SEI, a global provider of institutional and private client wealth management solutions, has launched a set of tactical exchange-traded fund (ETF) strategies, developed as a lower-cost alternative to traditional active management.
Kevin Crowe, Senior Vice President, SEI Advisor Network.
The offering consists of three distinct strategies – conservative, moderate, and growth – targeting different levels of risk and return.
Kevin Crowe, Senior Vice President of Product Development, SEI Advisor Network, said: “Clients are demanding more investment choice and flexibility and we’ve developed a unique set of strategies to help our advisors meet those needs and remain competitive. SEI has been an innovator in the investment space for more than 30 years and these new offerings are the latest example of our out-of-the-box thinking.”
Each strategy invests in a range of ETFs, across various asset classes, that offer the best chance to track their benchmarks and meet the portfolio strategies’ objectives.
The Tactical ETF Conservative Strategy is designed to manage the risk of loss while providing the opportunity for modest capital appreciation. It invests in underlying ETFs that primarily hold US short-term investment-grade fixed-income securities, including mortgage-backed securities and US and/or foreign non-investment-grade fixed income securities and common stocks.
The Tactical ETF Moderate Strategy seeks capital appreciation while managing the risk of loss. It invests in underlying ETFs that invest primarily in US and/or foreign stocks and US short-term investment-grade fixed-income securities including mortgage-backed securities.
The Tactical ETF Market Growth Strategy seeks total return consistent with a primary emphasis on capital appreciation. It can invest in underlying ETFs that primarily hold US and/or foreign common stocks and US short-term investment-grade fixed-income securities, including mortgage-backed securities.
All three strategies may also opportunistically invest in ETFs of various other asset classes, such as real estate, commodities and currencies.
The strategies are actively managed by SEI’s Portfolio Strategy Group, which is comprised of investment professionals worldwide. The group adjusts the allocations based on changes in the economy and business cycle. They scrutinise economic data, track market trends and valuate investor sentiment looking for signals the economic environment is changing. When the signals are aligned, SEI adjusts the asset allocations in an effort to capture return opportunities and minimise potential downside risk throughout the business cycle.