SEI Investments Company has expanded its middle office outsourcing services to include collateral management for OTC derivatives.

The company said that the new service will provide its asset manager clients with a more automated, controlled, and independent method to manage their counterparty exposure.

As part of this solution, SEI will perform the daily collateral management functions on behalf of its clients, including managing and electronically storing legal agreements; calculating and communicating calls, recalls, and releases; issue resolution; and calculating and notifying interest on collateral.

SEI has also entered into a strategic partnership with Lombard Risk, a provider of collateral management, to integrate its Colline system into SEI’s hedge fund platform. The system features an automated workflow that provides a consolidated view of daily deliverables, facilitates communication, and approvals between SEI and its clients.