QALT: Celebrating three years of muted volatility and drawdowns

This June marks three years since SEI launched their long standing liquid alts strategy in an accessible ETF product, The SEI DBi Multi-Strategy Alternative ETF (QALT). 

Liquid alternatives continue to mature as an asset class, and investors are starting to take notice. In the ETF market, the liquid alternative space has grown rapidly, with total assets under management of $15.5 billion and inflows of $1.7 billion in the last year alone.¹ Looking at SEI’s SGMF Liquid Alternative Fund's ("Fund") since-inception performance, we are proud to say that the Fund has delivered on complimenting stocks and bonds with a low level of volatility, shallow drawdowns, and meaningful portfolio improvement through diversification (correlations to bonds and stocks of -0.03 and 0.54 respectively). 

As illustrated in Exhibit 1, the Fund's volatility has been significantly lower than that of global equities, as represented by the MSCI World Index. In fact, the Fund has also delivered volatility not far above that of core fixed income, as represented by the Bloomberg Global Aggregate Index. Given these historical risk properties, we believe that many traditional stock/bond portfolios may benefit from an allocation to QALT.

Similarly, the Fund has also demonstrated its role as a diversifier to traditional assets through its behavior in market downturns. As illustrated in Exhibit 2, the Fund's drawdowns historically have been meaningfully less severe than those seen in global equities or traditional bonds during periods of stress. In moments when stocks and bonds come under pressure simultaneously, we believe that an allocation to QALT may help to provide investors’ portfolios with some much-needed relief.

Taken together, these characteristics help illustrate why we see QALT as a source of diversification designed to reduce overreliance on stocks and bonds in periods when their traditional engines of return (equity risk, interest-rate exposure) struggle to deliver. Three years in, and we believe that the original rationale for QALT’s role in a portfolio doesn’t just hold up—it is increasingly relevant:

• Diversification remains scarce where, and perhaps more importantly, when portfolios need it most
• Equity and duration risk continue to dominate outcomes, for better or worse
• Liquidity, transparency, and implementation matter more than ever

QALT was built to address those realities through a disciplined, systematic implementation that blends strategic and tactical sources of alternative returns. For its slower-moving, longer-term strategic alpha exposure, the ETF invests 60% of its assets in a multi-strategy replication sleeve designed to approximate the behavior of a diverse set of large hedge fund strategies. For its faster-moving, trend-oriented tactical alpha exposure, the remaining 40% of the portfolio invests in a managed futures replication strategy designed to adapt more quickly to changing market conditions, including periods of inflation or market stress. QALT seeks to capture the best of both approaches in an ETF structure designed for advisor implementation. 

Over the past three years, we believe that QALT has demonstrated its ability to reduce volatility and drawdowns in a total portfolio context through a practical liquid alternatives sleeve designed to capture returns that are historically distinct from those of stocks and bonds.

Important information

*The SEI Global Master Fund (SGMF)Liquid Alternative Fund is a UCITS Fund. UCITS (Undertakings for Collective Investment in Transferable Securities) are highly regulated, standardized investment funds created under European Union directives and are therefore unavailable to U.S. investors. Metrics shown represent the SGMF Liquid Alternative Fund USD share class. On August 25, 2025 the SEI Institutional Managed Trust (SIMT) Liquid Alternative Fund, a mutual fund, (the "Predecessor Fund") was reorganized with and into the SEI DBi Multi‐Strategy Alternative ETF (QALT), a newly created series of the SEI Exchange Traded Funds. The UCITS Fund and the Predecessor Fund have the same investment objective, policies and restrictions, and substantially the same principal investment strategies, and the same investment adviser and sub‐adviser, as QALT.

¹Factset, as of 3/31/2026. 

The investment objective of the SEI DBi Multi-Strategy Alternative ETF is long-term capital appreciation.

For terms and definitions, please visit financial glossary. 

To determine if this Fund is an appropriate investment for you, carefully consider the fund’s investment objective, risks, and charges and expenses. This and other information can be found in the fund’s prospectus, and if available, the summary prospectus, which can be obtained by calling 1-800-DIAL-SEI. Please read the prospectus carefully prior to investing.

Investing involves risk, including possible loss of principal. Diversification may not protect against market risk. There is no guarantee the Fund will achieve its investment objective. 

This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice. 

The complex strategies employed by the Fund expose investors to several risks which are generally discussed below, and more extensively described in the Fund's prospectus. The Fund may not be appropriate for all investors and may be considered speculative.                                                                                 

The Fund is subject to market, credit, and liquidity risks, particularly due to its use of derivatives such as futures, options, and swaps, which may amplify losses and be difficult to value or exit. Its long/short strategy and dynamic asset allocation across global equity, fixed income, and currency markets add complexity and exposure to volatility, interest rate changes, and geopolitical events. Short positions, in particular, carry the risk of unlimited losses if the value of the underlying securities rises, and may increase overall portfolio volatility.

Fixed income investments may decline in value as interest rates rise, and longer-duration securities tend to be more volatile. The Fund may also invest in below investment grade securities (junk bonds), which are more susceptible to default and price swings due to their speculative nature and sensitivity to economic downturns.

Investments in foreign and emerging markets carry additional risks from political instability, limited transparency, and currency fluctuations. Leverage may magnify gains and losses, and trading risks may cause shares to deviate from net asset value. Tax treatment of certain investments may also affect shareholder returns.

Index returns are for illustrative purposes only and do not represent actual fund performance. Index returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results.

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

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