Citywire printed articles sponsored by:
View the article online at http://citywire.co.uk/new-model-adviser/article/a453554
SEI launches seven absolute return strategies
by Dylan Lobo on Nov 30, 2010 at 00:01
Investment outsourcing firm SEI Global Wealth Services has added seven absolute return funds to its stable of strategic portfolios.
The seven funds are based on four core absolute return strategies - equity long/short, equity market neutral, credit long/short and global macro. They are designed to combine modern portfolio theory with behavioural finance to meet a wide range of investor risk profiles.
The move is the latest step by the US-based giant - which holds $164 billion (£103 billion) in assets under management - to increase its influence in the UK advisory market after it struck a strategic alliance with Bestinvest to provide a range of wealth management services available via a platform.
The seven funds are an extension to the SEI strategic portfolios, which launched in February 2010 with the aim of providing business solutions for advisers.
They will sit alongside the firm's existing asset classes which include equity, fixed income, liquidity and property, which manage a combined £78 billion.
The absolute return funds will be overseen by SEI's alternative investment team, which manages around $2 billion. The team will use SEI's manager-of-manager process to select, combine, and monitor some of the world’s leading absolute return investment managers.
The funds will occupy a 10% exposure in the firm's conservative, moderate, core and balanced portfolios. SEI said it may add other absolute return strategies to take advantage of opportunities throughout the economic cycle.
Cedric Bucher (pictured), director of client investment strategy, SEI Global Wealth Services, explained why the group sees this as a good time to enter this market: He said: 'Absolute return strategies are an excellent addition to the portfolios, providing further opportunity to diversify risk. The universe of Ucits funds that employ absolute return strategies has grown significantly over the past three years, providing the opportunity for broader screening and better portfolio construction in the context of a multi-asset portfolio.'
News sponsored by:
Today's top headlines
Challenged by growing risk aversion?
Challenging financial markets over recent years have resulted in growing risk aversion among British savers and led many to seek safety in cash. Click here for more.
More about this article:
More from us
by Himanshu Singh on Dec 08, 2013 at 05:41