SOURCE: SEI

SEI

August 09, 2012 10:00 ET

SEI Introduces Next Generation of Investing: Objective-Based Funds

New Funds Take Multi-Asset Approach to Align With Investor Objectives

OAKS, PA--(Marketwire - Aug 9, 2012) - SEI (NASDAQ: SEIC), an industry leader in innovative investment solutions, today announced the launch of a new approach for individual investors: objective-based investing. The new model is an evolution of SEI's goals-based approach, which seeks to align the proper capital market exposures and specific risk measures with an investor's multiple goals. Objective-based investing takes this a step further by developing broad, diversified multi-asset portfolios specifically designed to meet a particular investor objective. SEI's new Objective-Based Funds address four distinct investor objectives: maintaining assets, growing assets, generating income, and managing for inflation. The addition of these four new Funds to the SEI platform should further enhance the client experience by providing newly focused solutions that address the unique situation of each individual investor.

"For 30 years, SEI has been at the forefront of investment innovation," said Kevin Crowe, Managing Director of Product Development, SEI Advisor Network. "We were pioneers in the goals-based approach. And, today, we are among the first to champion an objective-based approach. We believe this will be a game-changer for advisors as they continue to seek ways to deliver value to clients. Advisors now have access to an approach that is both market-sensitive and client-centric."

Objective-based investing is an evolutionary extension of SEI's goals-based approach, first launched in 2003. Traditionally, asset classes and benchmarks dictate an investor's strategic objectives and allocation strategy. However, with objectives-based investing, the approach begins by defining the objectives an investor must adopt to meet a specific financial goal (accumulation, inflation management, income, and stability of capital). From there, SEI determines the asset classes, sectors, and investment approaches that should enable investors to meet the objectives, with an appropriate level of risk.

"With goals-based investing, we used to ask clients where they'd like to be in 10, 20, or 30 years," said Doug Parker, of Sage, Rutty & CO Inc. in Rochester, New York. "Now, with objectives-based investing, we're not only asking where they want to be, we're helping them understand the risks they need to avoid and working with them on how they want to get there. It's a significant shift for investors, but they are quickly embracing this new approach. It's also a change in how they view their asset allocations. We're no longer preaching the traditional, 60/40 portfolio, but rather an asset-agnostic approach that responds to the market conditions and is invested properly."

The four new funds are available as stand-alone products or part of a set of model portfolios. In each case they are implemented by an advisor with knowledge of an investor's personal circumstances. Additionally, these funds allow advisors to offer a tactical solution that can change allocations based on shifting market conditions.

The four funds by SEI are designed to meet distinct objectives:
Multi-Asset Capital Stability - The Fund seeks to manage the risk of loss while still seeking to generate some growth by selecting investments from among a broad range of asset classes. Managing the risk of loss does not mean preventing losses, but rather managing the Fund in a manner intended to limit the level of losses that the Fund could incur over any particular period.
Multi-Asset Accumulation - The Fund seeks to generate total return over time by selecting investments from among a broad range of asset classes based upon SEI Investment Management Corporation's (SIMC) or the sub-adviser's expectations of risk and return.
Multi-Asset Income - The Fund seeks to generate total return with an emphasis on income by selecting investments from among a broad range of asset classes based upon SIMC's or the Sub-Adviser's expectations for income and, to a lesser extent, capital appreciation.
Multi-Asset Inflation Managed - The Fund seeks to generate "real return" (i.e., total returns that exceed the rate of inflation over a full market cycle, regardless of market conditions) by selecting investments from among a broad range of asset classes, including fixed income and equity securities and commodity investments.

To learn more, please visit www.seic.com/advisors.

About The SEI Advisor Network
The SEI Advisor Network provides financial advisors with turnkey wealth management services through outsourced investment strategies, administration and technology platforms, and practice management programs. It is through these services that SEI helps advisors save time, grow revenues, and differentiate themselves in the market. With a history of financial strength, stability, and transparency, the SEI Advisor Network has been serving the independent financial advisor market for more than 16 years, has over 4,900 advisors who work with SEI, and $31.7 billion in advisors' assets under management (as of June 30, 2012). The SEI Advisor Network is a strategic business unit of SEI. For more information, visit www.seic.com/advisors.

About SEI
SEI (NASDAQ: SEIC) is a leading global provider of investment processing, fund processing, and investment management business outsourcing solutions that help corporations, financial institutions, financial advisors, and ultra-high-net-worth families create and manage wealth. As of June 30, 2012, through its subsidiaries and partnerships in which the company has a significant interest, SEI manages or administers $424 billion in mutual fund and pooled or separately managed assets, including $182 billion in assets under management and $242 billion in client assets under administration. For more information, visit www.seic.com.

SEI Investments Management Corporation (SIMC) 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.

For those SEI Funds which employ the 'manager of managers' structure, SIMC has ultimate responsibility of the investment performance of the Fund due to is responsibility to oversee the sub-advisers and recommend their hiring, termination and replacement.

There are risks involved with investing, including loss of principal. Current and future portfolio holdings are subject to risks as well. Investing in the Funds is subject to the risks of the underlying funds. Asset allocation may not protect against market risk. Bonds and bond funds will decrease in value as interest rates rise. Due to their investment strategies, the Funds may buy and sell securities frequently. The use of leverage can amplify the effects of market volatility on the Fund's share price and may also cause the Fund to liquidate portfolio positions when it would not otherwise be advantageous to do so in order to satisfy its obligations.

The Fund uses investment techniques with risks that are different from the risks ordinarily associated with fixed income and equity investments. Smaller companies and narrowly focused investments typically exhibit higher volatility. Investments in commodity-linked securities may be more volatile and less liquid than direct investments in the underlying commodities themselves. Commodity-related equity returns can also be affected by the issuer's financial structure or the performance of unrelated businesses. The primary risk of derivative instruments is that changes in the market value of securities held by the Fund and of the derivative instruments relating to those securities may not be proportionate. Derivatives and swaps are also subject to illiquidity and counterparty risk. Bonds and bond funds will decrease in value as interest rates rise. High yield securities may be more volatile and be subject to greater levels of credit or default risk.

To determine if the Funds are an appropriate investment for you, carefully consider the investment objectives, risk factors and charges and expenses before investing. This and other information can be found in the Funds' prospectuses, which can be obtained by calling 1-800-DIAL-SEI. Read them carefully before investing.

  • Not FDIC Insured
  • No Bank Guarantee
  • May Lose Value