While corrections and bear markets are a normal part of investing, investors do not like to lose 10%, 20% or possibly more of their assets associated with these types of declines. One way to help dampen the impact of market downturns is to invest in managed volatility strategies that focus on more-stable companies with less potential downside risk. Exhibit 1 shows cumulative performance from October 1 to December 31, 2018 for the SEI Global Managed Volatility Fund’s O shares, the MSCI ACWI Index (Net), and the excess return of the Fund over the Index. Despite negative absolute performance, the Fund significantly outperformed the MSCI ACWI Index, to the tune of over 4%, during the fourth-quarter market turmoil. The Fund also reduced risk, posting a nearly 10% reduction in volatility (standard deviation) over the Index.

Performance shown is net of the Fund’s operating expenses. Performance does not reflect management fees payable to SEI and any advisory fees that may be payable to the dealer. The rate of return shown is used only to illustrate the effects of the compound growth rate and is not intended to reflect future values of the Fund or returns on investment.

SEI’s Strategies

When stock prices are rising, investors often question the value of diversification in general and, more specifically, of managed volatility strategies. SEI has been a steadfast supporter of both diversification and managed volatility. We have always maintained that markets can turn quickly and that, when they do, diversification—including exposure to managed volatility—can help to soften the impact.

As a pioneer in the space, SEI has a long history of investing with managed-volatility strategies that have a primary objective of realizing less volatility than the overall stock market. By doing so, we hope to experience smaller drawdowns than the market when stocks sell off. And while we don’t normally expect them to outperform the broader market in the long-term, our strategies do seek equity market-like returns. When these two objectives are met, a managed-volatility approach should produce attractive risk-adjusted returns compared to the stock market as a whole. Recent weeks have provided a clear and concise illustration of how a well-designed managed-volatility strategy can benefit investors during turbulent periods.

Performance shown is net of the Fund’s operating expenses. Performance does not reflect management fees payable to SEI and any advisory fees that may be payable to the dealer. The rate of return shown is used only to illustrate the effects of the compound growth rate and is not intended to reflect future values of the Fund or returns on investment.


Definitions

The MSCI ACWI Index is a market-capitalization-weighted index composed of over 2,000 companies, representing the market structure of 48 developed- and emerging-market countries in North and South America, Europe, Africa and the Pacific Rim. The Index is calculated with net dividends reinvested.

Standard deviation is a statistical measure of volatility; it is the average difference between a series of return observations and their average.










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.

This material may contain “forward-looking information” (“FLI”) as such term is defined under applicable Canadian securities laws. FLI is disclosure regarding possible events, conditions or results of operations that is based on assumptions about future economic conditions and courses of action. FLI is subject to a variety of risks, uncertainties and other factors that could cause actual results to differ materially from expectations as expressed or implied in this material. FLI reflects current expectations with respect to current events and is not a guarantee of future performance. Any FLI that may be included or incorporated by reference in this material is presented solely for the purpose of conveying current anticipated expectations and may not be appropriate for any other purposes.

Information contained herein that is based on external sources is believed to be reliable, but is not guaranteed by SEI Investments Canada Company, and the information may be incomplete or may change without notice.

There are risks involved with investing, including loss of principal. Diversification may not protect against market risk. There may be other holdings which are not discussed that may have additional specific risks. In addition to the normal risks associated with investing, international investments may involve risk of capital loss from unfavourable fluctuation in currency values, from differences in generally accepted accounting principles or from economic or political instability in other nations. Emerging markets involve heightened risks related to the same factors, in addition to those associated with their relatively small size and lesser liquidity.

Index returns are for illustrative purposes only, and do not represent actual performance of an SEI Fund. Index returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index.

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any unitholders that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.