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SEI Releases White Paper on Spending Best Practices for Nonprofit Organizations

SEI Releases White Paper on Spending Best Practices for Nonprofit Organizations 
White Paper Showcases Spending and Investment Strategies for
Foundations and Endowments 
OAKS, PA -- (Marketwired) -- 06/26/13 --  SEI (NASDAQ: SEIC) today
released a white paper on the current spending landscape and best
practices for nonprofit foundations and endowments. As part of the
research for the paper, 260 U.S. nonprofits participated in a quick
poll to determine the current spending and hurdle rates being used by
the industry. The poll found that the majority (79 percent) of
nonprofit organizations use a moving average formula and an average
spending rate of 4.8 percent. Participants reported an average
long-term portfolio return objective or hurdle rate of 6.95 percent. 
"An increasing number of conversations at nonprofit organizations are
focused on finding the right level of spending in the face of lower
expected returns and higher demands for the use of endowment assets,"
said Mary Jane Bobyock, Director of Nonprofit Advice, SEI's
Institutional Group. "Since spending drives hurdle rates and hurdle
rates drive strategic asset allocation decisions, it's no wonder that
an effective spending strategy is a top priority for investment
committees that have a fiduciary responsibility to safeguard these
assets." 
The white paper highlights several case studies of best practices,
which nonprofits can apply to help guide them in building an
effective spending strategy. The paper suggests that one way to be
sure a nonprofit organization has chosen the best spending
methodology moving forward is to map out past performance and
spending to see where shortfalls might have occurred. Another example
shows how different spending calculations can be applied to determine
potential shortfalls in selecting the best methodology for current
and future years. And a third analysis demonstrates the value of
shocking different spending scenarios with an extreme drop in markets
to estimate what the spending results might be and the potential
impact on the long-term health of the portfolio.  
"Spending varies significantly from organization to organization,
from year-to-year, and by different methods, so it's imperative to
partner with your investment provider to integrate your specific
needs as you build your portfolio and monitor its progress on a
regular basis," Mary Jane said.  
To request a copy of the white paper, please e-mail:
SEIResearch@seic.com.  
About SEI's Institutional Group
 SEI's Institutional Group is the
first and largest global provider of outsourced fiduciary management
investment services. The company began offering these services in
1992 and today acts as a fiduciary manager to approximately 450
retirement, nonprofit and healthcare clients in seven different
countries. Through a flexible model designed to help our clients
achieve financial goals, we provide asset allocation advice and
modeling, investment management, risk monitoring and stress testing,
active liability-focused investing and integrated goals-based
reporting. For more information visit:
http://www.seic.com/institutions. 
About SEI 
 SEI (NASDAQ: SEIC) is a leading global provider of
investment processing, fund processing, and investment management
business outsourcing solutions that help corporations, financial
institutions, financial advisors, and ultra-high-net-worth families
create and manage wealth. As of March 31, 2013, through its
subsidiaries and partnerships in which the company has a significant
interest, SEI manages or administers $495 billion in mutual fund and
pooled or separately managed assets, including $206 billion in assets
under management and $289 billion in client assets under
administration. For more information, visit www.seic.com. 
Company Contact:
Laura Edling
SEI
+1 610-676-3827
ledling@gmail.com