SEI (Nasdaq: SEIC) announced strong 2007 global institutional sales resulting in commitments from 64 new institutional clients and $7 billion in new global institutional assets under management. The year's sales momentum has resulted in a record 36-month period of growth for SEI's global institutional business as the company has added 180 new clients and over $19.5 billion in new institutional assets under management over that period.
More Companies Electing to Outsource Investment Management
A key driver for SEI's institutional sales growth is the continued global acceptance and implementation of an outsourced investment management model for pension plans, defined contribution plans, balance sheet assets and endowments and foundations. SEI has seen a consistent and significant increase in its global pension business as the company continues to introduce new solutions in seven different countries including the United States, Canada, United Kingdom, Netherlands, Germany, Hong Kong and South Africa.
"Despite improved funding levels, addressing the risks ongoing investment volatility can present to organizational finances has become a worldwide priority. We believe SEI's continued global client growth is a validation that our solutions are unparalleled in addressing this challenge," said Edward Loughlin, Executive Vice President, SEI and head of SEI's Global Institutional Group. "SEI will maintain its focus on delivering customized solutions designed to address pension risk in all of our global institutional markets."
Among SEI's new U.S. defined benefit clients added in 2007 are Brink's, Lee Memorial Health System, Visant Corporation, Firelands Regional Medical Center and Virginia Health Systems Alliance Interinsurance Exchange. Additional new global institutional clients include Givaudan Canada, James Bay Cree-Naskapi Pension Plan (Canada), Wabush Mines (Canada), Phoenix Dunlop Oil & Marine (UK), Perenco (UK), Nynas (UK), De Laval (UK), Roche Ireland Ltd., and Grant Thornton Capital (South Africa).
In the US, Sponsors Place Increased Value on Delegation of Manager Selection
In the US, the evolving outsourcing trend is being driven by increased complexities brought on by plan design changes and the implementation of the Pension Protection Act and new accounting rules. An additional factor is that many pension plans are allocating more assets in alternative investments resulting in an increased need for expertise around these products. In response, plan sponsors continue to elect to outsource investment management as they do not want to assign additional resources because financial executives are needed in other treasury functions. In the past three years, these factors have had an increased impact on larger plans as SEI has added a number of new clients each with more than US $500 million in assets.
"SEI's institutional sales growth within this market is a clear sign that larger pension plan sponsors value how outsourcing the investment management process aligns with their organizational goals," said Paul Klauder, Vice President, SEI's Institutional Group. "This group continues to evaluate this option because it enables internal finance resources to concentrate on more strategic issues that can have a greater impact on the organization." -- SEI
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