Issue link: https://read.uberflip.com/i/1494883
29 SIMC and its affiliates receive fees from the SEI Funds, which are determined as a percentage of the SEI Funds' total assets. Therefore, to the extent that SIMC recommends that a Client invest in the SEI Funds, SIMC and its affiliates benefit from investment in the SEI Funds. Please see Items 4 and 12 for additional information. SIMC and its affiliates may assist certain Clients with their marketing activities, including providing brochures and other forms of marketing materials that Clients may use with their donors. SIMC enters into solicitation arrangements with third parties who will receive a solicitation fee from SIMC for introducing prospective clients to SIMC or SIMC investment products Additionally, SIMC may compensate SIMC employees who will receive a fee (determined based on the fee paid to SIMC by the client) for introducing prospective clients to SIMC or SIMC investment products. Where required by federal or state law, each solicitation arrangement will be governed by a written agreement between SIMC and the third party that complies with Rule 206(4)-3 of the Investment Advisers Act of 1940. As required, clients will be provided with copies of Part 2 of SIMC's Form ADV, separate disclosure of the nature of the solicitation or referral arrangement (including compensation features) applicable to the client being referred, and any other document required to be provided under applicable state law. Item 15 – Custody In many cases, SPTC, an affiliate of SIMC, serves as custodian for SIMC clients (with the exception of the SEI Funds and some of SIMC's other Pooled Investment Vehicles). As custodian, SPTC will send periodic account statements directly to SIMC clients. Additionally, SPTC provides SIMC clients with other reporting services, including quarterly performance reports, year-end tax reports and online account access. SPTC charges a fee for its services. SIMC clients whose assets are custodied with SPTC are encouraged to carefully review the account statements they receive from SPTC. In addition, SIMC clients are urged to compare any reports received from SIMC to the account statements received from SPTC (or other third-party custodian). Comparing statements will allow clients to determine whether account transactions, including deductions to pay advisory fees, are accurate. As a result of its affiliation with the general partner or director to the SEI Alternative Funds, SIMC is deemed to have custody of the SEI Alternative Funds' assets. Pursuant to Rule 206(4)-2 of the Investment Advisers Act of 1940, SIMC maintains compliance by ensuring that each SEI Alternative Fund: • is audited on an annual basis by an independent accountant that is registered with, and subject to regular inspection by, the Public Company Accounting Oversight Board in accordance with its rules. • distributes audited financial statements prepared in accordance with generally accepted accounting principles to all limited partners (or members or other beneficial owners) within the distribution timeframes set forth in Rule 206(4)-2 specific to the type of private fund. SIMC does not maintain custody of certain legacy hedge investments held by Clients but may provide certain reporting services on such investments. In these cases, Clients should receive at least quarterly statements from the broker dealer, bank or other qualified custodian that holds and maintains Clients' investment assets or receive annual audited financial statements from the private fund sponsor. SIMC urges you to carefully review such statements and compare such official custodial records to the account statements that SIMC may provide to you. Our statements may vary from custodial statements based on accounting procedures, reporting dates, or valuation methodologies of certain securities.