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Advisor Tool Kit What Has History Shown Us Since World War II, the S&P 500 has experienced a minimum 15% decline 13 times The shortest bottom to peak.

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Presentation on theme: "Advisor Tool Kit What Has History Shown Us Since World War II, the S&P 500 has experienced a minimum 15% decline 13 times The shortest bottom to peak."— Presentation transcript:

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2 Advisor Tool Kit

3 What Has History Shown Us Since World War II, the S&P 500 has experienced a minimum 15% decline 13 times The shortest bottom to peak cycle: Less than 3 months The longest bottom to peak cycle: Nearly 6 years, with a full fledged bear market in between Average bottom to peak cycle: Almost 19 months 75% of the market recovery generally occurs within the first 7 months. Bear Markets Since World War II

4 What Are the Markets Doing Now? The S&P 500 fell 28% from its high in March 2000 to its recent low in April. Since April 2001, the S&P 500 has recovered nearly one-third of its losses. Despite its recent rebound, the S&P 500 is still down nearly 20% from its March 2000 high. While the Nasdaq has bounced back from its bottom, it is still off nearly 60% from its peaks. S&P 500 Nasdaq January 2000 – June 2001 Index: 1/1/00 = 100

5 The Road to Recovery Stock market recoveries are rarely a straight line Recoveries typically include down months, even down quarters: 19741974: The S&P posted two periods of significant declines when emerging from the Oil Crisis 19981998: The S&P stumbled several times before eclipsing 1300 for the first time in history. The markets have rewarded patience. The market has recovered from each downturn to reach new heights. The Rugged Rise to Recovery Down 10% Down 4% Down 14% Down 7% Date Index

6 Remember Our Process Planning Process Custom Portfolio Manager Selection Rebalancing Reallocation Monitoring & Reporting Establishes Goals Sets Risk Limits Sets Long Term Target Sets Short Term Limits Tax Management Low Cost Vehicle Specialist Managers Maintains Objectives A Scientific Approach to Disciplined Investing Keeps You Informed and On Track

7 The Benefits of Our Process 1.Asset Allocation and A Disciplined Approach Works 2.SEI continues to supervise manager selection and replacement 2.SEI portfolios strive to keep internal expenses low

8 Why You Should “Stay the Course” 1.I am personally committed to making sure each of my clients makes it through these turbulent times and I still am! 2.Our planning process and investment philosophy remain sound and I am confident that if we stick to our original plan we can still achieve your long-term goals. Overall, the picture has improved significantly. 3.Staying fully invested may keep you positioned for a market rebound, which we may have just seen happen. 4.This decline like every other will pass with time. Selling while your portfolio is down only locks in your current losses. This is still absolutely true!

9 Disclosures 1.These slides have been furnished by SEI Investments Distribution Co., which acts as distributor for the SEI Family of Funds. These slides are not intended to be an offer to sell or a solicitation of an offer to buy shares of any of the other funds or fund families described herein. 2.For those SEI Funds which employ the “manager of manager” structure, SEI Investments Management Corporation has ultimate responsibility for the investment performance of the Fund due to its responsibility to oversee the sub-advisors recommend their hiring, termination and replacement. 3.Mutual Fund shares are not insured by the FDIC or any other agency, and are not guaranteed by any financial institution, are not obligations of any financial institution, and involve risks, including possible loss of principal. 4.In addition to the normal risks associated with equity investing, international investing may involve risk of capital loss from unfavorable fluctuations in currency values, from differences in generally accepted accounting principals or from economic or political instability in other nations. 5.Past performance is no guarantee of future results. 6.Investments in high yield bonds can experience higher volatility and increased credit risk when compared to other fixed income instruments. 7.This presentation must be preceded or accompanied by a current prospectus for the SEI funds. Investors should read the prospectus carefully before investing or sending money.


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