-----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, MLNDBQM/yM5Pj1msSUEUtPkwr3u/7vELlayhk/SS/zOwnTikERZJLkJZY89Lc7m3 0u2cDHAiDsZZ59bi7mv64w== 0000935069-03-001630.txt : 20031208 0000935069-03-001630.hdr.sgml : 20031208 20031208132854 ACCESSION NUMBER: 0000935069-03-001630 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 6 CONFORMED PERIOD OF REPORT: 20030930 FILED AS OF DATE: 20031208 EFFECTIVENESS DATE: 20031208 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SEI INSTITUTIONAL INTERNATIONAL TRUST CENTRAL INDEX KEY: 0000835597 STATE OF INCORPORATION: MA FISCAL YEAR END: 0228 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-05601 FILM NUMBER: 031042129 BUSINESS ADDRESS: STREET 1: SEI INVESTMENTS STREET 2: ONE FREEDOM VALLEY DRIVE CITY: OAKS STATE: PA ZIP: 19456 BUSINESS PHONE: 8003425734 MAIL ADDRESS: STREET 1: SEI INVESTMENTS ATTN: CAREN ROSCH STREET 2: 530 E SWEDESFORD RD CITY: WAYNE STATE: PA ZIP: 19087-1693 FORMER COMPANY: FORMER CONFORMED NAME: SEI INTERNATIONAL TRUST DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: SEI WEALTH MANAGEMENT TRUST DATE OF NAME CHANGE: 19900129 N-CSR 1 siit.txt SIIT AR 9_30_03 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 -------- FORM N-CSR -------- CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES INVESTMENT COMPANY ACT FILE NUMBER 811-5601 SEI INSTITUTIONAL INTERNATIONAL TRUST (Exact name of registrant as specified in charter) -------- One Freedom Valley Drive Oaks, PA 19456 (Address of principal executive offices) (Zip code) SEI Investments One Freedom Valley Drive Oaks, PA 19456 (Name and address of agent for service) REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: 1-800-342-5734 DATE OF FISCAL YEAR END: SEPTEMBER 30, 2003 DATE OF REPORTING PERIOD: SEPTEMBER 30, 2003 ITEM 1. REPORTS TO STOCKHOLDERS. [BACKGROUND ART OMITTED] [SEI LOGO OMITTED] Annual Report as of September 30, 2003 SEI Institutional International Trust International Equity Fund Emerging Markets Equity Fund International Fixed Income Fund Emerging Markets Debt Fund TABLE OF CONTENTS - ------------------------------------------------------------- Management's Discussion and Analysis of Fund Performance 1 - ------------------------------------------------------------- Schedules of Investments 8 - ------------------------------------------------------------- Statements of Assets and Liabilities 28 - ------------------------------------------------------------- Statements of Operations 29 - ------------------------------------------------------------- Statements of Changes in Net Assets 30 - ------------------------------------------------------------- Financial Highlights 32 - ------------------------------------------------------------- Notes to Financial Statements 33 - ------------------------------------------------------------- Report of Independent Auditors 40 - ------------------------------------------------------------- Trustees and Officers of the Trust 41 - ------------------------------------------------------------- Notice to Shareholders 44 - ------------------------------------------------------------- MANAGEMENT'S DISCUSSION AND ANALYSIS OF FUND PERFORMANCE SEI INSTITUTIONAL INTERNATIONAL TRUST -- SEPTEMBER 30, 2003 International Equity Fund Objective The International Equity Fund seeks to provide long-term capital appreciation by investing primarily in a diversified portfolio of equity securities of foreign issuers. Strategy The International Equity Fund invests primarily in common stocks and other equity securities of foreign companies. The Fund primarily invests in companies located in developed countries, but may also invest in companies located in emerging markets. The Fund uses a multi-manager approach, relying upon a number of sub-advisers with differing investment philosophies to manage portions of the Fund's portfolio under the general supervision of SEI Investments Management Corporation ("SIMC"). The Fund is diversified as to issuers, market capitalization, industry and country. Analysis International equities realized significant gains during the year ended September 30, 2003. Overall, the non-U.S. developed equity markets, as measured by the Morgan Stanley MSCI EAFE Index, gained 26% in U.S. dollar terms during the period. Every developed equity market as well as each sector posted positive returns. Traditional high beta sectors, such as information technology and telecommunications, were the strongest performers with returns over 45% during the past year. The more defensive sectors, such as energy and consumer staples, were the weakest performers after strong performance in the previous year. The International Equity Fund underperformed the Morgan Stanley MSCI EAFE Index during the period advancing 18.91%. Weak stock selection within both the information technology and telecommunication sectors led to the negative relative performance. Within both sectors, as well as within the broad market, lower quality names were the strongest performers for the year. The Fund's sub-advisers maintained a low exposure to these lesser quality names and continue to buy higher quality franchises with the view that these names will be the strongest performers over an extended period of time. Several of the underperforming sub-advisers of the past year were replaced in June 2003 as the Fund adjusted its multi-manager lineup. The new multi-manager lineup consists of five managers all with broad-based international equity mandates that allow them to invest in either Europe or the Pacific Basin. International Equity Fund AVERAGE ANNUAL TOTAL RETURN (1) - -------------------------------------------------------------------------------- Annualized Annualized Annualized One Year 3 Year 5 Year 10 Year Return Return Return Return - -------------------------------------------------------------------------------- Class A 18.91% -11.53% -0.11% 2.02% - -------------------------------------------------------------------------------- Class I 18.65% -11.59% -0.16% 2.00% - -------------------------------------------------------------------------------- [LINE CHART OMITTED] Comparison of Change in the Value of a $100,000 Investment in the International Equity Fund, Class A and Class I, versus the Morgan Stanley MSCI EAFE Index Plot Points follow International International Morgan Stanley Equity Fund Equity Fund MSCI EAFE Class A Class I Index 9/30/93 $100,000 $100,000 $100,000 9/30/94 106,320 106,320 109,840 9/30/95 110,828 110,828 116,211 9/30/96 121,745 121,745 126,228 9/30/97 134,601 134,601 141,615 9/30/98 122,823 122,823 129,805 9/30/99 169,324 169,324 169,979 9/30/00 176,351 176,351 175,384 9/30/01 121,947 121,947 125,347 9/30/02 102,691 102,691 105,881 9/30/03 122,110 121,843 133,420 1 For the period ended September 30, 2003. Past performance is no indication of future performance. Class I Shares were offered beginning on January 4, 2002. The Performance shown for the Class I Shares prior to such date is synthetic performance derived from the performance of Class A Shares. Class A Shares were offered beginning December 30, 1989. Returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The returns for certain periods reflect fee waivers and/or reimbursements in effect for that period; absent fee waivers and reimbursements, performance would have been lower. - -------------------------------------------------------------------------------- SEI Institutional International Trust / Annual Report / September 30, 2003 1 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FUND PERFORMANCE SEI INSTITUTIONAL INTERNATIONAL TRUST -- SEPTEMBER 30, 2003 Emerging Markets Equity Fund Objective The Emerging Markets Equity Fund seeks to provide long-term capital appreciation by investing primarily in a diversified portfolio of equity securities of emerging market issuers. Strategy The Emerging Markets Equity Fund invests primarily in common stocks and other equity securities of foreign companies located in emerging market countries. The Fund uses a multi-manager approach, relying upon a number of sub-advisers with differing investment philosophies to manage portions of the Fund's portfolio under the general supervision of SEI Investments Management Corporation ("SIMC"). The Fund is diversified as to issuers, market capitalization, industry and country. Analysis A more favorable global economic and geopolitical environment helped emerging markets sustain an impressive 45.5% rally during the year ending September 30, 2003, as measured by the Morgan Stanley MSCI Emerging Markets Free Index. The end of the war in Iraq combined with the beginning of a new road map to peace in the Middle East removed some of the geopolitical uncertainty in global markets. Aggressive monetary policy in the U.S. and around the world continued to inject liquidity and fuel investors' appetite for risk. Early signs of economic recovery helped improve sentiment for equities in general and emerging markets in particular as a leveraged play into global economic growth. The rally was broad-based, benefiting all three emerging regions and 26 markets. While every country except the Philippines posted double-digit gains, Brazil and Thailand were among the strongest performers, driven in both cases by strong domestic conditions in addition to a more favorable global environment. From a sector perspective, materials posted one of the strongest returns, as the sector is a clear beneficiary of the cyclical recovery. The Fund lagged the benchmark during the period, due mainly to a more defensive positioning. The Fund returned 37.83%, while the Morgan Stanley MSCI EMF Index advanced 45.58%. An overweight position in Brazil added value as the country rallied on the back of a continuation of market friendly policies and further progress in the reform agenda after the new administration took over at the beginning of the year. An overweight position to India and Thailand also added to performance as both markets were able to maintain momentum in their domestic economies, somewhat isolated from the SARS outbreak that affected the rest of Asia. Industry allocation detracted value from the Fund as our sub-advisers were defensively positioned with an underweight to technology and materials, and an overweight to consumer staples and telecoms. Despite their awareness of the liquidity-driven rally that benefited cyclical sectors, they could not justify a broad sector overweight based on weak company fundamentals and unattractive valuations. However, the sub-advisers were able to find selective opportunities within technology and materials. India and South Africa were additional areas of strength in stock selection as our sub-advisers were able to identify companies that benefited from attractive valuations and growth opportunities based on either industry developments or company specific restructuring efforts. - -------------------------------------------------------------------------------- 2 SEI Institutional International Trust / Annual Report / September 30, 2003 Emerging Markets Equity Fund AVERAGE ANNUAL TOTAL RETURN (1) - -------------------------------------------------------------------------------- Annualized Annualized Annualized One Year 3 Year 5 Year Inception Return Return Return to Date - -------------------------------------------------------------------------------- Class A 37.83% -0.58% 7.97% -1.03% - -------------------------------------------------------------------------------- [LINE CHART OMITTED] Comparison of Change in the Value of a $100,000 Investment in the Emerging Markets Equity Fund, versus the Morgan Stanley MSCI Emerging Markets Free Index, and the IFC Investable Composite Index Plot Points follow Emerging Markets Morgan Stanley IFC Investable Equity MSCI Emerging Composite Fund Markets Free Index Index 1/31/95 $100,000 $100,000 $100,000 9/30/95 106,507 107,547 106,691 9/30/96 114,644 113,150 115,920 9/30/97 126,625 120,572 122,110 9/30/98 61,502 62,927 65,109 9/30/99 91,164 98,493 102,208 9/30/00 91,811 98,897 101,687 9/30/01 60,742 66,103 69,421 9/30/02 65,468 71,358 78,266 9/30/03 90,234 103,883 114,636 1 For the period ended September 30, 2003. Past performance is no indication of future performance. Class A Shares were offered beginning January 17, 1995. Benchmarkreturns are for the period beginning January 31, 1995. Returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The returns for certain periods reflect fee waivers and/or reimbursements in effect for that period; absent fee waivers and reimbursements, performance would have been lower. - -------------------------------------------------------------------------------- SEI Institutional International Trust / Annual Report / September 30, 2003 3 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FUND PERFORMANCE SEI INSTITUTIONAL INTERNATIONAL TRUST -- SEPTEMBER 30, 2003 International Fixed Income Fund Objective The International Fixed Income Fund seeks to provide capital appreciation and current income through investments in fixed income securities of non-U.S. dollar denominated issues. The Fund also seeks to provide U.S. based investors with a vehicle to diversify and enhance the returns of the domestic fixed income portion of their portfolios. The Fund invests primarily in investment-grade, non-U.S. dollar denominated obligations. Although there are no restrictions on the Fund's overall duration, under normal conditions it is expected to range between four and six years. Strategy The International Fixed Income Fund is managed against a broad aggregate index inclusive of sovereign, mortgage and corporate securities. The portfolio will seek to add value through a number of diversified, balanced and uncorrelated positions, however the majority of the tracking error and expected value added will be derived from country and currency positions over the long-term. Country and currency allocations are made separately. As a result, the Fund's currency exposure may differ from its underlying bond holdings. Under normal circumstances, the Fund intends to be diversified across 6 to 12 countries, across the three major trading blocs: North America, Europe, and the Pacific Basin. Depending upon the relative fundamental and technical views, each trading bloc is over or underweighted relative to the Fund's benchmark index. Currency exposure is actively managed to maximize return and control risk through the use of forward currency contracts and cross-currency hedging techniques. Analysis Fixed income returns over the period were fairly subdued, however strong returns were achieved by the International Fixed Income Fund due to the weakness in the dollar. In Europe, long-term bond yields ended the period almost unchanged from where they started, but short-term rates were significantly lower as the European Central Bank cut rates on three occasions by a total of 1.25%. Weak economic growth in Germany, France and Italy were the primary reasons for this. In the UK, yields were slightly higher over the period despite two easings by the Bank of England by a total of 0.50%. Relatively stronger economic growth in the UK was the reason for the underperformance of the UK bond market relative to Europe. In Japan, yields also rose over the year, however this masked a substantial rally in bonds until June 2003, as ten year bonds hit a low of almost 0.40% before selling off substantially to finish the period at 1.40%. An improvement in the global and Japanese growth outlook, and a recovery in Japanese equity markets were the catalyst for the sell-off. The dominant influence on returns for the period, however, came from a weaker U.S. dollar. The U.S. dollar fell approximately 18% against the euro, 8% against the Japanese yen and 6% against the pound sterling. For the fiscal year ended September 30, 2003, the Fund marginally underperformed the Lehman Global Aggregate (ex-US) Index, returning 17.05% to the benchmark's 18.70% advance. An overweight position to Hungary and Poland detracted from returns as the Hungarian government implemented a surprise devaluation of their currency and were then forced to raise rates by 3.00% in an attempt to support the spiraling currency as foreign investors retreated from the market. Additionally, a long European interest rate position in July 2003 detracted from returns as rates rose during the month. - -------------------------------------------------------------------------------- 4 SEI Institutional International Trust / Annual Report / September 30, 2003 International Fixed Income Fund AVERAGE ANNUAL TOTAL RETURN (1) - -------------------------------------------------------------------------------- Annualized Annualized Annualized One Year 3 Year 5 Year 10 Year Return Return Return Return - -------------------------------------------------------------------------------- Class A 17.05% 9.49% 3.20% 5.50% - -------------------------------------------------------------------------------- [LINE CHART OMITTED] Comparison of Change in the Value of a $100,000 Investment in the SEI International Fixed Income Fund, versus the Lehman Global Aggregate Ex-U.S. Index Plot Points follow International Lehman Global Fixed Income Aggregate Ex-U.S. Fund Index 9/30/93 $100,000 $100,000 9/30/94 103,330 104,840 9/30/95 123,851 124,110 9/30/96 128,223 132,686 9/30/97 129,711 132,234 9/30/98 145,886 149,875 9/30/99 143,902 145,963 9/30/00 130,116 131,819 9/30/01 134,227 137,131 9/30/02 145,905 151,228 9/30/03 170,782 179,508 1 For the period ended September 30, 2003. Past performance is no indication of future performance. Class A Shares were offered beginning September 1, 1993. Returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The returns for certain periods reflect fee waivers and/or reimbursements in effect for that period; absent fee waivers and reimbursements, performance would have been lower. - -------------------------------------------------------------------------------- SEI Institutional International Trust / Annual Report / September 30, 2003 5 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FUND PERFORMANCE SEI INSTITUTIONAL INTERNATIONAL TRUST -- SEPTEMBER 30, 2003 Emerging Markets Debt Fund Objective The Emerging Markets Debt Fund seeks to maximize total return from a portfolio consisting of primarily high yield, below-investment grade fixed income securities from emerging markets of foreign countries. The Fund also seeks to provide U.S.-based investors with a vehicle to diversify and enhance the returns of the domestic fixed income portion of their portfolios. Under normal circumstances, the Fund is anticipated to be invested primarily in U.S. dollar-denominated emerging debt. Strategy Structuring and managing the Emerging Markets Debt Fund entails a multi-step process. First, an internal assessment of country risk is compared with the market's pricing of country risk to determine relative value opportunities. The output determines which countries are 1) "core" holdings which have the strongest economic/political/debt attributes, 2) "trading" countries which present more opportunistic value, and 3) countries "not currently suitable" for investment. Under normal circumstances, the Fund will be diversified across 25-30 countries. The next step in the process determines relative value amongst sectors within a country, and security selection within the sectors. The final step incorporates a disciplined sell process through continual risk/reward analysis across, and within, emerging debt countries. U.S. interest-rate risk relative to the benchmark is controlled through the maintenance of a tightly constrained U.S. Treasury duration. Excess return is captured through active management of the sovereign spread component relative to the benchmark. Analysis Emerging markets debt turned in an incredibly strong year, as improving country fundamentals, high oil prices, historically low levels of interest rates in the United States and huge inflows into the asset class drove bond prices higher. The biggest single story in emerging markets debt markets during the past 12 months was the rapid ascent of newly elected Brazilian President Lula, who implemented key reforms and calmed a very nervous market. Russia also had a good year as President Putin similarly implemented key reforms which should help the country going forward. A steady climb in oil prices was viewed as favorable by investors as oil-exporting countries benefited, and were able to increase reserves. Russia, Ecuador, Venezuela, Algeria, Qatar and Mexico were among some of the emerging countries that reaped the benefit of escalating oil prices. Emerging market spreads tightened 556 basis points from the previous period, and ended the year at 486 basis points over comparable U.S. Treasuries, to yield 8.61% -- a record low for the market. The Emerging Markets Debt Fund returned 49.15% for the fiscal year ended September 30, 2003, outperforming the J.P. Morgan Emerging Markets Global Bond Index return of 38.77%. In prior years, the Fund's return had been compared to the J.P. Morgan Emerging Markets Plus Bond Index but the Adviser believes that the J.P. Morgan Emerging Markets Global Bond Index better represents the Fund's investment strategy. The Fund's outperformance can, in part be attributed to its overweight to Brazilian bonds which returned 111%. The Fund's overweight to Ecuador was also a large positive contributor to performance for the fiscal year. Ecuador bonds returned over 88%. The country is a large oil exporter and the high levels of oil prices have allowed it to increase reserves and stay current on debt, which further improves the country from a fundamental standpoint. Amid the strong market environment, higher quality countries underperformed the broader market as investors looked to take on additional risk. Poland, China, Qatar and South Korea all underperformed during the year due to their higher quality stature. The Fund is underweight in all three countries which added to relative performance. Given the outlook that fundamentals will continue to improve for most emerging market debt countries, and that increased demand for emerging market debt will be sustained, the Fund will continue to maintain a neutral spread duration and invest in those countries that exhibit the ability to service their debt and are enacting positive reforms. - -------------------------------------------------------------------------------- 6 SEI Institutional International Trust / Annual Report / September 30, 2003 Emerging Markets Debt Fund AVERAGE ANNUAL TOTAL RETURN (1) - -------------------------------------------------------------------------------- Annualized Annualized Annualized One Year 3 Year 5 Year Inception Return Return Return to Date - -------------------------------------------------------------------------------- Class A 49.15% 16.84% 21.79% 10.56% - -------------------------------------------------------------------------------- [LINE CHART OMITTED] Comparison of Change in the Value of a $100,000 Investment in the SEI Emerging Markets Debt Fund, versus the J.P. Morgan EMBI Global Index, and the J.P. Morgan EMBI Plus Index Plot Points follow Emerging J.P. Morgan J.P. Morgan Markets EMBI Global EMBI Plus Debt Fund Index Index 6/30/97 $100,000 $100,000 $100,000 9/30/97 106,198 106,500 106,908 9/30/98 69,984 80,674 79,860 9/30/99 91,785 100,407 98,228 9/30/00 117,549 125,408 125,771 9/30/01 123,062 129,572 127,997 9/30/02 125,707 130,194 126,538 9/30/03 187,493 175,801 177,393 1 For the period ended September 30, 2003. Past performance is no indication of future performance. Class A Shares were offered beginning June 29, 1997. Benchmark returns are for the period beginning June 30, 1997. Returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The returns for certain periods reflect fee waivers and/or reimbursements in effect for that period; absent fee waivers and reimbursements, performance would have been lower. - -------------------------------------------------------------------------------- SEI Institutional International Trust / Annual Report / September 30, 2003 7 SCHEDULE OF INVESTMENTS International Equity Fund September 30, 2003 - --------------------------------------------------------------- Market Value Description Shares ($ Thousands) - --------------------------------------------------------------- COMMON STOCK -- 97.8% AUSTRALIA -- 4.3% Alumina 524,138 $ 1,809 Amcor 1,037,500 6,109 AMP (A) 501,443 2,260 Australia & New Zealand Banking Group 357,100 4,339 BHP Billiton (A) 2,504,497 17,901 Brambles Industries (A) 82,500 262 Foster's Group (A) 1,114,825 3,373 National Australia Bank (A) 532,971 11,111 Newcrest Mining (A) 1,097,100 8,139 News Corp (A) 2,157,585 17,554 QBE Insurance Group (A) 1,125,493 7,587 Telstra (A) 2,646,211 8,490 Westpac Banking 277,500 3,043 WMC Resources* 828,458 2,478 Woolworths 399,500 3,169 ---------- 97,624 ---------- AUSTRIA -- 0.1% OMV 18,100 2,167 ---------- BELGIUM -- 0.4% AGFA-Gevaert 104,000 2,507 Delhaize Group (A) 53,300 2,173 Fortis 144,510 2,455 KBC Bancassurance Holding 55,700 2,121 ---------- 9,256 ---------- BRAZIL -- 0.7% Cia de Bebidas das Americas 259,100 5,609 Cia Vale do Rio Doce ADR 71,400 2,776 Petroleo Brasileiro 312,100 6,632 ---------- 15,017 ---------- CANADA -- 2.2% Abitibi-Consolidated (A) 254,200 1,786 Alcan 36,900 1,433 Bank of Nova Scotia 281,300 13,154 BCE (A) 194,100 4,193 Bombardier (A) 972,700 4,087 Inco* 33,300 925 Magna International, Class A 36,900 2,666 MI Developments, Class A* 16,550 380 Petro-Canada 71,100 2,766 Research In Motion* 170,700 6,521 Royal Bank of Canada 63,500 2,797 Suncor Energy 85,000 1,570 - --------------------------------------------------------------- Market Value Description Shares ($ Thousands) - --------------------------------------------------------------- TELUS 125,700 $ 1,970 Thomson (A) 196,600 5,960 ---------- 50,208 ---------- CHINA -- 0.2% Huaneng Power International 3,979,500 5,447 ---------- CZECH REPUBLIC -- 0.3% Komercni Banka GDR 246,900 7,012 ---------- DENMARK -- 0.6% Danisco 85,554 3,220 Danske Bank 110,300 2,102 Novo-Nordisk 201,800 7,438 ---------- 12,760 ---------- FINLAND -- 1.1% Fortum 277,400 2,400 Nokia 1,319,398 20,312 UPM-Kymmene (A) 105,600 1,770 ---------- 24,482 ---------- FRANCE -- 9.5% Accor 45,300 1,668 Air Liquide 21,987 3,106 Alcatel (A)* 277,900 3,291 Aventis 503,997 26,148 AXA (A) 720,400 12,140 BNP Paribas 353,415 17,327 Bouygues 172,700 4,547 Carrefour 29,600 1,489 Cie Generale D'Optique Essilor International 43,400 1,877 Credit Agricole 70,000 1,364 France Telecom (A)* 481,926 11,084 Groupe Danone 171,215 26,120 L'Oreal 24,000 1,639 Orange* 140,200 1,429 Pechiney (A) 20,100 1,106 Pernod-Ricard 56,500 5,349 Peugeot 69,100 2,936 Renault 105,800 6,259 Sanofi-Synthelabo 261,840 15,917 Schneider Electric 60,700 3,146 Societe Assurances Generales de France 110,900 5,198 Societe Generale 115,646 7,704 Thomson (A) 55,800 972 Total 258,532 39,019 Total ADR 67,600 5,124 Vinci 79,200 5,705 Vivendi Universal (A)* 214,500 3,797 ---------- 215,461 ---------- - -------------------------------------------------------------------------------- 8 SEI Institutional International Trust / Annual Report / September 30, 2003 - --------------------------------------------------------------- Market Value Description Shares ($ Thousands) - --------------------------------------------------------------- GERMANY -- 5.9% Allianz 35,900 $ 3,169 Altana 99,800 6,368 AMB Generali Holding 32,000 1,901 BASF 213,400 9,369 Continental 117,400 3,418 DaimlerChrysler (A) 556,400 19,529 Deutsche Bank 58,400 3,554 Deutsche Telekom (A)* 218,751 3,169 E.ON 121,056 5,907 Epcos (A)* 29,100 488 Fraport* 83,600 2,263 Hannover Rueckversicherung 99,500 2,651 HeidelbergCement* 42,300 1,552 Infineon Technologies* 110,086 1,438 Merck KGaA 77,700 2,505 Metro 157,100 5,719 Muenchener Rueckversicherungs (A) 50,107 4,978 SAP 83,900 10,247 SAP ADR 4,900 149 Siemens 577,300 34,381 ThyssenKrupp 79,000 1,060 TUI (A) 86,500 1,442 Volkswagen 199,342 8,958 ---------- 134,215 ---------- GUERNSEY -- 0.3% Amdocs* 320,400 6,023 ---------- HONG KONG -- 1.5% Cheung Kong Holdings 333,500 2,638 China Mobile 469,000 1,235 Denway Motors (A) 10,240,900 6,215 Esprit Holdings 2,352,100 7,153 Hang Lung Properties (A) 1,652,000 2,091 Hang Seng Bank 192,800 2,365 Hongkong Land Holdings 2,240,215 3,562 Hutchison Whampoa 176,200 1,286 Johnson Electric Holdings 1,250,000 1,921 Li & Fung 1,400,000 2,224 Sun Hung Kai Properties 181,900 1,474 Swire Pacific 233,300 1,377 ---------- 33,541 ---------- IRELAND -- 0.7% Allied Irish Banks 139,400 2,045 Anglo Irish Bank 810,300 8,748 Bank of Ireland 170,900 2,050 CRH 132,057 2,356 ---------- 15,199 ---------- - --------------------------------------------------------------- Market Value Description Shares ($ Thousands) - --------------------------------------------------------------- ISRAEL -- 0.1% Teva Pharmaceutical Industries 42,300 $ 2,417 ---------- ITALY -- 3.2% Assicurazioni Generali 33,000 745 Banca Popolare di Milano 854,000 3,978 Enel (A) 1,773,300 11,028 ENI-Ente Nazionale Idrocarburi 1,280,267 19,561 Parmalat Finanziaria (A) 845,000 2,652 Sanpaolo IMI 920,500 9,176 Snam Rete Gas 1,335,000 5,146 Telecom Italia* 1,859,710 4,581 Telecom Italia RNC* 4,944,869 8,413 UniCredito Italiano 1,497,723 7,081 ---------- 72,361 ---------- JAPAN -- 21.7% Acom 28,200 1,265 Advantest 37,300 2,474 Aeon 189,400 4,984 Alps Electric (A) 382,000 6,196 Asahi Kasei (A) 305,000 1,149 Asatsu-DK 73,800 1,714 Bandai (A) 128,100 3,268 Bandai - New 128,100 3,268 Canon (A) 714,682 34,930 Central Japan Railway 801 6,482 Chugai Pharmaceutical 104,000 1,297 Dai Nippon Printing (A) 561,000 7,693 Daiichi Pharmaceutical (A) 103,700 1,680 Daito Trust Construction (A) 20,400 543 Daiwa House Industry 195,000 1,779 Daiwa Securities Group (A) 1,156,000 7,813 Fuji Photo Film 1,021,000 29,977 Fuji Television Network 1,006 4,908 Fujitsu (A)* 1,667,000 8,714 Hirose Electric 54,700 5,606 Hitachi (A) 3,815,000 21,173 Honda Motor (A) 137,200 5,490 Hoya 38,400 2,973 Index 807 3,612 Itochu 225,000 697 Japan Airlines System* 261,000 731 Japan Telecom Holdings 629 1,858 Japan Tobacco (A) 673 4,398 JFE Holdings 60,000 1,310 Kansai Electric Power (A) 122,200 2,087 Kao 148,000 3,126 KDDI 1,655 8,385 Keyence 500 106 Kyocera 145,700 8,608 Kyushu Electric Power (A) 36,400 598 - -------------------------------------------------------------------------------- SEI Institutional International Trust / Annual Report / September 30, 2003 9 SCHEDULE OF INVESTMENTS International Equity Fund (Continued) September 30, 2003 - --------------------------------------------------------------- Market Value Description Shares ($ Thousands) - --------------------------------------------------------------- Lawson 98,200 $ 3,288 Matsushita Electric Industrial (A) 1,392,000 16,759 Millea Holdings 1,911 21,554 Mitsubishi (A) 289,000 2,476 Mitsubishi Estate (A) 1,304,000 12,315 Mitsubishi Heavy Industries (A) 445,000 1,291 Mitsubishi Motors (A)* 613,000 1,438 Mitsubishi Tokyo Financial Group 113 713 Mitsui Fudosan (A) 264,000 2,339 Mitsui OSK Lines (A) 2,579,000 8,703 Mitsui Sumitomo Insurance 926,000 6,731 Murata Manufacturing (A) 37,900 1,954 NEC (A)* 1,004,000 7,549 Nidec (A) 18,000 1,494 Nikko Cordial 349,000 1,856 Nikon (A)* 582,000 8,075 Nintendo (A) 19,300 1,617 Nippon Meat Packers 226,000 2,513 Nippon Steel 785,000 1,398 Nippon Telegraph & Telephone 2,119 9,598 Nissan Motor (A) 3,119,000 33,643 Nissin Food Products 1,100 26 Nitto Denko 77,500 3,351 Nomura Holdings 175,000 2,820 NTT DoCoMo (A) 478 1,168 OJI Paper (A) 76,000 424 ORIX (A)* 41,600 3,251 Promise (A) 125,550 5,507 Rohm 87,500 11,357 Sankyo (A) 504,600 7,358 Sekisui House (A) 789,000 7,133 Sharp (A) 19,000 278 Shimamura 17,300 1,216 Shionogi 270,000 4,689 SMC 14,900 1,571 Sony (A) 496,400 17,329 Stanley Electric (A) 365,000 6,534 Sumitomo 223,000 1,329 Sumitomo Chemical (A) 228,000 831 Sumitomo Electric Industries (A) 846,000 7,043 Sumitomo Forestry 204,000 1,419 Sumitomo Mitsui Financial Group (A) 835 3,363 Suzuki Motor 250,000 3,699 Takeda Chemical Industries (A) 75,000 2,732 Tanabe Seiyaku 119,000 998 TDK 16,100 955 Tohoku Electric Power (A) 28,300 444 Tokyo Electric Power (A) 142,600 3,051 Tokyo Electron (A) 110,700 7,353 Tokyo Gas (A) 1,366,000 4,536 Toppan Printing (A) 431,398 3,557 Toray Industries (A) 689,000 2,473 Tostem Inax Holding (A) 68,000 1,212 - --------------------------------------------------------------- Market Value Description Shares ($ Thousands) - --------------------------------------------------------------- Toyo Seikan Kaisha 129,000 $ 1,434 Toyota Motor (A) 244,700 7,184 UFJ Holdings (A)* 800 3,144 UNY 115,000 1,241 Yahoo Japan* 162 2,291 Yamanouchi Pharmaceutical 265,000 7,306 Yamato Transport 77,000 1,027 ---------- 490,830 ---------- LUXEMBOURG -- 0.2% Arcelor (A) 381,000 4,632 Ses Global FDR 126,000 976 ---------- 5,608 ---------- MEXICO -- 0.2% America Movil, Series L ADR 78,600 1,816 Telefonos de Mexico, Series L ADR 93,900 2,869 ---------- 4,685 ---------- NETHERLANDS -- 7.8% ABN AMRO Holding (A) 1,290,381 23,818 Aegon 621,030 7,225 Akzo Nobel 385,297 12,012 ASML Holding* 101,800 1,334 CSM 188,158 3,736 DSM 151,100 7,172 Heineken (A) 190,444 6,917 Heineken Holding 89,250 2,832 ING Groep (A) 899,295 16,474 Koninklijke Philips Electronics 85,400 1,935 Numico* 66,600 1,351 Reed Elsevier 32,800 370 Royal Dutch Petroleum 1,018,348 44,721 Royal Dutch Petroleum (NY Shares) 28,000 1,238 Royal KPN* 1,533,241 11,481 TPG 471,300 8,908 Unilever (A) 363,814 21,396 VNU (A) 101,303 2,969 ---------- 175,889 ---------- NEW ZEALAND -- 0.1% Telecom 890,456 2,729 ---------- NORWAY -- 1.0% DnB Holding 200,000 958 Norsk Hydro 328,700 16,724 Norske Skogindustrier 34,600 571 Statoil 414,100 3,712 ---------- 21,965 ---------- - -------------------------------------------------------------------------------- 10 SEI Institutional International Trust / Annual Report / September 30, 2003 - --------------------------------------------------------------- Market Value Description Shares ($ Thousands) - --------------------------------------------------------------- PORTUGAL -- 0.5% Electricidade de Portugal 922,854 $ 2,117 Portugal Telecom 1,017,100 8,043 ---------- 10,160 ---------- SINGAPORE -- 0.7% DBS Group Holdings 161,649 1,206 DBS Group Holdings ADR (1) 151,000 1,127 Flextronics International 37,900 538 Singapore Airlines 686,000 4,207 Singapore Press Holdings 99,000 1,048 Singapore Technologies Engineering 750,000 811 Singapore Telecommunications 4,760,000 4,571 United Overseas Bank 288,000 2,233 ---------- 15,741 ---------- SOUTH KOREA -- 1.2% POSCO 47,780 5,484 Samsung Electronics GDR (A) 128,287 21,680 ---------- 27,164 ---------- SPAIN -- 3.9% ACS Actividades Construccion y Servicios (A) 182,500 7,730 Altadis 96,800 2,384 Banco Bilbao Vizcaya Argentaria (A) 1,249,500 12,892 Banco Santander Central Hispano 1,660,600 14,078 Inditex 209,200 4,483 Repsol 932,100 15,316 Telefonica 2,590,286 30,588 ---------- 87,471 ---------- SWEDEN -- 1.8% Assa Abloy 257,900 2,267 Autoliv 38,000 1,142 Electrolux, Series B 15,800 344 ForeningsSparbanken (A) 309,982 4,588 Nordea (A) 845,399 4,820 Sandvik 42,500 1,165 Svenska Cellulosa, Class B 94,000 3,403 Svenska Handelsbanken 364,700 6,200 Volvo, Class B 765,500 17,714 ---------- 41,643 ---------- SWITZERLAND -- 7.0% Adecco 237,400 11,730 Ciba Specialty Chemicals* 38,796 2,631 Compagnie Financiere Richemont 285,097 5,667 Credit Suisse Group 168,400 5,388 - --------------------------------------------------------------- Market Value Description Shares ($ Thousands) - --------------------------------------------------------------- Givaudan 5,100 $ 2,159 Holcim 215,279 8,672 Nestle 99,775 23,006 Novartis 842,927 32,617 Roche Holding 107,781 8,937 Schindler Holding* 9,636 2,065 Serono 1,932 1,264 STMicroelectronics (A) 122,600 2,962 Swiss Reinsurance 160,122 10,173 Swisscom 21,649 6,311 Syngenta 101,037 5,478 Synthes-Stratec 1,690 1,497 UBS (A) 505,273 28,351 ---------- 158,908 ---------- TAIWAN -- 0.4% Chunghwa Telecom ADR 103,676 1,453 Taiwan Semiconductor Manufacturing* 116,880 230 Taiwan Semiconductor Manufacturing ADR* 647,117 7,008 ---------- 8,691 ---------- UNITED KINGDOM -- 20.2% Abbey National 143,600 1,179 Allied Domecq 990,665 6,238 ARM Holdings* 329,600 537 AstraZeneca 545,851 23,282 AstraZeneca ADR 192,500 8,355 Aviva 478,400 3,712 BAA 159,392 1,229 BAE Systems 728,849 2,034 Barclays 3,175,897 24,364 BG Group 1,053,200 4,427 BHP Billiton 1,681,239 11,159 BOC Group 361,731 4,964 BP 3,684,466 25,281 Brambles Industries 169,900 479 British American Tobacco 1,248,723 13,412 BT Group 2,125,700 6,357 Bunzl 490,701 3,718 Cadbury Schweppes 4,098,267 25,193 Centrica 634,400 1,913 Compass Group 194,600 1,122 GlaxoSmithKline 1,434,826 29,774 Granada 1,333,746 2,072 GUS 355,224 3,872 Hays 2,995,395 5,362 HBOS 168,800 1,929 HSBC Holdings 2,098,901 27,670 Imperial Tobacco Group 532,980 8,687 Intercontinental Hotels Group* 254,101 2,026 International Power* 153,578 340 - -------------------------------------------------------------------------------- SEI Institutional International Trust / Annual Report / September 30, 2003 11 SCHEDULE OF INVESTMENTS International Equity Fund (Concluded) September 30, 2003 - --------------------------------------------------------------- Market Value Description Shares ($ Thousands) - --------------------------------------------------------------- Lloyds TSB Group 518,200 $ 3,562 Mitchells & Butlers* 1 -- mmO2* 8,257,600 7,854 National Grid Transco 1,766,556 11,314 Pearson 633,600 6,003 Persimmon 259,100 2,316 Prudential 601,230 4,103 Reckitt Benckiser 265,521 5,338 Reed Elsevier 1,622,598 12,690 Rentokil Initial 2,099,928 7,440 Reuters Group 355,800 1,255 Rexam 332,800 2,195 Rio Tinto 1,012,100 21,574 RMC Group 147,078 1,456 Rolls-Royce Group 1,063,859 2,846 Royal & Sun Alliance Insurance Group 2,510,400 3,368 Royal Bank of Scotland Group 624,604 15,877 Safeway 457,100 2,107 Shell Transport & Trading 790,100 4,877 Shire Pharmaceuticals* 173,300 1,255 Signet Group 1,331,800 2,334 Smith & Nephew 1,405,300 9,246 Smiths Group 385,840 4,289 Standard Chartered 308,500 4,308 Trinity Mirror 115,500 1,075 Unilever 639,900 5,464 Vodafone Group 24,141,938 48,131 Whitbread 249,000 2,881 Wimpey George 404,100 2,451 Wolseley 398,401 4,648 WPP Group 145,214 1,224 Xstrata 190,000 1,466 ---------- 455,634 ---------- Total Common Stock (Cost $2,183,006) ($ Thousands) 2,210,308 ---------- PREFERRED STOCK -- 0.1% GERMANY -- 0.1% Porsche 3,301 1,389 ---------- Total Preferred Stock (Cost $1,508) ($ Thousands) 1,389 ---------- RIGHTS -- 0.0% FRANCE -- 0.0% AXA, Expire 10/03/03 (A) 720,400 33 ---------- - --------------------------------------------------------------- Shares/Face Amount Market Value Description ($ Thousands) ($ Thousands) - --------------------------------------------------------------- UNITED KINGDOM -- 0.0% Royal & Sun Alliance, Expire 10/13/03 2,510 $ 511 ---------- Total Rights (Cost $1,169) ($ Thousands) 544 ---------- FOREIGN CONVERTIBLE BONDS -- 0.1% CAYMAN ISLANDS -- 0.1% SMFG Finance 2.250%, 07/11/05 JPY 189,000 2,561 ---------- SWITZERLAND -- 0.0% Credit Suisse Group 6.000%, 12/23/05 EUR 186 183 ---------- Total Foreign Convertible Bonds (Cost $2,430) ($ Thousands) 2,744 ---------- U.S. TREASURY OBLIGATION -- 0.1% UNITED STATES -- 0.1% U.S. Treasury Bill (2) 1.030%, 02/26/04 $ 2,500 2,490 ---------- Total U.S. Treasury Obligation (Cost $2,490) ($ Thousands) 2,490 ---------- COMMERCIAL PAPER (B) -- 2.4% UNITED STATES -- 2.4% Amstel Funding 1.182%, 11/21/03 18,286 18,256 Atlantis One Funding 1.161%, 11/10/03 18,286 18,263 Tannehill Capital 1.212%, 11/14/03 18,286 18,259 ---------- Total Commercial Paper (Cost $54,778) ($ Thousands) 54,778 ---------- CORPORATE BONDS (B) -- 2.4% UNITED STATES -- 2.4% CIT Group 1.516%, 04/08/04 19,993 20,029 Liberty Light US Capital 1.110%, 06/16/04 18,286 18,283 United Health Group 1.185%, 11/11/03 15,239 15,243 ---------- Total Corporate Bonds (Cost $53,555) ($ Thousands) 53,555 ---------- - -------------------------------------------------------------------------------- 12 SEI Institutional International Trust / Annual Report / September 30, 2003 - --------------------------------------------------------------- Face Amount Market Value Description ($ Thousands) ($ Thousands) - --------------------------------------------------------------- REPURCHASE AGREEMENTS -- 14.4% Barclays 1.080%, dated 09/30/03, to be repurchased on 10/01/03, repurchase price $169,440,109 (collateralized by various FNMA Obligations, ranging in par value $114,995,000-$167,417,000, 1.000%-1.750%, 02/26/04-05/15/05; with total market value $172,824,040) (B) $169,435 $ 169,435 Morgan Stanley 1.000%, dated 09/30/03, to be repurchased on 10/01/03, repurchase price $16,890,080 (collateralized by FNMA Obligations, par value $17,170,000, 3.250%, 08/15/08; with total market value $17,229,108) 16,890 16,890 State Street Bank 0.350%, dated 09/30/03, to be repurchased on 10/01/03, repurchase price $17,832,173 (collateralized by U.S. Treasury Obligations, ranging in par value $1,155,000-$7,735,000, 2.000%-3.625%, 03/31/04-11/30/04, with total market value $18,203,593) 17,832 17,832 UBS Securities 1.090%, dated 09/30/03, to be repurchased on 10/01/03, repurchase price $121,913,426 (collateralized by various FNMA Obligations, ranging in par value $3,475,000-$22,025,000, 1.750%-6.875%, 08/15/04-07/15/13; with total market value $124,350,995) (B) 121,910 121,910 ---------- Total Repurchase Agreements (Cost $326,067) ($ Thousands) 326,067 ---------- Total Investments -- 117.3% (Cost $2,625,003) ($ Thousands) $2,651,875 ========== - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Percentages are based on Net Assets of $2,260,095,398. * Non-Income Producing Security (1) Security sold with terms of a private placement memorandum, exempt from registration under Section 144a of the Securities Act 1933, as amended, and may be sold only to dealers in that program or other "accredited investros." As of September 30, 2003 the total value of this security was $1,126,883, representing 0.05% of the Fund's net assets. (2) Securities pledged as collateral on open futures contracts. The rates shown are effective yields at the time of purchase. (A) This security or a partial position of this security is on loan at September 30, 2003 (see Note 10). The total value of securities on loan at September 30, 2003 was $377,164,324. (B) This security was purchased with cash collateral held from securities lending. The total value of such securities as of September 30, 2003 was $399,678,418. ADR -- American Depositary Receipt EUR -- Euro FDR -- Fiduciary Depositary Receipt FNMA -- Federal National Mortgage Association GDR -- Global Depositary Receipt JPY -- Japanese Yen MARKET % OF VALUE SECTOR DIVERSIFICATION (UNAUDITED) NET ASSETS ($ THOUSANDS) - ---------------------------------- ---------- ------------- COMMON STOCK Financials 20.7% $467,117 Consumer Staples 20.0 452,456 Communication 13.1 296,920 Industrials 12.0 270,549 Consumer Discretionary 10.3 233,309 Energy 8.6 193,135 Basic Materials 6.4 144,935 Technology 4.2 93,735 Utilities 2.5 56,328 Diversified -- 1,286 Information Technology -- 538 ----- ---------- TOTAL COMMON STOCK 97.8 2,210,308 REPURCHASE AGREEMENTS 14.4 326,067 COMMERCIAL PAPER 2.4 54,778 CORPORATE BONDS 2.4 53,555 FOREIGN CONVERTIBLE BONDS 0.1 2,744 U.S. TREASURY OBLIGATION 0.1 2,490 PREFERRED STOCK 0.1 1,389 RIGHTS -- 544 ----- ---------- TOTAL INVESTMENTS 117.3 2,651,875 TOTAL OTHER ASSETS & LIABILITIES, NET (17.3) (391,780) ----- ---------- TOTAL NET ASSETS 100.0% $2,260,095 ===== ========== The accompanying notes are an integral part of the financial statements. - -------------------------------------------------------------------------------- SEI Institutional International Trust / Annual Report / September 30, 2003 13 SCHEDULE OF INVESTMENTS Emerging Markets Equity Fund September 30, 2003 - --------------------------------------------------------------- Market Value Description Shares ($ Thousands) - --------------------------------------------------------------- COMMON STOCK -- 92.5% ARGENTINA -- 0.2% IRSA Inversiones y Representaciones GDR* 132,300 $ 1,217 Petrobas Energia Participaciones ADR 71,466 633 -------- 1,850 -------- BRAZIL -- 5.7% Aracruz Celulose ADR 101,643 2,775 Banco Itau Holding Financeira ADR 40,870 1,479 Brasil Telecom 1,423,567 6 Brasil Telecom Participacoes ADR (C) 97,006 3,715 Cia Brasileira de Distribuicao Grupo Pao de Acucar ADR (C) 211,061 3,985 Cia de Saneamento Basico do Estado de Sao Paulo 42,970,000 1,849 Cia Energetica de Minas Gerais ADR 7,000 83 Cia Vale do Rio Doce ADR 230,723 9,043 Empresa Brasileira de Aeronautica ADR 183,256 3,867 Gerdau ADR 131,522 1,895 Petroleo Brasileiro 305,737 7,011 Petroleo Brasileiro ADR 634,870 13,491 Tele Celular Sul Participacoes ADR 81,700 767 Tele Nordeste Celular Participacoes ADR 26,600 537 Telecomunicacoes Brasileiras ADR (C) 53,360 1,717 Ultrapar Participacoes ADR 57,900 603 Uniao de Bancos Brasileiros ADR 47,500 941 -------- 53,764 -------- CHILE -- 1.3% Banco Santander Chile ADR 36,800 846 Cia Cervecerias Unidas ADR (C) 107,577 1,904 Cia de Telecomunicaciones de Chile ADR 149,230 1,903 CorpBanca* 153,292,300 645 Distribucion y Servicio D&S ADR 252,786 4,292 Empresa Nacional de Electricidad ADR* 129,600 1,400 Enersis ADR 66,722 386 Farmacias Ahumada 342,646 770 -------- 12,146 -------- CHINA -- 2.6% Aluminum Corp of China 11,064,000 3,715 Beijing Datang Power Gen. (C) 1,752,000 950 Byd (A) 482,000 1,195 China Petroleum & Chemical 1,034,000 287 China Southern Airlines* 3,852,000 1,306 China Telecom 13,596,000 3,511 First Tractor* 4,880,000 914 Legend Group (C) 2,232,000 894 PetroChina 13,068,000 4,430 - --------------------------------------------------------------- Market Value Description Shares ($ Thousands) - --------------------------------------------------------------- Qingling Motors (C) 4,835,200 $ 749 Shandong International Power Development 5,014,100 1,489 Sinopec Shanghai Petrochemical (C) 2,930,000 621 Sinopec Yizheng Chemical Fibre 8,845,600 1,336 Sinotrans 3,634,000 1,408 Zhejiang Glass 3,767,000 1,070 -------- 23,875 -------- COLOMBIA -- 0.0% Bancolombia ADR 80,900 391 -------- CROATIA -- 0.2% Pliva D.D. GDR (A) 113,800 1,619 -------- CZECH REPUBLIC -- 0.6% CEZ 249,900 1,228 Komercni Banka 49,772 4,273 -------- 5,501 -------- EGYPT -- 0.8% Commercial International Bank GDR (A) 153,100 903 Misr International Bank SAE GDR (A) 428,325 482 Mobinil-Eqyptian Mobile Services 342,364 3,360 Orascom Construction Industries 166,317 1,571 Suez Cement (A) 99,248 809 -------- 7,125 -------- HONG KONG -- 2.8% ASM Pacific Technology 159,500 539 China Merchants Holdings Internationa l2,256,000 2,593 China Mobile 2,748,000 7,239 China Mobile ADR 70,900 924 China Resources Enterprise 3,741,900 4,059 Citic Pacific 336,000 688 CNOOC 3,510,000 5,983 Fountain SET Holdings 1,042,000 821 Shanghai Industrial Holdings 923,000 1,663 Yue Yuen Industrial Holdings 408,000 1,217 -------- 25,726 -------- HUNGARY -- 1.8% Egis 6,828 250 Gedeon Richter 14,025 1,359 Matav 831,391 3,064 Mol Magyar Olaj - es Gazipari 114,716 3,151 OTP Bank* 770,590 9,136 -------- 16,960 -------- - -------------------------------------------------------------------------------- 14 SEI Institutional International Trust / Annual Report / September 30, 2003 - --------------------------------------------------------------- Market Value Description Shares ($ Thousands) - --------------------------------------------------------------- INDIA -- 6.8% Bajaj Auto* 24,500 $ 423 Bajaj Auto GDR (A)* 39,800 677 Bharat Petroleum 110,400 885 Bharti Televentures* 754,729 1,316 Cadila Healthcare 146,000 1,036 Divi's Laboratories 29,000 567 Dr. Reddy's Laboratories ADR 27,418 643 GAIL India 740,900 2,385 GAIL India GDR (A) 94,900 1,833 GlaxoSmithkline Pharmaceuticals 53,000 523 HDFC Bank ADR 35,600 765 Hindalco Industries 250,874 5,037 Hindalco Industries GDR (A) 100,900 2,032 Hindustan Petroleum 106,285 841 ICICI Bank 55,000 246 ICICI Bank ADR 206,925 2,185 Indian Hotels GDR (A) 36,800 212 Infosys Technologies 27,018 2,671 ITC 54,400 952 ITC GDR (A) 106,000 1,855 Jupiter Bioscience 246,340 434 Larsen & Tourbo 263,000 1,853 Mahanagar Telephone Nigam 535,000 1,402 Mahanagar Telephone Nigam ADR 327,750 1,734 Mahindra & Mahindra 44,000 228 Mahindra & Mahindra GDR (A) 146,400 759 Maruti Udyog* 758,200 3,853 Nicholas Piramal 62,000 542 NIIT 158,692 511 Punjab National Bank 521,681 2,123 Ranbaxy Laboratories 23,176 488 Reliance Industries 325,800 3,161 Reliance Industries GDR (A) (C) 186,700 3,812 Satyam Computer Services 523,500 2,906 Satyam Computer Services ADR 129,400 1,669 State Bank of India 106,000 1,046 State Bank of India GDR (A) 46,800 1,179 Tata Iron & Steel 270,000 1,603 Tata Motors 310,238 2,084 Tata Motors GDR (A) (C) 426,529 2,824 Tata Power 298,975 1,205 Welspun-Gujarat Stahl* 1,006,000 752 -------- 63,252 -------- INDONESIA -- 1.8% Astra Agro Lestari 1,483,000 278 Astra International* 4,136,500 2,230 Gudang Garam 1,042,000 1,396 HM Sampoerna 3,515,500 1,895 Indofood Sukses Makmur 14,914,200 1,288 Indonesian Satellite 1,019,000 1,141 - --------------------------------------------------------------- Market Value Description Shares ($ Thousands) - --------------------------------------------------------------- Kalbe Farma 6,645,000 $ 495 Ramayana Lestari Sentosa 4,925,500 2,391 Telekomunikasi Indonesia 8,498,000 5,770 -------- 16,884 -------- ISRAEL -- 2.6% Bank Hapoalim* 2,242,373 4,415 Check Point Software Technologies* 220,172 3,699 ECI Telecom* 50,850 205 Koor Industries* 1 -- Makhteshim-Agan Industries 218,200 615 Super-Sol 359,800 720 Teva Pharmaceutical Industries ADR 254,180 14,526 -------- 24,180 -------- LUXEMBOURG -- 0.3% Tenaris ADR* 93,770 2,468 -------- MALAYSIA -- 3.3% British American Tobacco Malaysia 365,000 3,794 Commerce Asset Holdings 988,500 957 Crest Petroleum* 273,300 913 Gamuda 820,000 1,413 Genting 1,015,000 4,007 Malakoff 1,366,000 1,704 Malayan Banking 738,000 1,864 Malaysia International Shipping 1,896,300 4,940 Maxis Communications 567,400 941 OYL Industries 246,800 1,884 Public Bank 4,399,687 2,898 Resorts World 336,000 840 Road Builder (M) Holdings 591,000 582 Salcon* 905,000 655 Scomi Group 401,800 994 Sime Darby 1,699,900 2,304 YTL Cement 382,100 422 -------- 31,112 -------- MEXICO -- 8.1% Alfa 262,600 633 America Movil, Series L ADR 508,862 11,760 Apasco 82,000 628 Cemex 364,224 1,810 Cemex ADR 124,100 3,096 Coca-Cola Femsa ADR* 129,400 2,743 Consorcio* 166,400 391 Controladora Comercial Mexicana 2,381,100 1,629 Corporacion GEO, Series B* 147,200 660 Desc, Series B 2,256,800 771 Embotelladoras Arca* 381,600 667 Fomento Economico Mexicano ADR 104,289 3,979 - -------------------------------------------------------------------------------- SEI Institutional International Trust / Annual Report / September 30, 2003 15 SCHEDULE OF INVESTMENTS Emerging Markets Equity Fund (Continued) September 30, 2003 - --------------------------------------------------------------- Market Value Description Shares ($ Thousands) - --------------------------------------------------------------- Grupo Aeroportuario del Sureste ADR 52,100 $ 766 Grupo Bimbo, Series A 202,200 311 Grupo Continental 543,700 803 Grupo Financiero Banorte 1,062,577 3,192 Grupo Financiero BBVA Bancomer, Series B (C)* 8,723,973 7,596 Grupo Financiero Inbursa 417,800 454 Grupo Televisa ADR 73,830 2,701 Kimberly-Clark de Mexico, Series A (C) 2,314,231 5,588 Organizacion Soriana, Series B* 168,700 349 Telefonos de Mexico, Series L ADR 588,477 17,978 TV Azteca ADR 122,500 919 Wal-Mart de Mexico, Series C 628,283 1,628 Wal-Mart de Mexico, Series D (C) 1,690,126 4,877 -------- 75,929 -------- MOROCCO -- 0.1% Ona 7,923 695 -------- PERU -- 0.1% Cia de Minas Buenaventura ADR 28,500 1,128 -------- PHILIPPINES -- 0.7% ABS-CBN Broadcasting PDR* 1,097,900 485 Bank of the Philippine Islands 1,014,741 795 Manila Electric* 1,416,700 587 Philippine Long Distance Telephone* 166,020 1,936 Philippine Long Distance Telephone ADR* 109,550 1,293 SM Prime Holdings 9,562,000 1,098 Universal Robina 4,070,040 423 -------- 6,617 -------- POLAND -- 1.1% Bank Przemyslowo-Handlowy 13,471 1,062 KGHM Polska Miedz* 402,625 2,006 Polski Koncern Naftowy Orlen 526,508 3,172 Polski Koncern Naftowy Orlen GDR (C) 96,621 1,169 Telekomunikacja Polska 486,907 1,696 Telekomunikacja Polska GDR 394,694 1,386 -------- 10,491 -------- RUSSIA -- 4.8% LUKOIL ADR (A) (C) 199,332 16,401 Mobile Telesystems ADR 97,261 7,154 OAO Gazprom ADR 16,700 412 Sibirtelecom ADR* 9,700 233 Sibneft ADR 44,500 1,290 Surgutneftegaz ADR 53,772 1,237 - --------------------------------------------------------------- Market Value Description Shares ($ Thousands) - --------------------------------------------------------------- Uralsvyazinform ADR* 51,400 $ 273 Vimpel-Communications ADR* 80,100 4,875 VolgaTelecom ADR 97,300 399 YUKOS ADR (C) 208,340 12,917 -------- 45,191 -------- SINGAPORE -- 0.1% Huan Hsin Holdings 800,000 569 -------- SOUTH AFRICA -- 9.5% ABSA Group 1,562,280 7,730 Anglo American Platinum 32,182 1,187 Anglogold (C) 42,265 1,632 Aveng 619,980 757 Barloworld 206,186 1,680 Bidvest Group 430,090 2,566 FirstRand 4,239,141 4,443 Gold Fields 194,997 2,791 Harmony Gold Mining 17,067 244 Illovo Sugar 507,840 561 Impala Platinum Holdings 84,665 7,062 Imperial Holdings 128,000 1,047 Iscor 1,434,946 4,182 Massmart Holdings 84,100 307 Metro Cash & Carry* 3,765,869 1,119 MTN Group* 2,368,706 6,768 Nampak 2,056,425 3,632 Naspers 349,987 1,420 Nedcor 769,087 7,641 Network Healthcare Holdings* 500,600 295 Pick'n Pay Stores 1,452,676 3,045 Remgro 218,692 1,824 Sage Group* 92,520 27 Sanlam 6,580,300 7,209 Sappi 34,000 448 Sasol 862,286 10,300 Shoprite Holdings 1,072,317 1,185 Standard Bank Group 313,139 1,439 Steinhoff International Holdings 2,452,706 2,483 Telkom South Africa ADR* 32,100 813 Tiger Brands 202,095 1,988 Tongaat-Hulett Group 218,000 1,095 -------- 88,920 -------- SOUTH KOREA -- 17.0% Cheil Communications 10,200 1,180 CJ 41,570 1,905 Daelim Industrial 83,700 1,761 Daewoo Heavy Industries & Machinery* 237,000 1,459 Daewoo Motor Sales 154,310 1,077 Honam Petrochemical 46,400 1,654 Hyundai Development 23,130 199 - -------------------------------------------------------------------------------- 16 SEI Institutional International Trust / Annual Report / September 30, 2003 - --------------------------------------------------------------- Market Value Description Shares ($ Thousands) - --------------------------------------------------------------- Hyundai Elevator* 54,100 $ 1,162 Hyundai Merchant Marine* 221,500 1,130 Hyundai Mobis 284,500 9,152 Hyundai Motor 317,240 9,130 INI Steel 237,000 1,442 Kangwon Land 9,400 1,128 Kia Motors 212,900 1,481 Kookmin Bank 387,670 12,707 Kookmin Bank ADR 42,344 1,393 Korea Electric Power 357,350 6,727 Korea Exchange Bank* 345,010 1,386 Korea Exchange Bank Credit Service* 128,147 892 Korea Fine Chemical 10,960 131 Korea Line* 129,590 907 KT 8,150 321 KT ADR (C) 280,742 5,595 KT&G 43,640 782 KT&G ADR (A) 247,000 2,230 Kumkang Korea Chemical 7,550 637 LG Card 69,491 1,088 LG Chem 45,720 1,821 LG Electronics 20,090 969 LG Engineering & Construction 144,460 2,449 Nong Shim 8,072 898 Nong Shim Holdings* 2,557 70 Ottogi 11,020 241 POSCO 85,520 9,815 POSCO ADR 106,750 3,053 Power Logics* 16,450 426 Samsung 293,560 1,927 Samsung Electronics 126,970 43,275 Samsung Fire & Marine Insurance 77,060 4,315 Samsung SDI 13,050 1,101 Shinhan Financial Group 105,251 1,428 Shinsegae 50,807 8,989 Shinyoung Securities 57,000 558 SK Telecom 42,333 6,772 SK Telecom ADR 160,671 2,866 -------- 159,629 -------- TAIWAN -- 12.0% Accton Technology 1,510,649 1,105 Acer 1,868,855 2,574 Advanced Semiconductor Engineering* 2,695,473 2,116 Ambit Microsystems 833,800 2,457 Asustek Computer 1,542,125 3,906 AU Optronics* 3,204,600 4,101 Basso Industry* 235,000 449 Cathay Financial Holding* 428,000 558 Cathay Financial Holding GDR (C)* 54,903 716 China Steel 2,726,716 2,092 Chinatrust Financial Holding 5,991,927 5,129 - --------------------------------------------------------------- Market Value Description Shares ($ Thousands) - --------------------------------------------------------------- Chunghwa Telecom ADR 267,300 $ 3,745 CMC Magnetics* 2,899,000 2,190 Compal Electronics 1,093,190 1,538 Continental Engineering* 1,423,000 523 Elan Microelectronics 1,121,496 1,023 First Financial Holding* 718,000 415 Fubon Financial Holding 2,172,319 2,123 High Tech Computer 202,800 736 HON HAI Precision Industry 1,600,500 6,922 Kindom Construction* 1,609,000 538 Largan Precision* 185,900 1,889 Lite-On Technology 1,750,000 1,882 Makalot Industrial 406,000 788 MediaTek 439,290 4,827 Meiloon Industrial 534,600 681 Nan Ya Plastic 4,418,722 5,235 Nien Made Enterprises 1,128,256 1,905 Optimax Technology 543,340 1,601 President Chain Store 755,840 1,037 Quanta Computer 957,400 2,340 Sinopac Holdings 5,895,211 2,759 Standard Foods GDR (A) 287,564 345 Taishin Financial Holdings 6,854,000 4,040 Taiwan Cellular 2,931,632 2,301 Taiwan Semiconductor Manufacturing* 9,983,822 19,666 United Microelectronics* 11,569,405 9,595 United Microelectronics ADR (C)* 249,624 1,126 Wan Hai Lines 551,040 496 Yageo* 6,399,440 2,701 Yieh Phui Enterprise* 3,111,060 2,248 -------- 112,418 -------- THAILAND -- 3.4% Advanced Info Service 892,500 1,363 Amata 6,768,000 1,780 Bangkok Bank* 846,100 1,822 Bangkok Expressway 1,720,000 960 BEC World 113,000 668 Charoen Pokphand Foods 3,403,100 419 Hana Microelectronics 167,700 395 Kasikornbank* 2,280,800 2,799 PTT 3,960,200 8,232 PTT Exploration & Production 332,100 1,381 Shin 5,140,000 3,051 Siam Cement 1,074,550 5,436 Siam Commercial Bank* 2,363,800 2,294 Siam Makro 400,000 343 Telecomasia* 7,367,000 1,255 -------- 32,198 -------- - -------------------------------------------------------------------------------- SEI Institutional International Trust / Annual Report / September 30, 2003 17 SCHEDULE OF INVESTMENTS Emerging Markets Equity Fund (Concluded) September 30, 2003 - --------------------------------------------------------------- Market Value Description Shares ($ Thousands) - --------------------------------------------------------------- TURKEY -- 1.3% Akbank 1,274,519,359 $ 5,080 Anadolu Efes Biracilik Ve Malt Sanayii 75,640,500 896 Enka Insaat ve Sanayi 21,568,000 797 Hurriyet Gazeteci* 938,607,207 2,056 Tupras Turkiye Petrol Rafine 155,843,249 1,332 Turk Ekonomi Bankasi* 103,000,000 171 Turkiye Garanti Bankasi* 954,715,851 1,748 -------- 12,080 -------- UNITED KINGDOM -- 3.5% Anglo American 227,463 4,085 Anglo American (South African Shares) 1,328,541 23,751 Dimension Data Holdings* 1,372,424 593 Old Mutual 1,799,598 2,773 Old Mutual (South African Shares) 1,234,435 1,879 -------- 33,081 -------- VENEZUELA -- 0.0% Cia Anonima Nacional Telefonos de Venezuela ADR 30,599 423 -------- Total Common Stock (Cost $711,340) ($ Thousands) 866,222 -------- PREFERRED STOCK -- 3.1% BRAZIL -- 3.0% Brasil Telecom 123,350,000 548 Cia de Bebidas das Americas ADR 302,883 6,557 Cia Energetica de Minas Gerais 339,753,493 3,987 Cia Paranaense de Energia 176,566 569 Cia Tecidos Norte De Mina 21,100,000 1,564 Cia Vale do Rio Doce Unconverted Participants* 8,352 -- Duratex* 13,000,000 275 Gerdau 297,418 4,150 Investimentos Itau 4,004,188 3,556 Klabin 30,000 31 Marcopolo 415,700 575 Tele Norte Leste Participacoes (C) 80,700 1,125 Telecomunicacoes de Sao Paulo 86,100,000 1,059 Telemar Norte Leste 182,528,000 3,140 Telemig Celular Participacoes 394,100,000 512 -------- 27,648 -------- RUSSIA -- 0.0% Uralsvyazinform ADR* 32,500 134 -------- - --------------------------------------------------------------- Shares/Face Amount Market Value Description ($ Thousands) ($ Thousands) - --------------------------------------------------------------- SOUTH KOREA -- 0.1% Hyundai Motor 100,040 $ 1,418 -------- Total Preferred Stock (Cost $24,679) ($ Thousands) 29,200 -------- EQUITY LINKED WARRANTS (B) -- 2.8% INDIA -- 2.8% Bajaj Auto* 236,986 4,151 Bharat Heavy* 524,600 4,695 Bharti Televentures* 1,080,268 1,909 Crompton Greaves* 357,817 798 Grasim Industries* 367,104 5,358 Hindustan Petroleum* 439,000 3,520 I-Flex Solution* 191,560 3,298 Reliance Industries* 192,360 1,873 -------- Total Equity Linked Warrants (Cost $15,740) ($ Thousands) 25,602 -------- COMMERCIAL PAPER (D) -- 0.3% UNITED STATES -- 0.3% Amstel Funding 1.182%, 11/21/03 $ 991 989 Atlantis One Funding 1.161%, 11/10/03 991 990 Tannehill Capital 1.212%, 11/14/03 991 989 -------- Total Commercial Paper (Cost $2,968) ($ Thousands) 2,968 -------- CORPORATE BONDS (D) -- 0.3% UNITED STATES -- 0.3% CIT Group 1.516%, 04/08/04 1,083 1,085 Liberty Light US Capital 1.110%, 06/16/04 991 991 United Health Group 1.185%, 11/11/03 826 826 -------- Total Corporate Bonds (Cost $2,902) ($ Thousands) 2,902 -------- - -------------------------------------------------------------------------------- 18 SEI Institutional International Trust / Annual Report / September 30, 2003 - --------------------------------------------------------------- Face Amount Market Value Description ($ Thousands) ($ Thousands) - --------------------------------------------------------------- REPURCHASE AGREEMENTS -- 3.6% Barclays 1.080%, dated 09/30/03, to be repurchased on 10/01/03, repurchase price $9,180,029 (collateralized by various FNMA Obligations, ranging in par value $114,995,000--$167,417,000, 1.000%-1.750%, 02/26/04-05/15/05; with total market value $9,363,366)(D) $9,180 $ 9,180 Morgan Stanley 1.000%, dated 09/30/03, to be repurchased on 10/01/03, repurchase price $8,772,355 (collateralized by FNMA Obligations, par value $8,681,336, 5.500%, 02/15/32; with total market value $8,947,554) 8,772 8,772 State Street Bank 0.350%, dated 09/30/03, to be repurchased on 10/01/03, repurchase price $9,305,090 (collateralized by U.S. Treasury Obligations, ranging in par value $950,000-$4,815,000, 3.625%, 03/31/04; with total market value $9,496,491) 9,305 9,305 UBS Securities 1.090%, dated 09/30/03, to be repurchased on 10/01/03, repurchase price $6,605,099 (collateralized by various FNMA Obligations, ranging in par value $3,475,000-$22,025,000, 1.750%-6.875%, 08/15/04-07/15/13; with total market value $6,737,164)(D) 6,605 6,605 -------- Total Repurchase Agreements (Cost $33,862) ($ Thousands) 33,862 -------- Total Investments -- 102.6% (Cost $791,491) ($ Thousands) $960,756 ======== - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Percentages are based on Net Assets of $936,559,804. * Non-Income Producing Security (A) Securities sold with terms of a private placement memorandum, exempt from registration under Section 144a of the Securities Act 1933, as amended, and may be sold only to dealers in that program or other "accredited investors." As of September 30, 2003 the total value of these securities was $20,836,016, representing 2.22% of the Fund's net assets. (B) Securities are not readily marketable. See Note 2 in Notes to Financial Statements. (C) This security or a partial position of this security is on loan at September 30, 2003 (see Note 10). The total value of securities on loan at September 30, 2003 was $20,655,372. (D) This security was purchased with cash collateral held from securities lending. The total value of such securities as of September 30, 2003 was $21,654,020. ADR -- American Depositary Receipt FNMA -- Federal National Mortgage Association GDR -- Global Depositary Receipt PDR -- Philippine Depositary Receipt Amounts designated as "--" are either $0 or have been rounded to $0. MARKET % OF VALUE SECTOR (UNAUDITED) NET ASSETS ($ THOUSANDS) - ------------------ ---------- ------------- COMMON STOCK Financials 15.2% $142,092 Communication 15.0 140,198 Basic Materials 12.4 116,232 Industrials 11.7 109,994 Energy 10.4 97,885 Consumer Discretionary 8.9 83,617 Technology 7.1 66,318 Consumer Staples 6.7 62,489 Diversified 2.5 23,541 Utilities 2.5 23,368 Health Care 0.1 488 ----- -------- TOTAL COMMON STOCK 92.5 866,222 REPURCHASE AGREEMENTS 3.6 33,862 PREFERRED STOCK 3.1 29,200 EQUITY LINKED WARRANTS 2.8 25,602 COMMERCIAL PAPER 0.3 2,968 CORPORATE BONDS 0.3 2,902 ----- -------- TOTAL INVESTMENTS 102.6 960,756 TOTAL OTHER ASSETS & LIABILITIES, NET (2.6) (24,196) ----- -------- TOTAL NET ASSETS 100.0% $936,560 ===== ======== The accompanying notes are an integral part of the financial statements. - -------------------------------------------------------------------------------- SEI Institutional International Trust / Annual Report / September 30, 2003 19 SCHEDULE OF INVESTMENTS International Fixed Income Fund September 30, 2003 - --------------------------------------------------------------- Face Amount Market Value Description ($ Thousands)(1) ($ Thousands) - --------------------------------------------------------------- GLOBAL BONDS -- 79.8% AUSTRIA -- 0.0% Republic of Austria, Series E, MTN 5.500%, 10/20/07 210 $ 268 -------- BELGIUM -- 1.8% Kingdom of Belgium, Series 23 8.000%, 03/28/15 60 94 Kingdom of Belgium, Series 28 5.750%, 03/28/08 10 13 Kingdom of Belgium, Series 31 5.500%, 03/28/28 12,150 15,446 -------- 15,553 -------- DENMARK -- 1.5% Kingdom of Denmark 8.000%, 03/15/06 72,733 12,828 -------- FINLAND -- 0.6% UPM-Kymmene Oyj, Series E, MTN 6.125%, 01/23/12 3,950 5,003 -------- FRANCE -- 2.4% France Telecom, Series E, MTN 8.125%, 01/28/33 1,680 2,452 Government of France* 5.750%, 10/25/32 13,610 18,126 -------- 20,578 -------- GERMANY -- 0.3% Henkel KGaA, Series E, MTN 4.250%, 06/10/13 2,080 2,407 -------- GREECE -- 1.6% Hellenic Republic 6.300%, 01/29/09 5,360 7,113 5.900%, 10/22/22 5,300 6,971 -------- 14,084 -------- IRELAND -- 0.3% Allied Irish Banks 7.500%, 02/28/11 1,910 2,597 -------- ITALY -- 3.6% Buoni Poliennali Del Tesoro 5.750%, 02/01/33 8,910 11,618 5.000%, 10/15/07 900 1,125 San Paolo IMI Capital 8.126%, 11/10/10 2,010 2,805 Sanpaolo IMI, Series E, MTN 6.375%, 04/06/10 4,300 5,702 - --------------------------------------------------------------- Face Amount Market Value Description ($ Thousands)(1) ($ Thousands) - --------------------------------------------------------------- UniCredito Italiano, Series 1, MTN 6.000%, 03/16/11 7,700 $ 9,993 -------- 31,243 -------- JAPAN -- 21.6% Government of Japan 5 Year Bond, Series 21 0.400%, 06/20/07 7,901,000 70,522 Government of Japan 10 Year Bond, Series 236 1.500%, 12/20/11 7,940,000 72,611 Government of Japan 10 Year Bond, Series 237 1.500%, 03/20/12 4,786,000 43,723 -------- 186,856 -------- LUXEMBOURG -- 0.4% Sogerim, Series E, MTN 6.125%, 04/20/06 2,840 3,535 -------- MALAYSIA -- 0.0% Petronas Capital 6.375%, 05/22/09 200 255 -------- NETHERLANDS -- 5.1% Arena, Series 2003-1, Class A2 4.300%, 05/19/55 10,500 12,359 Deutsche Telekom International Finance 8.125%, 05/29/12 4,950 7,085 E.ON International Finance, Series E, MTN 5.750%, 05/29/09 6,515 8,332 Munich Re Finance 6.750%, 06/21/23 2,320 2,922 Saecure, Series A2 5.710%, 11/25/07 6,000 7,593 Suedzucker International Finance 5.750%, 02/27/12 4,920 6,234 -------- 44,525 -------- NEW ZEALAND -- 0.5% Fonterra Cooperative Group, Series E, MTN 5.250%, 05/21/07 EUR 3,110 3,857 -------- POLAND -- 2.4% Government of Poland, Series 0205 8.500%, 02/12/05 78,150 20,691 -------- PORTUGAL -- 3.8% Portugal Obrigacoes do Tesouro OT 4.875%, 08/17/07 18,640 23,165 - -------------------------------------------------------------------------------- 20 SEI Institutional International Trust / Annual Report / September 30, 2003 - --------------------------------------------------------------- Face Amount Market Value Description ($ Thousands)(1) ($ Thousands) - --------------------------------------------------------------- Portugal Obrigacoes do Tessouro OT 3.950%, 07/15/09 8,000 $ 9,539 -------- 32,704 -------- SWEDEN -- 7.9% Kingdom of Sweden, Series 1035 6.000%, 02/09/05 56,820 7,634 Kingdom of Sweden, Series 1040 6.500%, 05/05/08 29,790 4,286 Kingdom of Sweden, Series 1043 5.000%, 01/28/09 347,300 47,165 Nordea Bank 6.000%, 12/13/10 EUR 7,700 9,546 -------- 68,631 -------- UNITED KINGDOM -- 15.2% Bank of Scotland, Series E, MTN 6.125%, 02/05/13 EUR 2,630 3,448 5.500%, 07/27/09 EUR 4,950 6,226 5.500%, 10/29/12 EUR 5,000 6,267 British Telecommunications 7.125%, 02/15/11 EUR 2,100 2,862 Chester Asset Receivables 6.125%, 10/15/10 EUR 15,770 20,789 Compass Group, Series E, MTN 6.000%, 05/29/09 EUR 2,410 3,090 European Investment Bank 5.375%, 10/15/12 EUR 15,800 20,264 Granite Mortgages, Series 2002-2, Class 2A 2.320%, 01/20/43 EUR 6,500 7,570 HSBC Capital Funding 8.030%, 06/30/12 EUR 3,060 4,383 Hilton Group Finance, Series E, MTN 6.500%, 07/17/09 EUR 1,820 2,346 Imperial Tobacco Finance, Series E, MTN 6.250%, 06/06/07 EUR 4,950 6,260 NGG Finance 6.125%, 08/23/11 EUR 3,820 4,867 Permanent Financing 5.100%, 06/11/07 EUR 10,200 12,645 Royal Bank of Scotland Group 6.770%, 03/31/05 EUR 7,410 9,143 United Kingdom Treasury 7.500%, 12/07/06 8 15 4.250%, 06/07/32 7,390 11,493 United Utilities Water, Series E, MTN 6.625%, 11/08/07 EUR 7,800 10,167 -------- 131,835 -------- - --------------------------------------------------------------- Face Amount Market Value Description ($ Thousands)(1) ($ Thousands) - --------------------------------------------------------------- UNITED STATES -- 10.8% Caterpillar Financial Asset Trust, Series 2003-A, Class A1 1.229%, 05/25/04 EUR 8,938 $ 8,940 Centex Home Equity, Series 2003-C, Class AV 1.430%, 09/25/33 EUR 15,000 15,009 Chase Credit Card Master Trust, Series 1998-4 5.000%, 08/15/08 EUR 7,200 8,940 Citibank Credit Card Issurance Trust 5.375%, 04/10/13 EUR 6,800 8,567 First USA Credit Card Master Trust, Series 1996-6, Class A 1.260%, 07/10/06 EUR 10,000 10,000 First USA Credit Card Master Trust, Series 2001-2, Class A 1.210%, 11/20/06 EUR 10,000 9,999 Ford Motor Credit, Series E, MTN 6.750%, 01/14/08 EUR 2,650 3,269 General Motors Acceptance, Series E, MTN 6.125%, 03/15/07 EUR 4,740 5,765 Goldman Sachs Group 5.125%, 04/24/13 EUR 810 986 Honda Auto Receivables Owners Trust, 1.233%, 06/11/04 EUR 8,016 8,015 MBNA Credit Card Master Trust, Series 2002-A2, Class A 5.600%, 07/17/14 EUR 6,650 8,470 MBNA Credit Card Master Trust, Series 2003-C4 6.100%, 05/17/13 EUR 1,100 1,820 SLMA Student Loan Trust 3.800%, 06/17/10 EUR 3,500 4,047 -------- 93,827 -------- Total Global Bonds (Cost $637,003) ($ Thousands) 691,277 -------- U.S. TREASURY OBLIGATION -- 0.6% U.S. Treasury Bill (2) 0.934%, 01/15/04 5,000 4,986 -------- Total U.S. Treasury Obligation (Cost $4,986) ($ Thousands) 4,986 -------- - -------------------------------------------------------------------------------- SEI Institutional International Trust / Annual Report / September 30, 2003 21 SCHEDULE OF INVESTMENTS International Fixed Income Fund (Concluded) September 30, 2003 - --------------------------------------------------------------- Face Amount Market Value Description ($ Thousands) ($ Thousands) - --------------------------------------------------------------- TIME DEPOSIT -- 12.7% State Street Bank 1.020%, 10/01/03 $110,000 $110,000 -------- Total Time Deposit (Cost $110,000) ($ Thousands) 110,000 -------- REPURCHASE AGREEMENT -- 0.1% State Street Bank 0.350%, dated 09/30/03, to be repurchased on 10/01/03, repurchase price $693,007 (collateralized by U.S. Treasury Obligation, par value $715,000, 1.127% (3), 03/11/04; with total market value $711,425) 693 693 -------- Total Repurchase Agreement (Cost $693) ($ Thousands) 693 -------- Total Investments -- 93.2% (Cost $752,682) ($ Thousands) $806,956 ======== Percentages are based on Net Assets of $865,697,734. * Non-Income Producing Security (1) In local currency, unless otherwise indicated. (2) Security pledged as collateral on open futures contracts. The rate shown is the effective yield at the time of purchase. (3) The rate shown is the effective yield at the time of purchase. EUR -- Euro MTN -- Medium term note SLMA -- Student Loan Marketing Association The accompanying notes are an integral part of the financial statements. - -------------------------------------------------------------------------------- 22 SEI Institutional International Trust / Annual Report / September 30, 2003 Emerging Markets Debt Fund September 30, 2003 - --------------------------------------------------------------- Shares/Face Amount Market Value Description ($ Thousands) (1) ($ Thousands) - --------------------------------------------------------------- GLOBAL BONDS -- 86.4% ARGENTINA -- 0.8% Banco De Galicia 0.000%, 08/13/02 (B) 1,760 $ 827 Empressa Distribuidora de Electricidad de Mendoza, Series E, MTN (B) 0.000%, 01/10/03 5,000 1,000 First Trust of New York National Association Argentine Branch, Series TD-A 12.000%, 03/17/04 590 612 12.000%, 10/08/04 1,103 1,144 Republic of Argentina, Series E (D) 0.000%, 10/15/03 2,489 597 Republic of Argentina, Series L-GP (B) 6.000%, 03/31/23 1,055 520 -------- 4,700 -------- BRAZIL -- 19.9% Federal Republic of Brazil 14.500%, 10/15/09 1,800 2,162 12.750%, 01/15/20 550 589 12.250%, 03/06/30 28,826 29,907 11.500%, 03/12/08 12,775 13,957 11.000%, 01/11/12 3,250 3,331 11.000%, 08/17/40 18,148 17,150 10.125%, 05/15/27 1,875 1,676 8.875%, 04/15/24 5,200 4,176 2.125%, 04/15/09 (C) 7,108 6,282 Federal Republic of Brazil, Series 15YR 2.188%, 04/15/09 10,324 9,265 Federal Republic of Brazil, Series 18YR (C) 2.188%, 04/15/12 7,700 6,160 Federal Republic of Brazil, Series 20YR 8.000%, 04/15/14 4,224 3,883 Federal Republic of Brazil, Series 20YR (E) 8.000%, 04/15/14 15,362 14,123 -------- 112,661 -------- BULGARIA -- 1.9% Republic of Bulgaria Registered 8.250%, 01/15/15 4,500 5,142 Republic of Bulgaria, Series A (C) 1.938%, 07/28/12 1,779 1,725 1.938%, 07/28/24 3,325 3,225 Republic of Bulgaria, Series IAB (C) 1.938%, 07/28/11 713 684 -------- 10,776 -------- - --------------------------------------------------------------- Face Amount Market Value Description ($ Thousands) ($ Thousands) - --------------------------------------------------------------- CAYMAN ISLANDS -- 0.0% Cornhill, Series 39 (B) 0.000%, 01/30/00 1,650 $ 115 Cornhill, Series 46 (B) 8.626%, 03/02/00 150 11 -------- 126 -------- CHILE -- 0.7% Republic of Chile 7.125%, 01/11/12 3,450 3,968 -------- COLOMBIA -- 4.7% Republic of Colombia 11.750%, 02/25/20 5,515 6,466 10.750%, 01/15/13 (E) 7,270 8,143 10.375%, 01/28/33 2,790 2,904 10.000%, 01/23/12 2,050 2,224 8.700%, 02/15/16 2,420 2,299 8.375%, 02/15/27 1,750 1,575 7.625%, 02/15/07 2,950 3,120 -------- 26,731 -------- COSTA RICA -- 1.1% Government of Costa Rica (A) 9.995%, 08/01/20 2,200 2,533 8.050%, 01/31/13 1,475 1,582 6.914%, 01/31/08 1,950 2,096 -------- 6,211 -------- ECUADOR -- 3.1% Republic of Ecuador Registered 12.000%, 11/15/12 8,610 7,146 7.000%, 08/15/30 16,546 10,383 -------- 17,529 -------- EL SALVADOR -- 0.9% Republic of El Salvador 7.750%, 01/24/23 5,000 5,237 -------- INDONESIA -- 0.9% Garuda Indonesia (C) 1.640%, 12/31/07 2,100 1,439 Indah Kiat Finance Mauritius (B) 10.000%, 07/01/07 7,250 3,371 -------- 4,810 -------- - -------------------------------------------------------------------------------- SEI Institutional International Trust / Annual Report / September 30, 2003 23 SCHEDULE OF INVESTMENTS Emerging Markets Debt Fund (Continued) September 30, 2003 - --------------------------------------------------------------- Face Amount Market Value Description ($ Thousands)(1) ($ Thousands) - --------------------------------------------------------------- KAZAKHSTAN -- 0.7% Kazkommerts International (A) 8.500%, 04/16/13 450 $ 438 Kazkommerts International Registered 8.500%, 04/16/13 3,800 3,705 -------- 4,143 -------- MACEDONIA -- 0.1% Government of Macedonia (C) 1.931%, 07/13/12 532 428 -------- MALAYSIA -- 0.3% Amsteel, Series A1 (B) 0.000%, 12/31/06 2,500 1,875 -------- MEXICO -- 16.2% Pemex Project Funding Master Trust 8.000%, 11/15/11 500 565 Pemex Project Funding Master Trust (E) 8.500%, 02/15/08 7,250 8,374 Petroleos Mexicanos (E) 9.500%, 09/15/27 7,350 8,691 United Mexican States 11.375%, 09/15/16 24,560 35,379 8.125%, 12/30/19 8,700 9,831 7.500%, 01/14/12 1,600 1,810 7.500%, 04/08/33 (E) 5,050 5,277 6.625%, 03/03/15 (E) 8,525 8,972 United Mexican States, MTN 8.300%, 08/15/31 7,800 8,857 6.375%, 01/16/13 3,600 3,798 -------- 91,554 -------- NIGERIA -- 0.7% Central Bank of Nigeria 6.250%, 11/15/20 3,500 3,097 5.092%, 01/05/10 1,480 574 -------- 3,671 -------- PANAMA -- 3.6% Republic of Panama 9.625%, 02/08/11 3,700 4,227 9.375%, 04/01/29 900 1,021 9.375%, 01/16/23 (E) 9,000 9,675 8.875%, 09/30/27 (E) 2,500 2,575 Republic of Panama, Series 18YR (C) 1.938%, 07/17/14 754 705 Republic of Panama, Series 20YR (C) 1.938%, 07/17/16 2,176 1,850 -------- 20,053 -------- - --------------------------------------------------------------- Face Amount Market Value Description ($ Thousands)(1) ($ Thousands) - --------------------------------------------------------------- PERU -- 1.9% Republic of Peru 9.875%, 02/06/15 2,575 $ 2,981 Republic of Peru FLIRB, Series 20YR (C) 4.500%, 03/07/17 4,955 4,298 Republic of Peru, Series 20YR (C) 5.000%, 03/07/17 3,704 3,380 -------- 10,659 -------- PHILIPPINES -- 3.7% Philippine Airlines (B) 0.000%, 06/07/11 3,774 963 Republic of Philippines 10.625%, 03/16/25 (E) 6,135 7,101 9.375%, 01/18/17 6,300 6,890 9.000%, 02/15/13 (E) 3,975 4,273 8.875%, 04/15/08 1,500 1,646 -------- 20,873 -------- ROMANIA -- 0.5% SNP Petrom 11.625%, 10/02/06 EUR 1,906 2,544 -------- RUSSIA -- 12.5% Russian Federation 11.000%, 07/24/18 4,850 6,645 10.000%, 06/26/07 12,000 14,262 8.250%, 03/31/10 20,950 23,647 5.000%, 03/31/30 (C) 27,640 26,189 -------- 70,743 -------- SOUTH AFRICA -- 0.3% Republic of South Africa 12.000%, 02/28/05 ZAR 10,763 1,615 -------- SOUTH KOREA -- 2.7% Korea Development Bank 5.750%, 09/10/13 2,425 2,567 Republic of Korea 8.875%, 04/15/08 8,625 10,587 4.250%, 06/01/13 (E) 2,425 2,313 -------- 15,467 -------- TURKEY -- 3.4% Republic of Turkey Global Bond 12.375%, 06/15/09 6,000 7,035 11.875%, 01/15/30 1,520 1,756 11.500%, 01/23/12 4,625 5,249 9.500%, 01/15/14 2,900 2,966 0.000%, 08/18/04 (D) TRL 3,964,000,000 2,171 -------- 19,177 -------- - -------------------------------------------------------------------------------- 24 SEI Institutional International Trust / Annual Report / September 30, 2003 - --------------------------------------------------------------- Face Amount Market Value Description ($ Thousands)(1) ($ Thousands) - --------------------------------------------------------------- UKRAINE -- 1.4% Government of Ukraine 7.650%, 06/11/13 5,750 $ 5,743 Government of Ukraine Registered 11.000%, 03/15/07 1,764 1,962 -------- 7,705 -------- URUGUAY -- 2.2% Republic of Uruguay 7.875%, 01/15/33 2,116 1,423 7.500%, 03/15/15 13,016 10,022 7.250%, 02/15/11 1,500 1,230 -------- 12,675 -------- VENEZUELA -- 2.2% Government of Venezuela 10.750%, 09/19/13 1,980 1,827 9.250%, 09/15/27 4,990 3,857 1.875%, 12/18/07 (C) 6,214 5,616 Government of Venezuela, Series A 6.750%, 03/31/20 1,150 1,012 -------- 12,312 -------- Total Global Bonds (Cost $445,034) ($ Thousands) 488,243 -------- LOAN PARTICIPATIONS -- 9.2% ALGERIA -- 0.6% Republic of Algeria (C) (Counterparty: Credit Suisse First Boston) 2.063%, 03/04/10 3,436 3,264 -------- ARGENTINA -- 2.1% Aes Chivor (B) (Counterparty: Citigroup Global Markets) 0.000%, 12/31/07 2,025 1,357 Banco De Galicia (Counterparty: Deutsche Bank) 0.000%, 12/31/49 (B) 1,800 756 0.000%, 12/31/49 (B) 590 254 Ciesa (B) (Counterparty: Banc of America) 0.000%, 04/22/02 16,000 5,600 Telecom Personal Promissory Notes, Bank of America Loan (Counterparty: Banc of America) 0.000%, 12/31/49 4,000 2,800 TGS Trust Note (B) (Counterparty: Deutsche Bank) 0.000%, 04/24/06 1,000 750 -------- 11,517 -------- - --------------------------------------------------------------- Face Amount Market Value Description ($ Thousands)(1) ($ Thousands) - --------------------------------------------------------------- INDONESIA -- 1.4% Indonesia Standby Loan 94 (C) (Counterparty: Deutsche Bank) 2.125%, 12/31/49 7,000 $ 5,775 PKN Tranche D Secured Short Term (D) (Counterparty: Citigroup Global Markets) 0.000%, 12/01/03 430 430 PKN Tranche Loan A (B) (Counterparty: Citigroup Global Markets) 0.000%, 06/30/11 1,533 1,456 PKN Tranche Loan B (B) (Counterparty: Citigroup Global Markets) 0.000%, 05/01/11 4,200 345 -------- 8,006 -------- JAPAN -- 0.2% TPI JPY Loan (Counterparty: Deutsche Bank) 0.000%, 12/31/49 JPY 354,231 1,284 -------- MEXICO -- 0.1% Altos Hornos (B) (Counterparty: Banc of America) 0.000%, 03/31/10 3,132 219 -------- MOROCCO -- 4.3% Kingdom of Morocco, Series A (C) (Counterparties: Credit Suisse First Boston, J.P. Morgan, Merrill Lynch) 2.031%, 01/02/09 25,429 24,539 -------- THAILAND -- 0.5% Thai Oil 1 (Counterparty: Credit Suisse First Boston) 2.056%, 03/31/14 2,199 1,880 Thai Oil 2 (Counterparty: Credit Suisse First Boston) 2.056%, 03/31/14 1,155 987 Thai Oil 3 (Counterparty: Credit Suisse First Boston) 2.056%, 03/31/14 147 126 -------- 2,993 -------- Total Loan Participations (Cost $46,972) ($ Thousands) 51,822 -------- CORPORATE BONDS (F) -- 1.0% UNITED STATES -- 1.0% CIT Group 1.516%, 04/08/04 2,065 2,068 Liberty Light US Capital 1.110%, 06/16/04 1,888 1,888 - -------------------------------------------------------------------------------- SEI Institutional International Trust / Annual Report / September 30, 2003 25 SCHEDULE OF INVESTMENTS Emerging Markets Debt Fund (Concluded) September 30, 2003 - --------------------------------------------------------------- Shares/Face Amount Market Value Description ($ Thousands) (1) ($ Thousands) - --------------------------------------------------------------- United Health Group 1.185%, 11/11/03 $ 1,574 $ 1,574 -------- Total Corporate Bonds (Cost $5,530) ($ Thousands) 5,530 -------- COMMERCIAL PAPER (F) -- 1.0% UNITED STATES -- 1.0% Amstel Funding 1.182%, 11/21/03 1,888 1,885 Atlantis One Funding 1.161%, 11/10/03 1,888 1,886 Tannehill Capital 1.212%, 11/14/03 1,888 1,885 -------- Total Commercial Paper (Cost $5,656) ($ Thousands) 5,656 -------- FOREIGN COMMONSTOCK -- 0.0% ARGENTINA -- 0.0% First Trust of New York National Association Argentine Branch 170 217 -------- INDONESIA -- 0.0% PKN Tranche C Equity 24,929 -- -------- Total Foreign Common Stock (Cost $182) ($ Thousands) 217 -------- FOREIGN WARRANTS -- 0.0% NIGERIA -- 0.0% Central Bank of Nigeria* 2,250 -- -------- Total Foreign Warrants (Cost $0) ($ Thousands) -- -------- RIGHTS -- 0.0% VENEZUELA -- 0.0% Government of Venezuela Par* 214,914 -- -------- Total Rights (Cost $25) ($ Thousands) -- -------- REPURCHASE AGREEMENTS -- 8.9% Barclays 1.080%, dated 09/30/03, to be repurchased on 10/01/03, repurchase price $17,496,537 (collateralized by various FNMA Obligations, ranging in par value $114,995,000-$167,417,000, 1.000%-1.750%, 02/26/04-05/15/05; with total market value of $17,845,965)(F) 17,496 17,496 - --------------------------------------------------------------- Face Amount Market Value Description ($ Thousands)(1) ($ Thousands) - --------------------------------------------------------------- State Street Bank 0.350%, dated 09/30/03, to be repurchased on 10/01/03, repurchase price $13,911,135 (collateralized by U.S. Treasury Obligation, par value $14,000,000, 2.250%, 07/31/04; with total market value $14,189,476) $13,911 $ 13,911 State Street Bank 0.880%, dated 09/30/03, to be repurchased on 10/01/03, repurchase price $6,336,155 (collateralized by U.S. Treasury Obligation, par value $5,720,000 , 6.000%, 02/15/26; with total market value $6,463,039) 6,336 6,336 UBS Securities 1.090%, dated 09/30/03, to be repurchased on 10/01/03, repurchase price $12,588,889 (collateralized by various FNMA Obligations, ranging in par value $3,475,000-$22,025,000. 1.750%-6.875%, 08/15/04-07/15/13; with total market value $12,840,595)(F) 12,589 12,589 -------- Total Repurchase Agreements (Cost $50,332) ($ Thousands) 50,332 -------- Total Investments -- 106.5% (Cost $553,731) ($ Thousands) $601,800 ======== SWAP CONTRACTS -- 0.0% - --------------------------------------------------------------- Notional Net Unrealized Amounts Appreciation (Thousands) ($ Thousands) - --------------------------------------------------------------- Receive BRLat fixed rate of 22.35% and pay at floating rate BRL CDI (Counterparty: Deutsche Bank) 2,700 15 Receive BRL at fixed rate of 22.05% and pay at floating rate BRL CDI (Counterparty: Deutsche Bank) 2,700 13 Receive BRL at fixed rate of 21.11% and pay at floating rate BRL CDI (Counterparty: Deutsche Bank) 5,000 17 Receive MXP at fixed rate of 21.11% and pay at floating rate MXIBTIEE (Counterparty: Morgan Stanley) 25,000 87 Receive ZAR at fixed rate of 9.42% and pay at floating rate ZAR JIBAR3M (Counterparty: Deutsche Bank) 24,300 5 -------- Total Swap Contracts 137 -------- - -------------------------------------------------------------------------------- 26 SEI Institutional International Trust / Annual Report / September 30, 2003 Percentages are based on Net Assets of $565,236,765. * Non-Income Producing Security (1) In U.S. dollars, unless otherwise noted. (A) Securities sold with terms of a private placement memorandum, exempt from registration under Section 144a of the Securities Act 1933, as amended, and may be sold only to dealers in that program or other "accredited investors." As of September 30, 2003 the total value of theses securities was $6,648,453, representing 1.18% of the Fund's net assets. (B) Security in default on principal and/or interest payments. (C) Floating Rate Security -- the rate reflected on the Schedule of Investments is the rate in effect on September 30, 2003. (D) Zero coupon security. (E) This security or a partial position of this security is on loan at September 30, 2003 (see Note 10). The total value of securities on loan at September 30, 2003 was $40,483,240. (F) This security was purchased with cash collateral held from securities lending. The total value of such securities was $41,271,150. BRL -- Brazilian Peso CDI -- Brazil Interbank Deposit Rate Annualized EUR -- Euro FLIRB -- Front Loaded Interest Reduction Bond FNMA -- Federal National Mortgage Association JIBA3M -- Johannesburg Interbank Agreed Rate 3 Months JPY -- Japanese Yen MTN -- Medium term note MXP -- Mexican Peso MXIBTIEE -- Mexican Interbank TIEE 28 Day TRL -- Turkish Lira ZAR -- South African Rand Amounts designated as "--" are either $0 or have been rounded to $0. The accompanying notes are an integral part of the financial statements. - -------------------------------------------------------------------------------- SEI Institutional International Trust / Annual Report / September 30, 2003 27 Statements of Assets and Liabilities ($ Thousands) September 30, 2003
- --------------------------------------------------------------------------------------------------------------------------- INTERNATIONAL EMERGING MARKETS INTERNATIONAL FIXED EMERGING MARKETS EQUITY FUND EQUITY FUND INCOME FUND DEBT FUND - --------------------------------------------------------------------------------------------------------------------------- ASSETS: Investments at market value (Cost $2,298,936, $757,629, $751,989, and $503,399, respectively) $2,325,808 $ 926,894 $ 806,263 $551,468 Repurchase Agreements (Cost $326,067, $33,862, $693, and $50,332, respectively) 326,067 33,862 693 50,332 Foreign currency, at value (Cost $6,014 and $8,000, respectively) 6,071 8,058 -- -- Dividends and interest receivable 5,064 2,125 15,724 8,535 Foreign tax reclaim receivable 857 4 -- -- Receivable for investment securities sold 9,939 5547 184,049 23,024 Receivable for shares of beneficial interest sold 4,893 3,524 7,991 1,413 Unrealized gain on forward foreign currency contracts 21 -- 42,434 335 Unrealized gain on swap contracts -- -- -- 137 Deposits with brokers for forward foreign currency contracts -- -- -- 667 Variation margin receivable 115 -- 427 -- - --------------------------------------------------------------------------------------------------------------------------- Total Assets 2,678,835 980,014 1,057,581 635,911 - --------------------------------------------------------------------------------------------------------------------------- LIABILITIES: Payable for investment securities purchased 11,250 6,262 163,501 27,412 Payable for shares of beneficial interest redeemed 4,917 10,733 1,554 970 Bank overdraft 184 681 34 -- Foreign currency overdraft (Cost $581) -- -- 497 -- Unrealized loss on forward foreign currency contracts 21 13 25,577 404 Payable upon return of securities loaned 399,678 21,654 -- 41,271 Variation margin payable 176 -- -- -- Management fees payable 858 509 404 295 Investment advisory fees payable 893 703 101 214 Shareholder servicing fees payable 476 196 150 69 Accrued expenses 287 161 65 39 Accrued foreign capital gains tax payable -- 2,542 -- -- - --------------------------------------------------------------------------------------------------------------------------- Total Liabilities 418,740 43,454 191,883 70,674 - --------------------------------------------------------------------------------------------------------------------------- Net Assets $2,260,095 $ 936,560 $ 865,698 $565,237 =========================================================================================================================== NET ASSETS: Paid-in-Capital -- Class A 3,130,927 1,136,488 740,181 433,218 Paid-in-Capital -- Class I 1,941 -- -- -- Undistributed net investment income 22,777 1,873 38,913 31,037 Accumulated net realized gain (loss) on investments (921,873) (368,590) 13,972 52,820 Net unrealized appreciation on investments 26,872 169,265 54,274 48,069 Accumulated foreign capital gains tax on appreciated securities -- (2,542) -- -- Net unrealized appreciation (depreciation) on futures contracts (784) -- 410 -- Net unrealized appreciation on swap contracts -- -- -- 137 Net unrealized appreciation (depreciation) on forward foreign currency contracts, foreign currencies and translation of other assets and liabilities denominated in foreign currencies 235 66 17,948 (44) - --------------------------------------------------------------------------------------------------------------------------- Net Assets $2,260,095 $ 936,560 $ 865,698 $565,237 =========================================================================================================================== Outstanding shares of beneficial interest (thousands) -- Class A (unlimited authorization -- no par value) 275,285 104,102 69,533 50,706 Outstanding shares of beneficial interest (thousands) -- Class I (unlimited authorization -- no par value) 251 -- -- -- Net Asset Value, Offering and Redemption Price Per Share -- Class A $8.20 $9.00 $12.45 $11.15 Net Asset Value, Offering and Redemption Price Per Share -- Class I $8.20 $ -- $ -- $ -- - --------------------------------------------------------------------------------------------------------------------------- Amounts designated as "--" are either $0 or have been rounded to $0. The accompanying notes are an integral part of the financial statements. - -------------------------------------------------------------------------------- 28 SEI Institutional International Trust / Annual Report / September 30, 2003 Statements of Operations ($ Thousands) For the year ended September 30, 2003 - --------------------------------------------------------------------------------------------------------------------------- INTERNATIONAL EMERGING INTERNATIONAL EMERGING EQUITY MARKETS EQUITY FIXED INCOME MARKETS DEBT FUND FUND FUND FUND - --------------------------------------------------------------------------------------------------------------------------- INTEREST INCOME: Dividends $ 54,333 $ 23,558 $ -- $ -- Interest 382 275 29,756 48,027 Income from security lending 1,326 83 -- 25 Less: Foreign taxes withheld (5,476) (2,603) -- (42) - --------------------------------------------------------------------------------------------------------------------------- Total Investment Income 50,565 21,313 29,756 48,010 - --------------------------------------------------------------------------------------------------------------------------- EXPENSES: Investment advisory fees 10,647 8,410 1,241 4,374 Management fees 9,487 5,206 4,965 3,345 Shareholder servicing fees -- Class A 5,267 2,002 2,069 1,286 Shareholder servicing fees -- Class I 3 -- -- -- Administrative servicing fees -- Class I 3 -- -- -- Custodian fees 1,765 1,318 277 148 Printing fees 267 91 119 59 Professional fees 104 41 37 24 Wire agent fees 46 17 18 11 Registration & filing fees 53 20 21 12 Trustee fees 27 10 11 6 Pricing fees 25 18 7 5 Miscellaneous expenses 34 13 12 8 - --------------------------------------------------------------------------------------------------------------------------- Total Expenses 27,728 17,146 8,777 9,278 - --------------------------------------------------------------------------------------------------------------------------- Less, Waiver of: Investment Advisory Fees (741) (1,531) -- (1,605) Shareholder Servicing Fees -- Class A -- -- (500) (728) - --------------------------------------------------------------------------------------------------------------------------- Net Expenses 26,987 15,615 8,277 6,945 - --------------------------------------------------------------------------------------------------------------------------- NET INVESTMENT INCOME 23,578 5,698 21,479 41,065 =========================================================================================================================== NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES AND FOREIGN CURRENCY TRANSACTIONS: Net realized gain (loss) on: Investments (173,804) 27,003 23,910 60,611 Futures contracts 531 -- (4,587) -- Swap contracts -- -- -- -- Foreign currency transactions (889) (195) 32,852 1,076 Net change in unrealized appreciation (depreciation) on: Investments 537,188 242,326 28,827 97,872 Foreign capital gains tax on appreciated securities -- (2,464) -- -- Futures contracts (622) -- 371 -- Swap contracts -- -- -- 137 Foreign currency transactions (75) 415 26,301 (43) - --------------------------------------------------------------------------------------------------------------------------- NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS, FUTURES AND FOREIGN CURRENCY TRANSACTIONS 362,329 267,085 107,674 159,653 =========================================================================================================================== NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 385,907 $272,783 $129,153 $200,718 ===========================================================================================================================
Amounts designated as "--" are either $0 or have been rounded to $0. The accompanying notes are an integral part of the financial statements. - -------------------------------------------------------------------------------- SEI Institutional International Trust / Annual Report / September 30, 2003 29 Statements of Changes in Net Assets ($ Thousands) For the years ended September 30,
- ------------------------------------------------------------------------------------------------------------------------- INTERNATIONAL EMERGING MARKETS EQUITY FUND EQUITY FUND - ------------------------------------------------------------------------------------------------------------------------- 2003 2002 2003 2002 - ------------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income $ 23,578 $ 12,616 $ 5,698 $ 813 Net realized gain (loss) from investment transactions and futures (173,273) (256,448) 27,003 17,324 Net realized loss on forward foreign currency contracts and foreign currency transactions (889) (378) (195) (4,507) Net change in unrealized appreciation (depreciation) on investments and futures 536,566 (111,062) 242,326 128,859 Net change in accrued foreign capital tax gains on appreciated securities -- -- (2,464) (199) Net change in unrealized appreciation (depreciation) on forward foreign currency contracts, foreign currencies, and translation of other assets and liabilities denominated in foreign currency (75) 628 415 510 - ------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets from operations 385,907 (354,644) 272,783 142,800 - ------------------------------------------------------------------------------------------------------------------------- DIVIDENDS FROM: Net investment income: Class A (10,407) (6,068) -- (3,779) Class I (2) -- -- -- - ------------------------------------------------------------------------------------------------------------------------- Total dividends (10,409) (6,068) -- (3,779) - ------------------------------------------------------------------------------------------------------------------------- CAPITAL SHARE TRANSACTIONS: CLASS A: Proceeds from shares issued 3,133,558 2,075,815 1,785,869 744,061 Reinvestment of cash distributions 9,777 5,785 -- 3,667 Cost of shares redeemed (3,213,270) (2,133,542) (1,861,972) (1,157,297) - ------------------------------------------------------------------------------------------------------------------------- Decrease in net assets derived from Class A transactions (69,935) (51,942) (76,103) (409,569) - ------------------------------------------------------------------------------------------------------------------------- CLASS I(1): Proceeds from shares issued 1,364 1,070 -- -- Reinvestment of cash distributions 2 -- -- -- Cost of shares redeemed (236) (259) -- -- - ------------------------------------------------------------------------------------------------------------------------- Increase in net assets derived from Class I transactions 1,130 811 -- -- Decrease in net assets derived from capital share - ------------------------------------------------------------------------------------------------------------------------- transactions (68,805) (51,131) (76,103) (409,569) - ------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets 306,693 (411,843) 196,680 (270,548) - ------------------------------------------------------------------------------------------------------------------------- NET ASSETS: BEGINNING OF YEAR 1,953,402 2,365,245 739,880 1,010,428 - ------------------------------------------------------------------------------------------------------------------------- END OF YEAR $2,260,095 $ 1,953,402 $ 936,560 $ 739,880 ========================================================================================================================= CAPITAL SHARE TRANSACTIONS (THOUSANDS): CLASS A: Shares issued 441,104 250,089 253,167 99,110 Shares issued in lieu of cash distributions 1,345 677 -- 494 Shares redeemed (448,950) (255,525) (262,333) (152,468) - ------------------------------------------------------------------------------------------------------------------------- Total Class A transactions (6,501) (4,759) (9,166) (52,864) - ------------------------------------------------------------------------------------------------------------------------- CLASS I(1): Shares issued 192 122 -- -- Shares issued in lieu of cash distributions -- -- -- -- Shares redeemed (33) (30) -- -- - ------------------------------------------------------------------------------------------------------------------------- Total Class I 159 92 -- -- - ------------------------------------------------------------------------------------------------------------------------- Net decrease in capital shares (6,342) (4,667) (9,166) (52,864) ========================================================================================================================= (1) Class I shares were offered beginning January 4, 2002. Amounts designated as "--" are either $0 or have been rounded to $0. The accompanying notes are an integral part of the financial statements. - -------------------------------------------------------------------------------- 30 SEI Institutional International Trust / Annual Report / September 30, 2003 Statements of Changes in Net Assets ($ Thousands) For the years ended September 30, - ------------------------------------------------------------------------------------------------------------------------- INTERNATIONAL EMERGING MARKETS FIXED INCOME FUND DEBT FUND - ------------------------------------------------------------------------------------------------------------------------- 2003 2002 2003 2002 - ------------------------------------------------------------------------------------------------------------------------- OPERATIONS: Net investment income $ 21,479 $ 26,166 $ 41,065 $ 40,355 Net realized gain (loss) from investment transactions, futures and swaps 19,323 17,503 60,611 (349) Net realized gain (loss) on forward foreign currency contracts and foreign currency transactions 32,852 7,165 1,076 (334) Net change in unrealized appreciation (depreciation) on investments, futures and swaps 29,198 21,706 98,009 (26,925) Net change in unrealized appreciation (depreciation) on forward foreign currency contracts, foreign currencies and translation of other assets and liabilities denominated in foreign currencies 26,301 (1,348) (43) -- - ------------------------------------------------------------------------------------------------------------------------- Net increase in net assets from operations 129,153 71,192 200,718 12,747 - ------------------------------------------------------------------------------------------------------------------------- DIVIDENDS AND DISTRIBUTIONS FROM: Net investment income: Class A (23,580) -- (40,050) (48,279) Net realized gains: Class A (3,699) -- -- (8,391) - ------------------------------------------------------------------------------------------------------------------------- Total dividends and distributions (27,279) -- (40,050) (56,670) - ------------------------------------------------------------------------------------------------------------------------- CAPITAL SHARE TRANSACTIONS: CLASS A: Proceeds from shares issued 374,056 350,759 330,214 210,586 Reinvestment of cash distributions 26,081 -- 38,521 55,366 Cost of shares redeemed (514,395) (742,513) (386,296) (258,849) - ------------------------------------------------------------------------------------------------------------------------- Increase (decrease) in net assets derived from capital share transactions (114,258) (391,754) (17,561) 7,103 - ------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets (12,384) (320,562) 143,107 (36,820) NET ASSETS: BEGINNING OF YEAR 878,082 1,198,644 422,130 458,950 - ------------------------------------------------------------------------------------------------------------------------- END OF YEAR $ 865,698 $ 878,082 $ 565,237 $ 422,130 ========================================================================================================================= CAPITAL SHARE TRANSACTIONS (THOUSANDS): CLASS A: Shares issued 32,255 34,526 33,911 23,701 Shares issued in lieu of cash distributions 2,358 -- 4,403 6,361 Shares redeemed (44,872) (73,134) (39,626) (28,895) - ------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in capital shares (10,259) (38,608) (1,312) 1,167 =========================================================================================================================
Amounts designated as "--" are either $0 or have been rounded to $0. The accompanying notes are an integral part of the financial statements. - -------------------------------------------------------------------------------- SEI Institutional International Trust / Annual Report / September 30, 2003 31 Financial Highlights For the years ended September 30, (unless otherwise indicated) For a Share Outstanding Throughout Each Period
- ------------------------------------------------------------------------------------------------------------------------- Net Realized Dividends and and Distributions Total Net Asset Net Unrealized Distributions from from Value, Investment Gains Total from Net Realized Dividends Net Asset Beginning Income (Losses) from Investment Capital and Value, End of Period (Loss) on Securities Operations Income Gains Distributions of Period - ------------------------------------------------------------------------------------------------------------------------- INTERNATIONAL EQUITY FUND CLASS A 2003 $ 6.93 $0.08(1) $1.23(1) $ 1.31 $(0.04) $ -- $(0.04) $ 8.20 2002 8.25 0.04 (1.34) (1.30) (0.02) -- (0.02) 6.93 2001 12.33 0.03 (3.73) (3.70) (0.07) (0.31) (0.38) 8.25 2000 12.09 0.08 0.43 0.51 (0.04) (0.23) (0.27) 12.33 1999 9.16 0.04(1) 3.34(1) 3.38 (0.10) (0.35) (0.45) 12.09 CLASS I 2003 $ 6.93 $0.09(1) $1.20(1) $ 1.29 $(0.02) $ -- $(0.02) $ 8.20 2002(2) 8.97 0.03 (2.07) (2.04) -- -- -- 6.93 EMERGING MARKETS EQUITY FUND CLASS A 2003 $ 6.53 $0.05(1) $2.42(1) $ 2.47 $ -- $ -- $ -- $ 9.00 2002 6.08 0.01 0.47 0.48 (0.03) -- (0.03) 6.53 2001 9.19 0.04 (3.15) (3.11) -- -- -- 6.08 2000 9.13 (0.05)(1) 0.12(1) 0.07 (0.01) -- (0.01) 9.19 1999 6.17 (0.03) 3.00 2.97 (0.01) -- (0.01) 9.13 INTERNATIONAL FIXED INCOME FUND CLASS A 2003 $11.00 $0.30(1) $1.53(1) $ 1.83 $(0.33) $(0.05) $(0.38) $12.45 2002 10.12 0.55 0.33 0.88 -- -- -- 11.00 2001 9.81 0.33 (0.02) 0.31 -- -- -- 10.12 2000 11.03 0.31 (1.35) (1.04) (0.18) -- (0.18) 9.81 1999 11.89 0.30 (0.42) (0.12) (0.53) (0.21) (0.74) 11.03 EMERGING MARKETS DEBT FUND CLASS A 2003 $ 8.12 $0.78(1) $3.01(1) $ 3.79 $(0.76) $ -- $(0.76) $11.15 2002 9.03 0.82 (0.56) 0.26 (0.99) (0.18) (1.17) 8.12 2001 9.51 0.94 (0.53) 0.41 (0.89) -- (0.89) 9.03 2000 8.11 0.84 1.33 2.17 (0.77) -- (0.77) 9.51 1999 6.83 0.84 1.19 2.03 (0.75) -- (0.75) 8.11
Ratio of Net Ratio of Investment Expenses Ratio of Income to Average Net Assets Expenses (Loss) Net Assets Portfolio Total End of Period to Average to Average (Excluding Turnover Return+ ($ Thousands) Net Assets Net Assets Waivers) Rate - ------------------------------------------------------------------------------------------- INTERNATIONAL EQUITY FUND CLASS A 2003 18.91% $2,258,034 1.28% 1.12% 1.32% 87% 2002 (15.79) 1,952,763 1.28 0.51 1.29 70 2001 (30.85) 2,365,245 1.28 0.36 1.29 91 2000 4.15 2,953,872 1.29++ 0.79 1.30 73 1999 37.86 1,844,459 1.28 0.39 1.31 61 CLASS I 2003 18.65% $ 2,061 1.53% 1.15% 1.57% 87% 2002(2) (22.74) 639 1.53 0.61 1.54 70 EMERGING MARKETS EQUITY FUND CLASS A 2003 37.83% $ 936,560 1.95% 0.71% 2.14% 69% 2002 7.78 739,880 1.95 0.08 2.14 109 2001 (33.84) 1,010,428 1.95 0.54 2.13 126 2000 0.71 1,285,033 1.96 (0.46) 2.12 110 1999 48.23 866,911 1.95 (0.35) 2.14 129 INTERNATIONAL FIXED INCOME FUND CLASS A 2003 17.05% $ 865,698 1.00% 2.60% 1.06% 216% 2002 8.70 878,082 1.00 2.72 1.07 339 2001 3.16 1,198,644 1.00 3.13 1.06 235 2000 (9.58) 1,105,584 1.00 3.17 1.11 190 1999 (1.36) 809,440 1.00 2.97 1.22 278 EMERGING MARKETS DEBT FUND CLASS A 2003 49.15% $ 565,237 1.35% 7.98% 1.80% 127% 2002 2.15 422,130 1.35 8.80 1.79 140 2001 4.69 458,950 1.35 10.06 1.78 196 2000 28.07 490,554 1.35 10.67 1.80 227 1999 31.15 283,993 1.35 12.27 1.82 184
+ Returns are for the period indicated and have not been annualized. Total returns do not reflect applicable sales load. Returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. ++ The ratio of expenses to average net assets, excluding interest expense, is 1.28% for the year ended September 30, 2000. (1) Per share net investment income and net realized and unrealized gains/(losses) calculated using average shares. (2) The International Equity Fund Class I shares were offered beginning January 4, 2002. All ratios for the period have been annualized. Amounts designated as "--" are either $0 or have been rounded to $0. The accompanying notes are an integral part of the financial statements. - -------------------------------------------------------------------------------- 32 SEI Institutional International Trust / Annual Report / September 30, 2003 Notes to Financial Statements 1. ORGANIZATION SEI Institutional International Trust, (the "Trust"), was organized as a Massachusetts business trust under a Declaration of Trust dated June 30, 1988. The operations of the Trust commenced on December 20, 1989. The Trust is registered under the Investment Company Act of 1940, as amended, as an open-end investment company with four funds: the International Equity Fund, the Emerging Markets Equity Fund, the International Fixed Income Fund and the Emerging Markets Debt Fund (together the "Funds"). The Trust's prospectuses provide a description of each Fund's investment objectives, policies, and strategies. The Trust is registered to offer Class A shares of each of the Funds and Class I shares for the International Equity Fund. 2. SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of the financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America. USE OF ESTIMATES -- The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. SECURITY VALUATION -- Foreign securities are valued based upon quotations from the primary market in which they are traded, and are translated from the local currency into U.S. dollars using current exchange rates. Investment securities that are listed on a securities exchange for which market quotations are readily available are valued by an independent pricing service (the "Pricing Service") at the last quoted sales price for such securities, or if there is no such reported sale on the valuation date, at the most recently quoted bid price. The Pricing Service may also use a matrix system to determine valuations of debt obligations. The Pricing Service considers such factors as security prices, yields, maturities, call features, ratings and developments relating to specific securities in arriving at valuations. The procedures of the Pricing Service and its valuations are reviewed by the Officers of the Trust under the general supervision of the Trustees. Unlisted securities for which market quotations are readily available are valued at the most recently quoted bid price. Debt obligations purchased with sixty days or less remaining until maturity are valued at amortized cost, which approximates market value. Other securities for which market quotations are not readily available or securities whose market quotations do not reflect market value are fair valued using good faith pricing procedures approved by the Board of Trustees (the "Board"). REPURCHASE AGREEMENTS -- Securities pledged as collateral for repurchase agreements are held by the custodian bank. Provisions of the repurchase agreements and procedures adopted by the Trust require that the market value of the collateral to cover principal and interest, including accrued interest thereon, is sufficient in the event of default by the counterparty. The Funds may also invest in tri-party repurchase agreements. Securities held as collateral for tri-party repurchase agreements are maintained in a segregated account by the broker's custodian bank. Provisions of the agreements require that the market value of the collateral, including accrued interest thereon, is sufficient to cover principal and interest in the event of default by the counterparty of the repurchase agreement. If the counterparty defaults and the value of the collateral declines or if the counterparty enters an insolvency proceeding, realization of the collateral by each Fund may be delayed or limited. FOREIGN CURRENCY TRANSLATION -- The books and records of the Funds are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars on the following bases: (I) market value of investment securities, other assets and liabilities at the current rate of exchange; and (II) purchases and sales of investment securities, income and expenses at the relevant rates of exchange prevailing on the respective dates of such transactions. For foreign equity securities, the Funds do not isolate that portion of gains and losses on investment securities that is due to changes in the foreign exchange rates from that which is due to changes in market prices of such securities. For foreign debt obligations, the Funds do isolate that portion of gains and losses on investment securities that is due to changes in the foreign exchange rates from that which is due to changes in market prices of such securities. - -------------------------------------------------------------------------------- SEI Institutional International Trust / Annual Report / September 30, 2003 33 NOTES TO FINANCIAL STATEMENTS (Continued) The Funds do isolate the effect of fluctuations in foreign currency rates when determining the gain or loss upon sale or maturity of foreign currency denominated debt obligations for Federal income tax purposes. The Funds report gains and losses on foreign currency-related transactions as realized and unrealized gains and losses for financial reporting purposes, whereas such gains and losses are treated as ordinary income or loss for Federal income tax purposes. FORWARD FOREIGN CURRENCY CONTRACTS -- The Funds may enter into forward foreign currency contracts as hedges against either specific transactions, fund positions or anticipated fund positions. All commitments are "marked-to-market" daily at the applicable foreign exchange rate, and any resulting unrealized gains or losses are recorded. The Funds realize gains and losses at the time forward contracts are extinguished. Unrealized gains or losses on outstanding positions in forward foreign currency contracts held at the close of the year are recognized as ordinary income or loss for federal income tax purposes. FUTURES CONTRACTS -- The International Equity Fund and the International Fixed Income Fund utilized futures contracts during the year ended September 30, 2003. The Funds' investment in these futures contracts is designed to enable the Funds to more closely approximate the performance of their benchmark indices. Initial margin deposits of cash or securities are made upon entering into futures contracts. The contracts are "marked-to-market" daily and the resulting changes in value are accounted for as unrealized gains and losses. Variation margin payments are paid or received, depending upon whether unrealized losses or gains are incurred. When the contract is closed, the Funds record a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the amount invested in the contract. Risks related to futures contracts include the possibility that there may not be a liquid market for the contracts, that the changes in the value of the contract may not directly correlate with changes in the value of the underlying securities, and that the counterparty to a contract may default on its obligation to perform. EQUITY-LINKED WARRANTS -- The International Equity and Emerging Markets Equity Funds each may invest in equity-linked warrants. The Fund purchases the equity-linked warrants from a broker, who in turn purchases shares in the local market and issues a call warrant hedged on the underlying holding. If the Fund exercises its call and closes its position, the shares are sold and the warrant redeemed with the proceeds. Each warrant represents one share of the underlying stock, therefore, the price, performance and liquidity of the warrant are all directly linked to the underlying stock. The warrants can be redeemed for 100% of the value of the underlying stock, less transaction costs. In addition to the market risk of the underlying holding, the Fund bears additional counterparty risk to the issuing broker. There is currently no active trading market for equity-linked warrants. OPTION WRITING/PURCHASING -- The Funds may invest in financial options contracts solely for the purpose of hedging their existing portfolio securities, or securities that the Funds intend to purchase, against fluctuations in fair value caused by changes in prevailing market interest rates. When the Fund writes or purchases an option, an amount equal to the premium received or paid by the Fund is recorded as a liability or an asset and is subsequently adjusted to the current market value of the option written or purchased. Premiums received or paid from writing or purchasing options which expire unexercised are treated by the Fund on the expiration date as realized gains or losses. The difference between the premium and the amount paid or received on effecting a closing purchase or sale transaction, including brokerage commissions, is also treated as a realized gain or loss. If an option is exercised, the premium paid or received is added to the cost of the purchase or proceeds from the sale in determining whether the Fund has realized a gain or a loss on investment transactions. At September 30, 2003, there were no financial options contracts. SWAP AGREEMENTS -- A swap agreement is a two-party contract under which an agreement is made to exchange returns from predetermined investments or instruments, including a particular interest rate, foreign currency, or "basket" of securities representing a particular index. The gross returns to be exchanged or "swapped" between the parties are calculated based on a "notional amount", which, each business day, is valued to determine each party's obligation under the contract. Fluctuations in market values are reflected as unrealized gains or losses during the term of the contract. Risks could arise from entering into swap agreements from the potential inability of counterparties to meet the terms of their contracts, and from the potential inability to enter into a closing transaction. It is possible that developments in the swaps market could affect a fund's ability to terminate existing swap agreements or to realize amounts to be received under such agreements. CLASSES -- Class-specific expenses are borne by that class. Income, expenses, and realized and unrealized gains/losses are allocated to the respective classes on the basis of relative daily net assets. EXPENSES -- Expenses that are directly related to one of the Funds are charged directly to that Fund. Other operating expenses of the Funds are prorated to the Funds on the basis of relative net assets. - -------------------------------------------------------------------------------- 34 SEI Institutional International Trust / Annual Report / September 30, 2003 DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- Dividends from net investment income are declared and paid to shareholders annually. Dividends and distributions are recorded on the ex-dividend date. OTHER -- Security transactions are accounted for on the trade date. Costs used in determining net realized capital gains and losses on the sale of investment securities are on the basis of specific identification. Purchase discounts and premiums on securities held by the Funds are accreted and amortized to maturity using the scientific-interest method, which approximates the effective interest method. Certain prior year amounts were reclassified to conform to current year presentation. Dividend income is recognized on the ex-dividend date and interest income is recognized using the accrual method. 3. MANAGEMENT, INVESTMENT ADVISORY AND DISTRIBUTION AGREEMENTS SEI Investments Fund Management (the "Manager") and the Trust are parties to a management agreement dated September 16, 2002, under which the Manager provides management, administrative and shareholder services to the Trust for an annual fee equal to 0.45% of the average daily net assets of the International Equity Fund, 0.60% of the average daily net assets of the International Fixed Income Fund, and 0.65% of the average daily net assets of the Emerging Markets Equity and Emerging Markets Debt Funds. The Manager has voluntarily agreed to waive all or a portion of its fees and, if necessary, reimburse other operating expenses in order to limit the operating expenses of each Fund. SEI Investments Management Corporation ("SIMC") acts as the investment adviser for the International Equity, Emerging Markets Equity, International Fixed Income and Emerging Markets Debt Funds. Under the Investment Advisory Agreement, SIMC receives an annual fee of 0.505% of the average daily net assets of the International Equity Fund, 1.05% of the average daily net assets of the Emerging Markets Equity Fund, 0.15% of the average daily net assets of the International Fixed Income Fund, and 0.85% of the average daily net assets of the Emerging Markets Debt Fund. The Adviser has voluntarily agreed to waive all or a portion of its fees and, if necessary, reimburse other operating expenses in order to limit the operating expenses of each Fund. SIMC has entered into investment sub-advisory agreements with the following parties: - ------------------------------------------------------------- Date of Investment Sub-Adviser Agreement - ------------------------------------------------------------- INTERNATIONAL EQUITY FUND Alliance Capital Management, L.P. 07/01/03 Capital Guardian Trust Company 06/10/98 Fisher Investments, Inc. 07/01/03 McKinley Capital Management, Inc. 07/01/03 Morgan Stanley Investment Management, Inc. 10/01/01 EMERGING MARKETS EQUITY FUND Alliance Capital Management, L.P. 06/26/02 Citigroup Asset Management Ltd. 09/30/03 Emerging Markets Management, LLC 03/11/03 The Boston Company Asset Management, LLC 09/18/00 INTERNATIONAL FIXED INCOME FUND Fischer Francis Trees and Watts 12/17/02 EMERGING MARKETS DEBT FUND Ashmore Investment Management 03/17/03 Salomon Brothers Asset Management, Inc. 06/30/97 SEI Investments Distribution Co. (the "Distributor"), a wholly-owned subsidiary of SEI Investments and a registered broker-dealer, serves as each Fund's distributor pursuant to a distribution agreement with the Trust. The Trust adopted a shareholder servicing plan for Class I and Class A Shares (the "Shareholder Servicing Plans") pursuant to which a shareholder servicing fee of up to 0.25% of the average daily net assets attributable to the Class A and Class I shares are paid to the Distributor. Under the Shareholder Servicing Plans, the Distributor may perform, or may compensate other service providers for performing certain shareholder and administrative services. The Distributor has voluntarily agreed to waive all or a portion of its fees in order to limit the operating expenses of each Fund. In addition to the Shareholder Servicing Plans, the Class I Shares have adopted an Administrative Service Plan that provides for administrative service fees payable to the Distributor of up to 0.25% of the average daily net assets attributable to the Class I Shares. The Distribution Agreement between the Distributor and the Trust provides that the Distributor may receive compensation on fund transactions effected for the Trust in accordance with the rules of the Securities and Exchange Commission ("SEC"). Accordingly, it is expected that fund transactions may result in brokerage commissions being paid to the Distributor. The SEC rules require that such commissions not exceed usual and customary commissions. - -------------------------------------------------------------------------------- SEI Institutional International Trust / Annual Report / September 30, 2003 35 For the year ended September 30, 2003, the Distributor received the following commissions: - ----------------------------------------------------------------------------- Amount Fund ($ Thousands) - ----------------------------------------------------------------------------- International Equity Fund $1,678 Emerging Markets Equity Fund 686 For the year ended September 30, 2003, the Funds paid commissions to affiliated broker-dealers as follows: - ------------------------------------------------------------------------------- Amount Fund ($ Thousands) - ------------------------------------------------------------------------------- International Equity Fund $28 Emerging Markets Equity Fund 28 Under both the Shareholder Servicing Plans and Administrative Service Plan, the Distributor may retain as profit any difference between the fee it receives and the amount it pays to third parties. For the year ended September 30, 2003, the Distributor retained 100% of both Shareholder Servicing fees less the waiver, and Administration Servicing fees. Certain Officers and/or Trustees of the Trust are also Officers and/or Directors of the Manager. The Trust pays each unaffiliated Trustee an annual fee for attendance of quarterly, interim and committee meetings. Compensation of affiliated Officers and Trustees is paid by the Manager. The International Equity and Emerging Markets Equity Funds use the Distributor as an agent in placing repurchase agreements. For this service the Distributor retains a portion of the interest earned as a commission. Such commissions for the year ended September 30, 2003 were $20,879 and $13,205, respectively. 4. FORWARD FOREIGN CURRENCY CONTRACTS The Funds enter into forward foreign currency exchange contracts as hedges against fund positions and anticipated fund positions. Such contracts, which are designed to protect the value of the Fund's investment securities against a decline in the value of the hedged currency, do not eliminate fluctuations in the underlying prices of the securities; they simply establish an exchange rate at a future date. Also, although such contracts tend to minimize risk of loss due to a decline in the value of a hedged currency, at the same time they tend to limit any potential gain that might be realized should the value of such foreign currency increase. The following forward foreign currency contracts were outstanding at September 30, 2003:
- ------------------------------------------------------------------------------------------------------------------ Unrealized Maturity Currency to Currency to Appreciation/ Date Deliver Receive Contract Value (Depreciation) - ------------------------------------------------------------------------------------------------------------------ International Fixed Income Fund: 11/19/03 USD 4,838,484 AUD 7,553,051 $ 5,085,014 $ 246,530 11/19/03 USD 85,575,461 CAD 119,838,063 88,640,275 3,064,814 11/19/03 USD 327,781,848 EUR 292,092,225 339,616,979 11,835,131 11/19/03 USD 65,104,399 GBP 40,709,661 67,398,785 2,294,386 11/19/03 USD 230,363,083 JPY 27,547,517,725 247,028,867 16,665,784 11/19/03 USD 8,056,120 KRW 9,598,464 8,315,409 259,289 11/19/03 USD 40,240,420 SEK 331,500,579 42,773,293 2,532,873 11/19/03 GBP 15,350,000 AUD 25,359,996 25,413,411 (53,415) 11/19/03 GBP 15,350,000 EUR 25,486,985 25,413,411 73,574 11/19/03 JPY 13,187,942,078 EUR 100,140,663 116,434,009 (1,827,186) 11/19/03 EUR 103,404,185 JPY 13,346,309,902 119,681,339 (547,182) 11/19/03 CAD 33,580,000 JPY 2,838,148,020 25,450,732 612,710 11/19/03 CAD 85,083,779 USD 61,298,181 62,933,673 (1,635,492) 11/19/03 EUR 265,797,825 USD 298,020,551 309,044,356 (11,023,805) 11/19/03 PZL 85,847,159 USD 21,857,409 21,723,503 133,906 11/19/03 SEK 378,970,806 USD 46,971,506 48,898,344 (1,926,838) 11/19/03 DKK 44,317,916 USD 6,810,806 6,942,465 (131,659) 11/19/03 GBP 14,677,800 USD 23,658,790 24,300,519 (641,729) 11/19/03 JPY 11,592,115,802 USD 100,797,129 103,950,826 (3,153,697) -------------- ------------ $1,689,045,210 $ 16,777,994 ============== ============ - -------------------------------------------------------------------------------- 36 SEI Institutional International Trust / Annual Report / September 30, 2003 The following forward foreign currency contracts were outstanding at September 30, 2003 (Continued): - ------------------------------------------------------------------------------------------------------------------ Unrealized Maturity Currency to Currency to Appreciation/ Date Deliver Receive Contract Value (Depreciation) - ------------------------------------------------------------------------------------------------------------------ Emerging Markets Debt Fund: 10/03/03 - 10/08/03 USD 2,666,296 ARA 7,619,300 $ 2,616,069 $ (50,227) 10/08/03 - 01/08/04 USD 6,002,602 BRL 18,209,125 6,220,026 217,424 12/04/03 USD 1,350,000 EUR 1,208,331 1,404,376 54,376 11/21/03 USD 850,000 IDR 7,327,000,000 872,781 22,781 11/28/03 USD 850,000 THB 35,158,550 881,167 31,167 10/01/03 - 10/08/03 USD 6,209,625 TRL 8,558,625,800,000 6,146,229 (63,396) 10/02/03 BRL 4,793,350 USD 1,578,577 1,637,353 (58,776) 12/04/03 EUR 2,332,493 USD 2,514,427 2,710,925 (196,498) ----------- --------- $22,488,926 $ (43,149) =========== ========= Currency Legend ARA Argentina Peso DKK Danish Krone JPY Japanese Yen THB Thai Baht AUD Australian Dollar EUR Euro KRW South Korean Won TRL Turkish Lira BRL Brazil Real GBP British Pound Sterling PZL Polish Zloty USD U.S. Dollar CAD Canadian Dollar IDR Indonesian Rupah SEK Swedish Krona
5. INVESTMENT TRANSACTIONS The cost of security purchases and the proceeds from the sale of securities, other than short-term investments, during the year ended September 30, 2003, were as follows: - ------------------------------------------------------------ Purchases Sales ($ Thousands) ($ Thousands) - ------------------------------------------------------------ International Equity Fund US Government $ -- $ -- Other 1,753,079 1,809,004 Emerging Markets Equity Fund US Government $ -- $ -- Other 522,022 579,674 International Fixed Income Fund US Government $ 196,280 $ 198,682 Other 1,235,394 1,365,017 Emerging Markets Debt Fund US Government $ 46,826 $ 46,212 Other 471,751 469,666 6. FEDERAL TAX INFORMATION: It is each Fund's intention to continue to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code and distribute all of its taxable income (including net capital gains). Accordingly, no provision of Federal income taxes is required. The Funds may be subject to taxes imposed by countries in which they invest with respect to their investments in issuers existing or operating in such countries. Such taxes are generally based on income earned or repatriated, and capital gains realized on the sale of investments. The Funds accrue such taxes when the related income or capital gains are earned. Some countries require governmental approval for the repatriation of investment income, capital or the proceeds of sales earned by foreign investors. In addition, if there is a deterioration in a country's balance of payments or for other reasons, a country may impose temporary restrictions on foreign capital remittances abroad. Dividends from net investment income and distributions from net realized capital gains are determined in accordance with U.S. Federal income tax regulations, which may differ from those amounts determined under accounting principles generally accepted in the United States of America. These differences, which may result in distribution reclassifications, are primarily due to foreign currency gains and losses, passive foreign investment companies gains and losses, equalization, and prior year adjustments. These book/tax differences are either temporary or permanent in nature. To the extent these differences are permanent, they are charged or credited to paid-in-capital, undistributed net investment income or accumulated net realized gain, as appropriate, in the period that the differences arise. Accordingly, the following permanent differences, have been reclassified to/from the following accounts as of September 30, 2003: - --------------------------------------------------------------------- Undistributed Accumulated Paid-in- Net Investment Realized Capital Income/(Loss) Gain/(Loss) ($ Thousands) ($ Thousands) ($ Thousands) - --------------------------------------------------------------------- International Equity Fund $-- $ (828) $ 828 Emerging Markets Equity Fund 830 931 (1,761) International Fixed Income Fund 1,033 32,852 (33,885) Emerging Markets Debt Fund -- 1,604 (1,604) - -------------------------------------------------------------------------------- SEI Institutional International Trust / Annual Report / September 30, 2003 37 The tax character of dividends and distributions paid during the last two years were as follows: - ------------------------------------------------------------------------ Long-Term Ordinary Income Capital Gain Totals ($ Thousands) ($ Thousands) ($ Thousands) - ------------------------------------------------------------------------ International Equity Fund 2003 $10,409 $ -- $10,409 2002 6,068 -- 6,068 Emerging Markets Equity Fund 2003 -- -- -- 2002 3,779 -- 3,779 International Fixed Income Fund 2003 27,279 -- 27,279 2002 -- -- -- Emerging Markets Debt Fund 2003 40,050 -- 40,050 2002 48,282 8,388 56,670 As of September 30, 2003, the components of Distributable Earnings/(Accumulated Losses) were as follows:
- ------------------------------------------------------------------------------------------------------ Undistributed Undistributed Capital Post Unrealized Other Ordinary Long-Term Loss October Appreciation Temporary Income Capital Gain Carryforwards Losses* (Depreciation) Differences ($ Thousands) ($ Thousands) ($ Thousands)($ Thousands) ($ Thousands) ($ Thousands) - ------------------------------------------------------------------------------------------------------ International Equity Fund $23,806 $-- $(705,766) $(168,923) $(21,887) $ -- Emerging Markets Equity Fund 2,374 -- (344,611) (1) 142,313 (2) International Fixed Income Fund 65,947 4,644 -- -- 54,926 -- Emerging Markets Debt Fund 70,752 16,671 -- -- 46,180 (1,873)
* Includes Post-October currency losses of, in thousands, $(629) and $(1) of International Equity Fund and Emerging Markets Equity Fund, respectively. Post-October losses represent losses realized on investment transactions from November 1, 2002 through September 30, 2003, that, in accordance with Federal income tax regulations, the Funds may defer and treat as having arisen in the following fiscal year. For Federal income tax purposes, capital carryforwards may be carried forward and applied against future capital gains as follows:
- ------------------------------------------------------------------------------------------------------- Total Capital Loss Expires Expires Expires Expires Expires Carryforward 2011 2010 2009 2007 2006 9/30/03 ($ Thousands) ($ Thousands) ($ Thousands) ($ Thousands) ($ Thousands) ($ Thousands) - ------------------------------------------------------------------------------------------------------- International Equity Fund $226,615 $479,151 $ -- $ -- $ -- $705,766 Emerging Markets Equity Fund 1,982 191,077 26,548 28,692 96,312 344,611
For tax purposes, the losses in the Funds can be carried forward for a maximum of eight years to offset any net realized capital gains. For Federal income tax purposes, the cost of securities owned at September 30, 2003 and the net realized gains or losses on securities sold for the year then ended were different from the amounts reported for financial reporting purposes primarily due to wash sales and unrealized gains on passive foreign investment companies held by the Funds. The Federal tax cost, aggregate gross unrealized appreciation and depreciation at September 30, 2003 for each Fund is as follows:
- --------------------------------------------------------------------------------------------- Aggregate Aggregate Net Gross Gross Unrealized Federal Unrealized Unrealized Appreciation Tax Cost Appreciation Depreciation (Depreciation) ($ Thousands) ($ Thousands) ($ Thousands) ($ Thousands) - --------------------------------------------------------------------------------------------- International Equity Fund $2,673,214 $168,507 $(189,846) $(21,339) Emerging Markets Equity Fund 815,966 188,314 (43,524) 144,790 International Fixed Income Fund 753,827 54,331 (1,202) 53,129 Emerging Markets Debt Fund 555,410 51,380 (4,990) 46,390
7. FUTURES CONTRACTS The following Funds had futures contracts open as of September 30, 2003: - --------------------------------------------------------------------------- Contract Number of Market Settlement Unrealized Description Contracts Value Month Gain/(Loss) - --------------------------------------------------------------------------- INTERNATIONAL EQUITY FUND DJ Euro Stoxx Long 223 $6,245,656 December 2003 $(422,218) FT-SE 100 Index Long 76 5,184,498 December 2003 (262,493) Hang Seng Index Long 4 289,909 October 2003 (2,243) SPI 200 Index Long 23 1,228,669 December 2003 (24,085) Topix Index Long 43 3,908,741 December 2003 (72,993) --------- $(784,032) ========= INTERNATIONAL FIXED INCOME FUND Japan 10 Year Long Bond 34 $41,689,299 December 2003 $ 272,223 Euro 10 Year Long Bond 414 54,002,676 December 2003 168,743 Euro 5 Year Short Bond 136 18,238,903 December 2003 (72,854) U.S. 10 Year Long Note 51 5,845,875 December 2003 42,234 --------- $ 410,346 ========= 8. INVESTMENT RISKS Each Fund invests in securities of foreign issuers in various countries. These investments may involve certain considerations and risks not typically associated with investments in the United States, as a result of, among other factors, the possibility of future political and economic developments and the level of governmental supervision and regulation of securities markets in the respective countries. The International Fixed Income Fund and Emerging Markets Debt Fund invest in debt - -------------------------------------------------------------------------------- 38 SEI Institutional International Trust / Annual Report / September 30, 2003 securities, the market value of which may change in response to interest rate changes. Also, the ability of the issuers of debt securities held by the International Fixed Income Fund and Emerging Markets Debt Fund to meet their obligations may be affected by economic and political developments in a specific country, industry or region. Certain securities held by the Funds are valued on the basis of a price provided by a principal market maker. The prices provided by the principal market makers may differ from the value that would be realized if the securities were sold. At September 30, 2003, the total value of these securities represented approximately 6% of the net assets of the Emerging Markets Debt Fund. In the normal course of business, the Funds enter into contracts that provide general indemnifications. The Funds' maximum exposure under these arrangements is dependent on future claims that may be made against the Funds and, therefore, cannot be established; however, based on experience, the risk of loss from such claim is considered remote. 9. LOAN PARTICIPATIONS AND BRADY BONDS The Emerging Markets Debt Fund (the "Fund") invests in U.S. dollar-denominated fixed and floating rate loans ("Loans") arranged through private negotiations between foreign sovereign entities or corporations and one or more financial institutions ("Lenders"). The Fund invests in such Loans in the form of participations in Loans ("Participations") or assignments of all or a portion of Loans from third parties ("Assignments"). Participations typically result in the Fund having a contractual relationship only with the Lender, not with the sovereign borrower. The Fund has the right to receive payments of principal, interest and any fees to which it is entitled from the Lender selling the Participation and only upon receipt by the Lender of the payments from the borrower. In connection with purchasing Participations, the Fund generally has no right to enforce compliance by the borrower with the terms of the loan agreement relating to the Loan, nor any rights of set-off against the borrower, and the Fund will not benefit directly from any collateral supporting the Loan in which it has purchased the Participation. As a result, the Fund assumes the credit risk of both the borrower and the Lender that is selling the Participation. Certain debt obligations, customarily referred to as "Brady Bonds," are created through the exchange of existing commercial bank loans to foreign entities for new obligations in connection with debt restructuring under a plan introduced by former U.S. Secretary of the Treasury, Nicholas F. Brady. Brady Bonds have only been issued since 1989, and, accordingly, do not have a long payment history. They are issued by governments that may have previously defaulted on the loans being restructured by the Brady Bonds, so are subject to the risk of default by the issuer. They may be fully or partially collateralized or uncollateralized and issued in various currencies. 10. SECURITIES LENDING Each Fund may lend portfolio securities to brokers, dealers and other financial organizations that meet capital and other credit requirements or other criteria established by the Board. These loans may not exceed 331/3% of the total asset value of the Fund (including the loan collateral). No Fund will lend portfolio securities to its investment adviser, sub-adviser or their affiliates unless it has applied for and received specific authority to do so from the SEC. Loans of portfolio securities will be fully collateralized by cash, letters of credit or U.S. Government securities, and the collateral will be maintained in an amount equal to at least 100% of the current market value of the loaned securities by making marked to market daily, although the borrower will be required to deliver 102% and 105% of the market value of borrowed securities for domestic and foreign securities, respectively. Although, the risk of lending is mitigated by the collateral, the Fund could experience a delay in recovering its securities and a possible loss of income or value if the borrower fails to return them. Cash collateral received in connection with securities lending is invested in short-term investments by the lending agent. These investments may include repurchase agreements, which are collateralized by United States Treasury and Government Agency securities, and high-quality, short-term instruments, such as floating rates, commercial paper, and private placements with an average weighted maturity date not to exceed 60 days and a maturity date not to exceed 397 days. - -------------------------------------------------------------------------------- SEI Institutional International Trust / Annual Report / September 30, 2003 39 SEI INSTITUTIONAL INTERNATIONAL TRUST -- SEPTEMBER 30, 2003 Report of Independent Auditors To the Board of Trustees and Shareholders of SEI Institutional International Trust In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of International Equity Fund, Emerging Markets Equity Fund, International Fixed Income Fund and Emerging Markets Debt Fund (four portfolios constituting SEI Institutional International Trust, hereafter referred to as the "Trust") at September 30, 2003, the results of each of their operations for the year then ended, the changes in each of their net assets and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Trust's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with auditing standards generally accepted in the United States of America, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at September 30, 2003 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. PricewaterhouseCoopers LLP Philadelphia, Pennsylvania November 21, 2003 - -------------------------------------------------------------------------------- 40 SEI Institutional International Trust / Annual Report / September 30, 2003 TRUSTEES AND OFFICERS OF THE TRUST(UNAUDITED) The following chart lists Trustees and Officers as of November 21, 2003. Set forth below are the names, dates of birth, position with the SEI Institutional International Trust (the "Trust"), length of term of office, the principal occupations for the last five years, number of portfolios in fund complex overseen by trustee, and other directorships outside fund complex of each of the persons currently serving as Trustees and Officers of the Trust. The Trust's Statement of Additional Information ("SAI") includes additional information about the Trustees and Officers. The SAI may be obtained without charge by calling 1-800-342-5734.
- ------------------------------------------------------------------------------------------------------------------------------------ TERM OF NUMBER OF OFFICE PORTFOLIOS AND PRINCIPAL IN FUND NAME POSITION(S) LENGTH OF OCCUPATION(S) COMPLEX OTHER DIRECTORSHIPS ADDRESS, HELD WITH TIME DURING PAST OVERSEEN HELD BY AND AGE TRUSTS SERVED 1 FIVE YEARS BY TRUSTEE TRUSTEE - ------------------------------------------------------------------------------------------------------------------------------------ INTERESTED TRUSTEES - ---------------------- Robert A. Nesher Chairman since 1986 Currently performs various 54 Trustee of The Advisors' Inner One Freedom of the services on behalf of SEI Circle Fund, The Arbor Fund, Valley Drive, Board of Investments Company for Bishop Street Funds, and The Oaks, PA 19456 Trustees* which Mr. Nesher is Expedition Funds. 57 yrs. old compensated. - ------------------------------------------------------------------------------------------------------------------------------------ William M. Doran Trustee* since 1986 Partner, Morgan, Lewis & 54 Trustee of The Advisors' Inner 1701 Market Street Bockius LLP(law firm), Circle Fund, The Arbor Fund, Philadelphia, PA counsel to the Trusts, SEI and The Expedition Funds; 19103 Investments Company, the Director of SEIInvestments 63 yrs. old Adviser, the Administrator since 1974. and the Distributor. - ------------------------------------------------------------------------------------------------------------------------------------ TRUSTEES - ---------- F. Wendell Gooch Trustee since 1986 Retired. 54 Trustee of STIClassic Funds One Freedom and STIClassic Variable Trust. Valley Drive, Oaks, PA 19456 70 yrs. old - ------------------------------------------------------------------------------------------------------------------------------------ James M. Storey Trustee since 1995 Retired, Partner, Dechert Price 54 Trustee of The Advisors' Inner One Freedom & Rhoads, September 1987- Circle Fund, The Arbor Fund, Valley Drive, December 1993. and The Expedition Funds. Oaks, PA 19456 72 yrs. old - ------------------------------------------------------------------------------------------------------------------------------------ George J. Sullivan, Jr. Trustee since 1996 Chief Executive Officer, Newfound 54 Trustee of The Advisors' Inner One Freedom Consultants Inc. since April 1997. Circle Fund, The Arbor Fund, Valley Drive Treasurer and Clerk, Peak Asset and The Expedition Funds; Oaks, PA 19456 Management, Inc., since 1991. Trustee, Navigator Securities 60 yrs. old Lending Trust, since 1995. - ------------------------------------------------------------------------------------------------------------------------------------ Rosemarie B. Greco Trustee since 1999 Principal, Grecoventures (consulting 54 Director, Sonoco, Inc.; Director, One Freedom` firm) since August 1997. President, Exelon Energy; Director, Radian, Valley Drive Corestates Financial Corp., 1991-1997; Inc.; Trustee, Pennsylvania Oaks, PA 19456 Chief Executive Officer and President, Real Estate Investment Trust; 57 yrs. old Corestates Bank, N.A., 1991-1997. - ------------------------------------------------------------------------------------------------------------------------------------ Nina Lesavoy Trustee since 2003 Partner, Cue Capital since 2002, Head 54 No other directorships One Freedom of Sales Investorforce, January 2002- Valley Drive, December 2001; Global Partner work- Oaks, PA 19456 ing for the CEO, Invesco Capital, 46 yrs. old January 1998-January 2000. Head of Sales and Client Services, Chancellor Capital and later LGT Asset Management, 1986-2000. - ------------------------------------------------------------------------------------------------------------------------------------ * MESSRS. NESHER AND DORAN ARE TRUSTEES WHO MAY BE DEEMED TO BE "INTERESTED" PERSONS OF THE TRUST AS THAT TERM IS DEFINED IN THE 1940 ACT BY VIRTUE OF THEIR AFFILIATION WITH THE TRUSTS' DISTRIBUTOR. 1 EACH TRUSTEE SHALL HOLD OFFICE DURING THE LIFETIME OF THIS TRUST UNTIL THE ELECTION AND QUALIFICATION OF HIS OR HER SUCCESSOR, OR UNTIL HE OR SHE SOONER DIES, RESIGNS OR IS REMOVED IN ACCORDANCE WITH THE TRUST'S DECLARATION OF TRUST. - -------------------------------------------------------------------------------- SEI Institutional International Trust / Annual Report / September 30, 2003 41 TRUSTEES AND OFFICERS OF THE TRUST(UNAUDITED) (CONTINUED) - ------------------------------------------------------------------------------------------------------------------------------------ TERM OF NUMBER OF OFFICE PORTFOLIOS AND PRINCIPAL IN FUND NAME POSITION(S) LENGTH OF OCCUPATION(S) COMPLEX OTHER DIRECTORSHIPS ADDRESS, HELD WITH TIME DURING PAST OVERSEEN HELD BY AND AGE TRUSTS SERVED 1 FIVE YEARS BY TRUSTEE TRUSTEE - ------------------------------------------------------------------------------------------------------------------------------------ OFFICERS - -------- Edward D. Loughlin President since 1988 Executive Vice President and N/A N/A One Freedom & CEO President - Asset Management Valley Drive, Division of SEI Investments since Oaks, PA 19456 1993. Executive Vice President of 51 yrs. old the Adviser and the Administrator since 1994. Senior Vice President of the Distributor, 1986-1991; Vice President of the Distributor, 1981-1986. - ------------------------------------------------------------------------------------------------------------------------------------ Peter (Pedro) A. CFO & Controller since 2003 Director, Funds Accounting, N/A N/A Rodriguez SEI Investments Global Funds Services One Freedom since September 2002 (and 1997-2002); Valley Drive Vice President, Fund Administration Oaks, PA 19456 BlackRock Financial Management 41 yrs. old (April 2002 to September 2002). - ------------------------------------------------------------------------------------------------------------------------------------ Timothy D. Barto Vice since 1999 Employed by SEI Investments since N/A N/A One Freedom President October 1999. Vice President and Valley Drive and Secretary of the Adviser, Administrator Oaks, PA 19456 Secretary and Distributor since December 1999. 34 yrs. old Associate, Dechert Price & Rhoads (law firm), 1997-1999.Associate, Richter, Miller & Finn (law firm), 1993-1997. - ------------------------------------------------------------------------------------------------------------------------------------ Lydia A. Gavalis Vice since 1998 Vice President and Assistant N/A N/A One Freedom President Secretary of SEI Investments, Valley Drive and the Adviser, the Administrator Oaks, PA 19456 Assistant and the Distributor since 1998. 37 yrs. old Secretary Assistant General Counsel and Director of Arbitration, Philadelphia Stock Exchange, 1989-1998. - ------------------------------------------------------------------------------------------------------------------------------------ Christine M. Vice since 1999 Employed by SEI Investments since N/A N/A McCullough President November 1, 1999. Vice President One Freedom and and Assistant Secretary of the Adviser, Valley Drive Assistant the Administrator and the Distributor Oaks, PA 19456 Secretary since December 1999. Associate at 41 yrs. old White and Williams LLP, 1991-1999. Associate at Montgomery, McCracken, Walker & Rhoads, 1990-1991. - ------------------------------------------------------------------------------------------------------------------------------------ - -------------------------------------------------------------------------------- 42 SEI Institutional International Trust / Annual Report / September 30, 2003 - ------------------------------------------------------------------------------------------------------------------------------------ TERM OF NUMBER OF OFFICE PORTFOLIOS AND PRINCIPAL IN FUND NAME POSITION(S) LENGTH OF OCCUPATION(S) COMPLEX OTHER DIRECTORSHIPS ADDRESS, HELD WITH TIME DURING PAST OVERSEEN HELD BY AND AGE TRUSTS SERVED 1 FIVE YEARS BY TRUSTEE TRUSTEE - ------------------------------------------------------------------------------------------------------------------------------------ OFFICERS (CONTINUED) - ------------------------ Sherry Kajdan Vice since 2001 Vice President and Assistant Secretary N/A N/A Vetterlein President of SEI Investments Mutual Funds One Freedom and Services since January 2001. Valley Drive Assistant Shareholder/Partner, Buchanan Oaks, PA 19456 Secretary Ingersoll Professional Corporation 39 yrs. old (1992-2000). - ------------------------------------------------------------------------------------------------------------------------------------ William E. Zitelli, Jr. Vice since 2001 Vice President and Assistant Secretary N/A N/A One Freedom President of the Administrator and Distributor Valley Drive and since August 2000. Vice President, Oaks, PA 19456 Assistant Merrill Lynch & Co. Asset Management 33 yrs. old Secretary Group (1998-2000). Associate at Pepper Hamilton LLP (1997-1998). Associate at Reboul, MacMurray, Hewitt, Maynard & Kristol (1994-1997). - ------------------------------------------------------------------------------------------------------------------------------------ Robert S. Ludwig Vice since 1985 Employed by SEI Investments N/A N/A One Freedom President since 1985. Senior Vice President Valley Drive and and Chief Investment Officer of SEI Oaks, PA 19456 Assistant Asset Management Group since 1995. 52 yrs. old Secretary Manager of Product Development for SEI's institutional mutual funds and repurchase trading desk from 1985-1995. Held various product management and development positions at Chase Econometrics and Interactive Data Corporation from 1974-1985. - ------------------------------------------------------------------------------------------------------------------------------------ John C. Munch Vice since 2002 Vice President and Assistant Secretary N/A N/A One Freedom President of the Administrator and Distributor Valley Drive and since November 2001. Associate, Oaks, PA 19456 Assistant Howard, Rice, Nemorvoski, Canady, 31 yrs. old Secretary Falk & Rabkin (law firm), 1998-2001. Associate, Seward & Kissel LLP (law firm), 1996-1998. - ------------------------------------------------------------------------------------------------------------------------------------
1 EACH TRUSTEE SHALL HOLD OFFICE DURING THE LIFETIME OF THIS TRUST UNTIL THE ELECTION AND QUALIFICATION OF HIS OR HER SUCCESSOR, OR UNTIL HE OR SHE SOONER DIES, RESIGNS OR IS REMOVED IN ACCORDANCE WITH THE TRUST'S DECLARATION OF TRUST. - -------------------------------------------------------------------------------- SEI Institutional International Trust / Annual Report / September 30, 2003 43 Notice to Shareholders (Unaudited) For shareholders that do not have a September 30, 2003 taxable year end, this notice is for informational purposes only. For shareholders with a September 30, 2003 taxable year end, please consult your tax advisor as to the pertinence of this notice. For the fiscal year ended September 30, 2003 the Funds of the SEI Institutional International Trust are designating the following items with regard to distributions paid during the year.
- ---------------------------------------------------------------------------------------- Qualifying Long Term Ordinary Dividend Capital Gains Income Income (15% Distributions Distributions Foreign Tax Tax Rate Portfolio (Tax Basis) (Tax Basis) Total Credit for QDI)(1) - ---------------------------------------------------------------------------------------- International Equity 0% 100% 100% 34.47% 34.50% Emerging Markets Equity 0% 100% 100% 100% 100% International Fixed Income 0% 100% 100% 0% 0% Emerging Markets Debt 0% 100% 100% 0.10% 0%
(1) The percentage in this column represents the amount of "Qualifying Dividend Income" as created by the Jobs and Growth Tax Relief Reconciliation Act of 2003 and is reelected as a percentage of "Ordinary Income Distributions". It is the intention of each of the aforementioned Funds to designate maximum amount permitted by the law. The information reported herein may differ from the information and distributions taxable to the shareholders for the calendar year ending December 31, 2003. Complete information will be computed and reported in conjunction with your 2003 Form 1099-DIV. - -------------------------------------------------------------------------------- 44 SEI Institutional International Trust / Annual Report / September 30, 2003 Robert A. Nesher, CHAIRMAN TRUSTEES William M. Doran F. Wendell Gooch James M. Storey George J. Sullivan, Jr. Rosemarie B. Greco OFFICERS Edward D. Loughlin PRESIDENT AND CHIEF EXECUTIVE OFFICER Peter (Pedro) A. Rodriguez CONTROLLER AND CHIEF FINANCIAL OFFICER Timothy D. Barto VICE PRESIDENT, SECRETARY Lydia Gavalis VICE PRESIDENT, ASSISTANT SECRETARY Robert S. Ludwig VICE PRESIDENT, ASSISTANT SECRETARY Sherry K. Vetterlein VICE PRESIDENT, ASSISTANT SECRETARY William E. Zitelli VICE PRESIDENT, ASSISTANT SECRETARY Christine McCullough VICE PRESIDENT, ASSISTANT SECRETARY Richard W. Grant SECRETARY INVESTMENT ADVISER SEI Investments Management Corporation MANAGER AND SHAREHOLDER SERVICING AGENT SEI Investments Fund Management DISTRIBUTOR SEI Investments Distribution Co. LEGAL COUNSEL Morgan, Lewis & Bockius LLP INDEPENDENT AUDITORS PricewaterhouseCoopers LLP This annual report and the financial statements contained herein are submitted for the general information of the shareholders of the Trust and must be preceded or accompanied by a current prospectus. Shares of the SEI Funds are not deposits or obligations of, or guaranteed or endorsed by, any bank. The shares are not federally insured by the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board, or any other government agency. Investment in the shares involves risk, including the possible loss of principal. FOR MORE INFORMATION CALL 1 800 DIAL SEI (1 800 342 5734) [SEI LOGO OMITTED] SEI Investments Distribution Co. Oaks, PA 19456 1 800-DIAL-SEI (1 800 342 5734) SEI-F-018 (09/03) ITEM 2. CODE OF ETHICS. The registrant has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, comptroller or principal accounting officer. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. (a) (1) The registrant's board of trustees has determined that the registrant has one audit committee financial expert serving on the audit committee, and any person who performs a similar function. (a) (2) The audit committee financial expert is George J. Sullivan, Jr. Mr. Sullivan is an independent as defined in Form N-CSR Item 3 (a) (2) ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable - only effective for annual reports with periods ending on or after December 15, 2003. ITEMS 5. AUDIT COMMITTEE OF LISTED REGISTRANTS Not applicable. ITEM 6. (RESERVED) ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 8. (RESERVED) ITEM 9. CONTROLS AND PROCEDURES. (a) The certifying officers, whose certifications are included herewith, have evaluated the registrant's disclosure controls and procedures within 90 days of the filing date of this report. In their opinion, based on their evaluation, the registrant's disclosure controls and procedures are adequately designed, and are operating effectively to ensure, that material information relating to the registrant, including its consolidated subsidiaries, is made known to them by others within those entities, particularly during the period in which this report is being prepared. Further, in their opinion, the registrant's disclosure controls and procedures are adequately designed, and are operating effectively to ensure, that information required to be disclosed by the registrant in the reports it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms. (b) At the date of filing this Form N-CSR, there were no significant changes in the registrant's internal control over financial reporting that occurred during the registrant's last fiscal half-year that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting. ITEMS 10. EXHIBITS. (a)(1) Not applicable. (a)(2) A separate certification for the principal executive officer and the principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940, as amended (17 CFR 270.30a-2(a)), are filed herewith. (b) Officer certifications as required by Rule 30a-2(b) under the Investment Company Act of 1940, as amended (17 CFR 270.30a-2(b)) also accompany this filing as an Exhibit. - -------------------------------------------------------------------------------- SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) SEI Tax Exempt Trust By (Signature and Title)* /s/ Edward D. Loughlin ---------------------- Edward D. Loughlin Chief Executive Officer Date: 11/26/03 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By (Signature and Title)* /s/ Edward D. Loughlin ---------------------- Edward D. Loughlin Chief Executive Officer Date: 11/26/03 By (Signature and Title)* /s/ Peter (Pedro) A. Rodriguez ------------------------------ Peter (Pedro) A. Rodriguez Chief Financial Officer Date: 11/26/03 * Print the name and title of each signing officer under his or her signature. EX-99.CERT 3 siit302certel.txt SIIT AR CERT 302 EL 9_30_03 CERTIFICATION Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 I, Edward D. Loughlin, certify that: 1. I have reviewed this report on Form N-CSR of SEI Institutional International Trust; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) [intentionally left blank]; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: November 26, 2003 /s/ Edward D. Loughlin - ---------------------- Edward D. Loughlin President and CEO EX-99.CERT 4 siit302certpr.txt SIIT AR CERT 302 PR 9_30_03 CERTIFICATION Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 I, Peter (Pedro) A. Rodriguez, certify that: 1. I have reviewed this report on Form N-CSR of SEI Institutional International Trust; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) [intentionally left blank]; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: November 26, 2003 /s/ Peter (Pedro) A. Rodriguez - ------------------------------ Peter (Pedro) A. Rodriguez Controller and CFO EX-99.906 5 siit906certel.txt SIIT AR CERT 906 EL 9_30_03 CERTIFICATION Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 The undersigned, the Chief Executive Officer of SEI Institutional International Trust (the "Trust"), with respect to the Form N-CSR for the period ended September 30, 2003 as filed with the Securities and Exchange Commission, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, hereby certifies that, to the best of my knowledge: 1. such Form N-CSR fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2. the information contained in such Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Fund. Dated: November 26, 2003 /s/ Edward D. Loughlin ---------------------- Edward D. Loughlin EX-99.906 6 siit906certpr.txt SIIT AR CERT 906 PR 9_30_03 CERTIFICATION Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 The undersigned, the Chief Financial Officer of SEI Institutional International Trust (the "Trust"), with respect to the Form N-CSR for the period ended September 30, 2003 as filed with the Securities and Exchange Commission, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, hereby certifies that, to the best of my knowledge: 1. such Form N-CSR fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2. the information contained in such Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Fund. Dated: November 26, 2003 /s/ Peter (Pedro) A. Rodriguez ------------------------------ Peter (Pedro) A. Rodriguez EX-99.CODE ETH 7 siitcodeofethics.txt SIIT AR CODE OF ETHICS 9_30_03 SEI LIQUID ASSET TRUST SEI TAX EXEMPT TRUST SEI DAILY INCOME TRUST SEI INDEX FUNDS SEI INSTITUTIONAL MANAGED TRUST SEI INSTITUTIONAL INTERNATIONAL TRUST SEI ASSET ALLOCATION TRUST SEI INSTITUTIONAL INVESTMENTS TRUST SEI INSURANCE PRODUCTS TRUST FINANCIAL OFFICER CODE OF ETHICS I. INTRODUCTION The reputation and integrity of SEI Liquid Asset Trust, SEI Tax Exempt Trust, SEI Daily Income Trust, SEI Index Funds, SEI Institutional Managed Trust, SEI Institutional International Trust, SEI Asset Allocation Trust, SEI Institutional Investments Trust and SEI Insurance Products Trust (each a "Trust" and, collectively, the "Trusts") are valuable assets that are vital to the each Trust's success. The Trusts' senior financial officers ("SFOs") are responsible for conducting the Trusts' business in a manner that demonstrates a commitment to the highest standards of integrity. The Trusts' SFOs include the principal executive officer, the principal financial officer, comptroller or principal accounting officer, and any person who performs a similar function. The Sarbanes-Oxley Act of 2002 (the "Act") effected sweeping corporate disclosure and financial reporting reform on public companies, including mutual funds, to address corporate malfeasance and assure investors that the companies in which they invest are accurately and completely disclosing financial information. Under the Act, all public companies (including the Trusts) must either have a code of ethics for their SFOs, or disclose why they do not. The Act was intended to foster corporate environments which encourage employees to question and report unethical and potentially illegal business practices. Each Trust has chosen to adopt this Financial Officer Code of Ethics (the "Code") to encourage its SFOs to act in a manner consistent with the highest principles of ethical conduct. II. PURPOSES OF THE CODE The purposes of this Code are: o To promote honest and ethical conduct by each Trust's SFOs, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships; o To assist each Trust's SFOs in recognizing and avoiding conflicts of interest, including disclosing to an appropriate person any material transaction or relationship that reasonably could be expected to give rise to such a conflict; 1 o To promote full, fair, accurate, timely, and understandable disclosure in reports and documents that the Trusts file with, or submit to, the SEC and in other public communications made by the Trusts; o To promote compliance with applicable laws, rules and regulations; o To encourage the prompt internal reporting to an appropriate person of violations of this Code; and o To establish accountability for adherence to this Code. III. QUESTIONS ABOUT THIS CODE Each Trust's compliance officer designated to oversee compliance with the Trust's Code of Ethics adopted pursuant to Rule 17j-1 shall serve as Compliance Officer for the implementation and administration of this Code. You should direct your questions about this Code to the Compliance Officer. IV. CONDUCT GUIDELINES Each Trust has adopted the following guidelines under which the Trust's SFOs must perform their official duties and conduct the business affairs of the Trust. 1. ETHICAL AND HONEST CONDUCT IS OF PARAMOUNT IMPORTANCE. Each Trust's SFOs must act with honesty and integrity and avoid violations of this Code, including the avoidance of actual or apparent conflicts of interest with the Trust in personal and professional relationships. 2. SFOS MUST DISCLOSE MATERIAL TRANSACTIONS OR RELATIONSHIPS. Each Trust's SFOs must disclose to the Compliance Officer any actual or apparent conflicts of interest the SFO may have with the Trust that reasonably could be expected to give rise to any violations of this Code. Such conflicts of interest may arise as a result of material transactions or business or personal relationships to which the SFO may be a party. If it is not possible to disclose the matter to the Compliance Officer, it should be disclosed to the Trust's Chief Financial Officer, Chief Executive Officer or another appropriate person. In addition to disclosing any actual or apparent conflicts of interest in which an SFO is personally involved, the Trusts' SFOs have an obligation to report any other actual or apparent conflicts which they discover or of which they otherwise become aware. If you are unsure whether a particular fact pattern gives rise to a conflict of interest, or whether a particular transaction or relationship is "material," you should bring the matter to the attention of the Compliance Officer. 3. STANDARDS FOR QUALITY OF INFORMATION SHARED WITH SERVICE PROVIDERS OF THE TRUSTS. Each Trust's SFOs must at all times seek to provide information to the Trust's service providers (adviser, administrator, outside auditor, outside counsel, 2 custodian, ETC.) that is accurate, complete, objective, relevant, timely, and understandable. 4. STANDARDS FOR QUALITY OF INFORMATION INCLUDED IN PERIODIC REPORTS. Each Trust's SFOs must at all times endeavor to ensure full, fair, timely, accurate, and understandable disclosure in the Trust's periodic reports. 5. COMPLIANCE WITH LAWS. Each Trust's SFOs must comply with the federal securities laws and other laws and rules applicable to the Trusts, such as the Internal Revenue Code. 6. STANDARD OF CARE. Each Trust's SFOs must at all times act in good faith and with due care, competence and diligence, without misrepresenting material facts or allowing your independent judgment to be subordinated. Each Trust's SFOs must conduct the affairs of the Trust in a responsible manner, consistent with this Code. 7. CONFIDENTIALITY OF INFORMATION. Each Trust's SFOs must respect and protect the confidentiality of information acquired in the course of their professional duties, except when authorized by the Trust to disclose it or where disclosure is otherwise legally mandated. You may not use confidential information acquired in the course of your work for personal advantage. 8. SHARING OF INFORMATION AND EDUCATIONAL STANDARDS. Each Trust's SFOs should share information with relevant parties to keep them informed of the business affairs of the Trust, as appropriate, and maintain skills important and relevant to the Trust's needs. 9. PROMOTE ETHICAL CONDUCT. Each Trust's SFOs should at all times proactively promote ethical behavior among peers in your work environment. 10. STANDARDS FOR RECORDKEEPING. Each Trust's SFOs must at all times endeavor to ensure that the Trust's financial books and records are thoroughly and accurately maintained to the best of their knowledge in a manner consistent with applicable laws and this Code. V. WAIVERS OF THIS CODE You may request a waiver of a provision of this Code by submitting your request in writing to the Compliance Officer for appropriate review. For example, if a family member works for a service provider that prepares a Trust's financial statements, you may have a potential conflict of interest in reviewing those statements and should seek a waiver of this Code to review the work. An executive officer of each Trust, or another appropriate person (such as a designated Board or Audit Committee member), will decide whether to grant a waiver. All waivers of this code must be disclosed to the applicable Trust's shareholders to the extent required by SEC rules. 3 VI. AFFIRMATION OF THE CODE Upon adoption of the Code, each Trust's SFOs must affirm in writing that they have received, read and understand the Code, and annually thereafter must affirm that they have complied with the requirements of the Code. To the extent necessary, each Trust's Compliance Officer will provide guidance on the conduct required by this Code and the manner in which violations or suspected violations must be reported and waivers must be requested. VII. REPORTING VIOLATIONS In the event that an SFO discovers or, in good faith, suspects a violation of this Code, the SFO MUST immediately report the violation or suspected violation to the Compliance Officer. The Compliance Officer may, in his or her discretion, consult with another member of the Trust's senior management or the Board in determining how to address the suspected violation. For example, a Code violation may occur when a periodic report or financial statement of a Trust omits a material fact, or is technically accurate but, in the view of the SFO, is written in a way that obscures its meaning. SFOs who report violations or suspected violations in good faith will not be subject to retaliation of any kind. Reported violations will be investigated and addressed promptly and will be treated as confidential to the extent possible. VIII. VIOLATIONS OF THE CODE Dishonest or unethical conduct or conduct that is illegal will constitute a violation of this Code, regardless of whether this Code specifically refers to such particular conduct. A violation of this Code may result in disciplinary action, up to and including removal as an SFO of the Trust. A variety of laws apply to the Trusts and their operations, including the Securities Act of 1933, the Investment Company Act of 1940, state laws relating to duties owed by Trust officers, and criminal laws. The Trusts will report any suspected criminal violations to the appropriate authorities, and will investigate, address and report, as appropriate, non-criminal violations. ADOPTED: JUNE 30, 2003 -----END PRIVACY-ENHANCED MESSAGE-----