Oaks, Pennsylvania — SEI (NASDAQ: SEIC) announced a series of new investment strategies for its Separately Managed Account (SMA) and Unified Managed Account (UMA) solutions. These additions are in response to feedback from some of SEI’s largest strategic clients.
The new strategies include fixed income direct index investing, which complements SEI’s existing offering of customized bond strategies. In addition, SEI is introducing dividend-oriented equity options through its SMA direct index and factor investing capabilities.
Jim Smigiel, Chief Investment Officer and Head of SEI’s Investment Management Unit, commented: “We remain committed to serving our clients by providing solutions based on advice, customization and stability. Our internal capabilities provide access to the entire capital markets through SEI’s direct indexing solutions, factor strategies and customized bond portfolio management.”
Smigiel emphasized that SMAs and UMAs offer flexibility and tax optimization, which is becoming increasingly important as their adoption increases. He noted that these solutions give advisors the ability to make informed recommendations based on SEI’s expertise.
Over the past five years, UMAs have shown robust growth, with assets increasing 34% annually. 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 high-net-worth, high-net-worth and ultra-high-net-worth investors.
The new strategies include:
- Systematic US Aggregate Bond Core Strategy: This provides exposure to the entire US bond market with the aim of providing exposure to risk factors similar to the benchmark index.
- Systematic municipal bond core strategy: This targets the mid-sized municipal bond market and also attempts to provide risk factor exposure similar to the benchmark index.
- Systematic US Dividend Yield Core Strategy: The goal is to achieve returns comparable to a dividend-oriented index by investing in US stocks known for high, sustainable dividend payments.
- US Dividend Yield Strategy (Multi-Factor SMA): It uses a quantitative, active investment process with an enhanced dividend yield factor. The goal is to generate income while maintaining long-term capital appreciation through high-dividend, large-cap U.S. stocks.
Advisors are increasingly turning to direct indexing and factor investing solutions within tailored SMAs to enable greater personalization and tax control. SMAs offer individual strategies managed by different professional managers, while UMAs combine multiple strategies into a single account structure. UMAs also offer sophisticated tax optimization to improve after-tax returns, which in turn improves client outcomes and strengthens 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 have listened carefully to their feedback and developed these investment strategies to provide greater control, transparency and tax efficiency to all of our clients.”
Holland noted that this launch represents an important milestone in SEI’s mission to innovate and improve its product offering 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 growth opportunities, confidently navigate complexity and better align their strategies with the new wealth portfolio – based on each client’s individual needs and goals.”
With these new strategies, SEI aims to enable advisors to offer tailored, efficient and effective investment solutions.
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