Portfolio management

Once we determine the investment manager lineup for a portfolio, we consider how much to allocate to each one—and then how to adjust the portfolio to keep it in balance or adapt to changing market conditions.

As active portfolio managers, our focus is on ensuring that the portfolio reflects the intended profile, exposures and risks necessary to meet its investment objective.

We take a two-part approach to this.

Portfolio construction

• Determining which components must be included in the total portfolio—such as particular market segments (large and small companies, for example) or individual alpha sources. Alpha Source: an estimated numeric value of a stock's expected excess return that cannot be attributed to the market's volatility, but may be due to some other security.
• Selecting the best possible combination of investment managers to provide exposure to the essential components—and considering what percentage of the portfolio will be allocated to each manager

Investment manager monitoring

• Monitoring our investment managers through ongoing qualitative and quantitative analysis
• Making adjustments to keep the portfolio in balance or adapt to changing market conditions

Ongoing monitoring

1. DAILY
   
   ∙ Access to underlying portfolio holdings
    
2. WEEKLY
   
   ∙ Performance and risk attribution analysis
    
3. MONTHLY
   
    ∙ Buys and sells review
    ∙ Portfolio characteristics and market-trend overview
    ∙ In-depth performance and risk analysis
    ∙ Evaluation of manager decisions and outlook
    
4. QUARTERLY
   
   ∙ Conference call to assess manager and dedicated 
   investment team
    
5. ANNUALLY
   
   ∙ On-site visit to evaluate manager and dedicated 
   investment team

¹ Available to SEI funded managers in mutual funds or separate accounts.

Important Information

This information should not be relied upon by the reader as research or investment advice, nor should it be construed as a recommendation to purchase or sell a security. The reader should consult with their financial professional for more information.

Statements that are not factual in nature, including opinions, projections and estimates, assume certain economic conditions and industry developments and constitute only current opinions that are subject to change without notice.  Nothing herein is intended to be a forecast of future events, or a guarantee of future results. 

There are risks involved with investing, including loss of principal. There is no assurance the goals of the strategies discussed will be met. Diversification may not protect against market risk. The value of an investment and any income from it can go down as well as up. Investors may get back less than the original amount invested. Returns may increase or decrease as a result of currency fluctuations. Past performance is not a reliable indicator of future results. Investment may not be suitable for everyone.

This material is not directed to any persons where (by reason of that person's nationality, residence or otherwise) the publication or availability of this material is prohibited. Persons in respect of whom such prohibitions apply must not rely on this information in any respect whatsoever.

Information provided in Canada by SEI Investments Canada Company, the Manager of the SEI Funds in Canada.