Innovation - SEI

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volume 21 | edition 03

Delaware Valley Leading Wealth Advisor
SEI Private Wealth Management
Michael Farrell, Managing Director; Joseph Mukurazita, CFP ® , CFA ® , Director,
Wealth Planning and Advice; Susan West, Director, Investment Strategies;
Debbie Phillips, Director, Financial Management; Steven Wittenberg, JD, LLM,
MBA, Director, Legacy and Philanthropy Strategies
“ By SeI Private Wealth Management
Do wealth managers have the
innovation you want?
The power of innovation goes beyond
sharing pictures on Facebook or accessing
your bank account on your iPhone.
Wealthy families recognize innovation
as a key ingredient of their success.
The SEI Family Wealth and Innovation
Survey* revealed that while the
majority of wealthy individuals polled
(80 percent) believed that work ethic
was either “very important” or the “most
important” quality in achieving their
financial success, 95 percent agreed that
innovation was important to their families’
ability for continued success.
Unfortunately, these same individuals
did not perceive the financial
service industry as the source of
significant innovation. The survey
revealed that only 2 percent of respondents
viewed wealth management as
the most innovative industry, while 34
percent described the industry as “not
very innovative.”
BENEFITS OF INNOVATION
When done right, innovation can have
an impact seen as “very positive” or
“mainly positive” by 86 percent of
survey respondents. They pointed to
better, more relevant information and
empowerment as areas where innovation
provides the most benefit. More
specifically, savvy investors are looking
for certain types of innovation to make
better financial decisions:
Real-life advice. The most innovative
firms combine technology and people
to deliver robust “what-if” analyses of
real-life issues: “What if my son gets
divorced?” “What if our foundation
makes one large donation every five
years?” These questions go beyond a
simple online calculation. They require
a combination of financial, behavioral
and decision-making analysis. Such
innovation allows individuals to play out
scenarios, evaluate the consequences of
decisions and educate themselves on the
real risks to wealth preservation.
Designer investments. While investment
innovation is often described
16%
INNOVATION BENEFITS
10%
17%
”
5%
1% 1%
in terms like “exotic,” “exclusive” and
“complex,” the next wave will be defined
by terms like “objective-based,” “targeted”
and “risk-adjusted.” Much as the
pharmaceutical industry is matching
patient DNA with innovative drugs,
wealthy investors seek a “designer”
approach to meet lifestyle, retirement,
family succession and charitablegifting
objectives. Investors will no
longer settle for portfolios that let asset
classes and their benchmarks dictate
objectives and allocation possibilities.
Reporting progress to goals. At a
minimum, investors should expect
access to balances and transaction
records. Some savvy investors are getting
full aggregation of assets, whether
liquid, nonliquid, cash, private or publicly
held. Beyond aggregation, top
firms provide reports that compare
progress with goals and spending
with other key metrics; they also track
performance against personal benchmarks.
Some reports allow investors to
see any overlap in portfolios managed
by different managers.
The desire for relevance and
empowerment should drive innovative
thinking. To quote one respondent,
“If (innovation) assists in
providing knowledge and guidance
to me, it is good. If it merely creates
complex financial products, it’s
not so good.” Innovation that leads
to better decisions is what wealthy
investors want.
*November 2011, SEI Private Wealth Management Innovation Survey, conducted in partnership with Scorpio Partnership Ltd., an independent research firm. The
survey examined the attitudes and perceptions of 88 ultra-high net worth consumers throughout the United States. SEI Private Wealth Management, formerly SEI
Wealth Network, is an umbrella name for various life and wealth services provided through SEI Investments Management Corporation, a registered investment advisor.
The Delaware Valley region is defined as the following counties: Pennsylvania—Berks, Bucks, Chester, Delaware, Montgomery, Philadelphia;
Delaware—New Castle; Maryland—Cecil; and New Jersey—Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Mercer, Ocean, Salem.
21%
More ControL
eMPoWerMent
other
neW IDeAS
none
IMProveD eASe oF uSe
Better reSuLtS
Better InForMAtIon
29%

I llUStratI on bY k E v I n SProU l S
“Access to financial data is one
thing, but my clients are looking for
information that makes sense, is relevant
and helps them make better decisions.”
— John Stine, assistant office Managing Partner,
grant thornton llP
Sitting: Michael Farrell;
standing, left to right:
Joseph Mukurazita, Susan
West, Steven Wittenberg,
Debbie Phillips
assets Under Management
$189 billion (as of 3/31/12)
Minimum Fee for Initial Meeting
None required
Minimum asset requirement
$5 million in investable assets
largest Client net Worth
$1 billion
Compensation Method
Asset-based fees (planning and investment
services)
SEI Private Wealth Management 1 Freedom Valley Drive, Oaks, PA 19456 610.676.2285
How to reach SEI Private
Wealth Management
To learn more about the SEI Family
Wealth and Succession Survey, please
contact us at 610.676.2285.
About SEI Private Wealth Management
SEI Private Wealth Management, a division of SEI Investments Management Corporation, provides
individuals and families with a unique approach to managing wealth. While SEI Private Wealth Management
offers investment advice, it just as importantly helps solve problems for its clients—problems such as how
much capital individuals need from the sale of a business to support their lifestyle or when and how to
most effectively help children financially. SEI has received several accolades in recognition of its innovative
approach to problem solving and wealth management. In 2009, the firm was given the Spears Award
as Wealth Management Innovator of the year, and in 2011, SEI Private Wealth Management received
the NABCAP Premier Advisor Award and Smart CEO magazine’s Readers Choice Award. SEI Private
Wealth Management believes these awards symbolize its commitment to its clients and its dedication to
clients’ financial success.
Primary Custodian for Investor assets
SEI Private Trust Company
Professional Services Provided
Planning, investment advisory and money management services, advanced
wealth transfer, philanthropy, financial analysis and cash management
Email
mfarrell@seic.com swest@seic.com
jmukurazita@seic.com dphillips@seic.com
swittenberg@seic.com
Website
www.seic.com/privatewealth
W orth.C o M JUn E-JUl Y 2012
089
make grow live
SEI PrIvatE WEalth ManagEMEnt

W
Michael Farrell
Managing Director
Joseph Mukurazita, CFP®, CFA
Director, Wealth Planning and Advice
Susan West
Director, Investment Strategies
Debbie Phillips
Director, Financial Management
Steven Wittenberg, JD, LLM, MBA
Director, Legacy and Philanthropy Strategies
SEI Private Wealth Management
1 Freedom Valley Drive
Oaks, PA 19456
Tel. 610.676.2285
mfarrell@seic.com
jmukurazita@seic.com
swittenberg@seic.com
swest@seic.com
dphillips@seic.com
www.seic.com/privatewealth
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the evolution of financial intelligence
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