(HedgeCo.Net) SEI has moved decisively into liquid alternatives by converting one of its multi?strategy mutual funds into an ETF and signaling plans for further expansion. The newly launched SEI DBi Multi?Strategy Alternative ETF (ticker QALT) is intended to replicate hedge fund–style exposures via a rules?based, long/short strategy across equities, rates, and currencies. ETF Express
The mutual fund being converted had about USD 180 million in assets, which have now been transferred to the ETF structure. Meanwhile, the EMEA (UCITS) version of the strategy reportedly manages over USD 1 billion with nearly a 10?year track record. ETF Express SEI’s Head of Product Development, Robert Hum, acknowledged that SEI has been relatively late to the ETF space, but emphasized an upcoming wave of new launches or conversions targeting liquid alts and quantitative investing. ETF Express
SEI’s rationale is rooted in demand dynamics: with S&P returns averaging ~15% annually over the past decade, many investors overlooked alternatives. But with rising macro uncertainty, the firm believes demand for true diversifiers is reemerging. The strategy is being positioned to sit “alongside fixed income” to provide ballast in diversified portfolios. ETF Express
From a design perspective, SEI’s allocation splits roughly 40% into managed futures and 60% into multi?strategy allocations modeled on hedge fund approaches. The idea is to deliver hedge?style excess return in a more scalable, ETF wrapper. ETF Express SEI further sees the product fitting neatly into model portfolios and outsourced CIO platforms—segments it already serves institutionally. ETF Express
The move aligns with a broader industry push to simplify access to alternative strategies. By converting mutual funds to ETFs, SEI and others hope to reach a wider retail and advisor base, especially those who were previously blocked by institutional or opaque fund structures. ETF Express+1
Challenges remain. Liquid alts often carry complexity in gearing, derivatives, valuation, and liquidity management. Transparency, cost discipline, and governance will be key to winning investor trust. SEI is betting that combining institutional rigor with the ease of an ETF wrapper can help bridge that trust divide.
If successful, SEI may further catalyze a wave of liquid alts ETF launches or conversions. Over the next 12–18 months, the firm expects to be “aggressive” in expanding its ETF slate, with particular focus on alternative and quant themes. ETF Express For the broader market, SEI’s push may help lower structural barriers, increase liquidity, and deepen the liquid alts ecosystem.