SEI launches high yield bond ETF after converting $1 billion mutual fund

SEI (NASDAQ: SEIC) launched the SEI High Yield Bond & Alternative Credit ETF (NASDAQ: LEND) following the reorganization of the SIMT High Yield Bond Fund into an exchange-traded fund structure. The conversion represents SEI's first fixed income ETF, expanding the company's platform beyond equities and liquid alternatives.

LEND maintains the mutual fund's investment objective, strategy, and portfolio management approach while offering the converted assets in a more accessible ETF format. The fund seeks total return by investing in sub-investment-grade, high-yielding fixed income securities, combining multi-manager high yield bond allocation with an internally managed collateralized loan obligations sleeve.

The ETF utilizes SEI's manager-of-managers approach, incorporating multiple active investment managers with different philosophies alongside SEI's internally managed CLO allocation. CLOs are structured securities backed by pools of loans and issued in multiple tranches with varying risk and return levels.

"Reorganizing this long-standing mutual fund into an ETF is a natural next step in evolving our investment platform," said Robert Hum, Head of Investment Product Development and Activation at SEI. "LEND preserves the strategy's time-tested 30-year track record, combining SEI's manager research expertise in identifying differentiated high yield strategies with our deep experience structuring and managing CLOs."

The strategy provides diversified exposure across traditional and alternative credit markets through a single exchange-traded vehicle, offering access to institutional-caliber managers and credit strategies that historically required higher investment minimums. SEI manages, advises, or administers approximately $1.9 trillion in assets as of March 31, 2026.

The information is based on a company press release.

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