Advisor Flipbooks

Custom strategy mapping. For Financial Intermediary Use Only. Not for Public Distribution. 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. This information is for educational purposes only. There are risks involved with investing, including loss of principal. There is no guarantee that the investment objective will be fulfilled. Diversification may not protect against market risk. Please note that PC model allocations and/or investment components are subject to change. Short- and long-term tax impact should be considered. Risk Evaluation process: 1. SEI's Investment Management Unit develops Capital Market Assumptions (CMAs) for each of the asset classes listed above. The CMAs are professional estimates of expected return, volatility and correlation among asset class. 2. Each mutual fund or ETF underlying certain SEI strategies, as well as all third-party manager mandates, are assigned to one of the asset classes listed. With these assignments, each mutual fund, ETF and third-party manager strategy is aligned with a corresponding expected standard deviation. Non-SEI fund and individual securities have also been assigned to one of the asset classes listed as an accommodation for proposals that may include non-SEI fund or individual securities. 3. Using proposed weights for investment products and/or strategies in a client portfolio, along with the expected standard deviations and matrix of expected cross-asset class correlations, the next step is to calculate an expected level of volatility for the proposed client portfolio. Investment Risk Classification Asset Class Low Risk Medium Risk High Risk Short Term Corporate Ultra Short Term Short Term Government Intermediate Term Government U.S. Core Fixed Income Short Term Municipal TIPS Senior Bank Loans Mortgage Backed Developed International Fixed Emerging Markets Debt Municipal Cash Cash Global Managed Volatility Long Term Government Intermediate Term Municipal High Yield Municipal Intermediate Term Corporate Long Term Corporate High Yield Preferred Securities Hedge/ Alternative Multi-Asset Income Multi-Asset Inflation Managed Multi-Asset Capital Stability All Cap Equity Large Cap Blend Large Cap Growth Large Cap Value Mid Cap Blend Mid Cap Growth Mid Cap Value Small Cap Blend Small Cap Growth Small Cap Value U.S. Managed Volatility Real Estate Developed International Equity Emerging Markets Equity Long Term Municipal Commodities Multi-Asset Accumulation 4. The level of expected volatility corresponds with a Investment Strategy Risk classification of High, Medium, or Low. 5. Overrides are required in the following circumstances: (1) the investment strategy risk of the proposed portfolio is more aggressive than the investor's blended risk tolerance; (2) the investment strategy risk of the proposed portfolio is less aggressive than the investor's blended risk tolerance; or (3) the proposed portfolio being created contains non SEI funds or individual securities. 6. Please see the SEI Multi-Asset Table on the following page for an overview of the investment strategy risk levels of models made available by SEI.

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