SEI Institutional Managed Trust U.S. Managed Volatility Fund Class I

Managed volatility strategies are well-positioned as markets face persistent inflation and uncertainty. Disciplined, rules-based approaches that limit downside risk through rigorous fundamental analysis — similar to those emphasized by FNBO's CIO — may outperform in choppy, AI-driven market conditions where diversification and disciplined investing continue to matter.

In environments where AI-driven productivity and strong earnings fuel momentum-led rallies, managed volatility funds may systematically underweight high-performing growth stocks, causing meaningful performance drag. U.S. share indices have already shown underperformance relative to European and Chinese markets, suggesting the strategy may lag in trending markets.

SEI Institutional Managed Trust funds offer a differentiated active management approach backed by institutional-grade infrastructure. With a broad institutional shareholder base including Vanguard, BlackRock, and State Street, the fund benefits from credibility and scale that support its long-term competitive positioning in the managed volatility space.

With a 0.15% expense ratio for related SEI large-cap blend strategies and declining SEIC share prices — down nearly 2% year-over-year — cost-conscious institutional investors may increasingly migrate toward lower-cost passive ETFs like IJH or VTSMX, putting long-term fee pressure on SEI's active managed volatility offerings.

Strong corporate earnings and AI-driven productivity gains are reshaping the U.S. investment landscape in ways that support equity markets broadly. Despite near-term volatility, resilient economic fundamentals — as highlighted by FNBO's Chief Investment Officer — suggest favorable conditions for a U.S.-focused managed volatility strategy over the next year.

U.S. share indices have consolidated and notably underperformed both European and Chinese markets recently, raising concerns about continued domestic equity weakness. For a U.S.-focused managed volatility fund, sustained regional underperformance could limit upside capture and erode relative returns compared to globally diversified alternatives.