-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, U3P6xCpyKJdkg3rcwTfhqzLOHUVKB5xiN3bV/OB9JU2dIU1xcZFFrQvuWDimR1fW WjTi9TFweCgxMK/FxM1RDA== 0000893220-96-000642.txt : 19960430 0000893220-96-000642.hdr.sgml : 19960430 ACCESSION NUMBER: 0000893220-96-000642 CONFORMED SUBMISSION TYPE: 497 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19960429 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: SEI INTERNATIONAL TRUST CENTRAL INDEX KEY: 0000835597 STANDARD INDUSTRIAL CLASSIFICATION: [] STATE OF INCORPORATION: MA FISCAL YEAR END: 0228 FILING VALUES: FORM TYPE: 497 SEC ACT: 1933 Act SEC FILE NUMBER: 033-22821 FILM NUMBER: 96553088 BUSINESS ADDRESS: STREET 1: 2 OLIVER ST CITY: BOSTON STATE: MA ZIP: 02109 BUSINESS PHONE: 8003425734 MAIL ADDRESS: STREET 1: SEI INTERNATIONAL TRUST STREET 2: 680 E SWEDESFORD RD CITY: WAYNE STATE: PA ZIP: 19087 FORMER COMPANY: FORMER CONFORMED NAME: SEI WEALTH MANAGEMENT TRUST DATE OF NAME CHANGE: 19900129 497 1 SEI INTERNATIONAL TRUST REVISED 497 FILING 1 SEI INTERNATIONAL TRUST INTERNATIONAL EQUITY PORTFOLIO EMERGING MARKETS EQUITY PORTFOLIO INTERNATIONAL FIXED INCOME PORTFOLIO SUPPLEMENT DATED APRIL 8, 1996 TO THE CLASS A PROSPECTUS DATED AUGUST 31, 1995 THIS SUPPLEMENT TO THE PROSPECTUS SUPERSEDES AND REPLACES ANY EXISTING SUPPLEMENTS TO THE PROSPECTUS. THIS SUPPLEMENT PROVIDES NEW AND ADDITIONAL INFORMATION BEYOND THAT CONTAINED IN THE PROSPECTUS, AND SHOULD BE READ IN CONJUNCTION WITH SUCH PROSPECTUS. At a meeting held on December 4-5, 1995, the Board of Trustees of the Trust voted to change the name of the Core International Equity Portfolio to the "International Equity Portfolio" effective January 1, 1996. ------------------------------------ At a Special Meeting of Shareholders held on March 15, 1996, Shareholders of the European Equity Portfolio and Pacific Basin Equity Portfolio, two other separately managed series of SEI International Trust (the "Trust"), approved an Agreement and Plan of Reorganization and Liquidation, relating to the European Equity and Pacific Basin Portfolios into the International Equity Portfolio, which Agreement provided for: (i) the transfer of substantially all of the assets and liabilities of the European Equity and Pacific Basin Equity Portfolios to the International Equity Portfolio in exchange for shares of the International Equity Portfolio; and (ii) the distribution of the International Equity Portfolio's shares so received to Shareholders of the European Equity and Pacific Basin Equity Portfolios in liquidation of those portfolios. At the same Meeting, the Shareholders of the International Equity Portfolio approved the addition of Morgan Grenfell Investment Services Limited ("MG") and Schroder Capital Management International Limited ("SC") as investment sub-advisers to the International Equity Portfolio, and the respective investment sub-advisory agreements between SEI Financial Management Corporation ("SFM") and SC and MG relating to the International Equity Portfolio. Shareholders of the International Equity Portfolio also approved an amended Investment Advisory Agreement between the International Equity Portfolio and SFM, which increased the advisory fee paid to SFM and an Amended Investment Sub-Advisory Agreement between SFM and Acadian Asset Management, Inc. ("Acadian"), which increased the sub-advisory fee paid to Acadian. The transactions to be accomplished under the Agreement were completed on March 25, 1996. As a result, the European Equity and Pacific Basin Equity Portfolios were liquidated and are no longer operative. Accordingly, all references to those Portfolios in this Prospectus are deleted. As a result of these changes to the investment advisory structure of the International Equity Portfolio,, the operating expenses of the International Equity Portfolio have changed. The following "Annual Operating Expenses" table replaces the corresponding table on page 4 of the Prospectus: 2 ANNUAL OPERATING EXPENSES (as a percentage of average net assets)
- -------------------------------------------------------------------------------------------------------------------------------- INTERNATIONAL EQUITY EMERGING MARKETS INTERNATIONAL FIXED PORTFOLIO EQUITY PORTFOLIO INCOME PORTFOLIO --------- ---------------- ---------------- Management/Advisory Fees (after fee waiver and reimbursement)(1) .94% .80% .57% 12b-1 Fees(2) .15% .15% .15% Other Expenses .19% 1.00% .28% - -------------------------------------------------------------------------------------------------------------------------------- Total Operating Expenses (after fee waiver and reimbursement)(3) 1.28% 1.95% 1.00% - --------------------------------------------------------------------------------------------------------------------------------
(1) SEI Financial Management Corporation ("SFM"), in its capacity as Manager for each Portfolio, and certain of the advisers, have waived, on a voluntary basis, a portion of their fee, and the management/advisory fees shown reflect these voluntary waivers. SFM and the advisers each reserve the right to terminate its waiver at any time in its sole discretion. Absent such fee waiver, management/advisory fees would be .96% for the International Equity Portfolio, and .90% for the International Fixed Income Portfolio. For the Emerging Markets Equity Portfolio, SFM has agreed to waive its management fee, and, if necessary, pay other operating expenses of the Portfolio in an amount that operates to limit the total operating expenses of the Class A shares. Absent this fee waiver and expense reimbursement, management/advisory fees would be 1.70% for the Emerging Markets Equity Portfolio. For the International Equity Portfolio, management/advisory fees have been restated to reflect current fees. (2) The 12b-1 fees shown reflect each Portfolio's current 12b-1 budget for reimbursement of expenses. The maximum 12b-1 fee payable by Class A shares for each Portfolio is .30%. (3) Absent the Manager's fee waiver and expense reimbursement, total operating expenses would be 1.45% for the International Equity Portfolio, 3.00% for the Emerging Markets Equity Portfolio and 1.48% for the International Fixed Income Portfolio. Additional information may be found under "The Advisers," "The Sub-Advisers" and "The Manager and Shareholder Servicing Agent." For the International Equity Portfolio, total operating expenses have been restated to reflect current fees. EXAMPLE - ------------------------------------------------------------------------------- An investor in a Portfolio would pay the following expenses on a $1,000 investment assuming (1) a 5% annual return and (2) redemption at the end of each time period:
1 YR. 3 YRS. 5 YRS. 10 YRS. ----- ------ ------ ------- International Equity $13.00 $41.00 $70.00 $155.00 Emerging Markets Equity $20.00 $61.00 --- --- International Fixed Income $10.00 $32.00 $55.00 $122.00 - --------------------------------------------------------------------------------------------------------------------------------
THE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN. The purpose of the expense table and example is to assist the investor in understanding the various costs and expenses that may be directly or indirectly borne by investors in Class A shares of the Portfolios. The information set forth in the foregoing table and example relates only to the Portfolios' Class A shares. Each Portfolio also offers Class D shares, which are subject to the same expenses, except that Class D shares bear sales charges and different distribution costs and additional transfer agent costs. A person who purchases shares through a financial institution may be charged separate fees by that institution. Additional information may be found under "The Manager and Shareholder Servicing Agent," "The Advisers," "The Sub-Advisers" and "Distribution." Long-term shareholders may eventually pay more than the economic equivalent of the maximum front-end sales charges otherwise permitted by the Rules of Fair Practice of the National Association of Securities Dealers, Inc. ("NASD"). ------------------------------------ At a meeting held on March 18, 1996, the Trustees eliminated the Trust's Rule 12b-1 Distribution Plan for Class A shares, and approved a Class A shareholder servicing plan that provides for shareholder servicing fees payable to the Distributor of up to .25% of average net assets. These new arrangements are to be effective as of April 15, 1996. Under this new plan, the Distributor may provide a broad range of shareholder and administrative services itself, or may enter into arrangements under which third parties provide such services and are compensated by the Distributor. As a result of this change, effective April 15, 1996, the following "Annual Operating Expenses" table replaces the table on page 4 of the Prospectus (as previously supplemented): 3 ANNUAL OPERATING EXPENSES (as a percentage of average net assets)
- ------------------------------------------------------------------------------------------------------------------------------------ INTERNATIONAL EQUITY EMERGING MARKETS INTERNATIONAL FIXED PORTFOLIO EQUITY PORTFOLIO INCOME PORTFOLIO --------- ---------------- ---------------- Management/Advisory Fees (after fee waiver and reimbursement)(1) .96% .95% .72% 12b-1 Fees None None None Total Other Expenses .32% 1.00% .28% Shareholder Servicing Expenses (after waiver) (2) .13% .00% .00% - ------------------------------------------------------------------------------------------------------------------------------------ Total Operating Expenses (after fee waiver and reimbursement)(3) 1.28% 1.95% 1.00% - ------------------------------------------------------------------------------------------------------------------------------------
(1) SEI Financial Management Corporation ("SFM"), in its capacity as Manager for each Portfolio, and certain of the advisers, have waived, on a voluntary basis, a portion of their fee, and the management/advisory fees shown reflect these voluntary waivers. SFM and the advisers each reserve the right to terminate its waiver at any time in its sole discretion. Absent such fee waiver, management/advisory fees would be .90% for the International Fixed Income Portfolio. For the Emerging Markets Equity Portfolio, SFM has agreed to waive its management fee, and, if necessary, pay other operating expenses of the Portfolio in an amount that operates to limit the total operating expenses of the Class A shares. Absent this fee waiver and expense reimbursement, management/advisory fees would be 1.70% for the Emerging Markets Equity Portfolio. For the International Equity Portfolio, management/advisory fees have been restated to reflect current fees. For the Emerging Markets Equity and International Fixed Income Portfolios, management/advisory fees have been restated to reflect reductions in fee waivers. (2) The Distributor has waived, on a voluntary basis, all or a portion of its shareholder servicing fee, and the Shareholder Servicing Fees shown reflect this waiver. The Distributor reserves the right to terminate its waiver at any time in its sole discretion. Absent such waiver, Shareholder Servicing Fees would be .25% for each of the Portfolios. (3) Absent the Manager's fee waivers and expense reimbursement, total operating expenses would be 2.70% for the Emerging Markets Equity Portfolio and 1.18% for the International Fixed Income Portfolio. Additional information may be found under "The Advisers," "The Sub- Advisers" and "The Manager and Shareholder Servicing Agent." For the International Equity Portfolio, total operating expenses have been restated to reflect current fees. EXAMPLE - -------------------------------------------------------------------------------- An investor in a Portfolio would pay the following expenses on a $1,000 investment assuming (1) a 5% annual return and (2) redemption at the end of each time period:
1 YR. 3 YRS. 5 YRS. 10 YRS. ----- ------ ------ ------- International Equity $13.00 $41.00 $70.00 $155.00 Emerging Markets Equity $20.00 $61.00 --- --- International Fixed Income $10.00 $32.00 $55.00 $122.00 - -------------------------------------------------------------------------------------------------------------------------------
THE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN. The purpose of the expense table and example is to assist the investor in understanding the various costs and expenses that may be directly or indirectly borne by investors in Class A shares of the Portfolios. The information set forth in the foregoing table and example relates only to the Portfolios' Class A shares. Each Portfolio also offers Class D shares, which are subject to the same expenses, except that Class D shares bear sales charges and different distribution costs and shareholder servicing fees and additional transfer agent costs. A person who purchases shares through a financial institution may be charged separate fees by that institution. Additional information may be found under "The Manager and Shareholder Servicing Agent," "The Advisers," "The Sub-Advisers" and "Distribution." ------------------------------------ The description of MG and SC in "The Sub-Advisers" section is replaced with the following: MG manages the assets of the International Equity Portfolio entrusted to it by SFM using its European, large-capitalization growth style. MG, a subsidiary of Morgan Grenfell Asset Management Limited, managed over $9.5 billion in assets as of December 31, 1994. Morgan Grenfell Asset Management Limited, a wholly-owned subsidiary of Deutsche Bank, A.G., a German financial services conglomerate, managed over $48 billion in assets as of December 31, 1994. MG has over 11 years experience in managing international portfolios for North American clients. Morgan Grenfell Asset Management employs more than 15 European investment professionals. MG attempts to exploit perceived inefficiencies present in the European markets with original research and an emphasis on stock selection. The principal address of MG is 20 Finsbury Circus, London, England, EC2M 1NB. Julian R. Johnston and Jeremy G. Lodwick share primary responsibility for the segment of the International Equity Portfolio managed by MG. Mr. Johnston has 20 years experience in European equity investment. Mr. Johnston joined MG in 1984, and is currently the head of the Morgan Grenfell Continental European Investment team. Mr. Lodwick has ten years experience in European equity investment. He joined MG in 1986, and was a UK equity research analyst before moving to New York where he was a member of the client liaison and marketing team for 5 years. 4 He returned to the London office in 1991 to manage MG's European equity portfolios. MG is entitled to a fee from SFM of .325% of the average monthly market value of assets of the International Equity Portfolio assigned to it. SC manages the Pacific Basin, large-capitalization growth and Japanese small-capitalization segments of the International Equity Portfolio. The Schroder Group has research resources throughout the Asian region, consisting of offices in Tokyo, Hong Kong, Singapore, Kuala Lumpur, Seoul, Taipei, Sydney, Bangkok, Shanghai, and Jakarta, staffed by 41 investment professionals. SC's investment process emphasizes individual stock selection and company research conducted by professionals at each local office which is integrated into SC's global research network by the manager of research in London. The principal address of SC is 33 Gutter Lane, London EC2V 8AS, England. John S. Ager, a Senior Vice President and Director of SC, serves as principal portfolio manager for the segment of the International Equity Portfolio managed by SC since December 15, 5995. Mr. Ager has been an international fund manager since 1981. Mr. Ager has over 20 years of experience in managing client accounts invested in Asian countries. SC is entitled to a fee from SFM of .50% of the first $100 million of the average monthly market value of assets managed, .30% of the next $50 million of such assets, and .20% of such assets in excess of $150 million. ------------------------------------ The first and second sentences of the third paragraph of "The Sub-Advisers - Acadian Asset Management, Inc." is replaced with the following: Acadian is entitled to a fee from SFM calculated on the basis of a percentage of the market value of the assets assigned to it. That fee, which is paid monthly, is based on an annual percentage rate of .325% of the first $150 million of the assets managed by Acadian, .25% of the next $150 million of such assets, and .20% of such assets in excess of $300 million. ------------------------------------ The first sentence of the second paragraph of "The Advisers - SEI Financial Management Corporation" section is replaced with the following: SFM is entitled to a fee, which is calculated daily and paid monthly, at an annual rate of .505% of the International Equity Portfolio's average daily net assets and 1.05% of the Emerging Markets Equity Portfolio's average daily net assets. ------------------------------------ In connection with the elimination of the Portfolios' Distribution Plan, the "Distribution" section on page 18 is replaced with the following: DISTRIBUTION AND SHAREHOLDER SERVICES. SEI Financial Services Company (the "Distributor"), a wholly-owned subsidiary of SEI, serves as each Portfolio's distributor pursuant to a distribution agreement with the Trust. The Portfolios have adopted a distribution plan for their Class D shares (the "Class D Plan") pursuant to Rule 12b-1 under the Investment Company Act of 1940, as amended (the "1940 Act"). The Portfolios have adopted a shareholder servicing plan for Class A shares (the "Service Plan") under which a shareholder servicing fee of up to .25% of average daily net assets attributable to Class A shares will be paid to the Distributor. Under the Service Plan, the Distributor may perform, or may compensate other service providers for performing, the following shareholder and administrative services: maintaining client accounts; arranging for bank wires; responding to client inquiries concerning services provided on investments; assisting clients in changing 5 dividend options, account designations and addresses; sub-accounting; providing information on share positions to clients; forwarding shareholder communications to clients; processing purchase, exchange and redemption orders; and processing dividend payments. Under the Service Plan, the Distributor may retain as a profit any difference between the fee it receives and the amount it pays to third parties. It is possible that an institution may offer different classes of shares to its customers and thus receive different compensation with respect to different classes. These financial institutions may also charge separate fees to their customers. The Trust may also execute brokerage or other agency transactions through the Distributor for which the Distributor may receive usual and customary compensation. In addition, the Distributor may, from time to time in its sole discretion, institute one or more promotional incentive programs, which will be paid by the Distributor from the sales charge it receives or from any other source available to it. Under any such program, the Distributor will provide promotional incentives, in the form of cash or other compensation, including merchandise, airline vouchers, trips and vacation packages, to all dealers selling shares of the Portfolios. Such promotional incentives will be offered uniformly to all dealers and predicated upon the amount of shares of the Portfolios sold by the dealer. ------------------------------------ At a meeting scheduled for April 30, 1996, Shareholders of the International Fixed Income Portfolio of the Trust will be asked to amend, reclassify or eliminate certain of the Portfolio's fundamental investment policies in order to reflect regulatory developments, provide the flexibility to adapt to developments in the securities markets, and to improve management efficiency by making the investment limitations as consistent as possible. In addition, the changes will minimize the need to call Shareholder meetings in the future in order to change certain investment limitations. At the same meeting, Shareholders of the International Fixed Income Portfolio will be asked to approve the selection of SEI Financial Management Corporation ("SFM") as Investment Adviser to this Portfolio and to approve the "Manager of Managers" structure wherein, upon the recommendation of SFM, the Board of Trustees will be able to appoint additional and replacement sub-advisers for the Portfolio without Shareholder approval. Apart from Shareholder approval, this change requires an order of exemption from the SEC before becoming operative, which order is expected to be issued in the near future. In connection with this change, Shareholders of the International Fixed Income Portfolio will be asked to approve the selection of the Portfolio's current investment adviser, Strategic Fixed Income, L.P., to serve as investment sub-adviser to the Portfolio for the same compensation from SFM that it currently receives from the Portfolio. PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE 6 SEI INTERNATIONAL TRUST INTERNATIONAL EQUITY PORTFOLIO EMERGING MARKETS EQUITY PORTFOLIO INTERNATIONAL FIXED INCOME PORTFOLIO SUPPLEMENT DATED APRIL 8, 1996 TO THE CLASS D PROSPECTUS DATED AUGUST 31, 1995 THIS SUPPLEMENT TO THE PROSPECTUS SUPERSEDES AND REPLACES ANY EXISTING SUPPLEMENTS TO THE PROSPECTUS. THIS SUPPLEMENT PROVIDES NEW AND ADDITIONAL INFORMATION BEYOND THAT CONTAINED IN THE PROSPECTUS, AND SHOULD BE READ IN CONJUNCTION WITH SUCH PROSPECTUS. At a meeting held on December 4-5, 1995, the Board of Trustees of the Trust voted to change the name of the Core International Equity Portfolio to the "International Equity Portfolio" effective January 1, 1996. ------------------------------------ At a Special Meeting of Shareholders held on March 15, 1996, Shareholders of the European Equity Portfolio and Pacific Basin Equity Portfolio, two other separately managed series of SEI International Trust (the "Trust"), approved an Agreement and Plan of Reorganization and Liquidation, relating to the European Equity and Pacific Basin Portfolios into the International Equity Portfolio, which Agreement provided for: (i) the transfer of substantially all of the assets and liabilities of the European Equity and Pacific Basin Equity Portfolios to the International Equity Portfolio in exchange for shares of the International Equity Portfolio; and (ii) the distribution of the International Equity Portfolio's shares so received to Shareholders of the European Equity and Pacific Basin Equity Portfolios in liquidation of those Portfolios. At the same Meeting, the Shareholders of the International Equity Portfolio approved the addition of Morgan Grenfell Investment Services Limited ("MG") and Schroder Capital Management International Limited ("SC") as investment sub-advisers to the International Equity Portfolio, and the respective investment sub-advisory agreements between SEI Financial Management Corporation ("SFM") and SC and MG relating to the International Equity Portfolio. Shareholders of the International Equity Portfolio also approved an Amended Investment Advisory Agreement between the International Equity Portfolio and SFM, which increased the advisory fee paid to SFM and an amended Investment Sub-Advisory Agreement between SFM and Acadian Asset Management, Inc. ("Acadian"), which increased the sub-advisory fee paid to Acadian. The transactions to be accomplished under the Agreement were completed on March 25, 1996. As a result, the European Equity and Pacific Basin Equity Portfolios were liquidated and are no longer operative. Accordingly, all references to those Portfolios in the Prospectus are deleted. As a result of these changes to the investment advisory structure of the International Equity Portfolio, the operating expenses of the International Equity Portfolio have changed. The following "Shareholder Transaction Expenses" table replaces the corresponding table on page 4 of the Prospectus: 7 SHAREHOLDER TRANSACTION EXPENSES (as a percentage of offering price)
- ------------------------------------------------------------------------------------------------------------------------------------ INTERNATIONAL EQUITY EMERGING MARKETS INTERNATIONAL FIXED PORTFOLIO EQUITY PORTFOLIO INCOME PORTFOLIO --------- ---------------- ---------------- Maximum Sales Charge Imposed on Purchases 5.00% 5.00% 4.50% Maximum Sales Charge Imposed on Reinvested Dividends None None None Redemption Fees(1) None None None - ------------------------------------------------------------------------------------------------------------------------------------ ANNUAL OPERATING EXPENSES (as a percentage of average net assets) - ------------------------------------------------------------------------------------------------------------------------------------ Management/Advisory Fees (after fee waiver and reimbursement)(2) .94% .80% .57% 12b-1 Fees(3) .40% .40% .40% Other Expenses .34% 1.15% .43% - ------------------------------------------------------------------------------------------------------------------------------------ Total Operating Expenses (after fee waiver and reimbursements)(4) 1.68% 2.35% 1.40% - ------------------------------------------------------------------------------------------------------------------------------------
(1) A charge, currently $10.00, is imposed on wires of redemption proceeds of the Portfolio's Class D shares. (2) SEI Financial Management Corporation ("SFM"), in its capacity as Manager of each Portfolio, has waived, on a voluntary basis, a portion of its management fee, and the management/advisory fees shown reflect this voluntary waiver. SFM reserves the right to terminate its waiver at any time in its sole discretion. Absent such fee waiver, management/advisory fees would be .96% for the International Equity Portfolio, and .90% for the International Fixed Income Portfolio. For the Emerging Markets Equity Portfolio, SFM has agreed to waive its management fee, and, if necessary, pay other operating expenses of the Portfolio in an amount that operates to limit the total operating expenses of the Class D shares. Absent this fee waiver and expense reimbursement, management/advisory fees would be 1.70% for the Emerging Markets Equity Portfolio. For the International Equity Portfolio, management/advisory fees have been restated to reflect current fees. (3) The 12b-1 fees shown reflect the current 12b-1 budget for compensation and for reimbursement of expenses. The maximum 12b-1 fees payable by the Class D shares of each Portfolio is .60%. (4) Absent the Manager's fee waiver and expense reimbursement, the total operating expenses would be 1.90% for the International Equity Portfolio, 3.45% for the Emerging Markets Equity Portfolio and 1.93% for the International Fixed Income Portfolio. Additional information may be found under "The Advisers," the "Sub-Advisers" and "The Manager and Shareholder Servicing Agent." For the International Equity Portfolio, total operating expenses have been restated to reflect current fees. EXAMPLE - -------------------------------------------------------------------------------- An investor in a Portfolio would pay the following expenses on a $1,000 investment assuming (1) the imposition of the maximum sales charge, (2) a 5% annual return and (3) redemption at the end of each time period:
1 YR. 3 YRS. 5 YRS. 10 YRS. ----- ------ ------ ------- International Equity $66 $100 $137 $239 Emerging Markets Equity $73 $120 International Fixed Income $59 $ 87 $118 $205 - ------------------------------------------------------------------------------------------------------------------------------------
THE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN. The purpose of the expenses table and example is to assist the investor in understanding the various costs and expenses that may be directly or indirectly borne by investors in Class D shares of each Portfolio. The information set forth in the foregoing table and example relates only to the Class D shares. Each Portfolio also offers Class A shares, which are subject to the same expenses, except that there are no sales charges, different distribution costs and no transfer agent costs. A person who purchases shares through an account with a financial institution may be charged separate fees by that institution. Additional information may be found under "The Manager and Shareholder Servicing Agent," "The Adviser," "The Sub-Advisers" and "Distribution." The rules of the Securities and Exchange Commission require that the maximum sales charge be reflected in the above table. However, certain investors may qualify for reduced sales charges. See "Purchase of Shares." Long-term shareholders may pay more than the economic equivalent of the maximum front-end sales charges otherwise permitted by the Rules of Fair Practice of the National Association of Securities Dealers, Inc. ("NASD"). ------------------------------------ At a meeting held on March 18, 1996, the Trustees reduced the payments available under the existing Rule 12b-1 Distribution Plan to an amount not to exceed .30% by eliminating the reimbursement component of the Plan. These new arrangements are to be effective as of April 15, 1996. Payments made under the Plan are characterized as compensation, and are not directly tied to distribution expenses incurred by the Distributor. As a result of this change, effective April 15, 1996, the following "Shareholder Transaction Expenses " table replaces the table on page 4 of the Prospectus (as previously supplemented): 8 SHAREHOLDER TRANSACTION EXPENSES (as a percentage of offering price)
- ------------------------------------------------------------------------------------------------------------------------------------ INTERNATIONAL EQUITY EMERGING MARKETS INTERNATIONAL FIXED PORTFOLIO EQUITY PORTFOLIO INCOME PORTFOLIO --------- ---------------- ---------------- Maximum Sales Charge Imposed on Purchases 5.00% 5.00% 4.50% Maximum Sales Charge Imposed on Reinvested Dividends None None None Redemption Fees(1) None None None - ------------------------------------------------------------------------------------------------------------------------------------ ANNUAL OPERATING EXPENSES (as a percentage of average net assets) - ------------------------------------------------------------------------------------------------------------------------------------ Management/Advisory Fees (after fee waiver and reimbursement)(2) .96% .95% .72% 12b-1 Fees (after waivers)(3) .25% .25% .25% Other Expenses .34% 1.15% .43% - ------------------------------------------------------------------------------------------------------------------------------------ Total Operating Expenses (after fee waiver and reimbursements)(4) 1.55% 2.35% 1.40% - ------------------------------------------------------------------------------------------------------------------------------------
(1) A charge, currently $10.00, is imposed on wires of redemption proceeds of the Portfolio's Class D shares. (2) SEI Financial Management Corporation ("SFM"), in its capacity as Manager of each Portfolio, has waived, on a voluntary basis, a portion of its management fee, and the management/advisory fees shown reflect this voluntary waiver. SFM reserves the right to terminate its waiver at any time in its sole discretion. Absent such fee waiver, management/advisory fees would be .90% for the International Fixed Income Portfolio. For the Emerging Markets Equity Portfolio, SFM has agreed to waive its management fee, and, if necessary, pay other operating expenses of the Portfolio in an amount that operates to limit the total operating expenses of the Class D shares. Absent this fee waiver and expense reimbursement, management/advisory fees would be 1.70% for the Emerging Markets Equity Portfolio. For the International Equity Portfolio, management/advisory fees have been restated to reflect current fees. For the Emerging Markets Equity and International Fixed Income Portfolios, management/advisory fees have been restated to reflect reductions in fee waivers. (3) The maximum 12b-1 fees payable by the Class D shares of each Portfolio is .30%. (4) Absent the Manager's fee waiver and expense reimbursement, the total operating expenses would be 1.60% for the International Equity Portfolio, 3.15% for the Emerging Markets Equity Portfolio and 1.63% for the International Fixed Income Portfolio. Additional information may be found under "The Advisers," the "Sub-Advisers" and "The Manager and Shareholder Servicing Agent." For the International Equity Portfolio, total operating expenses have been restated to reflect current fees. EXAMPLE - -------------------------------------------------------------------------------- An investor in a Portfolio would pay the following expenses on a $1,000 investment assuming (1) the imposition of the maximum sales charge, (2) a 5% annual return and (3) redemption at the end of each time period:
1 YR. 3 YRS. 5 YRS. 10 YRS. ----- ------ ------ ------- International Equity $65 $ 97 $130 $225 Emerging Markets Equity $73 $120 International Fixed Income $59 $ 87 $118 $205 - ------------------------------------------------------------------------------------------------------------------------------------
THE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN. The purpose of the expenses table and example is to assist the investor in understanding the various costs and expenses that may be directly or indirectly borne by investors in Class D shares of each Portfolio. A person who purchases shares through an account with a financial institution may be charged separate fees by that institution. The information set forth in the foregoing table and example relates only to the Class D shares. Each Portfolio also offers Class A shares, which are subject to the same expenses, except that there are no sales charges, different distribution costs and no transfer agent costs. A person who purchases shares through an account with a financial institution may be charged separate fees by that institution. Additional information may be found under "The Manager and Shareholder Servicing Agent," "The Adviser," "The Sub-Advisers" and "Distribution." The rules of the Securities and Exchange Commission require that the maximum sales charge be reflected in the above table. However, certain investors may qualify for reduced sales charges. See "Purchase of Shares." Long-term shareholders may pay more than the economic equivalent of the maximum front-end sales charges otherwise permitted by the Rules of Fair Practice of the National Association of Securities Dealers, Inc. ("NASD"). ------------------------------------ The description of MG and SC in "The Sub-Advisers" section is replaced with the following: MG manages the assets of the International Equity Portfolio entrusted to it by SFM using its European, large-capitalization growth style. MG, a subsidiary of Morgan Grenfell Asset Management Limited, managed over $9.5 billion in assets as of December 31, 1994. Morgan Grenfell Asset Management Limited, a wholly-owned subsidiary of Deutsche Bank, A.G., a German financial services conglomerate, managed over $48 billion in assets as of December 31, 1994. MG has over 11 years experience in managing international portfolios for North American clients. Morgan Grenfell Asset Management employs more than 15 European investment professionals. MG attempts to exploit perceived inefficiencies present in the European markets with original research and an emphasis on stock selection. The principal address of MG is 20 Finsbury Circus, London, England, EC2M 1NB. Julian R. Johnston and Jeremy G. Lodwick share primary responsibility for the segment of the International Equity Portfolio managed by MG. Mr. Johnston has 20 years experience in European equity investment. Mr. Johnston joined MG in 1984, and is currently the head of the Morgan Grenfell Continental European Investment team. Mr. Lodwick has ten years experience in European equity investment. He joined MG in 1986, and was a UK equity research analyst before moving to New York where he was a member of the client liaison and marketing team for 5 years. 9 He returned to the London office in 1991 to manage MG's European equity portfolios. MG is entitled to a fee from SFM of .325% of the average monthly market value of assets of the International Equity Portfolio assigned to it. SC manages the assets of the International Equity Portfolio entrusted to it by SFM using its Pacific Basin, large-capitalization growth and Japanese small-capitalization style. The Schroder Group has research resources throughout the Asian region, consisting of offices in Tokyo, Hong Kong, Singapore, Kuala Lumpur, Seoul, Taipei, Sydney, Bangkok, Shanghai, and Jakarta, staffed by 41 investment professionals. SC's investment process emphasizes individual stock selection and company research conducted by professionals at each local office which is integrated into SC's global research network by the manager of research in London. The principal address of SC is 33 Gutter Lane, London EC2V 8AS, England. John S. Ager, a Senior Vice President and Director of SC, serves as principal portfolio manager for the segment of the International Equity Portfolio managed by SC since December 15, 5995. Mr. Ager has been an international fund manager since 1981. Mr. Ager has over 20 years of experience in managing client accounts invested in Asian countries. SC is entitled to a fee from SFM of .50% of the first $100 million of the average monthly market value of assets managed, .30% of the next $50 million of such assets, and .20% of such assets in excess of $150 million. ------------------------------------ The first and second sentences of the third paragraph of "The Sub-Advisers - Acadian Asset Management, Inc." is replaced with the following: Acadian is entitled to a fee from SFM calculated on the basis of a percentage of the market value of the assets assigned to it. That fee, which is paid monthly, is based on an annual percentage rate of .325% of the first $150 million of the assets managed by Acadian, .25% of the next $150 million of such assets, and .20% of such assets in excess of $300 million. ------------------------------------ The first sentence of the second paragraph of "The Advisers - SEI Financial Management Corporation" section is replaced with the following: SFM is entitled to a fee, which is calculated daily and paid monthly, at an annual rate of .505% of the International Equity Portfolio's average daily net assets and 1.05% of the Emerging Markets Equity Portfolio's average daily net assets. ------------------------------------ In connection with the elimination of the reimbursement component of the Class D Rule 12b-1 Plan and the elimination of the Class A Plan, the "Distribution" section on page 22 is amended as follows: The second sentence of the first paragraph is amended to delete the reference to the Class A Plan. The following sentence is inserted at the end of the first paragraph: The Portfolios have adopted a shareholder servicing plan for their Class A shares (the "Class A Service Plan"). The second and third paragraphs are deleted. In addition, the first sentence of the fourth paragraph is deleted and the following sentence is inserted: The Class D Plan provides for payments to the Distributor at an annual rate of .30% of the Portfolios' average daily net assets attributable to Class D shares. ------------------------------------ 10 At a meeting scheduled for April 30, 1996, Shareholders of the International Fixed Income Portfolio of the Trust will be asked to amend, reclassify or eliminate certain of the Portfolio's fundamental investment policies in order to reflect regulatory developments, provide the flexibility to adapt to developments in the securities markets, and to improve management efficiency by making the investment limitations as consistent as possible. In addition, the changes will minimize the need to call Shareholder meetings in the future in order to change certain investment limitations. At the same meeting, Shareholders of the International Fixed Income Portfolio will be asked to approve the selection of SEI Financial Management Corporation ("SFM") as Investment Adviser to this Portfolio and to approve the "Manager of Managers" structure wherein, upon the recommendation of SFM, and subject to receipt by the Trust of exemptive relief from the SEC, the Board of Trustees will be able to appoint additional and replacement sub-advisers for the Portfolio without Shareholder approval. Apart from Shareholder approval, this change requires an order of exemption from the SEC before becoming operative, which order is expected to be issued in the near future. In connection with this change, Shareholders of the International Fixed Income Portfolio will be asked to approve the selection of the Portfolio's current investment adviser, Strategic Fixed Income, L.P., to serve as investment sub-adviser to the Portfolio for the same compensation from SFM that it currently receives from the Portfolio. ------------------------------------ The following sentence is inserted after the first sentence of the second paragraph in the "Investment Objectives and Policies - Emerging Markets Equity" section on page 10 of the Prospectus: Under normal market conditions, the Portfolio maintains investments in at least six emerging market countries and does not invest more than 35% of its total assets in any one emerging market country. ------------------------------------ PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE -----END PRIVACY-ENHANCED MESSAGE-----