Issue link: https://info.seic.com/i/1445430
Introduction In this report, the SEI Investment Management Unit provides a summary of SEI mutual fund performance during the quarter. For each Fund we address: Fund performance, the portfolio manager's positioning at the end of the prior quarter, the portfolio manager's outlook going forward and how it's reflected in the Fund's positioning. ABOUT THE MANAGER-OF-MANAGERS PROCESS SEI generally uses a multi-manager approach to portfolio construction that seeks to generate excess returns (i.e., returns in excess of benchmark index) and at the same time provides diversification by avoiding overconcentration in a single investment style, sector or market trend. Our analysis seeks to identify each manager's competitive advantage and characteristics of that advantage that can be monitored on an ongoing basis. Asset allocation to a given manager is based on the manager's skill set, the current macro-economic environment and the risk inherent to each manager's strategy. THE SEI FIVE-STEP INVESTMENT MANAGEMENT PROCESS INNOVATIVE ASSET ALLOCATION We construct multiple portfolios to address a wide variety of investor goals, and dedicate considerable resources to ongoing asset allocation decisions that help our investment offerings keep pace with an evolving market environment. SOPHISTICATED PORTFOLIO DESIGN Our portfolio design process entails a rigorous evaluation of factors that have the potential to generate solid returns in a given asset class. We look for sources of excess return that have demonstrated staying power over the long term across multiple markets. RIGOROUS INVESTMENT MANAGER SELECTION We seek managers that can deliver consistent results, and differentiating manager skill from market-generated returns is one of our primary objectives. Our aim is to identify, classify and validate manager skill. STRATEGIC PORTFOLIO CONSTRUCTION AND MANAGEMENT Our portfolio construction process is designed to find an optimal level of diversification between sources of excess return and investment managers. We generally use a manager-of-managers approach, which we believe will result in better risk management and a more cost-effective implementation. INDEPENDENT RISK MANAGEMENT Our Risk Management Group focuses on common risks across and within asset classes. Independent of managers and other investment groups, the Risk Management Group is able to objectively look at the entire spectrum of SEI's investment offerings to ensure risk mandates are being met 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' summary and full prospectuses, which may be obtained by calling 1-800-DIAL- SEI. Read it carefully before investing.