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SEI Investments (SEIC) Augments Managed Account Solutions
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SEI Investments Co. (SEIC - Free Report) augmented its Separately Managed Account (SMA) and Unified Managed Account (UMA) solutions offered via the Managed Account Solutions program. These enhancements will enable the company to serve its clients more efficiently.
These expanded offerings include the launch of additional internally managed and third-party investment alternatives, mitigated costs and technological updates bolstering tax optimization. These have been primarily launched to cater to the needs of mass-affluent, high-net-worth and ultra-high-net-worth clients.
SEIC’s technological advancements will provide real-time access to comprehensive reports and analytics, thus fostering transparency and facilitating better decision-making.
The demand for SMAs and UMAs is gaining momentum, given the personalized investment offerings with improved tax efficiency.
UMAs’ growth trajectory has been impressive over the last half decade, with assets witnessing a compound annual growth rate of 34%, per the Cerulli U.S. Managed Account Report. The uptrend is expected to persist over the next four years. SEIC’s SMA offerings combined with a distinguished UMA structure keep investor in control of their portfolios.
With more than 70 specialist managers and 120 unique mandates from SEI Investments and third-party managers, investors will enjoy a diversified investment expertise. It further incorporates SEIC’s SMA capabilities in factor investing, direct indexing and individual bond strategies.
Overlay portfolio management is another benefit of integrated coordination across multiple SMA managers. It has been designed to optimize risk and return alongside an improvement in tax efficiency through tax-aware trading.
Tax-loss harvesting is another perk to book strategic losses through offloading securities in deficit, to offset capital gains, thus reducing the taxable income. The strategy keeps exposure to the market and sustains long-term investment objectives.
Jim Smigiel, chief investment officer of SEI Investments, said, “We access the entirety of the capital markets through SEI's direct indexing solutions, factor strategies and individual bond portfolio management, as well as third-party managers we believe have a sustainable competitive advantage. Our solutions give advisors choice in their client recommendations, empowered by SEI's conviction.”
Erich Holland, head of client experience for SEI’s Advisor Business, said, “SEI has been at the forefront of this trend, offering UMAs for nearly 20 years. Our goal is to offer even better, cost-effective personalization at scale, so advisors can unlock new opportunities for growth, navigate complex environments with confidence, and better align their strategies with the new wealth portfolio, driven by each client's individual needs and objectives.”
SEI Investments has been indulging in business expansion efforts through augmented offerings. This February, the company invested $10 million in TIFIN to strategically form a partnership to gain unparalleled access to market innovation in wealth management. This strategy aligns with the company’s consistent focus on enhancements and innovation to diversify its revenue streams and gain market share.
Over the past six months, shares of SEI Investments have rallied 23.7%, underperforming the industry’s 35% growth.
Other Financial Services Firms Taking Similar Steps
Last month, BlackRock Inc. (BLK - Free Report) announced the acquisition of the remaining 75% equity stake in SpiderRock Advisors, a leading provider of customized option overlay strategies in the U.S. wealth market.
This transaction is an extension of BLK’s minority investment of 25% in the firm in 2021 and reinforces its commitment to personalized SMAs. The financial terms of the transaction haven’t been disclosed and its impact on BlackRock’s earnings will be immaterial.
This February, The Goldman Sachs Group, Inc. (GS - Free Report) , intending to capitalize on the significant growth of the private credit industry, entered a partnership with Mubadala Investment, an Abu Dhabi sovereign wealth fund. The companies will jointly invest $1 billion in private credit deals in multiple Asia-Pacific markets with a particular focus on India.
The funds will be deployed through an SMA, which will be managed by GS through its dedicated on-ground team in Asia and a global private credit team.
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SEI Investments (SEIC) Augments Managed Account Solutions
SEI Investments Co. (SEIC - Free Report) augmented its Separately Managed Account (SMA) and Unified Managed Account (UMA) solutions offered via the Managed Account Solutions program. These enhancements will enable the company to serve its clients more efficiently.
These expanded offerings include the launch of additional internally managed and third-party investment alternatives, mitigated costs and technological updates bolstering tax optimization. These have been primarily launched to cater to the needs of mass-affluent, high-net-worth and ultra-high-net-worth clients.
SEIC’s technological advancements will provide real-time access to comprehensive reports and analytics, thus fostering transparency and facilitating better decision-making.
The demand for SMAs and UMAs is gaining momentum, given the personalized investment offerings with improved tax efficiency.
UMAs’ growth trajectory has been impressive over the last half decade, with assets witnessing a compound annual growth rate of 34%, per the Cerulli U.S. Managed Account Report. The uptrend is expected to persist over the next four years. SEIC’s SMA offerings combined with a distinguished UMA structure keep investor in control of their portfolios.
With more than 70 specialist managers and 120 unique mandates from SEI Investments and third-party managers, investors will enjoy a diversified investment expertise. It further incorporates SEIC’s SMA capabilities in factor investing, direct indexing and individual bond strategies.
Overlay portfolio management is another benefit of integrated coordination across multiple SMA managers. It has been designed to optimize risk and return alongside an improvement in tax efficiency through tax-aware trading.
Tax-loss harvesting is another perk to book strategic losses through offloading securities in deficit, to offset capital gains, thus reducing the taxable income. The strategy keeps exposure to the market and sustains long-term investment objectives.
Jim Smigiel, chief investment officer of SEI Investments, said, “We access the entirety of the capital markets through SEI's direct indexing solutions, factor strategies and individual bond portfolio management, as well as third-party managers we believe have a sustainable competitive advantage. Our solutions give advisors choice in their client recommendations, empowered by SEI's conviction.”
Erich Holland, head of client experience for SEI’s Advisor Business, said, “SEI has been at the forefront of this trend, offering UMAs for nearly 20 years. Our goal is to offer even better, cost-effective personalization at scale, so advisors can unlock new opportunities for growth, navigate complex environments with confidence, and better align their strategies with the new wealth portfolio, driven by each client's individual needs and objectives.”
SEI Investments has been indulging in business expansion efforts through augmented offerings. This February, the company invested $10 million in TIFIN to strategically form a partnership to gain unparalleled access to market innovation in wealth management. This strategy aligns with the company’s consistent focus on enhancements and innovation to diversify its revenue streams and gain market share.
Over the past six months, shares of SEI Investments have rallied 23.7%, underperforming the industry’s 35% growth.
Image Source: Zacks Investment Research
Currently, SEIC carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Financial Services Firms Taking Similar Steps
Last month, BlackRock Inc. (BLK - Free Report) announced the acquisition of the remaining 75% equity stake in SpiderRock Advisors, a leading provider of customized option overlay strategies in the U.S. wealth market.
This transaction is an extension of BLK’s minority investment of 25% in the firm in 2021 and reinforces its commitment to personalized SMAs. The financial terms of the transaction haven’t been disclosed and its impact on BlackRock’s earnings will be immaterial.
This February, The Goldman Sachs Group, Inc. (GS - Free Report) , intending to capitalize on the significant growth of the private credit industry, entered a partnership with Mubadala Investment, an Abu Dhabi sovereign wealth fund. The companies will jointly invest $1 billion in private credit deals in multiple Asia-Pacific markets with a particular focus on India.
The funds will be deployed through an SMA, which will be managed by GS through its dedicated on-ground team in Asia and a global private credit team.