SEI Insti Inv Tr, High Yield Bond Fund Cl A (SGYAX)

Overview

This fund is a financial instrument specifically designed for investors seeking higher returns from their investments through exposure to high-yield fixed income securities. By allocating at least 80% of its net assets, along with any borrowed funds, towards high-yield fixed income securities, the fund primarily focuses on investments that are rated below investment grade. This includes a broad range of securities, such as corporate bonds, debentures, convertible and preferred securities, zero coupon obligations, and various tranches of collateralized debt obligations (CDOs) and collateralized loan obligations (CLOs). The fund adopts a multi-manager approach, delegating the management of its portfolio to a number of Sub-Advisers who operate under different investment philosophies. This diversification in management styles is aimed at optimizing the fund’s performance, overseen by the general supervision of SIMC.

Products and Services

• High Yield Fixed Income Securities

  Investments primarily in securities rated below investment grade, offering a higher return potential compared to investment-grade securities. This includes corporate bonds and debentures that are issued by companies with higher credit risk.

• Convertible and Preferred Securities

  Investments in convertible securities that can be converted into a predetermined amount of the company's equity at certain times during its life, usually at the discretion of the holder. Preferred securities, on the other hand, offer fixed dividends and have priority over common stock in the event of a liquidation.

• Zero Coupon Obligations

  Investments in zero coupon bonds which are sold at a discount and mature at face value, with the difference between the purchase price and maturity value representing the investor's return. These bonds do not make periodic interest payments.

• Tranches of Collateralized Debt Obligations (CDOs) and Collateralized Loan Obligations (CLOs)

  Investments in different tranches or segments of CDOs and CLOs, which are structured financing vehicles that pool together cash flow-generating assets and repurpose them into diversified streams of income for investors. These instruments are known for their higher yield and risk compared to traditional investment vehicles.

• Multi-manager Approach

  The fund’s strategy of employing a multi-manager approach involves engaging several Sub-Advisers with different investment philosophies to manage segments of the portfolio. This approach aims at diversifying investment risks and capitalizing on the unique strategies and insights of different managers, all under the supervision of SIMC.