Outsourced wealth management and backoffice vendor SEI attributes its success in signing up another 406 advisors last year -- a record -- to its value-added practice management platform.
To compare, SEI only attracted around 250 RIAs onto its platform back in 2009, largely due to what the firm sees as increased attention to growth and efficiency in the advisory channel.
Total AUM for all advisors on the platform is now up $5 billion to $31 billion. Interestingly, this means that the typical advisor coming to SEI last year had maybe $12 million under management -- not exactly a giant operation, but one that could definitely free up a bit of cash flow to fund growth.
Outsourced SMA vendors like SEI offer advisors the chance to unload the actual securities selection process to a third-party professional, freeing them up to concentrate on client management and other areas where they add unique value.