Goals-based investing helps investors pursue different financial objectives with a distinct focus on each specific need and allows an individual to separate investments according to purpose and timeframe. We believe these defined goals make it more reasonable that each objective will be achieved and can help an individual optimize their allocation to risk based on the time horizon.

SEI utilizes a framework that distinguishes between growth-focused and stabilityfocused approaches. Growth-focused portfolios are optimized on a traditional risk-return framework.

These portfolios tend to be appropriate for longer time horizons, non-critical or aspirational goals and other situations where an investor is willing and able to assume a risk of capital loss without specifying a maximum loss target in advance.

Stability-focused portfolios may be more appropriate for investors who prefer to specify such a target and optimize return against the drawdowns we might reasonably expect in a less favorable market environment. The resulting portfolios have maximum drawdown targets specified in advance. However, realized drawdowns may exceed these levels. We monitor the portfolios and employ a dynamic risk-mitigation process when actual drawdowns begin to approach those target maximums.

There are four key metrics we use to measure and monitor portfolio performance:

• Drawdown budget: the maximum drawdown target specified for each portfolio
• Current drawdown: the percentage difference between the portfolio’s historic
• peak and current values
• Drawdown cushion: the percentage difference between current drawdown and
• maximum drawdown budget
• Current drawdown risk: the most up-to-date drawdown risk estimates for each
• portfolio under especially poor market conditions

The portfolios are monitored on an ongoing basis. Qualitative discussions begin once a portfolio has consumed 30%-to-50% of its drawdown risk budget. From there, we:

• Review current capital market assumptions (CMAs) for the underlying asset classes; if appropriate, CMAs are adjusted and the portfolio allocation is recalibrated.
• Adjust current allocations to bring current drawdown risk in line with the current drawdown cushion.
• Add risk back to the portfolio until the drawdown cushion fully recovers, at which point the strategy would once again be fully invested and rebalanced to its targeted allocations.

Current Status

The steady overall behavior of financial markets since the global financial crisis has kept stability-focused drawdown cushions fairly wide. Historically, this hasn’t always been the case. Monitoring stability-focused drawdowns and standing ready to mitigate the risk of future losses is just one more way that SEI can help investors stay on course to pursue their investing goals.

Important Information

Past performance is not an indicator of future performance.

Investments in SEI Funds are generally medium- to long-term investments. The value of an investment and any income from it can go down as well as up. Investors may get back less than the original amount invested. Additionally, this investment may not be suitable for everyone. If you should have any doubt whether it is suitable for you, you should obtain expert advice.

No offer of any security is made hereby. Recipients of this information who intend to apply for shares in any SEI Fund are reminded that any such application may be made solely on the basis of the information contained in the Prospectus. This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding the funds or any stock in particular, nor should it be construed as a recommendation to purchase or sell a security, including futures contracts.

In addition to the normal risks associated with equity investing, international investments may involve risk of capital loss from unfavourable fluctuation in currency values, from differences in generally accepted accounting principles or from economic or political instability in other nations. Bonds and bond funds are subject to interest rate risk and will decline in value as interest rates rise. High yield bonds involve greater risks of default or downgrade and are more volatile than investment grade securities, due to the speculative nature of their investments. Narrowly focused investments and smaller companies typically exhibit higher volatility. SEI Funds may use derivative instruments such as futures, forwards, options, swaps, contracts for differences, credit derivatives, caps, floors and currency forward contracts. These instruments may be used for hedging purposes and/or investment purposes.

While considerable care has been taken to ensure the information contained within this document is accurate and up-to-date, no warranty is given as to the accuracy or completeness of any information and no liability is accepted for any errors or omissions in such information or any action taken on the basis of this information.

This information is issued by SEI Investments (Europe) Limited, 1st Floor, Alphabeta, 14-18 Finsbury Square, London EC2A 1BR which is authorised and regulated by the Financial Conduct Authority. Please refer to our latest Full Prospectus (which includes information in relation to the use of derivatives and the risks associated with the use of derivative instruments), Key Investor Information Documents and latest Annual or Semi-Annual Reports for more information on our funds. This information can be obtained by contacting your Financial Adviser or using the contact details shown above.