Hillsdale Investment Management Inc. (Hillsdale) has been added to the SEI Canadian Small Company Equity Fund (the Fund).

Hillsdale emerged as high-conviction relative to its peers and is a sub-adviser with whom we are familiar through other SEI implementations. This small-cap strategy, unlike the Fund’s three other mandates, is an off-the-shelf product that has been live since 1996. It is managed by Chris Guthrie, the driving force behind the firm. The strategy exhibits a significant tilt toward momentum, with smaller tilts to stability and value.

Addition of Hillsdale

What They Do
The underpinnings of Hillsdale’s investment philosophy are both traditional and scientific, applying quantitative tools and techniques to fundamental equity research. Hillsdale embraces the best of both quantitative and fundamental ideologies. The investment team has been committed to this approach through multiple market cycles. Fundamental equity research allows the team to hypothesize about individual stock-return drivers, while quantitative tools and disciplines rigorously test these hypotheses.

How They Do It
Primarily focused on the variance of outcomes around a defined investment objective, Hillsdale’s process is more a best-of-breed research and implementation engine than a single model. The firm attempts to mitigate some of the worst pitfalls of quantitative investing in the form of revised data, look-ahead bias, data-snooping and signal decay.

About Hillsdale
Headquartered in Toronto and founded in 1996, Hillsdale is an employee-owned firm focused on Canadian and global small-cap equities. The firm had a total of CAD$2.2 billion in assets under management as of March 31, 2018.

Glossary of Financial Terms

Momentum: Momentum refers to assets that trend in price as perception changes directionally and serially with incoming data as a result of investor under reaction due to anchoring.

Quantitative: Quantitative refers to quantitative analysis which is based on computer-driven models.

Stability: Stability refers to assets that benefit from the power of long-term compounding as a result of investors’ tendency to misprice lower risk due to too-short time horizon and overconfidence in forecasts, which lead to preference for lottery-like outcomes.

Value: Value refers to 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.