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You can actually hurt your chances for attractive returns by chasing "hot" investments. Yesterday's top performer could be tomorrow's laggard. The chart takes the top quartile of U.S. Large Blend funds based on 2012-2016 performance and tracks their subsequent quartile rankings over the following five-year period (2017-2021). It also identifies where the top quartile managers over the most current five-year period (2017-2021) ranked in the previous five-year period (2012-2016). Ranking managers by their five- year returns provides little insight into future performance. SEI believes that a full assessment of qualitative and quantitative factors is required to identify skilled managers. 3. Assuming past performance guarantees future results Looking at listings of managers ranked by their three-, five- or 10-year returns provides little insight into future performance. Some investors learn about the latest "hot" fund or stock and sell their current holdings to buy it. This isn't a consistently reliable method of investing. Here's how investment decisions based on past performance alone can be a mistake. Years - Years - Years - Years - † Top Quartile * Top Quartile Based on the Morningstar universe of 4,334 US Large Blend fund. * 21% of top-quartile funds from 2012-2016 are no longer included within the Morningstar Large Blend category. * 25% of top-quartile funds from 2017-2021 did not have a full five-year track record during the previous period. Data as of 12/31/2021. Past performance is no guarantee of future results. Bonds and bond funds will decrease in value as interest rates rise. High yield bonds involve greater risks of default or downgrade and are more volatile than investment grade securities, due to the speculative nature of their investments. Narrowly focused investments and smaller companies typically exhibit higher volatility. International investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from economic or political instability in other nations. Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume. In addition to the normal risks associated with investing, REIT investments are subject to changes in economic conditions, credit risk and interest rate fluctuations. Index returns are for illustrative purposes only and do not represent actual portfolio performance. Index returns do not reflect any management fees, transaction costs or expenses. One cannot invest directly in an index. Past performance does not guarantee future results. Information provided by SEI Investments Management Corporation (SIMC), a wholly owned subsidiary of SEI Investments Company (SEI). Investing involves risk, including possible loss of principal. Diversification may not protect against market risk. This material 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 and is for educational purposes only. There can be no assurance your goals will be met. © 2 0 1 9 –2 0 2 2 S E I 2 2 0 2 4 4 . 2 6 ( 0 6 / 2 2 ) To learn more about how to invest successfully and help you meet your investing goals, contact your financial advisor. © SEI 2019 190682.01 (08/19)

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