SEI To Provide Collateral Management Solution For OTC Derivatives
Company’s Middle Office Services Expand to Provide Clients with an Automated and Transparent Process for Managing Counterparty Risk
OAKS, Pa., Aug. 25, 2010 – SEI (NASDAQ: SEIC) announced today that it has expanded its middle office outsourcing services to include collateral management for OTC derivatives, providing its asset manager clients with a more automated, controlled, and independent method by which to manage their counterparty exposure. In the wake of market volatility, managers are looking for a more consistent and transparent process to provide enhanced control over credit risks and actively manage exposure levels, asset utilization, and counterparty risk.
As part of this solution, SEI will perform the daily collateral management functions on behalf of its clients, including managing and electronically storing legal agreements; calculating and communicating calls, recalls, and releases; issue resolution; and calculating and notifying interest on collateral. Additionally, SEI has entered into a strategic partnership with Lombard Risk, one of the world’s leading providers of collateral management, to integrate its Colline® system into SEI’s hedge fund platform. The system features an automated workflow that provides a consolidated view of daily deliverables, facilitates communication, and approvals between SEI and its clients, and improves transparency by tracking assets during the workflow process. Clients can also access a variety of standard and customized reports, including counterparty exposure, interest calculations, collateral positions, and trade positions.
“By relying on SEI, investment managers are able to view and manage their counterparty exposure online without having to invest time and resources in building or buying their own technology solution. Investors value it because it’s managed by a trusted independent party,” said Phil McCabe, Senior Vice President and Solution Head, SEI’s Investment Manager Services division. “Investment managers continue to focus on their core competencies while at the same time strive to improve operational efficiencies, controls and transparency. Outsourcing middle office functions to a company such as SEI achieves what managers are trying to accomplish.”
About SEI's Investment Manager Services Division
SEI's Investment Manager Services division provides comprehensive operational outsourcing solutions to global investment managers focused on mutual funds, hedge and private equity funds, exchange traded funds, collective trusts, and separately managed, as well as institutional and private client, accounts. The division applies operating services, technologies, and business and regulatory knowledge to each client’s business objectives. Its resources enable clients to meet the demands of the marketplace and sharpen business strategies by focusing on their core competencies. The division has been recognized by Buy-Side Technology as “Best Fund Administrator” and by HFMWeek as “Best Funds of Hedge Funds Administrator.” For more information, visit http://www.seic.com/enUS/investment-managers.htm.
SEI (NASDAQ:SEIC) is a leading global provider of outsourced asset management, investment processing and investment operations solutions. The company’s innovative solutions help corporations, financial institutions, financial advisors, and affluent families create and manage wealth. As of June 30, 2010, through its subsidiaries and partnerships in which the company has a significant interest, SEI administers $380 billion in mutual fund and pooled assets and manages $149 billion in assets. SEI serves clients, conducts or is registered to conduct business and/or operations, from numerous offices worldwide. For more information, visit www.seic.com.