SEI (NASDAQ: SEIC) today announced continued strong 2012 global institutional sales resulting in more than $7.7 billion in new institutional assets under management and 25 new institutional clients. The sales growth can be attributed to the company attracting larger investors, such as Iowa Health System, to investment outsourcing, as well as growing its client base in non-corporate market segments including healthcare, nonprofits, unions, and municipalities. Additional U.S. clients added in 2012 include Boart Longyear, The Children's Mercy Hospital, DataCard Corporation, Ferro Corporation, Monroe County Public Employees' Retirement Fund, as well as C. Brewer & Sons Ltd. in the U.K.
"SEI's institutional sales growth is a testament to the fact that globally many organizations are realizing the strategic benefits of outsourcing to a fiduciary manager," said Edward Loughlin, Executive Vice President, SEI and head of SEI's Institutional Group. "In today's complex market environment, institutional investors want a fiduciary partner with a proven, time-tested process who can provide investment advice and the flexibility to execute various levels of discretion over investment manager selection and asset allocation decisions."
Within the past five years, SEI has seen an increased interest by markets outside of the corporate pension space, as more institutional investors explore the benefits of partnering with a discretionary provider. Today, these growing market segments represent 56 percent of SEI's institutional client base. More investors are also taking the added step of outsourcing discretion over asset allocation decisions, in addition to discretion over investment manager selection. Over the past five years, SEI's Institutional Group has seen a 25 percent growth in the number of clients outsourcing asset allocation discretion, and now provides full discretion for both asset allocation and investment manager decisions to almost one-third of its clients.
"We believe the growth in these markets is primarily driven by institutional investors wanting a partner who is accountable for the success of their investments," said Paul Klauder, Vice President and Managing Director, SEI's Institutional Group. "Outsourcing can also help create a more holistic view across multiple portfolios and alleviate the often time-consuming, day-to-day tactical decisions, allowing finance executives and committee and board members to focus their time on more valuable, strategic decisions for the success of their investments and organizations."
About SEI's Institutional GroupSEI's Institutional Group is the first and largest global provider of outsourced fiduciary management investment services. The company began offering these services in 1992 and today acts as a fiduciary manager to approximately 450 retirement, nonprofit and healthcare clients in six different countries. Through a flexible model designed to help our clients achieve financial goals, we provide asset allocation advice and modeling, investment management, risk monitoring and stress testing, active liability-focused investing and integrated goals-based reporting. For more information visit: http://www.seic.com/institutions.
About SEI SEI (NASDAQ: SEIC) is a leading global provider of investment processing, fund processing, and investment management business outsourcing solutions that help corporations, financial institutions, financial advisors, and ultra-high-net-worth families create and manage wealth. As of June 30, 2012, through its subsidiaries and partnerships in which the company has a significant interest, SEI manages or administers $424 billion in mutual fund and pooled or separately managed assets, including $182 billion in assets under management and $242 billion in client assets under administration. For more information, visit www.seic.com.
