SEI Attracts Large European and Global Asset Managers with CIT Lineup
- None.
- None.
Insights
The partnership between SEI Trust Company and Pictet Asset Management marks a significant development in the U.S. institutional retirement market. The launch of four collective investment trusts (CITs) by Pictet Asset Management, a prominent European asset manager, indicates a strategic move to capitalize on the growing demand for CITs in the U.S. retirement space.
The attractiveness of CITs lies in their cost-effectiveness and the investment flexibility they offer to plan sponsors. These factors are likely to enhance Pictet's competitive position in the U.S. market, potentially increasing their market share and influencing the stock performance of SEI, given their role as trustee. The emphasis on distinctive strategies such as the 'Clean Energy Transition' and emerging markets debt suggests a focus on niche areas with growth potential.
Furthermore, the operational support provided by SEI's platform could streamline Pictet's entry into the U.S. market, mitigating some of the risks associated with international expansion. The operational efficiencies and expertise of SEI might also lead to cost savings and improved service levels for Pictet's U.S. institutional clients, potentially impacting SEI's revenue positively.
From a financial perspective, Pictet Asset Management's establishment of CITs in the U.S. could be seen as a move to diversify revenue streams and hedge against market volatility in Europe. The U.S. institutional retirement market represents a substantial opportunity, with trillions of dollars in assets. Pictet's entry, supported by SEI's platform, may lead to an increase in assets under management (AUM), which is a key metric for evaluating the financial health of asset managers.
The introduction of CITs such as the 'Clean Energy Transition' also aligns with the growing investor interest in Environmental, Social and Governance (ESG) strategies. This could attract new capital inflows from socially conscious investors, potentially enhancing the financial performance of both Pictet and SEI.
It is also important to consider the scalability of SEI's operational platform. If SEI can efficiently onboard additional asset managers, this could lead to a multiplier effect on their earnings, benefiting shareholders in the long term.
Legally, the collaboration between SEI and Pictet Asset Management underscores the importance of compliance with U.S. regulations for foreign asset managers entering the market. As trustee, SEI would be responsible for ensuring that the CITs comply with U.S. laws and fiduciary standards, a role that carries significant legal responsibility and requires in-depth expertise.
The selection of SEI as trustee also suggests confidence in their ability to manage regulatory risk, which is critical in the highly scrutinized financial services industry. This collaboration could set a precedent for other foreign asset managers seeking to offer CITs in the U.S. and may influence the regulatory landscape for such investment vehicles.
For investors, the legal and regulatory expertise of SEI may offer reassurance about the governance and oversight of these new investment options, potentially impacting investor sentiment and the perceived risk associated with Pictet's CIT offerings.
Turnkey Operational Platform Supports Asset Managers' and Plan Sponsors' Unique Demands
Asset managers like Pictet Asset Management are utilizing CITs to attract new capital and increase their distribution efforts in the
John Alshefski, Senior Vice President and Managing Director of SEI's Traditional Investment Managers business, said:
"Asset managers are enhancing distribution by launching multiple share classes in various asset classes and investment strategies. Our established turnkey operational platform and experienced, professional team of experts enable global investment managers, retirement plans, consultants, and advisors an efficient way to gain access to SEI's extensive CIT lineup. We're excited to welcome Pictet Asset Management to SEI and look forward to servicing and supporting their CIT business."
The four CITs launched by Pictet Asset Management include:
- Pictet Clean Energy Transition CIT
- Pictet EM Blend CIT
- Pictet EM Local Currency Debt CIT
- Pictet EM Hard Currency Debt CIT
Elizabeth Dillon, CEO of Pictet Asset Management (
"We are excited to offer
Bryan Astheimer, Head of SEI's Investment Managers business for the
"SEI is uniquely positioned to provide global managers with the expertise and access to our breadth of capabilities, enabling them to meet international distribution goals. Our relationship with Pictet Asset Management reflects our commitment to the global market, and we look forward to working with them to drive future growth."
With more than 30 years of expertise servicing CITs, SEI's turnkey operational platform and its team of dedicated professionals support asset managers' and plan sponsors' unique demands.
About SEI®
SEI (NASDAQ:SEIC) delivers technology and investment solutions that connect the financial services industry. With capabilities across investment processing, operations, and asset management, SEI works with corporations, financial institutions and professionals, and ultra-high-net-worth families to help drive growth, make confident decisions, and protect futures. As of Dec. 31, 2023, SEI manages, advises, or administers approximately
About SEI's Investment Managers business
SEI's Investment Managers business supplies investment organizations of all types with the advanced operating infrastructure they must have to evolve and compete in a landscape of escalating business challenges. SEI's global operating platform provides investment managers and asset owners with customized and integrated capabilities across a wide range of investment vehicles, strategies, and jurisdictions. SEI's services enable users to gain scale and efficiency, keep pace with marketplace demands, and run their businesses more strategically. SEI partners with more than 550 traditional and alternative asset managers, as well as sovereign wealth funds and family offices, including 48 of the top 100 asset managers worldwide.* For more information, visit seic.com/ims.
*Based on Pensions & Investments' "Largest Money Managers" 2022 ranking.
About SEI Trust Company
SEI Trust Company (the Trustee) serves as the Trustee of the Fund and maintains ultimate fiduciary authority over the management of, and the investments made, in the Fund. The Fund is part of a Collective Investment Trust (the Trust) operated by the Trustee. The Trustee is a trust company organized under the laws of the Commonwealth of
Company Contact: | Media Contact: |
Emily Baldwin | Kerry Mullen |
SEI | Vested |
+1 610-676-3262 | +1 917-765-8720 |
View original content:https://www.prnewswire.com/news-releases/sei-attracts-large-european-and-global-asset-managers-with-cit-lineup-302054008.html
SOURCE SEI Investments Company
FAQ
What is the role of SEI Trust Company in the announcement?
What is the significance of Pictet Asset Management in the global market?
How are asset managers utilizing CITs?
What does the partnership between SEI and Pictet Asset Management aim to achieve?
What is the expertise of SEI in servicing CITs?
