Issue link: https://info.seic.com/i/1540521
Tailwinds & Headwinds. 12 months to Q3 2025 Positioning Key asset classes / Regions Key managers + (Strategic) Broad equity exposure – driven primarily by sentiment and fear of missing out on rally seen in more expensive segments of the market. SEI Select Value, SEI Select Momentum + (Strategic) Diversification within fixed income. SEI High Yield Fixed Income, SEI Emerging Market Debt - (Strategic) UK inflation-linked bonds – real yields rose across the curve in Q3, driven mainly by nominal rates. SEI UK Index Linked Fixed Interest Fund Active Management + (Active) Outperformance driven largely by exposure to momentum factor, along with an overweight to select Chinese and Korean stocks. Renewed enthusiasm in the AI trend was beneficial, particularly in Taiwan. SEI Emerging Markets Equity Fund SEI, Robeco, JO Hambro + (Active) Performance driven by monetary policy easing, the economic rebound, and a rotation from expensive mega-caps into discounted small-cap stocks. SEI Small Cap Select Fund SEI + (Active) Strongest contribution came from positions designed to benefit from a steeper yield curve in the US. SEI Dynamic Asset Allocation Fund SEI - (Active) Quality alpha source has faced headwinds due to investor preference for more speculative stocks driven by sentiment rather than fundamental analysis. SEI Select Quality Fund SEI, Lazard, PineStone Views. Theme Views Macro/Cross-asset · Inflation risks remain biased to the upside. Service prices are showing surprising strength, and tariffs are still making their way through the system. · U.S. growth data points are surprising to the upside. While employment has been severely downgraded, there is still no global recession in sight. · Neutral risk assets. Equity · Diversity in equities remains - particularly among geographies, market capitalisations, and themes. · Strategic exposures to value, quality, and momentum remain intact, with an emphasis on value. · Active management should benefit/help investors avoid historically high concentration risk in the U.S. Fixed income · We remain positioned for a continued steepening in U.S. and European yield curves. · Duration positioning remains broadly neutral. · We continue to favour securitised versus corporate debt. These are the views and opinions of SEI which are subject to change. They should not be construed as investment advice. 5