SEI Investments, the manager-of-managers fund management products and outsourcing services, reckons it may have turned the corner on a difficult period, after reporting increases in net income and earnings per share over the corresponding period in 2002.
“We are hopeful that 2003 will mark the end of the ‘decision freeze’ and that 2004 will be the first of a string of positive years,” says Alfred P. West, Jr., Chairman and CEO.
“We will continue to invest in our strategic new business initiatives. We feel these are key investments which have potential for high payoff in the future, and we will not jeopardize that for the sake of short-term profits. We expect to accelerate these investments starting in the second quarter.”
However, at a granular level the results look patchy. Private Banking & Trust year-on-year revenues were affected by losses in the mutual fund processing business as well as weakness in non-recurring revenues due to reduced transaction and one-off fees. Continued weakness in the equity markets significantly affected revenues in all markets, with particular impact on the Investment Advisors and Enterprises segments of the business. While both the Enterprises and Investments in New Businesses segments experienced good Q1s, weak capital markets offset most of the gains. Margin maintenance seems to have depended on “expense management.” SEI has also purchased 1.6 million shares of its common stock at an average price of $24.58 for approximately $39 million in the first quarter.SEI Investments, the manager-of-managers fund management products and outsourcing services, reckons it may have turned the corner on a difficult period, after reporting increases in net income and earnings per share over the corresponding period in 2002.
“We are hopeful that 2003 will mark the end of the ‘decision freeze’ and that 2004 will be the first of a string of positive years,” says Alfred P. West, Jr., Chairman and CEO.
“We will continue to invest in our strategic new business initiatives. We feel these are key investments which have potential for high payoff in the future, and we will not jeopardize that for the sake of short-term profits. We expect to accelerate these investments starting in the second quarter.”
However, at a granular level the results look patchy. Private Banking & Trust year-on-year revenues were affected by losses in the mutual fund processing business as well as weakness in non-recurring revenues due to reduced transaction and one-off fees. Continued weakness in the equity markets significantly affected revenues in all markets, with particular impact on the Investment Advisors and Enterprises segments of the business. While both the Enterprises and Investments in New Businesses segments experienced good Q1s, weak capital markets offset most of the gains. Margin maintenance seems to have depended on “expense management.” SEI has also purchased 1.6 million shares of its common stock at an average price of $24.58 for approximately $39 million in the first quarter.