SEI Attracts Large European and Global Asset Managers with CIT Lineup

Rhea-AI Summary

SEI Trust Company will serve as trustee for four collective investment trusts (CITs) established by Pictet Asset Management in the U.S. institutional retirement market. Pictet Asset Management is one of Europe's leading active asset management brands, managing USD $237 billion in distinctive strategies globally. Asset managers like Pictet Asset Management are utilizing CITs to attract new capital and increase their distribution efforts in the U.S. retirement market. The announcement reflects SEI's commitment to supporting global investment managers, retirement plans, consultants, and advisors through its turnkey operational platform. The partnership with Pictet Asset Management aims to reinforce their commitment to the U.S. institutional market and drive future growth.

Market Research Analyst

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.

Financial Analyst

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.

Legal Expert

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 

OAKS, Pa., Feb. 6, 2024 /PRNewswire/ -- As European and global asset managers increasingly embrace CITs, SEI^® (NASDAQ:SEIC) today announced that SEI Trust Company will serve as trustee for four collective investment trusts (CITs) established by Pictet Asset Management in the U.S. institutional retirement market. Pictet Asset Management is one of Europe's leading active asset management brands. With a heritage stretching over 200 years, Pictet manages USD $237 billion in distinctive strategies globally.

Asset managers like Pictet Asset Management are utilizing CITs to attract new capital and increase their distribution efforts in the U.S. retirement market. While low cost is often considered the primary driver of CITs' rising popularity among U.S. retirement plan sponsors, CITs' other key benefits include investment flexibility, increased availability, transparency, and the ability to reduce account minimums.

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 (USA), added:

"We are excited to offer U.S. institutions the opportunity to access proven Pictet Asset Management strategies that were previously only available to the largest institutions via mandates. Establishing CIT vehicles further reinforces our commitment to the U.S. institutional market."

Bryan Astheimer, Head of SEI's Investment Managers business for the U.K. and European regions, said:

"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 $1.4 trillion in assets. For more information, visit seic.com.

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 Pennsylvania and a wholly owned subsidiary of SEI Investments Company (SEI).

Company Contact:	Media Contact:
Emily Baldwin	Kerry Mullen
SEI	Vested
+1 610-676-3262	+1 917-765-8720
ebaldwin@seic.com	kerry@fullyvested.com

 

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SOURCE SEI Investments Company

What is the role of SEI Trust Company in the announcement?

SEI Trust Company will serve as trustee for four collective investment trusts (CITs) established by Pictet Asset Management in the U.S. institutional retirement market.

What is the significance of Pictet Asset Management in the global market?

Pictet Asset Management is one of Europe's leading active asset management brands, managing USD $237 billion in distinctive strategies globally.

How are asset managers utilizing CITs?

Asset managers like Pictet Asset Management are utilizing CITs to attract new capital and increase their distribution efforts in the U.S. retirement market.

What does the partnership between SEI and Pictet Asset Management aim to achieve?

The partnership aims to reinforce their commitment to the U.S. institutional market and drive future growth.

What is the expertise of SEI in servicing CITs?

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.