Issue link: https://info.seic.com/i/1456554
17 Investment manager selection 3. * Alpha is the measure of excess returns relative to a benchmark index—and alpha sources are the drivers of these excess returns. Evaluating potential alpha sources is a key aspect of SEI's investment process. SEI & client-specific filters Asset Managers Universe Qualitative review Qualitative analytics Shortlist of recommended managers Asset manager universe • Hundreds of managers with varying firm structures and cultures, applying diverse investment approaches SEI & client-specific filters • Asset-class and SEI alpha source* filters • Client filter—for example, socially responsible, boutique manager Qualitative review • Manager interviews and on-site visits • Firm overview—stability, culture, and alignment • Team analysis—structure, experience, and resources • Comprehensive process review—understanding the "edge" • ESG assessment Quantitative analytics • Historical holdings review • Factor analysis Shortlist of recommended managers SEI seeks relevant and explanatory supporting rationale that they believe defines a manager's competitive advantage. A multi-manager approach to optimize results Multi-manager diversification distinguishes SEI from most other investment companies. They use substantial global resources to search the world for leading investment managers with innovative investment ideas. And they provide retail investors with access to institutional investment managers, who typically have high minimum account requirements and are generally only available to large organizations. The manager selection process is an exacting, step-by-step approach that starts with identifying opportunities, inefficiencies, and diversified sources of returns in the markets. These managers are given specific asset management assignments to handle security selection for their portions of the portfolio. SEI takes responsibility for hiring, monitoring, and replacing the independent investment managers in our program.