Investments

SEI to provide outsourcing services for new Cornerstone mutual fund family

SEI has been selected by Cornerstone Advisors to launch a series of multi-manager mutual funds through the company's Advisors' Inner Circle Fund (AIC) series trust offering.

SEI has been selected by Cornerstone Advisors to launch a series of multi-manager mutual funds through the company's Advisors' Inner Circle Fund (AIC) series trust offering.

SEI believes this type of mutual fund offering may be reflective of a movement by investment advisers away from the use of third-party mutual funds and towards launching their own funds using multiple sub-advisers to execute their strategies.

The manager-of-managers approach allows Cornerstone to offer its strategies in a manner that provides both access and economies-of-scale to clients.

"This structure benefits our investors, increases operational efficiency, and enriches implementation in addition to enabling us to carry out the investment strategies we have developed since our founding in 1984," says Kenneth Hart, chief executive of Cornerstone. "Once we decided to move to a series trust, the decision to partner with SEI seemed ideal. Their track record in implementing multi-manager funds, and their impressive client base, resources, and board experience instilled a great deal of confidence. Ultimately, our partnership with SEI lets us focus our attention on portfolio management and client service."

SEI has offered a mutual fund series trust solution to managers for more than 20 years, and with more than USD22bn in assets under management, is one of the leading turnkey mutual fund platforms in the industry. Cornerstone pointed to SEI's proven track record of converting fund managers to a series trust model and its history of supporting manager-of-managers mutual funds as key factors in the decision.

"As we've seen with many institutional managers, Cornerstone was looking for a more efficient way of delivering their proven strategies without changing the core of what makes those strategies successful," says John Alshefski, senior vice president, SEI's investment manager services division. "Our AIC solution allows them to keep their strategies consistent while providing them with an infrastructure that supports greater flexibility and efficiency, and gets them to market quickly. We're proud to help Cornerstone in their endeavor to meet the goals of their investors and the growth goals of their business."

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