SEI® today announced the launch of SEI Strategies with Capital Group®, a new lineup of model portfolios that complements its existing suite of core building block solutions for investor portfolios. The new models are comprised entirely of exchange-traded funds (ETFs), combining SEI’s disciplined and strategic approach to asset allocation and portfolio construction with Capital Group’s ETFs.
The new portfolios, offered in a unified managed account (UMA) framework, provide flexibility to combine strategies and manage both geographic exposures and tax sensitivity, which include:
- Six SEI Strategies with Capital Group
- Six SEI U.S. Focused Strategies with Capital Group
- Six SEI Tax-Managed Strategies with Capital Group
- Six SEI U.S. Focused Tax-Managed Strategies with Capital Group
Across the industry, the demand for model portfolios continues to grow, with asset managers and third-party strategist model providers boasting a 21.4% asset growth rate in 2023.
Among other features, the 12 new tax-managed models are uniquely designed to feature ETFs’ tax efficiency benefits, exposure to municipal bond ETFs for generation of tax-free income, systematic and opportunistic tax-loss harvesting, and accompanying “Estimated Taxes Saved” report—all as a part of SEI’s robust commitment to tax-managed investment management.
Erich Holland, Head of Client Experience for SEI’s Advisor business, said:
“The SEI Strategies with Capital Group combine the synergy of SEI’s rigorous and disciplined investment approach with the Capital System™, Capital Group’s multi-manager approach to investing, to provide a diverse range of portfolio building blocks. Together, we leverage our shared tenured investment experience, market leadership, and innovative spirit to help investors reach their goals.
“Personal taxes are the highest single expense for households with income greater than $200,000. Investors want the benefits of tax optimization, and advisors want to expand on—and further demonstrate—the value they can deliver to their clients, while maximizing time and cost efficiency. The full suite of ETFs integrated with SEI’s technology for tax management is an exemplification of our client-first mindset.”
Peter Thatch, Head of the Strategic Relationship Group for Capital Group, said:
“Capital Group offers 22 active ETFs in the U.S., constructed at the request of our clients that could best be implemented into the core of their client portfolios, knowing they would be used by home offices and in financial professionals’ models portfolios. The partnership with SEI Strategies will help to meet the needs of financial professionals who are increasingly focusing on the broader wealth needs of their clients and using these types of efficient asset allocation tools in the active ETF form.”
