SEI Canada Makes Changes in Risk Ratings and to Select Funds, Lowers Class F and F(H) Management Fees

TORONTO, July 6, 2022 – SEI Investments Canada Company (SEI Canada), a wholly-owned subsidiary of SEI Investments Company (NASDAQ: SEIC), today announced changes to the risk ratings of certain SEI Canada funds, management fee reductions for Class F and F(H) units of all of its funds effective July 1, 2022, and other changes to select funds as detailed below.

Changes in risk ratings

After conducting its regular annual review, SEI Canada has changed the risk ratings for specific classes of the funds listed below, which are disclosed in the Fund Facts and the Funds’ Simplified Prospectus dated June 29, 2022.

No changes were made to the investment objectives or strategies of these funds. Additional information regarding the risk rating methodology, as well as the investment objectives and strategies of each fund, can be found in the prospectus referenced above.

Management fee reductions for Class F and F(H) units and unbundling of fees

SEI Canada’s Class F and F(H) units currently make use of a target management expense ratio (“MER”) that includes fund operating expenses (including applicable taxes (i.e. HST/GST)) attributable to such classes. Effective July 1, 2022, SEI Canada lowered the management fee for Class F and F(H) units, while also changing how operating expenses are charged for such classes, to provide greater cost transparency. In connection with the management fee reduction, SEI Canada intends to absorb any operating expenses to maintain the current maximum target MER. No action is required by Class F or F(H) unitholders to benefit from the reduced management fees. The particulars of the management fee reductions are detailed in the table below. 

The management fee changes are effective July 1, 2022. No changes were made to the investment objectives and/or strategies of the above listed funds. 

Class F and F(H) units are currently available to investors who have fee-based accounts with qualified dealers that have entered into a distribution arrangement with SEI Canada. More information on each fund and the Class F and F(H) units can be found in the SEI Canada Funds’ Simplified Prospectus.

Class FC and FC(H) units to be phased out

As part of SEI’s ongoing efforts to simplify its product offering and to build administrative efficiencies, Class FC and FC(H) units of all SEI funds will be phased out over the course of the next year. 

Phase one: On or about Sept. 30, 2022, SEI Canada will “soft cap” Class FC and Class FC(H) units of all SEI Canada funds. The soft cap means that these classes of units will not be available for purchase by new investors, while existing unitholders of Class FC and FC(H) units will be able to purchase additional units of the same classes they hold until on or about May 1, 2023. 

Phase two: On or about May 1, 2023, SEI Canada will “hard cap” Class FC and Class FC(H) units of all SEI Canada funds. The hard cap means that these classes of units will no longer be available for purchase by any investors. On or about May 5, 2023, all issued and outstanding Class FC units of each SEI Canada Fund will be automatically reclassified as Class F units and all issued and outstanding Class FC(H) units of each Fund will be automatically reclassified as Class F(H) units.
 
At any time prior to reclassification date on or about May 5, 2023, unitholders will be able to (i) redeem such units in the ordinary course; or (ii) switch such units for units of a different class, as further described in “Purchases, Switches, and Redemptions” in the SEI Canada Funds’ Simplified Prospectus.

Select asset allocation funds renamed

The following funds changed their names effective June 29, 2022:

• All Equity Fund renamed Global Equity Pool
• Balanced Growth Fund renamed Global Balanced Growth Pool
• Income Balanced Fund renamed Income Balanced Pool
• Neutral Balanced Fund renamed Global Neutral Balanced Pool

No changes were made to any of these funds’ investment objectives and/or strategies.

About SEI Canada

SEI founded its Canadian business in 1983, pioneering innovative asset management techniques for institutional investors. Today, SEI offers integrated investment management and strategic advice solutions to help institutional investors achieve their organizational goals and fulfill fiduciary responsibilities. Capitalizing on its investment expertise, SEI began offering investment solutions to retail investors through investment advisors in 1994. The investment approach provides multi-manager, globally diversified strategies with an appropriate home-country bias for Canadian retail investors. SEI’s goals-based strategies, strategic asset allocation strategies and asset class funds are available through select dealer relationships. 

About SEI®

SEI (NASDAQ:SEIC) delivers technology and investment solutions that connect the financial services industry. With capabilities across investment processing, operations, and asset management, SEI works with corporations, financial institutions and professionals, and ultra-high-net-worth families to solve problems, manage change and help protect assets—for growth today and in the future. As of March 31, 2022, SEI manages, advises, or administers approximately $1.3 USD trillion in assets.