Investments
Investments Management Approach
About SEI Investments
Meeting your retirement goals with SEI funds
Investing made simple
About SEI asset allocation funds
Portfolio Manager Research and Selection Process
Monitoring Portfolio Managers and Your Retirement Investments
Investments Management Approach 
The board of trustees introduced some fundamental changes to the fund’s investment management philosophy and process.
In light of the demographics of the plan membership and the volatility of financial markets, a study was undertaken to examine the appropriateness of the asset mix and the investment risk allocation. It was concluded that the membership would be better served if a more diversified investment approach were adopted based on four different risk profiles (i.e. conservative, moderate, aggressive and ultra-conservative).
As people approach retirement, their risk tolerance changes while their assets need to be sheltered from market volatility. To answer to these objectives, on August 1, 2000, the Frank Russell Company was hired as the fund’s investment manager to replace the former investment management structure.
In the fall of 2000 and spring of 2001, membership meetings were held to inform members of these changes. Members received an information kit outlining the changes in detail.
In 2001, all members were automatically invested in the Balanced Growth Portfolio. Its asset mix is:
- 40 per cent Fixed Income Fund;
- 30 per cent Canadian Equity Fund;
- 15 per cent US Equity Fund; and
- 15 per cent Overseas Equity Fund.
Since January 1, 2002, members have had the opportunity to switch from one portfolio to another once a year. And, beginning January 1, 2004, members can switch portfolios twice a year.
(Please note that if you do not make an election by June 15 and December 15 of the year, your assets will remain in the same portfolio for another six months or until you make an alternate choice.) Member election forms must be received by the plan administrator on or prior to June 15 and December 15 of each year to qualify for a change in portfolio on the July 1 or January 1 immediately following.
As part of the governance monitoring process, the fund has a statement of investment policies and procedures. In this policy are defined performance objectives for investment managers to achieve over a four-year period. On a quarterly basis, the Board of Trustees monitors the performance against the stated objectives. Frank Russell Canada was hired in the third quarter of 2000.
Effective January 5, 2005, the board of trustees passed a resolution to terminate the services of Frank Russell Canada and hire SEI Investments.
Effective January 1, 2006, the board of trustees expanded the number of asset allocation funds available to members to ten (Money Market, Income 100, Income 20/80, Income 30/70, Income 40/60, Balanced 50/50, Balanced 60/40, Growth 70/30, Growth 80/20, Growth 100).
About SEI Investments
SEI (NASDAQ:SEIC) is a leading global provider of investment processing, fund processing, and investment management business outsourcing solutions that help corporations, financial institutions, financial advisors, and ultra-high-net-worth families create and manage wealth. As of March 31, 2011, through its subsidiaries and partnerships in which the company has a significant interest, SEI manages or administers $429 billion in mutual fund and pooled assets or separately managed assets, including $179 billion in assets under management and $250 billion in client assets under administration. For more information, visit www.seic.com.
Meeting your retirement goals with SEI funds
SEI Investments understands the issues faced by group retirement plan members like yourself. Their goal is to help you achieve your retirement objectives and give you and your family the kind of future you deserve.
SEI provides an array of fund options and makes investing easy for you. The SEI funds are based on a manager-of-managers approach to investing. This approach incorporates multiple managers, multiple investment styles and multiple asset classes in one single fund.
The SEI funds follow an investment philosophy that is disciplined and scientific. SEI’s philosophy is based on four principles: asset allocation, portfolio structure, multiple specialist managers and continuous portfolio management. These principles all work together to deliver an investment program that makes sense in any financial climate.
Investing made simple
The SEI funds have been designed to take into account difference financial situations, retirement goals, tolerance for risk and levels of investment knowledge. Regardless of what your investment objectives are, the SEI funds will meet your needs.
Once you have selected a fund that matches your financial situation, you need only revisit your selection on a semi-annual basis or when a major life event occurs, such as marriage, buying a house, or having children. Altering your investment choice is only necessary when your investment objectives or tolerance for risk changes.
The funds deliver a sophisticated multi-manager, multi-style, multi-asset class structure without the confusion and complexity associated with creating one. SEI makes investing simple for you.
About SEI asset allocation funds
The SEI asset allocation funds are based on a manager-of-managers investment process that offers diversified portfolios that maximize return potential and your exposure to investment risk.
SEI combines multiple specialist managers with different investment styles to provide you with the optimal mix of assets, investment styles and exposure to dozens of independent portfolio managers. The SEI asset allocation funds ensure you “don’t put all your eggs in one basket”.
Portfolio Manager Research and Selection Process
SEI selects portfolio managers using a scientific, time-tested approach that’s based on the firm’s experience with thousands of portfolio managers across all market cycles. This rigorous step-by-step process starts with evaluating each potential manager’s performance against a benchmark that’s relevant to their investment style. The process then ends with a qualitative examination of the portfolio management firm itself that involves personal interviews and on-site visits.
SEI’s portfolio manager research and selection process shrinks a universe of thousands of potential portfolio managers down to a select few that meet all of SEI’s criteria.
Monitoring Portfolio Managers and Your Retirement Investments
You need not worry about replacing portfolio managers if their performance isn’t meeting your objectives. You also need not worry about your asset mix moving away from your target. (Your asset mix is the mix between stocks and bonds.)
SEI believes this high level of attention is the only way to provide the risk control you require to ensure that your retirement savings stay on track and meet your objectives.
IMU Communication AAF Changes (PDF)
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