SEI plans Dynamic Asset Allocation, Long Duration Corporate Bond funds

By Toni Weeks

San Diego, Feb. 9 - SEI Institutional Investments Trust announced it is planning the launch of two funds, the Dynamic Asset Allocation Fund and the Long Duration Corporate Bond Fund.

Both funds will launch with class A shares.

The Dynamic Asset Allocation Fund will seek long-term total return using a risk-controlled process to capture returns from short- and intermediate-term market anomalies that may arise in a subset of possible asset classes. The fund may provide exposure to the different asset classes by investing directly in equity and fixed-income securities and other instruments or indirectly though the use of pooled investment vehicles and derivative instruments, primarily futures, contracts, forward contracts, options and swaps.

The fund will adopt the multi-manager approach of using multiple subadvisers. The portfolio managers will be James Smigiel of SEI Investments Management Corp., the fund's Oaks, Pa.-based investment adviser; Ken Ferguson and Dori Levanoni of First Quadrant LP; and Katinka Domotorffy, William Fallon, Ron Hua, Steve Jeneste and Sudarshan Gururaj of Goldman Sachs Asset Management, LP.

The shares will trade under the symbol "SDLAX."

Management fees will be 0.6%. Other fees and expenses have not been determined yet.

The Long Duration Corporate Fund will seek to return characteristics similar to those of high-quality corporate bonds. Under normal conditions, it will invest at least 80% of its net assets, plus any borrowings for investment purposes, in long-duration fixed-income securities, exchange-traded funds that track long-duration corporate bond indexes as well as synthetic instruments or derivatives having economic characteristics similar to long-duration corporate fixed-income securities. The fund will invest primarily in U.S. and foreign investment-grade fixed-income instruments or bonds and unrated fixed-income securities of equivalent quality. It may also invest in municipal bonds, ETFs, futures contracts and swaps, among others. The fund is expected to maintain an effective average duration of between nine and 16 years.

The filing noted that neither the ticker symbol nor the fees and expenses have been announced.

The fund will also use several subadvisers. The subadvisers and portfolio management team have not yet been selected. SEI Investments Management will be the investment adviser.

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