SEI and GQG Partners Forge a New ETF Era
GQG Partners has officially launched its first exchange-traded fund, the GQG US Equity ETF (NYSE: GQGU), marking a significant milestone in its investment offerings. This pivotal launch is the result of a long-standing and strategic partnership with SEI Investments (NASDAQ: SEIC), leveraging SEI’s renowned Advisors’ Inner Circle Fund® (AIC) series trust platform. This collaboration represents a notable expansion for GQG into the rapidly growing active ETF space, a segment of the market that is commanding increasing attention from both institutional and retail investors.
The seamless integration provided by SEI’s robust infrastructure has allowed GQG to confidently enter this dynamic market, showcasing a powerful synergy between an innovative asset manager and a leading fund services provider. This strategic move is poised to redefine how investors access active management strategies, offering greater flexibility and efficiency in a familiar ETF wrapper.
GQGU’s Debut and Tax-Efficient Conversion
The GQG US Equity ETF (GQGU) launched on July 14, 2025, attracting over $200 million in assets under management. The fund’s initial funding was achieved through a Section 351 tax-efficient conversion of a private fund, allowing investors to transition their existing holdings without immediate taxable events. Steve Ford, GQG’s Head of Global Distribution, praised the fund’s commitment to innovation and flexibility, highlighting the surging demand for active ETFs. The tax-efficient conversion strategy demonstrates GQGU’s understanding of investor preferences and regulatory frameworks, making it an attractive option in the competitive ETF market.
Deepening a Nine-Year Strategic Partnership
The launch of GQGU significantly deepens the already robust and longstanding nine-year relationship between GQG Partners and SEI Investments. Prior to this ETF debut, GQG already offered a comprehensive suite of investment products, including six mutual funds and a private fund, all powered by SEI’s extensive infrastructure. With the addition of GQGU, the collaboration between the two firms is further solidified, showcasing a successful model of strategic partnership in the asset management industry.
SEI’s Advisors’ Inner Circle (AIC) platform plays a pivotal role in this relationship, handling end-to-end fund operations. This includes critical functions such as fund administration, efficient trade processing, comprehensive investor servicing, and meticulous compliance oversight. By providing GQG with a turnkey path into the complex ETF space, SEI enables asset managers to focus on their core competency of investment management while relying on SEI’s expertise for operational excellence and regulatory adherence. This integrated support system is a cornerstone of their successful and expanding collaboration.
SEI’s Pioneering Role in Active ETF Growth
SEI Investments has been a pioneer in the asset management industry for over three decades, notably through the series trust model. The AIC platform, which supports 127 funds and 45 clients, manages $100 billion in net assets as of 2024. This scale and experience demonstrate SEI’s leadership in fund launches and operations.
GQG’s move to launch its first active ETF through SEI comes amid explosive growth in the active ETF segment, projected to balloon from $856 billion in 2024 to $11 trillion by 2035. Active ETFs are expected to account for over a quarter of all ETF assets under management by then, highlighting SEI’s foresight in supporting this growing market.
Scalability and Cost-Efficiency of the AIC Platform
SEI’s Advisors’ Inner Circle (AIC) platform is known for its scalability and cost-efficiency, making it an ideal choice for asset managers to expand their product offerings and market presence. Sean Lawlor, Senior Vice President and Head of Traditional Investment Managers at SEI, emphasised the platform’s ability to quickly introduce new investment products without the significant overheads and operational complexities associated with launching and managing new funds.
The platform’s robust infrastructure and streamlined processes enable efficient expansion, allowing asset managers to respond swiftly to market demands and investor preferences. This cost-effective and scalable approach makes the AIC platform an attractive choice for firms looking to grow their product offerings and market presence.
Tapping into a Fast-Growing Market Segment
GQG Partners has launched the GQG US Equity ETF (GQGU), aiming to tap into the rapidly growing active ETF market segment. The ETF structure offers advantages like intraday trading, lower expense ratios, and enhanced tax efficiency. GQG can leverage its investment expertise to potentially outperform market benchmarks while providing investors with liquidity and transparency.
This move strengthens GQG’s foothold in the evolving investment landscape, allowing the firm to diversify its client base and capture a larger share of the burgeoning active ETF market. The strategic timing of GQGU’s launch aligns with the projected exponential growth of active ETFs.
The Future of Active ETFs and Partnership Models
SEI and GQG Partners have partnered to expand their active ETF offerings, demonstrating a successful model for future growth in the asset management industry. The growing demand for scalable, cost-efficient, and compliant fund solutions is expected to intensify. SEI’s series trust model and comprehensive AIC platform are well-positioned to meet this demand, allowing asset managers to expand their product offerings and reach new investor segments.
This partnership demonstrates how specialised service providers can enable investment firms to innovate and adapt to market changes without building extensive proprietary infrastructure. This collaborative approach is set to shape the future of investment product development, fostering greater efficiency and accessibility across global financial markets.
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