SEI Investments' Net Income Rises

Editorial Staff

25 April 2024

SEI Investments, which provides investment processing and management, and investment operations solutions, yesterday reported a 23 per cent year-on-year rise in net income to $131 million in the first three months of this year, on a 9 per cent rise in revenues, to $511 million.

The Oaks, Pennsylvania-headquartered firm, which serves private banks, wealth managers and family offices among its clients, said revenues from assets under management, administration, and distribution fees increased mainly because of higher assets under administration. Q1 revenues included fees of $9.6 million from the SEI Integrated Cash Program of the Investment Advisors segment launched in December 2023, it said.

"We entered 2024 with continued momentum, reflecting our strategic focus on increasing sales and profitability across SEI. In the first quarter, we delivered strong top-line growth and margin expansion – with notable sales and implementation activity in our technology and investment processing businesses," CEO Ryan Hicke said in a statement.

Revenues also were boosted by rising markets and cash flows into separately managed account programs and strategist programs of the investment advisors segment. This was partially offset by negative cash flows from SEI fund programs in the investment advisors' segment and client losses in the institutional investors' segment.

Average assets under management in equity and fixed income programs, excluding LSV, increased by $8.1 billion, or 5 per cent year-on-year, to $175.9 billion. Average assets under administration increased by 14 per cent to $961.7 billion.

Revenues from information processing and software servicing fees increased from new client conversions and growth from existing SEI Wealth PlatformSM clients.

The group said net sales events in the private banks and investment managers segments during Q1 2024 were $24.5 million. SEI said these are expected to generate net annualized recurring revenues of approximately $20.7 million when contract values are completely realized.