SEI Enhances SMA and UMA Solutions Offered Through Managed Accounts Program

OAKS, Pa., April 2, 2024 – SEI^® (NASDAQ:SEIC) today announced a range of enhancements to its Separately Managed Account (SMA) and Unified Managed Account (UMA) solutions offered through the Managed Account Solutions program¹, including the launch of additional internally-managed and third-party investment options, reduced costs, and technology updates that bolster tax optimization. These enhancements are designed to help advisors better serve mass-affluent, high-net-worth, and ultra-high-net-worth investors.

UMAs have exhibited strong growth rates over the last half-decade, with assets climbing at an annual rate of 34%, and strong growth for UMA programs is expected over the next four years.² SEI’s SMAs, complemented with a differentiated UMA structure, puts the investor in control. Benefits include:

• Diversified investment expertise from SEI and third-party managers with more than 70 specialist managers and 120 unique mandates, including SEI’s SMA capabilities in direct indexing, factor investing, and individual bond strategies
• Overlay portfolio management and integration coordination across multiple SMA managers, designed to optimize risk and return, as well as tax-aware trading to improve tax efficiency 
• Tax-loss harvesting that aims to strategically sell securities at a loss, offset capital gains, and reduce taxable income, while maintaining exposure to the market and preserving long-term investment objectives

Jim Smigiel, SEI’s Chief Investment Officer, said:

“Portfolio customization is key to meeting investors’ needs in today’s economic environment. We access the entirety of the capital markets through SEI’s direct indexing solutions, factor strategies, and individual bond portfolio management, as well as third-party managers we believe have a sustainable competitive advantage. Our solutions give advisors choice in their client recommendations, empowered by SEI’s conviction.”

SMAs and UMAs are gaining traction for their ability to offer customized investment solutions while optimizing tax efficiency. SMAs offer individualized strategies run by distinct professional managers, while UMAs provide a comprehensive investment solution that combines multiple strategies or investment vehicles within a single account structure. UMAs also offer sophisticated tax optimization that seeks to significantly enhance after-tax returns, not only boosting client outcomes, but also reinforcing an advisor’s value proposition.

SEI’s technology enhancements enable on-demand access to comprehensive reports and analytics that help foster transparency and facilitate improved decision-making, including SEI's Estimated Taxes Saved Report that shows advisors and investors the amount of taxes saved or deferred through active tax management.

Erich Holland, Head of Client Experience for SEI’s Advisor business, said:

“Financial advisors are constantly seeking forward-thinking ways to enhance their clients’ portfolios, while simultaneously optimizing tax efficiency. We believe that SMAs and UMAs represent a paradigm shift in how financial advisors can deliver value to their clients.

“SEI has been at the forefront of this trend, offering UMAs for nearly 20 years. Our goal is to offer even better, cost-effective personalization at scale, so advisors can unlock new opportunities for growth, navigate complex environments with confidence, and better align their strategies with the new wealth portfolio—driven by each client’s individual needs and objectives.” 

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 help drive growth, make confident decisions, and protect futures. As of Dec. 31, 2023, SEI manages, advises, or administers approximately $1.4 trillion in assets. For more information, visit seic.com. 

¹SEI’s implementation vehicles include mutual funds, ETFs, and SMAs offered through SEI Mutual Fund Strategies and Managed Account Solutions.

²Source: Cerulli U.S. Managed Account Report, 2023.

SEI Investments Management Corporation (SIMC) does not represent in any manner that the tax consequences described as part of its tax-management techniques and strategies will be achieved or that any of SIMC's tax-management techniques, or any of its products and/or services, will result in any particular tax consequence. The tax consequences of the tax-management techniques, including those intended to harvest tax losses, and other strategies that SIMC may pursue are complex and uncertain and may be challenged by the IRS. Neither SIMC nor its affiliates provide tax advice. SIMC is a wholly owned subsidiary of SEI Investments Company (SEI).

Please note that (i) any discussion of U.S. tax matters contained in this communication cannot be used by you for the purpose of avoiding tax, penalties and/or interest which may be imposed by the IRS or any other taxing authority; (ii) this communication was written to support the promotion or marketing of the matters addressed herein; and (iii) you should seek advice based on your particular circumstances from an independent tax advisor. Accordingly, Clients should confer with their personal tax advisors regarding the tax consequences of investing with SIMC and engaging in the tax-management techniques described herein (including the described tax loss harvesting strategies) based on their particular circumstances. Clients and their personal tax advisors are responsible for how the transactions conducted in an account are reported to the IRS or any other taxing authority on the Client’s personal tax returns. SIMC assumes no responsibility for the tax consequences to any Client of any transaction.