Executive Summary

››The spectre of trade wars loomed heavily on the horizon for most of Q2, ultimately causing
the quarter to finish on a weaker note. Investor sentiment was further rattled by arguments
over immigration policy, uncertainty over the impact of rising interest rates as well as a
lack of clarity on Brexit.

››For the Stability-Focused Strategic Portfolios, dedicated short duration allocations as well
as short duration positioning cushioned the impact of rising yields. Emerging market debt
allocations detracted at the strategy level. Global managed volatility equities once again
provided meaningful risk reduction, despite lagging in global equity markets in absolute
terms. A stronger US dollar over the period also provided a headwind to unhedged, non-
US positions, relevant because the SEI strategic portfolios structurally are global in nature.

››The Stability-Focused Global Conservative Fund (USD Wealth A share class, in USD, net of
all fees) declined by -0.10% in Q2, compared to the 0.19% return of the Bloomberg Barclays
Global Aggregate USD-Hedged index over the same time period, which can be seen as a
representation of the global fixed-income market. Crucially, the fund continued to achieve
its longer-term returns with a higher level of risk-adjusted return than the above-mentioned
benchmark, consistent with their unique asset allocation design.

››SEI manages the Stability-Focused Global Conservative Fund to specific maximum
drawdown targets, which tends to result in an asset allocation structure that seeks to
deliver a smoother investment journey for investors. While this has a propensity to lower
returns somewhat, it also tends to lower the risk profile of the fund. On this basis, the
Stability-Focused Global Conservative Fund continued to deliver robust risk-adjusted
returns in 2018, comfortably outperforming the average of its peers over this period.