SEI Advisor Network Reveals Cutting Expenses is Last Resort for Restoring Advisor Firm Revenue

Advisors Boosting Client Acquisition Efforts, Exploring New Marketing Tactics

OAKS, Pa., June 8 /PRNewswire-FirstCall/ -- A recent SEI (Nasdaq: SEIC) survey of more than 200 independent financial advisors revealed that cutting expenses -- especially by reducing staff -- is a last resort for many advisors as they attempt to restore firm profitability. According to the SEI Advisor Network Quick Poll "How Are You Restoring Firm's Revenue," only 14.9 percent of respondents cited expense reduction as their primary strategy for restoring revenue, while only one percent said they are reducing staff.

Instead, advisors are focused on building business through client acquisition efforts, primarily driven by referrals and developing new alliances with centers of influence. Over half of the poll respondents (51.6 percent) ranked new client acquisition as their number one strategy for restoring revenues. Additionally, 23.6 percent said establishing formal center of influence relationships was their primary strategy.

"The current environment has forced us to devote more energy to proactively growing our business," said Rich Donnelley, President of Donnelley Wealth Advisors, Inc., San Diego, California. "Now's the time to explore unconventional methods, as well as to consider the strategies and tactics we always thought we should be using, but haven't had the time or need to focus on in the past."

The poll also gathered insights specifically related to client acquisition techniques. When asked what new business development strategies or tactics advisors were using for the first time or had only used minimally before, 43.9 percent stated they were specifically asking clients for referrals. Only a small percentage said they were exploring traditional advertising (5.3 percent) or direct marketing (10.7 percent) to increase client acquisition.

"You've got to be assertive to grow in this climate," said Keith Heichel, CFP of Pinnacle Wealth Planning Services, Mansfield, Ohio. "You can't assume your existing clients will automatically refer you new business without asking, however clients have been more than willing when I've approached them. Those years of making service a priority have definitely paid off."

In analyzing client acquisition success, 37.2 percent of advisors attributed the success of new client acquisition to service-related issues with their previous advisor. In addition, 18.6 percent felt that the primary reason their prospects became clients was because they had decided they no longer wanted to manage their investments themselves.

"Given the service-related issues some advisors are facing, they still need to consider how efficient business management can reduce expenses without reducing capacity," said Stephen Onofrio, Senior Managing Director, SEI Advisor Network. "Focusing on growth is still the most critical concern, but having a client acquisition 'process' that integrates an advisor's front office with their back office is also key."

About the SEI Advisor Network

The SEI Advisor Network provides financial advisors with turnkey wealth management services through outsourced investment strategies; administration and technology platforms; trust, banking, and institutional services; and practice management programs. It is through these services that SEI helps advisors save time, grow revenues, and differentiate themselves in the market. With a history of financial strength, stability, and transparency, the SEI Advisor Network has been serving the independent financial advisor market for more than 15 years. As of March 31, 2009, SEI works with more than 6,000 advisors and has over $25 billion in advisors' assets under management. The SEI Advisor Network is a strategic business unit of SEI. For more information, visit www.seic.com/advisors.

About SEI

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 March 31, 2009, through its subsidiaries and partnerships in which the company has a significant interest, SEI administers $354 billion in mutual fund and pooled assets and manages $123 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.

SOURCE SEI

Released June 8, 2009