company continued to invest in research and technologies.
Founder, chairman, and CEO Alfred West owns 14% of SEI. – less