Issue link: https://info.seic.com/i/1537927
Inside Your Conservative Fund. Positioning & Outlook Asset Class Positioning Outlook Equity Focused on defensive stocks that are less sensitive to economic factors and adverse market movements. With ongoing uncertainty expected ahead, our defensive positioning aims to minimise market volatility. We continue to emphasise diversification within equities, across sectors and geographies. Fixed Income Diversified across various fixed-income funds to mitigate interest rate risk. We anticipate interest rates will remain higher than expected for longer. Alternatives A variety of assets designed to provide downside protection in adverse markets. We still expect inflation to remain sticky supporting our exposure to inflation hedge assets. New managers Q2: Fund Old Manager New Manager Reason SGMF Global Fixed Income & Global Opportunistic Fixed Income Wellington Management International Ardea Investment Management Ardea runs a value fund from the UK, which is focused around delivering uncorrelated outperformance, that's not tied to macro moves or the broader fixed income environment, which will be a great diversifier for portfolios. SGMF Select Value Poplar Forest Capital Tocqueville Asset Management Retaining our conviction in lead portfolio manager Dale Harvey, who has moved to a larger asset manager called Tocqueville. Building Block Insight SGMF Global Managed Volatility Fund (GBP Inst) This fund has delivered 10.40% over one year, with 3.16% alpha (relative to MSCI World as Benchmark) Drivers ● The funds defensive sector positioning proved to be favourable as riskier sectors (information technology, consumer discretionary) slipped and less risky sectors (consumer staples, health care, and utilities) outperformed. An underweight to the so-called Magnificent 7 group of mega-cap tech-related names also contributed. Positioning ● Positioning did not change much over the period. ● The fund remains defensively positioned and broadly diversified, with an underweight to the largest stocks in the benchmark. Source: SEI IMU. All data as at 30th June 2025. Data includes equity funds managed by SEI Investment Management Company and SEI Investments Global Ltd. 6