SEI Introduces New Direct Index and Factor Investment Strategies, Enhancing Customization and Control for Investors
SEI, a leading provider of technology and investment solutions, has announced the launch of new investment strategies to its Separately Managed Account (SMA) and Unified Managed Account (UMA) solutions. These strategies were developed based on feedback from SEI’s largest strategic clients and aim to enhance customization and control for investors.
The new investment strategies include fixed income-based direct indexing and dividend-focused equity options. SEI’s direct indexing solutions provide access to the entire capital markets, while factor strategies and individual bond portfolio management further expand the range of options available to advisors.
SEI’s SMAs and UMAs offer flexibility and tax-optimization, providing greater control and personalization for advisors. With UMAs exhibiting strong growth rates over the last five years and expected growth in the next four years, SEI’s differentiated UMA structure is well-positioned to meet the needs of mass-affluent, high-net-worth, and ultra-high-net-worth investors.
The new strategies introduced by SEI include the Systematic U.S. Aggregate Bond Core strategy, which provides exposure to the U.S. aggregate fixed-income market, and the Systematic Municipal Bond Core strategy, which offers exposure to the intermediate municipal bond market. Additionally, SEI has launched the Systematic U.S. Dividend Yield Core strategy, which aims to provide a return similar to a dividend yield-focused index, and the U.S. Dividend Yield (Multi-Factor SMA) strategy, which deploys a quantitative-based, active investment process.
Advisors are increasingly integrating direct indexing and factor investing solutions within custom SMAs to offer greater personalization and tax control to clients. SMAs provide individualized strategies run by professional managers, while UMAs combine multiple strategies or investment vehicles within a single account structure. UMAs also deliver sophisticated tax optimization to enhance after-tax returns.
Erich Holland, Executive Managing Director of Client Experience for SEI’s Advisor business, emphasized the company’s commitment to client feedback and the development of investment strategies that provide greater control, transparency, and tax-efficiency. SEI’s goal is to offer better tax-efficient and cost-effective personalization at scale, enabling advisors to unlock new growth opportunities and align strategies with each client’s individual needs and objectives.
SEI, with approximately $1.5 trillion in assets under management, continues to deliver innovative solutions that connect the financial services industry. Through its technology and investment expertise, SEI works with corporations, financial institutions, professionals, and ultra-high-net-worth families to solve problems, manage change, and protect assets for growth today and in the future.