LSV Asset Management (LSV) has been added to the SEI Canadian Equity Fund (the Fund).

Addition of LSV

What They Do

LSV aims to exploit behavioural weaknesses of market participants. The firm’s quantitative approach involves selecting stocks that are deeply undervalued and have been out of favour for several years, but have more recently begun to exhibit improving fundamentals.

How They Do It

LSV’s portfolio decision-making process is strictly quantitative and is driven by a proprietary model that ranks securities based on fundamental measures of value and indicators of near-term appreciation potential.

LSV’s investment universe includes all stocks above a minimum daily trading value and market capitalization over CAD$250 million. This narrows the universe to about 400 companies.

The resulting portfolio contains about 50 to 70 stocks.

About LSV

LSV was founded in 1994 and is headquartered in Chicago. The firm’s sole focus is value equities. SEI Investments Company owns 39% of LSV, but is not involved in the day-to-day management of the firm. As of December 31, 2017, the firm had US$118.4 billion in assets under management.

Glossary of Financial Terms

Alpha source: Alpha source is a term used by SEI as part of our internal classification system to categorize and evaluate investment managers in order to build diversified fund portfolios. An alpha source is the investment approach taken by an active investment manager in an effort to generate excess returns. Another way to define an alpha source is that it is the inefficiency that an active investment manager seeks to exploit in order to add value.

Fundamental: Fundamental analysis is based on analyst research and judgment.

Fundamentals: Fundamentals refers to data that can be used to assess a country or company's financial health such as amount of debt, level of profitability, cash-flow, inventory size, etc.

Quantitative: Quantitative analysis is based on computer-driven models.

Value: Value stocks are those that are considered to be cheap and are trading for less than they are worth.










Important Information

SEI Investments Canada Company, a wholly owned subsidiary of SEI Investments Company, is the Manager of the SEI Funds in Canada. The information contained herein is for general and educational information purposes only and is not intended to constitute legal, tax, accounting, securities, research or investment advice regarding the Funds or any security in particular, nor an opinion regarding the appropriateness of any investment. This information should not be construed as a recommendation to purchase or sell a security, derivative or futures contract. You should not act or rely on the information contained herein without obtaining specific legal, tax, accounting and investment advice from an investment professional. This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. There is no assurance as of the date of this material that the securities mentioned remain in or out of the SEI Funds. The portfolio managers or the allocations of assets to a particular portfolio manager are subject to change from time to time at the Manager’s discretion. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus or other offering documents before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.