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Uncommon Knowledge: Learn what new investors can expect when they work with SEI and Park Avenue Securities. …

Uncommon Knowledge: Learn what new investors can expect when they work with SEI and Park Avenue Securities.


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Steven D. Lichtenstein is an Investment Advisor and Registered Representative of Park Avenue Securities LLC (PAS). Securities products/services and advisory services are offered by PAS,95-25 Queens Blvd, 10th Fl., Rego Park, N.Y. 11374, 1-718-268-9255, a Registered Investment Advisor and broker-dealer. Forest Hills Financial Group Inc. is not an affiliate or subsidiary of PAS. PAS is a member of FINRA, SIPC. Steven D. Lichtenstein is a Field Representative of The Guardian Life Insurance Company of America, New York, N.Y. 10004.




Steven D. Lichtenstein is an authorized user of The Living Balance Sheet, an electronic wealth organizational platform that provides a wide-angle view of your financial world and enables him to stress test your current financial approach. Gain insight and clarity on your complete financial picture, which when coupled with his professional experience and credentials, may provide you with the ability to make well-informed personal and business decisions and to take appropriate actions to achieve your desired results.

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  • SEI’s investment team (IMU as investment managers) has over 20 years of manager selection and portfolio construction experienceInvestment professionals have extensive industry background and many have CFA, MBA qualifications Team is organised into regional and asset class specialists and globally located to improve research. Investment professionals tied to client experience through performance related compensation
  • Identify truly differentiated sources of return likely to persist over timeUnderstand the impact of a variety of market conditions on its behaviorIdentify depth and breadth of the universe of managers available for each source
  • Recovery - Once new leadership is found and restructuring takes hold, markets move swiftly upward in ahead of a rebound in the economy as a whole. Expansion - Prolonged period of beneficial economic activity. Markets are generally increasing and relatively stable throughout most of the expansion. Stress – When bubbles eventually burst markets quickly retreat. Fear takes hold, investors shun the practices that created the preceding bubble. Markets here are generally down and very high risk. Distress - After the bubble has largely deflated, the markets and economy must look for new leadership to head forward. Consumer confidence is generally low, economic output is low and unemployment is often high.
  • Recovery - Once new leadership is found and restructuring takes hold, markets move swiftly upward in ahead of a rebound in the economy as a whole. Expansion - Prolonged period of beneficial economic activity. Markets are generally increasing and relatively stable throughout most of the expansion. Stress – When bubbles eventually burst markets quickly retreat. Fear takes hold, investors shun the practices that created the preceding bubble. Markets here are generally down and very high risk. Distress - After the bubble has largely deflated, the markets and economy must look for new leadership to head forward. Consumer confidence is generally low, economic output is low and unemployment is often high.

Transcript

  • 1. SEI Investment PhilosophySteven Lichtenstein ChFC and SEI“What makes us different ?”
  • 2. Who We AreSEI is a leading global provider of wealth management solutions. We help professional wealth managers, institutional investors,and private investors create and manage wealth – and enable their long-term success – by providing solutions that are bothcomprehensive and innovative.A Market Leader• Administers $253 billion in client assets1• Manages $195 billion assets1• Processes 1.5 million end-investor accounts2• Leading global provider of Bank Trust technology• 9 of the 20 largest North American banksare clients2SEI Advisor Network• 20 years of experience in providing outsourcedsolutions to advisors• Over 4,900 advisors using SEI‟s solution• Over 170,000 end-client accounts• $33.1 billion in advisor‟s AUM1• One-stop accountability with SEI PrivateTrust Company• 400+ dedicated professionals supportingthe SEI Advisor solution• SEI is the #1 U.S. Advisory Third-PartyManaged Account Provider41As of September 30, 20122As of September 30, 20123As of December 31, 201143Q 2012 Summary – Cerulli Associates2A Successful Company• Founded in 1968, a public company since 1981(NASDAQ: SEIC)• 2011 revenues: $930 million3• 2011 net income: $205 million3A Global Company• 2,400+ employees worldwide1
  • 3. SEI › Financially StrongSEI does not:• Rely on the market to provide daily liquidity to fund its operations• Take principal risk, nor does it actively trade the assets on its balance sheet• Use leverage within its balance sheet• Underwrite the risks of leverage through lending or insurance underwriting activitiesSEI has a financially strong balance sheet reflected through:• Cash available• Highly collectable receivables• No direct issued debtSEI Private Trust Company (SPTC)• Assets are custodied in a trust institution• Assets are custodied in the investors name and are segregated from SEI• This means SPTC creditors have no claim to investor assets• SPTC may not pledge, lend or margin assets that are held in custody• SPTC is regularly audited by independent and internal auditors and subject to examination by the Office ofthe Comptroller of the Currency3
  • 4. Private Banks Institutional InvestorsFinancial AdvisorsA Leading Provider of:• Custody Services• Account Administration• Statement Production• Performance ReportingA Leading Provider to:• Corporate Plans• Unions/Taft-Hartley Plans• Endowments• Foundations• HealthcareA Leading Provider of:• Investment Programs• Administration &Technology• Practice Management9 of the 20 largest NorthAmerican banks are clientsPlans > $20 million5,000+ Advisors with$33.11 billion in advisors‟ AUM1As of 09/30/12SEI › Key SEI Business Segments Relevant to Advisors4
  • 5. *Representative clients are selected by SEI to illustrate a sampling of SEI‟s client base, but may not necessarily endorse all of the services provided by SEI.List as of January 2012.Global Institutional Business › Benefits Advisors5
  • 6. Our Investment ManagementProcess6
  • 7. SEI Goals-Based Investment Process1AssetAllocation3ManagerSelection4PortfolioConstruction6RiskManagement5TaxManagementIdentification of Client ObjectivesIdentification of the Relevant RisksIdentification of the AppropriatePortfoliosOur process matches client objectives with the appropriate risk measureand personalized portfolio implementation.Your AdvisorProvides:SEI Providesan Active Management Process:2PortfolioDesign7
  • 8. SEI Investment Management Unit (IMU)Experienced• SEI‟s investment team has over 20years of manager selection andportfolio construction experienceCredible• Investment professionals haveextensive industry background andmay have CFA or MBA qualificationsAccountable• Investment professionals tied toclient experience throughperformance -related compensationGlobal• Organized into regional and assetclass specialists and globally locatedto improve research insightsInvestmentStrategyOversightCommittee(ISO)Client InvestmentStrategyInvestmentCommunicationsPortfolioStrategyInvestmentStrategyEquityFixed IncomeAlternativeRiskManagementTrading andOperationsProductManagement8
  • 9. SEI‟s Investment ApproachActive Asset Allocation1AssetAllocation
  • 10. Asset Allocation ›Primary Determinant of Total Portfolio RiskThe asset classes you pick explain most of variability of portfolio riskUsing past returns as a guide for asset class performance is problematicSource: Brinson, Singer, and Beebower (1991)Asset AllocationSecuritySelectionMarket TimingOther1AssetAllocation
  • 11. 1900s – 1960sValue-AddDeliveredtoClient1960s-1980s• Stocks evaluated independently1980s-1990s Today• Theory of portfolio selection(Markowitz)• (Brinson, Beebower, Singer)• Investors are not “rational”(Kahneman, Tversky)Goals-BasedInvestingStrategic AssetAllocationEfficient PortfolioConstructionConcentratedStockPortfoliosInvestment Approach ›The Evolution of Portfolio Management Theory111AssetAllocation
  • 12. MODERN PORTFOLIO THEORY BEHAVIORAL FINANCE THEORYPrinciples • Build efficient portfolios that maximizereturn for a given level of risk• Diversification brings risk reduction• Analysis of the ways investors think andbehave• Analysis of common investor biasesImplications forthe Investor• One unique rational investor with asingle risk tolerance estimate• Investors have multiple goals and differentapproaches to risk depending of theirgoalsRelevantIllustrationInvestor preferences and biases• Loss aversion• Mental accounting• Overconfidence• Overreaction• Belief perseveranceSEI‟s Goals-Based Approach ›Integrating Traditional and Behavioral FinanceThe Efficient Frontier12RiskReturn1AssetAllocation
  • 13. Investment Offering for Private Clients ›Allocation and Components Differ by ObjectiveMarket Growth Money MarketAlternativesEmerging Market DebtHigh Yield BondInv. Grade Fixed IncomeEmerging Market EquityInternational EquitySmall Cap EquityLarge Cap EquityInflation-Sensitive AssetsConservative Low Volatility EquityAlternativesHigh Yield BondMulti-Asset IncomeInflation-Sensitive AssetsInv.Grade Fixed IncomeMoney MarketShort Duration Bonds• Stability via Money Market• Income via short / medium duration bondsand multi-asset exposures• Return and income via high yield/credit• Alternatives/low volatility equity return/beta• Global equity including emerging for growth• Diverse exposures to manage through variousenvironments via Multi-Asset Accumulation Fund• Emerging debt/high yield debt offer diversification• Alternatives for return and risk managementFor illustrative purposes only.131AssetAllocation
  • 14. Dynamic Asset Allocation Approach › Portfolio Design0%10%20%30%40%50%60%70%80%90%100%Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10SEI Private Client Strategy - DefensiveMoney Market ShortDuration Bonds * Investment Grade Fixed IncomeHigh Yield bonds Real Estate Inflation Linked BondsManaged Volatility Equity• Allocations actively managed over time as market conditions and asset-classcharacteristics change• Implemented using carefully selected components consistent with strategy objectives• Benefits from ongoing research and development resulting in addition of new components*For illustrative purposes only. Includes government and credit oriented funds14
  • 15. Discovering Your Goals ›Matching Strategies to Investor GoalsClient Goal AClient Goal BClient Goal CDefine andPrioritize GoalsRisk ARisk BRisk CEstablish RiskMeasures to EachGoalStrategy AStrategy BStrategy CIdentify Best Strategy forGoal & Risk ManagementObjective 
  • 16. SEI‟s Investment ApproachActive Portfolio Design2PortfolioDesign
  • 17. SEI‟s Investment Philosophy: Key Tenet ›Past Performance Is Not a Guarantee of Future Results• Ranking managers bytheir five-year returnsprovides little insight intofuture performance• SEI believes that a fullassessment ofqualitative as well asquantitative factors isrequired to identify andmonitor the bestmanagersThe chart takes the top quartile of US Large Cap Equities managers based on 2002-2006 performance and tracks theirsubsequent quartile rankings over the following 5-year period (2007-2011). It also identifies where the top quartile managersover the current 5-year period (2007-2011) ranked in the previous 5-year period (2002-2006)Source: SEI, Morningstar Direct, US Large Blend Universe5 Years2002 - 20065 Years2007 - 20115 Years2007 - 20115 Years2002 - 2006# 18% of top quartile managers from2002 – 2006 are no longer managingwithin the Morningstar US Large BlendCategory* 46% of the top quartile managers from2007-2011 did not have a full five yeartrack record during the previous periodTopQuartileTopQuartile17%11%13%13%46%*25%16%16%26%18%#2PortfolioDesign
  • 18. SEI Manager of Managers ›The ConceptManager 1 Manager 2Manager 3 Manager 4SEI Fund• SEI selects specialist managers,monitors performance and riskand alters composition to adapt tomarket conditions• Transparency into underlyingmanager accounts providesinsight and risk management• Separate-account frameworkallows efficient manager transitionwith opportunity to controltransaction costs182PortfolioDesign
  • 19. Portfolio Construction ›A Combined Building Block ApproachLooking beyond traditional approaches to investment managementin an effort to build more efficient portfolios.Large CapGrowthSmall CapGrowthLarge CapValueSmall CapValueSelectionBottom Up Stock/bond PickingCarryRisk Premium HarvestingTrendMomentum DrivenMacroTop Down Thematic ManagementStyle-based Perspective Alpha-based PerspectiveThe line between traditional and alternative asset management is blurring and many investmentmanagers are increasingly using techniques currently available in seeking to add incremental value.
  • 20. SEI‟s Investment ApproachActive Investment ManagerSelection3ManagerSelection
  • 21. Experienced Analysis• 100 experiencedprofessionals worldwide• 20+ years assessinginvestment firms• Site visits and conferencecalls to evaluate personneland investment process• Assess sustainability ofcompetitive advantagesQuantitative Analysis• Focus on risk adjustedreturns• Statistical process controltechniques identify skill• Separate quality of decisionsfrom outcomes• Analytical technology tounderstand drivers of return• Risk managementassessmentQualitative Analysis• Examine and understandthe investment philosophy• Analyze the proprietaryinvestment process• Review the team‟sbackground, tenure,compensation, and otherfactors to determine stabilityand commitmentOngoing Monitoring• Monitor firm and processchanges• Monitor competitiveadvantages• Return and risk monitoring• Regular site visits andmanager calls• Approved list of backupmanagersSEI Manager Selection Process ›Manager Discovery and SelectionSources: Investment Company Institute 2011 Fact Book; Funds Library Products and Services; FundLibrary.comUniverse ofApproximately22,000+ InvestmentProducts1,000 ManagerVisits/ContactsYear100SpecialistManagers213ManagerSelection
  • 22. Access to all SEI specialist managers would require total client assets of nearly $1 billion!Examples of Managers ›Utilized in Funds and Managed AccountsManager/Headquarters Investment Mandate/BenchmarkAssets UnderManagementDirect AccessMinimumParametric Portfolio AssociatesSeattle, WAUS Large Cap Core/Tax TransitionRussell 1000$53 Billion $$1 MillionLSV Asset ManagementChicago, ILUS Large Cap ValueRussell 1000 Value$62 Billion $50 MillionBrown Investment AdvisoryBaltimore, MDUS Large Cap GrowthRussell 1000 Growth$26 Billion $1 MillionDelaware Management CompanyPhiladelphia, PAUS Large Cap GrowthRussell 1000 Growth$177 Billion $50 MillionNeuberger Berman Management, LLCNew York, NYInternational EquityMSCI EAFE$202 Billion $25 MillionLee Munder InvestmentsBoston, MassachusettsUS Small Cap ValueRussell 2000 Value$4 Billion $5 MillionThornburg InternationalSanta Fe, NMInternational EquitiesMSCI EAFE$80 Billion $25 MillionMcDonnell Investment ManagementOak Brook Terrace, ILActive Municipal BondsLehman Intermediate Municipal Bonds Index$13 Billion $5 MillionSEI - As of September 2012Managers do not set an account minimum, but rather evaluate each account on a case-by-case basis.22
  • 23. SEI‟s Investment ApproachActive Portfolio Constructionand Management4PortfolioConstruction
  • 24. Fund Construction ›Strategic Manager Allocation ExampleManager/Fund WeightTrackingError Alpha SourceTarget RiskContributionManager 1 30% 5.0% Risk Premium 25%Manager 2 35% 4.0% Selection 25%Manager 3 15% 8.5% Momentum 25%Manager 4 20% 6.5% Macro 25%Fund 100% 3.0% N/A 100%30%35%15%20%SEI FundStrategic Manager AllocationManager 1Manager 2Manager 3Manager 4• SEI establishes relative returnand risk expectations for theFund over the medium and longterm in a Fund InvestmentThesis• It outlines which alphaprocesses will be included in theFund and what the long-termstrategic allocation should be• The Fund Investment Thesisprovides a framework formanager selection and managerallocation or sizing• Through the allocation todifferentiated managers, SEIseeks to construct a Fund withlower relative risk than theunderlying managersindividually4PortfolioConstruction24
  • 25. Portfolio Construction ›Impact of the Economic and Market Cycle•SEI conducts scenario analysis on each manager to measure performance behavioracross multiple economic cycles•Output of analysis will have an impact on the timing of manager decisions and the weightallocated to each manager in the Fund•Manager allocations can be adjusted over time to take advantage of current economicenvironmentNOTE: The size of the quadrant denotes therelative time the economy spends within thequadrant.0.00%20.00%40.00%60.00%80.00%100.00%RiskContribution%Manager Allocation Over TimeManager 1 Manager 2 Manager 3 Manager 4SEI Manager Allocation Over TimeExpansionDistressStressRecovery254PortfolioConstruction
  • 26. SEI‟s Investment ApproachActive Tax Management5TaxManagement
  • 27. Tax Management ›It‟s Not What You Make, It‟s What You KeepSource: Parametric Portfolio Associates: 60% Russell 3000; 40% Barclays Capital Aggregate; No Liquidation. Interest income and dividends are taxed annuallyat historical top marginal tax rates; capital gains are realized at 50% per year and are taxed at the historical long-term capital gains tax rate at the time. Pastperformance is no guarantee of future results.A hypothetical tax-free $100,000 portfolio (invested 60% in stocks and 40% in bonds) held for 33 years would have grown to about $3.2million. If the portfolio wastaxed like an average mutual fund, it would have lost 49% of its value, due to taxes paid and earnings lost on that money. Tax-managed investment strategies aredesigned to minimize capital gains distributions and maximize after-tax returns.*As of 12/31/11. Since inception 12/2002. There is no guarantee that distributions will not be made in the future.Taxes Reduce Performance Over Time – Growth of $100,000Before-Tax Portfolio:$3,174,000After-Tax Portfolio:$1,613,00049% Lost to Taxes• Tax Lot Accounting• Loss Harvesting• Wider Rebalancing Ranges• Tax-Aware Trading• Gain/Loss Offset• Transition of Low-cost-basisStocksSEI‟s Solution to the ProblemSeparate Account Results• 121 bps of annualized after-tax (above the manageralpha) since inception.*Mutual Fund Results• 12th year in a row – ZEROcapital gains distributions inour Tax Managed Large CapFund$0.00$500,000.00$1,000,000.00$1,500,000.00$2,000,000.00$2,500,000.00$3,000,000.00$3,500,000.001979 1987 1995 2003 2011275TaxManagement
  • 28. Active Tax Management ›Apply Our Process within a Tax-sensitive FrameworkTax-ManagedMarket Growth Tax-Managed Large CapTax - Managed Small CapInternational EquityEmerging EquityIntermediate Term MuniTax-Advantaged IncomeEmerging Market DebtTax-Free Money Market• Use tax-efficient asset classessuch as Tax-Advantaged Incomeand Tax-Managed Large Capequity• Limit asset allocation changes andwiden rebalancing bands in aneffort to minimize capital gains• Select managers, such asParametric Portfolio Associates,who actively harvest losses in aneffort to limit taxable events5TaxManagement28For illustrative purposes only
  • 29. SEI‟s Investment ApproachActive Risk Management6RiskManagement
  • 30. SEI Active Risk Management ›Governance and OversightInvestment Strategy OversightCommittee (ISO)RiskManagementInvestmentStrategy• Investment Strategy OversightCommittee (ISO) is thegovernance group overseeingactive management process• Risk Management carried out atmanager level, portfolio level andat strategy level• Investment Strategy vets activemanagement decisions with ISOthat will impact client portfolios6RiskManagement30
  • 31. Continuous Manager MonitoringPortfolio Monitoring ›Continuous Manager Monitoring EnhancesPortfolio IntegritySource: SEI, Average percentages based on last five years of portfoliomanagement activity. For illustrative purposes onlyManager Changes Over TimeInvestment Team Execution Organizational ChangeOpportunistic Change in Process StyleDaily•Access to underlying portfolio holdingWeekly•Performance & risk attribution analysisMonthly•Buys & sells review•Portfolio characteristics & market trend overviewQuarterly•Conf call to evaluate manager decision & outlookAnnually•Onsite visit to access manager & dedicatedinvestment team (performed annually or more often)Ongoing• Peer analysis• Investment strategy oversight & review• Backup list• Watch list316RiskManagement
  • 32. Asset allocation that is customized to your situationAccess to top quality managers with some of the best ideas from around the globePersonalized investment strategies driven by client goalsDiversification at multiple levelsOngoing risk management and oversightAdvisor independence and process transparencyInvestment Process › Summary1AssetAllocation3ManagerSelection4PortfolioConstruction6RiskManagement5TaxManagement2PortfolioDesign32
  • 33. Implementation andSummary
  • 34. Portfolio Construction › Moderate Growth Strategy ExamplePrivate Client Moderate Strategy7 Asset ClassesU.S. Stocks 13%Intl Stocks15%U.S. Bonds 29%Int‟l Bonds4%Alternative 8% Multi-Asset 30% Cash 1%14 Sub-Asset ClassesU.S.ManagedVolatilityLarge CapGlobalManagedVolatilityShort DurationGovt.EnhancedIncomeU.S. FixedIncomeHigh Yield Bond Real ReturnEmergingMarkets DebtMulti StrategyAlternativeMulti-AssetCapital StabilityMulti-AssetInflationManagedMulti-AssetAccumulationPrime ObligationMoney Market9% 4% 15% 5% 4% 8% 8% 4% 4% 8% 10% 10% 10% 1%29 Countries 68 Countries100%36 Styles and ManagersLow BetaEarningsGrowthLow BetaShort TermIncomeBank Loans Long Duration Opportunistic TIPS Global AlternativeRiskManagementDiversifiedInflationManagementRisk Parity Prime DomesticAnalyticInvestors,Inc.AQR CapitalManagementAcadian AssetManagement,Inc.WellingtonManagementAresManagement,LLCJennisonAssociates LLCAresManagement,LLCWellingtonManagementAshmoreInvestmentManagement,Ltd.SEIInvestmentsManagementCorp.AllianceBernstein, L.P.AllianceBernstein, L.P.AQR CapitalManagementBank of AmericaCapital Management,LLCManagedVolatilityBroad RelativeValueLow Beta Enhanced CashHigh YieldRelative ValueOpportunistic Opportunistic Alternative Risk ParityAronson+Johnson+Ortiz, L.P.Aronson+Johnson+ Ortiz,L.P.AnalyticInvestors, Inc.WellingtonManagementJP MorganInvestmentManagement,Inc.Brigade CapitalManagement,LLCING InvestmentManagementTurnerInvestments,L.P.PanAgora AssetManagementContrarianValueHigh QualityGrowthExtendedDurationFundamentalHigh YieldGlobalLSV AssetManagement, L.P.BrownInvestmentAdvisory,IncorporatedMetropolitanWest AssetManagementDelawareManagementCompanyStone HarborInvestmentPartners, L.P.Relative Growth Strategic Value Relative ValueDelawareManagementCompany0Wells CapitalManagement, Inc.GuggenheimInvestmentManagement,LLCContrarianValueSector RotatorHigh YieldRelative ValueLSV AssetManagement,L.P.Western AssetManagementJP MorganInvestmentManagement,Inc.Broad BiasExploitationWaddell & ReedInvestmentMgmt.Sector RotationWestEndAdvisors LLC05689 Securities (as of 8/31/12)243 367 466 195 243 1691 897 13 719 279 56 318 49 153
  • 35. Client Process › Monitoring with Goals-based Statements35Tracking progressto a goal – “Am I onTrack?”
  • 36. In Summary ›Our Philosophy and Investment Process Offer You:Institutional approachAccess to top-quality managersAutomated rebalancing to help meet your goalsFlexibility to meet your needsPersonalized approachOngoing oversightAdvisor independence and process transparency
  • 37. DisclosureThis material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of futureevents, or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding theFunds or any stock in particular, nor should it be construed as a recommendation to purchase or sell a security, including futures contracts.There is no assurance as of the date of this material that the securities mentioned remain in or out of SEI Funds.For those SEI Funds which employ the „manager of managers‟ structure, SEI Investments Management Corporation (SIMC) has ultimateresponsibility for the investment performance of the Funds due to its responsibility to oversee the sub-advisers and recommend their hiring,termination and replacement. SIMC is the adviser to the SEI Funds, which are distributed by SEI Investments Distribution Co. (SIDCo). SIMCand SIDCo are wholly owned subsidiaries of SEI Investments Company.To determine if the Funds are an appropriate investment for you, carefully consider the investment objectives, risk factors andcharges and expenses before investing. This and other information can be found in the Funds’ prospectuses, which can be obtainedby calling 1-800-DIAL-SEI. Read them carefully before investing.There are risks involved with investing, including loss of principal. Current and future portfolio holdings are subject to risks as well.International investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally acceptedaccounting principles or from economic or political instability in other nations. Narrowly focused investments and smaller companies typicallyexhibit higher volatility. Bonds and bond funds will decrease in value as interest rates rise. High-yield bonds involve greater risks of default ordowngrade and are more volatile than investment-grade securities, due to the speculative nature of their investments.Diversification may not protect against market risk. There is no assurance the objectives discussed will be met. Past performance does notguarantee future results Index returns are for illustrative purposes only and do not represent actual portfolio performance. Index returns do notreflect any management fees, transaction costs or expenses. One cannot invest directly in an index.Neither SEI nor its affiliates provide tax advice. Please note that (i) any discussion of U.S. tax matters contained in this communication cannotbe used by you for the purpose of avoiding tax penalties; (ii) this communication was written to support the promotion or marketing of thematters addressed herein: and (iii) you should seek advice based on your particular circumstances from an independent tax advisor.Custody services provided by SEI Private Trust Company (SPTC), a federally chartered limited purpose savings association and wholly ownedsubsidiary of SEI Investments Company.