SEI’s Global Unconstrained Alpha Equity Fund Proves Its Worth In First Full Year

Weathering Global Financial Crisis, Fund Value Surges to US$300 Million Mark

JOHANNESBURG, 10 Nov. 2009 – Little more than a year after its launch, the SEI Global Unconstrained Alpha Equity Fund – the first of its kind in South Africa for offshore institutional investors – has become one the of the country’s most successful funds with its value already approaching US$300 million.

Introduced in August last year, the fund was specifically designed by SEI Investments (South Africa) Limited, a subsidiary of SEI (NASDAQ:SEIC), for local institutions following consultation about their offshore investment needs.

Adopting its proven multi-manager strategy, SEI launched the fund with investor commitments of US$106 million. The fund, aimed at pension funds seeking to achieve higher relative returns than the MSCI World Index in a manner more efficient than a single manager implementation, was structured to maximize alpha and to reflect the views of investors in tactical strategies and portfolio allocations.

While the fund’s value dipped to $70 million in March this year, it was ideally positioned to catch the recent strong rebound on global equity markets and surpass the US$300 million mark at the end of October.

In the first nine months of 2009, the fund returned 30.8 percent, compared to the MSCI World Index return of 24.9 percent. In the 12 months to Sept. 30 – its first full year of operation – the fund’s alpha was 3.6 percent.

“The fund was set up after intensive consultation with local institutions who wanted more innovation and the ability to achieve outperformance in the global equity arena. 

“Essentially, the fund aims to produce excess returns by employing the best ideas across multiple managers and strategies, utilizing expanded investments powers and striking the optimum balance between investment return and managing risk,” says Rudi Schmidt, managing director of SEI South Africa.

Significantly, the fund only showed a negative return in two of its first 12 months, this being during the peak of the global investment market crisis.

According to Schmidt, the SEI Global Unconstrained Alpha Fund takes advantage of expanded investment options and powers made available through UCITS III regulation.

“Our multi-manager fund comprises high performance, high conviction fund managers, which provide considerable offshore diversification to local institutional investors. 

“The returns we have been able to achieve to date are due to SEI’s critical mass in the market, our systems, and our experience,” adds Schmidt.

Importantly, the fund provides a complementary strategy to single manager products with high risk and high rewards profiles. It improves consistency of return through exposure to a number of alpha sources without exposure to single manager or style and cycle risks.

Currently, the SEI Global Unconstrained Alpha Fund comprises around a dozen institutional investors – up from three when it started – and Schmidt is optimistic that it will attract more investors now that a track record of four quarters can be shown.

About SEI’s Institutional Group

SEI’s Institutional Group delivers integrated healthcare, retirement and nonprofit investment solutions to over 500 global institutional clients (of which 340 are U.S. based) in six different countries. SEI enables clients to meet financial objectives, reduce business risk, and fulfill their due diligence requirements through implemented strategies for the management of defined benefit plans, defined contribution plans, endowments, foundations and other balance sheet assets. For more information, visit http://www.seic.com/institutions/.

About SEI

SEI (NASDAQ:SEIC) is a leading global provider of outsourced asset management, investment processing and investment operations solutions. The company’s innovative solutions help corporations, financial institutions, financial advisors, and affluent families create and manage wealth. As of September 30, 2009, through its subsidiaries and partnerships in which the company has a significant interest, SEI administers $383 billion in mutual fund and pooled assets and manages $156 billion in assets. SEI serves clients, conducts or is registered to conduct business and/or operations, from numerous offices worldwide. For more information, visit www.seic.com. 

Collective Investment Schemes in Securities (“CIS”) are generally medium to long term investments. The value of participatory interests may go down as well as up and past performance is not necessarily a guide to the future. Fluctuations or movements in exchange rates may cause the value of underlying international investments to go up or down. CIS are traded at ruling prices and can engage in borrowing and scrip lending. A schedule of fees and charges is available upon request from SEI SA. Commission and incentives may be paid and if so, would be included in the overall costs.

The SEI Global Unconstrained Alpha Equity Fund is priced daily using the Net Asset Value calculation. Figures quoted are from SEI, for the period ending 30 September 2009, using NAV prices, with income distributions reinvested. Performance is quoted in U.S. Dollar terms.

A prospectus is available upon request from SEI Investments (South Africa) Ltd. SEI Investments (South Africa) Limited is an authorized financial services provider.