Short Takes: SEI Says Profits Rose 11.3% in 1st Quarter

SEI Corp., a leading provider of investment and technology services to banks, reported an 11.3% increase in profits in the first quarter.

The Wayne, Pa., company said it booked $4.9 million in net income on $64.7 million in revenues.

SEI said the earnings were fueled in party by steady growth in its mutual fund business.

SEI serves as distributor for bank-managed mutual funds, with $30.4 billion of assets. This slice of the fund business has been especially strong, SEI said: Assets of bank proprietary mutual funds distributed by the company have grown 39% in a year.

As a distributor, SEI organizes bank proprietary funds and strikes sales agreements with brokerage firms, functions that are off limits to banks under the Glass-Steagall Act. Its clients include CoreStates, First Fidelity, and SunTrust.

The company also offers a family of funds for sale through banks, including Comerica and Bank of California.

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