SEI Launches Multi-Strategy Alternative ETF

Rhea-AI Summary

SEI (NASDAQ: SEIC) has announced the launch of the SEI DBi Multi-Strategy Alternative ETF (NASDAQ:QALT), following the reorganization of the SIMT Liquid Alternative Fund into an ETF structure. The new ETF aims to replicate hedge fund return profiles through a quantitative, rules-based approach, allocating positions across global equity, fixed income, and currency markets.

The ETF will be managed by SEI and sub-advised by Dynamic Beta Investments (DBi), continuing their decade-long partnership. DBi specializes in hedge fund replication strategies, focusing on delivering hedge fund-like returns with improved liquidity and lower fees. The launch marks a significant step in democratizing access to hedge-like strategies through the ETF structure.

Positive

• Expansion of investment offerings through new ETF structure providing better accessibility
• Partnership with DBi brings proven expertise in hedge fund replication strategies
• Enhanced liquidity and lower fees compared to traditional hedge fund structures
• Track record of successful partnership spanning nearly 10 years

Negative

• Fund performance will be reduced by fees and expenses
• Complex investment strategy may be difficult for retail investors to understand

Insights

ETF & Investment Product Specialist

SEI's mutual fund-to-ETF conversion signals strategic adaptation to investor demand for alternative strategies in more accessible formats.

SEI's conversion of its SIMT Liquid Alternative Fund into the new SEI DBi Multi-Strategy Alternative ETF (NASDAQ:QALT) represents a significant strategic move in the evolving ETF landscape. This transformation maintains the fund's hedge fund replication strategy while delivering it through the more tax-efficient, accessible ETF structure that today's investors increasingly prefer.

The ETF aims to replicate returns of alternative strategies (primarily hedge funds) using a quantitative, rules-based approach with dynamic allocation across global equity, fixed income, and currency markets. This launch addresses a notable gap in the market, as liquid alternative ETFs remain relatively scarce despite growing advisor demand for uncorrelated return sources.

This product evolution demonstrates SEI's responsiveness to changing distribution preferences while leveraging their decade-long partnership with Dynamic Beta Investments (DBi). The relationship's longevity is notable in an industry where sub-advisory partnerships often change frequently. Their mutual fund has gained recognition through multiple awards, suggesting the strategy has delivered on its objectives.

For SEI, this represents more than just a new product—it's a strategic repositioning that may help attract assets from advisors who prefer ETF structures. In a challenging market for asset managers, SEI's willingness to cannibalize its own mutual fund business shows adaptability to evolving investor preferences, potentially strengthening its competitive position in the alternatives space.

Mutual Fund Reorganization Reinforces Commitment to Delivering Investment Diversification and Flexibility

OAKS, Pa., Sept. 3, 2025 /PRNewswire/ -- SEI^® (NASDAQ: SEIC) today announced the launch of the SEI DBi Multi-Strategy Alternative ETF (NASDAQ:QALT) following the reorganization of the SIMT Liquid Alternative Fund to an ETF. As part of SEI's growing lineup of ETFs, the SEI DBi Multi-Strategy Alternative ETF will adopt the same strategy as the mutual fund, now delivered in a cost-efficient and accessible structure. QALT seeks long-term capital appreciation by replicating the return profile (before taking into account the Fund's fees and expenses) of a model portfolio of alternative strategies, which primarily consists of hedge funds. The fund uses a quantitative, rules-based approach to dynamically allocate long and short positions across global equity, fixed income, and currency markets.

The ETF will continue to be managed by SEI and sub-advised by Dynamic Beta Investments (DBi), an asset manager specializing in hedge fund replication strategies. DBi combines rigorous research with a goal of delivering hedge fund-like returns with improved liquidity and lower fees, leveraging expertise in quantitative techniques. Since 2015, DBi has sub-advised SEI's suite of liquid alternative funds, including products in the U.S., Ireland, and Canada. SEI has been investing in alternatives since 2003.

Commenting on the ETF launch, Robert Hum, Head of Investment Product Development and Activation at SEI, said:

"Advisors and investors are increasingly seeking differentiated sources of return, yet liquid alternative ETFs remain limited. This launch is a major step forward—not only in democratizing access to hedge-like strategies through the ETF structure, but in advancing our investment platform to deliver the exposures clients are actively asking for. We're proud to partner with DBi, whose expertise we deeply respect, as we continue to expand access to sophisticated investment solutions."

Andrew Beer, Founder and Managing Member of DBi, added:

"It has been our mission at DBi to develop the most effective ways to deliver the diversification benefits of leading hedge funds with reasonable fees, daily liquidity, less downside risk, and full transparency. The success of our strategic partnership with SEI has spanned nearly 10 years, providing differentiated investment opportunities for advisors and their clients. Our combined deep investment expertise and rigorous statistical analysis can enable enhanced portfolio outcomes."

SEI and DBi will mark the 10-year anniversary of the SEI Liquid Alternative Fund this November. As an award-winning¹, UCITS-compliant² multi-strategy hedge fund solution, the fund was designed to strengthen the risk-return profile of SEI's institutional and private client multi-asset portfolios. Its decade-long track record reflects the strength of the SEI and DBi strategic partnership and a shared commitment to delivering long-term capital appreciation.

¹The Hedge Fund Journal, 2022, UCITS Hedge Fund Award, Hedge Fund Replication, Best Performing Fund over 5 Years. Refinitiv Lipper Fund Awards, 2023, Best Alternative Multi Strategies Fund over 3 and 5 years. Europe | France | Germany | Switzerland | United Kingdom
²Domicile: Dublin, Ireland. UCITS (Undertakings for Collective Investment in Transferable Securities) are guidelines that enable mutual fund-like pooled securities to be traded across EU borders.

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.

SEI Investments Management Corporation (SIMC) is the adviser to the SEI Funds, which are distributed by SEI Investments Distribution Co. (SIDCO). SIMC and SIDCO are wholly owned subsidiaries of SEI Investments Company (SEI).

To determine if the Fund is an appropriate investment for you, carefully consider the investment objectives, risk factors and charges, and expenses before investing. This and other information can be found in the Fund's full or summary prospectus, which can be obtained by calling 1-800-DIAL-SEI. Read the prospectus carefully before investing.

There are risks involved with investing, including possible loss of principal. There is no guarantee the fund will achieve its investment objective. Diversification may not protect against market risk. The complex strategies employed by this fund expose investors to several risks which are generally discussed below, and more extensively described in the fund's prospectus. This fund may not be appropriate for all investors, and may be considered speculative. This fund invests in derivative instruments which are subject to illiquidity and counterparty risk. With short sales, you risk paying more for a security than you received from its sale. Short sales losses are potentially unlimited and the expenses involved with the shorting strategy may negatively impact the performance of the fund. Actively managed ETFs may be subject to increased transaction costs. Active trading may increase the amount of taxes you owe by generating short-term gains, which may be taxed at a higher rate. While the Fund is actively managed, the investment process is expected to be dependent on quantitative models and the models may not perform as intended. Exposure to certain investment factors may detract from performance in certain market environments, in some cases for extended periods which could result in losses.

Company Contact:  Leslie Wojcik SEI +1 610-676-4191 lwojcik@seic.com

Media Contact: Eric Hazard Vested +1 214-734-8203 eric@fullyvested.com

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SOURCE SEI Investments Company

FAQ

What is the ticker symbol for SEI's new Multi-Strategy Alternative ETF?

The SEI DBi Multi-Strategy Alternative ETF trades under the ticker symbol NASDAQ:QALT.

What is the investment strategy of SEI's new alternative ETF?

The ETF seeks long-term capital appreciation by replicating hedge fund return profiles using a quantitative, rules-based approach to dynamically allocate long and short positions across global equity, fixed income, and currency markets.

Who manages SEI's new Multi-Strategy Alternative ETF?

The ETF is managed by SEI and sub-advised by Dynamic Beta Investments (DBi), an asset manager specializing in hedge fund replication strategies.

What advantages does SEI's new ETF structure offer compared to traditional hedge funds?

The ETF structure offers improved liquidity, lower fees, daily trading capability, and greater transparency compared to traditional hedge fund investments.

How long has SEI been partnering with Dynamic Beta Investments?

SEI and DBi have maintained a strategic partnership for nearly 10 years, with DBi sub-advising SEI's suite of liquid alternative funds since 2015.