SEI beefs up its managed accounts shelf again

SEI has unveiled a raft of new investment strategies to enhance its suite of SMA and UMA solutions.

The latest additions to the firm’s managed account solutions program, driven by feedback from SEI’s major strategic clients, includes new fixed income-based direct indexing strategies and dividend-focused equity options.

"We remain steadfast in delivering solutions rooted in advice, customization, and stability for our clients," Jim Smigiel, SEI’s chief investment officer and head of the investment management unit, said in a statement.

"SMAs and UMAs provide flexibility and tax optimization, and as adoption increases, we continue to deliver optionality," he said.

The new strategies, which are tailored to help advisors serve mass-affluent, high-net-worth, and ultra-high-net-worth investors include:

• A Systematic U.S. Aggregate Bond Core strategy, built to provide exposure to the US aggregate fixed-income market;
• A Systematic Municipal Bond Core strategy, offering risk factor-based exposure that mirrors an intermediate muni bond market index;
• A Systematic U.S. Dividend Yield Core strategy, which is designed to deliver returns similar to a dividend yield-focused index of US stocks that provide consistent and sustainable high dividend payments; and
• A U.S. Dividend Yield Multi-Factor SMA strategy, which is designed to select high dividend-paying US large-cap stocks that deliver income without compromising long-term capital appreciation by drawing on a quantitative-based active investment process.

SEI is introducing the new strategies amid a surge in UMAs’ popularity, with assets growing at an annual rate of 34 percent over the past five years according to one estimate by Cerulli.

Other players are making moves in the space. In June, Envestnet said it was strengthening its ties with BlackRock, Fidelity, Franklin Templeton and State Street, with a major focus on integrating UMA-eligible personalized direct index solutions from each manager into its platform.

Last month, Dimensional Fund Advisors took a massive step forward by unveiling a UMA platform that evolved from its SMA shelf.

SEI expects the transformation of managed accounts to continue as advisors pursue greater personalization and tax control for clients by incorporating direct indexing and factor investing solutions into custom SMAs.

"Our goal is to continue to offer better tax-efficient and cost-effective personalization at scale, so advisors can unlock new opportunities for growth, navigate complexity with confidence, and better align their strategies with the new wealth portfolio—driven by each client’s individual needs and objectives," said Erich Holland, executive managing director of client experience for SEI’s advisor business.