SEI has added absolute return strategies to its goals-based strategic portfolios with the aim of delivering further diversification and exposure to long-term capital growth whilst reducing risk.
In addition to existing asset classes, such as equity, fixed income, liquidity and property, SEI has added a portfolio of absolute return strategies – equity long/short, equity market neutral, credit long/short, and global macro funds – which use the full investment capabilities of Ucits III.
The SEI strategic portfolios are seven funds that embrace SEI’s goals-based investment philosophy, which combines modern portfolio theory with behavioural finance. Designed to meet a wide range of investor risk profiles and financial goals, the portfolios aim to help advisers provide tailored client recommendations with a scalable, risk-managed investment solution and process.
This latest enhancement provides an exposure of up to ten per cent in the Conservative, Moderate, Core and Balanced portfolios.
Other absolute return strategies may be added in the future to take advantage of opportunities throughout the economic cycle.
Cedric Bucher, director of client investment strategy, SEI global wealth services, says: "Absolute return strategies are an excellent addition to the portfolios, providing further opportunity to diversify risk. The universe of Ucits funds that employ absolute return strategies has grown significantly over the past three years, providing the opportunity for broader screening and better portfolio construction in the context of a multi-asset portfolio.
"In order to screen such a diverse universe in terms of quality of strategies and experience of managers, institutional investment process and operational due diligence is critical. With our highly qualified investment team of nearly 100 people, we are able to research in excess of 500 absolute return strategies globally, providing a much broader opportunity than the funds available in the IMA absolute return sector alone."