SEI announced a new model portfolio lineup Monday, SEI Strategies with Capital Group, which the company said complements its existing core offerings for investor portfolios. The new models are built entirely on exchange-traded funds that combine SEI's strategic approach to asset allocation and portfolio construction with Capital Group's ETFs.

The portfolios, offered in a unified managed account framework, provide flexibility to combine strategies and manage both geographic exposures and tax sensitivity, SEI said. They are:

  • Six SEI Strategies with Capital Group
  • Six SEI U.S. Focused Strategies with Capital Group
  • Six SEI Tax-Managed Strategies with Capital Group
  • Six SEI U.S. Focused Tax-Managed Strategies with Capital Group

Demand for model portfolios continues to grow, with asset managers and third-party strategist model providers reporting a 21.4% asset growth rate in 2023, SEI said, citing Cerulli research.

The 12 new tax-managed models are designed to feature ETFs' tax efficiency benefits, exposure to municipal bond ETFs for tax-free income and systematic and opportunistic tax-loss harvesting.

"The SEI Strategies with Capital Group combine the synergy of SEI's rigorous and disciplined investment approach with the Capital System, Capital Group's multi-manager approach to investing, to provide a diverse range of portfolio building blocks. Together, we leverage our shared tenured investment experience, market leadership and innovative spirit to help investors reach their goals," Erich Holland, client experience head for SEI's advisor business, said, noting that personal taxes are the highest expense for households with income over $200,000.

Peter Thatch, Capital Group strategic relationship group head, said the partnership "will help to meet the needs of financial professionals who are increasingly focusing on the broader wealth needs of their clients and using these types of efficient asset allocation tools in the active ETF form."

SEI, which teamed with Capital Group on previously introduced model portfolios, works with corporations, financial institutions and professionals, and ultra-high-net-worth families to help drive growth, and managed, advised or administered $1.6 trillion in assets as of Dec. 31.

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