client investment review 2 nd quarter 2014. agenda › setting goals follow-up from last meeting...

Client Investment Review2nd Quarter 2014

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

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.

Follow Up From Previous MeetingReconnecting on Your Goals

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?

Identify the appropriate investment strategies to meet your goals

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Your Goals › Ongoing Monitor and Review

Identify your goals and resources

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

Implement the Goals-Based investment solution

Monitor investment strategies & progress to

goals on an on-going basis

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.

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.

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.

Economic ReviewEconomic & Market Insights

Global Market Review

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.

• Despite weather-related setbacks to growth early in the year, global economic activity appears to be firming.

• Central bank policy efforts also remain supportive of investor risk taking, but policy divergence has begun.

– The U.S. is tapering, the U.K. may hike, Europe has cut, and Japan is eager to further increase its balance sheet.

• In terms of risks, low volatility across asset classes and the current, extended period of no major equity market correction (i.e., 10%) are concerning.

• Reflecting recent investor confidence, equity markets outpaced fixed income, with emerging-market equity rebounding.

• While there is risk of a pullback in equities, SEI believes the current bull market can be supported by central bank policy and favorable trends in the labor market, the yield curve, and consumer attitudes.

Fixed-Income Market Review

Source: FactSet, SEI

• Global bond yields continued to trend downward due to soft patches in economic data and geopolitical issues.

• U.S. yields saw additional increased pressure as other government yields—which could be perceived as riskier (e.g., Spain)—fell to similar levels.

• With inflationary pressures in check (or non-existing) and economic growth still on the mend, expectations are for the Fed to remain with low rates well into next year.

– The U.S. yield curve remains steep, which is also encouraging for continued economic growth.

• Given central bank policies, yields in riskier assets continue to be driven lower as investors seek higher yielding assets.

– The yield spread above Treasurys (OAS) for credit exposure is tightening.

• Our positioning seeks to benefit from:

– Shorter duration profile in anticipation of higher rates

– Modest bias toward credit through selection specialist managers

– Curve positioning trades (curve flattener) to benefit from the steepness of the yield curve

– Moving up in credit quality in high yield to bank loans

337 bps

81 bps

Equity Market Review

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.

• After a choppy first quarter, global equities marched higher as volatility fell to muted levels.

– The U.S. market has not witnessed a pullback of 10% or more since 2012.

– All U.S. sectors were positive. The energy, utilities, and tech sectors led; while financials and consumer discretionary trailed.

• Global monetary policies—low rates, quantitative easing, and extraordinary stimulus efforts—continue to provide a tailwind for stocks.

• Given the market’s rise, valuations are somewhat elevated but not out of line, given low inflation levels.

• In our view, earnings growth will likely be key in continuing the advancement of global stocks.

– The U.S., Canada, and Japan have witnessed positive earnings growth; Europe has not.

• Absent earnings growth, risk is potential market over-extension.

– Low volatility could also make the market more susceptible to sudden bad news.

• As a result, we continue to focus on quality-growth stocks.

Source (both charts): FactSet, SEI

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The Outlook: Central Banks Still Call the Tune

The Good News

The bull market in global equities appears intact: Market corrections should continue to be viewed as buy-on-the-dip opportunities.

The global economy and financial system continues its slow, drawn-out process of recovery and repair.

We consider a rebound in U.S. housing, a revival of credit growth in Europe, and a recovery in emerging-country exports as critical elements necessary to keep the global expansion on track.

Monetary policies in most countries are geared toward economic expansion and further asset-price inflation.

While developed-market equity valuations are somewhat elevated and fixed-income yield spreads rather tight, we think it is premature to adopt a strongly defensive investment stance.

The Bad News

U.S. bond yields could push higher over the next year as the Federal Reserve steps off the accelerator and inflation moves into the Fed’s target range.

The end of quantitative easing in the U.S. later this year could result in more financial-market volatility.

Policy rates in the United Kingdom could rise by year-end as the Bank of England seeks to dampen speculation in the housing market.

Measures of volatility in equities, bonds, currencies, and commodities have fallen to very low levels, suggesting widespread investor complacency.

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

Global political tensions could worsen, resulting in unexpected economic shocks.

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SEI Outlook

Global economic activity continues on pace for moderate growth, while global policy risks remain.

• The International Monetary Fund forecasts an increase in global growth from 3% in 2013 to 3.6% for 2014, with notable impact from an improving U.S.

• Diverging policies—U.S. tapers, BoE considers hiking, ECB cuts—warrant monitoring, especially given ongoing fiscal consolidation, below-potential GDP levels, and low inflation.

• Continued improvements in housing may hold the key to more robust growth.• Geopolitical risks are always present—currently, Ukraine and the Middle East—and could easily spark investor risk-aversion.

Interest rates are anticipated to trend higher, leading to a challenging environment for investment-grade bonds.

• Alpha opportunities are anticipated to be driven by security selection as spread levels continue to tighten; de-risking in core fixed income is a common theme across managers.

• Corporate credit fundamentals remain stable, but event risk is rising; while financials continue to offer value, managers are credit-neutral overall.

• Non-agency mortgage-backed securities are still favored in light of an improving housing market, credit availability, favorable supply/demand technicals, and attractive loss-adjusted yields.

• The low level of yields and tighter spreads in high yield have led mangers higher in the capital structure (i.e., bank loans).

Equity valuations are elevated, but Fed policy and earnings growth continue to support stocks.

• Low rate policies and injections of liquidity into global markets continues, making safety unappealing while supporting equities.• With valuations higher, multiple expansion will be challenged, placing emphasis on continued earnings growth driven by top-

line (revenue) growth.• Managers continue to favor companies that can deliver earnings growth, subscribing to a quality-growth focus.• Valuation opportunities in Europe and emerging markets attracted investor attention, but regional headwinds should place

emphasis on selection skill.

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Manager Changes2nd Quarter 2014

Manager Changes › Second Quarter 2014

Fund(s) Impacted Additions Rationale

High Yield Bond Benefit Street Partners Expertise across capital structure

Fund(s) Impacted Terminations Rationale

High Yield Bond Guggenheim Investment Mgmt. Higher conviction in other firms

Multi-Strategy Alternative Turner Investment Partners Turnover of key investment professionals

Large Cap WestEnd Advisors Higher conviction in other firms

Tax-Managed Large Cap WestEnd Advisors Higher conviction in other firms

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Your Portfolio Review Statement & Strategy Review

Statement › Your Current Snapshot

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Strategy AppendixStrategy Snapshots & Multi-Style Charts

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SEI Representative Strategy Review

• Investor preference shifted towards riskier asset classes in the second quarter, generally favoring global equity and higher-beta fixed income (such as emerging markets debt). This environment was reflected in positive quarterly strategy returns, which were mostly higher than first-quarter gains.

• Year-to-date performance patterns were similar, reflecting solid gains in equity markets (though small-cap stocks lagged), paired with positive though somewhat more modest returns in investment-grade fixed income. All strategies were in positive territory for both the quarter and year to date, particularly those with more equity-based exposure.

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

0%

1%

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7%

8%

Ne

t Pe

rfo

rman

ce in

%

SEI Private Client StrategiesPerformance as of June 30, 2014

Q2 2014 year to date

Index returns are for illustrative purposes only and do not represent actual fund performance. Index performance returnsdo 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.

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SEI Representative Strategy ReviewStability-Focused Strategies

Source: SEI, BlackRock SolutionsDurations shown as of 6/30/14.Weighted average results derived from the fixed income fund components of Strategy; U.S. Bonds reflects Barclays U.S. Aggregate Bond Index

• 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 exposure seeks capital appreciation with below-market volatility.

• Year-to-date, the U.S. Managed Volatility equity fund outperformed its benchmark by over 150 basis points, and continued to show solid longer-term returns.

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PC Conservative Strategy – Duration (Yrs)

-20-10

010203040506070

Cumulative Return (%) *

U.S. Managed Volatility Russell 3000 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.

* Values were set to zero as of June 30, 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.

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Private Client Short Term Strategy

• The strategy delivered a modest gain for the second quarter, reflecting a favorable environment for Treasury inflation-protected securities (TIPS) and shorter duration U.S. fixed-income securities.

• Quarterly performance was driven primarily by gains in the Multi-Asset Capital Stability and Real Return funds.

• Year-to-date returns were also marginally positive, again driven by gains in Multi-Asset Capital Stability and Real Return. Both funds benefited from TIPS holdings, and Capital Stability was also favorably impacted by its modest equity exposure. Strategy performance was constrained by the continuation of near-zero cash yields.

50%

20%

20%

10% Money Market

Short DurationGovernment

Multi Asset CapitalStability

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 6/30/2014 and subject to change.

Strategy Themes

Private Client Short Term Strategy

Asset allocation as of 6/30/14 and subject to change. Securities as of 5/31/14 and subject to change.

Private Client Defensive Strategy

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 Capital Stability were the strongest performers. Short-Duration Government lagged but still generated a marginally positive return.

• Year-to-date, the strategy’s diversified approach also proved advantageous, aided by its equity (U.S. and Global Managed Volatility), high yield, and diversified income (Multi-Asset Income) components. Shorter duration fixed-income and Treasury inflation-protected securities (TIPS) exposure produced more muted gains.

3%

3% 3%

6%

5%

7%

5%

26%

20%

20%

2%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

Manager changes during the quarter:- Benefit Street Partners added to High Yield Bond- Guggenheim Investment Management removed from High Yield Bond- Turner Investment Partners removed from Multi-Strategy Alternative

Fund Highlight: U.S. Fixed IncomeThree of SEI’s stability-focused strategies employ the U.S. Fixed Income fund. The fund’s second-quarter and YTD gains had a positive impact on strategy performance. Longer-term absolute and relative returns have also been favorable.

The fund maintains a moderate short-duration posture, as interest rates are expected to trend higher on improving economic readings. SEI believes that spread sectors generally offer the most attractive opportunities within the fixed-income universe, and the fund continues to hold overweights in agency and non-agency mortgages, as well as the financial sector.


Private Client Defensive Strategy


Private Client Conservative Strategy

4%9%

8%

6%

6%

3%2%

7%4%5%

8%

13%

15%

10%

Multi-Strat Alternative

Global Mgd Volatility

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

Manager changes during the quarter:- Benefit Street Partners added to High Yield Bond- Guggenheim Investment Management removed from High Yield Bond- Turner Investment Partners removed from Multi-Strategy Alternative

Fund Highlight: U.S. Fixed IncomeThree of SEI’s stability-focused strategies employ the U.S. Fixed Income fund. The fund’s second-quarter and YTD gains had a positive impact on strategy performance. Longer-term absolute and relative returns have also been favorable.


Strategy Themes• During the quarter, the portfolio benefited most from its equity (U.S. and Global Managed Volatility), high yield, and

recently-added emerging markets debt exposure. The three short-duration fixed-income funds held in the portfolio (Short-Duration Government, Ultra Short Duration Bond, and Enhanced Income) lagged but still generated marginally positive returns.

• Year-to-date, the strategy’s diversified approach also proved advantageous, aided by its equity, high yield, and diversified income (Multi-Asset Income) components. Funds with shorter duration fixed-income and Treasury inflation-protected securities (TIPS) exposure produced more muted gains.


Private Client Conservative Strategy


Private Client Moderate Strategy

14%

9%

3%

10%

7%4%10%

10%

5%

7%

4%

5%3%

8% 1%

Global Mgd Volatility

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

Manager changes during the quarter: - Benefit Street Partners added to High Yield Bond- Guggenheim Investment Management removed from High Yield Bond- Turner Investment Partners removed from Multi-Strategy Alternative- WestEnd Advisors removed from Large Cap

Fund Highlight: U.S. Fixed IncomeThree of SEI’s stability-focused strategies employ the U.S. Fixed Income fund. The fund’s second-quarter and YTD gains had a positive impact on the strategy’s absolute performance. Longer-term absolute and relative returns have also been favorable.


Strategy Themes• During the quarter, the portfolio benefited most from its risk parity, emerging markets debt, and U.S. equity exposure. In

particular, Multi-Asset Accumulation, Emerging Markets Debt, U.S. Managed Volatility, and Large Cap were the strongest performers. The two short-duration fixed-income funds held in the portfolio (Short-Duration Government and Enhanced Income) lagged but still generated marginally positive returns.

• Year-to-date, the strategy’s diversified approach also proved advantageous, aided by its risk parity, emerging markets debt, U.S. and global equity, and high yield components. Funds with shorter duration fixed-income and Treasury inflation-protected securities (TIPS) exposure produced more muted gains.


Private Client Moderate Strategy


Multi-Asset Income Fund

• The Multi-Asset Income Fund is held in five of the non-tax-managed Private Client strategies.

• The fund utilizes a differentiated, non-benchmark-constrained, “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 fixed-income investing, the fund has delivered positive returns for the second quarter, trailing year, and since-inception* periods of 1.3%, 7.6%, and 9.2% (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.

*Inception date: 4/09/2012. 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 6/30/2014 and subject to change.

15%

3%

7%

3%

20%

10%3%

7%

9%

17%

5%1%

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

Private Client Core Market Strategy

Strategy Themes• The strategy benefited from its diversified approach during the second quarter, as performance was aided by solid gains in

Emerging Markets Equity, Multi-Asset Accumulation (risk parity), and Emerging Markets Debt. Small Cap, recently-added Multi-Asset Income, and Multi-Strategy Alternative lagged but still generated positive returns.

• Year-to-date strategy performance was driven by a 10.2% gain in Multi-Asset Accumulation, as well as solid returns in Emerging Markets Debt and Large Cap; but was constrained by more modest advances in Multi-Strategy Alternative, Small Cap, and Multi-Asset Inflation.

1%Manager changes during the quarter: - Benefit Street Partners added to High Yield Bond- Guggenheim Investment Management removed from High Yield Bond- Turner Investment Partners removed from Multi-Strategy Alternative- WestEnd Advisors removed from Large Cap

Fund Highlights: Large Cap and Small CapSEI’s growth-focused strategies employ both the Large Cap and Small Cap funds. Gains in Large Cap supported the strategy for the second quarter and year-to-date periods, while Small Cap generated more muted positive returns.

For the most part, both funds reflect a constructive view on the U.S. economy, expressed through a pro-growth and pro-momentum bias. This has been accompanied by a de-emphasis of interest-rate sensitive sectors like financials and utilities; such fixed-income proxy equities could be negatively impacted by a rise in real interest rates.


Private Client Core Market Strategy


Private Client Market Growth Strategy


Emerging Markets Equity, Multi-Asset Accumulation (risk parity), and Emerging Markets Debt. Small Cap, recently-added Multi-Asset Income, and Multi-Strategy Alternative lagged but still generated positive returns.

• Year-to-date strategy performance was driven by a 10.2% gain in Multi-Asset Accumulation, as well as solid returns in Emerging Markets Debt and Large Cap; but was constrained by more modest advances in Multi-Strategy Alternative, Small Cap, and Multi-Asset Inflation.

23%

4%

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8% 3%1%

U.S. Large Cap

U.S. Small Cap





Multi Asset Income


High-Yield Bond

U.S. Fixed Income


Money Market

1%Manager changes during the quarter: - Benefit Street Partners added to High Yield Bond- Guggenheim Investment Management removed from High Yield Bond- Turner Investment Partners removed from Multi-Strategy Alternative- WestEnd Advisors removed from Large Cap

Fund Highlights: Large Cap and Small CapSEI’s growth-focused strategies employ both the Large Cap and Small Cap funds. Gains in Large Cap supported the strategy for the second quarter and year-to-date periods, while Small Cap generated more muted positive returns.



Private Client Market Growth Strategy


35%

6%

16%

7%

20%

8%

7% 1%U.S. Large Cap

U.S. Small Cap





High-Yield Bond

Money Market

Private Client Aggressive Strategy1%

Manager changes during the quarter: - Benefit Street Partners added to High Yield Bond- Guggenheim Investment Management removed from High Yield Bond- WestEnd Advisors removed from Large Cap

Fund Highlights: Large Cap and Small CapSEI’s growth-focused strategies employ both the Large Cap and Small Cap funds. Gains in both funds contributed on an absolute basis to the strategy’s second quarter and year-to-date positive returns.



Emerging Markets Equity, Multi-Asset Accumulation (risk parity), and Emerging Markets Debt. Small Cap and High Yield lagged but still generated positive returns.

• Year-to-date strategy performance was driven by a 10.2% gain in Multi-Asset Accumulation, as well as solid returns in Emerging Markets Debt and Large Cap; but was constrained by more modest advances in Small Cap and International Equity.


Private Client Aggressive Strategy


56%

14%

19%

10% 1%

U.S. Large Cap

U.S. Small Cap



Money Market

Private Client Equity Strategy1%

Manager changes during the quarter:- WestEnd Advisors removed from Large Cap

Fund Highlights: Large Cap and Small Cap

SEI’s growth-focused strategies employ both the Large Cap and Small Cap funds. Gains in both funds contributed on an absolute basis to the strategy’s second quarter and year-to-date positive returns.


Strategy Themes• The strategy’s second-quarter return was driven by gains in Emerging Markets Equity and Large Cap. Small Cap and

International Equity lagged but still generated positive returns.

• Year-to-date strategy performance also benefited from solid returns in Large Cap and Emerging Markets Equity. Similar to the quarter’s performance pattern, Small Cap and International Equity experienced more muted advances.


Private Client Equity Strategy


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.

• Year to date, the fund has benefited from its diversified approach, returning 10.2% and exceeding its blended benchmark* by over 500 basis points.

• On a risk-weighted basis, the fund’s allocation to Global Equities, Global Bonds, and Inflation-Related assets are very close to their long-term strategic targets. The fund has reduced its risk-weighted allocation to Global Equities since the beginning of the year.

*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 6/30/2014 and subject to change.

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Global Equity Global Bonds Inflation Related

Risk Weighted Allocations

6/30/2014 12/31/2014 Strategic

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Tax-Managed Models

Private Client Tax-Managed Short Term Strategy

Strategy Themes

• The strategy delivered a modest gain for the second quarter, reflecting a mostly favorable environment for short to medium duration U.S. fixed-income securities. Each component fund rose during the quarter, with Intermediate-Term Municipal showing the largest gain.

• Year-to-date returns were also marginally positive, again driven by a meaningful gain in Intermediate-Term Municipal and a slight advance in Short Duration Municipal. Following a difficult 2013, municipal securities have enjoyed a solid recovery so far this year. Strategy performance was somewhat constrained by the continuation of near-zero cash yields.

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Short Duration Municipal

Intermediate Term Muni

Tax Free Money Market

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 second quarter and the year to date; consistent with its focus on capital preservation, the fund has never experienced a calendar year decline since its November 2003 inception.

The fund holds roughly 2/3 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 yield is more than double that of its benchmark, with a duration about 25% shorter.


Private Client Tax-Managed Short Term Strategy


Private Client Tax-Managed Defensive Strategy

Strategy Themes

• During the quarter, the portfolio benefited most from its equity and high-yield exposure. In particular, Tax-Managed Managed Volatility and Tax-Advantaged Income (a blend of high-yield municipal securities and preferred stocks) were the strongest performers. Short Duration Municipal lagged but still generated a marginally positive return.

• Year-to-date, the strategy’s diversified approach also proved advantageous, benefiting from its low-volatility equity, high yield, and intermediate municipal components. Shorter duration municipal exposure produced more muted gains.

10%

69%

10%

10%1%

Tax-Mgd Mgd Volatility



Tax-Advantaged Income


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 second quarter and the year to date; consistent with its focus on capital preservation, the fund has never experienced a calendar year decline since its November 2003 inception.



Private Client Tax-Managed Defensive Strategy


Private Client Tax-Managed Conservative Strategy

Strategy Themes

• During the quarter, the portfolio benefited most from its equity and high-yield exposure. In particular, Tax-Managed Managed Volatility, Tax-Managed Large Cap, and Tax-Advantaged Income (a blend of high-yield municipal securities and preferred stocks) were the strongest performers. Short Duration Municipal lagged but still generated a marginally positive return.

• Year-to-date, the strategy’s diversified approach also proved advantageous, benefiting from its equity, high yield, and intermediate municipal components. Shorter duration municipal exposure produced more muted gains.

20%

5%

49%

10%

15%1%


Tax-Managed Large Cap





Manager changes during the quarter:- WestEnd Advisors removed from Tax-Managed Large Cap

Fund Highlight: Short Duration MunicipalAll four of SEI’s tax-managed stability-focused strategies employ the Short Duration Municipal fund. The fund achieved slightly positive returns for both the second quarter and the year to date; consistent with its focus on capital preservation, the fund has never experienced a calendar year decline since its November 2003 inception.



Private Client Tax-Managed Conservative Strategy


Private Client Tax-Managed Moderate Strategy

Strategy Themes

• During the quarter, the portfolio benefited most from its equity and high-yield exposure. In particular, Tax-Managed Managed Volatility, Tax-Managed Large Cap, Tax-Advantaged Income (a blend of high-yield municipal securities and preferred stocks), and International Equity were the strongest performers. Short Duration Municipal lagged but still generated a marginally positive return.

• Year-to-date, the strategy’s diversified approach also proved advantageous, benefiting from its U.S. equity, high yield, and intermediate municipal components. Shorter duration municipal and international equity exposure produced more muted gains.

25%

10%

5%

27%

20%

12%1%


Tax-Managed Large Cap







Fund Highlight: Short Duration MunicipalAll four of SEI’s tax-managed stability-focused strategies employ the Short Duration Municipal fund. The fund achieved slightly positive returns for both the second quarter and the year to date; consistent with its focus on capital preservation, the fund has never experienced a calendar year decline since its November 2003 inception.



Private Client Tax-Managed Moderate Strategy


Private Client Tax-Managed Core Market Strategy


Emerging Markets Equity, Emerging Markets Debt, and Tax-Managed Large Cap. Intermediate Term Municipal lagged but still generated a positive return.

• Year-to-date strategy performance was driven by solid returns in Tax-Advantaged Income (high-yield municipal securities and preferred stocks), Emerging Markets Debt, and Tax-Managed Large Cap; but was constrained by more modest advances in International Equity and Intermediate Term Municipal.

30%

5%

8%1%

40%

12%

3%1%

Tax-Mgd Large Cap

Tax-Mgd Small/Mid Cap


Emerging Mkts Equity



Emerging Mkt Debt



Fund Highlights: Tax-Managed Large Cap and Small/Mid CapSEI’s tax-managed growth-focused strategies use both the Large Cap and Small/Mid Cap funds. Gains in Large Cap supported the strategy for the second quarter and year-to-date periods, while Small/Mid Cap generated more muted positive returns.



Private Client Tax-Managed Core Market Strategy


Private Client Tax-Managed Market Growth Strategy


Emerging Markets Equity, Emerging Markets Debt, and Tax-Managed Large Cap. Intermediate Term Municipal lagged but still generated a positive return.

• Year-to-date strategy performance was driven by solid returns in Tax-Advantaged Income (high-yield municipal securities and preferred stocks), Emerging Markets Debt, and Tax-Managed Large Cap; but was constrained by more modest advances in International Equity and Intermediate Term Municipal.

45%

8%10%

3%

19%

10%

4%1%

Tax-Mgd Large Cap






Emerging Mkt Debt



Fund Highlights: Tax-Managed Large Cap and Small/Mid CapSEI’s tax-managed growth-focused strategies use both the Large Cap and Small/Mid Cap funds. Gains in both funds contributed on an absolute basis to the strategy’s second quarter and year-to-date positive returns.



Private Client Tax-Managed Market Growth Strategy


Private Client Tax-Managed Aggressive Strategy


Emerging Markets Equity, Emerging Markets Debt, and Tax-Managed Large Cap. International Equity and Tax-Advantaged Income (high-yield municipal securities and preferred stocks) lagged but still generated positive returns.

• Year-to-date strategy performance was driven by solid returns in Tax-Advantaged Income, Emerging Markets Debt, and Tax-Managed Large Cap; but was constrained by a more modest advance in International Equity.

58%

11%

13%

4%

7%

6% 1%Tax-Mgd Large Cap





Emerging Mkt Debt






Private Client Tax-Managed Aggressive Strategy


Private Client Tax-Managed Equity Strategy

Strategy Themes• The strategy’s second-quarter return was driven by gains in Emerging Markets Equity and Tax-Managed Large Cap.

International Equity and Small/Mid Cap lagged but still generated positive returns.

• Year-to-date strategy performance also benefited from solid returns in Tax-Managed Large Cap and Emerging Markets Equity, as well as Tax-Managed Small/Mid Cap. Similar to the second quarter, International Equity experienced a more muted advance.

65%

14%

15%

5%1%

Tax-Mgd Large Cap









Private Client Tax-Managed Equity Strategy


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Institutional Models

Institutional Capital Growth Strategy

Strategy Themes

• The strategy benefited from its diversified approach during the second quarter, as performance was driven by solid gains in Emerging Markets Equity, Emerging Markets Debt, and Large Cap Value. Small Cap Growth and International Fixed Income lagged but still generated marginally positive returns.

• Year-to-date strategy performance also benefited from strong returns in Large Cap Value, Emerging Markets Debt, and Emerging Markets Equity, as well as High Yield; but was constrained by more muted gains in Small Cap Growth and International Equity.

25%

23%

4%4%

16%

8%

12%

2%3%2%

1%

Large Cap Value

Large Cap Growth

Small Cap Value

Small Cap Growth



Core Fixed Income

High Yield Bond

Int'l Fixed Income


Money Market

1%Manager changes during the quarter: - Benefit Street Partners added to High Yield Bond- Guggenheim Investment Management removed from High Yield Bond

Fund Highlight: Core Fixed IncomeFive of SEI’s six institutional strategies employ the Core Fixed Income fund. The fund’s second-quarter and YTD gains had a positive impact on the strategy’s absolute performance. Longer-term absolute and relative returns have also been very favorable.


Sources: SEI, FactSet. Returns are net of fees. 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 6/30/2014 and subject to change.

Institutional Capital Growth Strategy


Institutional Moderate Growth & Income Strategy

Strategy Themes



12%

12%

2%2%

8%

4%38%

6%

9%

6%1%

Large Cap Value

Large Cap Growth

Small Cap Value

Small Cap Growth



Core Fixed Income

High Yield Bond

Int'l Fixed Income


Money Market





Institutional Moderate Growth & Income Strategy


Institutional Growth & Income Strategy

Strategy Themes



17%

19%

3%3%

12%6%

25%

4%

6%

4%1%

Large Cap Value

Large Cap Growth

Small Cap Value

Small Cap Growth



Core Fixed Income

High Yield Bond

Int'l Fixed Income


Money Market





Institutional Growth & Income Strategy


Tax-Sensitive 40 Strategy

Strategy Themes

• The strategy benefited from its diversified approach during the second quarter, as performance was aided by solid gains in Emerging Markets Equity, Emerging Markets Debt, and Tax-Managed Large Cap. International Fixed Income and Intermediate Term Municipal lagged but still generated positive returns.

• Year-to-date strategy performance was driven by solid returns in Emerging Markets Debt, Tax-Managed Large Cap, and Tax-Managed Small/Mid Cap; but was constrained by more modest advances in International Equity and International Fixed Income.

24%

4%

8%

4%38%

6%

9%

6%1%

Tax-Mgd Large CapTax-Mgd Small/Mid CapInternational EquityEmerging Mkts EquityIntermediate Term MuniHigh YieldInt'l Fixed IncomeEmerging Markets DebtTax Free Money Market

Manager changes during the quarter: - Benefit Street Partners added to High Yield Bond- Guggenheim Investment Management removed from High Yield Bond- WestEnd Advisors removed from Tax-Managed Large Cap





Strategy Themes

• The strategy benefited from its diversified approach during the second quarter, as performance was aided by solid gains in Emerging Markets Equity, Emerging Markets Debt, and Tax-Managed Large Cap. International Fixed Income and Intermediate Term Municipal lagged but still generated positive returns.

• Year-to-date strategy performance was driven by solid returns in Emerging Markets Debt, Tax-Managed Large Cap, and Tax-Managed Small/Mid Cap; but was constrained by more modest advances in International Equity and International Fixed Income.

36%

6%

12%6%

25%

4%

6%

4%1%

Tax-Mgd Large CapTax-Mgd Small/Mid CapInternational EquityEmerging Mkts EquityIntermediate Term MuniHigh YieldInt'l Fixed IncomeEmerging Markets DebtTax Free Money Market

Manager changes during the quarter: - Benefit Street Partners added to High Yield Bond- Guggenheim Investment Management removed from High Yield Bond- WestEnd Advisors removed from Tax-Managed Large Cap





Strategy Themes• The strategy’s second-quarter return was driven by gains in Emerging Markets Equity and Tax-Managed Large Cap.

International Equity and Small/Mid Cap lagged but still generated positive returns.

• Year-to-date strategy performance also benefited from solid returns in Tax-Managed Large Cap and Emerging Markets Equity, as well as Tax-Managed Small/Mid Cap. Similar to the second quarter, International Equity experienced a more muted advance.

59%

10%

20%

10%1%

Tax-Mgd Large Cap





Manager changes during the quarter: - WestEnd Advisors removed from Tax-Managed Large Cap

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

SEI’s tax-managed growth-focused strategies use both the Large Cap and Small/Mid Cap funds. Gains in both funds contributed on an absolute basis to the strategy’s second quarter and year-to-date positive returns.



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Point of ViewEconomic Outlook

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Running Bulls

Sources: Data are computed from the S&P 500 since 1957 and S&P 90 from 1926 to 1957. Data before 1926 are from Cowles and Associates, interpolated by Professor Robert Shiller from annual data.

• The current bull market, up more than 150% in price-only terms since March 2009 (as measured by the S&P 500), has entered its sixty-fourth month.

• The equity rally now exceeds the average bull market in both duration and magnitude.

• This bull market could approach the four “granddaddy bulls,” which recorded price gains of two-to-three times the magnitude and duration of the current rally.

• Of course, by the end of those big runs, equities were extremely overvalued and vulnerable.

• We do think there is still room for equities to run to the upside—not just in the U.S., but elsewhere in the world too—without a bear-market correction.

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Volatility Rising?

• The current spot level of the VIX is low, but the futures curve suggests expectations are less complacent than one might think.

• While the current spot rate of the VIX is near that of February 2007 (around the time the sub-prime crisis was just starting to register on investors’ radar screens), the term structure (the values traders expect the VIX to take at various points in the future) is considerably steeper. This implies that VIX traders anticipate a more substantial rise in equity volatility over the next few months than they did seven years ago.

• By contrast, VIX expectations are tamer than they were prior to the market’s taper tantrum in May 2013, when the Federal Reserve (Fed) surprised markets by announcing intentions to taper its bond purchases. The higher term structure that prevailed last year may have limited downside reaction to the surprise announcement.

• It’s possible that an unexpected piece of bad news could elicit a more substantial correction in large-cap equities in today’s market than we saw last summer. Valuations are somewhat higher, and investors are not hedging against a possible decline as aggressively.

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The Labor-Market Looks Up

• The labor market, which had been a drag on the recovery for years, has turned in a steady series of positive reports.

• Nonfarm payrolls have expanded by more than 200,000 per month for the past several months, a trend that we expect to continue. Headline and long-term unemployment are both down as well.

• Developments suggest that payroll employment will continue to increase, and that the unemployment rate will continue to decline:

– According to the Bureau of Labor Services, the number of job openings in the U.S. has begun to rise rapidly.

– Business sentiment has begun to improve markedly.

• This, in turn, should bolster incomes and provide a solid foundation for further growth in consumer spending and the economy as a whole.

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Round and Round, but Not Upside Down

.

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

• Today’s yield curve, as measured by the difference between 10-year and 2-year Treasury yields, is nowhere near the levels that have preceded the last three U.S. recessions. This spread is likely to flatten over time as the Fed shifts away from its ultra-loose policy position.

• We expect bond yields to drift upward through the rest 2014, following a surprisingly sharp bond rally in the year-to-date.

• The first Federal funds rate hike could occur in early-to-mid 2015, but will likely be delayed further into the future if gross domestic product (GDP) growth fails to accelerate above a 3% annual rate.

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U.S. Slow Recovery Continues

• Investors were tolerant of the 2.9% annualized shortfall in inflation-adjusted gross domestic product during the first quarter, since much of it resulted from the unusually severe winter weather that struck a large swath of the country.

• When the year-over-year change in real GDP has decelerated to a 1.5% year-over-year pace, as it has now, the economy has frequently fallen into recession.

– This pattern ignores unusually positive macroeconomic elements, the most important of which is the Fed’s determination to keep interest rates near zero as long as it takes to boost the pace of the expansion.

• More timely economic releases point to a better-than-seasonal bounce-back, with second-quarter GDP likely topping a 3.0% annual rate by a comfortable margin.

• There is no clear sign, however, that growth above the 3.0% mark can be sustained through the rest of the year and into 2015.

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Housing Market is a Key Driver

• The housing market represents an important key to a stronger and broader expansion.

• Although residential investment as a percent of GDP is relatively small at about 2.5%, its contribution to growth is much greater, owing to its historical volatility.

• The absence of a sharp cyclical upswing in home sales and construction has been an important reason why the U.S. recovery has been so unimpressive.

• Home sales are not on pace to set any records, but inventories are low and affordability is good.

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Housing Starts Still Slow

• Construction has a powerful multiplier effect. Not only does it create high-paying construction jobs, but it also stimulates financial activity (such as brokerage and mortgage-making), infrastructure development (roads, schools) and the consumption of goods and services (furniture, appliances and home improvement activity).

• From 1990 (near a recessionary low) to the peak in January, the U.S. housing market increased 136%. By contrast, the next best performer was Canada. Housing starts in that country doubled from 1990 into its peak in June 2004–some 19 months before U.S. new-home construction activity topped out.

• Since the onset of the housing crisis, the U.S. suffered the worst collapse in housing starts, with an incredible 80% peak-to-trough decline.

• Although activity has improved more decisively in the U.S. than elsewhere since the April 2009 low, the level of new housing starts is no higher today than it was 24 years ago.

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Lending Lags

• Although mortgage rates have drifted lower in recent months, and lending standards are easing, the mortgage market remains moribund.

• There has been a big drop in mortgage applications (encompassing new mortgages for home purchases as well as the re-financing of existing mortgages) since the mid-2013 Fed taper announcement.

• First-time homebuyers are essentially locked out of the housing market, limiting the natural progression of trading up to bigger homes by existing owners.

• The trade-up market has also been constrained because the percentage of upside-down mortgages is still historically high.

• The good news: the percentage of borrowers with negative equity has been cut by more than half in the past five years to about 12%.

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Mortgage Debt a Concern in Many Nations

• The U.S. isn’t the only country suffering a prolonged housing-related hangover. Indeed, it may not even have the biggest housing problem nowadays.

• A recent report by the International Monetary Fund examined the price of homes relative to income and the cost of renting. On both measures the U.S. housing market appears reasonably valued.

• By contrast, Canada ranks as one of the most expensive housing markets in the world. Canada avoided the sub-prime mania, and was subject to a remarkably brief and shallow economic recession versus its peers. As a result, the housing market did not implode, and households were not forced to engage in deleveraging.

• Unfortunately, this very success has created a new set of problems: home prices in the country look to be in bubble territory, and household debt as a percent of GDP continues to push sharply higher.

• We harbor a suspicion that the country may have simply deferred its date with debt deleveraging instead of escaping the need altogether.

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Home Prices at Lofty Levels

• The United Kingdom is another country where a strong housing market and booming pricing (at least in London and the South East) have stirred concerns of an emerging bubble.

• The Bank of England has already issued numerous warnings that interest rates may need to rise if other “macro prudential” measures, such as higher down payments and lending caps on mortgages, fail to take some air out of the market.

• Meanwhile, eurozone countries (such as Belgium, France and the Netherlands) that exhibit elevated housing costs have little flexibility to respond, even if they prefer to be proactive in addressing the issue, since monetary policy is set by the ECB.

• A 20-year view of home prices internationally shows real home prices have increased the most in the U.K and in Ireland, although the latter has had a much bigger housing bust–down about 45% since the first quarter of 2008.

• Of the eight countries tracked in the chart, only Japan and Germany have experienced an outright decline in home prices on an inflation-adjusted basis.

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Central Bank Action

• The aggressive actions of the world’s central banks are a driving force behind the extended rally in equities and other risky assets.

• The Fed’s tapering of its Treasury and mortgage-backed securities purchases is just starting to show up in the data. However, compared to most other major central banks in the chart, it remains in distinctly easing mode—at least for another few months.

• The Bank of England eased off the accelerator as economic recovery took hold more convincingly last year.

• After a slow start compared to the other central banks, the Bank of Japan is making up for lost time. The Bank continues to pursue a credit expansion policy, with the intent to keep growing the central bank’s balance sheet until inflation expectations are firmly anchored closer to the Bank’s 2.0% target rate.

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European Central Bank Eases Monetary Policy

• The European Central Bank has taken steps to further ease monetary conditions in an attempt to jump start eurozone economic growth and lean against disinflationary price trends.

• The Bank announced a relatively small10-basis point lowering of its main refinancing rate from 0.25% to 0.15%, as well as a rate of negative 0.10% on deposits of excess reserves.

• The negative deposit rate on excess reserves is not as big a deal as some might think. The overnight reserves on deposit with the ECB have declined dramatically, from €800 billion in the first half of 2012 to almost €25 billion currently.

• Assurances of a less conservative approach to the Bank’s Securities Markets Program purchases should add €150 billion of fresh liquidity to the program.

• The biggest hope rests in the Bank’s offer of long-term refinancing operations aimed at expanding credit to non-financial private businesses. The last policy move effectively provides banks with €400 billion of 3-to-4 year funding at 25 basis points

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Fed Support


• As the Fed tries to normalize its policy settings by ending quantitative easing (QE) bond-buying operations, we need to be on the lookout for a negative market reaction.

• There has been a definite tendency for stocks to appreciate when the Fed is providing liquidity to the financial markets with its bond purchases.

• When that liquidity source is taken away—or even the possibility of removal is mentioned—stocks have hit an air pocket of some consequence.

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Inflation

• We find Fed Chair Yellen’s nonchalance regarding recent inflation trends to be a bit unnerving.

• Granted, the Fed’s actual inflation benchmark (the core personal consumption expenditures chained price index published by the Bureau of Economic Analysis) is still comfortably below the Fed’s 2% target.

• But even that measure has strengthened to a year-over-year rate of 1.5%, its strongest reading in more than a year.

• If U.S. inflation continues to accelerate–an outcome that carries a relatively high probability, in our view–concerns may arise that that the Fed is falling behind the curve.

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Emerging Market Struggles


• Even after a powerful rebound in recent months, the equity markets of the Brazil, Russia, India, China and South Africa are no higher in dollar terms than they were in 2010-11.

• The performance of the biggest emerging markets is poor in absolute terms; since 2010 it has been simply abysmal relative to the stock markets of the developed world.

• Slower growth in emerging economies, deteriorating trade fundamentals, poor corporate governance and political instability have all played a role, depending on the country.

• It’s only been in the past couple of years, however, that the divergent trends in valuation multiples between emerging and developed markets have become a leading cause of the relative price decline.

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Emerging Markets: A Closer Look


• The MSCI Emerging Markets Total Return Index has recorded a 31% relative price decline versus the MSCI World Total Return Index in U.S.-dollar terms.

• This valuation gap, with the forward price-to-earnings (FPE) ratio of the MSCI Emerging Markets Index languishing around 9-to-11 times since 2011, and the FPE on the MSCI World Index rising to a recent reading of 15 times, has not been this wide since 2005.

• The FPE ratios of Russia (4.7) and China (8.8) are particularly low, perhaps for good reason. But, on balance, we think it can be safely said that a great deal of bad news is already reflected in valuations.

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Manager Positioning

Fixed Income

Fixed-income funds are overweight credit. In the high-yield space, we remain overweight CCC rated versus BB rated debt; however, some managers have been rotating out of high-yield debt into bank loans, which have a higher rating. In core-fixed income strategies, we have an overweight to the financial sector but are credit-neutral overall. Both agency and non-agency mortgages are overweight. De-risking is a common theme in investment-grade fixed income. In emerging-markets, local-currency debt is regaining favor, but our managers are still underweight their benchmark. Managers are short duration and have an off-benchmark exposure to corporates. Geographically, Latin America is overweight and Europe is underweight.

Equity

Equity managers in the U.S. have been moving down the capitalization spectrum and taking on a somewhat deeper cyclical exposure. There is a tendency to shy away from interest-rate sensitive sectors like financials and utilities. Internationally, European equity managers also are showing a positive momentum tilt. Managers in Asia are underweight Australia, especially that country’s major banks, which have very high valuations. In emerging Asian markets, the emphasis is on bottom-up stock picking.

Alternatives

Alternatives strategies are operating along similar lines as the equity and fixed-income managers. The bias in equity portfolios is toward growth and momentum; gross equity exposure is at a post-crisis peak, while net exposure is near its highest level in two years. Event-driven strategies are strongly focused on opportunities in the equity market as merger-and-acquisition activity accelerates, dividends increase and stock buybacks continue at a strong pace.

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Appendix

SEI performance summary Fixed-income mutual funds – as of 6/30/2014

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

Net of Fees Quarter-End Return Year-to-Date ReturnFixed-Income Mutual FundBenchmark Index

SEI Benchmark SEI Benchmark

SIMT Core Fixed IncomeBarclays Capital U.S. Aggregate Bond 2.35% 2.04% 4.65% 3.93%SIT Emerging Markets Debt50% JPM EMBI Global Div & 50% JPM GBI EM Global Div 4.58% 4.39% 7.19% 7.35%SIMT Enhanced IncomeBofA ML USD 3M LIBOR Constant Maturity 0.66% 0.06% 1.16% 0.12%SIMT High Yield BondBofA ML USD High Yield Constrained 2.36% 2.57% 5.21% 5.64%STET Intermediate Term MunicipalBarclays Capital 3-15 Year Muni Blend 2.07% 2.10% 4.39% 4.62%SIT International Fixed IncomeBofA ML USD High Yield Constrained 1.89% 1.95% 3.94% 4.15%SIMT Real ReturnBarclays Capital 1-5 Year U.S. TIPS 1.68% 1.82% 1.78% 2.03%SDIT Short-Duration GovernmentBofA ML 1-3 Year U.S. Treasury 0.35% 0.27% 0.39% 0.41%STET Short Duration MunicipalBarclays Capital 1 Year Municipal Bond 0.33% 0.22% 0.48% 0.47%STET Tax-Advantaged IncomeBarclays Capital 60/40 HY Muni and Muni 2.88% 1.96% 8.05% 6.92%SDIT Ultra Short BondBarclays Capital Short UST 9-12 Month 0.32% 0.06% 0.50% 0.14%SIMT U.S. Fixed IncomeBarclays Capital U.S. Aggregate Bond 2.01% 2.04% 3.96% 3.93%

Net of Fees Quarter-End Return Year-to-Date ReturnEquity Mutual FundBenchmark Index


SIT Emerging Markets EquityMSCI Emerging Markets 7.01% 6.60% 5.21% 6.14%SIMT Global Managed VolatilityMSCI World 3.68% 4.38% 6.93% 5.47%SIT International EquityMSCI EAFE 2.84% 4.09% 3.04% 4.78%SIMT Large CapRussell 1000 4.18% 5.12% 5.58% 7.27%SIMT Large Cap GrowthRussell 1000 Growth 3.61% 5.13% 4.02% 6.31%SIMT Large Cap ValueRussell 1000 Value 4.51% 5.10% 7.46% 8.28%SIMT Mid CapRussell Midcap 4.48% 4.97% 7.95% 8.67%SIMT Real EstateWilshire RESI (Float-Adjusted) 6.86% 7.22% 17.54% 17.93%SIMT Small CapRussell 2000 1.24% 2.05% 2.44% 3.19%SIMT Small Cap GrowthRussell 2000 Growth 1.11% 1.72% 1.45% 2.22%SIMT Small Cap ValueRussell 2000 Value 2.87% 2.38% 4.31% 4.20%SIMT U.S. Managed VolatilityRussell 3000 4.29% 4.87% 8.59% 6.94%

SEI performance summary Equity mutual funds – as of 6/30/2014


Net of Fees Quarter-End Return Year-to-Date ReturnEquity Mutual FundBenchmark Index


SIMT Tax-Managed Large CapRussell 1000 4.25% 5.12% 5.96% 7.27%SIMT Tax-Managed Managed VolatilityRussell 3000 4.34% 4.87% 8.58% 6.94%SIMT Tax-Managed Small/Mid CapRussell 2500 3.15% 3.57% 5.31% 5.95%

SEI performance summary Equity mutual funds – as of 6/30/2014 (continued)


Net of Fees Quarter-End Return Year-to-Date Return

Mutual FundBenchmark Index


SIMT Multi-Strategy AlternativeBofA ML US 3M Treasury Bill 1.39% 0.01% 2.40% 0.02%SIMT Multi-Asset AccumulationBlended Accumulation Benchmark 6.49% 3.43% 10.17% 4.96%SIMT Multi-Asset Capital StabilityBlended Capital Stability Benchmark 2.20% 0.57% 2.61% 0.89%SIMT Multi-Asset IncomeBlended Income Benchmark 1.32% 2.73% 4.10% 5.11%SIMT Multi-Asset Inflation ManagedBlended Inflation Benchmark 2.01% 1.75% 2.66% 3.65%

SEI performance summaryMulti-asset mutual funds – as of 6/30/2014


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)

SEI annualized performance summaryFixed-income mutual funds – as of 6/30/2014

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

Net of FeesBefore Waiver

After Waiver

1-Year 5-Year 10-Year Since Inception

Fixed-Income Mutual Fund (Inception)Benchmark Index

Expense Ratio (%)

Expense Ratio (%)

SEI Benchmark SEI Benchmark SEI Benchmark SEI Benchmark

SIMT Core Fixed Income (5/1/87)Barclays Capital U.S. Aggregate Bond 0.86% 0.68% 5.28% 4.37% 7.97% 4.85% 5.37% 4.93% 6.64% 6.86%SIT Emerging Markets Debt (6/26/97)50% JPM EMBI Global Div & 50% JPM GBI EM Global Div 1.81% 1.36% 5.38% 7.75% 9.91% 9.57% 9.45% 9.01% 9.65% 8.89%SIMT Enhanced Income (7/27/06)BofA ML USD 3M LIBOR Constant Mat 1.05% 0.60% 2.70% 0.21% 4.75% 0.35% #N/A #N/A -0.30% 1.78%SIMT High Yield Bond (1/11/95)BofA ML USD High Yield Constrained 1.13% 0.90% 10.25% 11.79% 14.84% 13.89% 7.91% 8.90% 7.84% 8.37%STET Intermediate Term Municipal (9/5/89)Barclays Capital 3-15 Year Muni Blend 0.85% 0.63% 4.95% 5.63% 5.11% 5.18% 4.09% 4.68% 5.01% 5.68%SIT International Fixed Income (9/1/93)BofA ML USD High Yield Constrained 1.20% 1.02% 4.93% 5.59% 5.20% 4.44% 3.16% 4.09% 4.48% 5.22%SIMT Real Return (7/6/09)Barclays Capital 1-5 Year U.S. TIPS 0.84% 0.45% 2.00% 2.48% #N/A #N/A #N/A #N/A 2.77% 3.17%SDIT Short-Duration Government (2/17/87)BofA ML 1-3 Year U.S. Treasury 0.74% 0.48% 1.18% 0.76% 1.79% 1.18% 2.97% 2.61% 4.88% 4.99%STET Short Duration Municipal (11/13/03)Barclays Capital 1 Year Municipal Bond 0.85% 0.63% 0.96% 0.96% 1.09% 1.28% 1.98% 2.27% 1.91% 2.17%STET Tax-Advantaged Income (9/4/07)Barclays Capital 60/40 HY Muni and Muni 1.13% 0.86% 7.24% 4.80% 8.98% 8.29% #N/A #N/A 4.94% 4.81%SDIT Ultra Short Duration Bond (9/28/93)Barclays Capital Short UST 9-12 Month 0.74% 0.38% 1.24% 0.27% 2.88% 0.44% 1.87% 2.05% 3.44% 3.43%SIMT U.S. Fixed Income (7/2/09)Barclays Capital U.S. Aggregate Bond 0.86% 0.66% 4.22% 4.37% #N/A #N/A #N/A #N/A 5.38% 4.85%

SEI annualized performance summaryEquity mutual funds – as of 6/30/2014



After Waiver


Equity Mutual Fund (Inception)Benchmark Index

Expense Ratio (%)

Expense Ratio (%)


SIT Emerging Markets Equity (1/17/95)MSCI Emerging Markets 2.06% 1.98% 14.00% 14.31% 7.81% 9.23% 9.60% 11.94% 5.11% 7.20%SIMT Global Managed Volatility (7/27/06)MSCI World 1.29% 1.12% 13.60% 21.64% 11.88% 14.49% #N/A #N/A 3.73% 5.77%SIT International Equity (12/20/89)MSCI EAFE 1.25% 1.25% 21.36% 23.57% 10.86% 11.76% 4.16% 6.93% 3.81% 4.81%SIMT Large Cap (9/30/09)Russell 1000 1.01% 0.89% 24.63% 25.35% #N/A #N/A #N/A #N/A 15.38% 16.64%SIMT Large Cap Growth (12/20/94)Russell 1000 Growth 1.02% 0.89% 24.25% 26.92% 17.73% 19.23% 7.26% 8.19% 8.10% 8.94%SIMT Large Cap Value (10/3/94)Russell 1000 Value 0.97% 0.89% 25.41% 23.81% 18.59% 19.22% 7.36% 8.02% 8.67% 10.29%SIMT Mid Cap (2/16/93)Russell Midcap 1.04% 1.03% 28.34% 26.85% 20.63% 22.06% 9.54% 10.42% 10.46% 11.47%SIMT Real Estate (11/13/03)Wilshire RESI (Float-Adjusted) 1.27% 1.14% 12.89% 13.77% 21.83% 24.05% 8.96% 9.48% 9.47% 10.31%SIMT Small Cap (9/30/09)Russell 2000 1.29% 1.15% 23.40% 23.64% #N/A #N/A #N/A #N/A 15.69% 16.96%SIMT Small Cap Growth (4/20/92)Russell 2000 Growth 1.28% 1.11% 25.28% 24.73% 19.74% 20.48% 6.27% 9.04% 9.56% 7.88%SIMT Small Cap Value (12/20/94)Russell 2000 Value 1.29% 1.15% 21.74% 22.54% 19.48% 19.87% 8.43% 8.23% 11.01% 11.24%SIMT U.S. Managed Volatility (10/28/04)Russell 3000 1.27% 1.00% 22.34% 25.22% 18.69% 19.31% #N/A #N/A 9.07% 8.52%

SEI annualized performance summaryEquity mutual funds – as of 6/30/2014 (continued)

(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.



After Waiver



Expense Ratio (%)

Expense Ratio (%)


SIMT Tax-Managed Large Cap (3/5/98)Russell 1000 1.02% 0.89% 25.32% 25.35% 18.32% 19.24% 7.50% 8.18% 5.17% 6.15%

After Tax Return (1) 25.06% 25.35% 18.14% 19.24% 7.33% 8.18% 4.97% 6.15%

After Tax Return (2) 14.43% 25.35% 14.93% 19.24% 6.10% 8.18% 4.19% 6.15%SIMT Tax-Managed Mgd Volatility (12/20/07)Russell 3000 1.27% 1.00% 21.46% 25.22% 18.26% 19.31% #N/A #N/A 8.80% 7.29%

After Tax Return (1) 19.72% 25.22% 17.47% 19.31% #N/A #N/A 8.18% 7.29%


SEI annualized performance summaryEquity mutual funds – as of 6/30/2014 (continued)

(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.



After Waiver



Expense Ratio (%)

Expense Ratio (%)


SIMT Tax-Managed Small/Mid Cap (10/31/00)Russell 2500 1.29% 1.12% 25.97% 25.58% 20.46% 21.62% 8.04% 9.77% 7.23% 8.97%

After Tax Return (1) 24.33% 25.58% 20.12% 21.62% 7.41% 9.77% 6.77% 8.97%

After Tax Return (2) 15.61% 25.58% 16.72% 21.62% 6.50% 9.77% 5.94% 8.97%STET Tax-Advantaged Income (9/4/07) 1.13% 0.86% 7.24% 4.80% 8.98% 8.29% #N/A #N/A 4.94% 4.81%



SEI annualized performance summaryMulti-asset mutual funds – as of 6/30/2014



After Waiver


Mutual Fund (Inception)Benchmark Index

Expense Ratio (%)

Expense Ratio (%)


SIMT Multi-Strategy Alternative (3/31/10)BofA ML U.S. 3M Treasury Bill 3.36% 1.86% 6.95% 0.05% #N/A #N/A #N/A #N/A 1.65% 0.10%SIMT Multi-Asset Accumulation (4/9/12)Blended Accumulation Benchmark 1.40% 1.20% 16.34% 14.88% #N/A #N/A #N/A #N/A 8.26% 11.43%SIMT Multi-Asset Capital Stability (4/9/12)Blended Capital Stability Benchmark 1.02% 0.62% 3.58% 2.23% #N/A #N/A #N/A #N/A 1.53% 1.77%SIMT Multi-Asset Income (4/9/12)Blended Income Benchmark 1.40% 0.98% 7.60% 10.24% #N/A #N/A #N/A #N/A 9.19% 7.95%SIMT Multi-Asset Inflation Managed (4/9/12)Blended Inflation Benchmark 1.20% 0.93% 4.10% 8.27% #N/A #N/A #N/A #N/A -1.13% 1.51%

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)

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SEI annualized performance summaryMoney market funds – as of 6/30/2014

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. Fee waivers are voluntary and may be discontinued at any time. Source: SEI Datamart.


After Waiver

7-Day Yield

Unsubsidized 7-Day Yield


Money Market Fund (Inception)Benchmark Index

Expense Ratio (%)

Expense Ratio (%)

SEI SEI SEI Benchmark SEI Benchmark SEI Benchmark SEI Benchmark

SLAT Prime Obligation A (1/18/82)iMoneyNet First Tier Institutional 0.76% 0.24% 0.01% -0.26% 0.01% 0.01% 1.57% 1.40% 4.19% 0.00% 0.76% 0.24%SDIT Treasury II (7/28/89)iMoneyNet Treasury Institutional 0.58% 0.08% 0.01% -0.14% 0.01% 0.00% 0.01% 0.00% 1.33% 1.29% 3.12% 1.95%

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.

GoalLink goals-based performance – as of 6/30/2014

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. 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

GoalLink Fund (Inception)QTD Total

ReturnYTD Total

Return

1-Year Total

Return

5-Year Total

Return

5-Year Standard Deviation

Since Inception

Return Annualized

Before Waiver Fee (%)

After Waiver

Fee (%)

Stability-Focused (SF) Defensive Strategy Fund (11/17/03) 1.23% 1.80% 3.17% 2.95% 1.31% 2.47% 0.94% 0.67%Stability-Focused (SF) Conservative Strategy Fund (11/17/03) 1.84% 3.15% 5.82% 6.29% 2.65% 3.58% 1.07% 0.80%Stability-Focused (SF) Moderate Strategy Fund (11/17/03) 2.99% 4.85% 9.04% 9.59% 4.73% 5.10% 1.24% 0.97%

Growth-Focused (GF) Core Market Strategy Fund (11/17/03) 3.70% 5.49% 12.68% 10.53% 7.09% 5.76% 1.37% 1.10%Growth-Focused (GF) Market Growth Strategy Fund (11/17/03) 3.95% 5.59% 14.66% 12.16% 9.78% 5.98% 1.43% 1.16%Growth-Focused (GF) Aggressive Strategy Fund (11/17/03) 4.41% 5.81% 18.78% 14.58% 12.57% 6.68% 1.49% 1.22%

S&P 500 Index 5.23% 7.14% 24.61% 18.82% 13.40% -- -- --U.S. TSY Bill 0.01% 0.02% 0.05% 0.11% 0.03% -- -- --MSCI EAFE 4.09% 4.78% 23.57% 11.76% 17.05% -- -- --

GoalLink tax-managed goals-based performance – as of 6/30/2014

Source: SEI DataMart (monthly returns)

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. 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. Fee waivers are voluntary and may be discontinued at any time.

Tax-Managed GoalLink Models QTD Total

ReturnYTD Total

Return 1-Year Total

Return 5-Year Total

Return 5-Year Standard

Deviation Since Inception

Return Annualized

Stability-Focused TM Defensive Strategy (11/17/03) 1.42% 2.94% 4.86% 5.56% 2.45% 3.94%Stability-Focused TM Conservative Strategy (11/17/03) 2.23% 4.81% 8.07% 9.07% 4.39% 5.58%Stability-Focused TM Moderate Strategy (11/17/03) 2.68% 5.24% 11.76% 10.93% 5.87% 6.22%Growth-Focused TM Core Market Strategy (11/17/03) 2.92% 4.91% 13.41% 10.92% 6.93% 5.98%Growth-Focused TM Market Growth Strategy (11/17/03) 3.35% 5.13% 17.86% 13.79% 10.13% 6.78%Growth-Focused TM Aggressive Strategy (11/17/03) * 3.79% 5.39% 22.40% 16.59% 13.49% 7.71%

* The Before Waiver Fee and After Waiver Fee is 1.38% and 1.12%, respectively

S&P 500 Index 5.23% 7.14% 24.61% 18.82% 13.40% --U.S. TSY Bill 0.01% 0.02% 0.05% 0.11% 0.03% --MSCI EAFE 4.09% 4.78% 23.57% 11.76% 17.05% --

Goals-based performance – as of 6/30/2014Private Client Strategies

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. 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. 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. 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.

QTD Total

ReturnYTD Total

Return 1-Year Total

Return 5-Year Total

Return 5-Year Standard

Deviation Since Inception

Return Annualized

Stability-Focused (SF) Short Term Strategy (12/31/09) 0.68% 0.78% 1.15% #N/A 0.67% 0.97%Stability-Focused (SF) Defensive Strategy (7/31/06) 1.27% 2.03% 3.45% 3.11% 1.33% 2.15%Stability-Focused (SF) Conservative Strategy (7/31/06) 1.82% 3.16% 5.96% 6.23% 2.62% 2.99%Stability-Focused (SF) Moderate Strategy (7/31/06) 2.86% 4.86% 9.42% 9.44% 4.79% 4.66%Growth-Focused (GF) Core Market Strategy (7/31/06) 3.56% 5.47% 12.60% 10.18% 6.94% 5.56%

Growth-Focused (GF) Market Growth Strategy (7/31/06) 3.82% 5.57% 14.97% 11.99% 9.66% 5.88%Growth-Focused (GF) Aggressive Strategy (7/31/06) 4.32% 5.96% 19.28% 14.52% 12.60% 6.56%Growth-Focused (GF) Equity Strategy (12/31/09) 3.77% 4.73% 23.02% #N/A 14.75% 12.68% S&P 500 Index 5.23% 7.14% 24.61% 18.82% 13.40% --U.S. TSY Bill 0.01% 0.02% 0.05% 0.11% 0.03% --MSCI EAFE 4.09% 4.78% 23.57% 11.76% 17.05% --

Tax-managed goals-based performance – as of 6/30/2014Private Client Strategies

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. 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. 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. 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.

.

QTD Total

ReturnYTD Total Return

1-Year Total Return

5-Year Total Return

5-Year Standard Deviation

Since Inception Return

Annualized

Stability-Focused TM Short Term Strategy (12/31/09) 0.34% 0.63% 0.88% #N/A #N/A 0.82%Stability-Focused TM Defensive Strategy (7/31/06) 1.15% 2.41% 3.92% 4.47% 1.98% 3.58%Stability-Focused TM Conservative Strategy (7/31/06) 1.87% 3.88% 7.39% 7.75% 3.63% 5.11%Stability-Focused TM Moderate Strategy (7/31/06) 2.50% 4.87% 10.84% 9.80% 5.26% 5.75%Growth-Focused TM Core Market Strategy (7/31/06) 3.05% 5.35% 13.55% 10.91% 6.97% 6.06%Growth-Focused TM Market Growth Strategy (7/31/06) 3.54% 5.56% 17.73% 13.54% 10.04% 6.83%Growth-Focused TM Aggressive Strategy (7/31/06) 3.95% 5.67% 21.63% 15.94% 13.13% 7.50% Growth-Focused TM Equity Strategy (12/31/09) 3.99% 5.35% 24.00% #N/A #N/A 13.52% S&P 500 Index 5.23% 7.14% 24.61% 18.82% 13.40% --U.S. TSY Bill 0.01% 0.02% 0.05% 0.11% 0.03% --MSCI EAFE 4.09% 4.78% 23.57% 11.76% 17.05% --

Institutional performance – as of 6/30/2014

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. 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. 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. Current performance may be higher or lower. For performance data current to the most recent month end, please call 1-800-DIAL-SEI. Source: SEI Datamart.

.

Strategy QTD Total Return (%) YTD Total Return (%) 1 Year Return (%) 5 Year Annualized

Return (%) 10 Year Annualized

Return (%)

Institutional Fixed Income 2.48% 4.82% 5.70% 8.37% 5.72%

Institutional Moderate Growth & Income 3.05% 4.89% 12.42% 11.54% 6.52%

Institutional Growth & Income 3.32% 4.88% 15.82% 13.04% 6.79%

Institutional Capital Growth 3.60% 4.87% 19.32% 14.44% 6.97%

Institutional Equity 3.87% 4.83% 22.64% 15.68% 7.03%

S&P 500 Index 5.23% 7.14% 24.61% 18.82% 7.10%

Lehman Aggregate Bond Index 2.04% 3.93% 4.37% 4.85% 4.93%

U.S. TSY Bill 1-3 Month 0.01% 0.02% 0.05% 0.11% 1.63%

Index definitions

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

Barclays Capital High Yield Municipal Bond Index is an unmanaged index consisting of noninvestment-grade, unrated or below Ba1 bonds.

Barclays Capital Municipal 3-15 Year Index is an unmanaged index considered representative of the tax-exempt bond market.

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.

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.

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.

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.

Index definitions (cont’d)

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 ACWI ex-US Index 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 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 MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. The MSCI World Index consists of the following 23 developed market country indices: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom, and the United States.

The MSCI World Minimum Volatility Index aims to reflect the performance characteristics of a minimum-variance strategy, focused on providing absolute return and volatility with the lowest absolute risk. It is constructed from the MSCI World Index and the Barra Global Equity risk model and subject to various constituent, country, sector and factor constraints. The Index is unhedged and rebalanced (or re-optimized) semiannually.

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.

Index definitions (cont’d)

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.

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

Glossary

The Sharpe ratio is a measure of risk-adjusted return. It is the difference between the return on an investment (a portfolio, a stock or a benchmark index, for example) and a risk-free interest rate, divided by the investment’s volatility (as measured by standard deviation, or average periodic divergence from the investment’s average return).

Option-adjusted spread is the flat spread, which has to be added to the Treasury yield curve in a pricing model (that accounts for embedded options) to discount a security payment to match its market price. The option being adjusted for is an issuer’s right to prepay the full amount of the security before maturity.

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.

Option-Adjusted Yield Spread : An option-adjusted yield spread (OAS) is a calculation used to help determine price differences between similar products that allow different embedded options.

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.

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. Commodity-related 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.


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.

client investment review 2 nd quarter 2014. agenda › setting goals follow-up from last meeting...

Documents

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msci world index

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