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Client Investment Review

Client Investment Review

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Client Investment Review

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  1. 1st Quarter 2014 INSERT CLIENT NAME DATE Client Investment Review

  2. Agenda ›Setting Goals • Follow-up From Last Meeting • Financial Planning Check Up and Reconfirm Goals • Global Market Review and Economic Outlook • Your Portfolio Review • Financial Planning Tips & Upcoming Tax Climate • Next Steps

  3. Our Plan ›My Commitment as Your Financial Advisor • Better understanding your needs and goals. • Helping you avoid emotion-driven mistakes. • Helping you better understand the markets. • Providing options and explaining the trade-offs of each. • Being available to consult with you in all markets. • Providing access to your investments 24/7 through personal contact and technology. • Continuous monitoring and quarterly rebalancing of your accounts. • Keeping you up-to-date on your concerns and adjusting your investment strategies to help you meet your goals. • My goal is to help you manage risk and achieve consistent returns that will keep you on path to your goals.

  4. Reconnecting on Your Goals Follow Up From Previous Meeting

  5. Financial Check Up ›A Holistic View • How are you and your family doing? How is your health? • How is your cash flow? • Do you have any anticipated changes to your investment plan, estate plan or insurance coverage? • Have there been any changes to your lifestyle or circumstances? • What are your plans for the next three to six months? • What are your top concerns for this year? What keeps you up at night?

  6. Your Goals ›Ongoing Monitor and Review  Identify your goals and resources   Monitor investment strategies & progress to goals on an on-going basis Identify the appropriate investment strategies to meet your goals   Implement the Goals-Based investment solution Evaluate and confirm the proposed investment solution designed to meet your goals .

  7. Diversification ›Asset Class Returns • Individual asset classes go in and out of favor over time. Harnessing proper diversification can enhance returns and help to cushion against volatility. • This graphic illustrates why investors diversify and the potential damages of market timing. • As you can see, no single asset class remained at the top for two consecutive years, and in fact often trailed the market in succeeding years. See appendix for index definitions. Index returns are for illustrative purposes only and do not represent actual fund performance. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results. Source: lbbotson Associates. This material has been obtained from sources generally considered reliable. No guarantee can be made as to its accuracy. Not intended to represent the performance of any particular investment. Indices are unmanaged and one cannot invest directly in an index.

  8. Economic & Market Insights Economic Review

  9. Global Market Review Source: SEI,. Returns in US dollars. Large Cap = Russell 1000, Small Cap = Russell 2000, Real Estate = Wilshire RESI (Float Adjusted) Index, Developed International Equity Markets = MSCI EAFE, Emerging Markets Equity = MSCI EME, World Equities = MSCI World Index, Global Bonds = Barclay’s Capital Aggregate Global Bond Index, US Investment Grade Bonds = Barclay’s Capital US Aggregate, High Yield = Merrill Lynch US HY Constrained Index, Emerging Markets Debt = JP Morgan EMBIGD, Treasury = Barclay’s Capital US Treasury Bond Index, Inflation Linked = Barclays Capital 1-10 Yrs TIPS Index, Cash = BofA Merrill Lynch US Dollar 3-Month Deposit Offered Rate Constant Maturity Index. Index returns are for illustrative purposes only and do not represent actual fund performance. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance is no guarantee of future results. • Continued economic expansion in advanced economies is creating optimism, while emerging economies sort through political, financial and social reforms. • Global equities rebounded from an early setback, reaching positive territory by quarter end. • Europe and the U.S. led with 2% gains; Japan lagged with a 6% decline. • Emerging markets continued to lag. • Global central banks have generally remained committed to providing stimulus in one form or another. • Geopolitical concerns and a further easing of inflation pressures around the globe sparked a stronger rally in sovereign debt than anticipated. • Riskier bonds led as investor demand remained firm. • Emerging-market debt and high yield gained 3.7% and 3.0%, respectively. • Since the start of the bull market in stocks five years ago, equities have outperformed the U.S. Treasury 10-year bond by almost 190 percentage points.

  10. Fixed-Income Market Review 2.72% 0.60% Source: FactSet, SEI • Treasury yields generally fell despite firming growth and continued bond-purchase tapering by the Federal Reserve (Fed). • Barclays U.S. Aggregate Index returned 1.84%. • Investor demand drove high-yield bonds and emerging-market debt to strong results. • Although we think the Fed will remain dovish, we expect some firming of bond yields toward 3.25%—a more normal relationship vis-à-vis expected inflation. • Nominal yields (U.S. Treasury yields) are still overvalued. • The implied inflation rate within nominal yields is reasonable. • However, real yields (Treasury inflation-protected securities yields) appear artificially low due to the Fed’s quantitative easing efforts (despite rising since talk of tapering easing). • Given this, duration positioning is generally shorter than the benchmark. • With current spread levels tighter, security selection will play a larger role in driving performance. • Overweights to the spread sectors were maintained but remain actively managed based on spread levels. • Non-agency commercial and residential mortgage-backed securities, as well as corporate debt of financials, are preferred.

  11. Equity Market Review Index returns are for illustrative purposes only and do not represent actual fund performance. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results. • Global equity markets shook off concerns of slower growth in China and tapering by the Federal Reserve to close higher. • In the U.S., large cap outpaced small cap, and value beat growth, in terms of style. • Given the market’s ascent, U.S. equity valuations are elevated (16.5x)* but appear well within the historical norm, especially against: • The backdrop of very low interest rates. • A still-expansionary monetary policy. • Further improvement in economic growth and corporate profitability. • While earnings growth has been supportive, top-line growth is key to a more robust expansion. • Corporate earnings for S&P 500 companies posted a 9% year-over-year gain (December 2013). • The biggest risk we see is the momentum of the market becoming overextended. • Given this, we have a focus on quality-growth stocks. Source (both charts): FactSet, SEI * 12-month price-to-earnings ratio of S&P 500 Index

  12. The Outlook: An Economic Thaw But a New Cold War

  13. SEI Outlook

  14. Manager Changes

  15. Manager Changes ›First Quarter 2014

  16. Statement & Strategy Review Your Portfolio Review

  17. Statement ›Your Current Snapshot

  18. Strategy Snapshots & Multi-Style Charts Strategy Appendix

  19. SEI Representative Strategy Review • Volatility returned to global equity and fixed-income markets during the first quarter, but returns for the period overall were fairly muted. This environment was reflected in quarterly strategy returns, which were modestly positive for all strategies. • Trailing one-year performance patterns were quite different, reflecting strong gains in equity markets (especially U.S. small- and large-cap stocks), contrasted with a difficult fixed-income environment. The Short Term strategy return was marginally negative; all other strategies were in positive territory, particularly those with predominantly equity-based exposure. Performance shown is for selected Private Client strategies, net of fees. Performance assumes investment at the beginning of the period indicated and reflects all recommended reallocations and changes among the funds, including changes in investment managers and funds included in the model. Information on allocations among funds, reallocations and model changes is available upon request. Model performance shown is not meant to represent any individual client account. Model performance shown is net of fees charged by SEI, but does not reflect any fee your advisor may charge. Sources: SEI, DataMart Index returns are for illustrative purposes only and do not represent actual fund performance. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance is no guarantee of future results.

  20. SEI Representative Strategy ReviewStability-Focused Strategies Index returns are for illustrative purposes only and do not represent actual fund performance. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance is no guarantee of future results. Source: SEI, BlackRock Solutions Durations shown as of 3/31/14. Weighted average results derived from the fixed income fund components of Strategy; U.S. Bonds reflects Barclays U.S. Aggregate Bond Index • Stability-focused strategies (Short Term, Defensive, Conservative, and Moderate) are designed to reduce portfolio volatility and drawdown risk, while still seeking long-term appreciation. • The fixed-income focus is on reducing interest-rate risk and enhancing yield. • The equity focus is on capital appreciation with below-market volatility. • The U.S. Managed Volatility equity portfolio outperformed its benchmark by over 200 basis points for the quarter, and continued to show solid longer-term returns. * Values were set to zero as of March 31, 2011. The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less that their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, please call 1.800.DIAL.SEI.

  21. Stability-Focused Strategy ›PC Short Term Strategy Strategy Themes • The strategy delivered a marginally positive quarterly return, reflecting stabilization of shorter duration U.S. fixed-income securities and the continuation of near-zero cash yields. • Quarterly performance was aided by a slight gain in the Multi-Asset Capital Stability fund, and marginally positive returns in Short Duration Government and Real Return. • Trailing 1-year returns remained marginally negative, driven primarily by declines in Real Return and Multi-Asset Capital Stability. Both funds were negatively affected by the mid-2013 volatility in global fixed-income markets, and weakness in Treasury Inflation-Protected Securities (TIPS). Sources: SEI, FactSet. Returns are net of fees, selected Private Client Strategies. The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less that their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, please call 1.800.DIAL.SEI. Asset allocation as of 3/31/2014 and subject to change.

  22. Stability-Focused Strategy ›PC Short Term Strategy Asset allocation as of 3/31/14 and subject to change. Securities as of 2/28/14 and subject to change.

  23. Stability-Focused Strategy ›PC Defensive Strategy Manager changes during the quarter: - QS Investors added to Multi-Asset Inflation Managed Fund Highlight: U.S. Fixed Income Three of SEI’s stability-focused strategies employ the U.S. Fixed Income fund. The fund’s first-quarter gain of nearly 2% had a positive impact on strategy performance. Longer-term absolute and relative returns have also been favorable. The fund remains positioned in anticipation of a gradual trending toward higher interest rates, with a somewhat shorter duration than the benchmark. SEI believes that spread sectors generally offer the best opportunities within the fixed-income universe, and that actively managing these exposures is vital, given the key role that security selection is expected to play in driving performance. Strategy Themes • During the quarter, the portfolio benefited most from its equity, high yield, and intermediate-term fixed-income exposure. In particular, U.S. and Global Managed Volatility, High Yield, and Multi-Asset Income were the strongest performers. Short-Duration Government and funds offering TIPS exposure lagged but still generated marginally positive returns. • For the trailing 1-year period, the strategy’s diversified approach also proved advantageous, as its equity (U.S. and Global Managed Volatility), high yield, and diversified income (Multi-Asset Income) components served to offset weakness within fixed income (particularly Treasury Inflation-Protected Securities, or TIPS) and commodities. Sources: SEI, FactSet. Returns are net of fees, selected Private Client Strategies. The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less that their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, please call 1.800.DIAL.SEI. Asset allocation as of 3/31/2014 and subject to change.

  24. Stability-Focused Strategy ›PC Defensive Strategy Asset allocation as of 3/31/14 and subject to change. Securities as of 2/28/14 and subject to change.

  25. Defensive Strategy ›Asset Allocation Changes Allocations were primarily modified to: Shorten duration — As a tapering of the Fed’s quantitative easing program comes to fruition, a shorter-duration profile across the strategies is sought to aid in mitigating the impact of a rising interest rate environment. • Implementation primarily involved an increase to the Short-Duration Government Fund and decreases to the Real Return Fund and U.S. Fixed Income Fund.

  26. Stability-Focused Strategy ›PC Conservative Strategy Manager changes during the quarter: - QS Investors added to Multi-Asset Inflation Managed Fund Highlight: U.S. Fixed Income Three of SEI’s stability-focused strategies employ the U.S. Fixed Income fund. The fund’s first-quarter gain of nearly 2% had a positive impact on strategy performance. Longer-term absolute and relative returns have also been favorable. The fund remains positioned in anticipation of a gradual trending toward higher interest rates, with a somewhat shorter duration than the benchmark. SEI believes that spread sectors generally offer the best opportunities within the fixed-income universe, and that actively managing these exposures is vital, given the key role that security selection is expected to play in driving performance. Strategy Themes • During the quarter, the portfolio benefited most from its equity, high yield, and intermediate-term fixed-income exposure. In particular, U.S. and Global Managed Volatility, High Yield, and Multi-Asset Income were the strongest performers. Short-duration fixed-income funds and those offering TIPS exposure lagged but still generated marginally positive returns. • For the trailing 1-year period, the strategy’s diversified approach also proved advantageous, as its equity (U.S. and Global Managed Volatility), high yield, diversified income (Multi-Asset Income), and alternatives components served to offset weakness within fixed income (particularly Treasury Inflation-Protected Securities, or TIPS) and commodities. Sources: SEI, FactSet. Returns are net of fees, selected Private Client Strategies. The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less that their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, please call 1.800.DIAL.SEI. Asset allocation as of 3/31/2014 and subject to change.

  27. Stability-Focused Strategy ›PC Conservative Strategy Asset allocation as of 3/31/14 and subject to change. Securities as of 2/28/14 and subject to change.

  28. Conservative Strategy ›Asset Allocation Changes Allocations were primarily modified to: Shorten duration — As a tapering of the Fed’s quantitative easing program comes to fruition, a shorter-duration profile across the strategies is sought to aid in mitigating the impact of a rising interest rate environment. • Implementation primarily involved an increase to the Short-Duration Government Fund and decreases to the Real Return Fund and U.S. Fixed Income Fund. Increase emerging-market debt exposure — We believe the improved quality in the asset class makes for a more suitable investment across a broader range of risk-tolerance levels. In addition, with its diversified exposure to a basket of emerging-market currencies, the asset class is less exposed to the movements in U.S. interest rates, providing a decoupled source of yield. • Implementation primarily involves the increase of the Emerging Market Debt Fund, with a decrease to developed U.S. fixed income or equity depending on the risk level of the strategy.

  29. Stability-Focused Strategy ›PC Moderate Strategy Manager changes during the quarter: - QS Investors added to Multi-Asset Inflation Managed Fund Highlight: U.S. Fixed Income Three of SEI’s stability-focused strategies employ the U.S. Fixed Income fund. The fund’s first-quarter gain of nearly 2% had a positive impact on strategy performance. Longer-term absolute and relative returns have also been favorable. The fund remains positioned in anticipation of a gradual trending toward higher interest rates, with a somewhat shorter duration than the benchmark. SEI believes that spread sectors generally offer the best opportunities within the fixed-income universe, and that actively managing these exposures is vital, given the key role that security selection is expected to play in driving performance. Strategy Themes • During the quarter, the portfolio benefited from its equity, high yield, and risk parity exposure. In particular, U.S. and Global Managed Volatility, Multi-Asset Accumulation, and High Yield were the strongest performers. Short-Duration Government and funds offering TIPS exposure lagged but still generated marginally positive returns. • For the trailing 1-year period, the strategy’s diversified approach also proved somewhat advantageous, as its equity (Large Cap, U.S. and Global Managed Volatility), high yield, and alternative components served to offset weakness within fixed income (especially emerging markets debt and Treasury Inflation-Protected Securities, or TIPS) and commodities. Sources: SEI, FactSet. Returns are net of fees, selected Private Client Strategies. The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less that their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, please call 1.800.DIAL.SEI. Asset allocation as of 3/31/2014 and subject to change.

  30. Stability-Focused Strategy ›PC Moderate Strategy Asset allocation as of 3/31/14 and subject to change. Securities as of 2/28/14 and subject to change.

  31. Moderate Strategy ›Asset Allocation Changes Allocations were primarily modified to: Add Multi-Asset Income — Due to its differentiated approach from traditional bonds in sourcing income, we expect that adding the fund will reduce overall sensitivity (beta) to fixed income within the Strategies, effectively minimizing an investor’s exposure to some of the uncertainty surrounding the fixed-income market. • Implementation primarily involved an increase to the Multi-Asset Income Fund and decreases to a diversified mix of fixed income and equity.

  32. Multi-Asset Income Fund • The Multi-Asset Income Fund is now held in five of the non-Tax-Managed Private Client strategies, following the recent strategic allocation changes. • The fund utilizes a differentiated, non-benchmark-constrained, “go-anywhere” tactical approach, investing in a broad range of income-producing securities. In addition to opportunistically managing credit and liquidity risk, the fund also seeks to actively manage interest-rate risk. • In a frequently challenging environment for fixed-income investing, the fund has delivered positive returns for the first quarter, trailing year, and since-inception (4/9/2012) period of 2.7%, 5.2%, and 9.7% (annualized), respectively. • The fund’s performance has held up particularly well on days in which interest rates have risen most and fixed-income markets have been stressed. The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less that their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, please call 1.800.DIAL.SEI. As of 3/31/2014 and subject to change.

  33. Growth-Focused Strategy ›PC Core Market Strategy 1% Manager changes during the quarter: - QS Investors added to Multi-Asset Inflation Managed Fund Highlights: Large Cap and Small Cap SEI’s growth-focused strategies employ both the Large Cap and Small Cap funds. The strategies benefited from each fund’s positive 1st quarter and strong trailing 1-year returns. During the quarter, relative performance for each fund was driven mainly by stock selection. Large Cap continues to position away from deep cyclical and defensive sectors in favor of quality growth; while Small Cap remains mildly pro-cyclical with a tilt towards quality companies and attractive valuations. Strategy Themes • The strategy benefited from its diversified approach during the first quarter, as performance was driven by solid gains in Multi-Asset Accumulation, High Yield, and Emerging Markets Debt. Emerging Markets Equity was the only fund within the model to experience a quarterly decline. • Trailing 1-year strategy performance benefited from strong returns in Small Cap, Large Cap, and International Equity; but was constrained by weakness in Emerging Markets Debt and Equity, Multi-Asset Inflation, and U.S. Fixed Income. Sources: SEI, FactSet. Returns are net of fees, selected Private Client Strategies. The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less that their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, please call 1.800.DIAL.SEI. Asset allocation as of 3/31/2014 and subject to change.

  34. Growth-Focused Strategy ›PC Core Market Strategy Asset allocation as of 3/31/14 and subject to change. Securities as of 2/28/14 and subject to change.

  35. Core Market Strategy ›Asset Allocation Changes Allocations were primarily modified to: Add Multi-Asset Income — Due to its differentiated approach from traditional bonds in sourcing income, we expect that adding the fund will reduce overall sensitivity (beta) to fixed income within the Strategies, effectively minimizing an investor’s exposure to some of the uncertainty surrounding the fixed-income market. • Implementation primarily involved an increase to the Multi-Asset Income Fund and decreases to a diversified mix of fixed income and equity. Increase emerging-market debt exposure — We believe the improved quality in the asset class makes for a more suitable investment across a broader range of risk-tolerance levels. In addition, with its diversified exposure to a basket of emerging-market currencies, the asset class is less exposed to the movements in U.S. interest rates, providing a decoupled source of yield. • Implementation primarily involves the increase of the Emerging Market Debt Fund, with a decrease to developed U.S. fixed income or equity depending on the risk level of the strategy.

  36. Growth-Focused Strategy ›PC Market Growth Strategy 1% Manager changes during the quarter: - QS Investors added to Multi-Asset Inflation Managed Fund Highlights: Large Cap and Small Cap SEI’s growth-focused strategies employ both the Large Cap and Small Cap funds. The strategies benefited from each fund’s positive 1st quarter and strong trailing 1-year returns. During the quarter, relative performance for each fund was driven mainly by stock selection. Large Cap continues to position away from deep cyclical and defensive sectors in favor of quality growth; while Small Cap remains mildly pro-cyclical with a tilt towards quality companies and attractive valuations. Strategy Themes • The strategy benefited from its diversified approach during the first quarter, as performance was driven by solid gains in Multi-Asset Accumulation, High Yield, and Emerging Markets Debt. Emerging Markets Equity was the only fund within the model to experience a quarterly decline. • Trailing 1-year strategy performance benefited from strong returns in Small Cap, Large Cap, and International Equity; but was constrained by weakness in Emerging Markets Debt and Equity, Multi-Asset Inflation, and U.S. Fixed Income. Sources: SEI, FactSet. Returns are net of fees, selected Private Client Strategies. The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less that their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, please call 1.800.DIAL.SEI. Asset allocation as of 3/31/2014 and subject to change.

  37. Growth-Focused Strategy ›PC Market Growth Strategy Asset allocation as of 3/31/14 and subject to change. Securities as of 2/28/14 and subject to change.

  38. Market Growth Strategy ›Asset Allocation Changes Allocations were primarily modified to: Add Multi-Asset Income — Due to its differentiated approach from traditional bonds in sourcing income, we expect that adding the fund will reduce overall sensitivity (beta) to fixed income within the Strategies, effectively minimizing an investor’s exposure to some of the uncertainty surrounding the fixed-income market. • Implementation primarily involved an increase to the Multi-Asset Income Fund and decreases to a diversified mix of fixed income and equity.

  39. Growth-Focused Strategy ›PC Aggressive Strategy 1% Fund Highlights: Large Cap and Small Cap SEI’s growth-focused strategies employ both the Large Cap and Small Cap funds. The strategies benefited from each fund’s positive 1st quarter and strong trailing 1-year returns. During the quarter, relative performance for each fund was driven mainly by stock selection. Large Cap continues to position away from deep cyclical and defensive sectors in favor of quality growth; while Small Cap remains mildly pro-cyclical with a tilt towards quality companies and attractive valuations. Strategy Themes • The strategy benefited from its diversified approach during the first quarter, as performance was driven by solid gains in Multi-Asset Accumulation, High Yield, and Emerging Markets Debt. Emerging Markets Equity was the only fund within the model to experience a quarterly decline. • Trailing 1-year strategy performance benefited from strong returns in Small Cap, Large Cap, and International Equity; but was constrained by weakness in Emerging Markets Debt and Equity, and a marginally positive gain for Multi-Asset Accumulation. Sources: SEI, FactSet. Returns are net of fees, selected Private Client Strategies. The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less that their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, please call 1.800.DIAL.SEI. Asset allocation as of 3/31/2014 and subject to change.

  40. Growth-Focused Strategy ›PC Aggressive Strategy Asset allocation as of 3/31/14 and subject to change. Securities as of 2/28/14 and subject to change.

  41. Aggressive Strategy ›Asset Allocation Changes Allocations were primarily modified to: Increase emerging-market debt exposure — We believe the improved quality in the asset class makes for a more suitable investment across a broader range of risk-tolerance levels. In addition, with its diversified exposure to a basket of emerging-market currencies, the asset class is less exposed to the movements in U.S. interest rates, providing a decoupled source of yield. • Implementation primarily involves the increase of the Emerging Market Debt Fund, with a decrease to developed U.S. fixed income or equity depending on the risk level of the strategy. Increase emerging-market equity exposure — As the recovery in the developed market matures, we expect the growth in emerging markets to return to the long-term trend. Based on our research, we believe that an increase in emerging-market equity exposure should provide more consistent results across different economic environments, enhancing overall diversification. • Implementation primarily involved an increase to the Emerging Market Equity Fund and decrease to the Large Cap Fund.

  42. Growth-Focused Strategy ›PC Equity Strategy 1% Fund Highlights: Large Cap and Small Cap SEI’s growth-focused strategies employ both the Large Cap and Small Cap funds. The strategies benefited from each fund’s positive 1st quarter and strong trailing 1-year returns. During the quarter, relative performance for each fund was driven mainly by stock selection. Large Cap continues to position away from deep cyclical and defensive sectors in favor of quality growth; while Small Cap remains mildly pro-cyclical with a tilt towards quality companies and attractive valuations. Strategy Themes • The strategy’s first-quarter return was driven by gains in Large Cap and Small Cap. International Equity’s performance was marginally positive, while Emerging Markets Equity declined during the quarter. • Trailing 1-year strategy performance benefited from strong returns in Small Cap and Large Cap, and a more muted but still solid gain in International Equity. Emerging Markets Equity’s slight decrease over the period had a negative impact on returns. Sources: SEI, FactSet. Returns are net of fees, selected Private Client Strategies. The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less that their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, please call 1.800.DIAL.SEI. Asset allocation as of 3/31/2014 and subject to change.

  43. Growth-Focused Strategy ›PC Equity Strategy Asset allocation as of 3/31/14 and subject to change. Securities as of 2/28/14 and subject to change.

  44. Equity Strategy ›Asset Allocation Changes Allocations were primarily modified to: Increase emerging-market equity exposure — As the recovery in the developed market matures, we expect the growth in emerging markets to return to the long-term trend. Based on our research, we believe that an increase in emerging-market equity exposure should provide more consistent results across different economic environments, enhancing overall diversification. • Implementation primarily involved an increase to the Emerging Market Equity Fund and decrease to the Large Cap Fund. Increase small-cap exposure — Based on our research, an increased weight to U.S. small-cap equity providing greater diversification benefits in a global equity strategy, since small-cap equities have less exposure than U.S. large-cap equities to global market cycles. • Implementation primarily involved an increase to the Small Cap Fund and decreases to the Large Cap Fund.

  45. Multi-Asset Accumulation Fund • The Multi-Asset Accumulation Fund is held in four of the non-tax-managed Private Client strategies, with the goal of decreasing the reliance on equity beta as the primary driver of portfolio risk and return. • The fund seeks long-term growth across a variety of economic and market conditions by offering very diversified global market exposures that are balanced on the basis of volatility levels rather than capital weightings. • The fund benefited from its diversified approach during the first quarter, returning 3.5% and exceeding its blended benchmark* by nearly 200 basis points. • In contrast to calendar 2013, commodities and global fixed-income exposure had the largest positive impact on the fund’s performance, while global equities made a smaller contribution.  The fund holds a slight overweight allocation (versus its 40% strategic target) to Global Equities, on a risk-weighted basis. *60% MSCI World Equity Index (Hedged) / 40% Barclays Global Aggregate Bond Index (Hedged) Source: SEI, Factset, BlackRock. Past performance is no guarantee of future results. The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less that their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, please call 1.800.DIAL.SEI. Asset allocation as of 3/31/2014 and subject to change.

  46. Tax-Managed Models

  47. Stability-Focused Strategy › PC Tax-Managed Short Term Strategy Fund Highlight: Short Duration Municipal All four of SEI’s tax-managed stability-focused strategies employ the Short Duration Municipal fund. The fund achieved slightly positive returns for both the first quarter and the trailing one-year period; consistent with its focus on capital preservation, the fund has never experienced a calendar year decline since its November 2003 inception. The fund holds nearly 70% of its portfolio in revenue bonds, as managers continue to see greater relative value there than in the general obligation and pre-refunded sectors.  Currently, the fund’s duration is about 25% shorter than that of its benchmark. Strategy Themes • The strategy delivered a slightly positive quarterly return, reflecting stabilization of shorter duration U.S. fixed-income securities and the continuation of near-zero cash yields. Each component fund rose during the quarter, with Intermediate-Term Municipal showing the largest gain. • Trailing 1-year returns were marginally positive, driven by a slight gain in Short Duration Municipal. The strategy was able to overcome headwinds created by the mid-2013 volatility in global fixed-income markets, as well as uncertainties about the potential future tax treatment of municipal securities and concerns about the creditworthiness of certain headline cities and regions. Sources: SEI, FactSet. Returns are net of fees, selected Private Client Strategies. The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less that their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, please call 1.800.DIAL.SEI. Asset allocation as of 3/31/2014 and subject to change.

  48. Stability-Focused ›PC Tax-Managed Short Term Strategy Asset allocation as of 3/31/14 and subject to change. Securities as of 2/28/14 and subject to change.

  49. Stability-Focused Strategy ›PC Tax-Managed Defensive Strategy Fund Highlight: Short Duration Municipal All four of SEI’s tax-managed stability-focused strategies employ the Short Duration Municipal fund. The fund achieved slightly positive returns for both the first quarter and the trailing one-year period; consistent with its focus on capital preservation, the fund has never experienced a calendar year decline since its November 2003 inception. The fund holds nearly 70% of its portfolio in revenue bonds, as managers continue to see greater relative value there than in the general obligation and pre-refunded sectors.  Currently, the fund’s duration is about 25% shorter than that of its benchmark. Strategy Themes • During the quarter, the portfolio benefited most from its high-yield and equity exposure. In particular, Tax-Advantaged Income (high-yield municipal securities and preferred stocks) and Tax-Managed Managed Volatility were the strongest performers, while Short Duration Municipal lagged. • For the trailing 1-year period, the strategy’s diversified approach also proved somewhat advantageous, as its equity component (Tax-Managed Managed Volatility) served to offset weakness in Intermediate-Term Municipal and Tax-Advantaged Income. Sources: SEI, FactSet. Returns are net of fees, selected Private Client Strategies. The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less that their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, please call 1.800.DIAL.SEI. Asset allocation as of 3/31/2014 and subject to change.

  50. Stability-Focused ›PC Tax-Managed Defensive Strategy Asset allocation as of 3/31/14 and subject to change. Securities as of 2/28/14 and subject to change.