FINANCIAL ADVISORS

40

Years

Of innovation.

100

Investment Analysts

Across the globe.

Asset Management

Sound Design is Non-Negotiable

The road to retirement and other short- and long-term goals requires investment strategies that are built with the long haul in mind. It requires vehicles that strive to produce results under all conditions. Quality design, solid construction, and efficiency—for the financial road, these qualities are integral.

The sound design behind our investment strategies helps you navigate sudden twists and turns, guiding clients in the direction of their ultimate financial destinations. These strategies are the product of SEI’s tested investment philosophy  developed through 40 years of innovation.  For financial advisors, there are six steps in this process.

  1. Asset allocation. The specific mix of stocks, bonds, and cash is critical in pursuing investor goals. SEI sponsored a landmark 1991 study that concluded that asset allocation—not market timing or stock selection—is the primary factor in determining why different portfolios exhibit different return results
  2. Portfolio design. How we engineer our strategies helps to ensure investors are invested in a diversified mix of stocks, bonds, alternatives and cash investments.  Our view of diversification doesn’t end there.  Within the asset classes are investment styles, sub styles, individual money managers, and finally, individual securities.
  3. Investment manager selection. We believe utilizing specialist money managers helps to produce more consistent results than generalists who drift from one style to another. We believe that identifying, hiring and managing specialist money managers helps to deliver more consistent performance. We call this process “managing the managers .”
  4. Portfolio construction and management. Each market segment exhibits different characteristics, return potential and risks. Focusing on diversification, we structure our portfolios across all segments designed to keep investors focused on the road ahead.
  5. Tax management. The impact of taxes could keep investors from reaching their financial destination. That’s why in the mid-1990s, SEI completed extensive research into the effect of taxes on an investment portfolio.** As a result, we focus on tax management to help potentially enhance after-tax returns.
  6. Risk Management. As an active manager, we vigilantly monitor each manager’s portfolio to help ensure it functions as it should. Managers who deviate from their philosophies or fail to achieve stated goals are subject to replacement. To help address inevitable changes in the markets, the asset mix in an investor’s portfolio is systematically rebalanced to its target. This should help to reduce risk and stay on track.

* Source: Brinson, Singer and Beebower (1991)

**Managing After-Tax Returns, 1995; Managing After Tax Returns – An Update, 1998, Greg McIntire, SEI; Journal of Wealth Management, David M. Stein, 2003.

This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results.  This information should not be relied upon by the reader as research or investment advice.  This information is for educational purposes only. 

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.

SEI Investments Management Corporation is the adviser to the SEI funds, which are distributed by SEI Investments Distribution Co (SIDCO). SIMC and SIDCO are wholly owned subsidiaries of SEI Investments Company.

There are risks involved with investing, including loss of principal. Current and future portfolio holdings are subject to risks as well.  Diversification may not protect against market risk.

Diversification may not protect against market risk.  There is no assurance the goals of the strategies discussed will be met.

Neither SEI nor its affiliates provide tax advice. Please note that (i) any discussion of U.S. tax matters contained in this communication cannot be used by you for the purpose of avoiding tax penalties; (ii) this communication was written to support the promotion or marketing of the matters addressed herein: and (iii) you should seek advice based on your particular circumstances from an independent tax advisor.