#United States #SEI Investments #Capital Group #Oaks #ETF Strategies

SEI Launches SEI Strategies with Capital Group

SEI Investments Company, a prominent player in the financial services sector, has recently introduced a new series of model portfolios known as SEI Strategies with Capital Group. This strategic partnership has unveiled a comprehensive lineup focused solely on exchange-traded funds (ETFs), effectively blending SEI’s disciplined asset management techniques with Capital Group's robust offerings.

The move is particularly timely as the demand for model portfolios has surged, with the sector experiencing a substantial growth rate of 21.4% in 2023, according to industry reports. Responding to this flourishing market, SEI aims to provide clients with innovative portfolio options that facilitate diversification and risk management within their investment strategies.

The New Suite of Portfolios

The SEI Strategies encompass a well-advised selection of 12 distinct model portfolios, categorically designed to cater to various financial objectives and geographic exposures. These include:

• - Six SEI Strategies with Capital Group
• - Six U.S. Focused Strategies with Capital Group
• - Six Tax-Managed Strategies with Capital Group
• - Six U.S. Focused Tax-Managed Strategies with Capital Group

Each model is structured within a Unified Managed Account (UMA) framework, providing clients with the flexibility to combine strategies, optimize geographic exposure, and efficiently manage tax liabilities.

Innovative Tax Management Techniques

One of the standout features of these new offerings is their emphasis on tax efficiency. The tax-managed strategies are particularly noteworthy as they utilize ETFs to maximize tax benefits. They include innovative practices such as:

• - Leveraging municipal bond ETFs for tax-free income
• - Implementing systematic and opportunistic tax-loss harvesting
• - Providing a clear “Estimated Taxes Saved” report for enhanced transparency

This approach is not merely a product of innovation. According to Erich Holland, Head of Client Experience for SEI’s Advisor business, the goal is to align client interests with sophisticated investment techniques to manage personal tax burdens effectively. “Personal taxes are the highest single expense for households with incomes exceeding $200,000. Investors desire optimization strategies while advisors look to demonstrate their value effectively,” said Holland during the announcement.

A Synergistic Partnership

The collaboration between SEI and Capital Group leverages the strengths of both organizations. Capital Group, known for its extensive suite of active ETFs designed to meet the diverse needs of financial advisors, has constructed these new portfolio models in line with client requests. Peter Thatch, Head of the Strategic Relationship Group for Capital Group, emphasized that the joint effort aims to enrich the wealth management tools available to financial professionals, allowing for an integrated approach to asset allocation that benefits a broader range of client needs.

This partnership not only enhances the offerings available to investors but also positions both companies at the forefront of the model portfolio landscape, allowing them to respond proactively to changing market dynamics and investor expectations. By utilizing SEI’s technology alongside Capital Group’s seasoned investment strategies, the newly launched portfolios are designed to bolster client portfolios and facilitate better investment decisions.

Conclusion

The launch of SEI Strategies with Capital Group marks a significant development in the investment management landscape. By combining SEI’s disciplined investment methodologies with Capital Group’s innovative ETF offerings, both firms aim to empower investors and advisors alike. As clients continue seeking effective ways to navigate the complexities of modern investing, these portfolios promise to deliver enhanced growth potential while prioritizing tax efficiency—a dual approach highly sought after in today's financial environment.

Investors should always consult their financial advisors to better understand how these new offerings can align with their unique financial goals and circumstances before diving into investments.

Ultimately, as SEI and Capital Group reaffirm their commitment to investor-centric solutions, the industry is keenly watching how these developments will shape the future of investment strategies.