TORONTO, July 10, 2017 /CNW/ — SEI Investments Canada Company (SEI Canada), a wholly-owned subsidiary of SEI (NASDAQ: SEIC), today announced the lowering of the management fees on Class F Units of a selection of SEI Canada Funds, as well as changes to some embedded fee purchase options for certain other classes, in an effort to keep its solutions competitively priced and relevant in today’s regulatory environment. SEI Canada also today announced changes to the risk ratings of certain SEI Canada Funds.
“SEI Canada has been leading the way with managed, fee-based investing since 1994, and our unit class changes represent the next phase of our evolution as we continue to support fee transparency,” said Andy Mitchell, Managing Director of SEI Canada. “In the face of unfolding regulatory changes, we continue to provide our head office and advisor partners options to offer their clients comprehensive portfolio solutions with competitive all-in fees.”
MANAGEMENT FEE REDUCTIONS FOR CLASS F UNITS
Effective July 1, 2017, Class F and F(H) management fees for certain SEI Canada Funds will have been reduced. No action is required by unitholders to benefit from the reduced management fees. These management fee reductions are detailed in the table below.
Note: SEI Canada’s Class F units make use of a target management expense ratio (“MER“) that is equal to the maximum annual management fee. SEI Canada intends to waive and/or absorb operating expenses in order to maintain the target MER. This practice may be changed or discontinued at any time and without notice at SEI Canada’s discretion. Please see the Fund’s Management Report of Fund Performance for more information.
P & D CLASS UNITS ARE BEING PHASED OUT
Phase One – On or about Sept. 15, 2017, SEI Canada will “soft cap” all Class P, P(H), D, and D(H) units of all SEI Canada Funds. The soft cap means that these classes of units will not be available for purchase by new investors, while existing unitholders of Class P, P(H), D and D(H) Class units will be able to purchase additional units of the same classes they hold until on or about Nov. 30, 2017.
Phase Two – On or about Nov. 30, 2017, SEI Canada will “hard cap” all Class P, P(H), D, and D(H) units of all SEI Canada Funds. The hard cap means that these units will no longer be available for purchase by any investors. On or about Dec. 6, 2017, all issued and outstanding Class P and D units of each SEI Canada Fund will be automatically reclassified as Class E units and all issued and outstanding Class P(H) and D(H) units of each Fund will be automatically reclassified as Class E(H) units.
At any time prior to the reclassification date on or about Dec. 6, 2017, unitholders will be able to (i) redeem such Units in the ordinary course; (ii) switch such Units for Units of a different class, as further described in “Purchases, Switches and Redemptions” in the SEI Canada Funds’ Simplified Prospectus.
E CLASS MINIMUMS WILL BE REDUCED
On or about Sept. 15, 2017, the minimum initial investment for E Class units of all SEI Canada Funds will be reduced to $5,000.
On or about Nov. 30, 2017, the minimum initial investment for E Class units of all SEI Canada Funds will be further reduced to $1,000.
THE RISK RATING METHODOLOGY IS CHANGING
In anticipation of new risk rating methodology changes mandated by the Canadian Securities Administrators that will be effective Sept. 1, 2017, SEI Canada has revised the methodology used to determine the investment risk level of each of the Funds for purposes of disclosure in the Fund Facts and the Funds’ Simplified Prospectus. Risk ratings have been determined separately for each class of units of a Fund and are disclosed in the Fund Facts. The investment risk level of a Fund is reviewed at least annually and whenever there is a material change to a Fund. These changes are not the result of any changes to the investment objectives, strategies or management of the Funds.
The methodology used is the historical volatility risk as measured by the standard deviation of Fund performance. The risk rating categories are as follows:
More methodology information can be found in the Funds’ Simplified Prospectus.
As a result of employing the revised methodology and conducting the regular annual review, there are changes to the risk ratings for certain Funds now disclosed in the Fund Facts and the Funds’ Simplified Prospectus dated June 29, 2017. There have been no changes to the investment objectives or strategies of any of the Funds. See the tables below for details of risk rating changes.
Fund classes with risk ratings going higher:
Fund classes with risk ratings going lower:
About SEI Canada
SEI founded its Canadian business in 1983, pioneering innovative asset management techniques for institutional investors. Today, SEI Canada offers integrated investment management and strategic advice solutions to help institutional investors achieve their organizational goals and fulfil fiduciary responsibilities. Capitalizing on its investment expertise, SEI Canada began offering investment solutions to retail investors through investment advisors in 1994. The investment approach provides multi-manager, globally diversified strategies with an appropriate home-country bias for Canadian retail investors. SEI Canada’s Goals-Based strategies, Strategic Asset Allocation strategies and Asset Class Funds are available through select dealer relationships. For more information, visit seic.com/enCA.
SEI (NASDAQ: SEIC) is a leading global provider of investment processing, investment management and investment operations solutions that help corporations, financial institutions, financial advisors and ultra-high-net-worth families create and manage wealth. As of March 31, 2017, through its subsidiaries and partnerships in which the company has a significant interest, SEI manages, advises or administers US$779 billion in hedge, private equity, mutual fund and pooled or separately managed assets, including US$297 billion in assets under management and US$478 billion in client assets under administration. For more information, visit seic.com.
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