Despite having been in the business for 40-plus years and advising on more
than US$750 billion, SEI is not exactly a household name. That is because
they have focused on providing investment solutions targeted mainly at
institutions. In Canada, they have a modest retail presence, and offer
several multi-manager, standalone, and portfolio solutions aimed at
This offering is a multi-manager fund that looks to find stocks the
management teams believe will be less volatile than the overall market.
There are currently two managers in the fund, each using different, but
complementary processes. The first uses a value-focused approach that looks
for stocks that are not only expected to be less volatile, but also are
viewed as cheap and out of favour, with near-term potential. The second
manager uses a model that is a balance among value, momentum, and quality
metrics. The teams don’t just look for low-volatility names, but also pay
attention to correlation between the stocks. The mix between managers is
adjusted based on the expected relative attractiveness of each style.
Top holdings as of Oct. 31 included
Johnson & Johnson (NYSE: JNJ),
Pfizer Inc. (NYSE: PFE),
Wal-Mart Stores Inc. (NYSE: WMT),
Intel Corp. (NASDAQ: INTC), and
Merck & Co. Inc. (NYSE: MRK).
Not only has this fund been one of the stronger low-volatility offerings,
it has also done very well compared with the broader global equity
category. As would be expected, volatility has been below average, and it
has shown good downside protection in a falling market.
I see this as one of the more attractive low-volatility offerings in the
global equity category. The diversified, multi-manager approach, combined
with the reasonable valuation and growth outlook leads me to favour this
offering over many of its peers.
SEI Global Managed Volatility Fund Class E
SEI Investments Canada
C (October 2017)
FundGrade A+ Award: 2016
Large Cap Value
PCA630 (front-end load)
Dave Paterson, CFA, is the Director of Research, Investment Funds for
D.A. Paterson & Associates Inc., a consulting firm specializing in providing research and due
diligence on a variety of investment products. He is also the publisher
Dave Paterson’s Top Funds Report,
offering regular commentary and in-depth analysis of Canada’s top
investment funds. He uses a unique analytical approach to identify
funds with strong, risk-adjusted returns, and regularly publishes his
insights and analyses in Fund Library.
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