Perspectives on industry challenges and opportunities affecting you and your clients.
The Knowledge Center is 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:
Risk Management: The Intelligent Pursuit of RiskJul202016Article
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 LeaveJul202016Article
Our diversified approach should serve investors well.
Brexit: Not the End of the WorldJul202016Article
The second quarter’s most prominent event a surprise vote by U.K. citizens
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.
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.
Quarterly Market Commentary: V is for VolatilityApr72016Article
We continue to believe that global economic growth will grind its way higher, led by the advanced and commodity-consuming emerging economies.
Markets Stop, Drop, Roll and ReboundApr52016Article
Despite the dramatic equity market selloff and recovery during the first quarter, we continue to believe that a global recession remains unlikely. We expect central banks (including the Fed), to continue their stimulus efforts and the global economy to grind higher as a result.
Commodities: Be Patient, We Expect it Will Get BetterMar162016Article
As the impact of lower prices filters through the production side, we may see a modest recovery in commodity prices this year.
February Commentary: A Tale of Two HalvesMar42016Article
The volatility of the past year and the pain felt in certain asset classes reminds us more of the 2011 experience than the calamitous tumult of 2008.
Brexit Remains UnlikelyFeb232016Article
A Brexit bears monitoring, but we have not taken positions in funds or made asset allocation changes.
Energy, China, Banking vs Goals, Time Horizon, Risk ToleranceFeb222016Article
At the midpoint of February the now less-new New Year is still rocky.
Investors Emboldened in OctoberNov102015Article
The fourth quarter began favorably; economic conditions were mixed in October, but major central banks remained accommodative. The combination appears to have emboldened investors, whose return to equity markets erased much of the third quarter’s losses.
Collateral Damage to Commodities; China's Effect in AugustSep42015Article
Global equity markets performed poorly in August as concerns about the broad impact of China's selloff spread.
Investment Fundamentals: DeflationApr152015Article
Inflation measures the overall change in prices of goods and services over a set period—and deflation is the term used when these prices fall over time.
Behavioral Finance: Confirmation Bias, Cognitive Dissonance, and RecencyApr142015Article
In this segment of our Behavioral Finance series, we will examine confirmation bias, cognitive dissonance and recency, additional behaviors that may lead us to make investment mistakes.
Investment Fundamentals: DiversificationFeb112015Article
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?
Investment Fundamentals: CurrencyDec32014Article
The latest in our Investment Fundamentals series. This edition covers how currency promotes economic activity and affects purchasing power.
Investment Fundamentals: Standard Deviation (Volatility)Nov112014Article
Standard deviation, also referred to as volatility, measures the variation from average performance. Within the context of a diverse portfolio, allocations to riskier assets can make sense even for conservative investors, as these allocations can actually reduce a portfolio’s overall volatility.
Behavioral Finance: Loss and Regret AversionOct272014Article
According to Prospect Theory, investors tend to qualify gains and losses through the lens of various heuristics (rules of thumb), thus limiting their ability to make reasonable decisions. Loss aversion and regret aversion can drive investors to make inferior decisions through passive behavior.
Behavioral Finance: The Three A's - Availability, Anchoring, and AdjustmentOct272014Article
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 RepresentativenessJul302014Article
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.
Risk Parity: The ConceptSep32013Article
Investors are typically counselled to diversify capital across asset classes in an effort to reduce risk. In light of this, it could be something of a surprise to learn just how concentrated a traditionally diversified portfolio may be in terms of its sources of risk.
Investment Fundamentals: Bond Market MathsAug72013Article
In recent years, global central banks have kept interest rates low in an effort to support the struggling global economy. Since hitting multi-generational lows, interest rates (and bond yields) have spiked significantly higher.