SEI's focus is to coordinate the transition process among all interested parties and apply sophisticated risk management techniques to minimize costs, operational risk and seek best execution. Key roles and responsibilites are outlined below.
Project Management
Client
• Execute transition management account opening documents
• Provide contact information for managers and custodian
• Provide letter of direction to managers
• Review pre-trade reports and sign off on trading strategy
• Review post trade report
SEI Transition Team
• Assist with communications and coordination of allparties
• Develop detailed project plan and timeline for transition
– Develop transition strategy
– Receive target portfolio lists
– Identify any “in-kinds” that can move into SEI funds
– Provide pre-trade cost and risk analysis
– Review operational considerations and risk assessment
• Execute trade according to strategy
• Coordinate trade processing with custodian, managers, SEI funds, etc.
• Ensure timely trade delivery to custodian and assist with settlement of securities
• Provide post trade reporting and cost analysis
• Present results to Board of Directors as requested
Custodian
• Transfer assets into transition accounts
• Reconcile assets in terminated manager accounts
• Recall assets from securities lending
• Provide certifi ed list of assets to SEI transition management team
• Coordinate movement of “in-kinds” to SEI funds
• Process trades and settle all trading activity
Transition Timeline
A thorough planning and coordination schedule will highlight key deadlines to ensure a smooth transition. Outlined below are the key tasks that need to be performed for this particular transition.
Phase I - Pretrade Planning
Target Date Activity________________________________
3 weeks prior............................Determine transition asset allocation strategy
3 weeks prior............................Exchange contact information
3 weeks prior............................Provide client with pre-trade report based on sample holdings
3 weeks prior............................SEI / client review pre-trade report and transition plan
3 weeks prior............................Complete transition legal documentation
2 weeks prior............................Contact legacy managers to determine liquidation requirements, termination timing, stock transfers, etc.
2 weeks prior............................Open transition trading account at custodian
T-7...........................................Custodian reconciles holdings in legacy accounts
T-5...........................................Custodian begins certification process for legacy account
T-3...........................................SEI receives certified list of holdings
T-3...........................................SEI in-kind selections are instructed to move to SEI funds on trade date.
T-2...........................................SEI reviews holdings for any potential changes to pre-trade report
T-1...........................................Final trade instructions are reviewd by client
Phase II - Implementation
Target Date Activity________________________________
(T) Trade Date.........................SEI reviews corporate actions, restricted securities, etc.
(T) Trade Date.........................In-kind securities are moved into SEI mutual funds
(T) Trade Date.........................Transition trading started based on pretrade strategy
(T) Trade Date.........................Daily updates provided to client
(T) Trade Date.........................Trade details sent to custodian
(T) Trade Date.........................Trade proceeds invested in SEI Mutual Funds
Phase III - Post Trade Reporting
Target Date Activity________________________________
T+3..........................................Transition trades settle at custodian
Last settlement date..................Work with custodian to ensure proper settlement for all securities
T+4..........................................Provide client with post trade report
T+5..........................................Review post trade report with client
_______________
Service and Support
SEI has a dedicated team of implementation specialists available to answer any operational or general questions. For more information please contact your SEI brokerage representative or call SEI Brokerage Services at 610-676-1885.
Extreme market conditions may effect trade execution cost and performance.
Brokerage services are provided by SEI Investments Distribution Co. ("SIDCO"), a registered broker/dealer, member NASD/SIPC, and wholly owned subsidiary of SEI Investments Company. 1 Freedom Drive, Oaks, PA 19456. 610-676-1000.
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