For SEI Investments's institutional investment solutions, should we prioritize expanding asset class offerings or improving existing fund performance?

Introduction

The trade-off we're examining today is whether SEI Investments should prioritize expanding asset class offerings or improving existing fund performance for their institutional investment solutions. This decision is crucial for SEI's growth strategy and market positioning. I'll analyze this trade-off by considering the business context, user impact, technical feasibility, and resource allocation. Let's dive into the key aspects that will inform our decision-making process.

Step 1

Clarifying Questions (3 minutes)

• Based on recent market trends, I'm thinking there might be increased demand for alternative asset classes. Could you share any insights on client requests for new asset types?

Why it matters: Helps gauge market demand and potential revenue impact Expected answer: Growing interest in private equity and real estate Impact on approach: Would lean towards expanding offerings if demand is high

• Considering our current fund performance, I'm curious about our competitive positioning. How do our existing funds compare to industry benchmarks?

Why it matters: Determines urgency of performance improvements Expected answer: Mixed performance, some funds underperforming Impact on approach: Would prioritize performance improvement if significantly lagging

• Looking at our technical infrastructure, I'm wondering about our capacity to onboard new asset classes. What's our current system's flexibility for integrating new asset types?

Why it matters: Assesses feasibility and potential implementation challenges Expected answer: Moderate flexibility, some development required Impact on approach: Would influence timeline and resource allocation for expansion

• Regarding our team structure, I'm thinking about our expertise distribution. Do we have more resources specialized in fund management or in new product development?

Why it matters: Helps determine which option aligns better with current capabilities Expected answer: Stronger in fund management Impact on approach: Might favor performance improvement if expertise is skewed

• Considering our strategic roadmap, I'm curious about any upcoming regulatory changes or market shifts. Are there any significant industry developments on the horizon that could impact this decision?

Why it matters: Ensures alignment with long-term strategy and market trends Expected answer: Potential new regulations on certain asset classes Impact on approach: Could influence which asset classes to prioritize or avoid