Winning business from the baby-boomers -- who are beginning to retire and stand to collect vast inheritances -- means big money for financial-services companies. SEI Investments, which provides software and financial-planning programs to banks and investment advisers, aims to help its clients tap into this cohort of 76 million. "Boomers are already rejecting old strategies for meeting their wealth-management needs, because their needs are strikingly different from those of their parents," writes Jack May, senior vice president of SEI. The company recently began pushing a service called Wealth Network, a client-focused business model that employs a more-detailed asset-allocation and financial-planning process and utilizes experts on topics such as elder care and budgeting.
This grand plan of retooling the wealth-advisory business for a generation of customers is attracting the attention of analysts such as Tom McCrohan of Janney Montgomery Scott, a Philadelphia-based brokerage firm. "A history of innovation coupled with an ability to anticipate trends are two of the reasons we remain optimistic on this company," writes McCrohan. "SEI continues to take the road less traveled, sometimes building the road themselves."
This Oaks, Pa., company (symbol SEIC) also has a money-management arm, which, among other things, advises mutual funds and manages assets for pension funds, hedge funds and private clients. SEI also owns 43% of hedge fund LSV.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
SEI's revenues rose 12% in 2005, to $773 million, with strong growth in nearly all of the company's segments. Although SEI's shares, currently trading at $40, have already risen 10% so far this year, McCrohan believes the stock is still undervalued. His 12-month price target is $47. The stock sells for 20 times the $2.05 per share that analysts expect SEI to earn in 2005.
--Katy Marquardt
-
Stock Market Today: Stocks Rally Despite Rising Geopolitical TensionThe main indexes were mixed on Tuesday but closed well off their lows after an early flight to safety.
-
What's at Stake for Alphabet as DOJ Eyes Google's ChromeAlphabet is higher Tuesday even as antitrust officials at the DOJ support forcing Google to sell its popular web browser. Here's what you need to know.
-
Why Is Warren Buffett Selling So Much Stock?Berkshire Hathaway is dumping equities, hoarding cash and making market participants nervous.
-
Fed Cuts Rates Again: What the Experts Are SayingFederal Reserve The central bank continued to ease, but a new administration in Washington clouds the outlook for future policy moves.
-
If You'd Put $1,000 Into Google Stock 20 Years Ago, Here's What You'd Have TodayGoogle parent Alphabet has been a market-beating machine for ages.
-
Fed Goes Big With First Rate Cut: What the Experts Are Saying
Federal Reserve A slowing labor market prompted the Fed to start with a jumbo-sized reduction to borrowing costs.
-
Stock Market Today: Stocks Retreat Ahead of Nvidia EarningsMarkets lost ground on light volume Wednesday as traders keyed on AI bellwether Nvidia earnings after the close.
-
Stock Market Today: Stocks Edge Higher With Nvidia Earnings in FocusNvidia stock gained ground ahead of tomorrow's after-the-close earnings event, while Super Micro Computer got hit by a short seller report.
-
Stock Market Today: Dow Hits New Record Closing HighThe Nasdaq Composite and S&P 500 finished in the red as semiconductor stocks struggled.
-
Stock Market Today: Stocks Pop After Powell's Jackson Hole SpeechFed Chair Powell's Jackson Hole speech struck a dovish tone which sent stocks soaring Friday.
