SEI’s flagship UK goals-based Strategic Portfolios have hit GBP1bn in assets under management.
Launched in February 2010, the SEI Strategic Portfolios are a suite of seven risk-rated, multi-asset funds underpinned by a manager-of-manager investment structure that offers retail investors access to some of the best active institutional fund managers around the world.
SEI measures the success of the portfolios against a wide range of financial goals, taking into account different time horizons and risk profiles, rather than measuring performance against traditional benchmarks.
SEI’s goals-based approach also continues to gain popularity in the US and Canada with over USD15bn in assets under management worldwide.
The Strategic Portfolios range from defensive to aggressive and are split into two categories: stability-focused and growth-focused. The stability-focused portfolios aim to preserve wealth and minimise loss in line with explicit drawdown parameters; an approach SEI believes encourages investors to adhere to their investment strategies instead of making investment decisions in reaction to volatile markets, which can hinder long-term performance. The growth-focused portfolios are designed for investors seeking to steadily accumulate assets at a rate consistent with their risk tolerance and relative to their goals.
The portfolios, which are available through most of the industry’s leading fund platforms, are highly diversified across a range of asset classes, managers, and holdings. For instance, as of 31 March 2013, the SEI Core Fund invests in up to five asset classes and 18 sub-asset classes. The assets in this fund are managed by 67 managers via segregated mandates, which ultimately results in investors having exposure to over 7,400 holdings. SEI actively manages the asset allocation, manager selection, monitoring, and rebalancing of the portfolios, allowing advisers to concentrate on providing advice and financial planning.
"The Strategic Portfolios are designed to enable advisers to achieve their clients’ specific investment goals, while freeing them up to concentrate on financial planning and growing their businesses," says Kevin Addison, head of asset management distribution, UK and Europe at SEI. "It is an approach we have found deepens relationships between advisers and clients. The fact that the portfolios have hit GBP1bn in assets under management in just three years clearly shows there is strong demand for a compelling and differentiated outsourcing solution in the post-RDR world. Indeed, we are confident that assets will continue to grow as advisers increasingly recognise that goals-based investing can deliver both in terms of performance and risk management."