In 2025, SEI celebrates its 30th year offering a multi-manager solution to investors. The benefits of SEI’s global, open architecture investment approach, transcends regions, underlying asset class exposures, and investment cycles, delivering a consistent and distinct set of advantages.

SEI’s edge: Five advantages of our multi-manager portfolios 

1) Open architecture allows for industry leading managers across a complete portfolio 
No single asset manager is a top performer across all of their strategies, and many concede this point. SEI’s open-architecture approach allows our skilled and well-resourced global investment team the ability to handpick the best available strategies, based on our research, for each allocation across an investor’s entire portfolio. Our team is not beholden to a pre-determined set of asset managers. 

Why limit yourself to the good, the bad, and the ugly of one asset manager? 

2) Unearthing unique manager opportunities 
Since 2004 we have seeded more than 20 new strategies, providing our clients with access to unique investment managers, while harnessing the first mover advantage - investment managers who are eager to outperform, with a nimble asset base and attractive fees. 

Exhibit 1 below shows equity, fixed income, and alternatives strategies we have launched with our sub-advisors. Our skill is not limited to just identifying interesting investment ideas, these managers also deliver— demonstrating a 95% hit rate since their inception1.

 

Unlike many other professional investors, SEI does not require an arbitrary three- or five-year track record to select a manager. Instead, we rely on our independent research that combines both qualitative and quantitative analysis to drive our conviction levels. 

Our dedication to applying our disciplined, time-tested approach to building an extensive and dynamic roster of managers means SEI can offer a wide selection from which to find a solution that fits each investor’s specific needs.

3) Flexible but defined investment mandates that align with manager skill 

SEI provides each investment manager that we work with a customized set of investment guidelines that is structured to ensure that the manager retains flexibility to excel in its area of expertise while also establishing guardrails to limit excessive risk and restrict trades outside of the manager’s core competency. 

Whereas investment guidelines that asset managers establish for their own mutual funds are typically broad, SEI’s customized guidelines are constructed in consideration of a manager’s individual strengths and weaknesses. We believe that asset managers that make investment decisions without the guidance of an unbiased third party are more likely to take unfavorable risks outside their areas of expertise. 

As gatekeeper of the portfolios we manage, one of our key responsibilities is to create a more stable experience. To that end, we believe that thoughtfully constructed investment guidelines by an intermediary like SEI can help optimize clients’ investment experiences. 

4) Forward-thinking portfolio construction 

As a multi-manager, SEI is able to objectively assess the portfolio construction process applied by money managers and we can adjust for any limitations in any manager’s portfolio construction capabilities. Taking this vital step aids in optimizing risk-adjusted return. 

Examples of forward-thinking portfolio construction options include: 
• Blend managers with distinct alpha sources to outperform a market capitalization benchmark, 
• Combine managers with low and high risk profiles and complementary drivers of excess returns, 
• Allocate to potentially return-enhancing sub-asset classes; for example, adding a collateralized loan obligation (CLO) allocation to a high-yield portfolio (detailed below).

To illustrate, we recognized an opportunity to potentially amplify returns within our High Yield strategy by adding an allocation to our internally managed CLO sleeve in 2005. The table in Exhibit 2 below shows returns of the two funds within our High Yield Bond strategy going back to 2005. The chart below shows the cumulative returns of both CLO sleeves alone were far greater than the ICE Bank of America High Yield Index as of December 31, 2024. What does this mean? Our decision to add a diversifying allocation to CLOs allowed us to introduce more upside potential in a risk controlled manner.
 

A thoughtful approach to portfolio construction can potentially smooth a portfolio’s return profile, mitigate downside risk, and enhance the level of outperformance. 

5) Harness the power of diversification 

The late Nobel Prize-winning economist Harry Markowitz said, “Diversification is the only free lunch” in investing. We couldn’t agree more. 

Just as diversification across asset classes helps to mitigate risk and volatility across a full market cycle, so, too, does diversification across investment managers. SEI’s multi-manager portfolios serve this type of diversification by blending industry leading managers that offer style differentiation and complimentary investment approaches.

We believe that combining managers with negative or low correlations can reduce total portfolio risk, as illustrated in Exhibit 3. While the diversification benefits eventually start to diminish with the inclusion of additional managers, the risk-reduction benefits can be sizable relative to a single manager allocation.
 

Imagine there is a unique manager with a high-risk profile that would not be appropriate as a solo allocation for certain portfolios. By combining this high-risk manager with additional managers, the portfolio can benefit from capturing the average upside return of the blended managers, but not the average downside as shown in Exhibit 4.
 

SEI positions our multi-managed portfolios with the goal of delivering both competitive excess returns and attractive risk-adjusted returns relative to peers. We seek to create stability with little additional cost. This philosophy results in diversified portfolios—an approach that doesn’t change based on temporary performance or popularity of a given manager or asset class. Our risk management mindset is critical to the long-term stability of our portfolios, performance, and that of each investor. 

Strength in numbers 

Our manager-of-managers solution builds portfolios designed to outperform over the long term. By combining managers with complementary investment styles, we seek to maximize risk-adjusted returns, regardless of what style is in favor at a given moment.






















Important information 

Information provided by SEI Investments Management Corporation (SIMC). 

This information is for educational purposes only and should not be relied upon by the reader as research or investment advice. 

For those SEI products which employ a multi-manager structure, SIMC is responsible for overseeing the subadvisers and recommending their hiring, termination, and replacement. SIMC is the adviser to the SEI Funds, which are distributed by SEI Investments Distribution Co. (SIDCO). SIMC and SIDCO are wholly owned subsidiaries of SEI Investments Company. 

Investing involves risk, including possible loss of principal. There is no assurance that the objectives of any strategy or fund will be achieved or will be successful. Diversification does not protect against market risk.

Bonds and bond funds will decrease in value as interest rates rise. High yield bonds involve greater risks of default or downgrade and are more volatile than investment grade securities, due to the speculative nature of their investments. The Fund may invest in derivatives, which are often more volatile than other investments and may magnify the Fund's gains or losses. 

To determine if the Fund is an appropriate investment for you, carefully consider the investment objectives, risk factors and charges, and expenses before investing. This and other information can be found in the Fund's full or summary prospectus, which can be obtained by calling 1-800-DIAL-SEI. Read the prospectus carefully before investing.