Wealth management firms, financial advisors and their clients
For investors looking for ways to diversify their portfolio and pursue their goals, alternative investments are gaining prominence.
Alternative investment strategies have historically been available only to institutional or high-net-worth investors at high investment minimums.
The emergence of liquid alternative investments makes this asset type more widely available to all investors. “Liquid alts” combine the performance potential of alternative investments with the liquidity and transparency of traditional mutual funds.
The SEI Liquid Alternative Fund's (the Fund) objective is to provide, primarily through investment in derivative instruments, long-term capital appreciation by implementing a strategy that seeks to approximate the returns of a model portfolio of funds that employ alternative investment strategies. Leverage may be created using derivatives but will not exceed 300% of the Fund’s net asset value. The Fund seeks to approximate the total return (before taking into account the Fund’s fees and expenses) of a model portfolio of alternative investment strategies, that primarily consists of hedge funds (the Composite).
The Composite consists of two components: a multi-strategy sleeve and a managed futures sleeve. SEI generally expects to maintain an approximate 60/40 weighting between the multi-strategy sleeve and the managed futures sleeve, respectively, but may increase or decrease a sleeve’s weighting. The managed futures sleeve will consist of derivative instruments that, in the aggregate, are designed to reflect the return profile of a third-party index that consists of 20 equally weighted, large managed futures funds. The multi-strategy sleeve seeks to approximate the average total return of the 50 largest hedge funds (excluding managed futures funds), equally weighted.
Advisors can allocate to the Fund within their own portfolios or through a selection of asset allocation funds and portfolio models managed by SEI Investments Canada Company (SEI Canada).
Risk rating: Low to medium***
| Class | Fundserv code | Management fee**** |
| F | PCA360 | 0.85% |
| F (Hedged) | PCA361 | 0.85% |
| E | PCA657 | 1.85% |
| E (Hedged) | PCA658 | 1.85% |
*As of September 30, 2024
**Not available to Canadian investors
*** Because this is a new fund, the risk rating is only an estimate by SEI Investments Canada Company. Generally, the rating is based on how much the fund’s returns have changed from year to year. It doesn’t tell you how volatile the fund will be in the future. The rating can change over time. A fund with a low risk rating can still lose money.
**** These figures represent the annual management fee as this fund was launched August 19, 2024.
Important Information
SEI Investments Canada Company, a wholly owned subsidiary of SEI Investments Company (SEI), is the Manager of the SEI Funds in Canada.
The Fund is an alternative mutual fund and is permitted to invest in asset classes and use investment strategies that are not permitted for other types of mutual funds. The Fund uses derivatives and in turn leverage to a greater degree than a traditional mutual fund. As a result, the risks associated with derivatives and leverage are amplified, and therefore the Fund may have a heightened risk of investment loss as compared to a traditional mutual fund.
Commissions, trailing commissions, management fees, and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated.
