SEI has announced the launch of the SEI Systematic Core Strategies (“the Strategies”) that seek to modernize the traditional structure of passive investing by directly purchasing a subset of individual stocks within a broad market index. The Strategies aim to give independent advisors a cost-effective way to provide their clients with greater transparency and tailored solutions that best suit their financial goals and sustainable investing priorities
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“The SEI Systematic Core Strategies represent the most recent and, more importantly, the largest leap we’ve taken in providing advisors a true path to investor personalization,” said Wayne Withrow, Head of Independent Advisor Solutions by SEI. “By harnessing the power of technology, the Strategies offer the ability to personalize the traditional structure of passive investments, such as index mutual funds and exchange-traded funds.”
The Strategies, designed and managed by SEI’s Investment Management Unit, can be easily implemented and personalized within a client portfolio:
- The Systematic U.S. Large Cap Core Strategy tracks the Russell 1000 Index with approximately 150 underlying securities.
- The Systematic U.S. All Cap Core Strategy tracks the Russell 3000 Index with approximately 250 underlying securities.
- The Systematic International Developed Core (ADR) Strategy tracks the MSCI EAFE Index with approximately 150 underlying securities.
“We created the Strategies to provide a means for independent advisors to offer clients more flexible and personalized investment options,” said J. Womack, Director of Investment Products & Services for Independent Advisor Solutions by SEI. “Each client’s needs are unique. By offering a way to directly purchase a subset of the component stocks within three broad market indices, advisors can offer their clients true personalization, control and transparency within their portfolios, as well as advanced strategies for investment tax management.”
Through individual stock ownership, the Strategies are designed to provide:
- Cost-effective, broad equity exposure: This exposure is intended to deliver a low tracking error and provide an overall risk-factor exposure that is similar to that of the benchmark.
- Active tax management: Ongoing management, such as tax-loss harvesting and portfolio overlay, provide the potential for enhanced after-tax returns in a client’s account. When used in conjunction with SEI’s “Estimated Taxes Saved” report, independent advisors can have more timely and relevant conversations with clients about their estimated tax savings.
- Flexible investment implementation: Independent advisors may implement the Strategies as a standalone offering within a client portfolio or in combination with other SEI Managed Account Solutions.
Control and personalization: Clients gain full transparency into the individual companies in which they are invested. Independent advisors can also offer sustainable investment screening (Environmental, Social, and Corporate Governance (ESG), Socially Responsible Investing (SRI), faith-based) to align with a client’s priorities.
