8 SEI Managed Account Solutions
The power of an overlay
portfolio manager.
Seeking to provide superior risk management
UMAs offer robust risk management capabilities that can help protect your investment portfolio
during periods of market volatility. By diversifying across multiple investment strategies, asset
classes, and investment managers within a single UMA, you can help mitigate risk and reduce
portfolio volatility, in an effort to enhance the overall stability of your investment portfolio.
All investment managers and styles present a level of risk. However, diversifying across two or
more managers—each of which specializes in a different investment style—potentially lowers the
risk, as measured by tracking error or the level of deviation from an index.
Hypothetical example of SEI portfolio: Strategic manager allocation
Manager Weight Level of risk*
Manager 1 30% 5.0%
Manager 2 35% 4.0%
Manager 3 15% 8.5%
Manager 4 20% 6.5%
Portfolio 100% 3.0%
TA
X
C
O
O
R
D
I
N
A
T
O
R
OV
E
R
L
A
Y
P
O
RT
F
O
L
I
O
M
A
N
A
G
E
R
*Level of risk measured by tracking error to benchmark. The closer the "risk" number is to 0, the
lower the amount of risk relative to the benchmark or index.
