#United States #financial advisors #SEI Investments #Oaks #Tax Efficiency

SEI's Strategic Expansion of Direct Index Equity SMAs

In a significant development in the financial services sector, SEI® (NASDAQ: SEIC) recently unveiled the expansion of its direct index separately managed account (SMA) strategies. This initiative responds to the evolving needs of financial advisors and their clients for sophisticated investment solutions that emphasize personalized service and tax efficiency.

SEI's latest SMA strategies are tailored to meet the expectations of mass-affluent, high-net-worth, and ultra-high-net-worth individuals. These strategies are designed to hold a selection of underlying securities that closely match the characteristics of a targeted index. Among the notable additions to SEI's offerings are:

• - The Systematic S&P 500® Core
• - Systematic U.S. SMID Cap Core
• - Systematic U.S. Small Cap Core

These strategies are complemented by options from Parametric Portfolio Associates, which contribute to the wide range of Custom Core U.S. large cap, mid/small cap, and small cap strategies. This broadening of SEI’s direct index equity and fixed-income offerings signifies the company's commitment to providing its clients with state-of-the-art investment strategies that ensure optimal tax outcomes.

Market Trends and Client Needs

Erich Holland, Head of Client Experience for SEI's Advisor business, highlighted three pressing trends driving this expansion: the growing demand for tax-efficient solutions, the integration of public beta and private alpha within unified managed account (UMA) strategies, and the increasing popularity of model adoption among advisors aiming to deliver sophisticated investment solutions on a large scale. By placing technology at the heart of their offerings, SEI is fundamentally improving the client experience, making it easier for financial advisors to cater to these demands.

A key aspect of SEI’s expansion revolves around enhancing tax optimization. The firm's Systematic Core Strategies and other tax-managed models are engineered to adeptly capture tax losses during market fluctuations, enabling clients to defer gains for maximum tax efficiency. Furthermore, SEI equips advisors with a personalized “Estimated Taxes Saved” report, summarizing client-specific data about year-to-date tax savings from active tax management.

Commitment to Client-Centric Solutions

Jim Smigiel, SEI's Chief Investment Officer, reinforced the organization's commitment to designing best-in-class solutions tailored to client needs. By enlarging its direct index equity SMA offerings through the incorporation of SEI Systematic Core strategies and Parametric Custom Core strategies, SEI is fulfilling its objective to provide customizable and tax-optimized solutions. These offerings enable advisors to achieve better outcomes for their clients and maintain a strong value proposition in wealth management.

In the current financial landscape, there is an increasing emphasis on personalization. As client preferences evolve, wealth management firms are integrating direct index solutions and customized SMAs to deliver individualized portfolios that aim to reduce tax liabilities. While SMAs offer tailored strategies administered by specialized managers, UMAs bring together multiple strategies under a single account structure, thereby allowing for enhanced tax optimization that promotes after-tax returns.

About SEI

Operating on the global stage, SEI (NASDAQ: SEIC) is recognized as a pioneering provider of financial technology, operations, and asset management services tailored to the financial services industry. Its core aim is to assist clients in deploying capital effectively, whether it be financial resources, time, or expertise. As of December 31, 2024, SEI manages, advises, or administers approximately $1.6 trillion in assets, underscoring its position as a leader in integrated financial solutions.

For more information on SEI’s expanded offerings and how they can support financial advisors and their clients, visit seic.com.

Disclaimer: Investing carries inherent risks, including possible principal loss. It is advisable for clients to seek independent tax advice tailored to their individual circumstances.