SEI Institutional Managed Trust U.S. Managed Volatility Fund Class Y (SUSYX)

Overview

The described fund is structured to primarily engage in the realm of high yield fixed income securities. With a strategic focus on allocating at least 80% of its net assets, in addition to any borrowed finances earmarked for investment endeavors, the fund targets investment opportunities that promise higher returns albeit at a higher risk. The investment portfolio is largely comprised of fixed income securities that do not meet the investment-grade standards, commonly referred to as junk bonds. These include a wide range of financial instruments that are not favored by conventional investors due to their lower credit ratings but offer substantial yield potential for those willing to absorb additional risk.

Products and Services

The fund offers an array of investment products and services catered to investors seeking high yield returns through exposure to below investment-grade fixed income securities:

• Corporate Bonds and Debentures - These are debt securities issued by corporations aiming to raise capital to fund operations, expansion, or other initiatives. Despite their lower credit ratings, these bonds and debentures offer higher interest rates compared to investment-grade securities, compensating for the increased risk of default.
• Convertible and Preferred Securities - This category includes convertible bonds and preferred stocks that offer the potential for conversion into a predetermined number of common shares, usually at the discretion of the bondholder. These hybrid securities provide fixed-income yields along with the possibility of capital appreciation, capturing the interest of investors looking for growth and income.
• Zero Coupon Obligations - Zero coupon bonds are sold at a significant discount to their face value and don’t pay periodic interest. The investor’s return at maturity is the difference between the purchase price and the nominal value of the bond. These instruments appeal to investors seeking a predictable return without the need for regular income payments.
• Tranches of Collateralized Debt Obligations (CDOs) and Collateralized Loan Obligations (CLOs) - These structured financial products pool various debt obligations including loans and bonds, and segment them into tranches with different risk levels, interest rates, and repayment priorities. Investors in these tranches receive income streams from the underlying assets, tailored to their risk appetite and investment goals. CDOs and CLOs offer diversified exposure to credit risk and the opportunity for higher returns compared to individual securities.