The U.S. High Yield Bond Fund (“the Fund”) added Blackstone Inc’s (“Blackstone”) High Yield Corporate Bond strategy. 

Investment philosophy and process 

Blackstone’s credit investment approach is designed to generate alpha through rigorous security selection, deliberately minimizing exposure to systematic risk. Rather than relying on traditional risk premia such as carry, quality, size, or liquidity, the team focuses on capturing excess returns from pricing inefficiencies between proprietary model valuations and market spreads.

Blackstone’s approach mirrors the discipline of traditional underwriting while eliminating subjective bias. The strategy maintains strict control over volatility and industry exposures relative to the benchmark, ensuring that performance is driven by corporate credit selection ultimately aiming to deliver consistent, risk-adjusted returns over time. 

Central to the approach is a proprietary default probability model that estimates market-implied default risk. By integrating firm-level fundamentals with real-time market data, the model calculates fair value credit spreads for each issuer. This process allows Blackstone to identify undervalued, high-quality credits while avoiding overvalued or deteriorating names, which anchors performance in data-driven insights and disciplined execution. 

Role in the Fund 

Blackstone serves as a core high yield bond manager, leveraging a distinctive quantitative strategy grounded in fundamentals. Their structured and repeatable security selection process is designed to consistently capture alpha, potentially enhancing both the Fund’s return and its diversification profile.

About Blackstone

Blackstone is a global investment firm, primarily operating as the world's largest manager of alternative assets, which includes private equity, real estate, credit, and infrastructure funds. Within its credit platform, Blackstone Credit & Insurance, Blackstone is a leading investor across private and public credit markets including investment grade, high yield, direct lending, CLOs, and opportunistic strategies. As of September 30, 2025, Blackstone had USD $1.2T in assets under management.











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. 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