SEI Investments has reported an 8 percent year-on-year increase to $672.8 billion in assets under administration for Q2 2020.
However, the Q2 results showed that assets under management dipped by 1 percent ($1.8 billion) compared to Q2 2019.
SEI explained that these figures link with an overall decline in revenues from asset management, administration, and distribution fees, which were impacted from the carryover effect of market depreciation in March at the beginning of the COVID-19 pandemic.
It was noted that this was partially offset by increased fees from higher assets under administration, generated from positive cash flows and sales of new business.
SEI also cited an increase in operational expenses, attributable to increased consulting costs in new business opportunities, although offset by a decline in travel expenses as the business model adapted to work from home lockdown measures.
Alfred West Jr, chairman and CEO of SEI, commented: “While financial markets somewhat rebounded during the quarter, we experienced headwinds that impacted our results. Our client engagement was high last quarter, resulting in positive sales activity.”
“We continue to invest in our One SEI strategy, using this period to accelerate the necessary development work that will bring this initiative to its full potential, as our view of the future is not dampened by the challenges we all face in society today.”
“Our diverse global workforce is the foundation of what will enable us to fulfill our promise of serving our clients and communities in which we work and live. Capitalising on the opportunities in the markets we serve and the solutions we offer will lead to increased shareholder value”, West noted.
