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C lient Investment Review. INSERT CLIENT NAME. DATE. 4 th Quarter 2013. Agenda › Setting Goals. Follow-up From Last Meeting Financial Planning Check Up and Reconfirm Goals Global Market Review and Economic Outlook Your Portfolio Review Financial Planning Tips & Upcoming Tax Climate

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c lient investment review

Client Investment Review

INSERT CLIENT NAME

DATE

4th Quarter 2013

agenda setting goals
Agenda ›Setting Goals
  • Follow-up From Last Meeting
  • Financial Planning Check Up and Reconfirm Goals
  • Global Market Review and Economic Outlook
  • Your Portfolio Review
  • Financial Planning Tips & Upcoming Tax Climate
  • Next Steps
our plan my commitment as your financial advisor
Our Plan ›My Commitment as Your Financial Advisor
  • Better understanding your needs and goals.
  • Helping you avoid emotion-driven mistakes.
  • Helping you better understand the markets.
  • Providing options and explaining the trade-offs of each.
  • Being available to consult with you in all markets.
  • Providing access to your investments 24/7 through personal contact and technology.
  • Continuous monitoring and quarterly rebalancing of your accounts.
  • Keeping you up-to-date on your concerns and adjusting your investment strategies to help you meet your goals.
  • My goal is to help you manage risk and achieve consistent returns that will keep you on path to your goals.
follow up from previous meeting

Follow Up from Previous Meeting

Reconnecting on Your Goals

financial check up a holistic view
Financial Check Up ›A Holistic View
  • How are you and your family doing? How is your health?
  • How is your cash flow?
  • Do you have any anticipated changes to your investment plan, estate plan or insurance coverage?
  • Have there been any changes to your lifestyle or circumstances?
  • What are your plans for the next three to six months?
  • What are your top concerns for this year? What keeps you up at night?
your goals ongoing monitor and review
Your Goals ›Ongoing Monitor and Review

Identify your goals and resources

Monitor investment strategies & progress to goals on an on-going basis

Identify the appropriate investment strategies to meet your goals

Implement the Goals-Based investment solution

Evaluate and confirm the proposed investment solution designed to meet your goals

.

diversification asset class returns
Diversification ›Asset Class Returns
  • Individual asset classes go in and out of favor over time. Harnessing proper diversification can enhance returns and help to cushion against volatility.
  • This graphic illustrates why investors diversify and the potential damages of market timing.
  • As you can see, no single asset class remained at the top for two consecutive years, and in fact often trailed the market in succeeding years.

See appendix for index definitions. Index returns are for illustrative purposes only and do not represent actual fund performance. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results.

Source: lbbotson Associates. This material has been obtained from sources generally considered reliable. No guarantee can be made as to its accuracy.

Not intended to represent the performance of any particular investment. Indices are unmanaged and one cannot invest directly in an index.

economic review

Economic Review

Economic & Market Insights

global market review
Global market review

Source: SEI,. Returns in US dollars. Large Cap = Russell 1000, Small Cap = Russell 2000, Real Estate = Wilshire RESI (Float Adjusted) Index, Developed International Equity Markets = MSCI EAFE, Emerging Markets Equity = MSCI EME, World Equities = MSCI World Index, Global Bonds = Barclay’s Capital Aggregate Global Bond Index, US Investment Grade Bonds = Barclay’s Capital US Aggregate, High Yield = Merrill Lynch US HY Constrained Index, Emerging Markets Debt = JP Morgan EMBIGD, Treasury = Barclay’s Capital US Treasury Bond Index, Inflation Linked = Barclays Capital 1-10 Yrs TIPS Index, Cash = BoA ML USD LIBOR 3M. Index returns are for illustrative purposes only and do not represent actual fund performance. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance is no guarantee of future results.

  • Global economic activity continues to progress at a moderate pace, with data supporting an optimistic outlook for developed market growth.
  • Global central bank policies remained accommodative through the close of the year.
  • Investors fled from fixed income to equities as 2013 progressed, leading to double-digit gains in most world equity markets for the year.
  • Developed equities outpaced emerging markets, with small- cap stocks outpacing large-cap stocks; U.S. equities led.
  • Emerging-markets equity struggled for the full year, but rebounded in the second half of 2013.
  • Fixed-income market were volatile, with global yields increasing on evolving central bank policies.
  • For the first time since 2005, global bonds posted negative yearly returns; U.S. bonds saw their first negative year since 1999.
  • High-yield bonds were notably strong, while emerging market debt struggled.
fixed income market review
Fixed-income market review

Q3 high of 3.00%

  • Beginning in May, Fed taper concerns weighed on bonds, with yields rising in a dramatic (choppy) fashion.
    • The Fed ultimately gave guidance of a $10 billion monthly reduction beginning in January 2014; however, the exact taper timeline is unknown and will be economic data dependent.
    • Interest rate policy is anticipated to remain unchanged for the foreseeable future, barring unforseen events.
  • Aggressive global monetary actions should remain the over-arching theme of 2014 for most countries.
  • Such a policy prescription should ease upward pressure on bond yields that might otherwise occur as economies improve.
  • SEI anticipates muted returns in 2014 as interest rates rise. Income will be the largest contributor to returns.
  • The bond market challenges in 2013 aided the relative attractiveness of some sectors.
  • In general, our investment-grade offerings favor select corporate exposure, agency mortgage-backed securities and high-yield, where applicable.

Source (Top Chart): FactSet, SEI; (Bottom Chart): Barclays Live. Yields are stated as yield to maturity; the indices used for each sector are U.S. Bond Market (Barclays U.S. Aggregate Index), U.S. Treasurys (Barclays U.S. Treasury Index), corporate bonds (Barclays U.S. Corporate Investment Grade , agency MBS (Barclays MBS Index), high yield (Barclays U.S. High Yield Index ) and emerging market debt (Barclays EM USD Aggregate Index).

equity market review
Equity market review

P/E 16x

P/E 15x

  • 2013 was an even stronger year for developed-world stock markets than most anticipated; there was not one serious price correction.
    • S&P 500 Index returned 32.39% in 2013.
  • Price-to-earnings ratios are elevated, but have not risen to levels that are unreasonable, especially given the backdrop of low inflation and bond yields.
  • Further market expansion is possible as investor flows into equities turned positive only last year; but a robust market will most likely hinge on continued growth in corporate earnings.
  • Sector leadership shifted in May with potential Fed tapering and higher interest rates:
    • Early 2013 was led by defensive sectors as investors eased into equities via “more safe” exposures despite high valuations.
    • Leadership shifted on increased confidence in economic growth, supported by Fed taper comments; investors favored areas offering higher growth.
  • SEI’s equity offerings were generally positioned with a pro-cyclical bias
    • Our managers benefited primarily from stock selection expertise, focusing on quality business with the ability to gain market share.

Source (both charts): FactSet, SEI; P/E is trailing 12-month price-to-earnings ratio

Index returns are for illustrative purposes only and do not represent actual fund performance.

Index performance returns do not reflect any management fees, transaction costs or expenses.

Indexes are unmanaged and one cannot invest directly in an index. Past performance does

not guarantee future results..

the outlook 2014
The Outlook: 2014
  • The bad news
    • Although Congressional debates over fiscal policy have temporarily subsided, debt ceiling issues still need to be resolved.
    • Despite improving business and consumer sentiment, European economies remain stressed and mired in a slow-growth/ recessionary funk.
    • Corporate profit margins are at levels that are historically high and potentially unsustainable.
    • The strong equity rally has made valuations more susceptible to disappointing earnings and forward guidance.
    • The long-lived secular bull market in bonds appears to have drawn to a close.
    • Any escalation of geopolitical conflict could add to investor uncertainty.

The good news

  • Developed-market equities have shown impressive resilience in the face of impediments such as the Federal Reserve’s evolving taper policies, geopolitical concerns, and government policy uncertainty.
  • The U.S. economy continues on a slow but steady expansionary path.
  • Markets seemed to respond well to the Fed’s announced taper plans and its stated intent to keep short-term interest rates low.
  • Inflation remains fairly subdued despite the extraordinary expansion of the monetary base.
  • After struggling earlier in the year, emerging market economies appear to be showing early signs of recovery.
  • China growth concerns have eased.
sei s asset allocation outlook
SEI’s Asset Allocation Outlook
  • SEI believes that the global economic recovery will continue, with potential to gain momentum on increased consumer demand and a lessening fiscal drag.
  • We expect interest rates to gradually trend higher, creating a muted total return environment for investment-grade bonds.
  • Corporate credit fundamentals remain strong, but event risk is rising; financials continue to offer value.
  • We remain constructive on high-yield bonds given low default rates, and on non-agency mortgage-backed securities in light of improving housing markets and credit availability.
  • Equities appear attractive relative to bonds. Further market expansion in equities is possible as investor money flows into equities. Corporate earnings growth, however, will be a key factor in determining market strength.
  • An environment of rising rates and accelerating growth would likely favor growth, quality, and momentum.
  • Emerging markets has most of the cheap pockets across global equities today.
your portfolio review

Your Portfolio Review

Statement & Strategy Review

strategy appendix

Strategy Appendix

Private Client Strategy Snapshots & Multi-Style Charts

sei representative strategy review
SEI Representative Strategy Review
  • Strength in global equity markets, particularly U.S. large- and small-cap stocks, was evident in the 4th quarter strategy returns, as strategies with greater equity exposure generated higher returns.
  • Year-to-date performance patterns were similar, reflecting strong gains in equity markets (especially U.S. small- and large-cap stocks), contrasted with a volatile fixed-income environment. The Short Term strategy return was marginally negative; all other strategies were in positive territory, particularly those with predominantly equity-based exposure.

Performance shown is for selected Private Client strategies, net of fees. Performance assumes investment at the beginning of the period indicated and reflects all recommended reallocations and changes among the funds, including changes in investment managers and funds included in the model. Information on allocations among funds, reallocations and model changes is available upon request. Model performance shown is not meant to represent any individual client account. Model performance shown is net of fees charged by SEI, but does not reflect any fee your advisor may charge.

Sources: SEI, DataMart

Index returns are for illustrative purposes only and do not represent actual fund performance. Index performance returns

do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest

directly in an index. Past performance is no guarantee of future results.

sei representative strategy review stability focused strategies
SEI Representative Strategy ReviewStability-Focused Strategies

Index returns are for illustrative purposes only and do not represent actual fund

performance. Index performance returns do not reflect any management fees,

transaction costs or expenses. Indexes are unmanaged and one cannot invest

directly in an index. Past performance is no guarantee of future results.

Source: SEI, BlackRock Solutions

Durations shown as of 12/31/13.

Weighted average results derived from the fixed income fund components of Strategy;

U.S. Bonds reflects Barclays U.S. Aggregate Bond Index

  • Stability-focused strategies are designed to reduce portfolio volatility and drawdown risk, while still seeking long-term appreciation.
  • The fixed-income focus is on reducing interest-rate risk and enhancing yield.
  • The equity focus is on capital appreciation with below-market volatility.
  • Both managed volatility equity portfolios lagged their benchmarks for the quarter, but continued to show solid longer-term returns.

* Values were set to zero as of December 31, 2010.

stability focused strategy pc short term strategy
Stability-Focused Strategy ›PC Short Term Strategy

Strategy Themes

  • The strategy delivered a marginally positive quarterly return, reflecting stabilization of shorter duration U.S. fixed-income securities and the continuation of near-zero cash yields.
  • Quarterly performance was aided by slight gains in the Multi-Asset Capital Stability and Short Duration Government funds, while Real Return declined slightly.
  • Year-to-date returns remained marginally negative, driven primarily by declines in Real Return and Multi-Asset Capital Stability. Both funds were negatively affected by the mid-year volatility in global fixed-income markets, and continued weakness in Treasury Inflation-Protected Securities (TIPS).

Sources: SEI, FactSet. Returns are net of fees, selected Private Client Strategies.

The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less that their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, please call 1.800.DIAL.SEI .Asset allocation as of 12/31/2013 and subject to change.

stability focused strategy pc short term strategy1
Stability-Focused Strategy ›PC Short Term Strategy

Asset allocation as of 12/31/2013 and subject to change. Securities as of 11/30/13 and subject to change.

stability focused strategy pc defensive strategy
Stability-Focused Strategy ›PC Defensive Strategy

Manager changes during the quarter:

- Cohen & Steers added to Multi-Asset Inflation Managed

Fund Highlight: U.S. Fixed Income

Three of SEI’s stability-focused strategies employ the U.S. Fixed Income fund. The fund’s slight 4th quarter and YTD declines have had a negative impact on strategy performance, though its longer-term absolute and relative returns have been favorable.

The fund is positioned in anticipation of a gradual trending toward higher interest rates. SEI believes that spread sectors generally offer the best opportunities within the fixed income universe, particularly high-yield bonds and bank loans.

Strategy Themes

  • During the quarter, the portfolio benefited most from its equity and high yield exposure. In particular, U.S. and Global Managed Volatility, High Yield, and Multi-Asset Income were the strongest performers. Inflation-sensitive exposure (Real Return and Multi-Asset Inflation) had a slight negative impact.
  • Year to date, the strategy’s diversified approach also proved advantageous, as its equity (U.S. and Global Managed Volatility), high yield, and diversified income (Multi-Asset Income) components served to offset weakness within fixed income (particularly Treasury Inflation-Protected Securities, or TIPS) and commodities.

Sources: SEI, FactSet. Returns are net of fees, selected Private Client Strategies.

The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less that their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, please call 1.800.DIAL.SEI. Asset allocation as of 12/31/2013 and subject to change.

stability focused strategy pc defensive strategy1
Stability-Focused Strategy ›PC Defensive Strategy

Asset allocation as of 12/31/2013 and subject to change. Securities as of 11/30/13 and subject to change.

stability focused strategy pc conservative strategy
Stability-Focused Strategy ›PC Conservative Strategy

Manager changes during the quarter:

- Cohen & Steers added to Multi-Asset Inflation Managed

Fund Highlight: U.S. Fixed Income

Three of SEI’s stability-focused strategies employ the U.S. Fixed Income fund. The fund’s slight 4th quarter and YTD declines have had a negative impact on strategy performance, though its longer-term absolute and relative returns have been favorable.

The fund is positioned in anticipation of a gradual trending toward higher interest rates. SEI believes that spread sectors generally offer the best opportunities within the fixed income universe, particularly high-yield bonds and bank loans.

Strategy Themes

  • During the quarter, the portfolio benefited most from its equity, high yield, and alternatives exposure. In particular, U.S. and Global Managed Volatility, High Yield, Multi-Strategy Alternative, and Multi-Asset Income were the strongest performers. Inflation-sensitive exposure (Real Return and Multi-Asset Inflation) had a slight negative impact.
  • Year to date, the strategy’s diversified approach also proved advantageous, as its equity (U.S. and Global Managed Volatility), high yield, diversified income (Multi-Asset Income), and alternatives components served to offset weakness within fixed income (particularly Treasury Inflation-Protected Securities, or TIPS) and commodities.

Sources: SEI, FactSet. Returns are net of fees, selected Private Client Strategies.

The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less that their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, please call 1.800.DIAL.SEI. Asset allocation as of 12/31/2013 and subject to change.

stability focused strategy pc conservative strategy1
Stability-Focused Strategy ›PC Conservative Strategy

Asset allocation as of 12/31/2013 and subject to change. Securities as of 11/30/13 and subject to change.

stability focused strategy pc moderate strategy
Stability-Focused Strategy ›PC Moderate Strategy

Manager changes during the quarter:

- Cohen & Steers added to Multi-Asset Inflation Managed

- Neuberger Berman added to Emerging Markets Debt

- Ashmore Inv Mgmt removed from Emerging Markets Debt

Fund Highlight: U.S. Fixed Income

Three of SEI’s stability-focused strategies employ the U.S. Fixed Income fund. The fund’s slight 4th quarter and YTD declines have had a negative impact on strategy performance, though its longer-term absolute and relative returns have been favorable.

The fund is positioned in anticipation of a gradual trending toward higher interest rates. SEI believes that spread sectors generally offer the best opportunities within the fixed income universe, particularly high-yield bonds and bank loans.

Strategy Themes

  • During the quarter, the portfolio benefited from its equity, high yield, and alternatives exposure. In particular, Large Cap, U.S. and Global Managed Volatility, High Yield, and Multi-Strategy Alternative were the strongest performers. Emerging Markets Debt and inflation-sensitive exposure (Real Return and Multi-Asset Inflation) had a negative impact.
  • Year to date, the strategy’s diversified approach also proved somewhat advantageous, as its equity (Large Cap, U.S. and Global Managed Volatility) and high yield components served to offset weakness within fixed income (especially emerging markets debt and Treasury Inflation-Protected Securities, or TIPS) and commodities.

Sources: SEI, FactSet. Returns are net of fees, selected Private Client Strategies.

The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less that their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, please call 1.800.DIAL.SEI. Asset allocation as of 12/31/2013 and subject to change.

stability focused strategy pc moderate strategy1
Stability-Focused Strategy ›PC Moderate Strategy

Asset allocation as of 12/31/2013 and subject to change. Securities as of 11/30/13 and subject to change.

multi asset income fund
Multi-Asset Income Fund
      • The Multi-Asset Income Fund is currently held in two of the Stability-focused Private Client strategies, and will be incorporated into additional strategies in the near future.
  • The fund utilizes a non-benchmark-constrained, “go-anywhere” tactical approach, investing in a broad range of income-producing securities. In addition to managing credit and liquidity risk, the fund also seeks to actively manage interest-rate risk.
  • In a challenging environment for fixed-income investing, the fund has achieved positive returns for the 4th quarter, calendar 2013, and since inception (April 9, 2012) of 2.4%, 6.2%, and 9.4% (annualized), respectively.
  • The fund’s performance has held up particularly well on days in which interest rates have risen most and fixed-income markets have been stressed.

The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less that their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, please call 1.800.DIAL.SEI. As of 12/31/2013 and subject to change.

High-Yield Bonds = Barclays US High Yield Corporate Index, Bank Loans = Barclays US High Yield Loans, ABS = Barclays US Aggregate Securitized – ABS, Inv. Grade Corp. = BofA Merrill Lynch U.S. Corporates - Master Issuer Constrained, RMBS = Barclays US Aggregate Securitized - MBS - FNMA (30 Y), 20+ YR Treasury = Barclays 20+ YR Treasury Index

growth focused strategy pc core market strategy
Growth-Focused Strategy ›PC Core Market Strategy

1%

Manager changes during the quarter:

- Cohen & Steers added to Multi-Asset Inflation Managed

- Neuberger Berman added to Emerging Markets Debt

- Ashmore Inv Mgmt removed from Emerging Markets Debt

- del Rey Global Investors removed from International Equity

Fund Highlights: Large Cap and Small Cap

SEI’s growth-focused strategies employ both the Large Cap and Small Cap funds. All four strategies have benefited from each fund’s strong 4th quarter and year-to-date performance.

During the quarter, both funds benefited from stock selection, particularly within Financials and Health Care. Large Cap continues to position away from deep cyclical and defensive sectors in favor of IT and health care; while Small Cap remains mildly pro-cyclical with a quality tilt.

Strategy Themes

  • The strategy’s fourth-quarter return was driven by strong gains in Large Cap, Small Cap, and International Equity; along with more modest positive returns in High Yield, Multi-Strategy Alternative, and Emerging Markets Equity. Emerging Markets Debt was the only fund to experience a decline of more than 1% during the quarter.
  • Year-to-date strategy performance benefited from strong returns in Small Cap, Large Cap, and International Equity; but was constrained by weakness in Emerging Markets Debt, Multi-Asset Inflation, and U.S. Fixed Income.

Sources: SEI, FactSet. Returns are net of fees, selected Private Client Strategies.

The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less that their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, please call 1.800.DIAL.SEI. Asset allocation as of 12/31/2013 and subject to change.

growth focused strategy pc core market strategy1
Growth-Focused Strategy ›PC Core Market Strategy

Asset allocation as of 12/31/2013 and subject to change. Securities as of 11/30/13 and subject to change.

growth focused strategy pc market growth strategy
Growth-Focused Strategy ›PC Market Growth Strategy

1%

Manager changes during the quarter:

- Cohen & Steers added to Multi-Asset Inflation Managed

- Neuberger Berman added to Emerging Markets Debt

- Ashmore Inv Mgmt removed from Emerging Markets Debt

- del Rey Global Investors removed from International Equity

Fund Highlights: Large Cap and Small Cap

SEI’s growth-focused strategies employ both the Large Cap and Small Cap funds. All four strategies have benefited from each fund’s strong 4th quarter and year-to-date performance.

During the quarter, both funds benefited from stock selection, particularly within Financials and Health Care. Large Cap continues to position away from deep cyclical and defensive sectors in favor of IT and health care; while Small Cap remains mildly pro-cyclical with a quality tilt.

Strategy Themes

  • The strategy’s fourth-quarter return was driven by strong gains in Large Cap, Small Cap, and International Equity; along with more modest positive returns in High Yield, Multi-Strategy Alternative, and Emerging Markets Equity. Emerging Markets Debt was the only fund to experience a decline of more than 1% during the quarter.
  • Year-to-date strategy performance benefited from strong returns in Small Cap, Large Cap, and International Equity; but was constrained by weakness in Emerging Markets Debt and Equity, Multi-Asset Inflation, and U.S. Fixed Income.

Sources: SEI, FactSet. Returns are net of fees, selected Private Client Strategies.

The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less that their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, please call 1.800.DIAL.SEI. Asset allocation as of 12/31/2013 and subject to change.

growth focused strategy pc market growth strategy1
Growth-Focused Strategy ›PC Market Growth Strategy

Asset allocation as of 12/31/2013 and subject to change. Securities as of 11/30/13 and subject to change.

growth focused strategy pc aggressive strategy
Growth-Focused Strategy ›PC Aggressive Strategy

1%

  • Manager changes during the quarter:
  • - Neuberger Berman added to Emerging Markets Debt
  • - Ashmore Inv Mgmt removed from Emerging Markets Debt
  • del Rey Global Investors removed from International Equity
  • Fund Highlights: Large Cap and Small Cap
  • SEI’s growth-focused strategies employ both the Large Cap and Small Cap funds. All four strategies have benefited from each fund’s strong 4th quarter and year-to-date performance.
  • During the quarter, both funds benefited from stock selection, particularly within Financials and Health Care. Large Cap continues to position away from deep cyclical and defensive sectors in favor of IT and health care; while Small Cap remains mildly pro-cyclical with a quality tilt.

Strategy Themes

  • The strategy’s strong fourth-quarter return was driven by outsized gains in Large Cap and Small Cap, along with a more modest positive return in International Equity – these 3 funds collectively represented roughly 60% of the portfolio. Emerging Markets Debt was the only fund to experience a decline during the quarter.
  • Year-to-date strategy performance benefited from strong returns in Small Cap, Large Cap, and International Equity; but was constrained by weakness in Emerging Markets Debt and Equity, and Multi-Asset Accumulation.

Sources: SEI, FactSet. Returns are net of fees, selected Private Client Strategies.

The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less that their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, please call 1.800.DIAL.SEI. Asset allocation as of 12/31/2013 and subject to change.

growth focused strategy pc aggressive strategy1
Growth-Focused Strategy ›PC Aggressive Strategy

Asset allocation as of 12/31/2013 and subject to change. Securities as of 11/30/13 and subject to change.

growth focused strategy pc equity strategy
Growth-Focused Strategy ›PC Equity Strategy

1%

Manager changes during the quarter:

- del Rey Global Investors removed from International Equity

Fund Highlights: Large Cap and Small Cap

SEI’s growth-focused strategies employ both the Large Cap and Small Cap funds. All four strategies have benefited from each fund’s strong 4th quarter and year-to-date performance.

During the quarter, both funds benefited from stock selection, particularly within Financials and Health Care. Large Cap continues to position away from deep cyclical and defensive sectors in favor of IT and health care; while Small Cap remains mildly pro-cyclical with a quality tilt.

Strategy Themes

  • The strategy’s strong fourth-quarter return was driven by an outsized gain in Large Cap, along with more muted positive returns in Small Cap and International Equity – these 3 funds collectively represented over 90% of the portfolio.
  • Year-to-date strategy performance benefited from strong returns in Small Cap and Large Cap, and a more muted but still solid gain in International Equity. Emerging Markets Equity experienced only a marginal year-to-date increase.

Sources: SEI, FactSet. Returns are net of fees, selected Private Client Strategies.

The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less that their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, please call 1.800.DIAL.SEI. Asset allocation as of 12/31/2013 and subject to change.

growth focused strategy pc equity strategy1
Growth-Focused Strategy ›PC Equity Strategy

Asset allocation as of 12/31/2013 and subject to change. Securities as of 11/30/13 and subject to change.

multi asset accumulation fund
Multi-Asset Accumulation Fund
  • The Multi-Asset Accumulation Fund is held in four of the non tax-managed Private Client strategies, with the goal of decreasing the reliance on equity beta as the primary driver of portfolio risk and return.
  • The fund seeks long-term growth across a variety of economic and market conditions by offering very diversified global market exposures that are balanced on the basis of volatility levels rather than capital weightings.
  • The fund returned 1.5% in the 4th quarter; year to date, it has gained 1.2%.
  • For both the 4th quarter and the full year, developed market equity exposure contributed positively to the fund’s performance, while global fixed-income and commodity exposure had a negative impact.  The fund continues to hold an overweight allocation (versus its 40% target) to Global Equities, on a risk-weighted basis.

*60% MSCI World Equity Index (Hedged) / 40% Barclays Global Aggregate Bond Index (Hedged)

Source: SEI, Factset, BlackRock. Past performance is no guarantee of future results. The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less that their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, please call 1.800.DIAL.SEI. Asset allocation as of 12/31/2013 and subject to change.

stability focused strategy pc tax managed short term strategy
Stability-Focused Strategy › PC Tax-Managed Short Term Strategy

Fund Highlight: Short Duration Municipal

All four of SEI’s tax-managed stability-focused strategies employ the Short Duration Municipal fund. The fund achieved slightly positive 4th quarter and year-to-date returns; consistent with its focus on capital preservation, the fund has never experienced a calendar year decline since its November 2003 inception.

The fund holds roughly 72% of its portfolio in revenue bonds, as managers continue to see greater relative value there than in the general obligation and pre-refunded sectors.  Currently, the fund’s duration is about 18% shorter than that of its benchmark.

Strategy Themes

  • The strategy delivered a marginally positive quarterly return, reflecting stabilization of shorter duration U.S. fixed-income securities and the continuation of near-zero cash yields. Each component fund rose slightly during the quarter, with Intermediate-Term Municipal and Short Duration Municipal showing similar gains.
  • Year-to-date returns remained barely negative, driven by the decline in Intermediate-Term Municipal. The fund was negatively impacted by the mid-year volatility in global fixed-income markets, as well as uncertainties about the potential future tax treatment of municipal securities and concerns about the creditworthiness of certain headline cities and regions.

Sources: SEI, FactSet. Returns are net of fees, selected Private Client Strategies.

The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less that their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, please call 1.800.DIAL.SEI. Asset allocation as of 12/31/2013 and subject to change.

stability focused pc tax managed short term strategy
Stability-Focused ›PC Tax-Managed Short Term Strategy

Asset allocation as of 12/31/2013 and subject to change. Securities as of 11/30/13 and subject to change.

stability focused strategy pc tax managed defensive strategy
Stability-Focused Strategy ›PC Tax-Managed Defensive Strategy

Fund Highlight: Short Duration Municipal

All four of SEI’s tax-managed stability-focused strategies employ the Short Duration Municipal fund. The fund achieved slightly positive 4th quarter and year-to-date returns; consistent with its focus on capital preservation, the fund has never experienced a calendar year decline since its November 2003 inception.

The fund holds roughly 72% of its portfolio in revenue bonds, as managers continue to see greater relative value there than in the general obligation and pre-refunded sectors.  Currently, the fund’s duration is about 18% shorter than that of its benchmark.

Strategy Themes

  • During the quarter, the portfolio benefited most from its equity exposure. In particular, Tax-Managed Managed Volatility was the strongest performer, while Intermediate-Term Municipal and Short Duration Municipal lagged.
  • Year to date, the strategy’s diversified approach also proved somewhat advantageous, as its equity component (Tax-Managed Managed Volatility) served to offset weakness in Tax-Advantaged Income (high-yield municipal securities and preferred stocks) and Intermediate-Term Municipal.

Sources: SEI, FactSet. Returns are net of fees, selected Private Client Strategies.

The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less that their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, please call 1.800.DIAL.SEI. Asset allocation as of 12/31/2013 and subject to change.

stability focused pc tax managed defensive strategy
Stability-Focused ›PC Tax-Managed Defensive Strategy

Asset allocation as of 12/31/2013 and subject to change. Securities as of 11/30/13 and subject to change.

stability focused strategy pc tax managed conservative strategy
Stability-Focused Strategy ›PC Tax-Managed Conservative Strategy

Fund Highlight: Short Duration Municipal

All four of SEI’s tax-managed stability-focused strategies employ the Short Duration Municipal fund. The fund achieved slightly positive 4th quarter and year-to-date returns; consistent with its focus on capital preservation, the fund has never experienced a calendar year decline since its November 2003 inception.

The fund holds roughly 72% of its portfolio in revenue bonds, as managers continue to see greater relative value there than in the general obligation and pre-refunded sectors.  Currently, the fund’s duration is about 18% shorter than that of its benchmark.

Strategy Themes

  • During the quarter, the portfolio benefited most from its equity exposure. In particular, Tax-Managed Large Cap and Tax-Managed Managed Volatility were the strongest performers, while Intermediate-Term Municipal and Short Duration Municipal lagged.
  • Year to date, the strategy’s diversified approach also proved somewhat advantageous, as its equity components (Tax-Managed Large Cap and Tax-Managed Managed Volatility) served to offset weakness in Tax-Advantaged Income (high-yield municipal securities and preferred stocks) and Intermediate-Term Municipal.

Sources: SEI, FactSet. Returns are net of fees, selected Private Client Strategies.

The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less that their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, please call 1.800.DIAL.SEI. Asset allocation as of 12/31/2013 and subject to change.

stability focused strategy pc tax managed conservative strategy1
Stability-Focused Strategy ›PC Tax-Managed Conservative Strategy

Asset allocation as of 12/31/2013 and subject to change. Securities as of 11/30/13 and subject to change.

stability focused strategy pc tax managed moderate strategy
Stability-Focused Strategy ›PC Tax-Managed Moderate Strategy

Manager changes during the quarter:

- del Rey Global Investors removed from International Equity

Fund Highlight: Short Duration Municipal

All four of SEI’s tax-managed stability-focused strategies employ the Short Duration Municipal fund. The fund achieved slightly positive 4th quarter and year-to-date returns; consistent with its focus on capital preservation, the fund has never experienced a calendar year decline since its November 2003 inception.

The fund holds roughly 72% of its portfolio in revenue bonds, as managers continue to see greater relative value there than in the general obligation and pre-refunded sectors. Currently, the fund’s duration is about 18% shorter than that of its benchmark.

Strategy Themes

  • During the quarter, the portfolio benefited from both its U.S. and non-U.S. equity exposure. In particular, Tax-Managed Large Cap, Tax-Managed Managed Volatility, and International Equity were the strongest performers; while Intermediate-Term Municipal and Short Duration Municipal lagged.
  • Year to date, the strategy’s diversified approach also proved somewhat advantageous, as its U.S. and international equity components served to offset weakness in Tax-Advantaged Income (high-yield municipal securities and preferred stocks) and Intermediate-Term Municipal.

Sources: SEI, FactSet. Returns are net of fees, selected Private Client Strategies.

The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less that their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, please call 1.800.DIAL.SEI. Asset allocation as of 12/31/2013 and subject to change.

stability focused strategy pc tax managed moderate strategy1
Stability-Focused Strategy ›PC Tax-Managed Moderate Strategy

Asset allocation as of 12/31/2013 and subject to change. Securities as of 11/30/13 and subject to change.

growth focused strategy pc tax managed core market strategy
Growth-Focused Strategy ›PC Tax-Managed Core Market Strategy
  • Manager changes during the quarter:
  • Neuberger Berman added to Emerging Markets Debt
  • Ashmore Inv Mgmt removed from Emerging Markets Debt
  • del Rey Global Investors removed from International Equity
  • Fund Highlights: Tax-Managed Large Cap and Small/Mid Cap
  • SEI’s tax-managed growth-focused strategies use both the Large Cap and Small/Mid Cap funds. All four strategies have benefited from each fund’s strong 4th quarter and year-to-date returns.
  • During the quarter, both funds benefited from stock selection, particularly within Financials and Health Care. Large Cap continues to position away from deep cyclical and defensive sectors in favor of IT and health care; while Small/Mid Cap remains mildly pro-cyclical with a quality tilt.

Strategy Themes

  • The strategy’s fourth-quarter return was driven by strong gains in Tax-Managed Large Cap, Tax-Managed Small/Mid Cap, and International Equity – these 3 funds collectively represented nearly 45% of the portfolio. Emerging Markets Debt was the only fund to experience a decline during the quarter.
  • Year-to-date strategy performance benefited from strong returns in Small/Mid Cap, Large Cap, and International Equity; but was constrained by weakness in Emerging Markets Debt, Tax-Advantaged Income, and Intermediate Term Municipal.

Sources: SEI, FactSet. Returns are net of fees, selected Private Client Strategies.

The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less that their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, please call 1.800.DIAL.SEI. Asset allocation as of 12/31/2013 and subject to change.

growth focused strategy pc tax managed core market strategy1
Growth-Focused Strategy ›PC Tax-Managed Core Market Strategy

Asset allocation as of 12/31/2013 and subject to change. Securities as of 11/30/13 and subject to change.

growth focused strategy pc tax managed market growth strategy
Growth-Focused Strategy ›PC Tax-Managed Market Growth Strategy
  • Manager changes during the quarter:
  • Neuberger Berman added to Emerging Markets Debt
  • Ashmore Inv Mgmt removed from Emerging Markets Debt
  • del Rey Global Investors removed from International Equity
  • Fund Highlights: Tax-Managed Large Cap and Small/Mid Cap
  • SEI’s tax-managed growth-focused strategies use both the Large Cap and Small/Mid Cap funds. All four strategies have benefited from each fund’s strong 4th quarter and year-to-date returns.
  • During the quarter, both funds benefited from stock selection, particularly within Financials and Health Care. Large Cap continues to position away from deep cyclical and defensive sectors in favor of IT and health care; while Small/Mid Cap remains mildly pro-cyclical with a quality tilt.

Strategy Themes

  • The strategy’s fourth-quarter return was driven by strong gains in Tax-Managed Large Cap, Tax-Managed Small/Mid Cap, and International Equity – these 3 funds collectively represented nearly 65% of the portfolio. Emerging Markets Debt was the only fund to experience a decline during the quarter.
  • Year-to-date strategy performance benefited from strong returns in Small/Mid Cap, Large Cap, and International Equity; but was constrained by weakness in Emerging Markets Debt, Tax-Advantaged Income, and Intermediate Term Municipal.

Sources: SEI, FactSet. Returns are net of fees, selected Private Client Strategies.

The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less that their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, please call 1.800.DIAL.SEI. Asset allocation as of 12/31/2013 and subject to change.

growth focused strategy pc tax managed market growth strategy1
Growth-Focused Strategy ›PC Tax-Managed Market Growth Strategy

Asset allocation as of 12/31/2013 and subject to change. Securities as of 11/30/13 and subject to change.

growth focused strategy pc tax managed aggressive strategy
Growth-Focused Strategy ›PC Tax-Managed Aggressive Strategy
  • Manager changes during the quarter:
  • Neuberger Berman added to Emerging Markets Debt
  • Ashmore Inv Mgmt removed from Emerging Markets Debt
  • del Rey Global Investors removed from International Equity
  • Fund Highlights: Tax-Managed Large Cap and Small/Mid Cap
  • SEI’s tax-managed growth-focused strategies use both the Large Cap and Small/Mid Cap funds. All four strategies have benefited from each fund’s strong 4th quarter and year-to-date returns.
  • During the quarter, both funds benefited from stock selection, particularly within Financials and Health Care. Large Cap continues to position away from deep cyclical and defensive sectors in favor of IT and health care; while Small/Mid Cap remains mildly pro-cyclical with a quality tilt.

Strategy Themes

  • The strategy’s strong fourth-quarter return was driven by an outsized gain in Tax-Managed Large Cap, along with more modest positive returns in Tax-Managed Small/Mid Cap and International Equity – these 3 funds collectively represented more than 80% of the portfolio. Emerging Markets Debt was the only fund to experience a decline during the quarter.
  • Year-to-date strategy performance benefited primarily from strong returns in Small/Mid Cap and Large Cap, but was constrained by weakness in Emerging Markets Debt and Equity, as well as Tax-Advantaged Income.

Sources: SEI, FactSet. Returns are net of fees, selected Private Client Strategies.

The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less that their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, please call 1.800.DIAL.SEI. Asset allocation as of 12/31/2013 and subject to change.

growth focused strategy pc tax managed aggressive strategy1
Growth-Focused Strategy ›PC Tax-Managed Aggressive Strategy

Asset allocation as of 12/31/2013 and subject to change. Securities as of 11/30/13 and subject to change.

growth focused strategy pc tax managed equity strategy
Growth-Focused Strategy ›PC Tax-Managed Equity Strategy

Manager changes during the quarter:

- del Rey Global Investors removed from International Equity

Fund Highlights: Tax-Managed Large Cap and Small/Mid Cap

SEI’s tax-managed growth-focused strategies use both the Large Cap and Small/Mid Cap funds. All four strategies have benefited from each fund’s strong 4th quarter and year-to-date returns.

During the quarter, both funds benefited from stock selection, particularly within Financials and Health Care. Large Cap continues to position away from deep cyclical and defensive sectors in favor of IT and health care; while Small/Mid Cap remains mildly pro-cyclical with a quality tilt.

Strategy Themes

  • The strategy’s strong fourth-quarter return was driven by an outsized gain in Tax-Managed Large Cap, along with more modest positive returns in Tax-Managed Small/Mid Cap and International Equity – these 3 funds collectively represented nearly 95% of the portfolio.
  • Year-to-date strategy performance benefited from strong returns in Small/Mid Cap and Large Cap, as well as a more muted but still solid gain in International Equity. Emerging Markets Equity was the only fund to experience a year-to-date decline.

Sources: SEI, FactSet. Returns are net of fees, selected Private Client Strategies.

The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less that their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, please call 1.800.DIAL.SEI. Asset allocation as of 12/31/2013 and subject to change.

growth focused strategy pc tax managed equity strategy1
Growth-Focused Strategy›PC Tax-Managed Equity Strategy

Asset allocation as of 12/31/2013 and subject to change. Securities as of 11/30/13 and subject to change.

point of view

Point of View

Economic Outlook

bullish views prevail
Bullish views prevail
  • One year ago, investors were fretting about fiscal cliffs, deficit ceilings, quantitative easing, the seemingly never-ending recession in Europe, the meaning of Abenomics for Japan and the changing of the guard in China.
  • Despite this, 2013 was an even stronger year for developed-world stock markets than many expected, with not one serious price correction the entire year.
  • The extraordinary appreciation in equity prices over the past year has been accompanied by a sharp jump in investor optimism.
  • While stock-market peaks are usually associated with such highly elevated levels of optimism, rising investor sentiment can also prolong the market’s advance.

. Index returns are for illustrative purposes only and do not represent actual fund performance. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results.

price to earning levels on the march
Price-to-earning levels on the march
  • Rising global markets have elevated the price-to-earnings ratios of most markets, rising faster than earnings growth in developed markets.
  • To date, slow earnings growth has not been an impediment for most developed-country equity markets due to:
    • Underpriced heading into 2013 on potential U.S. tax hikes and eurozone recession
    • Aggressive stimulus efforts by central banks
    • Lower risk of sovereign debt default in eurozone
    • Slow embrace of bull market by investors
  • It is our view that valuations are not unreasonable, but we also recognize that the rising trend in earnings multiples cannot be sustained indefinitely.
  • A much better stock-market scenario would be one in which company fundamentals start to catch up with investors’ expectations.
  • Earnings growth should become the dominant factor driving the market in 2014.

. Index returns are for illustrative purposes only and do not represent actual fund performance. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results.

equity mutual funds finally join the party
Equity mutual funds finally join the party
  • Net cash flows into equity mutual funds have turned decisively positive only in the past year.
  • On a 12-month cumulative sum basis, cash flows into equity mutual funds started to exceed cash flows into bonds just three months ago.
  • Net outflows from bond mutual funds began only around the middle of last year, when Federal Reserve Chairman Ben Bernanke announced plans to taper the central bank’s bond purchases.
  • While the shift back into equities doesn’t guarantee the continuation of above-average equity price appreciation, increased investor participation in the stock market should act as a tailwind.
  • Bonds, by contrast, may continue to struggle as they fall further out of favor.
the u s economy is perking up
The U.S. economy is perking up
  • There is reason to believe a fundamental improvement in economic growth will materialize.
  • In the U.S., employment has picked up and the private sector has been growing at about a 3% annual rate in inflation-adjusted terms.
  • There is also hope that fiscal policy will be a far less negative force impinging upon economic activity.
  • In light of the recent agreement to ease the sequestration spending limits over the next two fiscal years, the impact of fiscal policy on the economy now should be closer to neutral.
inflation still missing in action
Inflation still missing in action
  • Monetary policy, in contrast, could be a greater source of investor agitation, but only the form of that policy will change under new Fed Chair Yellen.
  • We expect the Fed to firmly anchor short-term rates near zero through 2014 and well into 2015, aiding to curb the upward pressure on bond yields.
  • An important theme for 2014 will be the trend toward further interest-rate normalization; both real yields and inflation expectations are expected to drift higher.
  • However, the odds of an actual inflation flare-up remain low in our opinion, as the world economy continues to operate at a level well below potential.
euro remains resilient
Euro remains resilient
  • In Europe, financial markets and the euro have climbed in rather stunning fashion.
  • We find this strength surprising, as the eurozone economy has failed to rebound convincingly, lagging other advanced economies.
  • In addition, there is still a great deal of uncertainty regarding future monetary/fiscal policy measures and structural economic and banking reforms.
  • In 2014, the absence of an expansion in credit or robust export growth should weigh on Europe.
  • In spite of these challenges, the euro has been resilient, climbing more than 45% versus the Japanese yen since its bottom in July 2012.
german confidence and exports go in different directions
German confidence and exports go in different directions
  • Germany is probably in the best shape among the eurozone countries to withstand the rigors of a strong euro, but potentially faces severe competitive challenges in the months ahead.
  • Over the past year, Japan’s sharply improving competitiveness has already led to a relative gain in trade volume vis-à-vis German exports.
  • Business confidence and the direction of merchandise exports typically go hand in hand, but confidence bottomed out toward the end of 2012 and has been on a sharp upward trajectory since.
  • If extremely efficient, high-value-added German exporters are facing more intense competitive pressures, other countries in Europe are likely facing greater difficulties.
  • Given that we see no sense of urgency on the part of the European Central Bank to provide more stimulus, another economic stumble is possible.
emerging economies may be bottoming
Emerging economies may be bottoming
  • Poor economic fundamentals, excessive debt levels and tapering concerns around the U.S. quantitative easing effort have plagued the asset class in 2013.
  • After trailing developed markets for over three years, we believe that much of the bad news and controversies are now baked into prices.
  • We believe that the longer term view remains quite positive due to faster emerging market growth relative to advanced economies as trade flows recover and favorable demographic profiles.
  • There are early signs of recovery, even in those countries that have been especially out of favor—Brazil, India and China.

Index of Leading Economic Indicators, Amplitude-Adjusted

Amplitude adjustment occurs when the OECD composite leading indicator (CLI) is adjusted to ensure that its cyclical amplitude on average agrees with that of detrended reference series.

sei performance summary fixed income mutual funds as of 12 31 2013
SEI performance summary Fixed-income mutual funds – as of 12/31/2013

Performance data quoted is past performance. Past performance is no guarantee of future results. The principal value and investment return of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original value. Current performance may be higher or lower. For performance data current to the most recent month end, please call 1-800-DIAL-SEI. Performance information as shown is net of all mutual fund fees and expenses, but does not include any charges or fees which may or may not be imposed by an investor’s financial advisor which will reduce performance returns. For example, on an account charged 1% by a financial advisor with a stated annual return (net of mutual fund fees) of 10%, the net total return before taxes would be reduced from 10% to 9%. A ten year investment of $100,000 at 10% would grow to $259,400, and at 9%, to $236,700 before taxes.  Source: SEI Datamart

sei performance summary equity mutual funds as of 12 31 2013
SEI performance summary Equity mutual funds – as of 12/31/2013

Performance data quoted is past performance. Past performance is no guarantee of future results. The principal value and investment return of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original value. Current performance may be higher or lower. For performance data current to the most recent month end, please call 1-800-DIAL-SEI. Performance information as shown is net of all mutual fund fees and expenses, but does not include any charges or fees which may or may not be imposed by an investor’s financial advisor which will reduce performance returns. For example, on an account charged 1% by a financial advisor with a stated annual return (net of mutual fund fees) of 10%, the net total return before taxes would be reduced from 10% to 9%. A ten year investment of $100,000 at 10% would grow to $259,400, and at 9%, to $236,700 before taxes.  Source: SEI Datamart

sei performance summary equity mutual funds as of 12 31 2013 continued
SEI performance summary Equity mutual funds – as of 12/31/2013 (continued)

Performance data quoted is past performance. Past performance is no guarantee of future results. The principal value and investment return of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original value. Current performance may be higher or lower. For performance data current to the most recent month end, please call 1-800-DIAL-SEI. Performance information as shown is net of all mutual fund fees and expenses, but does not include any charges or fees which may or may not be imposed by an investor’s financial advisor which will reduce performance returns. For example, on an account charged 1% by a financial advisor with a stated annual return (net of mutual fund fees) of 10%, the net total return before taxes would be reduced from 10% to 9%. A ten year investment of $100,000 at 10% would grow to $259,400, and at 9%, to $236,700 before taxes.  Source: SEI Datamart

sei performance summary multi asset mutual funds as of 12 31 2013
SEI performance summaryMulti-asset mutual funds – as of 12/31/2013

Blended Benchmarks include: Accumulation (40% Barclays Global Aggregate Hdg index; 60% MSCI World Hdg Index), Capital Stability (95% Barclays 1-3yr U.S. Govt/Credit Index; 5% S&P 500 Index), Income (45% Barclays U.S. Aggregate Bond Index; 40% BofAML High Yield Master Constrained Index; 15% S&P 500 Index), Inflation Managed (70% Barclays TIPS 1-5yr; 30% MSCI ACWI Commodity Producers Index)

Performance data quoted is past performance. Past performance is no guarantee of future results. The principal value and investment return of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original value. Current performance may be higher or lower. For performance data current to the most recent month end, please call 1-800-DIAL-SEI. Performance information as shown is net of all mutual fund fees and expenses, but does not include any charges or fees which may or may not be imposed by an investor’s financial advisor which will reduce performance returns. For example, on an account charged 1% by a financial advisor with a stated annual return (net of mutual fund fees) of 10%, the net total return before taxes would be reduced from 10% to 9%. A ten year investment of $100,000 at 10% would grow to $259,400, and at 9%, to $236,700 before taxes.  Source: SEI Datamart

sei annualized performance summary fixed income mutual funds as of 12 31 2013
SEI annualized performance summaryFixed-income mutual funds – as of 12/31/2013

Performance data quoted is past performance. Past performance is no guarantee of future results. The principal value and investment return of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original value. Current performance may be higher or lower. For performance data current to the most recent month end, please call 1-800-DIAL-SEI. Performance information as shown is net of all mutual fund fees and expenses, but does not include any charges or fees which may or may not be imposed by an investor’s financial advisor which will reduce performance returns. For example, on an account charged 1% by a financial advisor with a stated annual return (net of mutual fund fees) of 10%, the net total return before taxes would be reduced from 10% to 9%. A ten year investment of $100,000 at 10% would grow to $259,400, and at 9%, to $236,700 before taxes.  Fee waivers are voluntary and may be discontinued at any time. Source: SEI Datamart

sei annualized performance summary equity mutual funds as of 12 31 2013
SEI annualized performance summaryEquity mutual funds – as of 12/31/2013

Performance data quoted is past performance. Past performance is no guarantee of future results. The principal value and investment return of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original value. Current performance may be higher or lower. For performance data current to the most recent month end, please call 1-800-DIAL-SEI. Performance information as shown is net of all mutual fund fees and expenses, but does not include any charges or fees which may or may not be imposed by an investor’s financial advisor which will reduce performance returns. For example, on an account charged 1% by a financial advisor with a stated annual return (net of mutual fund fees) of 10%, the net total return before taxes would be reduced from 10% to 9%. A ten year investment of $100,000 at 10% would grow to $259,400, and at 9%, to $236,700 before taxes.  Fee waivers are voluntary and may be discontinued at any time. Source: SEI Datamart

sei annualized performance summary equity mutual funds as of 12 31 2013 continued
SEI annualized performance summaryEquity mutual funds – as of 12/31/2013 (continued)

(1) After taxes on distributions of dividends and capital gains**

(2) After taxes on distributions of dividends and capital gains and proceeds from the sale of fund shares**

** After-tax returns are calculated using the historical top individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Your actual after-tax returns will depend your tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After taxes on distributions of dividends and capital gains**

After taxes on distributions of dividends and capital gains and proceeds from the sale of fund shares**

** After-tax returns are calculated using the historical top individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Your actual after-tax returns will depend your tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts.

Performance data quoted is past performance. Past performance is no guarantee of future results. The principal value and investment return of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original value. Current performance may be higher or lower. For performance data current to the most recent month end, please call 1-800-DIAL-SEI. Performance information as shown is net of all mutual fund fees and expenses, but does not include any charges or fees which may or may not be imposed by an investor’s financial advisor which will reduce performance returns. For example, on an account charged 1% by a financial advisor with a stated annual return (net of mutual fund fees) of 10%, the net total return before taxes would be reduced from 10% to 9%. A ten year investment of $100,000 at 10% would grow to $259,400, and at 9%, to $236,700 before taxes.  Fee waivers are voluntary and may be discontinued at any time. Source: SEI Datamart

sei annualized performance summary multi asset mutual funds as of 12 31 2013
SEI annualized performance summaryMulti-asset mutual funds – as of 12/31/2013

Blended Benchmarks include: Accumulation (40% Barclays Global Aggregate Hdg index; 60% MSCI World Hdg Index), Capital Stability (95% Barclays 1-3yr U.S. Govt/Credit Index; 5% S&P 500 Index), Income (45% Barclays U.S. Aggregate Bond Index; 40% BofAML High Yield Master Constrained Index; 15% S&P 500 Index), Inflation Managed (70% Barclays TIPS 1-5yr; 30% MSCI ACWI Commodity Producers Index)

Performance data quoted is past performance. Past performance is no guarantee of future results. The principal value and investment return of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original value. Current performance may be higher or lower. For performance data current to the most recent month end, please call 1-800-DIAL-SEI. Performance information as shown is net of all mutual fund fees and expenses, but does not include any charges or fees which may or may not be imposed by an investor’s financial advisor which will reduce performance returns. For example, on an account charged 1% by a financial advisor with a stated annual return (net of mutual fund fees) of 10%, the net total return before taxes would be reduced from 10% to 9%. A ten year investment of $100,000 at 10% would grow to $259,400, and at 9%, to $236,700 before taxes.  Fee waivers are voluntary and may be discontinued at any time. Source: SEI Datamart

sei annualized performance summary money market funds as of 12 31 2013
SEI annualized performance summaryMoney market funds – as of 12/31/2013

The yield quotation more closely reflects the current earnings of the money market fund than the total returns. An investment in the Fund is not

insured or Guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the

value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund.

Performance data quoted is past performance. Past performance is no guarantee of future results. Current performance may be higher or lower. For performance data current to the most recent month end, please call 1-800-DIAL-SEI. Fee waivers are voluntary and may be discontinued at any time. Source: SEI Datamart.

goallink goals based performance as of 12 31 2013
GoalLink goals-based performance – as of 12/31/2013

The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less that their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, please call 1-800-DIAL-SEI. Performance information as shown is net of all mutual fund fees and expenses, but does charged 1% by a financial advisor with a stated annual return (net of mutual fund fees) of 10%, the net total return before taxes would be reduced from 10% tonot include any charges or fees which may or may not be imposed by an investor’s financial advisor which will reduce performance returns. For example, on an account 9%. A ten year investment of $100,000 at 10% would grow to $259,400, and at 9%, to $236,700 before taxes. Fee waivers are voluntary and may be discontinued at any time. Source: SEI Datamart

goallink tax managed goals based performance as of 12 31 2013
GoalLink tax-managed goals-based performance – as of 12/31/2013

Source: SEI DataMart (monthly returns )

Performance assumes investment at the beginning of the period indicated and reflects all recommended reallocations and changes among the funds, including changes in investment managers and funds included in the model. Information on allocations among funds, reallocations and model changes is available upon request. Model performance shown is not meant to represent any individual client account. Model performance shown is net of fees charged by SEI. The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less that their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, please call 1-800-DIAL-SEI

goals based performance as of 12 31 2013 private client strategies
Goals-based performance – as of 12/31/2013Private Client Strategies

Performance assumes investment at the beginning of the period indicated and reflects all recommended reallocations and changes among the funds, including changes in investment managers and funds included in the model. Information on allocations among funds, reallocations and model changes is available upon request. Model performance shown is not meant to represent any individual client account. Model performance shown is net of fees charged by SEI. Performance information as shown is net of all mutual fund fees and expenses, but does not include any charges or fees which may or may not be imposed by an investor’s financial advisor which will reduce performance returns. For example, on an account charged 1% by a financial advisor with a stated annual return (net of mutual fund fees) of 10%, the net total return before taxes would be reduced from 10% to 9%. A ten year investment of $100,000 at 10% would grow to $259,400, and at 9%, to $236,700 before taxes.  The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less that their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, please call 1-800-DIAL-SEI. Source: SEI Datamart

tax managed goals based performance as of 12 31 2013 private client strategies
Tax-managed goals-based performance – as of 12/31/2013Private Client Strategies

Performance assumes investment at the beginning of the period indicated and reflects all recommended reallocations and changes among the funds, including changes in investment managers and funds included in the model. Information on allocations among funds, reallocations and model changes is available upon request. Model performance shown is not meant to represent any individual client account. Model performance shown is net of fees charged by SEI. Performance information as shown is net of all mutual fund fees and expenses, but does not include any charges or fees which may or may not be imposed by an investor’s financial advisor which will reduce performance returns. For example, on an account charged 1% by a financial advisor with a stated annual return (net of mutual fund fees) of 10%, the net total return before taxes would be reduced from 10% to 9%. A ten year investment of $100,000 at 10% would grow to $259,400, and at 9%, to $236,700 before taxes.  The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less that their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, please call 1-800-DIAL-SEI Source: SEI Datamart

institutional performance as of 12 31 2013
Institutional performance – as of 12/31/2013

Performance assumes investment at the beginning of the period indicated and reflects all recommended reallocations and changes among the funds, including changes in investment managers and funds included in the model. Information on allocations among funds, reallocations and model changes is available upon request. Model performance shown is not meant to represent any individual client account. Model performance shown is net of fees charged by SEI. Performance information as shown is net of all mutual fund fees and expenses, but does not include any charges or fees which may or may not be imposed by an investor’s financial advisor which will reduce performance returns. For example, on an account charged 1% by a financial advisor with a stated annual return (net of mutual fund fees) of 10%, the net total return before taxes would be reduced from 10% to 9%. A ten year investment of $100,000 at 10% would grow to $259,400, and at 9%, to $236,700 before taxes.  The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less that their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, please call 1-800-DIAL-SEI. Source: FactSet

index definitions
Index definitions
  • The Barclays Capital Global Aggregate Bond Index (formerly Lehman Brothers Global Aggregate Index), an unmanaged market-capitalization-weighted benchmark, tracks the performance of investment-grade fixed income securities denominated in 13 currencies. The index reflects reinvestment of all distributions and changes in market prices.
  • The Barclays Capital U.S. Aggregate Bond Index (formerly Lehman Brothers U.S. Aggregate Bond Index) is a benchmark index composed of U.S. securities in Treasury, Government-Related, Corporate, and Securitized sectors. It includes securities that are of investment-grade quality or better, have at least one year to maturity, and have an outstanding par value of at least $250 million.
  • The CDX IG 12 is a benchmark high-grade derivatives index, which measures the cost of insuring a basket of U.S. investment-grade corporate debt against defaults.
  • The Dow Jones Wilshire Real Estate Securities Index (RESI) is used to measure the U.S. real estate market and includes both real estate investment trusts (REITs) and real estate operating companies (REOCs). It is weighted by float-adjusted market capitalization.
  • The JP Morgan Emerging Market Bond Index is a total return, unmanaged trade-weighted index for U.S. dollar-denominated emerging-market bonds, including sovereign debt, quasi-sovereign debt, Brady bonds, loans and Eurobonds.
  • The MSCI All Country World Index is a market-capitalization-weighted index composed of over 2,000 companies, and is representative of the market structure of 48 developed and emerging-market countries in North and South America, Europe, Africa, and the Pacific Rim. The index is calculated with net dividends reinvested in U.S. dollars.
  • The MSCI EAFE Index is an unmanaged, market-capitalization-weighted equity index that represents the developed world outside North America.
  • The MSCI Emerging Markets Index is a free-float-adjusted market-capitalization-weighted index designed to measure the performance of global emerging-market equities.
  • The Merrill Lynch High Yield Master II Constrained Index is a market-value-weighted index of all domestic and Yankee high-yield bonds, including deferred interest bonds and payment-in-kind securities. Its securities have maturities of one year or more and a credit rating lower than BBB-/Baa3 but are not in default.
index definitions1
Index definitions
  • The BofA Merrill Lynch US 3-Month Treasury Bill Index is an unmanaged market index of U.S. Treasury securities maturing in 90 days that assumes reinvestment of all income.
  • BofA Merrill Lynch Preferred Stock Fixed is designed to replicate the total return of a diversified group of investment-grade preferred securities.
  • Barclays Capital US Treasury Index is an unmanaged index of public obligations of the U.S. Treasury with a remaining maturity of one year or more.
  • Barclays Capital Municipal 3-15 Year Index is an unmanaged index considered representative of the tax-exempt bond market.
  • Barclays Capital High Yield Municipal Bond Index is an unmanaged index consisting of noninvestment-grade, unrated or below Ba1 bonds.
  • Barclays Capital Municipal Bond Index is an unmanaged index considered representative of the tax-exempt bond market.
  • Barclays Capital U.S. TIPS: 1-10 Year is an unmanaged index comprised of U.S. Treasury Inflation Protected securities having a maturity of at least 1 year and less than 10 years.
  • MSCI ACWI ex-US is a market-capitalization-weighted index designed to provide a broad measure of stock performance throughout the world, with the exception of U.S.-based companies.
  • The Russell 1000 Index includes 1000 of the largest U.S. equity securities based on market cap and current index membership; it is used to measure the activity of the U.S. large-cap equity market.
  • The Russell 2000 Index includes 2000 small-cap U.S. equity names and is used to measure the activity of the U.S. small-cap equity market.
  • The S&P 500 Index is a capitalization-weighted index made up of 500 widely held large-cap U.S. stocks in the Industrials, Transportation, Utilities and Financials sectors.
  • The VIX, or Chicago Board Options Exchange Volatility Index, uses option prices on the S&P 500 to estimate the implied volatility of the S&P 500 Index over the next 30 days. Options are derivative contracts that give a buyer the right (and impose upon the seller an obligation, if called upon by the buyer) to buy or sell an underlying security at a specified price, usually for a specified period of time. A higher number indicates greater volatility and an increase in the VIX is often associated with higher risk aversion among investors. Common usage: The Chicago Board Options Exchange Volatility Index (VIX), a barometer of market volatility.
index definitions2
Index definitions
  • Large Cap Core = Russell 1000 Index
  • International Equity = MSCI EAFE Index
  • Emerging Markets Equity = MSCI Emerging Markets Free Index
  • Core Fixed Income = Barclays Capital U.S. Aggregate Bond Index
  • REIT Index = DJ U.S. Select REIT Index
  • High Yield Bond = U.S. High Yield Master II Constrained Index
  • Emerging Market Debt = JP Morgan EMBI Global Index
  • International Fixed Income = Citigroup Bond WGBI Non-US Hedged Index
  • Large Cap Growth = Russell 1000 Growth Index
  • Large Cap Value = Russell 1000 Value Index
  • Small Cap Value = Russell 2000 Value Index
  • Small Cap Growth = Russell 2000 Growth Index
  • 60/40 Diversified Portfolio = Annual returns for the 60/40 diversified portfolio are based on 24% Barclays Capital U.S. Aggregate Bond Index, 19% Russell 1000 Growth, 18% Russell 1000 Value, 12% MSCI EAFE, 6% MSCI Emerging Market, 6% Citigroup WGBI, Non-US, Hedged 4% Merrill Lynch U.S. High Yield Master II Constrained, 4% J.P. Morgan EMBI Global, 3% Russell 2000 Growth, 2% Russell 2000 Value, and 2% Dow Jones DJ U.S. Select REIT Index.
  • Alpha is a measure of performance on a risk-adjusted basis. Alpha takes the volatility (price risk) of a mutual fund and compares its risk-adjusted performance to a benchmark index. The excess return of the fund relative to the return of the benchmark index is a fund's alpha.
  • Duration is a measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. Duration is expressed as a number of years. Rising interest rates mean falling bond prices, while declining interest rates mean rising bond prices.
  • Inflation beta is many percentage points the asset's total return rises or falls, on average, for each percentage point increase in inflation
disclosures
Disclosures

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. This information is for educational purposes only.

For those SEI Funds which employ the ‘manager of managers’ structure, SEI Investments Management Corporation (SIMC) has ultimate responsibility for the investment performance of the Funds due to its responsibility to oversee the sub-advisers and recommend their hiring, termination and replacement.

There are risks involved with investing, including loss of principal. Current and future portfolio holdings are subject to risks as well. Diversification may not protect against market risk. There is no assurance the goals of the strategies discussed will be met.

International: International investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from economic or political instability in other nations.

Emerging Markets: Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume.

Small-Cap: Narrowly focused investments and smaller companies typically exhibit higher volatility.

Bonds: Bonds and bond funds will decrease in value as interest rates rise.

High Yield Bonds: 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.

Real Estate: In addition to the normal risks associated with investing, real estate and REIT investments are subject to changes in economic conditions, credit risk and interest rate fluctuations.

TIPS: TIPS can provide investors a hedge against inflation, as the inflation adjustment feature helps preserve the purchasing power of the investment. Because of this inflation adjustment feature, inflation protected bonds typically have lower yields than conventional fixed rate bonds.

Municipal Bonds: There is no guarantee that the Fund’s income will be exempt from federal or state income taxes. Capital gains, if any, are subject to capital gains tax. Bonds and bond funds will decrease in value as interest rates rise.

There is no guarantee that the Fund’s income will be exempt from federal or state income taxes. Capital gains, if any, are subject to capital gains tax. Bonds and bond funds will decrease in value as interest rates rise.

disclosures1
Disclosures

Investing in the Funds is subject to the risks of the underlying funds. Asset allocation may not protect against market risk. Bonds and bond funds will decrease in value as interest rates rise. Due to their investment strategies, the Funds may buy and sell securities frequently. The use of leverage can amplify the effects of market volatility on the Fund’s share price and may also cause the Fund to liquidate portfolio positions when it would not otherwise be advantageous to do so in order to satisfy its obligations.

Commodity investments and derivatives may be more volatile and less liquid than direct investments in the underlying commodities themselves. Commodity-related equity returns can also be affected by the issuer’s financial structure or the performance of unrelated businesses. The Fund’s use of futures contracts, forward contracts, options and swaps is subject to market risk, leverage risk, correlation risk and liquidity risk.

Index returns are for illustrative purposes only and do not represent actual fund performance. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results.

To determine if the Funds are an appropriate investment for you, carefully consider the investment objectives, risk factors and charges and expenses before investing. This and other information can be found in the Funds’ full and summary prospectuses, which may be obtained by calling 1-800-DIAL-SEI. Read it carefully before investing.

Neither SEI nor its affiliates provide tax advice. Please note that (i) any discussion of U.S. tax matters contained in this communication cannot be used by you for the purpose of avoiding tax penalties; (ii) this communication was written to support the promotion or marketing of the matters addressed herein: and (iii) you should seek advice based on your particular circumstances from an independent tax advisor.

SEI Investments Management Corporation is the adviser to the SEI funds, which are distributed by SEI Investments Distribution Co (SIDCO). SIMC and SIDCO are wholly owned subsidiaries of SEI Investments Company. Neither SEI nor its subsidiaries are affiliated with your financial advisor.