#United States #ETF #SEI #Advisors' Inner Circle #Oaks

SEI Submits Exemptive Application for ETF Multi-Share Class Structure

In a significant move to enhance investment strategies for financial advisors, SEI® (NASDAQ: SEIC) has filed an exemptive application with the Securities and Exchange Commission (SEC) to establish an innovative multi-share class structure for ETFs. This initiative highlights the growing demand for flexible investment solutions, enabling investment advisors to better cater to their clients' needs while adhering to evolving industry standards.

SEI has meticulously analyzed the ETF multi-share class model, recognizing its potential to streamline operations and provide distinct advantages for their proprietary mutual funds and clients utilizing the Advisors' Inner Circle Fund® (AIC) platform. Historically, exemptive applications for such structures have predominantly been submitted by individual investment advisors. SEI's application marks a strategic shift, as it represents the interests of SEI's mutual fund administration and distribution divisions, thereby creating a framework that could significantly reduce both costs and processing times for advisors.

The motivation behind this application stems from the burgeoning interest from unaffiliated third-party investment advisors who operate on SEI's AIC platform—currently servicing 45 clients and managing over $100 billion in assets. Mike Beattie, Managing Director of SEI's Investment Managers business, emphasized the company’s commitment to supporting their clients' growth. He stated, “We’ve always been committed to enabling our clients' success by evolving our platform to provide the operational infrastructure and expertise that help them meet investors' demands.”

Given the complexities often associated with establishing traditional mutual funds, the proposed multi-share class structure could help simplify many of these challenges. It allows investment advisors to capitalize on SEI’s exemptions, thus avoiding the lengthy process of submitting individual exemptive applications to the SEC. This change is expected to empower financial professionals to optimize portfolio management strategies and enhance overall investment performance.

The collaboration with legal and advisory partners has been crucial in shaping SEI's application. Both Chapman and Cutler LLP, a prominent law firm specializing in investment management, and KCG Advisory Group LLC, known for its strategic consultancy services, have significantly contributed to the application process. Their combined expertise reinforces SEI's commitment to compliance while advocating for the interests of their clients.

In its efforts to position the ETF multi-share class structure as a standard in the ETF industry, SEI is not only responding to immediate market demands but is also laying the groundwork for future innovations in fund management. By continuing to adapt its business model in line with client expectations and regulatory environments, SEI aims to remain at the forefront of the financial services landscape.

As a company that manages a staggering $1.6 trillion in assets across various sectors, SEI is well-equipped to navigate the complexities of the financial market. With this application, the company is poised to further enhance its service offerings and ensure that financial advisors can deliver optimal investment solutions to their clients, ultimately driving better financial outcomes.

For more detailed insights into SEI and its latest initiatives, please visit seic.com.