SEI Canada Simplifies Fund Purchase Options and Lowers Class F Fees Portfolio Solutions Remain Competitive in Changing Regulatory Environment

TORONTO, July 10, 2017 /CNW/ -- SEI Investments Canada Company (SEI Canada), a wholly-owned subsidiary of SEI (NASDAQ: SEIC), today announced the lowering of the management fees on Class F Units of a selection of SEI Canada Funds, as well as changes to some embedded fee purchase options for certain other classes, in an effort to keep its solutions competitively priced and relevant in today's regulatory environment. SEI Canada also today announced changes to the risk ratings of certain SEI Canada Funds.

"SEI Canada has been leading the way with managed, fee-based investing since 1994, and our unit class changes represent the next phase of our evolution as we continue to support fee transparency," said Andy Mitchell, Managing Director of SEI Canada. "In the face of unfolding regulatory changes, we continue to provide our head office and advisor partners options to offer their clients comprehensive portfolio solutions with competitive all-in fees."

MANAGEMENT FEE REDUCTIONS FOR CLASS F UNITS

Effective July 1, 2017, Class F and F(H) management fees for certain SEI Canada Funds will have been reduced. No action is required by unitholders to benefit from the reduced management fees. These management fee reductions are detailed in the table below.

Fund

Class F (unless otherwise noted)

Current Maximum annual management fee / MER as at
Dec 31, 2016

Maximum annual management fee effective Jul 1, 2017

Asset Class Funds

Canadian Small Company Equity Fund

1.00

0.95

EAFE Equity Fund

1.10

1.00

Emerging Markets Equity Fund

1.25

1.15

Global Managed Volatility Fund

1.05

0.95

Long Duration Bond Fund

0.80

0.75

Real Return Bond Fund

0.80

0.75

U.S. High Yield Bond Fund

0.90

0.85

U.S. High Yield Bond Fund - Class F(H) (hedged)

0.90

0.85

Goals-Based Funds



Conservative Fund

1.00

0.85

Conservative Monthly Income Fund

1.00

0.85

Moderate Fund

1.00

0.90

Balanced Fund

1.10

0.90

Balanced Monthly Income Fund

1.10

0.95

Growth Fund

1.20

1.00

All Equity Fund

1.20

1.00

Strategic Asset Allocation Funds

Income 100 Fund

1.00

0.85

Income 20/80 Fund

1.00

0.85

Conservative Monthly Income Fund

1.00

0.85

Income 40/60 Fund

1.00

0.90

Balanced 60/40 Fund

1.10

0.95

Balanced Monthly Income Fund

1.10

0.95

Growth 80/20 Fund

1.20

1.00

Growth 100 Fund

1.20

1.00

Note: SEI Canada's Class F units make use of a target management expense ratio ("MER") that is equal to the maximum annual management fee. SEI Canada intends to waive and/or absorb operating expenses in order to maintain the target MER. This practice may be changed or discontinued at any time and without notice at SEI Canada's discretion. Please see the Fund's Management Report of Fund Performance for more information.

P & D CLASS UNITS ARE BEING PHASED OUT

Phase One – On or about Sept. 15, 2017, SEI Canada will "soft cap" all Class P, P(H), D, and D(H) units of all SEI Canada Funds. The soft cap means that these classes of units will not be available for purchase by new investors, while existing unitholders of Class P, P(H), D and D(H) Class units will be able to purchase additional units of the same classes they hold until on or about Nov. 30, 2017.

Phase Two – On or about Nov. 30, 2017, SEI Canada will "hard cap" all Class P, P(H), D, and D(H) units of all SEI Canada Funds. The hard cap means that these units will no longer be available for purchase by any investors. On or about Dec. 6, 2017, all issued and outstanding Class P and D units of each SEI Canada Fund will be automatically reclassified as Class E units and all issued and outstanding Class P(H) and D(H) units of each Fund will be automatically reclassified as Class E(H) units.

At any time prior to the reclassification date on or about Dec. 6, 2017, unitholders will be able to (i) redeem such Units in the ordinary course; (ii) switch such Units for Units of a different class, as further described in "Purchases, Switches and Redemptions" in the SEI Canada Funds' Simplified Prospectus.

E CLASS MINIMUMS WILL BE REDUCED

On or about Sept. 15, 2017, the minimum initial investment for E Class units of all SEI Canada Funds will be reduced to $5,000.

On or about Nov. 30, 2017, the minimum initial investment for E Class units of all SEI Canada Funds will be further reduced to $1,000.

THE RISK RATING METHODOLOGY IS CHANGING

In anticipation of new risk rating methodology changes mandated by the Canadian Securities Administrators that will be effective Sept. 1, 2017, SEI Canada has revised the methodology used to determine the investment risk level of each of the Funds for purposes of disclosure in the Fund Facts and the Funds' Simplified Prospectus. Risk ratings have been determined separately for each class of units of a Fund and are disclosed in the Fund Facts.  The investment risk level of a Fund is reviewed at least annually and whenever there is a material change to a Fund. These changes are not the result of any changes to the investment objectives, strategies or management of the Funds.

The methodology used is the historical volatility risk as measured by the standard deviation of Fund performance. The risk rating categories are as follows:

Risk rating categories

Standard deviation range

Low

0% to less than 6%

Low to medium

6% to less than 11%

Medium

11% to less than 16%

Medium to high

16% to less than 20%

High

20% or greater

More methodology information can be found in the Funds' Simplified Prospectus.

As a result of employing the revised methodology and conducting the regular annual review, there are changes to the risk ratings for certain Funds now disclosed in the Fund Facts and the Funds' Simplified Prospectus dated June 29, 2017. There have been no changes to the investment objectives or strategies of any of the Funds. See the tables below for details of risk rating changes.

Fund classes with risk ratings going higher:

Fund Name

Class

Risk rating as of Jun 24, 2016

Risk rating as of Jun 29, 2017

U.S. Large Company Equity Fund

Class D (H)

Medium

High

U.S. Large Company Equity Fund

Class E (H)

Medium

High

U.S. Large Company Equity Fund

Class F (H)

Medium

Medium to high

U.S. Large Company Equity Fund

Class O (H)

Medium

Medium to high

U.S. Large Company Equity Fund

Class P (H)

Medium

Medium to high

U.S. Small Company Equity Fund

Class E (H)

Medium to high

High

Fund classes with risk ratings going lower:

Fund Name

Class

Risk rating as of Jun 24, 2016

Risk rating as of Jun 29, 2017

Conservative Fund

Class E

Low to medium

Low

Conservative Fund

Class F

Low to medium

Low

Conservative Fund

Class O

Low to medium

Low

Conservative Fund

Class P

Low to medium

Low

Conservative Fund

Class Z

Low to medium

Low

Conservative Monthly Income Fund

Class E

Low to medium

Low

Conservative Monthly Income Fund

Class F

Low to medium

Low

Conservative Monthly Income Fund

Class I

Low to medium

Low

Conservative Monthly Income Fund

Class O

Low to medium

Low

Conservative Monthly Income Fund

Class P

Low to medium

Low

Conservative Monthly Income Fund

Class R

Low to medium

Low

Conservative Monthly Income Fund

Class S

Low to medium

Low

Conservative Monthly Income Fund

Class Z

Low to medium

Low

Emerging Markets Equity Fund

Class D

High

Medium to high

Emerging Markets Equity Fund

Class E

High

Medium to high

Emerging Markets Equity Fund

Class F

High

Medium to high

Emerging Markets Equity Fund

Class I

High

Medium to high

Emerging Markets Equity Fund

Class O

High

Medium to high

Emerging Markets Equity Fund

Class P

High

Medium to high

Emerging Markets Equity Fund

Class R

High

Medium to high

Emerging Markets Equity Fund

Class Z

High

Medium to high

Global Managed Volatility Fund

Class D

Medium to high

Medium

Global Managed Volatility Fund

Class E

Medium to high

Medium

Global Managed Volatility Fund

Class F

Medium to high

Medium

Global Managed Volatility Fund

Class O

Medium to high

Medium

Global Managed Volatility Fund

Class P

Medium to high

Medium

Global Managed Volatility Fund

Class S

Medium to high

Medium

Global Managed Volatility Fund

Class Z

Medium to high

Medium

Growth 80/20 Fund

Class E

Medium

Low to medium

Growth 80/20 Fund

Class F

Medium

Low to medium

Growth 80/20 Fund

Class I

Medium

Low to medium

Growth 80/20 Fund

Class O

Medium

Low to Medium

Growth 80/20 Fund

Class P

Medium

Low to Medium

Growth 80/20 Fund

Class R

Medium

Low to Medium

Growth 80/20 Fund

Class S

Medium

Low to Medium

Growth Fund

Class E

Medium

Low to Medium

Growth Fund

Class F

Medium

Low to Medium

Growth Fund

Class I

Medium

Low to Medium

Growth Fund

Class O

Medium

Low to Medium

Growth Fund

Class P

Medium

Low to Medium

Growth Fund

Class R

Medium

Low to Medium

Growth Fund

Class S

Medium

Low to Medium

Growth Fund

Class Z

Medium

Low to Medium

Income 20/80 Fund

Class E

Low to medium

Low

Income 20/80 Fund

Class F

Low to medium

Low

Income 20/80 Fund

Class I

Low to medium

Low

Income 20/80 Fund

Class O

Low to medium

Low

Income 20/80 Fund

Class P

Low to medium

Low

Income 20/80 Fund

Class R

Low to medium

Low

Income 20/80 Fund

Class S

Low to medium

Low

Income 40/60 Fund

Class E

Low to medium

Low

Income 40/60 Fund

Class F

Low to medium

Low

Income 40/60 Fund

Class I

Low to medium

Low

Income 40/60 Fund

Class O

Low to medium

Low

Income 40/60 Fund

Class P

Low to medium

Low

Income 40/60 Fund

Class R

Low to medium

Low

Income 40/60 Fund

Class S

Low to medium

Low

Long Duration Credit Bond Fund

Class O

Low to medium

Low

Moderate Fund

Class E

Low to medium

Low

Moderate Fund

Class F

Low to medium

Low

Moderate Fund

Class I

Low to medium

Low

Moderate Fund

Class O

Low to medium

Low

Moderate Fund

Class P

Low to medium

Low

Moderate Fund

Class R

Low to medium

Low

Moderate Fund

Class S

Low to medium

Low

Moderate Fund

Class Z

Low to medium

Low

U.S. Small Company Equity Fund

Class D

Medium to high

Medium

U.S. Small Company Equity Fund

Class E

Medium to high

Medium

U.S. Small Company Equity Fund

Class F

Medium to high

Medium

U.S. Small Company Equity Fund

Class I

Medium to high

Medium

U.S. Small Company Equity Fund

Class O

Medium to high

Medium

U.S. Small Company Equity Fund

Class P

Medium to high

Medium

U.S. Small Company Equity Fund

Class R

Medium to high

Medium

 

About SEI Canada
SEI founded its Canadian business in 1983, pioneering innovative asset management techniques for institutional investors. Today, SEI Canada offers integrated investment management and strategic advice solutions to help institutional investors achieve their organizational goals and fulfil fiduciary responsibilities. Capitalizing on its investment expertise, SEI Canada began offering investment solutions to retail investors through investment advisors in 1994. The investment approach provides multi-manager, globally diversified strategies with an appropriate home-country bias for Canadian retail investors. SEI Canada's Goals-Based strategies, Strategic Asset Allocation strategies and Asset Class Funds are available through select dealer relationships. For more information, visit seic.com/enCA.

About SEI
SEI (NASDAQ: SEIC) is a leading global provider of investment processing, investment management and investment operations solutions that help corporations, financial institutions, financial advisors and ultra-high-net-worth families create and manage wealth. As of March 31, 2017, through its subsidiaries and partnerships in which the company has a significant interest, SEI manages, advises or administers US$779 billion in hedge, private equity, mutual fund and pooled or separately managed assets, including US$297 billion in assets under management and US$478 billion in client assets under administration. For more information, visit seic.com.

Company Contact: 

Media Contact:

Dana Grosser

Anne Hoare

SEI 

SEI

+1 610-676-2459

+1 416-847-6375

dgrosser@seic.com

ahoare@seic.com

 

SOURCE SEI Investments Canada Company

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