SEI Global Quick Poll: U.S. Pension Plans Willing to Trade Higher Returns for Less Volatility

Credit Crisis, Turbulent Market Make Risk Avoidance, Predictability Top Priorities

OAKS, Pa., June 3 /PRNewswire-FirstCall/ -- An SEI (Nasdaq: SEIC) Global Quick Poll released today reveals that risk avoidance and volatility are the top priorities for plan sponsors in the wake of the credit crisis and the ongoing turbulence in the capital markets. In fact nearly two thirds (62 percent) of those polled said decreasing volatility in their investment portfolios while maintaining current returns was a higher priority than increasing returns while maintaining current volatility. That feeling was most prevalent in larger U.S. plans (those with over $1 billion in assets), as 76 percent of those participants polled said their organization would not be willing to take on more active risk in an effort to increase returns.

The poll was conducted at two different times -- June 2007 and April 2008 -- to illustrate how vastly changed market conditions influence attitudes. The overall results, and specifically the desire to decrease volatility, point to the ongoing funding challenge facing many plan sponsors. Slightly more than two-thirds of those polled said their plan was above the requisite 90 percent funding level -- a significant drop from the more than three quarters who were above the 90 percent funded level when polled last year.

"The headache of identifying and subsequently managing risks continues to grow for pension plan sponsors," said Jon Waite, Chief Actuary for SEI's Institutional Group. "The poll provides a clear indicator that attitudes can change quickly with market conditions. The specific risks might vary from one organization to another, but the simple fact is that financial executives are tiring of dealing with uncertainty when it comes to controlling these risks."

The funding challenges have been exacerbated by governance issues as more than half (53 percent) of those polled say monitoring the risk of plan investments has increased in complexity (up from 41 percent last year) and just under half (45 percent) say ensuring compliance with pension related laws has become more challenging. That has placed additional pressure on investment committees and executive management as more than 80 percent of those polled (up from just over half last year) say the responsibility of monitoring governance risk falls on these internal functions.

The poll, administered by SEI's Pension Management Research Panel, was completed by 305 executives overseeing pensions ranging from $30 million to over $5 billion in assets. The executives represented five countries -- Canada, Hong Kong, Netherlands, United Kingdom and United States. None of the companies surveyed were SEI institutional clients. A complete summary of the poll is available by emailing seiresearch@seic.com.

About SEI's Institutional Group

SEI's Institutional Group delivers integrated retirement, healthcare and nonprofit solutions to over 500 clients in seven different countries. SEI enables clients to 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. For more information, visit http://www.seic.com/institutions.

About SEI

SEI (Nasdaq: SEIC) is a leading global provider of outsourced asset management, investment processing and investment operations solutions. The company's innovative solutions help corporations, financial institutions, financial advisors, and affluent families create and manage wealth. As of March 31, 2008, through its subsidiaries and partnerships in which the company has a significant interest, SEI administers $424 billion in mutual fund and pooled assets and manages $185 billion in assets. SEI serves clients, conducts or is registered to conduct business and/or operations from more than 20 offices in over a dozen countries. For more information, visit http://www.seic.com.

    Contact:
    Frank Wilkinson                Elisabeth Behr
    SEI                            Braithwaite Communications
    610-676-1483                   215-564-3200 x 113
    fwilkinson@seic.com            ebehr@braithwaitepr.com

SOURCE SEI

Released June 3, 2008