Blackrock Capital Management, Inc. (Blackrock) has been added to the SGMF U.S. Liquid Assets Fund, as at 15 April 2016.

SEI has decided to remove BofA Advisors, LLC (BofA) from this fund due to BofA’s strategic decision to exit the money market management business.

Addition of BlackRock: Why We Chose Them

• Collaborative portfolio construction: Blackrock’s portfolio construction process is tightly integrated with their investment process, as portfolio managers and credit analysts are effectively joined at the hip when building portfolios.
• Robust risk management and compliance processes: The Risk & Quantitative Analysis Group provides independent top-down and bottom-up oversight and partners with Blackrock’s investment teams to ensure that risks in the portfolios are consistent with the team’s current investment themes. Blackrock’s proprietary compliance system confirms that portfolios are managed according to their stated guidelines and applicable regulatory requirements.

What They Do

Blackrock seeks to invest in high-quality securities rather than chasing higher yields, and its cash management style is designed to meet investment objectives of capital preservation, liquidity and yield—in that order. Careful analysis of credit, interest-rate trends and relative-value opportunities support this philosophy in an effort to consistently produce exceptional investment returns on a risk-adjusted basis.

How They Do It

Blackrock believes short-term assets are most effectively managed on the basis of security selection, credit analysis and duration, yield-curve and sector positioning. Its Cash Management Credit Committee works hand-in-hand with credit analysts and portfolio managers on both the taxable and tax-exempt sides. All securities purchased are selected from the Committee’s continuously-reviewed approved issuer list. Its rigorous investment process aims to create “false positives” in managing the list, as evidenced by the investment team’s long history of removing issuers ahead of downgrades.

Blackrock performs daily stress testing of the portfolio to measure the potential risks associated with hypothetical events, such as a change in short-term interest rates, an increase in shareholder redemptions or a downgrade of (or default on) portfolio securities. Blackrock’s Risk & Quantitative Analysis Group reviews stress test results and any recommended adjustments with Blackrock’s Portfolio Management Group at least monthly, or more frequently if needed.

About BlackRock

Blackrock was founded in 1988 on the belief that investment risks needed to be better understood and managed. As at 31 December 2015, Blackrock’s Cash Management business had over $489 billion in assets under management.

Glossary of Financial Terms:

• Bottom Up: Bottom-up managers focus on individual stock selection instead of the overall economic environment.
• Duration: Duration is a measure of risk in bond investing and indicates how price-sensitive a bond is to changes in interest rates. A long (overweight) duration stance indicates the portfolio duration is higher than that of the benchmark whereas a short (underweight) duration stance indicates a lower duration. Duration is measured in years and securities with longer durations are more sensitive to interest-rate changes.
• Liquidity: Liquidity refers to the ease at which a holding can be bought or sold.
• Top Down: Top-down managers focus on the overall economic environment instead of individual stock selection.
• Yield Curve: The yield curve represents differences in yields across a range of maturities of bonds of the same issuer or credit rating (likelihood of default). A steeper yield curve represents a greater difference between the yields. A flatter curve indicates the yields are closer together. 

When a manager is removed from the manager line-up in one of SEI's Funds, a letter is sent to the affected manager announcing this action. In order to protect market-sensitive information, SEI will not communicate a manager removal to clients until all trades have been finalised. This may mean that there is a delay between SEI legally notifying a manager of their removal from the line-up of a Fund and a manager change memo being issued to our clients. In the meantime, all SEI deliverables and communications will continue to show this manager in the line-up of the Fund until the next regularly scheduled update. Communications will not be retroactively amended. The "effective date" date quoted in the manager change memo reflects the effective date quoted in the termination letter sent to the manager by SEI.

IMPORTANT NOTE: The opinions and views contained in this document are solely those of SEI and are subject to change; descriptions relating to organisational structure, teams, and investment processes herein may differ significantly from those prescribed by underlying managers regarding their own investment houses and investments.

Past performance is not a guarantee 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 not get back 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 Advisor or using the contact details shown above.