- Environmental, social and governance (ESG) investing has grown in popularity and shows no signs of slowing.
- At SEI, we not only recognize the importance of investment returns, but we also believe that financial goals don’t require compromise to align an investment strategy with purpose.
- Our Manager Research Team uses a proprietary ESG ranking system to rate the managers we hire for our investment offerings.
The concept of responsible investing has many names, including impact investing, sustainable investing, and environmental, social and governance (ESG) investing. But at its core, responsible investing refers to the alignment of investment strategies with personal or organizational values.
At SEI, even if our clients are not invested in a strategy type with a name that commonly falls under the umbrella of responsible investing, we are committed to helping them meet their responsible-investing goals. Our Manager Research Team has the resources to help build portfolios that align with these goals.
Of course, there is nothing simple about building a one-size-fits-all ESG investment offering. Investors’ ethics and desires are not only varied, but often in opposition: For example, while one investor may want to avoid a particular pharmaceutical company that produces opioids, another investor may be eager to invest in that very company because it adheres to strict “green” business practices. We think this demonstrates the need for flexibility and customization when it comes to ESG investing.
What is the UN PRI?
The United Nations-supported Principles for Responsible Investment (PRI) is a growing initiative consisting of international investors that work together on ESG issues, such as human-rights campaigns, environmental concerns, employee diversity and anti-corruption efforts.
As a signatory of the PRI, SEI has publicly committed to follow the six voluntary guiding principles meant to help incorporate ESG risks into portfolio management and corporate practice. These Principles include:
- Incorporating ESG issues into investment analysis and decision-making processes
- Integrating ESG issues into ownership policies and practices
- Seeking appropriate disclosure on ESG issues from the entities in which we invest
- Promoting acceptance and implementation of the principles across the investment industry
- Working to enhance effectiveness in applying the principles
- Reporting to investors on activities and progress towards implementing the principles
SEI is a manager of managers. We build investment strategies by hiring and monitoring specialist investment managers known for their expertise in specific markets or with specific investment styles.
Recognizing the growing popularity of ESG investing, our Manager Research Team created a proprietary ESG ranking system to rate the managers we hire for our investment offerings.
Our approach to evaluating managers focuses on more than just their performance—it considers the underlying investment decisions they make and how those decisions tie into the overall mission of the organization. Our ESG ranking system examines three broad sets of factors:
- Profile: The extent of the manager's sustainability practices and its demonstrated commitment to responsible investing
- Resources: Whether the manager is adequately resourced to achieve its responsible investing goals
- Practices: How the manager implements responsible investing in a practical sense, or if it otherwise presents a false integration of responsible investing practices in an effort to attract clients
We evaluate and score each manager based on its ESG philosophy and process. Examples of manager traits and conduct that we consider in our analysis include, but are not limited to, its:
- Handling of ESG-related risk and ability to ensure compliance with its own ESG policies
- Overall experience in managing ESG-integrated portfolios
- Number of dedicated ESG personnel
- Ability to internally generate ESG-related research versus reliance on third-party data
- Incorporation of ESG at the fundamental analysis level
- Degree of engagement with companies and their leadership about sustainability
- Transparency with clients about ESG-related reporting
- Amount of ESG factors permitted to influence investment decisions
- Plans to enhance its ESG efforts over the next three to five years
Based on the results of our ESG evaluation, we assign each manager an ESG rating of Strong, Moderate or Weak. These ratings help us build portfolios for our clients that best align with their values.
ESG and Quantitative Versus Qualitative Investment Analysis
ESG integration has historically been the territory of qualitative (or judgment-based) managers. Here’s why:
From a qualitative perspective, ESG can make-or-break an investment decision between stocks that are otherwise equal.
Qualitative managers may be comfortable engaging with companies that have a poor ESG profile (an approach that may improve the company’s ESG score).
Qualitative managers may analyze companies on both a fundamental level and by their ESG profiles. If a company has a low ESG score but a high rating based on valuation, for example, a qualitative manager generally investigates more thoroughly before making an investment decision.
In recent years, however, an increased number of quantitative investment managers (quants)—those that base their investment decisions on a company’s numerical data—have been incorporating ESG factors into their investment analyses.
As the availability of data on companies’ ESG practices continues to grow, we expect to see even wider adoption of ESG investing among quants.
SIIT Investment Manager Profiles
Looking at managers that we work with across asset classes and styles, which we vetted using our proprietary ESG scoring, the following are those we ranked as strong*. We found that all of the below managers incorporate ESG factors into their investment philosophies and processes on a firm-wide basis.
Total AUM: $587.3 billion as of September 30, 2019
Strategy: Frontier Emerging Markets; International Strategic Value – All Country
SEI Fund: Emerging Markets Equity Fund; World Equity ex-U.S. Fund
UN-PRI Signatory Status: November 2011
Before choosing a responsible investing approach, investors often consider whether an ESG focus will undermine returns. AllianceBernstein (AB) prefers to focus on determining whether there is a high-return investing approach that may help foster a portfolio with strong ESG characteristics.
AB’s emerging-markets equity team fully integrates ESG factors in the overall risk/return assessment of every security that it analyzes. The team believes that such rigor drives better research and leads to better outcomes for investors. It sees active ownership as a key element of ESG integration. AB’s research analysts work with a third-party vendor that is tasked with scouring company filings and rating its findings. The analysts at AB use these ratings to supplement their evaluations.
AB also works directly with issuers as part of its research/investment process. Engagements are often a joint effort at AB between its investment professionals—who are best positioned to comment on issuer-specific management, strategic, operational and governance topics—and its 17-person Responsible Investment Committee, which offers a more holistic view of governance practices and relevant ESG issues. The firm also maintains a database of material engagements for follow-up and reporting purposes.
In addition to AB’s Responsible Investment Committee, its ESG team includes a Head of Responsible Investment, a full-time ESG analyst and a governance staff. AB’s global staff receives ESG training regularly, and the firm sponsors industry-specific ESG training sessions and events.
Acadian Asset Management
Total AUM: $95.7 billion as of September 30, 2019
Strategy: ACWI ex-U.S.
SEI Fund: World Equity ex-U.S. Fund
UN-PRI Signatory Status: October 2009
Acadian Asset Management (Acadian) believes that ESG issues go hand-in-hand with traditional investment issues. The firm was an early adopter, incorporating ESG factors into its investment analysis since the 1990s. It was the first quantitative investment manager to sign the UN-PRI.
The investment team sees responsible investing considerations as integral to its research agenda, which may help to identify new sources of outperformance or better assess portfolio risk. Rather than maintaining dedicated ESG offerings, Acadian incorporates ESG-based factors into its core investment process and expresses them broadly across all of its strategies. The portfolio management team has extensive knowledge on each of these factors. The team also maintains an active research agenda to potentially integrate other ESG factors into the investment process, as long as it still meets its fiduciary duty in aiming to maximize risk-adjusted returns.
Acadian sources ESG-related data directly from financial statements or acquires them from third-party vendors, and estimates where information is missing. The firm has also been investigating artificial intelligence (AI) as another tool to help select ESG stocks, which it believes may potentially help in making non-linear predictions about companies’ performance.
The firm’s ESG approach is governed by its Responsible Investing Committee, which comprises senior executives and is chaired by the Director of Responsible Investing. The Committee regularly issues extensive ESG reporting, including updates on portfolio characteristics, proxy voting and engagement practices.
As a result of increasing interest in sustainable investing, the number of existing ESG data vendors has grown over the past decade. Acadian seeks to exploit the expanding data, as well as leverage its own experience in deriving signals from that data, to remain at the forefront of the evolving ESG investing landscape.
Baillie Gifford Overseas
Total AUM: $266 billion as of September 30, 2019
Strategy: ACWI ex-U.S. Alpha
SEI Fund: World Equity ex-U.S. Fund
UN-PRI Signatory Status: June 2007
Baillie Gifford Overseas (Ballie Gifford) does not promote its strategy as an ESG offering, or even one that is rooted in specific green or responsible principles. Yet the firm considers these factors to be an integral part of any long-term investing process. Further, it maintains that the common practice of applying a screen is not enough to filter out undesirable companies.
The firm considers itself a steward—a role, it believes, goes beyond basic box-ticking on ESG issues. As such, when considering a company's long-term sustainability prospects, the investment team reviews ESG factors. These include:
- Climate change
- Population trends
- Country-specific policy developments (regulations, labor and tax rules)
- Attitudes toward internal and external stakeholders (suppliers, customers, employees and regulators)
Baillie Gifford’s research analysts take a bottom-up approach in order to bypass superficial ESG performance indicators. The investment team does not rank sustainability over performance. Yet the long-term competitive advantages of many companies in the strategy relate to the environment or energy.
In 2015, the firm created the Governance and Sustainability team, which consists of 13 experts. Their responsibilities include:
- ESG research and engagement
- Coordinating and processing proxy voting
- Highlighting ESG risks and opportunities to the different investment strategies
- Monitoring and engaging with companies on ESG criteria, challenging them when appropriate
Neuberger Berman Investment Advisers
Total AUM: $338.9 billion as of September 30, 2019
Strategy: Emerging Markets Debt (Blend)
SEI Fund: Emerging Markets Debt Fund
UN-PRI Signatory Status: June 2012
Neuberger Berman Investment Advisers (Neuberger Berman) views ESG factors as important drivers of long-term investment returns, from both an opportunity and a risk-mitigation perspective. The firm began applying avoidance screens to equities in the early 1940s. Investment-grade fixed-income accounts with ESG exclusions began in 1984. Today, 100% of the firm's assets are ESG-aware.
Both research analysts and portfolio managers integrate ESG in their portfolios and research. The firm empowers its analysts to include ESG factors in their work along with other inputs, rather than relying on a separate ESG research team. Neuberger Berman views this as the most effective way to integrate ESG factors into its long-term investment process. The investment teams may then choose how best to apply all the tools of active management.
In 2017, the firm created a four-person ESG Investing team, whose responsibilities include:
- Implementing the global ESG strategy by integrating ESG themes into new and existing mandates
- Coordinating proxy voting and engagement
- Working with research teams to improve proprietary ESG assessment of companies and issuers
- Creating content that highlights ESG research to encourage dialogue and share best practices
The ESG Investing Team receives support at the asset-class level from an ESG Committee and associated working groups who provide expertise and assist in educating Neuberger Berman’s investment personnel. The Head of ESG Investing chairs the ESG Committee, which consists of senior professionals across all asset classes. The ESG Committee reviews the firm's ESG Policy at least once a year, amending it as needed.
Western Asset Management
Total AUM: $452.9 billion as of September 30, 2019
SEI Fund: Core Fixed Income Fund
UN-PRI Signatory Status: February 2016
Western Asset Management (Western Asset) views ESG as an essential component of its investment process. The firm believes that ESG factors can affect the risk and return profile of its investments.
The firm has decentralized its ESG organizational structure. Its investment professionals conduct ESG analysis as part of a comprehensive research process. Research analysts assess ESG factors together with traditional metrics and from top-down and bottom-up perspectives, considering issues such as consumption of natural resources, climate change, demographics and socioeconomic development. Such factors help to inform the team’s macroeconomic and sector outlook. Analysts also examine ESG factors that may affect an issuer’s creditworthiness. The types and importance of these elements vary by country, subsector and issuer.
Key oversight functions have been centralized to grow the firm’s knowledge of ESG. Western Asset’s Global ESG Advisory Committee includes research analysts and portfolio managers from the investment-grade, high-yield and emerging-markets sectors. Members work with the Global Head of ESG Investments to develop best practices. The ESG Advisory Committee also ensures a consistent application of ESG analysis across the firm.
Western Asset additionally uses third-party ESG research models. Among them are MSCI ESG Ratings, CDP (formerly the Carbon Disclosure Project) Climate Score, ISS (Institutional Shareholder Services) Governance Quick Score and Bloomberg ESG data. But the investment team has the ultimate say in ESG assessment. It uses both quantitative and qualitative approaches to come to decisions. The team weighs the extent to which each issuer tries to manage challenges related to ESG factors, engaging with issuers to determine the outlook for each issuer's ESG performance. The team then assesses the market's pricing of the issuer’s ESG profile.
Similar to other investment managers, Western Asset acknowledges the lack of universal standards for ESG investment evaluation. Asset owners can vary on the specific values and themes they seek to express in their portfolios. The firm has historically integrated ESG analysis into all its portfolios. It also partners with clients who wish to overlay views of a more specific nature.
Western Asset recognizes that the application of ESG within fixed-income sectors is evolving. It seeks to shape its progress through collaboration with other investors.
Total AUM: $7.4 billion as of September 30, 2019
Strategy: Relative Value Equity
SEI Funds: Large Cap Fund; Large Cap Disciplined Equity Fund
UN-PRI Signatory Status: June 2017
Coho Partners (Coho) views ESG integration as a natural extension of its investment approach. The firm invests in companies with long histories of stable business models, solid growth and shareholder-friendly practices. Coho believes that such companies tend to have high levels of awareness in sustainable practices and good governance.
ESG criteria are included in Coho’s investment process for two reasons: The first is to mitigate risk; in Coho’s view, responsible companies tend to have sustainable business models and are less prone to business and reputational risk. The second is to pursue returns that exceed those of the benchmark; the firm believes that integrating ESG factors drives a deeper understanding of a company's culture and business model. This allows Coho's research analysts to better assess a company's competitive advantage.
Analysts complete an internal report card for each company, which identify and track key long-term ESG, operating and financial metrics. The report cards serve a dual purpose: First, they measure the metrics of each company. Second, they provide evidence of Coho’s commitment to ESG integration.
The investment team conducts meetings with each company’s management team. It identifies industry-specific, material ESG drivers for each company, based on internal criteria and the Sustainability Accounting Standards Board (SASB) framework. These drivers serve as a tool to quantify a company’s ESG performance. The investment team also reviews corporate sustainability reports, CDP scores, government databases and Bloomberg ESG analytics. Coho also works with third-party vendors to provide ESG proxy voting recommendations.
J.P. Morgan Asset Management (J.P. Morgan)
Total AUM: $1.9 trillion as of September 30, 2019
Strategy Name: High Yield
SEI Fund: High Yield Bond Fund
UN-PRI Signatory Status: February 2007
J.P. Morgan considers material ESG factors in portfolio decision making through a proprietary forward-looking framework. In the past few years, the firm has formalized these considerations into a rigorous and systematic approach to ESG integration. Given the scale and variety of the global fixed-income market, ESG factors in each sector and market are assessed slightly differently. However, the firm’s approaches share three common pillars: proprietary research, engagement and portfolio construction.
As a bond investor, J.P. Morgan views itself as a lender of its clients’ money. The firm expects the issuers in which they invest to conduct business in a sustainable manner and to demonstrate high standards. The firm believes that assessing the ESG practices of the issuers in which it invests is an important component of strong risk-adjusted performance over the long term. As such, J.P. Morgan considers ESG issues alongside other market risk factors as a core part of its fiduciary responsibility.
The Sustainable Investing team drives the firm’s coordinated strategy for ESG investing globally, providing centralized sustainability-focused research and solutions development. It seeks to develop and publish sustainable-investment thought leadership, and works with clients to build and implement sustainable investment solutions. In addition, it steers the firm’s corporate governance and investment stewardship efforts.
The Sustainable Investment Leadership Team (SILT) is a cross-regional, cross-functional group of senior leaders across the firm. It comprises two distinct 16-member working groups tasked with building the firm’s sustainable investing platform globally:
- ESG Data & Research Group: Comprises portfolio managers and analysts who seek to continuously enhance the firm’s ESG integration framework
- Sustainable Investing Client Strategy Group: Comprises investment specialists, distribution, and other business professionals who seek to build innovative capabilities to meet client needs
Another main function of SILT is to share best practices across the firm—via mandatory ESG training for all employees. It also continuously embeds training in large forums held across the firm on its ESG integration philosophy, capabilities, and ongoing research.
J.P. Morgan’s Corporate Governance specialists, consisting of employees across the firm’s investment hubs in London, New York, Hong Kong and Tokyo, are responsible for undertaking research on ESG issues and carrying out voting proxies. The Corporate Governance team also conducts nearly 700 dedicated ESG engagements with investee companies each year. It continuously examines the ESG profiles of these companies—analyzing how they deal with and report on social and environmental risks and issues specific to their sectors and/or industries—to identify outliers that may require further engagement.
The Corporate Governance team sits on the investment floor and its research is a direct feed into the underlying processes of the firm’s investment strategies. Investment managers in all locations have regular contact with senior managers of investee companies to discuss issues and promote the interests of clients. All investment professionals have access to specialist ESG data and resources to assist them in their investment decisions.
The Sustainable Finance team works across lines of business and corporate functions to advise on the firm’s environmental and social risk-management efforts, support the development of sustainability-focused business strategies and financing opportunities, and coordinate stakeholder engagement and reporting efforts on environmental and social matters.
Schroder Investment Management North America (Schroders)
Total AUM: $565.5 billion as of June 30, 2019
Strategy Name: Enhanced Cash
SEI Fund: Opportunistic Income Fund
UN-PRI Signatory Status: October 2007
Schroders considers itself a long-term steward of its clients’ capital. This philosophy leads the firm to focus on the long-term prospects for the assets in which it invests.
The firm seeks to integrate ESG considerations into its research and overall investment decisions across investment desks and asset classes. Schroders recognizes that different asset classes, portfolio strategies and investment universes require distinct lenses to most effectively strengthen decision-making. Its approach spans the breadth of the investment process, from identifying trends, analyzing securities, constructing portfolios to engagement, voting and reporting.
Analysts on Schroders’ ESG team work with investment teams to provide ongoing advisory services to its investment desks. The ESG team aims to ensure ESG integration in a relevant way for geographies and asset classes and to reflect best practices in this area. Still, each investment team is responsible for making sure ESG research analysis and decision making are relevant to its own process.
The firm’s ESG analysts each have a sector focus. This enables them to gain a deep understanding of sector-specific ESG issues and work in tandem with investment analysts and portfolio managers to identify and assess ESG risks and opportunities.
The ESG analysts produce regular multi-sector and multi-region thematic research to keep investors abreast of the latest ESG trends, and how these trends can impact valuation and risk. The firm’s equity and fixed-income analysts review relevant ESG risks and opportunities for securities under their coverage within the investment analysts’ research notes. The ESG specialists periodically review research notes to highlight where ESG analysis can be enhanced and to promote best practices.
Each quarter, the ESG team screens the firm’s portfolios against third-party ESG ratings from specialist ESG research providers and distributes these ratings to Schroders’ investment desks. The firm does not believe that third-party ESG research views are the definitive view of a company’s ESG performance; rather, it sees it as a catalyst for further research and discussions with the ESG team.
Wellington Management Company (Wellington)
Total AUM: $1.1 trillion as of September 30, 2019
Strategy Name: Enhanced Cash
SEI Fund: Opportunistic Income Fund
UN-PRI Signatory Status: April 2012
Wellington approaches ESG integration as a tailored process that can be universally applied. The firm’s culture supports collaboration. Its open-architecture “community of investors” also lends itself to the integration of ESG considerations. Its firm-wide investment and risk-management processes incorporate ESG factor analysis, which it applies across asset classes as appropriate. These processes are consistent with the aims of emerging best-practice codes, including:
- The UN Principles for Responsible Investment (PRI)
- The U.K. Stewardship Code
- The Hong Kong Principles of Responsible Ownership
- The Japan Stewardship Code
- The Investor Stewardship Group’s Framework for U.S. Stewardship and Governance
The investment team views ESG analysis and integration as both return-enhancing and risk-mitigating. Each portfolio manager and investment team develops their own investment approach. Wellington’s ESG analysts conduct in-depth reviews of material factors for the companies within their sector coverage. They consider the extent to which ESG factors may affect the long-term success of a company. This may show up within the investment thesis or the portfolio weighting for a particular security.
Company engagement and proxy voting are two critical elements in Wellington’s approach to ESG integration. Its ESG Research team engages with company management and executes proxy voting for over 5,000 company meetings each year. The team also helps Wellington’s investment personnel gather deeper intelligence on ESG topics and integrate them in the investment process.
Sompo Japan Nipponkoa Asset Management (SNAM)
Total AUM: $27.7 billion as of September 30, 2019
Strategy Name: Japan Value Concentrated
SEI Fund: World Select Equity Fund
UN-PRI Signatory Status: January 2012
Since SNAM was founded in 1986, it has focused on expanding investment returns by attempting to accurately grasp not only the financial information of each investee company but also their respective ESG factors.
In April 2017, SNAM established its Responsible Investment Office, led by full-time ESG specialists, to strengthen the organization. It also created a Responsible Investment Committee, to promote responsible investment initiatives within the company. The Committee establishes guidelines for investment decisions—and plays a key role in counseling employees on how best to follow these guidelines.
One significant recent change is the Climate Action 100+ movement, a global collective engagement initiative that SNAM has signed. Engagement through the cooperation of the international community is said to be an effective means of tackling climate change and other worldwide ESG issues.
SNAM integrates ESG factors into its investment-management process by constantly monitoring companies’ ESG data and comprehensively evaluating such information as an investment value.
The firm believes that companies and investors need to share the same concerns in order to engage in constructive dialogue. SNAM focuses on understanding companies’ added-value creation and distribution process as a means of accurately grasping investee companies’ mid- to long-term profitability and financial and capital policies. The firm promotes mutual awareness and constructive communication with the investee companies in an effort to solve problems by keeping corporate value enhancement and sustainable growth, both shared aims, at the core of those dialogues.
In 2018, SNAM identified approximately 700 potential investee companies. Through its analysts’ research, the firm held 699 dialogues and participated in 1,940 briefings, for a total of 2,639 opportunities for dialogue.
At SEI, we not only recognize the importance of investment returns but also the imperative of connecting investors’ underlying investment decisions with their values. In our view, aligning an investment strategy with a purpose should not require financial goals to be compromised.
Investor interest in ESG will not wane anytime soon. Yet, despite its explosive popularity, there are still no clearly-defined standards guiding ESG investing. Indeed, this approach to investing exists on a continuum. We think that ESG may be more widely considered an inherent component of fundamental analysis in the future. As the industry settles on a common definition of responsible investing and enacts more regulation around ESG reporting and materiality, this type of analysis may become more straightforward.
Until then, we think it’s important to communicate how our managers incorporate ESG factors into their investment analysis, particularly as a growing number of investors want to participate in making the world a better place through their investments. As a leading money manager with clients around the world, SEI is continuously working to improve our Manager Research Team’s ESG evaluation process to help build client portfolios that best meet their goals.
|Alpha||Alpha refers to returns in excess of the benchmark|
|Bottom-up||Bottom-up managers focus on individual stock selection instead of the overall economic environment.|
|Qualitative||Qualitative refers to security analysis based on analyst research and subjective views.|
|Quantitative||Quantitative analysis is based on computer-driven models.|
|Top-down||Top-down managers focus on the overall economic environment instead of individual stock selection.|
|UN GC||United Nations Global Compact Member. The UN GC is a voluntary initiative based on CEO commitments to implement universal sustainability principles and to take steps to support UN goals.|
|UN SGD||UN SGD = United Nations Sustainable Development Goals.|
On January 1, 2016, the 17 Sustainable Development Goals (SDGs) of the UN’s 2030 Agenda for Sustainable Development — which were adopted by world leaders in September 2015 at an historic UN Summit — officially came into force. Over the next fifteen years, with these new goals that universally apply to all, countries will mobilize efforts to end all forms of poverty, fight inequalities and tackle climate change, while ensuring that no one is left behind.
*The manager profiles are for those managers within the SEI Institutional Investments Trust (SIIT) funds that are rated as strong.
This presentation is provided by SEI Investments Management Corporation (SIMC), a registered investment adviser and wholly owned subsidiary of SEI Investments Company (SEI). The material included herein is based on the views of SIMC. 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. This presentation should not be relied upon by the reader as research or investment advice (unless SIMC has otherwise separately entered into a written agreement for the provision of investment advice).
There are risks involved with investing including loss of principal. There is no assurance that the objectives of any strategy will be achieved or will be successful. No investment strategy, including diversification, can protect against market risk or loss. Past performance does not guarantee future results. Environmental, social and governance (ESG) guidelines may cause a manager to make or avoid certain investment decisions when it may be disadvantageous to do so. This means that these investments may underperform other similar investments that do not consider ESG guidelines when making investment decisions..
SEI Investments Management Corporation (SIMC) is the adviser to the SEI Funds which are distributed be SEI Investments Distribution Co. (SIDCO). SIMC and SIDCO are wholly owned subsidiaries of SEI.
To determine if the Funds are an appropriate investment for you, carefully consider their investment objectives, risk factors and charges and expenses before investing. This and other information can be found in the Funds’ summary and full prospectuses, which may be obtained by calling 1-800-DIAL-SEI. Read them carefully before investing.