Issue link: https://read.uberflip.com/i/1494892
For institutional Investor use only. Not for public distribution. The information contained herein is confidential and proprietary to SEI and is not to be reproduced or made available in any form to any persons without the express prior written consent of SEI. Cumulative Spending Dollars Deterministic Stress Test* $12.5 $13.3 $13.9 $14.7 $16.5 0 2 4 6 8 10 12 14 16 18 5th Percentile 25th Percentile Median 75th Percentile 95th Percentile Spend ($mm) Current Portfolio $2.6 $5.3 $8.0 $10.8 $13.6 0 2 4 6 8 10 12 14 16 2020 2021 2022 2023 2024 Spend ($mm) Current Portfolio Admin 3.4 Spending 9.1 Admin 3.6 Spending 9.7 Admin 3.8 Spending 10.1 Admin 4.0 Spending 10.7 Admin 4.5 Spending 12.0 Admin 0.7 Spending 1.9 Admin 1.4 Spending 3.9 Admin 2.2 Spending 5.8 Admin 2.9 Spending 7.9 Admin 3.7 Spending 9.9 Observations • Starting value for projection $53.7M as of 3/30/2020 • Spending assumed to be 5.5% (4% Spend, 1.5% Admin) of 3 year rolling of average market value; admin fee is noted separate from spending. • Stochastic stress test shows cumulative spending dollars after 5 years by probability distribution based on changing market and interest rate scenarios . • Deterministic stress test shows impact year by year to spending if 2020 has a -10.9% return followed by annual returns of 7.3% 5-year projections *Assumes downside scenario (5th percentile) return in year 1 followed by median returns. Source: All data based on SEI Capital Market Assumptions. SEI develops forward-looking, long-term capital market assumptions for risk, return and correlations for a variety of global asset classes, interest rates and inflation. These assumptions are created using a combination of historical analysis, current market environment assessment and by applying our own judgment. In certain cases, alpha and tracking error estimates for a particular asset class are also factored into the assumptions. We believe this approach is less biased than using pure historical data, which is often biased by a particular time period or event. Please see the Important Information section at the end of the presentation. For institutional investor use only. Not for public distribution. The expected risk and return assumptions for asset classes in each portfolio are based on long-term assumptions. Stochastic – Year 5 Results*