Content-Light Presentation (Best for Projection)

Integrated Asset Management Solutions Update

Presented by Chris Gibbons, SEIMichele Mast, SEI

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Agenda

• SEI’s Asset Management Philosophy & Investment Programs

• Integrated Managed Accounts Program (IMAP®)– Overview– Current Status– Planned Enhancements

• Private Client Models– Overview– Current Status

• Distribution Focused Strategies– Overview– Current Status

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SEI’s Global Wealth Services

Advice

ClientManagement

Processing

BusinessManagement

AssetManagement

ClientAcquisition

InfrastructureManagement

WealthService

Firm

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Investment Philosophy

“Enabling clients to achieve their life and business objectives”

SEI Investment PhilosophySEI Investment Philosophy

• Asset Allocation: Client-Driven Portfolio Design

• Actively Managed Investment Strategies

• Continuous Performance Measurement

• Continuous Risk Management

• Manager of Manager Model

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An Expanding Definition of Investor Risks and Goals

Traditional View of Market Risks and Goals

Client's View of Risks and Goals

Objective • Seek performance in line with the markets

• Protect against loss• Generate income• Growth

Risk Measure • Standard deviation and volatility

• Risk Relative to benchmark (tracking error)

• Risk of loss• Risk of not meeting goal

Return Measure

• Annualized return• Cumulative return

• Reaching target value for goal

• Absolute return• Stable return stream• Stable cash flow

Reference Point

• Return relative to benchmark (excess returns)

• “High water mark”• Goal attainment

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Our Philosophy and Investment Programs Offer Your Clients:

• Focus on their goals

• Asset allocation aligned with risk and return objectives

• Risk managed through asset class structure

• Return enhancement through specialist fundamental and quantitative active management

• Access to premier investment techniques, asset classes and managers

• Continuous and dynamic monitoring

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Investment Evolution

Traditional Models

Distribution Focused

Strategies

Investment Offering Sophistication

Mar

ket E

volu

tion

Model of Models Portfolio

Private Client Models

Goals BasedAsset Allocation

Portfolios

IMAP/Fixed Income

Accounts

Individual Money

Management

Benchmark Driven Asset Allocation

Portfolios

Style SpecificBuilding Blocks

Manager of Manager

Funds

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SEI continuously evaluates the marketplace to identify trends and opportunities to deliver increased value to our clients, and we undertake a concurrent and iterative

process to achieve the best solutions.

• Propose: Identify and evaluate needs

• Define: Gather business requirements

• Design: Create master plan; and complete functional and technical designs

• Build: Execution of the master plan

• Test: Conduct internal and client (beta) testing

• Launch: Introduce solution into the market

• Support: Enhancements/Operational Efficiency

• Assessment: Ongoing evaluation

DEFINE

DESIGN

BUILD

LAUNCH

SUPPORT

ASSESSMENT

PROPOSEFinancial Ju

stification/

Revenue Model

Validation

TEST

Risk Analysis

CONCURRENT AND

ITERATIVE

IMAP: Life Cycle Management

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Integrated Managed Account Program (IMAP)

• Enhanced IMAP is SEI’s latest evolution of our Managed Account solution:

– Equity manager securities are integrated into one unified account

– IMAP is now integrated onto a bank’s TRUST 3000® processing platform

– Allows for an enhanced tax management investment approach for bank end investors

– Bank advisors have increased flexibility in end investor portfolio construction

– Overlay manager provides enhanced coordination across an end investor’s equity portfolio

– Available as Standard Solution (Equity & Fixed Income Management), Equity Only Solution, or a Fixed Income Management Only Solution

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• Current status of IMAP solution:– Currently in live Production environment for 3 Private Banking

clients

– Currently in the Implementation stage for 3 Private Banking clients

– Currently in the Active Discussion stage with 16 Private Banking clients

– Current IMAP Assets Under Management at SEI:– $3.8 billion in SEI’s IMAP solution– $150 million in Integrated Private Banking IMAP solution

– IMAP Asset Commitments (Private Banking):– $185 million over the next 18 months

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• Planned enhancements for Private Bank IMAP solution:

– Enable banks to include their chosen equity managers in Overlay

– Utilization of the new Proposal Tool for IMAP accounts

– Enhancements to the Manager Communication Website

– Continued due diligence by SEI towards further simplification of the IMAP account structure

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• Support: Enhancements/Operational Efficiency/Breakage


DEFINE

DESIGN

BUILD

LAUNCH

SUPPORT

ASSESSMENT

PROPOSEFinancial Ju

stification/

Revenue Model

Validation

TEST

Risk Analysis

CONCURRENT AND

ITERATIVE

Private Client Models: Life Cycle Management

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Private Client (PC) Models

• Like IMAP they incorporate the same behavioral finance research used to build our Goals Based Philosophy

• They use the SEI Manager of Manager funds as building blocks

• The models take a long term strategic outlook on asset classes

• The key difference from the traditional models is the ability to incorporate new SEI investment products in the portfolios (i.e. Enhanced Income, Tax-Advantaged Income)

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Matching Goals with Risks

MarketFocused

Growth Focused

Stability Focused

Draw Down Risk

Relative Risk

Upside Capture

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Private Client (PC) Models

• Portfolio Realignment must be set up on your master to utilize SEI Models

• Automation can be put in place to integrate directly with the IMU for updates

• Are set up and available for immediate use on shared ID’s • For information on how to set up the SEI Models please

contact your relationship team• Marketing material will be printed and also available on

http://www.BankAdvisor.seic.com

http://www.bankadvisor.seic.com/

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• Support: Enhancements/Operational Efficiency/Breakage


DEFINE

DESIGN

BUILD

LAUNCH

SUPPORT

ASSESSMENT

PROPOSEFinancial Ju

stification/

Revenue Model

Validation

TEST

Risk Analysis

CONCURRENT AND

ITERATIVE

Distribution-Focused Strategies: Life Cycle Management

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Distribution-Focused Strategies (DFS)

• Based on the same behavioral finance research as our other Goals Based products

• DFS is designed to address the impending needs of the wave of retiring Baby Boomers

• Provides a regular cash stream to provide for their life style

• Utilizes the SEI Private Client Models as building blocks• Offers more flexibility than annuities and other retirement

solutions• Provides several options to cater to a wide variety of

needs

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Number of Baby Boomers in Retirement

010,00020,00030,00040,00050,00060,00070,00080,000

2010 2015 2020 2025 2030 2035 2040

Sources: U.S. Census Bureau, Cerulli Associates

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Distribution-Focused Strategies

• Being utilized by our Advisor market as of end of 4th

quarter of 2007 and processed on TRUST 3000®

• Actively working with three beta clients in the Private Banking market

• Requires installation of interfaces and set up of several jobs, a longer installation period than models

• Will be available for use in the 3rd quarter of 2008 for Private Banking clients

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Evolution of Our Solution: Built on a Strong Foundation

Asset Management

Processing Services

‘Base’ of Today’sLeading Solutions

GWS ~ Asset ManagementAsset

Management Led Global Wealth

Services

Global Wealth ServicesFully Integrated Solution

Questions

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DisclosuresNeither 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.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. SEI Investments Management Corporation acts as investment advisor for SEI Fixed Income Management.There are risks involved with investing, including loss of principal.For those portfolios of individually managed securities, SEI Investments Management Corporation makes recommendations as to which manger will manage each asset class. SEI may recommend the termination or replacement of a money manger and the investor has the option to move the account assets to another custodian or to change the manager as recommended.For a complete description of all fees and expenses for separately managed accounts, please refer to SEI Investments Management Corporation’s ADV Part II.For those SEI funds which employ the ‘manager of manager’ structure, SEI Investments Management Corporation has the ultimate responsibility for the investment performance of the fund due to its responsibility to oversee the sub-advisers and recommend their hiring, termination and replacement.FOR FINANCIAL INTERMEDIARY USE ONLY. NOT FOR PUBLIC DISTRIBUTION.

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Chris Gibbons

Chris is responsible for providing Asset Management solutions for the PB&T business unit of SEI Investments. Chris’s primary responsibilities the past 2 years have been the development and implementation of SEI’s Integrated Managed Account Program and Fixed Income Management products to the PB&T client base. During the past 14 years at SEI, Chris has held various leadership positions in the company including Trust Company Operations Manager, Institutional Account Manager, Service Director of the Managed Account Sponsor Program, and Director of the SMA Outsourcing Operations Team. Prior to joining SEI, Chris was a Trust Officer with both CoreStates and Mellon banks in Philadelphia. Chris received his Bachelor of Sciences Degree in Accounting from Drexel University.

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Michele MastMs. Mast is currently responsible for asset management product deployment in the US Private Banking market. The products she is currently working on include Distribution Focused Strategies, SEI’s asset allocation models, and a proposal generator. Other areas of product oversight include liquidity and alternative investment product offerings around the world. Ms. Mast has worked with many different products here at SEI including cash & portfolio accounting, tax and the commercial CashSweep product. Ms. Mast joined SEI thirteen years ago and has functioned in several roles at SEI including: relationship management; designing and implementing service models; technical design and implementation; quality assurance; product development; website modeling, design, and launch; project management; and product management. Prior to joining SEI, Ms. Mast worked for the Pennsylvania State University for six years, lastly as a Program Administrator. She holds a B.S. in Computer Sciences from the Pennsylvania State University, a post graduate certificate in Financial Technology from Villanova, maintains Series 6 and 63 licenses, and holds the Certified Treasury Professional (CTP) designation.

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