OAKS, PA — SEI® (NASDAQ: SEIC) has unveiled SEI Strategies with Capital Group®, a new lineup of model portfolios designed to enhance investor portfolio construction. These strategies, which consist entirely of exchange-traded funds (ETFs), bring together SEI’s methodical asset allocation and portfolio construction expertise with Capital Group’s broad ETF offerings.
The new model portfolios, available within a unified managed account (UMA) structure, aim to provide flexibility for financial advisors to address varying client needs. This includes managing geographic exposures and enhancing tax efficiency across a total of 24 model portfolios. Key offerings include six SEI Strategies with Capital Group, six SEI U.S. Focused Strategies with Capital Group, six SEI Tax-Managed Strategies with Capital Group, and six additional U.S.-Focused Tax-Managed Strategies.
Recognizing the growing demand for model portfolios, which saw a 21.4% asset growth rate in 2023, SEI’s latest lineup emphasizes strategic tax optimization. Features of the 12 tax-managed models include the inherent tax efficiency of ETFs, exposure to municipal bond ETFs for generating tax-free income, systematic and opportunistic tax-loss harvesting, and detailed “Estimated Taxes Saved” reporting. These features align with SEI’s enduring focus on delivering value through advanced tax-managed investment strategies.
“The SEI Strategies with Capital Group combine the synergy of SEI’s rigorous and disciplined investment approach with the Capital System™, Capital Group’s multi-manager approach to investing, to provide a diverse range of portfolio building blocks,” said Erich Holland, Head of Client Experience for SEI’s Advisor business. “Together, we leverage our shared tenured investment experience, market leadership, and innovative spirit to help investors reach their goals.”
Holland further emphasized the importance of tax management for affluent households. “Personal taxes are the highest single expense for households with income greater than $200,000. Investors want the benefits of tax optimization, and advisors want to expand on—and further demonstrate—the value they can deliver to their clients, while maximizing time and cost efficiency,” he stated.
Capital Group, renowned for its active management expertise, views the partnership as a strategic alignment with evolving client demands. “The partnership with SEI Strategies will help to meet the needs of financial professionals who are increasingly focusing on the broader wealth needs of their clients and using these types of efficient asset allocation tools in the active ETF form,” said Peter Thatch, Head of the Strategic Relationship Group for Capital Group.
With a shared commitment to innovation and client-focused solutions, SEI and Capital Group aim to empower advisors with the tools needed to maximize client outcomes, leveraging the tax-efficient and strategically allocated model portfolios to address today’s complex investment landscape.
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