Portfolio design

After we establish the most suitable asset allocation for a portfolio, we next consider how to gain exposure to each of the desired asset classes and markets. The portfolio’s investment objectives provide a guide in determining its appropriate return target and risk profile.

Our goal: to achieve the maximum level of returns for a given level of risk.

At the core of this effort is ongoing research about what drives a portfolio to outperform a benchmark. These are often referred to as drivers of excess returns, or alpha sources.

Our research combines proprietary market analysis and modeling, discussions with external investment managers, and third-party academic research.

Our portfolio design process includes offerings from external investment managers or from our own cost-effective internally-managed portfolios*.

Ongoing research:

• Identifying relevant alpha sources 
• Determining the optimal combination of alpha-source exposures
• Evaluating portfolio characteristics and risks 
• Assessing likely relative performance in different investment environments

*Internally-managed portfolios not available in Canada. 

SEI’s Investment Management Unit is a team within SEI Investments Management Corporation (SIMC), which serves as investment advisor. SIMC is a wholly owned subsidiary of SEI.