GQG Partners Selects SEI's Advisors' Inner Circle Fund to Launch First ETF

Rhea-AI Summary

SEI (NASDAQ:SEIC) announced that GQG Partners has chosen the Advisors' Inner Circle Fund (AIC) series trust to launch its first ETF, the GQG US Equity ETF (NYSE: GQGU). The ETF launched on July 14, 2025, with over $200 million in AUM through a tax-efficient private fund conversion.

This expansion builds on a nine-year partnership between SEI and GQG, which already includes six mutual funds and a private fund. The AIC platform, which reached $100 billion in net assets in 2024, currently supports 45 clients and 127 funds. The launch aligns with projected growth in active ETFs, which are expected to reach $11 trillion by 2035, representing 27% of total ETF AUM.

Positive

• Successful launch of GQG US Equity ETF with over $200 million in initial AUM
• Tax-efficient conversion method used for ETF launch under Section 351
• Strong market growth potential with active ETFs projected to reach $11 trillion by 2035
• AIC platform demonstrates significant scale with $100 billion in net assets

Negative

• None.

Insights

Investment Management Expert

SEI's platform enables GQG's ETF launch with $200M AUM, strengthening their partnership amid explosive growth in the active ETF market.

This partnership announcement showcases SEI's continued growth in the ETF infrastructure space through their Advisors' Inner Circle Fund (AIC) platform. The launch of GQG's first ETF with $200 million in initial assets represents a significant win for SEI's fund services business, which has now surpassed $100 billion in net assets across 127 funds and 45 clients.

What makes this particularly notable is the tax-efficient conversion method employed under Section 351, allowing existing GQG private fund investors to migrate to the ETF structure without triggering immediate tax consequences. This sophisticated approach demonstrates SEI's operational capabilities in complex fund transitions.

The timing is strategically aligned with explosive growth projections in the active ETF market, which is expected to expand from $856 billion to $11 trillion by 2035—eventually representing 27% of total ETF assets and 17% of all open-ended funds. This positions SEI's platform business to capture substantial revenue growth as more managers like GQG seek turnkey solutions.

For investors, this represents part of a broader industry shift toward active ETF vehicles that combine active management with the liquidity, transparency, and potential tax efficiencies of ETFs. The AIC's 30-year track record provides established infrastructure that reduces time-to-market for investment managers looking to expand their product lineups without building proprietary fund operations systems.

With 60+ new asset managers entering the ETF market last year alone, SEI's specialized services address a genuine market need as traditional asset managers continue diversifying their product offerings to meet evolving investor preferences.

Turnkey Operational Platform Supports Multiple Investment Vehicles, Powers Growth for Investment Managers

OAKS, Pa., July 31, 2025 /PRNewswire/ -- SEI^® (NASDAQ:SEIC) today announced that GQG Partners (GQG) has selected the Advisors' Inner Circle Fund^® (AIC) series trust as its operational platform to launch its first ETF, GQG US Equity ETF (NYSE: GQGU). GQG's ETF launch marks the expansion of its nine-year strategic partnership with SEI, which also services six mutual funds and a private fund for GQG.

The new active U.S. Equity ETF launched on July 14, 2025, with more than $200 million in assets under management (AUM), funded by a strategic private fund conversion under Section 351, which affords shareholders a one-time, tax-efficient method of migrating their holdings to an ETF vehicle. Led by SEI, the conversion and subsequent ETF launch complements GQG's existing products, while appealing to investors and advisors who seek an ETF structure to access investment management expertise.

Steve Ford, Head of Global Distribution at GQG Partners, said:

"At GQG, we are determined to help our clients build capital by seeking to deliver flexibility, innovation, and choice in their investment vehicles. GQGU is a testament to this commitment as investors' desire for access to active ETFs continues to grow. As we sharpen our focus on strategic business growth, SEI's expertise and operational infrastructure provided through the Advisors' Inner Circle Fund series trust enabled us to quickly and confidently expand our fund offerings to meet clients' needs."

Active ETFs in the U.S. are projected to grow from $856 billion in 2024 to $11 trillion by 2035.¹ They are also expected to represent 27% of total ETF AUM and 17% of all open-ended, long-term fund AUM by 2035.¹ Last year, the number of global ETF/ETP launches also surged, with more than 60 asset managers entering the market—bringing the total number of exchange-traded fund and product issuers to approximately 690.²

Commenting on the partnership, Sean Lawlor, Senior Vice President and Head of SEI's Traditional Investment Managers business, said:

"As demand for investment choice continues to rise, our Advisors' Inner Circle Fund provides a scalable, established infrastructure and the expertise of a professional team of seasoned experts to support product launches. The AIC is a cost-effective way to establish an ETF using a series trust solution that addresses every facet of an ETF's fund operation, including fund administration and accounting, trade order processing, investor servicing, ETF order-taking, capital markets support, and statutory underwriting.

"Building upon our longstanding relationship with GQG, we look forward to supporting their continued growth and helping them operationalize and launch their first ETF through the AIC. Their global presence has made them an ideal long-term strategic partner, and we share their deep commitment to client centricity."

The AIC reached $100 billion in net assets in 2024 and supports 45 clients and 127 funds.³ SEI helped pioneer the series trust concept more than 30 years ago by introducing the AIC with an institutional-quality turnkey mutual fund operating platform. Today, the AIC enables investment organizations to rapidly launch and grow mutual funds, ETFs, and interval and tender offer funds without having to build their own fund operating infrastructure. The platform is designed for asset managers seeking a more cost-effective way to operate their existing funds.

¹Doug Dannemiller, Mohak Bhuta, "Investment managers could unlock a US$11 trillion market opportunity through active ETF growth," Deloitte Center for Financial Services, April 24, 2025.

²PwC, "ETFs 2029: The path to $30 trillion," March 5, 2025.

³As of June 30, 2025.

About SEI^®
SEI (NASDAQ:SEIC) is a leading global provider of financial technology, operations, and asset management services within the financial services industry. SEI tailors its solutions and services to help clients more effectively deploy their capital—whether that's money, time, or talent—so they can better serve their clients and achieve their growth objectives. As of June 30, 2025, SEI manages, advises, or administers approximately $1.7 trillion in assets. For more information, visit seic.com.

About SEI's Investment Managers business
SEI's Investment Managers business provides advanced operating infrastructure for investment organizations of all types to evolve and compete in a landscape of escalating business challenges. SEI's global operating platform delivers customized and integrated capabilities across a wide range of investment vehicles, strategies, and jurisdictions to investment managers and asset owners. The company's services enable users to gain scale and efficiency, keep pace with marketplace demands, and run their businesses more strategically. For more information, visit seic.com/ims.

About GQG Partners
GQG Partners, LLC (GQG) is an investment boutique that manages global and emerging market equities for institutions, advisors, and individuals worldwide. Headquartered in Fort Lauderdale, Florida, with offices around the world, GQG is committed to delivering long-only equity strategies with the goal of compounding capital for its clients. With a focus on client alignment, adaptability, and diverse perspectives, GQG strives to stay attuned to clients' needs and continuously seeks out new insights to inform decision-making. GQG manages US$172.4 billion in client assets as of 30 June 2025.*

*AUM represents both discretionary and non-discretionary assets and is rounded to the nearest US$100 million. AUM has not been audited and in certain instances reflects the most recently available estimate.

You should carefully consider the investment objective, risks, charges, and expenses of the Fund before investing. The Fund's prospectus contains this and other important information about the Fund, which can be obtained by dialing +1 (866) 362-8333 or visiting gqg.com/documents. Please read the prospectus carefully before investing. The Fund's Statement of Additional Information can also be obtained by dialing +1 (866) 362 8333 or visiting gqg.com/documents.

Understanding Investment Risk

Investing involves risks, including loss of principal. There is no guarantee the Fund will achieve its stated objective. Investments in the United States may result in the Fund being more susceptible to economic, political, regulatory, or other events or conditions affecting issuers within the United States. They may be subject to greater price volatility and risk of loss than a fund holding more geographically diverse investments. International investments may also be susceptible to the same events or conditions as well as unfavorable fluctuations in currency values, or differences in generally accepted accounting principles in other nations. The Fund is non-diversified. In addition to the normal risks associated with investing, investments in small and mid-size companies may be more volatile and less liquid than those of large companies. The Fund may invest in initial public offerings (IPOs) whose share values can vary widely due to limited trading experience and company information. Investing in IPOs carries higher risks and costs compared to established companies, along with market and liquidity risks. The Fund may trade frequently, increasing transaction costs and taxes due to short-term gains. Its performance depends on the Adviser's investment decisions, which may not always be accurate, potentially leading to underperformance compared to similar funds.

SEI Investment Distribution Co. (SIDCO) is the distributor for the GQG US Equity ETF. SIDCO is not affiliated with GQG Partners. Check the background of SIDCo on FINRA's BrokerCheck.

Company Contact:	Media Contact:
Leslie Wojcik	Eric Hazard
SEI	Vested
+1 610-676-4191	+1 917-765-8720
lwojcik@seic.com	eric@fullyvested.com

 

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SOURCE SEI Investments Company

FAQ

What is the new GQG Partners ETF launched through SEI's platform?

The GQG US Equity ETF (NYSE: GQGU) is an active U.S. Equity ETF launched on July 14, 2025, with over $200 million in initial assets under management.

How much is SEI's Advisors' Inner Circle Fund (AIC) platform managing?

As of June 30, 2025, the AIC platform has reached $100 billion in net assets, supporting 45 clients and 127 funds.

What is the projected growth for active ETFs according to the announcement?

Active ETFs are projected to grow from $856 billion in 2024 to $11 trillion by 2035, expected to represent 27% of total ETF AUM.

How did GQG Partners fund their new ETF launch?

The ETF was funded through a strategic private fund conversion under Section 351, providing shareholders with a tax-efficient method to migrate holdings to an ETF vehicle.

What is the existing relationship between SEI and GQG Partners?

SEI and GQG Partners have a nine-year strategic partnership, with SEI servicing six mutual funds and a private fund for GQG before this ETF launch.