SEI Investments Expands Direct Index Equity SMA Options for Enhanced Tax Efficiency

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Discover how SEI Investments Company is expanding its Direct Index Equity SMA options to provide better tax optimization for advisors and investors.

Introduction

In the evolving landscape of investment strategies, equity investment strategies play a pivotal role in optimizing both performance and tax efficiency. SEI Investments Company, a leader in financial technology and asset management, has recently announced significant expansions to its Direct Index Equity Separately Managed Account (SMA) options. This move is poised to enhance tax optimization capabilities for financial advisors and their clients, catering to a diverse range of investors, from mass-affluent to ultra-high-net-worth individuals.

Expanding Direct Index Equity SMAs

SEI Investments has broadened its suite of Direct Index Equity SMA strategies, integrating new options to better align with investor needs. The expanded lineup includes:

SEI Investment Management Corporation:
Systematic S&P 500® Core
Systematic U.S. SMID Cap Core
Systematic U.S. Small Cap Core
Parametric Portfolio Associates:
Custom Core U.S. Large Cap – S&P 500®
Custom Core U.S. Mid and Small Cap 1000
Custom Core U.S. Small Cap

These additions complement SEI’s existing robust assortment of direct index equity and fixed income solutions, offering investors more tailored and tax-efficient options.

Enhancing Tax Efficiency

A cornerstone of SEI’s expansion is the emphasis on tax optimization. The newly introduced SMAs are designed to:

Harvest Tax Losses: During market volatility, these strategies opportunistically realize losses to offset gains, reducing the overall tax burden.
Defer Capital Gains: By strategically timing the realization of gains, the strategies help in deferring tax liabilities, enhancing after-tax returns.

Moreover, SEI provides advisors with a personalized “Estimated Taxes Saved” report, offering client-specific insights into year-to-date tax savings achieved through active tax management.

Benefits for Advisors and Investors

SEI’s enhanced Direct Index Equity SMA options offer numerous advantages:

Customization: SMAs allow for individualized strategies managed by distinct professionals, ensuring portfolios are aligned with specific client goals.
Scalability: The integration of these strategies into Unified Managed Accounts (UMAs) enables advisors to deliver comprehensive and scalable investment solutions.
Client Experience: With technology-driven delivery, the focus remains on enhancing the client experience through personalized and efficient investment management.

Integration with Oriel IPO’s Investment Strategies

Platforms like Oriel IPO exemplify the democratization of investment, similar to SEI’s commitment to accessibility and transparency. Oriel IPO connects investors with entrepreneurs through SEIS and EIS opportunities, complementing SEI’s equity investment strategies by providing avenues for early-stage investments. This synergy highlights the diverse range of equity investment strategies available today, catering to both seasoned investors and newcomers seeking tax-efficient investment options.

Future Outlook

As the demand for personalized and tax-efficient investment solutions grows, SEI Investments is well-positioned to meet these needs. The continuous expansion of its Direct Index Equity SMA offerings underscores SEI’s dedication to providing best-in-class investment strategies that anticipate and solve specific client needs, ultimately supporting advisors in delivering superior client outcomes.

Conclusion

SEI Investments’ strategic expansion of its Direct Index Equity SMA options marks a significant advancement in equity investment strategies, particularly in enhancing tax efficiency for investors and advisors alike. By offering customizable, scalable, and tax-optimized solutions, SEI continues to lead the way in innovative investment management.

Ready to optimize your investment strategies? Join Oriel IPO today and explore a world of tax-efficient investment opportunities.