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.