SOURCE: SEI

SEI

December 14, 2011 11:00 ET

SEI Quick Poll: Volatility Here to Stay, Advisors Still Playing Catch-Up on Strategy and Implementation

3 of 4 Advisors Say They Need to Learn More About Managed Volatility Strategies

OAKS, PA--(Marketwire - Dec 14, 2011) - According to an SEI (NASDAQ: SEIC) Quick Poll released today, nearly all financial advisors believe market volatility is here to stay for the next two years, yet more than one-third (38 percent) have not implemented managed volatility strategies into clients' portfolios. While most advisors think the use of managed volatility strategies will be either "very important" or "helpful" in 2012, 76 percent say they need to learn more about these investment strategies. The survey was completed by 200 financial advisors.

"Clearly, most advisors are looking for investment strategies that protect their clients' portfolios during this market volatility," said Kevin Crowe, Head of Product Development for the SEI Advisor Network. "Yet, many recognize they don't currently have the answer. It's during markets like these that clients turn to their advisors to guide them through the rough seas. It is critical for advisors to identify resources to learn more about managed volatility strategies and incorporate them into their clients' portfolios."

Volatility is having an impact on clients. More than half (52 percent) of advisors say their clients are "seasick from the choppy ride" and more than one-third (39 percent) have "accepted this as the 'new normal'." The impact isn't just limited to psychological impact. Advisors said that of clients that made changes, 98 percent made their portfolio more defensive. But advisors also revealed that more than one-third of their clients (36 percent) have not made changes to their portfolio in the last six months.

In response to this need, for those clients seeking an equity allocation in their portfolios during volatile markets, SEI currently offers three managed volatility funds -- U.S. Managed Volatility, Global Managed Volatility, and Tax-Managed Managed Volatility. The U.S. Managed Volatility Fund has outperformed the S&P 500 by more than 800 basis points in the first three quarters of 2011. This same fund outperformed the S&P by 745 bps in 2008. (Click here for the Fund's performance report.) The three funds, which are part of SEI's stability focused strategies, use a multi-manager approach to portfolio construction and provide diversification by avoiding overconcentration in a single investment style, sector, or market trend.

"Investors are understandably concerned about their portfolios, so advisors need to seek new ways to alleviate those fears -- both from an investment standpoint and through communications," said Michael Byrne of Lighthouse Planning Consultants in Cherry Hill, NJ. "Whether volatility has become the 'new normal' or not, advisors should learn as much as they can about managed volatility strategies that will help them maintain their clients' portfolios value."

When asked how they planned to learn more about managed volatility, 50 percent said they will rely on investment partners, 35 percent will use other industry sources, and 15 percent will depend on internet research.

To learn more about the SEI Advisor Network, 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 5,800 advisors who work with SEI, and $28.8 billion in advisors' assets under management (as of Sept. 30, 2011). 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 September 30, 2011, through its subsidiaries and partnerships in which the company has a significant interest, SEI manages or administers $395 billion in mutual fund and pooled assets or separately managed assets, including $162 billion in assets under management and $233 billion in client assets under administration. For more information, visit www.seic.com.

Total Return for the SIMT U. S. Managed Volatility Fund As of 9/30/11- 1-Year: 7.63%, 3-Year: 2.12%, 5-Year: 1.62%, Since Inception (10/28/04): 4.32%, Expense Ratio: 1.29% (1.01% After Waivers*):

*Fee Waivers are voluntary and may be discontinued at any time.

Performance data quoted is historical and past performance does not guarantee future results. Current performance may be higher or lower. Performance current to the most recent month end can be obtained by calling 1-800-DIAL-SEI. The principal value and investment return of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original value.

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 regarding the funds or any stock in particular, nor should it be construed as a recommendation to purchase or sell a security, including futures contracts. There is no assurance as of the date of this material that the securities mentioned remain in or out of SEI funds.

To determine if the Fund is 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' prospectus, which may be obtained by calling 1-800-DIAL-SEI. Read it carefully before investing.

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. The risk that securities selected as part of a managed volatility strategy may underperform other segments of the equity markets or the equity markets as a whole. Narrowly focused investments and smaller companies typically exhibit higher volatility. The Fund may buy and sell securities frequently. This may result in higher transaction costs and additional capital gains tax liabilities.

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. 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 (SEI). Neither SEI nor its subsidiaries are affiliated with your advisor.