Who is SEI?
SEI is a publicly traded (NASDAQ:SEIC), leading global provider of investment management services. As of December 31, 2016, through its subsidiaries and partnerships in which the company has a significant interest, SEI manages $281 billion in assets. SEI’s Institutional Group is one of the first and largest global providers of outsourced investment management services. The company delivers integrated solutions to more than 450 institutional clients in 13 countries.
Founded in 1968, SEI is a financially sound organization with more than $696 million of unrestricted cash on hand and having repurchased more than $1 billion in SEI stock since January 2008. The company employs over 3,200 people worldwide and is headquartered on a 90-acre campus in Oaks, Pa., outside of Center City, Philadelphia. SEI operates principal offices in Toronto, London, Dublin, The Netherlands, Hong Kong, and South Africa.
How is SEI different from the previous provider?
SEI employs a multi-manager program using investment manager selection as a seamless part of the process. SEI’s investment program brings together manager research, selection, monitoring and change within a discretionary framework. The major difference, however, is that SEI – within the context of investment policies set by the DCF Board and Investment Committee – has taken on full discretion and accountability for the selection, oversight and replacement of the money managers investing the DCF’s assets. In addition, SEI’s economies of scale and buying power provide the DCF with access to money managers that otherwise might not have been available.
How does this change impact the DCF’s investments?
In the short term, this transition has no impact on the DCF’s investments. On March 1, 2017, all money was transferred to an SEI portfolio that mirrors the portfolio we had in place with our prior consultant. Fundholders will continue to receive quarterly statements from the DCF and access fund activity through our website.
In the longer term, fundholders also will have the opportunity to choose how money in their charitable fund will be invested. The DCF team and SEI are working now to develop new investment products to serve fundholders’ different goals and levels of risk tolerance. We expect to finalize and share details this summer.
How does this change impact the DCF’s donors?
The goal in making this change is to ultimately provide the DCF’s fundholders and future donors with a variety of choices when it comes to the investment of the funds they have donated. The plan is to design a handful of different pools based on different goals and overall levels of risk tolerance. Current fundholders soon will have the option of staying with the primary endowment pool, or choosing another pool that best represents their preferences when it comes to risk.
How will the change affect my fees?
No fee change is anticipated for the current endowment pool. As additional pools are created, fees will be established and clearly explained.
Does this change the role of the DCF’s Investment Committee?
SEI will act as an extension of the DCF’s Investment Committee, leveraging the resources, best practices and strategic thinking already in place. Because SEI will take on full fiduciary accountability for the oversight of money managers, the DCF’s Investment Committee can focus on high-level, strategic questions such as asset allocation. This allows for the committee to play a more strategic role in supporting the DCF’s mission.
What is a multi-manager investment program?
SEI’s multi-manager program utilizes multiple, best-in-breed money managers within a single asset class. These managers often have different styles and invest in different sectors. This concept is based on the belief that manager performance can vary within an asset class and based on style. A multi-manager program reduces the overall risk by diversifying across multiple managers without sacrificing returns.
What other community foundations work with SEI?
SEI works with more than 160 nonprofit organizations, including 25 community foundations. Among those community foundation clients are Community Foundation of New Jersey, Miami Community Foundation, Harris County (IN) Community Foundation, The Horizon Foundation of Howard County (MD), Inc., Central Valley (CA) Community Foundation and Jewish Community Foundation of Southern Arizona.
What is SEI’s role in charitable work?
SEI employees have passion for philanthropy, social responsibility and diversity and prove it through employee-led, company sponsored initiatives, like the SEI Cares Fund, which includes grant making, volunteer opportunities and awareness events. Last year, SEI employees collectively contributed more than 8,000 hours of services in volunteer activities and the SEI Cares Fund donated $220,000 to 16 partnered organizations. Through participation in the PA Educational Improvement Tax Credit program, SEI Cares granted $156,000 to partnered organizations focused on education. Additionally, SEI committed approximately $1.6 million in support of client-specific initiatives last year.
How can I learn more about SEI and the partnership?
If you have further questions, contact Marie Stewart, client services manager, at email@example.com, 504.5340.
Last rev. 3.7.17