The strategic manager of managers portfolios that SEI Investments recently launched on the Cofunds platform do not invest in alternative assets as the multi-manager feels they do not add value above the existing assets it holds
The seven Dublin-based strategic risk-graded portfolios range from defensive to aggressive strategies. The lower-risk funds prioritise capital preservation while the high-risk funds focus on the growth of assets. They do this by blending segregated mandates across up to four broad asset classes – fixed income, equities, property and liquidity, which refers to short-term money market instruments such as Treasury Bills.
There is no place for alternative asset classes, including the more liquid Ucits III hedge fund strategies, because SEI believes they would not add anything to the portfolios that the existing range of asset classes is unable to achieve.
The funds aim to maximise returns, limit volatility and manage risk through a process where SEI constantly assesses what other asset classes are available and understanding how they fit together in a portfolio.