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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM N-CSR
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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)
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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
<PAGE>
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
<PAGE>
TABLE OF CONTENTS
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Management's Discussion and Analysis of Fund Performance 1
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Schedules of Investments 8
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Statements of Assets and Liabilities 28
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Statements of Operations 29
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Statements of Changes in Net Assets 30
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Financial Highlights 32
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Notes to Financial Statements 33
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Report of Independent Auditors 40
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Trustees and Officers of the Trust 41
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Notice to Shareholders 44
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<PAGE>
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
<PAGE>
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
<PAGE>
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
<PAGE>
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
<PAGE>
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
<PAGE>
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
<PAGE>
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 $100,000
9/30/97 106,198 106,500 106,908
9/30/98 69,984 80,674 79,860
9/30/99 91,785 100,407 98,228
9/30/00 117,549 125,408 125,771
9/30/01 123,062 129,572 127,997
9/30/02 125,707 130,194 126,538
9/30/03 187,493 175,801 177,393
1 For the period ended September 30, 2003. Past performance is no indication of
future performance. Class A Shares were offered beginning June 29, 1997.
Benchmark returns are for the period beginning June 30, 1997. Returns shown do
not reflect the deduction of taxes that a shareholder would pay on fund
distributions or the redemption of fund shares. The returns for certain
periods reflect fee waivers and/or reimbursements in effect for that period;
absent fee waivers and reimbursements, performance would have been lower.
--------------------------------------------------------------------------------
SEI Institutional International Trust / Annual Report / September 30, 2003 7
<PAGE>
SCHEDULE OF INVESTMENTS
International Equity Fund
September 30, 2003
---------------------------------------------------------------
Market Value
Description Shares ($ 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
<PAGE>
---------------------------------------------------------------
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
<PAGE>
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
<PAGE>
---------------------------------------------------------------
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
<PAGE>
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
<PAGE>
---------------------------------------------------------------
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% $2,260,095
===== ==========
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
SEI Institutional International Trust / Annual Report / September 30, 2003 13
<PAGE>
SCHEDULE OF INVESTMENTS
Emerging Markets Equity Fund
September 30, 2003
---------------------------------------------------------------
Market Value
Description Shares ($ 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
<PAGE>
---------------------------------------------------------------
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
<PAGE>
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
<PAGE>
---------------------------------------------------------------
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
<PAGE>
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
<PAGE>
---------------------------------------------------------------
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% $936,560
===== ========
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
SEI Institutional International Trust / Annual Report / September 30, 2003 19
<PAGE>
SCHEDULE OF INVESTMENTS
International Fixed Income Fund
September 30, 2003
---------------------------------------------------------------
Face Amount Market Value
Description ($ 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
<PAGE>
---------------------------------------------------------------
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
<PAGE>
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 $865,697,734.
* Non-Income Producing Security
(1) In local currency, unless otherwise indicated.
(2) Security pledged as collateral on open futures contracts. The rate shown is
the effective yield at the time of purchase.
(3) The rate shown is the effective yield at the time of purchase.
EUR -- Euro
MTN -- Medium term note
SLMA --
Student Loan Marketing Association
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
22 SEI Institutional International Trust / Annual Report / September 30, 2003
<PAGE>
Emerging Markets Debt Fund
September 30, 2003
---------------------------------------------------------------
Shares/Face Amount Market Value
Description ($ 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
<PAGE>
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
<PAGE>
---------------------------------------------------------------
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
<PAGE>
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
<PAGE>
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 $0.
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
SEI Institutional International Trust / Annual Report / September 30, 2003 27
<PAGE>
Statements of Assets and Liabilities ($ Thousands)
September 30, 2003
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL EMERGING MARKETS INTERNATIONAL FIXED EMERGING MARKETS
EQUITY FUND EQUITY FUND INCOME FUND DEBT FUND
---------------------------------------------------------------------------------------------------------------------------
ASSETS:
<S> <C> <C> <C> <C>
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 $0.
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
28 SEI Institutional International Trust / Annual Report / September 30, 2003
<PAGE>
Statements of Operations ($ 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
===========================================================================================================================
</TABLE>
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
SEI Institutional International Trust / Annual Report / September 30, 2003 29
<PAGE>
Statements of Changes in Net Assets ($ Thousands)
For the years ended September 30,
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL EMERGING MARKETS
EQUITY FUND EQUITY FUND
-------------------------------------------------------------------------------------------------------------------------
2003 2002 2003 2002
-------------------------------------------------------------------------------------------------------------------------
OPERATIONS:
<S> <C> <C> <C> <C>
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 $0.
The accompanying notes are an integral part of the financial statements.
--------------------------------------------------------------------------------
30 SEI Institutional International Trust / Annual Report / September 30, 2003
<PAGE>
Statements of Changes in Net Assets ($ 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
=========================================================================================================================
</TABLE>
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
<PAGE>
Financial Highlights
For the years ended September 30, (unless otherwise indicated) For a Share
Outstanding Throughout Each Period
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------
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
<S> <C> <C> <C> <C> <C> <C> <C> <C>
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) $11.15
2002 9.03 0.82 (0.56) 0.26 (0.99) (0.18) (1.17) 8.12
2001 9.51 0.94 (0.53) 0.41 (0.89) -- (0.89) 9.03
2000 8.11 0.84 1.33 2.17 (0.77) -- (0.77) 9.51
1999 6.83 0.84 1.19 2.03 (0.75) -- (0.75) 8.11
</TABLE>
<TABLE>
<CAPTION>
Ratio of Net Ratio of
Investment Expenses
Ratio of Income to Average
Net Assets Expenses (Loss) Net Assets Portfolio
Total End of Period to Average to Average (Excluding Turnover
Return+ ($ Thousands) Net Assets Net Assets Waivers) Rate
-------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
<S> <C> <C> <C> <C> <C> <C>
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
</TABLE>
+ 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
<PAGE>
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
<PAGE>
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
<PAGE>
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
<PAGE>
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:
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------
Unrealized
Maturity Currency to Currency to Appreciation/
Date Deliver Receive Contract Value (Depreciation)
------------------------------------------------------------------------------------------------------------------
International Fixed Income Fund:
<S> <C> <C> <C> <C> <C> <C>
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
<PAGE>
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)
=========== =========
<FN>
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
</FN>
</TABLE>
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
<PAGE>
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 $ -- $10,409
2002 6,068 -- 6,068
Emerging Markets
Equity Fund 2003 -- -- --
2002 3,779 -- 3,779
International Fixed
Income Fund 2003 27,279 -- 27,279
2002 -- -- --
Emerging Markets
Debt Fund 2003 40,050 -- 40,050
2002 48,282 8,388 56,670
As of September 30, 2003, the components of Distributable Earnings/(Accumulated
Losses) were as follows:
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------
Undistributed Undistributed Capital Post Unrealized Other
Ordinary Long-Term Loss October Appreciation Temporary
Income Capital Gain Carryforwards Losses* (Depreciation) Differences
($ Thousands) ($ Thousands) ($ Thousands)($ Thousands) ($ Thousands) ($ Thousands)
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
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)
</TABLE>
* Includes Post-October currency losses of, in thousands, $(629) and $(1) of
International Equity Fund and Emerging Markets Equity Fund, respectively.
Post-October losses represent losses realized on investment transactions from
November 1, 2002 through September 30, 2003, that, in accordance with Federal
income tax regulations, the Funds may defer and treat as having arisen in the
following fiscal year. For Federal income tax purposes, capital carryforwards
may be carried forward and applied against future capital gains as follows:
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------
Total Capital
Loss
Expires Expires Expires Expires Expires Carryforward
2011 2010 2009 2007 2006 9/30/03
($ Thousands) ($ Thousands) ($ Thousands) ($ Thousands) ($ Thousands) ($ Thousands)
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
International Equity
Fund $226,615 $479,151 $ -- $ -- $ -- $705,766
Emerging Markets
Equity Fund 1,982 191,077 26,548 28,692 96,312 344,611
</TABLE>
For tax purposes, the losses in the Funds can be carried forward for a maximum
of eight years to offset any net realized capital gains.
For Federal income tax purposes, the cost of securities owned at September 30,
2003 and the net realized gains or losses on securities sold for the year then
ended were different from the amounts reported for financial reporting purposes
primarily due to wash sales and unrealized gains on passive foreign investment
companies held by the Funds. The Federal tax cost, aggregate gross unrealized
appreciation and depreciation at September 30, 2003 for each Fund is as follows:
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------
Aggregate Aggregate Net
Gross Gross Unrealized
Federal Unrealized Unrealized Appreciation
Tax Cost Appreciation Depreciation (Depreciation)
($ Thousands) ($ Thousands) ($ Thousands) ($ Thousands)
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
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
</TABLE>
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
<PAGE>
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
<PAGE>
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
<PAGE>
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.
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
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
----------------------
<S> <C> <C> <C> <C> <C>
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
<PAGE>
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
<PAGE>
------------------------------------------------------------------------------------------------------------------------------------
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.
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
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
<PAGE>
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.
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------
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)
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
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%
</TABLE>
(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
<PAGE>
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)
<PAGE>
[SEI LOGO OMITTED]
SEI Investments Distribution Co.
Oaks, PA 19456
1 800-DIAL-SEI (1 800 342 5734)
SEI-F-018 (09/03)
<PAGE>
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.
--------------------------------------------------------------------------------
<PAGE>
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.
</TEXT>
</DOCUMENT>