This FAQ is designed to help provide an update on the current Russia/Ukraine crisis and portfolio exposure to Russian-related securities.
 

Q. Do I have any exposure to Russian-related securities remaining in my portfolio?

A. In order to ensure that our response is clear, we need to define several terms, including:

• Russian-related securities, as defined by SEI (and aligned with the definitions used by major index providers and other data providers) are:
   

         i) Securities listed on an exchange domiciled in Russia, Ukraine or Belarus;

         ii) Securities listed on an exchange outside of these countries but that derive an extensive portion of their business from Russian, Ukrainian or Belorussian operations;

         iii) Debt issued by Russian, Ukrainian or Belorussian public or private entities with the exception of Ukrainian hard-currency bonds (U.S. dollar and euro) in our emerging-market debt portfolios. We have lifted the restriction on the purchase of these bonds. This change will permit hard-currency managers Marathon and Stone Harbor and blended debt manager Neuberger Berman to purchase Ukraine hard-currency bonds.

• Russian-related holdings are Russian-related stocks or bonds owned by an SEI Fund, regardless of value.
   
• Russian-related exposure refers to the value of the Russian-related holdings stated as a percentage of the value of the Fund as a whole.
   

The value of Russian securities steeply declined in the aftermath of the invasion as the market absorbed domestic and international sanctions against Russia, actions by index providers, and suspension of trading of certain Russian securities.

Any portfolio that had holdings in Russian-related equity securities when the Russian financial markets closed still owns those holdings. However, in terms of exposure, most of those holdings currently have little or no value. If your portfolio includes Russian-related equity securities that are all valued at $0, you have Russian-related holdings but your current exposure is zero. This can be seen clearly in the holdings chart where columns show 0 exposure.

It is important to keep in mind that if and when Russian financial markets reopen, equity securities that are currently valued at zero could rise in price. By regulation, security valuations are required to be based on the fair market value (FMV) of securities, and cannot be based on political views or an intention to avoid exposure to Russian-related securities. Therefore, if the FMV of Russian securities increases, then a portfolio that includes Russian holdings will also see its value rise in tandem. The portfolio’s corresponding exposure to Russia will also increase. In other words, the Russian exposure in the portfolio could increase even though there have been no additional purchases of Russian-related securities.
 

Q. Which SEI Funds have holdings in Russia-related securities and what is the current exposure (value) of those holdings in those portfolios?

A. The chart below highlights exposure at the end of April and end of May. The Funds that had Russian-related equity holdings at the end of February still have them at the end of May. As previously noted, a portfolio holding Russian-related securities that are all valued at $0, still has Russian-related holdings but the current exposure is zero because they have no value. This can be seen clearly in the chart where columns show 0 exposure.

Note: Note: If exposure increased from March to April, this is due to an increase in value of existing holdings and not the purchase of additional securities.

NOTE: The negative exposures are a result of currency forwards that were included in the final calculation.

The SEI Global Assets Fund Plc, SEI Global Investments Fund Plc, and SEI Global Master Fund Plc (the ”SEI Funds”) are structured as open-ended collective investment schemes and are authorised in Ireland by the Central Bank as a UCITS pursuant to the UCITS regulations. 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. SEI Funds may use derivative instruments which may be used for hedging purposes and/or investment purposes. 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. Please refer to our latest Prospectus (which includes information in relation to the use of derivatives and the risks associated with the use of derivative instruments), Key Investor Information Document, Summary of UCITS Shareholder rights (which includes a summary of the rights that shareholders of our funds have) and the latest Annual or Semi-Annual Reports for more information on our funds, which can be located at Fund Documents. And you should read the terms and conditions contained in the Prospectus (including the risk factors) before making any investment decision.

Important information

Information issued in the UK 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. Investments in SEI Funds are generally medium- to long-term investments.

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