OAKS, PA — SEI (NASDAQ: SEIC) has announced a series of new investment strategies for its Separately Managed Account (SMA) and Unified Managed Account (UMA) solutions. These additions come in response to feedback from some of SEI’s largest strategic clients.
The new strategies include fixed income-based direct indexing investments that enhance SEI’s existing lineup of individual bond strategies. Additionally, SEI is introducing dividend-focused equity options through its SMA capabilities in direct indexing and factor investing.
Jim Smigiel, Chief Investment Officer and Head of SEI’s Investment Management Unit, commented, “We remain steadfast in delivering solutions rooted in advice, customization, and stability for our clients. Our internal capabilities provide access to the entirety of the capital markets through SEI’s direct indexing solutions, factor strategies, and individual bond portfolio management.”
Smigiel highlighted that SMAs and UMAs offer flexibility and tax optimization, which are increasingly important as their adoption grows. He noted that these solutions give advisors the ability to make well-informed recommendations based on SEI’s expertise.
Over the past five years, UMAs have shown robust growth, with assets climbing at an annual rate of 34%. This trend is expected to continue over the next four years. SEI’s SMAs, combined with a unique UMA structure, offer greater control and personalization. These strategies are designed to help advisors better serve mass-affluent, high-net-worth, and ultra-high-net-worth investors.
The new strategies include:
- Systematic U.S. Aggregate Bond Core strategy: This provides exposure to the U.S. aggregate fixed-income market, aiming to offer a risk-factor exposure similar to the benchmark index.
- Systematic Municipal Bond Core strategy: This targets the intermediate municipal bond market, also seeking to provide a risk-factor exposure akin to the benchmark index.
- Systematic U.S. Dividend Yield Core strategy: This aims to deliver returns similar to a dividend yield-focused index by investing in U.S. stocks known for high, sustainable dividend payments.
- U.S. Dividend Yield (Multi-Factor SMA) strategy: This employs a quantitative, active investment process using an enhanced dividend yield factor. The goal is to generate income while maintaining long-term capital appreciation through high dividend-paying U.S. large-cap stocks.
Advisors are increasingly adopting direct indexing and factor investing solutions within custom SMAs to offer greater personalization and tax control. SMAs provide individualized strategies managed by distinct professional managers, while UMAs combine multiple strategies within a single account structure. UMAs also offer sophisticated tax optimization to enhance after-tax returns, thus improving client outcomes and reinforcing an advisor’s value proposition.
Erich Holland, Executive Managing Director of Client Experience for SEI’s Advisor business, added, “Our clients are at the heart of everything we do. We’ve listened carefully to their feedback and developed these investment strategies to provide all of our clients with greater control, transparency, and tax-efficiency.”
Holland noted that this launch marks a significant milestone in SEI’s mission to innovate and enhance its product offerings based on client needs. “Our goal is to continue to offer better tax-efficient and cost-effective personalization at scale, so advisors can unlock new opportunities for growth, navigate complexity with confidence, and better align their strategies with the new wealth portfolio—driven by each client’s individual needs and objectives.”
With these new strategies, SEI aims to empower advisors to deliver customized, efficient, and effective investment solutions.
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