SEI Unveils New Direct Index and Factor Investment Strategies

Core Insights - SEI has expanded its Separately Managed Account (SMA) and Unified Managed Account (UMA) solutions by introducing new investment strategies, including fixed income-based direct indexing and dividend-focused equity options, in response to client feedback [1][2] - The UMA segment has shown significant growth, with assets increasing at an annual rate of 34% over the past five years, and continued strong growth is anticipated in the next four years [2][5] - The new strategies aim to enhance control, transparency, and tax efficiency for clients, aligning with SEI's commitment to innovation based on client needs [4][5] Investment Strategies - The new investment strategies include: - Systematic U.S. Aggregate Bond Core strategy, targeting exposure to the U.S. aggregate fixed-income market [2] - Systematic Municipal Bond Core strategy, focusing on the intermediate municipal bond market [2] - Systematic U.S. Dividend Yield Core strategy, aiming for returns similar to a dividend yield-focused index [2] - U.S. Dividend Yield (Multi-Factor SMA) strategy, utilizing a quantitative approach to deliver income while maintaining long-term capital appreciation [2] Client-Centric Approach - SEI emphasizes a client-centric approach, stating that the development of new strategies is based on careful listening to client feedback [4] - The company aims to provide advisors with greater choice and flexibility in client recommendations, enhancing the overall value proposition for clients [2][3] Market Position - As of June 30, 2024, SEI manages, advises, or administers approximately $1.5 trillion in assets, showcasing its significant presence in the financial services industry [6]