SEI Reports Rise In Net Income, AuM

Tom Burroughes

26 January 2017

, the US-listed firm that provides investment processing management, and operations solutions firm, has logged net income for the three months ended Dec. 31, 2016 of $88.61 million, a 9 per cent year-on-year increase.

For the full year of 2016, net income came in at $333.817 million, almost flat at 1 per cent higher from a year before, the firm, which serves clients in several regions such as Europe, as well as North America, said in a statement.

Revenues rose 10 per cent year-on-year in the fourth quarter to $368.81 million; for the full year, that gain was 5 per cent to $1.401 billion.

"Our financial results for both the fourth quarter and the full year show modest gains and reflect the ongoing investments we are making to deliver next generation solutions to our clients," Alfred West, SEI chairman and chief executive, said. "While net-sales events slowed during the fourth quarter, we are well positioned to capitalize on the significant opportunities within our markets,” he continued.

Sales events, net of client losses, during fourth-quarter 2016 totaled approximately $10.6 million and are expected to generate net annualized recurring revenues of approximately $5.5 million when contract values are fully realized, SEI saidl. For the year ended 2016, sales events, net of client losses, totaled approximately $93.1 million and are expected to generate net annualized recurring revenues of approximately $74.0 million on the same basis.

Aerage assets under management, excluding certain items, increased by $11.4 billion, or six per cent, to $194.8 billion, as compared to $183.4 billion during the fourth-quarter 2015. SEI’s average assets under administration increased $57.8 billion, or 14 per cent, to $465.7 billion in the fourth-quarter 2016, as compared to $407.9 billion during the fourth-quarter 2015.