Strategy Themes

Client Investment Review

1

st

Quarter 2014

INSERT CLIENT NAME

DATE

1

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

2

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.

3

Follow Up From Previous Meeting

Reconnecting on Your Goals

4

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?

5

Your Goals

›

Ongoing Monitor and Review



Discovery

Identify your goals and resources

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



Monitoring &

Review



Assessment

Identify the appropriate investment strategies to meet your goals



Implementation



Evaluation

Implement the Goals-

Based investment solution

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

.

6

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.

7

Economic Review

Economic & Market Insights

8

Global Market Review

•

Continued economic expansion in advanced economies is creating optimism, while emerging economies sort through political, financial and social reforms.

•

Global equities rebounded from an early setback, reaching positive territory by quarter end.

– Europe and the U.S. led with 2% gains; Japan lagged with a

6% decline.

– Emerging markets continued to lag.

•

Global central banks have generally remained committed to providing stimulus in one form or another.

•

Geopolitical concerns and a further easing of inflation pressures around the globe sparked a stronger rally in sovereign debt than anticipated.

•

Riskier bonds led as investor demand remained firm.

– Emerging-market debt and high yield gained 3.7% and 3.0%, respectively.

•

Since the start of the bull market in stocks five years ago, equities have outperformed the U.S. Treasury 10-year bond by almost 190 percentage points.

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 = BofA Merrill Lynch US Dollar 3-Month Deposit Offered Rate Constant Maturity Index. 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.

9

Fixed-Income Market Review

•

Treasury yields generally fell despite firming growth and continued bond-purchase tapering by the Federal Reserve

(Fed).

– Barclays U.S. Aggregate Index returned 1.84%.

•

Investor demand drove high-yield bonds and emergingmarket debt to strong results.

•

Although we think the Fed will remain dovish, we expect some firming of bond yields toward 3.25% —a more normal relationship vis-

à-vis expected inflation.

– Nominal yields (U.S. Treasury yields) are still overvalued.

– The implied inflation rate within nominal yields is reasonable.

– However, real yields (Treasury inflation-protected securities yields) appear artificially low due to the Fed’s quantitative easing efforts (despite rising since talk of tapering easing).

•

Given this, duration positioning is generally shorter than the benchmark.

•

With current spread levels tighter, security selection will play a larger role in driving performance.

– Overweights to the spread sectors were maintained but remain actively managed based on spread levels.

– Non-agency commercial and residential mortgage-backed securities, as well as corporate debt of financials, are preferred.

Source: FactSet, SEI

10

2.72%

0.60%

Equity Market Review

•

Global equity markets shook off concerns of slower growth in China and tapering by the Federal Reserve to close higher.

•

In the U.S., large cap outpaced small cap, and value beat growth, in terms of style.

• Given the market’s ascent, U.S. equity valuations are elevated (16.5x)* but appear well within the historical norm, especially against:

– The backdrop of very low interest rates.

– A still-expansionary monetary policy.

– Further improvement in economic growth and corporate profitability.

•

While earnings growth has been supportive, top-line growth is key to a more robust expansion.

– Corporate earnings for S&P 500 companies posted a 9% year-over-year gain (December 2013).

•

The biggest risk we see is the momentum of the market becoming overextended.

•

Given this, we have a focus on quality-growth stocks.

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 (both charts): FactSet, SEI

* 12-month price-to-earnings ratio of S&P 500 Index

11

The Outlook: An Economic Thaw But a New Cold War

The good news

The U.S. economy is poised to accelerate moderately, shaking off weather-related setbacks during the first quarter.

The U.K. economy is enjoying a consumer-led rebound, although the recovery in the rest of Europe remains tepid and uncertain.

Earnings, which have been solid in the U.S. and Japan, should gain traction elsewhere this year.

Falling global inflation should keep central-bank policies in expansionary mode through the rest of the year, although the Federal Reserve (Fed) will likely tighten incrementally while the European Central Bank goes the other way.

Emerging-market economies may be bottoming, but much depends upon stronger demand in China and developed markets.

Corrections in global equities should continue to be viewed as buy-on-the-dip opportunities.

The bad news

The Fed’s tapering of quantitative easing in response to a stronger economy could push bond yields higher over the next year.

Despite the better tone to the economic data, Europe still is not doing enough to ensure a sustainable recovery.

Japan’s stock market has tumbled this year amid worries that Abenomics is losing its punch.

Emerging-market economies have suffered from investment outflows in response to Fed tapering fears, political turmoil and economic mismanagement.

China’s slowdown and debt problems remain an impediment for global growth.

The Russian annexation of Crimea could result in unexpected economic and geopolitical shocks.

12

SEI Outlook

The global economic recovery is strengthening but policy risks remain.

Optimism for global growth is buoyed by improvements in the U.S., U.K., Germany, and Japan.

European financial markets signal hope, but a relatively tighter monetary policy and deflationary signals underlie worries.

Although a soft economic landing in China is likely, the deleveraging of the economy could result in more short-term volatility.

Global central bank policies remain in focus, with expectations of continued stimulus support.

We expect interest rates to trend higher, creating a muted total return environment for investment-grade bonds.

Alpha opportunities are anticipated to be driven by security selection as spread levels continue to tighten.

Corporate credit fundamentals remain stable, but event risk is rising; financials continue to offer value.

Improving housing market, credit availability, favorable supply/demand technicals, and attractive loss-adjusted yields should support the non-agency mortgage-backed security market.

In high-yield bonds, the absolute level of yield is comparatively low; but fundamentals, spread levels, and technicals remain supportive.

With equity valuations at historic norms, company fundamentals are in focus.

Earnings have been solid in the U.S. and Japan, and they are expected to gain traction elsewhere this year.

Managers generally favor companies that can deliver earnings growth, subscribing to a quality-growth focus.

In the U.S., top-line (revenue) growth remains key to a more robust expansion.

Emerging markets have most of the cheap pockets across global equities today but face political and financial challenges.

13

Manager Changes

14

Manager Changes

›

First Quarter 2014

Fund(s) Impacted Additions

Multi-Asset Inflation Managed

Fund(s) Impacted

QS Investors

Terminations

There were no terminations during this quarter.

Rationale

Proficiency managing unique long/short mandates

Rationale

15

Your Portfolio Review

Statement & Strategy Review

16

Statement

›

Your Current Snapshot

17

Strategy Appendix

Strategy Snapshots & Multi-Style Charts

18

SEI Representative Strategy Review

• Volatility returned to global equity and fixedincome markets during the first quarter, but returns for the period overall were fairly muted.

This environment was reflected in quarterly strategy returns, which were modestly positive for all strategies.

• Trailing one-year performance patterns were quite different, reflecting strong gains in equity markets (especially U.S. small- and large-cap stocks), contrasted with a difficult 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.

25%

20%

15%

10%

5%

0%

-5%

SEI Private Client Strategies

Performance as of March 31, 2014

Q1 2014 trailing year

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.

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

19

SEI Representative Strategy Review

Stability-Focused Strategies

• Stability-focused strategies (Short Term,

Defensive, Conservative, and Moderate) 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.

• The U.S. Managed Volatility equity portfolio outperformed its benchmark by over 200 basis points for the quarter, and continued to show solid longer-term returns.

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.

0

-10

-20

30

20

10

60

50

40

3

2

1

0

6

5

4

PC Conservative Strategy – Duration (Yrs)

Cumulative Return (%) *

U.S. Managed Volatility Russell 3000 Index

Source: SEI, BlackRock Solutions

Durations shown as of 3/31/14.

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

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

* Values were set to zero as of March 31, 2011.

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.

20

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 a slight gain in the Multi-Asset Capital Stability fund, and marginally positive returns in Short

Duration Government and Real Return.

• Trailing 1-year returns remained marginally negative, driven primarily by declines in Real

Return and Multi-Asset Capital Stability. Both funds were negatively affected by the mid-2013 volatility in global fixed-income markets, and weakness in Treasury Inflation-Protected

Securities (TIPS).

20%

20%

10%

50%

Money Market

Short Duration Government

Multi Asset Capital Stability

Real Return

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 3/31/2014 and subject to change.

21


›

PC Short Term Strategy

Asset allocation as of 3/31/14 and subject to change. Securities as of 2/28/14 and subject to change.

22


›

PC Defensive Strategy

Manager changes during the quarter:

- QS Investors 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 first-quarter gain of nearly 2% had a positive impact on strategy performance. Longer-term absolute and relative returns have also been favorable.

The fund remains positioned in anticipation of a gradual trending toward higher interest rates, with a somewhat shorter duration than the benchmark. SEI believes that spread sectors generally offer the best opportunities within the fixed-income universe, and that actively managing these exposures is vital, given the key role that security selection is expected to play in driving performance.

20%

20%

2%

3%

3% 3%

6%

5%

7%

5%

26%

Global Mgd Volatility

U.S. Mgd Volatility

High Yield Bond

U.S. Fixed Income

Multi Asset Income

Real Return Bond

Multi Asset Inflation

Short Duration Govt

Multi Asset Cap Stability

Money Market

Multi Strategy Alternative

Strategy Themes

• During the quarter, the portfolio benefited most from its equity, high yield, and intermediate-term fixed-income exposure. In particular, U.S. and Global Managed Volatility, High Yield, and Multi-Asset Income were the strongest performers. Short-Duration Government and funds offering TIPS exposure lagged but still generated marginally positive returns.

• For the trailing 1-year period, 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. 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

23

1.800.DIAL.SEI



›

PC Defensive Strategy


24

Defensive Strategy

›

Asset Allocation Changes

Allocations were primarily modified to:

Shorten duration — As a tapering of the

Fed’s quantitative easing program comes to fruition, a shorter-duration profile across the strategies is sought to aid in mitigating the impact of a rising interest rate environment.

– Implementation primarily involved an increase to the Short-Duration

Government Fund and decreases to the Real Return Fund and U.S. Fixed

Income Fund.

Funds

Prime Obligation Money

Market

Short-Duration

Government

Real Return

U.S. Fixed Income

High Yield Bond

U.S. Managed Volatility

Global Managed Volatility

Multi-Strategy Alternative

Multi-Asset Capital

Stability

Multi-Asset Income

Multi-Asset Inflation

Managed

Previous %

(as of 12/31/13)

Current %

(as of 3/31/14)

20

4

3

22

10

8

3

20

5

5

20

2

20

5

5

3

3

26

7

6

3

25


›

PC Conservative Strategy







15%

13%

10%

4%

9%

8%

6%

8%

5% 4%

7%

3%

2%

6%

Multi-Strat Alternative


U.S. Mgd Volatility

High Yield Bond

U.S. Fixed Income

Enhanced Income

Emerging Markets Debt

Multi Asset Income

Ultra Short Bond

Real Return Bond


Short Duration Govt

Multi Asset Cap Stability

Money Market

Strategy Themes

• During the quarter, the portfolio benefited most from its equity, high yield, and intermediate-term fixed-income exposure. In particular, U.S. and Global Managed Volatility, High Yield, and Multi-Asset Income were the strongest performers. Short-duration fixed-income funds and those offering TIPS exposure lagged but still generated marginally positive returns.

• For the trailing 1-year period, 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.


1.800.DIAL.SEI



›

PC Conservative Strategy


27

Conservative Strategy

›



Funds

Shorten duration environment.

— As a tapering of the Fed’s quantitative easing program comes to fruition, a shorterduration profile across the strategies is sought to aid in mitigating the impact of a rising interest rate

– Implementation primarily involved an increase to the Short-Duration Government Fund and decreases to the Real Return Fund and U.S.

Fixed Income Fund.


Market

Short-Duration

Government

Real Return

Ultra Short Duration Bond

Enhanced Income

U.S. Fixed Income

High Yield Bond

Emerging Market Debt


Increase emerging-market debt exposure — We believe the improved quality in the asset class makes for a more suitable investment across a broader range of risk-tolerance levels. In addition, with its diversified exposure to a basket of emerging-market currencies, the asset class is less exposed to the movements in U.S. interest rates, providing a decoupled source of yield.

– Implementation primarily involves the increase of the Emerging Market Debt Fund, with a decrease to developed U.S. fixed income or equity depending on the risk level of the strategy.



Multi-Asset Capital

Stability

Multi-Asset Income


Managed

Previous %

(as of 12/31/13)

10

3

8

12

6

4

6

4

15

7

8

8

9

Current %

(as of 3/31/14)

10

4

15

7

8

6

2

8

3

6

13

5

4

9

28


›

PC Moderate Strategy







4%

5%

3%

8% 1%

7%

5%

14%

10%

10%

10%

4%

7%

9%

3%


U.S. Mgd Volatility

Large Cap

Multi Asset Accumulation

High Yield Bond

Emerging Mkt Debt


Multi Asset Capital Stability

Multi Asset Income

U.S. Fixed Income

Real Return Bond

Short Duration Govt

Enhanced Income

Multi-Strat Alternative

Money Market

Strategy Themes

• During the quarter, the portfolio benefited from its equity, high yield, and risk parity exposure. In particular, U.S. and

Global Managed Volatility, Multi-Asset Accumulation, and High Yield were the strongest performers. Short-Duration

Government and funds offering TIPS exposure lagged but still generated marginally positive returns.

• For the trailing 1-year period, the strategy’s diversified approach also proved somewhat advantageous, as its equity

(Large Cap, U.S. and Global Managed Volatility), high yield, and alternative components served to offset weakness within fixed income (especially emerging markets debt and Treasury Inflation-Protected Securities, or TIPS) and commodities.


29

1.800.DIAL.SEI



›

PC Moderate Strategy


30

Moderate Strategy

›



Add Multi-Asset Income — Due to its differentiated approach from traditional bonds in sourcing income, we expect that adding the fund will reduce overall sensitivity

(beta) to fixed income within the Strategies, effectively minimizing an investor’s exposure to some of the uncertainty surrounding the fixed-income market.

– Implementation primarily involved an increase to the Multi-Asset Income

Fund and decreases to a diversified mix of fixed income and equity.

Funds


Market

Short-Duration

Government

Real Return

Enhanced Income

U.S. Fixed Income

High Yield Bond




Large Cap


Multi-Asset Capital

Stability

Multi-Asset Income


Managed

Multi-Asset Accumulation

Previous %

(as of 12/31/13)

Current %

(as of 3/31/14)

1

15

4

8

10

8

8

5

4

4

4

9

10

10

1

14

3

8

10

5

7

7

5

4

3

4

9

10

10

31

Multi-Asset Income Fund

• The Multi-Asset Income Fund is now held in five of the non-Tax-Managed Private Client strategies, following the recent strategic allocation changes.

•

The fund utilizes a differentiated, non-benchmarkconstrained, “go-anywhere” tactical approach, investing in a broad range of income-producing securities. In addition to opportunistically managing credit and liquidity risk, the fund also seeks to actively manage interest-rate risk.

•

In a frequently challenging environment for fixedincome investing, the fund has delivered positive returns for the first quarter, trailing year, and sinceinception (4/9/2012) period of 2.7%, 5.2%, and

9.7% (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 3/31/2014 and subject to change.

32

Growth-Focused Strategy

›

PC Core Market Strategy

1%



5%

1%

15%

Fund Highlights: Large Cap and Small Cap

SEI’s growth-focused strategies employ both the Large Cap and Small Cap funds. The strategies benefited from each fund’s positive 1 st quarter and strong trailing 1-year returns.

17%

3%

7%

3%

9%

During the quarter, relative performance for each fund was driven mainly by stock selection. Large Cap continues to position away from deep cyclical and defensive sectors in favor of quality growth; while Small Cap remains mildly procyclical with a tilt towards quality companies and attractive valuations.

7%

3%

10%

20%

U.S. Large Cap

U.S. Small Cap

International Equity

Emerging Markets Equity



Multi Asset Income


High-Yield Bond

U.S. Fixed Income


Money Market

Strategy Themes

• The strategy benefited from its diversified approach during the first quarter, as performance was driven by solid gains in

Multi-Asset Accumulation, High Yield, and Emerging Markets Debt. Emerging Markets Equity was the only fund within the model to experience a quarterly decline.

• Trailing 1-year 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.


33

1.800.DIAL.SEI



›

PC Core Market Strategy


34

Core Market Strategy

›



Funds

Previous %

(as of 12/31/13)

Current %

(as of 3/31/14)



– Implementation primarily involved an increase to the Multi-Asset Income Fund and decreases to a diversified mix of fixed income and equity.


Market

U.S. Fixed Income

High Yield Bond


Large Cap

1

19

10

6

16

1

17

9

7

15

Increase emerging-market debt exposure — We believe the improved quality in the asset class makes for a more suitable investment across a broader range of risk-tolerance levels. In addition, with its diversified exposure to a basket of emerging-market currencies, the asset class is less exposed to the movements in U.S. interest rates, providing a decoupled source of yield.


Small Cap


Emerging Market Equity


Multi-Asset Income


Managed


3

7

3

5

10

20

3

5

3

7

3

10

20

35


›

PC Market Growth Strategy

1%






7%

2%

7%

10%

8%

1%

3%

20%

23%

4%

4%

11%

U.S. Large Cap

U.S. Small Cap





Multi Asset Income


High-Yield Bond

U.S. Fixed Income


Money Market

Strategy Themes



• Trailing 1-year 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.


36

1.800.DIAL.SEI



›

PC Market Growth Strategy


37

Market Growth Strategy

›





– Implementation primarily involved an increase to the Multi-Asset Income

Fund and decreases to a diversified mix of fixed income and equity.

Funds


Market

U.S. Fixed Income

High Yield Bond


Large Cap

Small Cap




Multi-Asset Income


Managed


Previous %

(as of 12/31/13)

Current %

(as of 3/31/14)

1

7

24

9

7

4

11

4

3

10

20

4

3

2

11

4

10

20

1

7

23

8

7

38


›

PC Aggressive Strategy


1%



20%

8%

7%

7% 1%

16%

6%

35%

U.S. Large Cap

U.S. Small Cap





High-Yield Bond

Money Market

Strategy Themes



• Trailing 1-year 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 a marginally positive gain for Multi-Asset

Accumulation.


39

1.800.DIAL.SEI



›

PC Aggressive Strategy


40

Aggressive Strategy

›



Increase emerging-market debt exposure

—

We believe the improved quality in the asset class makes for a more suitable investment across a broader range of risk-tolerance levels. In addition, with its diversified exposure to a basket of emerging-market currencies, the asset class is less exposed to the movements in U.S. interest rates, providing a decoupled source of yield.


Increase emerging-market equity exposure — As the recovery in the developed market matures, we expect the growth in emerging markets to return to the long-term trend.

Based on our research, we believe that an increase in emerging-market equity exposure should provide more consistent results across different economic environments, enhancing overall diversification.

– Implementation primarily involved an increase to the

Emerging Market Equity Fund and decrease to the

Large Cap Fund.

Funds


Market

High Yield Bond


Large Cap

Small Cap




Previous %

(as of 12/31/13)

Current %

(as of 3/31/14)

1

6

7

38

6

16

6

20

1

7

8

35

6

16

7

20

41


›

PC Equity Strategy

1%


1%

10%


19%


14%

56%

U.S. Large Cap

U.S. Small Cap



Money Market

Strategy Themes

• The strategy’s first-quarter return was driven by gains in Large Cap and Small Cap. International Equity’s performance was marginally positive, while Emerging Markets Equity declined during the quarter.

• Trailing 1-year 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’s slight decrease over the period had a negative impact on returns.


42

1.800.DIAL.SEI



›

PC Equity Strategy


43

Equity Strategy

›



Increase emerging-market equity exposure

—

As the recovery in the developed market matures, we expect the growth in emerging markets to return to the long-term trend. Based on our research, we believe that an increase in emerging-market equity exposure should provide more consistent results across different economic environments, enhancing overall diversification.

– Implementation primarily involved an increase to the Emerging Market Equity

Fund and decrease to the Large Cap Fund.

Funds


Market

Large Cap

Small Cap



Previous %

(as of 12/31/13)

Current %

(as of 3/31/14)

1

64

10

19

6

1

56

14

19

10

Increase small-cap exposure — Based on our research, an increased weight to U.S. small-cap equity providing greater diversification benefits in a global equity strategy, since small-cap equities have less exposure than U.S. large-cap equities to global market cycles.

–

Implementation primarily involved an increase to the Small Cap Fund and decreases to the Large Cap Fund.

44

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 benefited from its diversified approach during the first quarter, returning 3.5% and exceeding its blended benchmark* by nearly 200 basis points.

• In contrast to calendar 2013, commodities and global fixed-income exposure had the largest positive impact on the fund’s performance, while global equities made a smaller contribution. The fund holds a slight overweight allocation (versus its 40% strategic target) to Global

Equities, on a risk-weighted basis.

60%

50%

40%

30%

20%

10%

0%

Global Equity

Risk Weighted Allocations

3/31/2014 12/31/2013 Strategic

Global Bonds Inflation Related

*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 3/31/2014 and subject to change.

45

Tax-Managed Models

46


›

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 returns for both the first quarter and the trailing one-year period; consistent with its focus on capital preservation, the fund has never experienced a calendar year decline since its

November 2003 inception.

The fund holds nearly 70% 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 25% shorter than that of its benchmark.

50%

10%

40%

Short Duration Municipal

Intermediate Term Muni

Tax Free Money Market

Strategy Themes

•

The strategy delivered a slightly positive quarterly return, reflecting stabilization of shorter duration U.S. fixedincome securities and the continuation of near-zero cash yields. Each component fund rose during the quarter, with Intermediate-Term Municipal showing the largest gain.

•

Trailing 1-year returns were marginally positive, driven by a slight gain in Short Duration Municipal. The strategy was able to overcome headwinds created by the mid-2013 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

47 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 3/31/2014 and subject to change.

Stability-Focused

›

PC Tax-Managed Short Term Strategy


48


›

PC Tax-Managed Defensive Strategy


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

The fund holds nearly 70% 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 25% shorter than that of its benchmark.

10%

10%

1%

10%

69%

Tax-Mgd Mgd Volatility



Tax-Advantaged Income


Strategy Themes

•

During the quarter, the portfolio benefited most from its high-yield and equity exposure. In particular, Tax-

Advantaged Income (high-yield municipal securities and preferred stocks) and Tax-Managed Managed

Volatility were the strongest performers, while Short Duration Municipal lagged.

•

For the trailing 1year period, the strategy’s diversified approach also proved somewhat advantageous, as its equity component (Tax-Managed Managed Volatility) served to offset weakness in Intermediate-Term

Municipal and Tax-Advantaged Income.




Stability-Focused

›

PC Tax-Managed Defensive Strategy


50


›

PC Tax-Managed Conservative Strategy




10%

15%

1%

49%

20%

5%


Tax-Managed Large Cap





Strategy Themes

•

During the quarter, the portfolio benefited most from its high-yield and equity exposure. In particular, Tax-

Advantaged Income (high-yield municipal securities and preferred stocks) and Tax-Managed Managed

Volatility were the strongest performers, while Short Duration Municipal lagged.

•

For the trailing 1year period, 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 Intermediate-Term Municipal and Tax-Advantaged Income.





›

PC Tax-Managed Conservative Strategy


52


›

PC Tax-Managed Moderate Strategy




20%

12%

1%

27%

25%

5%

10%


Tax-Managed Large Cap






Strategy Themes

•

During the quarter, the portfolio benefited most from its high-yield and domestic equity exposure. In particular, Tax-Advantaged Income (high-yield municipal securities and preferred stocks) and Tax-

Managed Managed Volatility were the strongest performers, while Short Duration Municipal and

International Equity lagged.

•

For the trailing 1year period, the strategy’s diversified approach also proved somewhat advantageous, as its U.S. and international equity components served to offset weakness in Intermediate-Term Municipal and Tax-Advantaged Income.





›

PC Tax-Managed Moderate Strategy


54


›

PC Tax-Managed Core Market Strategy

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

1%

3%

SEI’s tax-managed growth-focused strategies use both the

Large Cap and Small/Mid Cap funds. The strategies benefited from each fund’s positive 1 st quarter and strong trailing 1-year returns.

During the quarter, relative performance for each fund was driven mainly by stock selection. Large Cap continues to position away from deep cyclical and defensive sectors in favor of quality growth; while Small/Mid Cap remains mildly procyclical with a tilt towards quality companies and attractive valuations.

12%

40%

1%

8%

30%

5%

Tax-Mgd Large Cap

Tax-Mgd Small/Mid Cap


Emerging Mkts Equity



Emerging Mkt Debt


Strategy Themes

•

The strategy benefited from its diversified approach during the first quarter, as performance was driven mainly by solid gains in Tax-Advantaged Income (high-yield municipal securities and preferred stocks),

Intermediate Term Municipal, and Emerging Markets Debt. Emerging Markets Equity was the only fund within the model to experience a quarterly decline.

•

Trailing 1-year strategy performance benefited from strong returns in Small/Mid Cap, Large Cap, and

International Equity; but was constrained by weakness in Emerging Markets Debt and Equity, and

Intermediate Term Municipal.





›

PC Tax-Managed Core Market Strategy


56


›

PC Tax-Managed Market Growth Strategy

Fund Highlights: Tax-Managed Large Cap and

Small/Mid Cap




19%

10%

4%

1%

3%

10%

8%

45%

Tax-Mgd Large Cap






Emerging Mkt Debt


Strategy Themes

•


Intermediate Term Municipal, and Emerging Markets Debt. Emerging Markets Equity was the only fund within the model to experience a quarterly decline.

•

Trailing 1-year strategy performance benefited from strong returns in Small/Mid Cap, Large Cap, and

International Equity; but was constrained by weakness in Emerging Markets Debt and Equity, and

Intermediate Term Municipal.





›

PC Tax-Managed Market Growth Strategy


58


›

PC Tax-Managed Aggressive Strategy


Small/Mid Cap




4%

7%

13%

11%

6% 1%

58%

Tax-Mgd Large Cap





Emerging Mkt Debt


Strategy Themes

•


Small/Mid Cap, and Emerging Markets Debt. Emerging Markets Equity was the only fund within the model to experience a quarterly decline.

•

Trailing 1-year strategy performance benefited from strong returns in Small/Mid Cap and Large Cap, and a more muted but still solid gain in International Equity; but was constrained by weakness in Emerging

Markets Debt and Equity, and Tax-Advantaged Income.





›

PC Tax-Managed Aggressive Strategy


60


›

PC Tax-Managed Equity Strategy


Small/Mid Cap




14%

15%

5% 1%

65%

Tax-Mgd Large Cap





Strategy Themes

• The strategy’s first-quarter return was driven by gains in Small/Mid Cap and Large Cap. International

Equity’s performance was marginally positive, while Emerging Markets Equity declined during the quarter.

•

Trailing 1-year 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’s slight decrease over the period had a negative impact on returns.





›

PC Tax-Managed Equity Strategy


62

Institutional Strategy

›

Capital Growth

1%

Fund Highlight: Core Fixed Income

Five of SEI’s institutional strategies employ the Core Fixed

Income fund. The fund’s first quarter gain of 2.25% had a positive impact on strategy performance. Longer-term absolute and relative returns have also been very favorable.

The fund remains positioned in anticipation of a gradual trending toward higher interest rates, with a somewhat shorter duration than the benchmark. SEI believes that spread sectors generally offer the best opportunities within the fixedincome universe, and that actively managing these exposures is vital, given the key role that security selection is expected to play in driving performance.

8%

12%

16%

2%3%

2%

1%

4%

4%

25%

23%

Large Cap Value

Large Cap Growth

Small Cap Value

Small Cap Growth



Core Fixed Income

High Yield Bond

Int'l Fixed Income


Money Market

Strategy Themes


Large Cap Value, High Yield, Emerging Markets Debt, and Core Fixed Income. Emerging Markets Equity was the only fund within the model to experience a quarterly decline.

• Trailing 1-year strategy performance benefited from strong returns in U.S. equities (especially Small Cap Growth and Large

Cap Value) and International Equity; but was constrained by weakness in Emerging Markets Debt and Equity, and Core

Fixed Income.

Sources: SEI, FactSet. Returns are net of fees,.



Institutional Strategy

›

Capital Growth Strategy


64

Tax Sensitive Strategy

›

TS 100


Small/Mid Cap




20%

10%

10%

1%

59%

Tax-Mgd Large Cap





Strategy Themes

• The strategy’s first-quarter return was driven by gains in Small/Mid Cap and Large Cap. International

Equity’s performance was marginally positive, while Emerging Markets Equity declined during the quarter.

•

Trailing 1-year 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’s slight decrease over the period had a negative impact on returns.

Sources: SEI, FactSet. Returns are net of fees,



Tax Sensitive Strategy

›

TS 100 Strategy


66

Point of View

Economic Outlook

67

Stocks Stumbled Out of the Gate, But Then Hit Their Stride

•

Equities have turned a bit more volatile this year in response to disruptive weather, the invasion of the

Crimean peninsula and longer run emerging-market worries.

•

Even so, following a brief dip in the latter part of January, global stocks bounced higher with the U.S. leading.

•

The ability of equities in developed markets to quickly overcome periodic stumbles underscores investors’ willingness to assume risk even when economic and geopolitical uncertainties are on the rise.

– In our view, the rotation out of cash and fixed-income assets and into stocks is still very much in play.

•

The yields on Treasury and investment-grade corporate bonds remain low relative to their own history and to inflation.

•

We continue to expect more volatile assets (equities, high-yield debt and emerging-market debt) to outperform less volatile ones.




68

Surprise, Surprise: The Economy Turns Cold

• With some help from poor weather, Citigroup’s

Economic Surprise Index turned sharply lower beginning in January, hitting its lowest point in almost 20 months.

– The persistent trend in this measure coincides with a string of poor economic outcomes.

•

The Chicago Federal Reserve National

Economic Activity Index, a composite of 85 monthly indicators, suggests that the U.S. economy was tracking below trend during the first quarter.

• Some economists worry that there’s more underlying weakness than can be explained by weather alone.

• Although that’s a minority view, we share in the frustration that the recovery from one of the deepest recessions remains one of the weakest.

69

Real GDP: Better, Not Great

• Since the recession’s bottom in the second quarter of 2009, U.S. inflation-adjusted gross domestic product (GDP) has advanced at a meager 2.3% annual rate.

•

The U.S. economic expansions that followed the recessions of 1973 to 1975 and 1981 to 1982 were more than twice as strong as the current one this far into the upturn.

•

The saddest fact is that this lackluster performance since the start of the recovery in mid-2009 looks downright stellar compared against those of the other major developed economies.

•

Both the U.K. and Japan have recorded a decent improvement in GDP over the past year, closer to the U.S. experience and much better than that of the eurozone.

70

Bottom Lines Go in Different Directions

•

Earnings have been solid in the U.S. and Japan, and they are expected to gain traction elsewhere this year.

•

Forward-looking estimates of U.S. company earnings per share (EPS) continue to move ahead into new-high territory, with the latest EPS forecasts more than 20% above the 2008 peak.

•

Companies in the U.K. have not benefited very much from the rather vibrant economic recovery — underscoring the importance of global economic conditions to U.K. companies’ bottom lines.

• Within the eurozone, analysts’ EPS forecasts have been in a narrow range since mid-2012, although one can argue that this is an improvement in itself versus the declines sustained in 2008 and 2011.

• In contrast, Japan’s expected earnings trend has been enjoying a sharp rebound since 2012, benefiting from the yen’s decline, quantitative easing and Prime Minster Abe’s fiscal stimulus measures.

71

Not Much Economic Dread in Today’s Yield Curve Spread

•

The yield curve spread between 2-year and 10year U.S. Treasurys is likely to flatten over time as the Federal Reserve shifts away from its ultra-loose policy position.

•

However, given the extreme starting point with

2-year notes some 230 basis points below 10year bonds, the curve will likely remain rather steep through 2015.

•

Recessions usually begin a year or two after the yield curve flattens and inverts, since an inverted curve is symptomatic of tight liquidity and corporate financial stress.

•

As a result, it appears too early for markets to discount a cyclical downturn.

•

We expect bond yields to drift upward through

2014, with the yield on the Treasury 10-year bond reaching 3.25% to 3.50% by the end of the year.

•

The first Federal funds rate hike could occur as early as mid-2015.

72

CAPE in Hand

•

The U.S. is among the more expensive stock markets in the world today. Yet the market’s price/earnings ratio and other metrics of value appear well within the historical norm.

•

This is especially so against the fundamental backdrop of very low interest rates, a stillexpansionary monetary policy and further improvement in economic growth and corporate profitability.

•

The cyclically adjusted price/earnings ratio (CAPE), however, measures the current level of the S&P

500 Price Index at 25 times its average reported earnings over the previous 10 years. This does indeed look extended versus most time periods.

•

Although there is a strong inverse correlation between the level of the CAPE and future stock market performance, the consistency of those outcomes are much higher when the time horizon is expanded to five and ten years. It’s a mistake to forecast equity performance over a one- or two-year time frame using this statistic.

73

Periphery Yields Plunge…

•

The eurozone is enjoying its best economic performance since 2010 as gross domestic product has turned modestly positive on consumptions gains.

•

Investor sentiment has improved in stunning fashion, and periphery bond yields have fallen sharply —both in absolute terms and relative to

German bunds.

•

The huge declines in periphery yields reflect:

– An improvement in fiscal positions, with some countries now running primary fiscal surpluses (i.e. before interest payments on the debt).

– The elimination of the risk of a currency breakup.

– Some crossover demand as investors move away from emerging markets.

– Falling inflation through the eurozone, with the periphery countries either near a zero price change over the past year or experiencing outright deflation.

•

Despite this, we still believe that the region is a fair distance away from a sustained expansion.

74

…But Periphery Debt Doesn’t

•

Debt burdens remain near their peak levels in

Europe; this is especially true in the periphery, where recession and price deflation have increased the real debt burden.

•

We are keeping a close eye on eurozone inflation rates. The steady decline in nonperiphery core-country consumer price indexes to a pace well below the European Central Bank

2% target is worrisome.

•

Deflation in the periphery countries only serves to impede their recovery.

•

The health of the European banking system is still in question. Lending to businesses and households continues to be quite weak, although lending standards have eased somewhat in recent quarters.

• This year’s Asset Quality Review and stress testing of major and mid-tier European banks will likely constrain lending to households and corporations in the coming months.

75

Labor’s Love Lost

•

Growth in the region will almost certainly continue to be subpar.

•

Industrial output is improving noticeably in

Germany, but appears to be flat-lining elsewhere.

•

Recovery in the labor markets is virtually nonexistent. At 12%, the overall eurozone unemployment rate remains stuck near its cyclical high.

•

We continue to believe that the European

Central Bank’s (ECB) reluctance to counteract the decline in its balance sheet threatens to worsen the disinflationary impact of the rising euro.

•

We anticipate the ECB will become incrementally more expansive in order to provide relief to the banking system and stanch the downward pressure on inflation.

76

Crimea and Punishment

•

In emerging markets, both political and economic factors have reduced our conviction that their value will be realized quickly.

• The obvious political factor is Russia’s invasion of

Crimea, which led to economic sanctions from the U.S. and its allies.

•

While there are questions about how painful and effective those sanctions will be, foreign investors have been quicker and more aggressive in delivering punishment.

– The Russian stock market and currency have fallen sharply, although the ruble started to slide well before the invasion of Crimea.

– The ruble’s value is now lower than it was during the 2008 financial crisis —a time when oil prices also plunged.

•

Since the Russian stock market accounts for 6% of the

MSCI Emerging Market Index, prolonged weakness in

Russian equities and the ruble would act as an important headwind impeding overall emerging-market equity performance.




77

Summing Up

•

Geopolitical concerns and a further easing of inflation pressures around the globe should keep global monetary policies accommodative.

•

Although we think the Federal Reserve will remain dovish, we expect some firming of bond yields by year end —a more normal relationship visà-vis expected inflation.

•

Overall, we continue to expect more volatile assets (equities, high-yield debt and emergingmarket debt) to outperform less volatile ones.

•

In equities, while momentum (as opposed to value) has worked best, we are mindful that it can become dangerous as participants crowd into the same trade and leverage up in an effort to improve returns.

•

The surge in margin debt as a percentage of equity market capitalization is an early warning sign that we think merits monitoring.

78

Manager Positioning

Fixed Income

Despite a stronger rally in sovereign debt than anticipated, overall performance has been solid, supported by exposure to high-yield and emerging-market debt. Intermediate-core managers have expressed a bias toward a flattening yield curve, which has been helpful. Structured products, such as non-agency commercial and residential mortgage-backed securities, remain favored due to strong relative value versus other investment-grade sectors, improving fundamentals and supportive technicals. High-yield bonds continue to look modestly attractive as economic fundamentals should keep default rates low. Inflows have been strong in emergingmarket debt with deals oversubscribed, underscoring strong asset-class demand.

Equity

Given the mid-to-late market cycle in the U.S., managers favor companies that can deliver earnings growth, subscribing to a qualitygrowth focus. In Europe, a shift occurred in relative performance to domestically oriented sectors from export-dependent areas; our managers believe this convergence has more to go, showing biases to industrials, technology and consumer discretionary.

Alternatives

Managers are adding to their equity exposure as the environment improves for bottom-up stock-picking. Activist investing and mergers and acquisition strategies have been contributing to performance. In fixed income, alternative strategies are more balanced, with yields and spreads not offering any big opportunities. Most of the emphasis is on structured credit, such as commercial and residential mortgage-backed securities.

79

Appendix

80

SEI performance summary

Fixed-income mutual funds – as of 3/31/2014

Net of Fees

Fixed-Income Mutual Fund

Benchmark Index

SIMT Core Fixed Income

Barclays Capital U.S. Aggregate Bond

SIT Emerging Markets Debt

50% JPM EMBI Global Div & 50% JPM GBI EM

Global Div

SIMT Enhanced Income

BofA ML USD 3M LIBOR Constant Maturity

SIMT High Yield Bond

BofA ML USD High Yield Constrained

STET Intermediate Term Municipal

Barclays Capital 3-15 Year Muni Blend

SIT International Fixed Income


SIMT Real Return

Barclays Capital 1-5 Year U.S. TIPS

SDIT Short-Duration Government

BofA ML 1-3 Year U.S. Treasury

STET Short Duration Municipal

Barclays Capital 1 Year Municipal Bond

STET Tax-Advantaged Income

Barclays Capital 60/40 HY Muni and Muni

SDIT Ultra Short Bond

Barclays Capital Short UST 9-12 Month

SIMT U.S. Fixed Income


SEI

2.25%

2.50%

0.49%

2.78%

2.27%

2.02%

0.10%

0.05%

0.15%

5.02%

0.18%

Quarter-End Return

Benchmark

1.84%

2.84%

0.06%

2.99%

2.47%

2.16%

0.20%

0.14%

0.24%

4.87%

0.08%

SEI

2.25%

2.50%

0.49%

2.78%

2.27%

2.02%

0.10%

0.05%

0.15%

5.02%

0.18%

Year-to-Date Return

Benchmark

1.84%

2.84%

0.06%

2.99%

2.47%

2.16%

0.20%

0.14%

0.24%

4.87%

0.08%

1.91% 1.84% 1.91% 1.84%

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

81


Equity mutual funds – as of 3/31/2014

Net of Fees

Equity Mutual Fund

Benchmark Index

SIT Emerging Markets Equity

MSCI Emerging Markets

SIMT Global Managed Volatility

MSCI World

SIT International Equity

MSCI EAFE

SIMT Large Cap

Russell 1000

SIMT Large Cap Growth

Russell 1000 Growth

SIMT Large Cap Value

Russell 1000 Value

SIMT Mid Cap

Russell Midcap

SIMT Real Estate

Wilshire RESI (Float-Adjusted)

SIMT Small Cap

Russell 2000

SIMT Small Cap Growth

Russell 2000 Growth

SIMT Small Cap Value

Russell 2000 Value

SIMT U.S. Managed Volatility

Russell 3000

SEI

-1.68%

3.13%

0.20%

1.34%

0.40%

2.82%

3.32%

9.99%

1.18%

0.33%

1.40%

4.13%


Benchmark

-0.43%

1.04%

0.66%

2.05%

1.12%

3.02%

3.53%

9.99%

1.12%

0.48%

1.78%

1.97%

SEI

-1.68%

3.13%

0.20%

1.34%

0.40%

2.82%

3.32%

9.99%

1.18%

0.33%

1.40%

4.13%


Benchmark



-0.43%

1.04%

0.66%

2.05%

1.12%

3.02%

3.53%

9.99%

1.12%

0.48%

1.78%

1.97%

82


Equity mutual funds – as of 3/31/2014 (continued)

Net of Fees

Equity Mutual Fund

Benchmark Index

SIMT Tax-Managed Large Cap

Russell 1000

SIMT Tax-Managed Managed Volatility

Russell 3000

SIMT Tax-Managed Small/Mid Cap

Russell 2500

SEI


Benchmark

1.64%

4.06%

2.09%

2.05%

1.97%

2.30%

SEI


Benchmark

1.64%

4.06%

2.09%

2.05%

1.97%

2.30%



83


Multi-asset mutual funds – as of 3/31/2014

Net of Fees

Mutual Fund

Benchmark Index

SIMT Multi-Strategy Alternative

BofA ML US 3M Treasury Bill

SIMT Multi-Asset Accumulation

Blended Accumulation Benchmark

SIMT Multi-Asset Capital Stability

Blended Capital Stability Benchmark

SIMT Multi-Asset Income

Blended Income Benchmark

SIMT Multi-Asset Inflation Managed

Blended Inflation Benchmark

SEI


Benchmark

1.00%

3.46%

0.40%

2.74%

0.64%

0.01%

1.48%

0.32%

2.32%

0.25%

SEI


Benchmark

1.00%

3.46%

0.40%

2.74%

0.64%

0.01%

1.48%

0.32%

2.32%

0.25%

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)



84

SEI annualized performance summary

Fixed-income mutual funds – as of 3/31/2014

Net of Fees

Fixed-Income Mutual Fund (Inception)

Benchmark Index

SIMT Core Fixed Income (5/1/87)


SIT Emerging Markets Debt (6/26/97)

50% JPM EMBI Global Div & 50% JPM GBI EM

Global Div

SIMT Enhanced Income (7/27/06)

BofA ML USD 3M LIBOR Constant Mat

SIMT High Yield Bond (1/11/95)


STET Intermediate Term Municipal (9/5/89)

Barclays Capital 3-15 Year Muni Blend

SIT International Fixed Income (9/1/93)


SIMT Real Return (7/6/09)

Barclays Capital 1-5 Year U.S. TIPS

SDIT Short-Duration Government (2/17/87)

BofA ML 1-3 Year U.S. Treasury

STET Short Duration Municipal (11/13/03)

Barclays Capital 1 Year Municipal Bond

STET Tax-Advantaged Income (9/4/07)

Barclays Capital 60/40 HY Muni and Muni

SDIT Ultra Short Duration Bond (9/28/93)

Barclays Capital Short UST 9-12 Month

SIMT U.S. Fixed Income (7/2/09)


Before

Waiver

Expense

Ratio (%)

0.86%

1.81%

1.05%

1.13%

0.85%

1.20%

0.84%

0.74%

0.85%

1.13%

0.74%

0.86%

After

Waiver

Expense

Ratio (%)

0.68%

1.36%

0.60%

0.90%

0.63%

1.02%

0.45%

0.48%

0.63%

0.86%

0.38%

0.66%

SEI

0.44%

-6.26%

1.90%

6.52%

-0.10%

1.13%

-2.57%

-0.17%

0.37%

0.01%

0.61%

1-Year

Benchmark

-0.10%

-3.32%

0.23%

7.52%

0.84%

2.28%

-2.16%

0.38%

0.76%

-0.95%

0.25%

SEI

8.74%

12.04%

6.02%

18.96%

5.04%

5.77%

#N/A

1.82%

1.15%

11.87%

3.81%

5-Year

Benchmark

4.80%

11.01%

0.41%

18.12%

4.98%

4.30%

#N/A

1.10%

1.34%

9.12%

0.48%

SEI

4.92%

8.31%

#N/A

7.64%

3.65%

2.66%

#N/A

2.83%

1.92%

#N/A

1.84%

10-Year

Benchmark

4.46%

7.93%

#N/A

8.54%

4.25%

3.55%

#N/A

2.48%

2.21%

#N/A

2.03%

Since Inception

SEI

6.62%

9.50%

-0.39%

7.81%

4.98%

4.44%

2.56%

4.92%

1.92%

4.68%

3.46%

Benchmark

6.84%

8.75%

1.83%

8.34%

5.65%

5.19%

2.94%

5.03%

2.20%

4.69%

3.47%

-0.28% -0.10% #N/A #N/A #N/A #N/A 5.22% 4.67%

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

85


Equity mutual funds – as of 3/31/2014

Net of Fees

Equity Mutual Fund (Inception)

Benchmark Index

SIT Emerging Markets Equity (1/17/95)

MSCI Emerging Markets

SIMT Global Managed Volatility (7/27/06)

MSCI World

SIT International Equity (12/20/89)

MSCI EAFE

SIMT Large Cap (9/30/09)

Russell 1000

SIMT Large Cap Growth (12/20/94)

Russell 1000 Growth

SIMT Large Cap Value (10/3/94)

Russell 1000 Value

SIMT Mid Cap (2/16/93)

Russell Midcap

SIMT Real Estate (11/13/03)

Wilshire RESI (Float-Adjusted)

SIMT Small Cap (9/30/09)

Russell 2000

SIMT Small Cap Growth (4/20/92)

Russell 2000 Growth

SIMT Small Cap Value (12/20/94)

Russell 2000 Value

SIMT U.S. Managed Volatility (10/28/04)

Russell 3000

Before

Waiver

Expense

Ratio (%)

2.06%

1.29%

1.25%

1.01%

1.02%

0.97%

1.04%

1.27%

1.29%

1.28%

1.29%

After

Waiver

Expense

Ratio (%)

1.98%

1.12%

1.25%

0.89%

0.89%

0.89%

1.03%

1.14%

1.15%

SEI

-1.84%

8.67%

1-Year

17.47%

22.72%

21.62%

24.58%

25.94%

4.65%

27.40%

1.11% 30.61%

1.15% 22.74%

Benchmark

-1.43%

18.48%

17.56%

22.41%

23.22%

21.57%

23.51%

4.61%

24.90%

27.19%

22.65%

SEI

12.84%

12.53%

14.90%

#N/A

20.49%

21.04%

23.78%

27.50%

#N/A

24.73%

23.72%

5-Year

Benchmark

14.47%

17.08%

16.01%

#N/A

21.66%

21.74%

25.54%

29.30%

#N/A

25.22%

23.32%

SEI

7.86%

#N/A

3.84%

#N/A

7.07%

6.90%

8.96%

7.76%

#N/A

5.77%

8.22%

10-Year

Benchmark

10.10%

#N/A

6.52%

#N/A

7.86%

7.58%

10.05%

8.21%

#N/A

8.86%

8.07%

Since Inception

SEI

4.81%

3.37%

3.73%

15.24%

8.01%

8.57%

10.36%

9.01%

16.31%

9.62%

11.00%

Benchmark

6.94%

5.37%

4.69%

16.34%

8.77%

10.19%

11.36%

9.84%

17.44%

7.89%

11.26%

1.27% 1.00% 18.75% 22.61% 20.06% 21.92% #N/A #N/A 8.84% 8.21%


86


Equity mutual funds – as of 3/31/2014 (continued)

Net of Fees

Equity Mutual Fund (Inception)

Benchmark Index

SIMT Tax-Managed Large Cap (3/5/98)

Russell 1000

After Tax Return (1)


SIMT Tax-Managed Mgd Volatility (12/20/07)

Russell 3000



SIMT Tax-Managed Small/Mid Cap (10/31/00)

Russell 2500



STET Tax-Advantaged Income (9/4/07)



Before

Waiver

Expense

Ratio (%)

1.02%

1.27%

1.29%

1.13%

After

Waiver

Expense

Ratio (%)

0.89%

1.00%

1.12%

0.86%

SEI

1-Year

23.25%

23.00%

13.27%

18.14%

16.44%

11.12%

25.92%

24.28%

15.64%

0.01%

-0.63%

1.17%

Benchmark

22.41%

22.61%

24.01%

-0.95%

SEI

21.16%

20.97%

17.37%

19.70%

18.90%

16.11%

23.84%

23.49%

19.66%

11.87%

11.13%

9.84%

5-Year

Benchmark

21.72%

21.92%

25.31%

9.12%

SEI

7.15%

6.97%

5.80%

#N/A

#N/A

#N/A

10-Year

7.56%

6.94%

6.10%

#N/A

#N/A

#N/A

Benchmark

7.79%

#N/A

9.42%

#N/A

Since Inception

SEI

4.98%

4.77%

4.02%

8.43%

7.79%

6.71%

7.12%

6.66%

5.85%

4.68%

3.94%

3.93%

Benchmark

5.92%

6.78%

8.86%

4.69%

(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.


87


Multi-asset mutual funds – as of 3/31/2014

Net of Fees

Mutual Fund (Inception)

Benchmark Index

SIMT Multi-Strategy Alternative (3/31/10)

BofA ML U.S. 3M Treasury Bill

SIMT Multi-Asset Accumulation (4/9/12)

Blended Accumulation Benchmark

SIMT Multi-Asset Capital Stability (4/9/12)

Blended Capital Stability Benchmark

SIMT Multi-Asset Income (4/9/12)

Blended Income Benchmark

SIMT Multi-Asset Inflation Managed (4/9/12)

Blended Inflation Benchmark

Before

Waiver

Expense

Ratio (%)

After

Waiver

Expense

Ratio (%)

3.36%

1.40%

1.86%

1.20%

1.02%

1.40%

1.20%

0.62%

0.98%

0.93%

SEI

4.72%

0.05%

-0.75%

5.23%

-4.15%

1-Year

Benchmark

0.07%

11.42%

1.67%

6.07%

0.25%

SEI

#N/A

#N/A

#N/A

#N/A

#N/A

5-Year

Benchmark

#N/A

#N/A

#N/A

#N/A

#N/A

SEI

#N/A

#N/A

#N/A

#N/A

#N/A

10-Year

Benchmark

#N/A

#N/A

#N/A

#N/A

#N/A

Since Inception

SEI

1.40%

5.92%

0.61%

9.68%

-2.27%

Benchmark

0.10%

11.05%

1.70%

7.53%

0.01%

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)


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

88


Money market funds – as of 3/31/2014

Net of Fees

Money Market Fund (Inception)

Benchmark Index

SLAT Prime Obligation A (1/18/82) iMoneyNet First Tier Institutional

STET Tax Free A (11/12/82) iMoneyNet Tax-Free Retail

Before

Waiver

Expense

Ratio (%)

After

Waiver

Expense

Ratio (%)

7-Day

Yield

SEI

Unsubsidized

7-Day Yield

SEI

0.76% 0.24% 0.01% -0.45%

SEI Benchmark SEI Benchmark SEI Benchmark SEI Benchmark

0.01%

1-Year

0.01% 0.02%

5-Year

0.02%

10-Year

1.59% 1.41%

Since Inception

4.23% 0.00%

0.68% 0.16% 0.01% -0.38% 0.01% 0.01% 0.05% 0.02% 1.13% 0.98% 2.82% 0.00%

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.

89

Goals-based performance – as of 3/31/2014

Private Client Strategies

Stability-Focused (SF) Short Term Strategy (12/31/09)

Stability-Focused (SF) Defensive Strategy (7/31/06)

Stability-Focused (SF) Conservative Strategy (7/31/06)

Stability-Focused (SF) Moderate Strategy (7/31/06)

Growth-Focused (GF) Core Market Strategy (7/31/06)

Growth-Focused (GF) Market Growth Strategy (7/31/06)

Growth-Focused (GF) Aggressive Strategy (7/31/06)

Growth-Focused (GF) Equity Strategy (12/31/09)

S&P 500 Index

U.S. TSY Bill

MSCI EAFE

QTD Total

Return

YTD Total

Return

1-Year Total

Return

0.10%

0.75%

1.32%

1.94%

1.85%

0.10%

0.75%

1.32%

1.94%

1.85%

-0.43%

0.63%

2.57%

3.86%

5.40%

1.69%

1.57%

0.92%

1.69%

1.57%

0.92%

7.75%

12.54%

20.39%

5-Year Total

Return

#N/A

3.26%

7.25%

11.36%

12.06%

14.52%

17.64%

#N/A

1.81%

0.01%

0.66%

1.81%

0.01%

0.66%

21.86%

0.07%

17.56%

21.16%

0.12%

16.02%

5-Year Standard

Deviation

0.67%

1.36%

2.98%

5.60%

7.56%

Since Inception

Return Annualized

0.87%

2.08%

2.88%

4.49%

5.34%

10.45%

13.50%

15.14%

5.64%

6.29%

12.49%

13.99%

0.03%

18.48%

--

--

--

Performance assumes investment at the beginning of the period indicated and reflects all recommended reallocations and change s among the funds, including changes in investment managers and funds included in the model. Information on allocations among funds, reallocations and mod el 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. 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.

90

Tax-managed goals-based performance – as of 3/31/2014

Private Client Strategies

Stability-Focused TM Short Term Strategy (12/31/09)

Stability-Focused TM Defensive Strategy (7/31/06)

Stability-Focused TM Conservative Strategy (7/31/06)

Stability-Focused TM Moderate Strategy (7/31/06)

Growth-Focused TM Core Market Strategy (7/31/06)

Growth-Focused TM Market Growth Strategy (7/31/06)

Growth-Focused TM Aggressive Strategy (7/31/06)

Growth-Focused TM Equity Strategy (12/31/09)

S&P 500 Index

U.S. TSY Bill

MSCI EAFE

QTD Total

Return

0.29%

1.24%

1.96%

2.32%

2.23%

1.95%

1.66%

1.31%

YTD Total

Return

0.29%

1.24%

1.96%

2.32%

2.23%

1.95%

1.66%

1.31%

1-Year Total

Return

5-Year Total

Return

0.15%

2.00%

4.79%

7.58%

9.04%

13.56%

17.86%

21.18%

#N/A

5.27%

9.14%

11.26%

12.37%

15.79%

19.01%

#N/A

5-Year

Standard

Deviation

0.47%

2.43%

4.39%

5.84%

7.52%

10.74%

13.98%

15.03%

1.81%

0.01%

0.66%

1.81%

0.01%

0.66%

21.86%

0.07%

17.56%

21.16%

0.12%

16.02%

13.99%

0.03%

18.48%

Since Inception

Return

Annualized

0.79%

3.55%

5.05%

5.64%

5.90%

6.65%

7.28%

13.33%

--

--

--

Performance assumes investment at the beginning of the period indicated and reflects all recommended reallocations and change s among the funds, including changes in investment managers and funds included in the model. Information on allocations among funds, reallocations and mo del 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


91

Institutional performance – as of 3/31/2014

Strategy

Institutional Fixed Income

Institutional Moderate Growth & Income

Institutional Growth & Income

Institutional Capital Growth

Institutional Equity

S&P 500 Index

Lehman Aggregate Bond Index

U.S. TSY Bill 1-3 Month

QTD Total Return (%) YTD Total Return (%)

2.28%

1.78%

1.52%

1.23%

0.92%

2.28%

1.78%

1.52%

1.23%

0.92%

1 Year Return (%)

0.48%

7.91%

11.75%

15.68%

19.43%

5 Year Annualized

Return (%)

9.56%

13.59%

15.50%

17.34%

19.01%

10 Year Annualized

Return (%)

5.22%

6.03%

6.31%

6.51%

6.57%

1.81%

1.84%

0.01%

1.81%

1.84%

0.01%

21.86%

-0.10%

0.07%

21.16%

4.80%

0.12%

7.42%

4.46%

1.65%

Performance assumes investment at the beginning of the period indicated and reflects all recommended reallocations and change s among the funds, including changes in investment managers and funds included in the model. Information on allocations among funds, reallocations and mo del 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


92

Index Definitions

•

The Barclays Capital Global Aggregate Bond Index (formerly Lehman Brothers Global Aggregate Index), an unmanaged market-capitalizationweighted 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.

93

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.

94

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

95

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.

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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. Commodityrelated 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.

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