Our strategic focus on active asset management is designed to manage investment risk and provide more consistent returns
Five investment principles guide our disciplined approach, offering investors a high level of diversification across multiple asset classes.
1. Set a firm foundation with asset allocation.
- Combine top-down, macroeconomics with bottom-up, underlying investment perspectives
- Build well-diversified asset allocation portfolios linked to investor goals
- Create boundaries for portfolios’ risk exposure and return potential
- Identify important market inflection points
- Systematically consider the risk arising from the sizing of active decisions
- Apply general investor risk preferences to all aspects of the investment process
2. Diversify wisely with active portfolio design.
- Take a multi-dimensional approach to portfolio construction, combining different asset classes, geographic regions, and investment styles
- Create portfolios designed to deliver consistent long-term results in line with investor goals
3. Select and evaluate leading managers.
- Develop forward-looking expectations regarding execution in different economic environments
- Select managers using a process that differentiates manager “skill” from “luck”
- Aim to have the best managers in the portfolios at all times
- Evaluate investment managers using a common framework, within and across disciplines
4. Keep investments on track with active portfolio construction and management.
- Hire managers directly for our specialized mandates
- Use a manager of managers approach to implement strategic fund portfolio-level changes more cost effectively
- Actively measure and allocate to each manager based on their risk allocation
- Ensure consistency between managers’ investment styles and their assigned objectives
5. Actively manage risk.
- Operate risk management separate and independent from investment strategy
- Focus on common risks across and within asset classes
Information and services provided by SEI Investments Management Corporation, a wholly owned subsidiary of SEI Investments Company.
There are risks involved with investing, including loss of principal. Diversification may not protect against market risk. There is no assurance the goals of the strategies discussed will be met.
For those SEI Funds which employ the "manager of managers" structure, SEI Investments Management Corporation (SIMC) has ultimate responsibility for the investment performance of the Funds due to its responsibility to oversee the sub-advisers and recommend their hiring, termination and replacement.