Finance and Business Strategy

Peer Review Spotlight: SEI

June 5, 2019 8:56 pm

How do you help healthcare organizations navigate the biggest challenges in health care?

SEI is the largest Outsourced Chief Investment Officer (OCIO) for healthcare organizations, with 46 healthcare clients, representing $14.4 billion in assets under management as of 12/31/18. Our comprehensive investment management solution helps healthcare executives manage the often volatile financial profile of their organization due to their high level of exposure to the capital markets. It’s important to evaluate portfolios based not only on traditional comparisons to a predetermined benchmark or peer group, but also on the impact the portfolio has on important financial and credit metrics. Those metrics include days cash on hand, unrestricted cash/debt, debt to capitalization, and debt service coverage.

Our recommendations are broader than an “asset-only” approach. We help clients holistically identify risks across their various asset pools. We then model their impact and design an asset allocation for each portfolio maintained by the organization. We work closely with clients in reviewing, and revising their portfolios through this framework.

What advice would you offer to healthcare leaders when choosing among vendors?

Unlike a traditional consulting approach in which management and/or an investment committee selects, monitors and changes managers, our professionals take responsibility for these functions. This allows our clients to have additional time and resources to focus on strategy development, governance and operations.

As investment outsourcing becomes more widespread, healthcare leaders will evaluate a range of providers claiming to offer “OCIO services.” We feel our offering is distinguishable through the following factors:

  • We have an established heritage of providing OCIO services as a designated fiduciary partner, with more than 25 years of experience providing our solution to Institutional Investors.
  • We are well-resourced with more than 330 professionals committed to providing OCIO services.
  • The scale and scope of our OCIO business allows for versatility and customization at the strategy, manager, and portfolio level. We source leading managers for the benefit of our clients, often at a lower cost than other providers due to $307 billion in aggregated assets under management.

In addition to these benefits, we believe that through the provision of our OCIO model, our clients experience faster decision-making, additional expertise in complex scenarios, improved risk management, improved strategy in seeking to meet goals, and better reporting on progress against goals.

What is some advice you can give providers for a successful implementation of a new product or service?

At the onset of the relationship, having an introductory meeting to discuss specific goals and objectives is critical. This also allows clients to establish rapport with the key professional responsible for the management of their account. We then establish an asset allocation designed to meet our client’s objectives. We typically meet with clients quarterly to review their portfolios, and we have regular contact with leadership and staff to ensure the client experience meets expectations.

Quick Facts

Satisfies Industry Need

The service satisfies a need in the healthcare industry.

  • Strongly Agree: 90%
  • Agree : 10%
  • Indifferent:0%
  • Disagree: 0%
  • Strongly Disagree: 0%
  • NA: 0%

Mean Score = 4.90

About SEI

SEI’s Institutional Group is one of the first and largest global providers of outsourced investment management services. The company delivers integrated retirement, healthcare and nonprofit solutions to more than 480 clients in 12 countries, as of Dec. 31, 2018. Our solutions are designed to help clients meet financial objectives, reduce business risk and fulfill their due diligence requirements through implemented strategies for the management of defined benefit plans, defined contribution plans, endowments, foundations and board-designated funds.


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