Your source for perspectives on industry challenges and opportunities affecting you and your clients.
Below are materials from SEI's Investment Management Unit. For industry-specific thought leadership, please visit the following sections:
Italy Says Arrivederci to RenziDec62016Article
The No vote is expected to lead to another round of instability for the Italian government, as well as
engender further uncertainty to the eurozone and indeed the entire European Union (EU), which is still shaky following the U.K.’s surprise Leave vote in late June.
Politics and Fed Can't Kill the U.S.Equity Bull MarketNov292016Article
The political status quo may have been upset, but a new resident in the White House isn’t going to kill the bull market in 2017. We don’t think rate hikes by the Federal Reserve (Fed) will, either.
Allocation the SEI WayNov162016Article
In the complex world of financial markets, how do you design a strategy that offers the most attractive risk profile for a desired return? It’s perhaps the single greatest challenge to an investor’s long-term success, and it’s one that we take seriously.
Election Results: Trump Makes it to the Big LeagueNov92016Article
Donald Trump stunned his critics and set a new high-water mark for the anti-establishment movement. Financial markets seem to be more volatile both immediately after a presidential election and over the next year. We will continue to maintain our investment approach while monitoring legislative developments that may create opportunities or present barriers for investors.
Markets Face Political PressureNov82016Article
As long as central banks pursue aggressively easy policies in a world mostly characterized by slow economic growth (not recession) and mild inflation pressures, any pullback in the price of riskier assets should be limited.
Risk Management: Manager ResearchOct202016Article
The manager-of-managers structure we employ is rooted in a few straightforward beliefs.
The Most Peculiar Month of the Year?Oct112016Article
With central banks implementing aggressive monetary easing in a world mostly characterized by slow economic growth and mild inflation pressures, we believe any pullback in the price of riskier assets should be limited.
Wealth and Asset Management 2021: Roubini ThoughtLab Study ResultsSep212016Article
A new study, Wealth and Asset Management 2021: Preparing for Transformative Change, delves into the implications of the shifting demographics of wealth.
A Summer Holiday for MarketsSep122016Article
Markets in August were subdued, with a partial rebound in energy prices and mixed fixed-income performance.
Rally Ignores UK Economic PainAug162016Article
The second half of 2016 began with a boost as investors rediscovered their risk appetites.
Risk Management: Governance, Culture and TechnologyJul212016Article
The second paper in our series on risk management.
The Circle of Life: Manager Research and Lifecycle AnalysisJul82016Article
In theory, a lifecycle could extend for years or decades, so it’s not intended to prescribe a particular timeline. But we see validity and a valuable business impact in considering our manager relationships in this context.
Brexit: Not the End of the WorldJul82016Article
Globally, stability and momentum appear expensive within equities, and fixed-income managers favor credit at the expense of interest-rate duration.
Keeping Calm as Markets Carry On and OnJul62016Article
The U.K.’s vote to leave the European Union (EU) will likely weigh on international financial markets as economic growth and trading relations are expected to be hindered.
Risk Management: The Intelligent Pursuit of RiskJun292016Article
In this first in our series of papers on risk management, we consider risk as something to be actively, yet intelligently, pursued.
Brexit: Britain Votes LeaveJun242016Article
Our diversified approach should serve investors well.
Britain Shows the Brexit Sign as Cameron Pleads for UnityJun202016Article
Polls place the odds of a Brexit in the hands of the 13% of voters who remain undecided.
Investment Fundamentals: Oil Price BenchmarksApr302015Article
A steady decline in crude oil prices began in the summer of 2014, bringing the Brent and WTI oil benchmarks to the forefront of daily news. The current oversupply of oil has caused prices on both benchmarks to fall by about 50 percent.
Behavioural Finance: Controlled Thinking and NeuroeconomicsApr102015Article
Many investors have made mistakes, and later asked themselves, “What was I thinking?” Behavioural research suggests we should also consider "how" we were thinking. Neuroeconomics seeks to understand the financial mind.
Diversification: The Perils of NearsightednessMar122015Article
Regardless of an investor’s level of risk tolerance, we will not allow short-term historical performance to fool us into abandoning our philosophy of diversification.
Behavioural Finance: Confirmation Bias, Cognitive Dissonance, and RecencyFeb272015Article
In this segment of our Behavioural Finance series, we will examine confirmation bias, cognitive dissonance and recency, additional behaviors that may lead us to make investment mistakes.
Investment Fundamentals: DiversificationFeb132015Article
They say variety is the spice of life. But when it comes to investing, variety can be a key to long-term success. But just what does diversification mean? And why might it be beneficial?
Behavioural Finance: Optimism and OverconfidenceJan52015Article
In this next installment, we discuss K&T’s research of human decision-making processes which are distorted by inherent biases toward optimism and overconfidence. These subjective perceptions, when present to a significant degree in the financial decision-making process, can result in miscalculating the value of an opportunity.
Behavioural Finance: Loss and Regret AversionSep252014Article
Here we address loss aversion - a behavioural phenomenon central to the development of Kahneman and Tversky’s Prospect Theory - and regret aversion, which drives investors to make inferior decisions through passive behaviour.
Behavioural Finance: The Three A's - Availability, Anchoring, and AdjustmentAug302014Article
In our last paper, we explored the biases inherent to heuristics. Now we explore availability, anchoring, and adjustment - shortcuts that are rooted in investor's inclination to project their current frame of reference on situations that are not applicable.
Behavioural Finance: Rules of Thumb and RepresentativenessJul162014Article
In Behavioural Finance: An Introduction to Human Error, we noted that Kahneman and Tversky were smart academics who found many ideas for their social science experiments in the mistakes that they themselves made as well as the mistakes that their intelligent colleagues and subjects made. Kahneman and Tversky noted some rules of thumb that often lead investors astray.