SEI Investments Co. SEIC has rolled out depository services for Luxembourg alternative investment funds (AIFs), the second-largest fund center globally, as per the Association of the Luxembourg Fund Industry report published in 2021.

Rationale Behind SEIC’s Move

The demand for alternatives and European private markets has been rising among investors for generating higher returns and diversifying their portfolios. Thus, investment managers of all sizes aim to expand their client base by introducing new sources of capital.

However, as demand for these investments continues to rise, asset managers encounter the challenge of managing a complex network of providers to support their operational framework.
 
The depository services launched by SEI Investments will enhance its existing offerings, including fund administration, registrar and transfer agent and regulatory reporting services. This gives asset managers a centralized solution for their technology and operations requirements, streamlining the operational structure.

Depository services will further help funds that majorly invest in private assets. These services will be accessible to AIF managers as part of a suite of fund administration services or on a standalone basis. These services include cash flow monitoring, oversight, ownership verification, and safekeeping of assets.

Bryan Astheimer, Head of SEIC’s Investment Managers business, EMEA, stated, “Our strategic focus on scaling our global operational footprint supports our clients to efficiently launch funds—while meeting compliance requirements in different domiciles.”

The addition of depository services boosts SEIC’s comprehensive offerings across Europe making it well-poised to capitalize on these trends and opportunities to drive growth for its clients. The company can also provide depositary services for non-European Union (EU) managers aiming to market non-EU funds to EU investors under the Depo Lite Regime.

SEI Investments’ Zacks Rank & Price Performance

Shares of SEI Investments have risen 26.3% compared with the industry’s 29.3% growth over the past six months.

Image Source: Zacks Investment Research

Currently, SEIC carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Product Enhancement Initiatives by Other Finance Firms

Last month, Jordan Sinclair, president of Robinhood UK, a subsidiary of Robinhood Markets, Inc. HOOD stated in an interview with Yahoo Finance UK that HOOD intends to begin offering options trading to its U.K. clients in early 2025 as it continues to expand the features on its platform to cater to customers outside the United States.

This will be the latest feature to be rolled out in the United Kingdom and was earlier available to U.S. investors. In March 2024, HOOD introduced its trading platform in the United Kingdom.

Similarly, Morgan Stanley MS partnered with Wise, a global technology company known for building the best money transfer and management system. This alliance enables MS to boost its foreign exchange settlement capabilities for the company’s corporate clients.

This collaboration makes Morgan Stanley the first investment bank to offer its corporate payment capabilities through Wise Platform. This partnership combines Wise’s cutting-edge payment capabilities with MS’ single-firm, integrated, cross-divisional approach to offer the best solutions for the latter’s client base.

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