SEI Investments Company (SEIC): Marketing Mix Analysis [10-2024 Updated]

As we delve into the marketing mix of SEI Investments Company (SEIC) for 2024, we uncover the strategic components that drive its success in the competitive investment management landscape. From innovative product offerings like the newly launched SEI Integrated Cash Program to a well-defined place strategy that emphasizes global reach, SEIC is positioning itself to meet diverse client needs. Their promotion strategies highlight technology-driven solutions while maintaining competitive pricing to attract a broad range of investors. Read on to explore how these four P's shape SEIC's business operations.

SEI Investments Company (SEIC) - Marketing Mix: Product

Investment management services for various client segments

SEI Investments Company offers a range of investment management services tailored to different client segments, including institutional investors, investment managers, and private wealth clients. The company's revenue from asset management, administration, and distribution fees increased by 9% to $1,567,961,000 in the first nine months of 2024 compared to $1,434,935,000 in the same period of 2023 .

Pooled investment products and separately managed accounts

SEI provides pooled investment products and separately managed accounts, which are significant revenue sources. For the nine months ended September 30, 2024, the average assets under management in equity and fixed income programs, excluding LSV, increased by $8.8 billion, or 5%, to $177.9 billion compared to the same period in 2023 .

Investment processing solutions (PaaS and SaaS)

The company offers investment processing solutions through both Platform as a Service (PaaS) and Software as a Service (SaaS) models. Revenue from investment processing fees for PaaS was approximately $189,994,000, while SaaS generated $87,332,000 for the nine months ending September 30, 2024 .

Professional services for investment management firms

SEI also provides professional services to investment management firms, contributing to its overall revenue. The professional services fees for the nine months ended September 30, 2024, totaled $25,827,000 .

SEI Integrated Cash Program launched in December 2023

The SEI Integrated Cash Program, launched in December 2023, generated $10.7 million in fees during the third quarter of 2024 and $30.4 million in fees for the first nine months of 2024 .

SEI Wealth Platform for comprehensive investment operations

The SEI Wealth Platform (SWP) facilitates comprehensive investment operations, with capitalized software development costs reaching $18.4 million for the first nine months of 2024 . The net book value of SWP as of September 30, 2024, was $208,457,000, with an average remaining life of 8.4 years .

SEI Investments Company (SEIC) - Marketing Mix: Place

Operations primarily in the United States, with a significant presence in the UK, Canada, and Ireland

SEI Investments Company operates primarily in the United States, where it generates a substantial portion of its revenues. For the nine months ended September 30, 2024, total revenues from the U.S. market amounted to approximately $1.34 billion, representing a significant share of the company's overall revenues of $1.57 billion during the same period . Additionally, SEI has a notable presence in international markets, including the UK, Canada, and Ireland, contributing to its global operational footprint.

Services offered through regulated subsidiaries in multiple jurisdictions

SEI conducts its business through regulated subsidiaries across various jurisdictions. This includes financial services in the U.S., the UK, Canada, and Ireland, ensuring compliance with local regulatory frameworks. As of September 30, 2024, SEI managed, advised, or administered assets totaling approximately $1.6 trillion across various investment vehicles, including hedge funds, private equity, and mutual funds.

Global reach with localized services tailored to regional clients

SEI's global reach is complemented by its ability to offer localized services that cater to the specific needs of regional clients. For instance, in the UK, SEI generated revenues of approximately $121.6 million in the first nine months of 2024 . This localized approach allows SEI to effectively address the diverse investment strategies and regulatory requirements prevalent in different markets.

Digital platforms for remote access to investment management services

SEI leverages digital platforms, notably the SEI Wealth PlatformSM, to enhance accessibility to its investment management services. This platform is designed to support remote access, enabling clients to manage their investments seamlessly. The company capitalized $10.5 million in software development costs for enhancements to this platform in the first nine months of 2024, reflecting its commitment to technological advancement.

As of September 30, 2024, SEI's digital platforms have facilitated significant operational efficiencies, allowing the company to enhance its service delivery and client engagement across all regions. The investment in technology underscores SEI's strategy to maintain a competitive edge in the rapidly evolving financial services landscape.

SEI Investments Company (SEIC) - Marketing Mix: Promotion

Emphasis on market appreciation and client growth through targeted marketing efforts

In 2024, SEI Investments Company (SEIC) reported a significant increase in average assets under administration, which rose by $132.4 billion, or 15%, to $998.4 billion compared to $866.0 billion in the same period of 2023. This growth was primarily attributed to cross sales to existing alternative investment clients within the Investment Managers segment, as well as new sales.

New fee structures introduced for enhanced service offerings

SEI launched new fee revenue initiatives, generating $10.7 million during the third quarter of 2024 and $30.4 million during the first nine months of 2024 from the SEI Integrated Cash Program, which was launched in December 2023. These new fee structures aim to enhance service offerings and attract a broader client base.

Promotion of technology-driven solutions to streamline investment operations

SEI continues to invest in technology-driven solutions, with capitalized software development costs amounting to $18.4 million for the first nine months of 2024. Of this, $10.5 million was allocated for enhancements to the SEI Wealth PlatformSM (SWP). The net book value of SWP was reported at $208.5 million as of September 30, 2024.

Participation in industry conferences and seminars to showcase expertise

SEI actively participates in various industry conferences and seminars, reinforcing its expertise in the financial services sector. This engagement aims to foster relationships and increase brand visibility among potential clients and industry peers.

SEI Investments Company (SEIC) - Marketing Mix: Price

Revenue generated through a mix of fixed fees and performance-based fees

As of September 30, 2024, SEI Investments Company reported total revenues of $1,567,961,000, representing a 9% increase from $1,434,935,000 in the same period of 2023. The revenue mix includes fixed fees from investment management services and performance-based fees, which are contingent upon the performance of the funds managed.

Investment management fees based on assets under management

Investment management fees have been a significant contributor to revenue, with total investment management fees from SEI fund programs at $176,368,000 for the nine months ended September 30, 2024, down from $181,754,000 in 2023, a decrease of 3%. Separately managed account fees increased by 12% to $144,203,000 from $129,000,000 year-over-year.

Competitive pricing strategies to attract institutional and individual investors

SEI employs competitive pricing strategies tailored to institutional and individual investors, focusing on maintaining a balance between attracting new clients and retaining existing ones. The average assets under administration increased by $132.4 billion, or 15%, to $998.4 billion during the first nine months of 2024, compared to $866.0 billion in the same period of 2023. This growth is attributed to competitive pricing and enhanced service offerings.

Fee reductions in certain investment products to retain clients and enhance service attractiveness

In response to market conditions and competitive pressures, SEI has implemented fee reductions in certain investment products. Notably, revenues from SEI fund programs decreased due to a shift towards separately managed accounts and fee reductions in those programs. The SEI Integrated Cash Program, launched in December 2023, generated $30.4 million in fees during the first nine months of 2024, indicating a strategic move to enhance service attractiveness while maintaining competitive pricing.

In summary, SEI Investments Company (SEIC) effectively leverages its marketing mix to enhance its competitive edge in the investment management landscape. By offering a diverse range of investment management services and innovative solutions like the SEI Wealth Platform, the company addresses the needs of various client segments. Its strategic presence across multiple regions, coupled with a strong emphasis on technology-driven solutions, ensures that SEIC remains relevant and responsive to market demands. Additionally, the introduction of competitive pricing strategies and targeted promotional efforts solidifies its position as a trusted partner for both institutional and individual investors.

Article updated on 8 Nov 2024

Resources:

1. SEI Investments Company (SEIC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of SEI Investments Company (SEIC)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View SEI Investments Company (SEIC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.