Issue link: https://info.seic.com/i/1523140
For Financial Intermediary Use Only. Not For Retail Distribution. 11 For illustrative purposes only. Not meant to represent any actual investment. SEI Fixed Income Portfolio Management Systematic Core Strategies The SEI Systematic Core Strategies are direct indexing solutions crafted to hold the underlying securities that mirror the attributes of a selected index, providing enhanced transparency and a more individualized approach to investing. Strategy name Benchmark index Target number of securities Systematic U.S. Aggregate Bond Core Bloomberg U.S. Aggregate Bond Index 15-35 Systematic Government Bond Core ICE BofA US Treasury 3-7 Year Bond Index 7-20 Systematic Municipal Bond Core ICE BofA 1-10 Year AAA-A Municipal Securities 15-35 Laddered bond strategy example A laddered portfolio is constructed by purchasing multiple bonds, each with different maturity dates staggered over a set number of years. The maturity ranges can be short (zero to three years), medium (up to 10 years) or long (up to 30 years). When each bond matures, the proceeds are reinvested in a new bond at the maximum maturity for the strategy to maintain the ladder's structure. This design helps investors manage the risk of rising or falling interest rates. If rates are rising, the maturing principal can be invested at higher rates. If they are falling, the portfolio is still earning higher interest on the longer-term holdings that have not yet matured. Unlike owning a single or pooled vehicle like a bond fund, the ladder has maturing bonds each year seeking to provide a consistent cash flow pattern available for reinvestment. As time passes, the portfolio includes bonds purchased in periods of both high and low interest rates. The portfolio income is expected to remain consistent, creating a steady stream of income. Ladder bond strategy , , , , , Reinvest principal of , from maturing bond into , of new bonds that mature in •ve years, or • in this example. Today , , , , , • End of year