Key Takeaways
- • SEI has converted its multi-strategy liquid alternatives mutual fund (SIMT Liquid Alternative Fund) into the SEI DBi Multi-Strategy Alternative ETF (ticker: QALT), bringing approximately $180 million in assets from the mutual fund structure into the new ETF vehicle.
- • The strategy employs a rules-based, long/short approach across equities, rates, and currencies designed to replicate hedge-fund return profiles, with Dynamic Beta Investments (DBi) serving as sub-adviser alongside SEI's internal management.
- • SEI plans aggressive ETF expansion focused on liquid alternatives and quantitative investing, with eight ETFs currently in operation and additional launches planned in areas where the firm believes it has competitive advantages.
- • The EMEA UCITS version of the strategy holds over $1 billion in assets and has an established track record approaching 10 years, demonstrating institutional validation of the underlying investment approach.
- • Robert Hum, Head of Investment Product Development and Activation, cited client demand and limited competitive options in liquid alternatives as drivers for the conversion, positioning the ETF as a diversification vehicle alongside traditional fixed income allocations.
Summary
SEI Investments has converted its multi-strategy liquid alternatives mutual fund into an exchange-traded fund structure, marking the latest step in the firm's stated push to expand its ETF product suite. The new SEI DBi Multi-Strategy Alternative ETF (QALT) received approximately $180 million in assets from the reorganization of the SIMT Liquid Alternative Fund, according to ETF Express reporting on the conversion.
The strategy targets long-term capital appreciation by replicating the return profiles of leading hedge-fund strategies through a rules-based methodology that takes both long and short positions across equities, rates, and currencies. Dynamic Beta Investments serves as sub-adviser to the fund, with SEI managing the strategy in-house. The underlying investment thesis reflects a conviction that equity market concentration over the past decade—with the S&P 500 delivering approximately 15 percent annualized returns—has reduced investor focus on diversification strategies that alternatives can provide.
Robert Hum, SEI's Head of Investment Product Development and Activation, emphasized that the firm acknowledged arriving to the ETF market relatively late but has moved strategically since entering the space. "We are looking at new launches or conversions," Hum stated. "We have been a little late to the ETF game and now we have eight ETFs, but plan to aggressively launch in areas where we think we have an edge." The firm's expansion strategy centers on liquid alternatives and quantitative investing, areas where Hum suggested limited competitive options exist relative to the anticipated rise in demand for diversification tools.
The conversion reflects broader industry trends toward ETF structures, which typically offer greater accessibility and cost efficiency compared to traditional mutual fund vehicles. Notably, the EMEA UCITS version of this strategy already manages over $1 billion in assets and carries a nearly 10-year track record, providing institutional validation of the investment approach prior to the U.S. ETF conversion. Client demand for the strategy in ETF format was cited as a primary driver for the conversion decision.
The strategy targets long-term capital appreciation by replicating the return profiles of leading hedge-fund strategies through a rules-based methodology that takes both long and short positions across equities, rates, and currencies. Dynamic Beta Investments serves as sub-adviser to the fund, with SEI managing the strategy in-house. The underlying investment thesis reflects a conviction that equity market concentration over the past decade—with the S&P 500 delivering approximately 15 percent annualized returns—has reduced investor focus on diversification strategies that alternatives can provide.
Robert Hum, SEI's Head of Investment Product Development and Activation, emphasized that the firm acknowledged arriving to the ETF market relatively late but has moved strategically since entering the space. "We are looking at new launches or conversions," Hum stated. "We have been a little late to the ETF game and now we have eight ETFs, but plan to aggressively launch in areas where we think we have an edge." The firm's expansion strategy centers on liquid alternatives and quantitative investing, areas where Hum suggested limited competitive options exist relative to the anticipated rise in demand for diversification tools.
The conversion reflects broader industry trends toward ETF structures, which typically offer greater accessibility and cost efficiency compared to traditional mutual fund vehicles. Notably, the EMEA UCITS version of this strategy already manages over $1 billion in assets and carries a nearly 10-year track record, providing institutional validation of the investment approach prior to the U.S. ETF conversion. Client demand for the strategy in ETF format was cited as a primary driver for the conversion decision.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.