The SIA Approved List is the result of SIA’s proprietary research process and contains the best managers available among the 26,000+ in the mutual fund universe.
SIA applies a quantitative screening process and then relies on the qualitative decision making process of the Investment Committee to choose the best managers to hire in each segment of a client’s portfolio. Once a manager has earned their place as a part of the SIA approved list they are continuously monitored to ensure the continued success of both the manager as well as the portfolio.
CORE FUNDS: A core fund is broadly diversified and expected to generate performance similar to its benchmarks. For example, index funds may be used as a core holding.
NON-CORE FUNDS: While core funds are expected to perform within a defined range of their market segment, non-core funds are less diversified and correlated to their benchmarks. These funds are added to client portfolios to increase the potential of outperforming a market segment.
GROWTH FUNDS: Stocks in these funds trade at a “relative premium”, meaning that their price-to-earnings ratio (P/E) is higher than the average of those companies in the S&P 500 Index. Due to these high P/Es, funds in this category are generally more volatile than their value peers. These funds invest primarily in the technology, service and healthcare sectors of the market and in companies with greater than average expected earnings growth rates.
VALUE FUNDS: In contrast to their growth counterparts, large cap value funds typically own stocks with P/Es lower than the S&P 500 Index average. These funds focus on companies selling at a discount to their total worth and/or those providing a dividend yield higher than that of the S&P 500 Index. The combined focus on low P/Es and dividends allows these funds to outperform generally in down markets while lagging in roaring ones. Value funds tend to invest primarily in the utility, financial, energy and cyclical sectors.