-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, D3WAzlOW/HQRe6Ao14LiKnD2P4MsWs+2MpRl0UeQLSgS2rJ2VZMUrC2RVyYyTHly PQqMP4pyVZTs7i5o9lFOKA== 0000935069-96-000050.txt : 19960426 0000935069-96-000050.hdr.sgml : 19960426 ACCESSION NUMBER: 0000935069-96-000050 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19960229 FILED AS OF DATE: 19960425 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: SEI INTERNATIONAL TRUST CENTRAL INDEX KEY: 0000835597 STANDARD INDUSTRIAL CLASSIFICATION: [] STATE OF INCORPORATION: MA FISCAL YEAR END: 0228 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-05601 FILM NUMBER: 96550378 BUSINESS ADDRESS: STREET 1: 2 OLIVER ST CITY: BOSTON STATE: MA ZIP: 02109 BUSINESS PHONE: 8003425734 MAIL ADDRESS: STREET 1: SEI INTERNATIONAL TRUST STREET 2: 680 E SWEDESFORD RD CITY: WAYNE STATE: PA ZIP: 19087 FORMER COMPANY: FORMER CONFORMED NAME: SEI WEALTH MANAGEMENT TRUST DATE OF NAME CHANGE: 19900129 N-30D 1 SEI INTERNATIONAL TRUST ANNUAL REPORT ================================================================================ SEI INTERNATIONAL TRUST ================================================================================ ANNUAL REPORT ================================================================================ FEBRUARY 29, 1996 TABLE OF CONTENTS ================================================================================ REPORT OF INDEPENDENT ACCOUNTANTS.................................... 2 REVIEW OF NON-U.S. EQUITY MARKETS.................................... 3 REVIEW OF NON-U.S. BOND MARKETS...................................... 4 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FUND PERFORMANCE INTERNATIONAL EQUITY........................................... 5 EUROPEAN EQUITY................................................ 7 PACIFIC BASIN EQUITY........................................... 8 EMERGING MARKETS EQUITY........................................ 9 INTERNATIONAL FIXED INCOME..................................... 11 STATEMENT OF NET ASSETS/SCHEDULE OF INVESTMENTS...................... 13 STATEMENT OF ASSETS AND LIABILITIES.................................. 28 STATEMENT OF OPERATIONS.............................................. 29 STATEMENT OF CHANGES IN NET ASSETS................................... 30 FINANCIAL HIGHLIGHTS................................................. 31 NOTES TO FINANCIAL STATEMENTS........................................ 32 SHAREHOLDER VOTING RESULTS........................................... 37 NOTICE TO SHAREHOLDERS............................................... 39 1 REPORT OF INDEPENDENT ACCOUNTANTS ================================================================================ FEBRUARY 29, 1996 To the Shareholders and Board of Trustees SEI International Trust In our opinion, the accompanying statements of net assets and where applicable, the schedule of investments and statement of assets and liabilities, 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 the International Equity, European Equity, Pacific Basin Equity, Emerging Markets Equity and International Fixed Income Portfolios of SEI International Trust (the "Fund") at February 29, 1996, the results of each of their operations, the changes in each of their net assets and the financial highlights for each of the respective periods presented, in conformity with generally accepted accounting principles. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fund'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 generally accepted auditing standards 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 February 29, 1996 by correspondence with the custodians and brokers and the application of alternative auditing procedures where confirmations from brokers were not received, provide a reasonable basis for the opinion expressed above. PRICE WATERHOUSE LLP Philadelphia, PA April 10, 1996 2 REVIEW OF NON-U.S. EQUITY MARKETS ================================================================================ SEI INTERNATIONAL TRUST -- FEBRUARY 29, 1996 INTERNATIONAL EQUITY MARKET OVERVIEW Non-U.S. equity markets posted respectable gains for the twelve months ended February 29, 1996 with the Morgan Stanley Capital International Europe, Australia, Far East (EAFE) Index gaining 16.9% and the International Finance Corporation's Investable Composite (IFC) Index gaining 13.4%. While these returns pale when compared with the performance of the U.S. stock market over the last twelve months, they are significantly better than expected a year ago. At the start of the Trust's fiscal year, Japan, the largest non-U.S. market, was recovering from a devastating earthquake and the psychological shock from a series of nerve gas attacks on population centers. Coupled with the pressure on businesses from the persistently strong yen, many investors anticipated a bleak year for Japanese equities. Across Europe, intractable budget deficits in countries as diverse as Italy, Spain and Sweden were putting pressure on bond yields and creating a wariness among equity buyers. The emerging markets, were feeling the "Tequila Effect" after Mexico's decision in December of 1994 to devalue the peso. Their confidence badly shaken, many investors turned to the U.S., which served to only drain more money away from foreign markets and exacerbate the dismal performance. Slowly, however, sentiment seemed to change on non-U.S. markets. In London, a buoyant takeover market was pushing prices higher and investors anticipated the next consolidations. Interest rates in core-European markets such as Germany and Switzerland were coming down to stimulate sluggish economies and to deflate strong currencies. In Japan, after reaching bottom at approximately (YEN)80 to the dollar in the Spring, the yen fell sharply in early August under the weight of concerted central bank intervention while the emerging markets recovered as interest rates in the United States fell and liquidity returned to the markets. The current environment poses some questions for international markets. The health of the Japanese recovery remains a central question on the mind of investors. While structural impediments to recovery have been lifted (the strong yen and the health of the banking sector) the pace to date has been muted and the recovery has been at best fragile. Europe appears in a temporary slowdown, but the requirements of monetary union run the risk of snuffing out any sustainable growth. While governments in the emerging markets have faced a difficult year and gave all appearances of remaining committed to free-markets and shareholder ownership structures challenges remain. Despite all of the questions, international markets remain attractively valued versus the U.S. markets and on-balance appeared poised for a period of relative strength. 3 REVIEW OF NON-U.S. BOND MARKETS ================================================================================ SEI INTERNATIONAL TRUST -- FEBRUARY 29, 1996 INTERNATIONAL FIXED INCOME MARKET REVIEW Non-U.S. bond markets rallied strongly over the twelve month period ended February 29, 1996. Initially, driven higher by the dramatic surge of U.S. bond prices, non-U.S. bonds were lifted by weak economic data worldwide, which created expectations of modest growth and low inflation globally. While the U.S. component of the Salomon Brothers Government Bond Indices rose 12.14%, most non-U.S. bond markets posted stronger returns. The Japanese bond market experienced a volatile year, rising sharply in the Spring of 1995 as the Bank of Japan began lowering short-term interest rates to support the ailing financial sector. Japanese economic data, suggesting recessionary conditions and deflationary price trends also served to boost the market in the Spring. However, the Japanese bond market turned lower in the second half of 1995 as economic data showed some resurgence of growth, the yen began to rally, and speculation grew that the Bank of Japan would not maintain low short-term rates much longer. The yen began the period at (YEN)96.7 to the dollar, rose as far as (YEN)79.45 to the dollar, and then fell back to (YEN)105.3 to the dollar as of February 29, 1996. Concerns over the U.S. government's aid package for Mexico, the direction of U.S. short-term interest rates, and the persistent U.S. trade deficits were among the driving factors behind the dollar's fall. The Japanese bond market returned 9.62% in local terms, but only 0.82% in U.S. dollar terms. European markets posted superior returns over the period, with all markets except the United Kingdom exceeding the return of the U.S. market. The Bundesbank began lowering short-term interest rates in the second half of 1995 as inflation and monetary growth were reported below the central bank's targets. Like the yen, although not as dramatic, the European currencies surged in the Spring of 1995 before retreating to the levels which existed at the beginning of the period. [GRAPHIC OMITTED] A line graph depicting the comparative yields to maturity of 10-year government bonds. The plot points are as follows: UNITED STATES JAPAN UNITED KINGDOM GERMANY 2/95 7.20 4.34 8.606 7.362 3/95 7.20 3.58 8.498 7.189 4/95 7.05 3.39 8.430 7.039 5/95 6.28 2.74 7.911 6.647 6/95 6.20 2.68 8.450 6.940 7/95 6.43 2.83 8.204 6.785 8/95 6.28 3.31 8.080 6.715 9/95 6.18 2.85 8.119 6.603 10/95 6.02 2.94 7.929 6.440 11/95 5.74 2.86 7.538 6.169 12/95 5.57 3.05 7.415 6.031 1/96 5.58 3.15 7.494 5.896 2/96 6.10 3.37 7.996 6.388 SOURCE OF YIELDS: THE BLOOMBERG, L.P. 4 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FUND PERFORMANCE ================================================================================ SEI INTERNATIONAL TRUST -- FEBRUARY 29, 1996 INTERNATIONAL EQUITY PORTFOLIO OBJECTIVES. The International Equity Portfolio (formerly, the Core International Equity Portfolio) seeks to provide long-term capital appreciation through investments in equity securities of non-U.S. issuers. The Portfolio also seeks to provide U.S. investors with a vehicle for international diversification, which can reduce the variability of Portfolio returns to the extent that foreign markets have a relatively low correlation with the U.S. market. STRATEGY. The Portfolio's strategy follows a multi-manager structure in order to reduce manager-specific risks and to better meet fund objectives. The best way to meet Portfolio objectives was to combine a risk-controlled, highly benchmark-sensitive manager with a manager that is willing to accept much greater fund divergence. The benchmark-sensitive manager follows a quantitatively-based country allocation process with stock selection focusing on large cap value securities. Country deviation from the benchmark and overall positioning of the Portfolio are tightly risk-controlled. Active currency management is minimal. The active manager uses a top-down approach to investing that can result in measured deviations away from the benchmark. Security selection focuses on value criteria. Currency management is most typically demonstrated at the country allocation level. ANALYSIS. International Equity Portfolio returned 17.3% for the year ended February 29, 1996, outperforming the Morgan Stanley MSCI EAFE Index's return of 16.9%. Specific stock and industry selection decisions drove the portfolio's relative returns. In particular, favorable commitments to banking and financial service stocks in a number of markets enhanced results as interest rates declined on a global basis over the period. As well, our strategy in the Japanese market also contributed to results. ============================================================= INTERNATIONAL EQUITY ============================================================= AVERAGE ANNUAL TOTAL RETURN1 - ------------------------------------------------------------- One Annualized Annualized Annualized Year 3 Year 5 Year Inception Return Return Return to Date - ------------------------------------------------------------- Class A 17.30% 10.46% 6.26% 4.44% - ------------------------------------------------------------- Class D 16.77% 10.18% 6.10% 5.13% - ------------------------------------------------------------- Class D, w/load 10.97% 8.31% 5.02% 2.21% - ------------------------------------------------------------- COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN THE INTERNATIONAL EQUITY, CLASS A, OR THE INTERNATIONAL EQUITY, CLASS D, VERSUS THE MORGAN STANLEY MSCI EAFE INDEX [GRAPHIC OMITTED] A line graph depicting the total growth (including reinvestment of dividends and capital gains) of a hypothetical investment of $10,000 in the SEI International Equity Portfolio Class A and the SEI International Equity Portfolio Class D from December 31, 1989 through February 29, 1996 as compared with the growth of a $10,000 investment in the Morgan Stanley MSCI EAFE Index. The plot points used to draw the line graph were as follows: Growth of Growth of Growth of $10,000 $10,000 $10,000 Invested Invested Invested in Measurement Period in Class A Class D the Morgan Stanley (Fiscal Year Covered) Shares Shares MSCI EAFE Index 12/31/89 $10,000 $9,500 $10,000 2/28/90 9,573 9,094 8,957 2/28/91 9,607 9,127 8,751 2/29/92 9,451 8,978 8,101 2/28/93 9,656 9,173 7,766 2/28/94 12,016 11,415 10,809 2/28/95 11,094 10,507 10,329 2/29/96 13,013 12,270 12,059 1 FOR THE PERIOD ENDED FEBRUARY 29, 1996. PAST PERFORMANCE IS NO INDICATION OF FUTURE PERFORMANCE. CLASS D SHARES WERE OFFERED BEGINNING ON MAY 1, 1994. THE PERFORMANCE SHOWN FOR THE CLASS D SHARES PRIOR TO SUCH DATE IS BASED ON THE PERFORMANCE OF CLASS A SHARES ADJUSTED TO REFLECT THE MAXIMUM SALES CHARGE OF 5.0% FOR THE CLASS D SHARES. CLASS A SHARES WERE OFFERED BEGINNING DECEMBER 30, 1989. Overweights to the banking sector in Australia and Hong Kong made a significant contribution to results as the sector led returns in both markets. Australia and New Zealand Bank Group as well as HSBC Holdings (a Hong Kong banking group) were also among the best performing stocks in the Portfolio over the past year. 5 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FUND PERFORMANCE ================================================================================ SEI INTERNATIONAL TRUST -- FEBRUARY 29, 1996 INTERNATIONAL EQUITY (CONTINUED) [GRAPHIC OMITTED] A line graph depicting the Currency Values of U.S. Dollars versus Major World Currencies for the fiscal year ending February 29, 1996. The plot points are as follows: Dollar/Yen Dollar/Pound Dollar/Mark March 1995 0.1044 0.0240 0.0609 April 1995 0.1293 (0.0179) 0.0523 May 1995 0.1254 0.0028 0.0315 June 1995 0.1246 (0.0069) 0.0550 July 1995 0.0855 0.0081 0.0520 August 1995 (0.0073) (0.0213) (0.0038) September 1995 (0.0300) 0.0000 0.0239 October 1995 (0.0544) (0.0011) 0.0379 November 1995 (0.0558) (0.0335) 0.0111 December 1995 (0.0692) (0.0193) 0.0175 January 1996 (0.1069) (0.0460) (0.0178) February 1996 (0.0885) (0.0332) (0.0074) Our banking strategy also contributed in Japan, however here we were underweight to the benchmark weight during the year. Japanese banks struggled during most of the year under the weight of bad loans accumulated in the late 1980's. As noted in the Equity Markets' Overview, Japanese banks periodically rallied as favorable news was released or anticipated. The group's size in the Index (21% of Japan weight and 8% of EAFE overall) contributed to Japan's dismal showing overall during the year. To maintain some exposure to the sizable Japanese financial service sector, the portfolio emphasized securities' brokers over direct banking participation. This strategy proved advantageous as brokers posted sharp gains over the year, rallying off depressed bases with a revival in trading activity in the market. Daiwa Securities and Nikko Securities were among the better performing stocks in the portfolio over the past year. Elsewhere in Japan, an emphasis on dollar-sensitive shares such as electronics manufacturers contributed to relative returns as the yen depreciated against the dollar. In December 1995, two enhancements were made that are expected to strengthen the fund and will focus the fund's strategy on exploiting opportunities provided by market inefficiencies. First, we eliminated our commitment to active country-selection portfolio management strategies. Historically, investment processes that focus on selecting attractive stocks within markets have produced more favorable results than strategies built around active shifts in country weights. We also increased our commitment to non-U.S. small cap shares and introduced a dedicated strategy for investing in this area of the market. Small cap stocks overseas, as in the U.S., tend to be less widely followed than blue-chips and offer an opportunity for premium returns for stock selectors. In addition, small shares are less sensitive to global trends and offer important diversification benefits to an investor. PORTFOLIO MARKET ALLOCATIONS VERSUS MSCI EAFE INDEX FEBRUARY 29, 1996 FEBRUARY 28, 1995 ------------------- ----------------- PORTFOLIO EAFE PORTFOLIO EAFE --------- ------ ---------- ------ Australia 4.1% 2.7% 7.0% 4.8% Belgium 2.0% 1.2% 2.9% 0.8% Canada 2.6% 0.0% 2.6% 1.1% France 10.3% 6.4% 10.4% 7.8% Germany 6.7% 6.7% 4.1% 6.9% Hong Kong 2.8% 3.3% 2.6% 4.2% Italy 1.4% 2.2% 2.8% 2.3% Japan 35.2% 42.2% 30.7% 32.1% Netherlands 4.1% 3.9% 3.7% 6.0% New Zealand 0.5% 0.5% 3.0% 0.8% Spain 3.6% 1.7% 2.5% 2.8% Sweden 1.0% 1.7% 1.0% 2.5% Switzerland 3.2% 5.3% 2.5% 4.5% United Kingdom 12.0% 16.5% 17.5% 14.9% All Other 5.0% 5.7% 5.1% 8.5% Cash 5.5% 0.0% 1.6% 0.0% ---------- ------ ---------- ------ 100.0% 100.0% 100.0% 100.0% 6 EUROPEAN EQUITY PORTFOLIO OBJECTIVES. The European Equity Portfolio seeks to provide long-term capital appreciation by investing primarily in a diversified portfolio of equity securities of European issuers. STRATEGY. The adviser utilizes a "bottom-up" stock driven approach to managing the Portfolio. A country overlay is placed upon the firm's fundamental stock research to derive the final portfolio construction which is typically invested in 90 growth stocks across 12 markets. Additionally, the Portfolio will have a medium to small capitalization bias. ANALYSIS. The European Equity Portfolio returned 25.2% for the twelve months ended February 29, 1996. In comparison, the MSCI Europe Index managed a gain of 22.8%. Stock selection in a handful of markets contributed to relative results. As noted in the Equity Markets' Overview, economic growth across Europe slowed during 1995, prompting the region's central banks to make a series of rate cuts in an attempt to revive the pace of expansion. In this environment, less economically-sensitive shares and growth stocks (companies that produce stable earnings' gains irrespective of the macroeconomic environment) flourished. The Portfolio, with its growth focus, was positioned to benefit from this environment. In Germany, our holding in SAP, a software development company, produced a substantial gain and was among the portfolio's leading contributors. As well, managed health-care provider Rhon-Klinikum rallied sharply during the year. Health care stocks also drove results in the United Kingdom where the sector entered a period of consolidation and merger. Our holdings in Smithkline Beecham and Glaxo allowed us to participate in this trend. With the British economy past its peak, our holdings emphasized recreational, leisure and other "late-cycle" shares. Our holdings in British Sky Broadcasting (television services) and Granada Group (production company) provided a boost to the portfolio. Elsewhere in Europe, our position in Gas Natural of Spain was a prime beneficiary of the government's plan to build the energy infrastructure of the country's rural areas, while in Austria, steel mill designer V.A. Technologie saw increased demand for its services in areas of eastern Europe. Looking ahead, the Portfolio is positioned for a continuation of the low-inflation, low-growth environment of the past year. In this environment, investors are likely to place a premium on companies that produce earnings' gains, endorsing the growth-bias of the portfolio. ========================================================== EUROPEAN EQUITY ========================================================== AVERAGE ANNUAL TOTAL RETURN1 - ---------------------------------------------------------- One Annualized Year Inception Return to Date - ---------------------------------------------------------- European Equity, Class A 25.15% 12.75% - ---------------------------------------------------------- COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN THE EUROPEAN EQUITY, CLASS A, VERSUS THE MORGAN STANLEY MSCI EUROPE INDEX [GRAPHIC OMITTED] A line graph depicting the total growth (including reinvestment of dividends and capital gains) of a hypothetical investment of $10,000 in the SEI European Equity Portfolio Class A from April 30, 1994 through February 29, 1996 as compared with the growth of a $10,000 investment in the Morgan Stanley MSCI Europe Index. The plot points used to draw the line graph were as follows: Growth of Growth of $10,000 $10,000 Invested Invested in in the SEI Morgan Stanley Measurement Period European Portfolio MSCI Europe (Fiscal Year Covered) Class A Index 4/30/94 $10,000 $10,000 2/28/95 9,959 10,118 2/29/96 12,463 12,436 1 FOR THE PERIOD ENDED FEBRUARY 29, 1996. PAST PERFORMANCE IS NO INDICATION OF FUTURE PERFORMANCE. CLASS A SHARES WERE OFFERED BEGINNING APRIL 29, 1994. 7 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FUND PERFORMANCE ================================================================================ SEI INTERNATIONAL TRUST -- FEBRUARY 29, 1996 EUROPEAN EQUITY (CONTINUED) PORTFOLIO MARKET ALLOCATIONS VERSUS MSCI EUROPE INDEX FEBRUARY 29, 1996 FEBRUARY 28, 1995 ------------------- ----------------- PORTFOLIO EAFE PORTFOLIO EAFE ---------- -------- ---------- ------ Austria 0.0% 0.0% 0.0% 0.9% Belgium 1.8% 2.5% 1.3% 2.4% Denmark 2.0% 1.6% 1.1% 1.7% Finland 1.0% 1.4% 1.2% 1.2% France 14.7% 13.0% 9.8% 12.4% Germany 9.2% 14.0% 9.5% 15.0% Ireland 0.0% 0.0% 0.0% 0.6% Italy 3.6% 4.7% 2.7% 4.9% Netherlands 10.1% 8.1% 5.4% 8.2% Norway 1.2% 0.9% 1.8% 0.9% Spain 7.8% 3.5% 6.6% 3.5% Sweden 6.4% 3.5% 9.7% 3.7% Switzerland 5.7% 11.1% 7.2% 10.7% United Kingdom 29.3% 34.3% 35.5% 33.9% All Other 0.0% 1.4% 0.0% 0.0% Cash 7.2% 0.0% 8.2% 0.0% ---------- ------ ---------- ------ 100.0% 100.0% 100.0% 100.0% PACIFIC BASIN EQUITY PORTFOLIO OBJECTIVES. The Pacific Basin Equity Portfolio seeks to provide long-term capital appreciation by investing primarily in a diversified portfolio of equity securities of Pacific Basin issuers. STRATEGY. The adviser adopts a combined "top-down", "bottom-up" approach to managing the Pacific Basin Equity Portfolio. The Portfolio is typically invested in 12 markets and in 80 to 100 stocks. Further diversification is provided by investment in a wide range of capitalization stocks. ANALYSIS. Launched on April 29, 1994, the Pacific Basin Equity Portfolio has returned (0.67%) since its inception. During the past twelve months, the Portfolio outperformed its benchmark, the Morgan Stanley MSCI Pacific Index by 4.46%, returning 15.96% versus 11.50%. Within Japan, the Portfolio emphasized consumer goods and economically sensitive issues on the hopes of an economic recovery, as well as exporters in anticipation of a fall in the value of the yen. Sluggish growth that has dominated Japan since the economic bubble burst in early 1990 and a persistently strong yen had undermined these premises. During the first half of 1995, performance in Japan was hampered by a confluence of specific and unrelated events beginning January, which led to significant underperformance during the first half of 1995. On January 17, 1995, the region of Osaka, centered around the city of Kobe was hit by a devastating earthquake. Over the next few weeks, construction issues were bid up on the assumption of increased earnings through the rebuilding of the Osaka region. The Portfolio was underweight in these issues as, absent the earthquake, fundamentals did not warrant investment. In addition, the region is a hub for overseas shipping which adversely affected the Portfolio given its bias toward exporters. Separately, during the last week of January 1995, Sumitomo Bank announced that it would report a net loss for the first time since World War II. On the announcement, the banking sector rose just over ten percent on speculation that the rest of the banking sector would begin to finally write-off bad loans acquired during the bubble economy years and reinvigorate the waning Japanese banking market. Banking related issues represent thirty percent of the Japanese market and, again reflecting an assessment of weak fundamentals, the Portfolio was significantly underweight. These events, plus the persistent appreciation of the yen, eventually to just under (YEN)80/U.S. $ by June of 1995, were the main reasons that the Portfolio underperformed during the first half of the year. 8 PACIFIC BASIN EQUITY (CONTINUED) ========================================================== PACIFIC BASIN EQUITY ========================================================== AVERAGE ANNUAL TOTAL RETURN1 - ---------------------------------------------------------- One Annualized Year Inception Return to Date - ---------------------------------------------------------- Pacific Basin Equity, Class A 15.96% 0.67% - ---------------------------------------------------------- COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN THE PACIFIC BASIN EQUITY, CLASS A, VERSUS THE MORGAN STANLEY MSCI PACIFIC INDEX [GRAPHIC OMITTED] A line graph depicting the total growth (including reinvestment of dividends and capital gains) of a hypothetical investment of $10,000 in the SEI Pacific Basin Equity Portfolio Class A from April 30, 1994 through February 29, 1996 as compared with the growth of a $10,000 investment in the Morgan Stanley MSCI Pacific Index. The plot points used to draw the line graph were as follows: Growth of Growth of $10,000 $10,000 Invested Invested in in the SEI Pacific Morgan Stanley Measurement Period Basin Portfolio MSCI Pacific (Fiscal Year Covered) Class A Index 4/30/94 $10,000 $10,000 2/28/95 8,730 9,137 2/29/96 10,124 10,188 1 FOR THE PERIOD ENDED FEBRUARY 29, 1996. PAST PERFORMANCE IS NO INDICATION OF FUTURE PERFORMANCE. CLASS A SHARES WERE OFFERED BEGINNING APRIL 29, 1994. However, during the second half of 1995, and the first few months of 1996, the investment climate took a turn for the better. The yen, under pressure from the Bank of Japan, fell off its record highs, and eventually settled just above the (YEN)100/U.S. $ by the close of trading in 1995. The Japanese government announced its economic stimulus and budget packages, as well as a bad loan rescue plan towards the end of the year, helping to buoy the markets under the anticipation of a change in the economic climate. The Portfolio was positioned to outperform during this type of economic climate, and did so dramatically, with the help of the partial yen hedge during July and August. The Portfolio's Hong Kong exposure, whose average weight has been maintained at nearly twice the benchmark exposure, enhanced performance for the balance of the fiscal year. During the past twelve months, the Hong Kong market gained almost 30%, after a recovery in dragging property market values took hold, and the yen weakened back to (YEN)100/U.S. $ levels. The Portfolio's Hong Kong representation is highly concentrated in Hang Seng securities, which is dominated by property stocks which recovered during the second half of 1995 after good earnings reports and lower interest rates on the backs of U.S. interest rate declines. PORTFOLIO MARKET ALLOCATIONS VERSUS MSCI PACIFIC INDEX FEBRUARY 29, 1996 FEBRUARY 28, 1995 ------------------- ------------------- PORTFOLIO EAFE PORTFOLIO EAFE ---------- ------ --------- ------ Australia 6.2% 4.9% 4.7% 5.1% Hong Kong 10.0% 6.1% 10.1% 5.9% Japan 68.8% 81.1% 62.0% 81.4% Malaysia 4.5% 4.7% 3.9% 4.6% New Zealand 0.9% 0.8% 1.7% 0.8% Singapore 5.9% 2.4% 4.1% 2.2% South Korea 0.0% 0.0% 7.2% 0.0% All Other 0.0% 0.0% 0.0% 0.0% Cash 3.7% 0.0% 6.3% 0.0% ------ ------ ------ ------ 100.0% 100.0% 100.0% 100.0% EMERGING MARKETS EQUITY PORTFOLIO OBJECTIVES. The Emerging Markets Equity Portfolio seeks to provide long-term capital appreciation by investing primarily in a diversified fund of equity securities of emerging market issuers. STRATEGY. The adviser employs a combined top-down country allocation with a bottom-up fundamental industry analysis and stock selection approach to managing emerging market 9 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FUND PERFORMANCE ================================================================================ SEI INTERNATIONAL TRUST -- FEBRUARY 29, 1996 EMERGING MARKETS EQUITY (CONTINUED) equity funds. The adviser uses a quantitative asset allocation model that attempts to maximize expected return for a given risk level. Additionally, the Portfolio will have a medium to large capitalization bias. The Portfolio will be typically invested in 17 emerging markets and in countries that the adviser expects to have the highest risk/reward tradeoff. ANALYSIS. The Emerging Markets Equity Portfolio returned 6.8% for the year ended February 29, 1996. The performance of the Portfolio lagged its benchmark, the IFC Investable Composite Index, which ended the past 12 months up 13.4%. The Portfolio's underweight to the Europe/MidEast/Africa regions, which over the past year gained 33.9%, was the main cause of underperformance. The emerging markets experienced broad based positive returns over the previous twelve months as liquidity from foreign investors increased dramatically and drove equity markets higher. Only a handful of bourses had negative returns over the previous year, Colombia (26.4%) and Taiwan (30.9%) were the worst performers both plagued by political concerns. Within Colombia, President Samper has been charged with accepting funding for his campaign from the Cali drug cartel. Taiwan has been beaten down over the past twelve months due to threats from China in the form of military exercises. The returns of the Europe/MidEast/Africa regions were driven mainly by the Eastern European markets where Poland, Hungary and Turkey all increased more than 40%. ========================================================= EMERGING MARKETS EQUITY ========================================================= AVERAGE ANNUAL TOTAL RETURN1 - --------------------------------------------------------- One Annualized Year Inception Return to Date - --------------------------------------------------------- Emerging Markets Equity, Class A 6.83% 8.67% - --------------------------------------------------------- COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN THE EMERGING MARKETS EQUITY, CLASS A, VERSUS THE IFC INVESTABLE COMPOSITE INDEX [GRAPHIC OMITTED] A line graph depicting the total growth (including reinvestment of dividends and capital gains) of a hypothetical investment of $10,000 in the SEI Emerging Markets Equity Portfolio Class A from January 31, 1995 through February 29, 1996 as compared with the growth of a $10,000 investment in the IFC Investable Composite Index. The plot points used to draw the line graph were as follows: Growth of Growth of $10,000 $10,000 Invested Invested in in the SEI Emerging the IFC Measurement Period Markets Equity Portfolio Investable (Fiscal Year Covered) Class A Composite 1/31/95 $10,000 $10,000 2/28/95 10,138 9,860 2/29/96 10,830 11,190 1 FOR THE PERIOD ENDED FEBRUARY 29, 1996. PAST PERFORMANCE IS NO INDICATION OF FUTURE PERFORMANCE. CLASS A SHARES WERE OFFERED BEGINNING JANUARY 17, 1995. The Portfolio underperformed its benchmark, the IFC Investable Composite Index by 650 basis points. The main detractor of performance over the past year was the Portfolio's cash position. Due to the length of time it takes to get invested in some of the emerging markets and the Portfolio's inception date of January, 1995, the Portfolio had a larger than normal cash position for a short time. Country allocation and stock selection also caused a drag on performance. The Portfolio's underweight to South Africa, which was added to the IFC Investable Composite Index on April 1 at a weight of 26%, had a negative impact on returns. 10 EMERGING MARKETS EQUITY (CONTINUED) The South African market, which had been closed to foreign investors for 30 years, increased 40% due to new foreign capital flows combined with a positive macroeconomic outlook. The Portfolio's underweight to Mexico, which bounced back almost 40% last year, also detracted from performance. Overweights to Argentina, Peru and Indonesia added 102 basis points over the past 12 months. The strategy is currently focused on exposure to the larger, more liquid markets and the larger capitalization securities within the markets. After a 30% year in the U.S. market and strong market performance across Europe, combined with expectations of slower growth within the developed countries in 1996, the emerging markets are expected to experience large cash inflows from foreign investors. The Portfolio's increased exposure to large capitalization, liquid securities will benefit shareholders in the coming year. INTERNATIONAL FIXED INCOME PORTFOLIO OBJECTIVE. The International Fixed Income Portfolio seeks to provide capital appreciation and current income through investments in fixed income securities of non-U.S. issuers. The Portfolio 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 Portfolio invests primarily in high-quality, non-U.S. dollar denominated government and corporate debt obligations. There are no restrictions on the Portfolio's average maturity, although the duration is expected to range between one and nine years. STRATEGY. Portfolio construction entails a two-stage process which combines fundamental macroeconomic analysis and technical price analysis. First, a fundamental judgment is made about the direction of a market's interest rates and its currency. A technical price overlay is then applied to the fundamental position to ensure that the Portfolio is not substantially overweighted in a declining market or underweighted in a rising one. Country and currency allocations are made separately. As a result, the Portfolio's currency exposure may differ from its underlying bond holdings. Investments will generally be diversified across 6 to 12 countries with continual exposure to 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 Portfolio's benchmark index. Currency exposure is actively managed to maximize return through the use of forward currency contracts and cross-currency hedging techniques. ANALYSIS: The International Fixed Income Portfolio returned 13.96% for the year ended February 29, 1996, outperforming the Salomon Brothers non-U.S. Government Bond Index, which returned 11.57%. Currency strategies and a long duration relative to the benchmark index were the primary contributors to outperformance. Foreign exchange rates exhibited sharp volatility over the fiscal year, beginning with a precipitous drop in the value of the dollar in the Spring of 1995. The dollar/yen exchange rate reached a post-World War II low of approximately 80(YEN) per dollar, and most other world currencies reached similar record levels. The 11 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FUND PERFORMANCE ================================================================================ SEI INTERNATIONAL TRUST -- FEBRUARY 29, 1996 INTERNATIONAL FIXED INCOME (CONTINUED) Portfolio was well positioned for the depreciating dollar, with little exposure to the dollar and an overweight to the strong performing Japanese yen during the Spring. Sentiment on the dollar changed dramatically during the summer, however, as the central banks joined forces to lift the dollar. The Portfolio generated the majority of its outperformance for the year during the summer months, as an extreme underweight to the yen protected the Portfolio from currency losses. By February 29, 1996, the dollar was trading at stronger levels than a year earlier. Bond markets enjoyed a strong recovery from 1994's weak performance. As economic data failed to show signs of surging growth or inflation, market expectations shifted to a low-growth, modest inflation outlook. With the exception of Japan, all bond markets posted double-digit returns during the period. A long relative duration throughout the period and tactical shifts among the markets generated outperformance relative to the benchmark index. ============================================================ INTERNATIONAL FIXED INCOME ============================================================ AVERAGE ANNUAL TOTAL RETURN1 - ------------------------------------------------------------ One Annualized Year Inception Return to Date - ------------------------------------------------------------ International Fixed Income, Class A 13.96% 10.24% - ------------------------------------------------------------ COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN THE INTERNATIONAL FIXED INCOME PORTFOLIO, CLASS A, VERSUS THE SALOMON WGBI, NON-U.S., UNHEDGED [GRAPHIC OMITTED] A line graph depicting the total growth (including reinvestment of dividends and capital gains) of a hypothetical investment of $10,000 in the SEI International Fixed Income Portfolio Class A from September 30, 1993 through February 29, 1996 as compared with the growth of a $10,000 investment in the Salomon WGBI, Non-U.S., Unhedged Index. The plot points used to draw the line graph were as follows: Growth of Growth of $10,000 $10,000 Invested Invested in in the SEI International Salomon WGBI Measurement Period Fixed Income Portfolio Non-U.S., Unhedged (Fiscal Year Covered) Class A Index 9/30/93 $10,000 $10,000 2/28/94 10,087 10,089 2/28/95 10,937 11,156 2/29/96 12,464 12,448 1 FOR THE PERIOD ENDED FEBRUARY 29, 1996. PAST PERFORMANCE IS NO INDICATION OF FUTURE PERFORMANCE. CLASS A SHARES WERE OFFERED BEGINNING SEPTEMBER 1, 1993. MARKET ALLOCATIONS AND PORTFOLIO DURATION VERSUS THE SALOMON NON-U.S. WORLD GOVERNMENT BOND INDEX MARKET WEIGHTING DURATION ---------------- --------------- FUND INDEX FUND INDEX ------ ------ ---- ----- Japan 25.62 30.48 5.14 5.54 Germany 32.89 16.12 4.50 4.20 France -4.03 11.29 4.67 4.97 Italy 9.76 9.19 5.28 3.20 UK 2.82 7.70 7.03 5.68 Netherlands 2.91 5.33 4.06 5.19 Canada 2.01 4.48 9.65 5.00 Belgium -0.36 4.11 2.59 4.51 Spain 5.81 3.70 4.10 3.58 Denmark 6.63 2.41 7.50 4.41 Sweden 1.59 2.38 3.45 4.23 Australia 1.31 1.51 4.80 4.26 Austria 0.00 1.30 0.00 4.23 Switzerland -3.54 0.00 0.00 -- Norway 1.92 0.00 4.61 -- ECU 0.30 0.00 0.00 -- USA 14.36 0.00 0.52 -- ------ ------ 100.0% 100.0% 12 STATEMENT OF NET ASSETS ================================================================================ SEI INTERNATIONAL TRUST -- FEBRUARY 29, 1996 INTERNATIONAL EQUITY PORTFOLIO - -------------------------------------------------------------------------------- MARKET DESCRIPTION SHARES VALUE (000) - -------------------------------------------------------------------------------- FOREIGN COMMON STOCKS -- 94.4% AUSTRALIA -- 4.0% Advance Bank Australia 304,200 $ 1,320 Australia & New Zealand Bank 494,627 2,430 Commonwealth Bank of Australia 161,600 1,336 Foodland 100,600 377 Futuris 64,900 78 Incitec 70,800 333 National Australia Bank 313,872 3,009 Pacific Magazines & Print 55,500 138 Pioneer 704,100 2,087 Rothmans Holdings 78,500 360 Westpac Banking 516,207 2,437 -------- 13,905 -------- AUSTRIA -- 0.1% SCA Laakirchen 100 37 Vorarlberger Kraftwerke 600 183 -------- 220 -------- BELGIUM -- 1.9% Arbed 3,200 351 CMB 3,700 304 Cockerill Sambre 30,000 175 Electrabel 9,400 2,157 Gevaert 1,000 63 Glaverbel 1,400 162 Immobiliere de Belgique 700 51 Kredietbank 5,600 1,541 Solvay 1,500 885 Tractabel 3,000 1,232 -------- 6,921 -------- CANADA -- 2.5% Bank of Montreal 20,300 471 Bank of Nova Scotia 86,900 1,947 Canadian Imperial Bank 71,200 2,114 Canfor 10,600 99 Cascades 21,400 97 CCL Industries "B" 15,400 136 Celanese Canada 4,300 74 Dominion Textile 14,500 74 London Insurance 13,900 284 MacMillan Bloedel 29,300 374 Nova 50,800 449 Oshawa Group 20,300 338 Royal Bank of Canada 43,200 988 Slocan Forest Products 12,600 117 Stelco 37,000 158 Toronto Dominion 43,900 744 Total Petroleum 7,400 61 West Fraser Timber 7,000 154 -------- 8,679 -------- - -------------------------------------------------------------------------------- MARKET DESCRIPTION SHARES VALUE (000) - -------------------------------------------------------------------------------- FINLAND -- 0.1% Enso-Gutzeit "A" 47,600 $ 332 -------- FRANCE -- 10.0% Accor 11,650 1,642 Alcatel Alsthom 26,400 2,343 Bollore Technologies 2,350 262 Bongrain 350 199 Canal Plus 7,200 1,285 Cap Gemini Sogeti 9,550 294 Casino 5,850 203 Christian Dior 16,450 1,979 CIC Union Europe 1,300 94 Colas 2,050 374 Credit Commerce France 29,900 1,424 Credit Lyonnais 12,200 598 Credit National 4,950 388 C.G.I.P. 1,800 447 De Dietrich et Compagnie 3,400 182 Devanlay 600 60 Ecco 2,450 500 Ecia 550 81 Eiffage 1,650 246 Elf Aquitaine 38,691 2,671 Elf Gabon 600 101 Eramet 1,550 112 Eridania Beghin Say 8,800 1,512 Financiere Poliet 3,750 370 Gaumont 4,700 343 La Rochette 8,450 58 Lafarge 31,515 2,169 Lagardere Groupe 14,250 382 Legris Industries 2,450 97 Manitou 800 103 Marine Wendel 4,650 369 Michelin "B" 16,200 726 Parisienne de Rees 2,000 171 Pernod Ricard 14,200 892 Peugeot 12,000 1,796 Pinault Printemps 7,600 1,802 Publicis 900 65 Saint Gobain 20,250 2,612 Saint Louis-Bouchon 1,100 349 Salomon 350 205 SAT 550 225 Scac Delmas Viel 521 81 SGE 4,500 105 Skis Rossingnol 700 240 Sommer Allibert 1,300 398 Thomson 35,050 899 Total Compaigne "B" 37,637 2,485 UIF 800 71 Union Assurances Federal 3,500 389 Usinor Sacilor* 32,250 504 Vallourec 6,200 267 -------- 35,170 -------- 13 STATEMENT OF NET ASSETS ================================================================================ SEI INTERNATIONAL TRUST -- FEBRUARY 29, 1996 INTERNATIONAL EQUITY PORTFOLIO--CONTINUED - -------------------------------------------------------------------------------- MARKET DESCRIPTION SHARES VALUE (000) - -------------------------------------------------------------------------------- GERMANY -- 6.4% Aachener & Muenchener 400 $ 172 Agiv 18,900 337 Andrea-Noris Zahn 1,050 304 Audi 143 55 BASF 11,600 2,912 Bayer 11,017 3,379 BHF Bank 9,550 266 Bremer Vulkan 12,800 194 Commerzbank 7,450 1,711 Continental 19,900 339 DBV Holding 1,000 319 Deutche Pfandrbrief & Hypotheken Bank 5,350 207 Draegerwerk 350 63 Dyckerhoff 1,150 270 Dywidag 450 71 Escada 350 62 Franfurt Hypothekenbank Centralboden 465 20 Heidelberger 700 457 Herlitz 1,000 139 Hoechst 7,350 2,321 Kabelmetall 1,150 102 Kaufhof 500 159 Kaufring 900 60 Kloeckner-Werke 3,850 136 Kolbenschmidt 800 109 Lehnkering 500 77 Man 2,000 569 Nuernberger BET 50 36 Praktiker Bau-Und Heimwerker 11,450 291 Preussag 4,900 1,457 Salamander 1,050 159 Varta 900 164 Veba 52,100 2,457 Viag 450 193 Villeroy and Boch 1,900 270 Volksfursorge 1,200 378 Volkswagen 4,950 1,887 -------- 22,102 -------- HONG KONG -- 2.7% Cathay Pacific Airways 884,000 1,618 Dickson Concepts 117,000 120 Hang Lung Development 234,000 437 Hong Kong Aircraft Engineering 44,800 131 Hong Kong Ferry 144,000 152 HSBC Holdings 253,200 4,061 Jardine International Motor 288,000 399 Kowloon Motor 213,600 363 Kumagai Gumi 467,400 429 Lai Sun Garment 318,000 387 Liu Chong Hing 84,000 97 - -------------------------------------------------------------------------------- MARKET DESCRIPTION SHARES VALUE (000) - -------------------------------------------------------------------------------- Peregrine Investment Holdings 222,000 $ 379 Top Glory 1,292,000 147 Union Bank Hong Kong 85,000 100 Wing Hang Bank 44,000 183 Wing Lung Bank 24,000 168 Yue Yuen 372,000 95 -------- 9,266 -------- ITALY -- 1.1% Banca Popolare Bergamo 22,100 362 Banca Popolare di Milano 53,800 249 Burgo (Cartiere) 10,700 58 Parmalat Finanziaria 387,800 361 SAI di Risp 67,700 295 Telecom Italia 1,268,300 1,748 Telecom Italia di Risp 241,700 270 Telecom Italia Mobile 22,700 42 Toro Assicurazioni 18,800 251 Unipol 12,700 61 -------- 3,697 -------- JAPAN -- 35.0% Aderans 15,000 281 Aichi Toyota Motor 35,000 503 Airport Facilities 61,000 484 Ariake Japan 7,000 260 Asahi Bank 141,000 1,652 Ashikaga Bank 77,000 466 Autobac Seven 4,600 370 Bank of Fukuoka 34,000 261 Canon 93,000 1,709 Chain Store Okuwa 19,000 268 Charle 21,000 300 Chiba Kogyo Bank 100 4 Chuba Electric Power 36,000 833 Chubu Nippon Broadcasting 14,600 327 Cosmo Oil 262,000 1,442 Dai Ichi Pharmaceutical 93,000 1,435 Dai Nippon Ink & Chemical 175,000 797 Dai Nippon Printing 129,000 2,224 Dai Tokyo Fire & Marine Insurance 140,000 1,020 Daidoh 47,000 363 Dai-Ichi Kangyo Bank 169,000 3,171 Daiwa Bank 40,000 270 Daiwa Securities 177,000 2,495 Fuji Photo Film 83,000 2,356 Fujitsu 216,000 2,222 Fujitsu Kiden 28,000 368 General Sekiyu 46,000 442 Glory 17,000 560 Gunma Bank 136,000 1,451 Hachijuni Bank 52,000 555 Hanshin Electric Railway 81,000 339 14 - -------------------------------------------------------------------------------- MARKET DESCRIPTION SHARES VALUE (000) - -------------------------------------------------------------------------------- Heiwa 60,000 $ 1,446 Hirose Electric 8,000 453 Hitachi 317,000 3,200 Hitachi Transport System 66,000 666 Hokuriko Bank 67,000 381 Honda Motor 117,000 2,485 Ichiyoshi Securities 50,000 321 Inabata 59,000 423 Isetan 59,000 742 Itariyard 8,000 274 Japan Airport Terminal 38,000 463 Japan Maintenance 11,250 209 Kahma 8,400 146 Kansai Kosaido 19,000 275 Kansei 53,000 447 Kirin Brewery 192,000 2,231 Kokusai Securities 59,000 877 Komatsu Forklift 89,000 606 Kurogane Kosakusho 24,000 143 Kyocera 24,000 1,646 Kyushu Electric Power 64,300 1,482 Long Term Credit Bank 241,000 1,836 Mabuchi Motor 8,000 491 Mandom 17,000 240 Matsushita Electric 208,000 3,328 Meiko Shokai 11,000 402 Mitsubishi Bank 155,000 3,174 Mitsubishi Electric 245,000 1,797 Mitsubishi Oil 155,000 1,342 Mitsui Marine & Fire 214,000 1,559 Mitsui Trust & Banking 206,000 2,119 NAC 8,000 200 Nagaileben 8,000 283 Nagase 40,000 373 Nakabohtec Corrosion Protecting 27,000 327 NEC 75,000 893 New Family 24,000 215 Nichimen Infinity 13,000 254 Nihon Dempa Kogyo 12,000 238 Nikko Securities 200,000 2,267 Nintendo 9,700 656 Nippon Cable System 33,000 295 Nippon Credit Bank 284,000 1,109 Nippon Meat Packers 85,000 1,247 Nippon Oil 278,000 1,673 Nippon Yusoki 30,000 154 Nissan Fire & Marine Insurance 43,000 301 Nissan Motors 115,000 892 Nittetsu Mining 65,000 619 Nittetsu Shoji 50,000 160 Okinawa Electric Power 13,000 370 Paris Miki 6,800 230 Pioneer Electronics 84,000 1,688 RKB Mainichi Broadcasting 20,000 162 Rohm 22,000 1,309 Sakura Bank 228,000 2,475 - -------------------------------------------------------------------------------- MARKET DESCRIPTION SHARES VALUE (000) - -------------------------------------------------------------------------------- Sanawa Shutter 40,000 $ 326 Sankei Building 41,000 348 Sanki Engineering 45,000 561 Sanseido 22,000 289 Santen Pharmaceutical 11,000 246 Sanyo Shinpan 11,000 807 Satoh & Company 11,000 178 Sekisui House 112,000 1,397 Shikoku Electric Power 65,000 1,498 Shimachu 6,000 174 Shimamura 9,000 334 Shiseido 120,000 1,360 Shizuoka Bank 127,000 1,572 Showa Shell Sekiyo 147,000 1,358 Sintokogio 23,000 201 SK Kaken 18,000 401 Sugimoto 1,000 17 Sumitomo 153,000 1,545 Sumitomo Bank 82,000 1,562 Sumitomo Marine and Fire Insurance 178,000 1,521 Sumitomo Realty & Development 257,000 1,750 Tachibana Shokai 39,000 368 Taisei 53,000 346 Takano 23,000 519 Takeda Chemical Industries 150,000 2,414 TDK 28,000 1,413 Toho 5,000 824 Tohoku Electric Power 76,000 1,781 Tohoku Misawa Home 30,000 380 Tokushu Paper 30,000 317 Tokyo Electric Power 50,200 1,310 Tokyo Soir 8,000 48 Tokyo Steel 300 6 Tokyo Tungsten 17,000 160 Tokyotokeiba 107,000 469 Toppan Printing 120,000 1,565 Toshiba 270,000 2,091 Totech 12,000 85 Toyo Bussan 26,000 314 Toyo Seikan Kaisha 12,000 374 Trusco Nakayama 24,000 567 Tsubakimoto Precision 37,000 447 Tsutsumi Jewelry 7,000 371 Yamaichi Securities 271,000 1,964 Yamanouchi Pharmaceutical 67,000 1,499 Yamazaki Baking 39,000 695 Yodogawa Steel Works 43,000 339 Yokohoma 20,000 259 Yonex 23,000 261 Yukiguni Maitake 18,700 187 Yushiro Chemical 30,000 289 -------- 121,929 -------- 15 STATEMENT OF NET ASSETS ================================================================================ SEI INTERNATIONAL TRUST -- FEBRUARY 29, 1996 INTERNATIONAL EQUITY PORTFOLIO--CONTINUED - -------------------------------------------------------------------------------- MARKET DESCRIPTION SHARES VALUE (000) - -------------------------------------------------------------------------------- MALAYSIA -- 2.6% Arab Malaysian 100,000 $ 351 Berjaya Group Berhad 527,000 341 Berjaya Singer 82,000 80 Bousted 166,000 349 Cement Industries 18,000 58 Datuk Keramat Holdings 132,000 247 Edaran Otomobil 69,000 512 Faber Group* 655,000 643 IOI Properties 141,900 342 Kuala Lumpur Kepong Berhad 155,000 490 Land and General 202,000 452 Malaysian Airline System 83,000 277 Malaysian International Shipping 668,000 1,861 MBF Capital 458,000 536 Negara Properties 10,000 35 Oriental Holdings 47,000 240 Rashid Hussain 525,000 1,638 Southern Bank 104,000 212 Westmont Berhad Industries 140,000 313 -------- 8,977 -------- NETHERLANDS -- 4.0% ABN-Amro Holdings 51,400 2,390 Beers 800 131 Dordtsche Petroleum 6,800 996 Draka 4,500 128 DSM 3,900 365 Eriks 600 52 EVC 9,300 301 GTI 800 68 Hollandsche Beton Groep 2,400 376 Hoogovens 7,500 302 Inter Muller 4,300 314 International Nederlanden Groep 52,717 3,502 KLM 16,400 546 Koninklijke Bijenkorf Beh 1,500 97 KPN 44,400 1,784 National Invest Bank 4,600 339 Nedlloyd Groep 12,700 277 Nijverdal Tencate 1,800 78 NKF Holding 1,000 171 Phillips Electronics 11,400 475 Polynorm 500 47 Schuitema 100 120 Stad Rotterdam 10,200 320 Telegraaf 300 47 Van Der Moolen 1,500 59 Vendex International N.V. 5,600 163 Volker Stevin 5,700 360 -------- 13,808 -------- - -------------------------------------------------------------------------------- MARKET DESCRIPTION SHARES VALUE (000) - -------------------------------------------------------------------------------- NEW ZEALAND -- 0.4% Fisher & Paykel Industries 117,300 $ 355 Independent Newspaper 14,600 50 Lion Nathan 498,600 1,090 -------- 1,495 -------- NORWAY -- 1.0% Den Norske Bank 170,909 555 Den Norske Luft 4,400 202 Dyno Industrier 12,200 259 Elkem "A" 27,500 331 Kvaerner "B" 21,200 614 Leif Hoegh & Company 8,200 119 Norske Skog 48,600 1,465 -------- 3,545 -------- SINGAPORE -- 2.2% Bat 78,000 309 City Developments 68,000 554 Fraser and Neave 124,000 1,660 Goldtron 260,000 238 Haw Par Brothers 19,000 43 Hotel Properties 201,000 365 Inchcape Berhad 22,000 76 Industrial & Commercial Bank 68,000 275 Jardine Matheson Holdings 53,100 425 Jurong Engineering 15,000 83 Keppel 76,000 770 Pacific Carriers 258,000 225 Republic Hotel and Resort 75,000 107 Ssangyong Cement 57,000 168 United Overseas Bank 231,600 2,477 -------- 7,775 -------- SPAIN -- 3.5% Acerinox 4,600 445 Azucarera Espana 2,600 90 Banco Bilbao-Vizcaya 23,480 915 Banco de Santander 11,760 580 Conserva Campofrio 1,700 58 Cristeria 2,500 160 Cubiertas y Mzov 2,400 155 Empresas Nacional de Cellulosa 10,100 140 G.E.S.A 7,300 388 Iberdrola 270,400 2,666 Porsegur 2,500 91 Repsol 18,540 677 Repsol ADR 37,600 1,363 Telefonica de Espana 166,300 2,735 Uniland 4,000 169 Union Electrica Fenosa 248,100 1,399 -------- 12,031 -------- 16 - -------------------------------------------------------------------------------- MARKET DESCRIPTION SHARES VALUE (000) - -------------------------------------------------------------------------------- SWEDEN -- 1.0% Catena "A" 20,700 $ 156 Celsius Industrier 9,600 264 Industrivarden 5,900 190 Marieberg Tidnings "A" 7,200 192 Mo Och Domsjo "B"* 5,200 257 Perstorp AB "B" 6,600 86 Skane-Gripen "B" 11,400 103 Skanska Free "B" 17,400 544 SSAB "B" 26,000 293 Stora Kopparbergs "A" 80,000 1,032 Svedala AB Free 7,500 231 -------- 3,348 -------- SWITZERLAND -- 3.2% Aare-Tessin 360 258 Alusuisse-Lonza 300 241 Baer Holdings 290 294 Baloise 120 232 Banque Cantonale Vaud 370 102 Bucher Holdings 190 132 Ciba Geigy 3,260 2,914 CS Holdings 27,030 2,577 Daetwyler Holdings 40 79 Elektrowatt "B" 1,120 405 Kuoni Reisen Holdings 110 202 Rieter 900 261 Roche Holdings 394 3,064 Schindler Holdings 170 190 Suedelektra Holdings 160 154 -------- 11,105 -------- UNITED KINGDOM -- 12.7% Adwest Group 25,800 45 Albert Fisher Group 431,500 294 Amec 148,900 227 Anglian Group 51,200 110 Anglian Water 149,000 1,294 ASDA Group 630,000 1,008 Astec 189,200 346 Bridon 35,700 56 British Airways 201,900 1,575 British Gas 40,100 146 British Steel 557,800 1,570 BTR 162,538 803 Bullough 71,300 115 Burn Stewart Distillers 25,200 46 Charter 20,400 264 Cowie Group 56,900 282 Davis Service Group 51,200 186 EIS Group 8,600 51 Frost Group 60,110 117 General Accident 159,500 1,571 - -------------------------------------------------------------------------------- MARKET DESCRIPTION SHARES VALUE (000) - -------------------------------------------------------------------------------- GKN 109,000 $ 1,402 Grampian Holdings 18,700 37 Guardian Royal Exchange 460,300 1,709 Hanson 582,300 1,683 Hunting 73,300 247 Ibstock 52,400 60 IMI 14,400 73 Kwik Save Group 23,900 170 Lex Service 67,100 336 Lloyds TSB Group 411,900 2,073 London International Group 93,100 158 Low & Bonar 9,500 79 M & G Group 5,000 98 MacDonald Martin "A" 4,700 46 Marston Thompson 12,700 67 McKechnie 46,500 331 Mirror Group 141,700 471 National Power 210,400 1,553 National Westminster 215,500 2,280 North West Water Group 164,400 1,460 Northern Foods 23,900 70 Nurdin & Peacock 12,700 29 Ocean Group 42,300 251 Perkins Food 39,900 46 Pilkington 458,600 1,468 Renold 85,500 352 RJB Mining 30,000 244 Royal Bank of Scotland 173,000 1,462 Royal Insurance 283,800 1,649 Salvesen 67,300 275 Scapa Group 69,200 253 Scottish Hydro-Electric 55,600 284 Scottish Power 172,400 970 Sedgwick Group 181,500 367 Severn Trent 136,300 1,298 Shanks & McEwan 86,500 131 South West Water 38,990 293 Southern Water 38,900 394 Staveley Industries 25,500 78 Sutter 39,100 94 Takare 82,400 213 Tate & Lyle 194,200 1,416 Taylor Woodrow 166,100 373 Telewest 122,100 254 Thames Water 223,600 1,822 Tomkins 355,600 1,438 TT Group 41,700 188 Unigate 33,400 227 Vaux Group 46,600 200 Vosper Thornycroft 5,300 68 Waddington (John) 28,300 88 Wardle Storeys 12,400 74 Waste Management 31,600 160 17 STATEMENT OF NET ASSETS ================================================================================ SEI INTERNATIONAL TRUST -- FEBRUARY 29, 1996 INTERNATIONAL EQUITY PORTFOLIO--CONCLUDED - -------------------------------------------------------------------------------- SHARES/FACE MARKET DESCRIPTION AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Welsh Water 34,500 $ 392 Wessex Water 70,700 362 Whitbread "A" 170,000 1,851 Whitecroft 13,300 42 Wolverhampton & Dudley 14,600 141 Yorkshire Water 35,300 336 -------- 44,092 -------- Total Foreign Common Stocks (Cost $302,171) 328,397 -------- FOREIGN PREFERRED STOCKS -- 0.5% GERMANY -- 0.2% Herlitz 550 74 Krones 800 364 Suedzucker 350 186 -------- 624 -------- ITALY -- 0.3% Autostrade 144,900 164 Fiat 482,000 920 -------- 1,084 -------- Total Foreign Preferred Stocks (Cost $1,609) 1,708 -------- REPURCHASE AGREEMENT -- 3.6% J.P. Morgan 5.39%, dated 2/29/96, matures 3/1/96, repurchase price $12,620,407 (collateralized by Government National Mortgage Association with maturities from 10/20/96 to 2/15/26, interest rates from 5.00% to 7.50%, total par value $12,690,086; total market value of collateral $12,890,095) $12,620 12,620 -------- Total Repurchase Agreement (Cost $12,620) 12,620 -------- Total Investments -- 98.5% (Cost $316,400) 342,725 -------- OTHER ASSETS AND LIABILITIES -- 1.5% Other Assets and Liabilities, Net 5,120 -------- NET ASSETS: Portfolio shares of Class A (unlimited authorization -- no par value) based on 34,753,783 outstanding shares of beneficial interest 312,486 - -------------------------------------------------------------------------------- MARKET DESCRIPTION SHARES VALUE (000) - -------------------------------------------------------------------------------- Portfolio shares of Class D (unlimited authorization -- no par value) based on 20,074 outstanding shares of beneficial interest $ 202 Accumulated net realized gain on investments 10,606 Net unrealized depreciation on forward foreign currency contracts, foreign currency and translation of other assets and liabilities in foreign currency (35) Net unrealized appreciation on investments 26,325 Accumulated net investment loss (1,739) -------- Total Net Assets:-- 100.0% $347,845 ======== Net Asset Value, Offering Price and Redemption Price Per Share -- Class A $ 10.00 ======= Net Asset Value, Offering Price and Redemption Price Per Share -- Class D $ 9.93 ======= Maximum Offering Price Per Share-- Class D ($9.93/95%) $ 10.45 ======= * NON-INCOME PRODUCING SECURITY ADR--AMERICAN DEPOSITORY RECEIPT EUROPEAN EQUITY PORTFOLIO FOREIGN COMMON STOCKS -- 94.5% AUSTRIA -- 0.2% VA Technologie 1,120 $ 142 -------- BELGIUM -- 1.8% GIB 29,827 1,418 -------- DENMARK -- 2.0% Den Danske Bank 12,220 830 Kobenhavns Lufthavne 8,540 743 -------- 1,573 -------- FINLAND -- 1.0% Nokia "A" 17,720 608 Nokia AB "K" 4,000 139 -------- 747 -------- THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 18 - -------------------------------------------------------------------------------- MARKET DESCRIPTION SHARES VALUE (000) - -------------------------------------------------------------------------------- FRANCE -- 14.7% Carrefour 1,915 $ 1,293 Castorama Dubois 5,400 1,011 Cetelem 4,244 893 Credit Local de France 11,097 882 Generale des Eaux 15 2 Hermes International 3,500 822 Imetal 5,650 821 LVMH Moet Hennessy 5,095 1,161 Promodes 2,750 750 Sanofi 11,000 764 Scor 17,400 582 Seita 19,200 766 SGS Thomson Micro 26,448 982 Television Francaise 7,000 749 -------- 11,478 -------- GERMANY -- 7.9% Adidas AG 12,800 819 Bayer Vereinsbank 29,000 868 Bayer 3,735 1,145 Gehe AG 1,170 658 SAP 200 31 Siemens 1,710 980 Volkswagen 4,330 1,653 -------- 6,154 -------- ITALY -- 3.6% ENI SPA 298,343 1,133 Stet Soc Fin Telefonica 140,000 428 Telecom Italia Mobile SPA 680,000 1,248 -------- 2,809 -------- NETHERLANDS -- 10.6% ABN-Amro Holdings 17,235 801 Aegon 22,462 967 Ahold 24,111 1,011 Elsevier 99,500 1,409 Hunter Douglas 15,120 882 International Nederlanden Groep 18,699 1,242 Verenigde Nederlandse Uigevbedri 51,150 836 Wolters Kluwer 10,633 1,144 -------- 8,292 -------- NORWAY -- 1.1% Saga Petroleum "B" 48,040 536 Saga Petroleum "A" 26,500 323 -------- 859 -------- - -------------------------------------------------------------------------------- MARKET DESCRIPTION SHARES VALUE (000) - -------------------------------------------------------------------------------- SPAIN -- 8.3% Banco Bilbao-Vizcaya 37,500 $ 1,461 Banco Popular Espana 5,273 961 Continente 34,800 799 Financiera Alba 11,750 816 Gas Natural 9,050 1,525 Repsol 25,000 913 -------- 6,475 -------- SWEDEN -- 7.7% Astra "B" 23,605 1,081 Ericsson 66,550 1,445 Hennes & Mauritz "B" Free 12,000 797 Kalmar Industries 40,000 783 Securitas "B" 15,750 824 Skandia Forestry 45,100 1,064 -------- 5,994 -------- SWITZERLAND -- 6.4% BBC Brown Boveri 1,000 1,198 Ciba Geigy 492 440 Roche Holdings 179 1,392 Sandoz Pharmaceutical 2,079 1,956 -------- 4,986 -------- UNITED KINGDOM -- 29.2% Abbey National 85,800 753 ASDA Group 191,500 306 Associated British Foods 81,400 494 Bass 60,900 708 BAT Industries 77,500 678 Blue Circle Industries 128,200 690 Britannic Assurance 14,000 168 British Aerospace 55,100 734 British Airways 70,000 546 British Biotech 4,950 155 British Gas 120,000 435 British Sky Broadcasting 48,000 288 British Telecommunications 233,600 1,329 BTR 66,000 326 Commercial Union 44,000 409 English China Clay 62,000 325 General Electric 173,000 979 Glaxo Wellcome 106,000 1,467 Granada Group 64,000 713 Grand Metropolitan 54,900 365 Great Universal Stores 56,400 572 Guinness 49,800 350 Hammerson "A" 92,800 491 HSBC Holdings 40,000 659 Lasmo 218,600 616 Morrison Supermarket 75,000 172 Next 81,000 588 19 STATEMENT OF NET ASSETS ================================================================================ SEI INTERNATIONAL TRUST -- FEBRUARY 29, 1996 EUROPEAN EQUITY PORTFOLIO--CONCLUDED - -------------------------------------------------------------------------------- MARKET DESCRIPTION SHARES VALUE (000) - -------------------------------------------------------------------------------- Prudential 97,000 $ 654 Reuters Holdings 66,800 716 Rolls Royce 120,000 380 Royal Insurance 106,300 618 Scottish Power 63,500 356 Sedgwick Group 259,800 525 Severn Trent 38,000 362 Shell Transportation & Trading 86,000 1,112 Smiths Industries 57,000 601 Tate & Lyle 62,000 452 Tomkins 112,800 456 Vendome Units 59,700 497 Vodafone Group 120,000 425 Williams Holdings 82,500 426 -------- 22,896 -------- Total Foreign Common Stocks (Cost $65,153) 73,823 -------- FOREIGN PREFERRED STOCKS -- 1.9% GERMANY -- 1.9% Rhoen Klinikum 5,520 569 SAP 5,592 878 -------- 1,447 -------- Total Foreign Preferred Stocks (Cost $718) 1,447 -------- Total Investments -- 96.4% (Cost $65,871) 75,270 -------- OTHER ASSETS AND LIABILITIES -- 3.6% Other Assets and Liabilities, Net 2,851 -------- NET ASSETS: Portfolio shares of Class A (unlimited authorization -- no par value) based on 6,353,833 outstanding shares of beneficial interest 67,059 Accumulated net realized gain on investments 1,664 Net unrealized depreciation on forward foreign currency contracts, foreign currency and translation of other assets and liabilities in foreign currency (2) Net unrealized appreciation on investments 9,399 - -------------------------------------------------------------------------------- MARKET DESCRIPTION SHARES VALUE (000) - -------------------------------------------------------------------------------- Undistributed net investment income $ 1 -------- Total Net Assets:-- 100.0% $ 78,121 ======== Net Asset Value, Offering Price and Redemption Price Per Share -- Class A $ 12.30 ======== * NON-INCOME PRODUCING SECURITY ADR--AMERICAN DEPOSITORY RECEIPT PACIFIC BASIN EQUITY PORTFOLIO FOREIGN COMMON STOCKS -- 95.7% AUSTRALIA -- 6.2% Amcor 18,000 131 Australia & New Zealand Bank 81,033 398 Broken Hill Proprietary 52,900 766 CRA 24,725 379 Lend Lease 19,000 291 Newscorp 85,200 484 Oil Search 63,000 62 Pioneer International 95,000 282 Tabcorp 80,000 279 Western Mining 95,025 611 Westpac Banking 78,000 368 Woodside Petroleum 42,000 233 -------- 4,284 -------- HONG KONG -- 10.0% Chen Hsong 402,000 229 Cheung Kong Holdings 100,000 695 Citic Pacific 207,000 806 Giordano 434,000 463 Hong Kong Electric 90,000 305 HSBC Holdings 34,290 550 Hutchison Whampoa 137,000 868 Jardine International Motor 248,000 343 New World Development 114,000 556 Sun Hung Kai Properties 59,200 528 Swire Pacific "A" 87,000 760 Wharf Holdings 204,000 790 -------- 6,893 -------- THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 20 - -------------------------------------------------------------------------------- MARKET DESCRIPTION SHARES VALUE (000) - -------------------------------------------------------------------------------- JAPAN -- 68.3% Airport Facilities 34,000 $ 270 Amada 98,000 1,055 Bridgestone 131,000 2,046 Canon 37,000 680 Chain Store Okuwa 17,000 240 Daiwa Securities 117,000 1,649 DDI 92 675 East Japan Railway 254 1,299 Fuji Photo Film 54,000 1,533 Glory 23,000 758 Heiwa 11,000 265 Hirose Electric 8,400 476 Hitachi 315,000 3,180 Ito Yokado 38,000 2,128 Japan Airport Terminal 41,000 500 Japan Associated Finance 4,000 408 Kahma 10,400 180 Kuraray 81,000 856 Mabuchi Motor 13,000 799 Matsushita Electric 129,000 2,064 Mitsubishi 106,000 1,312 Mitsubishi Electric 213,000 1,562 Mitsubishi Trust & Banking 13,000 201 Mitsui 203,000 1,726 Mitsui Petrochem 21,000 173 Murata Manufacturing 40,000 1,318 New Oji Paper 36,000 328 Nihon Dempa Kogyo 8,000 158 Nippon Steel 189,000 610 Nippon Television Network 1,000 286 Okinawa Electric Power 9,000 256 Omron 62,000 1,370 Promise 6,000 262 Sankyo 27,000 622 Santen Pharmaceutical 8,000 179 Seino Transportation 40,000 667 Sekisui House 88,000 1,098 Shimachu 15,000 436 Shimamura 9,000 334 Showa Shell Sekiyo 90,000 831 SMC 11,200 766 Sony 9,000 528 Sumitomo Electric 75,000 971 Sumitomo Metal* 266,000 750 Takashimaya 12,000 177 Takeda Chemical Industries 48,000 772 Toho 5,900 972 Tokio Marine & Fire Insurance 122,000 1,476 - -------------------------------------------------------------------------------- MARKET DESCRIPTION SHARES VALUE (000) - -------------------------------------------------------------------------------- Tokyo Broadcasting Systems 23,000 $ 388 Toppan Printing 76,000 992 Toyota Motor 100,000 2,162 Tsubakimoto Precision 50,000 605 Yasuda Fire & Marine Insurance 191,000 1,364 Yokogawa Electric 46,000 491 -------- 47,204 -------- MALAYSIA -- 4.4% DCB Holdings 92,000 280 Gamuda 42,000 241 Genting Berhad 48,500 434 Larut Consolidated 161,500 209 Malayan Banking 63,500 581 Malaysian Assurance Alliance 25,875 149 Petronas Gas 49,000 190 Resorts World 41,000 230 Telekom Malaysia 58,000 499 United Engineers 32,000 206 -------- 3,019 -------- NEW ZEALAND -- 0.9% Carter Holt Harvey 127,511 273 Telecom of New Zealand 81,000 363 -------- 636 -------- SINGAPORE -- 5.9% City Developments 70,000 570 DBS Land 97,000 381 Development Bank of Singapore "F" 25,000 356 Keppel 63,000 638 Mandarin Oriental 285,718 374 Singapore International Airlines "F" 26,000 262 Singapore Press "F" 21,880 442 United Overseas Bank "F" 62,824 672 Wing Tai Holdings 153,000 368 -------- 4,063 -------- Total Foreign Common Stocks (Cost $63,874) 66,099 -------- Total Investments -- 95.7% (Cost $63,874) 66,099 -------- OTHER ASSETS AND LIABILITIES -- 4.3% Other Assets and Liabilities, Net 2,962 -------- 21 STATEMENT OF NET ASSETS ================================================================================ SEI INTERNATIONAL TRUST -- FEBRUARY 29, 1996 PACIFIC BASIN EQUITY PORTFOLIO--CONCLUDED - -------------------------------------------------------------------------------- MARKET DESCRIPTION SHARES VALUE (000) - -------------------------------------------------------------------------------- NET ASSETS: Portfolio shares of Class A (unlimited authorization -- no par value) based on 6,915,067 outstanding shares of beneficial interest $ 67,570 Accumulated net realized loss on investments (725) Net unrealized appreciation on investments 2,225 Accumulated net investment loss (9) -------- Total Net Assets:-- 100.0% $ 69,061 ======== Net Asset Value, Offering Price and Redemption Price Per Share -- Class A $ 9.99 ======== * NON-INCOME PRODUCING SECURITY ADR--AMERICAN DEPOSITORY RECEIPT EMERGING MARKETS EQUITY PORTFOLIO FOREIGN COMMON STOCKS -- 82.0% ARGENTINA -- 5.0% Banco Frances ADR 3,800 99 Central Costanera 110,535 343 Cresud 294,600 513 Irsa 47,950 132 Irsa ADR 2,777 76 Perez Companc 194,976 971 Siderca 553,420 548 Telefonica Argentina ADR 26,410 690 -------- 3,372 -------- BRAZIL -- 4.3% Cia Vale Rio Doce ADR* 3,900 158 Telebras 7,200,000 304 Telecom Brasileiras ADR 34,100 1,790 Telesp 3,974,000 658 -------- 2,910 -------- CHILE -- 3.1% Banco de Edwards ADR 5,200 109 Compania de Telecom Chile 14,930 1,235 Enersis ADR 14,630 415 Moneda Chile Fund 27,222 245 Quimica y Minera Chile ADR 1,000 51 -------- 2,055 -------- - -------------------------------------------------------------------------------- MARKET DESCRIPTION SHARES VALUE (000) - -------------------------------------------------------------------------------- CHINA -- 0.4% Huaneng Power International ADR 6,500 $ 120 Shanghai Dazhong Taxi "B" 200,000 158 -------- 278 -------- CZECH REPUBLIC -- 3.1% Cokoladovny 1,200 124 Czech Value Fund Units 5,900 310 Elektrarny Opatovice 752 105 Komercni Banka GDR 8,000 184 Komercni Banka 12,000 295 PIF 15,759 342 Spif Vseobecny 11,093 53 Spt Telecom 4,400 455 Vynosovy 23,400 130 -------- 1,998 -------- GREECE -- 0.4% Aegek 13,070 106 Greek Progress Fund 21,460 195 Hellenic Bottling 5 0 -------- 301 -------- HONG KONG -- 2.7% Guang Dong Investment 187,000 120 Henderson Land Development* 47,000 340 Hutchison Whampoa 31,000 196 Johnson Electric Holdings 167,500 325 MC Packaging 714,000 268 Shangri-La Asia 208,000 284 Tian An China 142,000 20 Yue Yuen 1,002,000 255 -------- 1,808 -------- HUNGARY -- 0.2% Borsodchem GDR 5,800 85 Egis 2,000 68 -------- 153 -------- INDIA -- 1.4% Arvind Mills GDR 25,600 87 Bajaj Auto GDR 9,200 251 Grasim Industries GDR 21,000 431 Indian Hotels GDS 9,100 193 -------- 962 -------- INDONESIA -- 3.1% Asia Pacific Resource "A" 18,800 89 Bank Bali 75 0 Bank Bali Warrants 400 0 Bank International Indonesia "F" 22,000 93 Bimantara Citra 61,500 72 Dankos Labs "F" 26,000 62 Hanjaya Mandala Sampoerna "F" 15,500 169 THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 22 - -------------------------------------------------------------------------------- MARKET DESCRIPTION SHARES VALUE (000) - -------------------------------------------------------------------------------- Indorama Synthetica "F" 30,500 $ 108 Indosat ADS 1,500 56 Indorayon Utama "F" 127,000 156 PT Telecom ADR 16,000 502 Sekar Bumi 79,000 74 Semen Cibinong 90,000 281 Semen Gresik "F" 40,000 141 Tambang Timah GDR 6,600 97 Telco GDR 8,000 108 Tjiwi Kimia 178 0 -------- 2,008 -------- ISRAEL -- 1.1% ECI Telecom* 5,000 128 Koor Industries ADR 10,100 202 Teva Pharmaceuticals ADR 5,500 238 Teva Pharmaceuticals 474 204 -------- 772 -------- MALAYSIA -- 15.4% Arab Malaysian 330,000 1,159 Arab Malaysian Finance 118,000 546 AMMB Holdings 59,000 712 DCB Holdings Warrants 144,000 174 DCB Holdings 546,000 1,661 Genting Berhad 47,000 421 IJM 416,000 679 IOI 910,000 1,000 Metacorp 185,000 574 New Straits Times Press 77,000 363 Petronas Gas 276,000 1,072 Resorts World 122,000 685 Telekom Malaysia 137,000 1,178 United Engineers 20,000 129 -------- 10,353 -------- MEXICO -- 14.1% Banamex Accival "L" 114,000 199 Cemex CPO 253,500 870 Cemex "B" 408,500 1,514 Empresas la Maderna 194,000 828 Grupo Financiero Banamex "B" 1,194,000 2,299 Grupo Industria Alfa "A" 161,000 1,954 Grupo Mexico "B" 86,000 309 Industrias Penoles 245,000 1,006 Kimberly Clark "A" 21,000 351 San Luis CPO 37,000 172 -------- 9,502 -------- PAKISTAN -- 0.5% Adamjee Insurance 11,400 46 D.G. Khan 60,940 45 D.G. Khan Rights 18,282 4 Engro Chemicals 20,200 98 - -------------------------------------------------------------------------------- MARKET DESCRIPTION SHARES VALUE (000) - -------------------------------------------------------------------------------- ICI Pakistan 31,000 $ 57 Pakistan State Oil 9,230 94 -------- 344 -------- PERU -- 2.5% Telefonica del Peru "B" 154,300 327 Credicorp* 38,084 695 Souther Peru Copper* 20,500 341 Telefonica del Peru "A" 157,600 337 -------- 1,700 -------- PHILIPPINES -- 3.0% Aboitiz Equity Ventures 1,389,000 287 Ayala Land "B" 81,300 111 Bacnotan Cement* 124,500 101 C & P Homes 83,000 64 DMCI Holdings 416,000 259 Fil-Estate Land 70,000 64 Filinvest Land 722,000 311 Keppel Philippine Holdings "B" 203,500 59 Manila Mining "B" 27,800,000 48 Metro Pacific 1,889,000 448 Philippine Long Distance 2,320 137 Philippine Long Distance ADR 1,880 111 -------- 2,000 -------- POLAND -- 0.1% Agros Holdings "C" 7,111 86 -------- PORTUGAL -- 4.0% Capital Portugal Fund 4,900 447 Cimentos de Portugal 29,650 542 Empresa Fabril de Maquinas Electricas 34,300 272 Portucel Industrial Empresa 89,000 494 Sonae Investimentos 41,760 941 -------- 2,696 -------- RUSSIA -- 0.4% Mosenergo ADS 33,700 240 -------- SOUTH AFRICA -- 7.3% Barlow 20,600 274 Clinic Holdings 319,400 380 Highstone Property Fund 665,200 258 Iscor 744,632 631 Lonrho 312,300 920 Malbak 68,390 402 Murray & Roberts 51,325 315 Pepsi International Africa 3,000 300 Randgold 47,000 201 Sasol 58,843 510 Servgro International 73,600 428 Waltons Stationary 84,500 279 -------- 4,898 -------- 23 STATEMENT OF NET ASSETS/SCHEDULE OF INVESTMENTS ================================================================================ SEI INTERNATIONAL TRUST -- FEBRUARY 29, 1996 EMERGING MARKETS EQUITY PORTFOLIO--CONTINUED - -------------------------------------------------------------------------------- MARKET DESCRIPTION SHARES VALUE (000) - -------------------------------------------------------------------------------- SOUTH KOREA -- 2.7% Korea Electric Power ADR 15,950 $ 387 Korea Fund 11,400 252 Korea Investment Fund 14,133 150 Korea Mobile Telephone GDR 10,300 484 Pohang Iron & Steel ADR 14,700 368 Samsung Electronics GDS 2,900 154 -------- 1,795 -------- TAIWAN -- 1.7% Advanced Semiconductors Engineering GDR 10,250 126 China Steel 10,000 156 ROC Taiwan Fund 27,400 264 Siliconware Precision GDR 10,300 145 Taiwan Equity Fund 32,200 318 Taiwan Fund 50 1 Yageo GDR 15,332 123 -------- 1,133 -------- THAILAND -- 3.9% Banpu Public "F" 5,400 148 Bangkok Bank SER 18,400 167 Bangkok Bank SER 2 60,800 550 Electric Generating "F"* 55,010 218 Land and House "F" 9,900 197 Phatra Thanakit SER 99,000 727 Regional Container "F" 14,700 175 Siam Cement 2,100 109 Thai Farmers Bank SER 36,100 267 United Communications 4,600 65 Wongpaitoon Footwear "F" 17,000 13 -------- 2,636 -------- TURKEY -- 1.6% Alarko 43,000 18 Cimentas 150,800 84 Erciyas Biracilik GDR 26,700 344 Koc Holdings 735,000 145 Tat Konservecili 471,300 328 Trakya Cam 1,380,000 188 -------- 1,107 -------- Total Foreign Common Stocks (Cost $55,077) 55,107 -------- FOREIGN PREFERRED STOCKS -- 12.6% BRAZIL -- 12.2% Banco Bradesco 134,143,979 1,519 Brahma 550,000 249 Cimento Itau 380,000 109 Coteminas 460,000 182 - -------------------------------------------------------------------------------- SHARES/FACE MARKET DESCRIPTION AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Electrobras "B" 6,596,000 $ 1,836 Lojas Renner 7,700,000 274 Marco Polo "B" 730,000 133 Schulz 1,200,000 33 Petrol Brasileiros 7,330,000 815 Randon Participacoes 146,500,000 106 Sadia Concordia 453,000 327 Telebras 20,709,000 1,088 Telemig "B" 2,900,000 194 Telerj 5,286,000 391 Vale Rio Doce 4,044,000 628 Weg 630,000 316 -------- 8,200 -------- PHILIPPINES -- 0.4% Philippine Long Distance 7,300 243 -------- Total Foreign Preferred Stocks (Cost $7,418) 8,443 -------- CONVERTIBLE BONDS -- 1.3% Bangkok Bank 3.250%, 03/03/04 150 169 Barlow 7.000%, 09/20/04 190 309 Ban Pu Coal 3.500%, 08/25/04 105 147 United Microelectronics 1.250%, 06/08/04 233 244 -------- Total Convertible Bonds (Cost $820) 869 -------- REPURCHASE AGREEMENT -- 6.2% State Street Bank 4.00%, dated 2/29/96, matures 3/1/96, repurchase price $4,198,000 (collateralized by U.S. Treasury Bond, maturity 2/15/23, interest rate 7.125%) 4,198 4,198 -------- Total Repurchase Agreement (Cost $4,198) 4,198 -------- Total Investments -- 102.1% (Cost $67,513) 68,617 -------- OTHER ASSETS AND LIABILITIES--(2.1%) Other Assets and Liabilities, Net (1,436) -------- 24 - -------------------------------------------------------------------------------- FACE AMOUNT MARKET DESCRIPTION (000) VALUE (000) - -------------------------------------------------------------------------------- NET ASSETS: Portfolio shares of Class A (unlimited authorization -- no par value) based on 6,147,072 outstanding shares of beneficial interest $ 66,242 Accumulated net realized gain on investments 37 Net unrealized depreciation on forward foreign currency contracts, foreign currency and translation of other assets and liabilities in foreign currency (3) Net unrealized appreciation on investments 1,104 Accumulated net investment loss (199) -------- Total Net Assets:-- 100.0% $ 67,181 ======== Net Asset Value, Offering Price and Redemption Price Per Share -- Class A $ 10.93 ======== * NON-INCOME PRODUCING SECURITY ADR--AMERICAN DEPOSITORY RECEIPT ADS--AMERICAN DEPOSITORY SHARES GDR--GLOBAL DEPOSITORY RECEIPT GDS--GLOBAL DEPOSITORY SHARES INTERNATIONAL FIXED INCOME PORTFOLIO FOREIGN BONDS -- 84.0% AUSTRALIA -- 1.3% Australian Government 9.500%, 08/15/03 668 536 Queensland Treasury 8.000%, 08/14/01 756 567 -------- 1,103 -------- BELGIUM -- 4.0% Kingdom of Belgium 5.100%, 11/21/04 99,500 3,341 -------- CANADA -- 1.9% Canadian Government 6.500%, 06/01/04 750 515 9.000%, 06/01/25 1,345 1,080 -------- 1,595 -------- DENMARK -- 3.0% Kingdom of Denmark 9.000%, 11/15/98 395 75 - -------------------------------------------------------------------------------- FACE AMOUNT MARKET DESCRIPTION (000) VALUE (000) - -------------------------------------------------------------------------------- 8.000%, 11/15/01 2,580 $ 481 8.000%, 03/15/06 8,325 1,503 7.000%, 11/10/24 3,200 477 -------- 2,536 -------- FRANCE -- 10.5% French Treasury Bill 7.750%, 04/12/00 4,840 $ 1,035 Government of France 8.125%, 05/25/99 20,340 4,368 5.500%, 04/25/04 14,220 2,640 8.500%, 10/25/08 880 199 8.500%, 04/25/23 2,600 578 -------- 8,820 -------- GERMANY -- 19.3% Bundesschatzanweisungen 6.875%, 02/24/99 5,430 3,935 Deutschland Republic 6.250%, 01/04/24 1,070 641 German Unity Fund 8.500%, 02/20/01 8,770 6,739 KFW International Finance 6.625%, 04/15/03 1,140 788 Treuhandanstalt 6.500%, 04/23/03 6,060 4,200 -------- 16,303 -------- ITALY -- 6.3% Italian Government 8.500%, 08/01/99 2,670,000 1,663 9.500%, 01/01/05 3,485,000 2,144 10.500%, 09/01/05 2,320,000 1,514 -------- 5,321 -------- JAPAN -- 18.6% Asian Development Bank 5.000%, 02/05/03 257,000 2,723 Export-Import Bank 4.375%, 10/01/03 58,000 592 European Investment Bank 6.625%, 03/15/00 79,000 873 Japanese Development Bank 5.000%, 10/01/99 60,000 627 6.500%, 09/20/01 285,000 3,219 Republic of Austria 6.250%, 10/16/03 181,000 2,071 4.500%, 09/28/05 70,000 722 3.750%, 02/03/09 124,000 1,183 World Bank 4.500%, 06/20/00 318,100 3,293 4.500%, 03/20/03 39,800 413 -------- 15,716 -------- THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 25 SCHEDULE OF INVESTMENTS ================================================================================ SEI INTERNATIONAL TRUST -- FEBRUARY 29, 1996 INTERNATIONAL FIXED INCOME PORTFOLIO--CONCLUDED - -------------------------------------------------------------------------------- FACE AMOUNT MARKET DESCRIPTION (000)(1) VALUE (000) - -------------------------------------------------------------------------------- NETHERLANDS -- 5.7% Kingdom of Netherlands 7.500%, 06/15/99 5,015 $ 3,288 5.750%, 01/15/04 2,630 1,553 -------- 4,841 -------- NORWAY -- 1.4% Government of Norway 7.000%, 05/31/01 5,110 831 9.500%, 10/31/02 1,700 308 -------- 1,139 -------- SPAIN -- 4.6% Kingdom of Spain 12.250%, 03/25/00 155,840 1,391 10.300%, 06/15/02 286,830 2,481 -------- 3,872 -------- SWEDEN -- 1.8% Kingdom of Sweden 10.250%, 05/05/03 3,100 501 Swedish Treasury Note 11.000%, 01/21/99 6,300 1,014 -------- 1,515 -------- UNITED KINGDOM -- 5.6% European Investment Bank 7.000%, 03/30/98 200 307 United Kingdom Conversion 9.500%, 04/18/05 85 143 United Kingdom Treasury 7.000%, 11/06/01 1,290 1,929 8.000%, 12/07/15 1,580 2,346 -------- 4,725 -------- Total Foreign Bonds (Cost $72,260) 70,827 -------- - -------------------------------------------------------------------------------- FACE AMOUNT MARKET DESCRIPTION (000)(1) VALUE (000) - -------------------------------------------------------------------------------- U.S. TREASURY OBLIGATIONS -- 9.4% United States Treasury Bill 0.000%, 05/02/96 7,500 $ 7,435 United States Treasury Bond 6.875%, 08/15/25 90 94 United States Treasury Note 5.875%, 11/15/05 100 98 5.250%, 01/31/01 190 186 United States Treasury STRIP Interest Only 02/15/04 230 142 ------- Total U.S. Treasury Obligations (Cost $7,969) 7,955 ------- Total Investments -- 93.4% (Cost $80,229) $78,782 ======= (1) IN LOCAL CURRENCY THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 26 This Page Left Intentionally Blank STATEMENT OF ASSETS AND LIABILITIES (000) ================================================================================ FEBRUARY 29, 1996 ------------------ INTERNATIONAL FIXED INCOME ------------------ ASSETS: Investment securities (Cost $80,229) $78,782 Cash 2,112 Foreign currency (Cost $2,188) 2,175 Interest receivable 2,401 Investment securities sold 14,433 Unrealized gain on forward foreign currency contracts 591 Other assets 503 -------- Total Assets 100,997 -------- LIABILITIES: Investment securities purchased 4,688 Capital shares redeemed 11,878 Other liabilities 113 -------- Total Liabilities 16,679 -------- Net Assets $84,318 ======== NET ASSETS: Portfolio shares of Class A (unlimited authorization -- no par value) based on 7,832,978 outstanding shares of beneficial interest 85,549 Accumulated net realized gain on investments 770 Net unrealized appreciation on forward foreign currency contracts, foreign currencies and translation of other assets and liabilities denominated in foreign currencies 569 Net unrealized depreciation on investments (1,447) Accumulated net investment loss (1,123) -------- Net Assets $84,318 ======== NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE-- CLASS A $ 10.77 ======== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 28 STATEMENT OF OPERATIONS (000) ================================================================================ FOR THE PERIOD ENDED FEBRUARY 29, 1996
------------- -------- -------- -------- ------------- PACIFIC EMERGING INTERNATIONAL INTERNATIONAL EUROPEAN BASIN MARKETS FIXED EQUITY EQUITY EQUITY EQUITY INCOME ------------- -------- -------- -------- -------------- INVESTMENT INCOME: Dividends $ 8,605 $ 1,303 $ 595 $ 338 $ -- Interest 351 197 125 192 3,605 Less: Foreign Taxes Withheld (853) (140) (64) (23) (78) -------- -------- -------- -------- -------- Total Investment Income 8,103 1,360 656 507 3,527 -------- -------- -------- -------- -------- EXPENSES: Management fees 1,431 380 354 201 372 Less management fees waived (119) (115) (148) (201) (140) Reimbursement by Manager -- -- -- (29) -- Investment advisory fees 1,524 225 237 297 186 Less investment advisory fees waived -- -- -- -- (31) Custodian/wire agent fees 339 72 70 227 69 Professional fees 58 15 13 14 16 Registration & filing fees 117 6 6 18 21 Printing fees 71 14 13 9 15 Trustee fees 32 5 4 2 5 Pricing fees 29 9 10 12 6 Distribution fees 502 79 74 26 92 Amortization of deferred organization costs 4 6 6 -- 8 Miscellaneous fees 8 4 1 1 (2) -------- -------- -------- -------- -------- Total Expenses 3,996 700 640 577 617 -------- -------- -------- -------- -------- NET INVESTMENT INCOME/(LOSS) 4,107 660 16 (70) 2,910 -------- -------- -------- -------- -------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS: Net realized gain (loss) from security transactions 21,730 1,829 (688) 180 2,362 Net realized gain (loss) on forward foreign currency contracts and foreign currency transactions (983) 2 684 (125) 2,856 Net change in unrealized appreciation (depreciation) on forward foreign currency contracts, foreign currencies, and translation of other assets and liabilities denominated in foreign currencies 1,021 11 81 (2) 97 Net change in unrealized appreciation (depreciation) on investments 24,496 9,274 6,898 1,050 (2,509) -------- -------- -------- -------- -------- NET INCREASE IN NET ASSETS FROM OPERATIONS $ 50,371 $ 11,776 $ 6,991 $ 1,033 $ 5,716 ======== ======== ======== ======== ========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 29 STATEMENT OF CHANGES IN NET ASSETS (000) ================================================================================ FOR THE PERIODS ENDED FEBRUARY 29,
---------------------- ---------------------- ---------------------- PACIFIC INTERNATIONAL EUROPEAN BASIN EQUITY EQUITY EQUITY ---------------------- ---------------------- ---------------------- 1996 1995 1996 1995(2) 1996 1995(2) ---------------------- ---------------------- ---------------------- OPERATIONS: Net investment income (loss) $ 4,107 $ 6,137 $ 660 $ 211 $ 16 $ (81) Net realized gain (loss) from security transactions 21,730 36,204 1,829 (165) (688) (37) Net realized gain (loss) on forward foreign currency contracts and foreign currency transactions (983) (25,138) 2 (154) 684 (74) Net change in unrealized appreciation (depreciation) on forward foreign currency contracts, foreign currencies, and translation of other assets and liabilities denominated in foreign currencies 1,021 10,819 11 (13) 81 (81) Net change in unrealized appreciation (depreciation) on investments 24,496 (58,990) 9,274 125 6,898 (4,673) --------- --------- --------- --------- --------- --------- Net increase (decrease) in net assets from operations 50,371 (30,968) 11,776 4 6,991 (4,946) --------- --------- --------- --------- --------- --------- DIVIDENDS DISTRIBUTED FROM: Net investment income: Class A (5,932) -- (553) (165) (782) -- Class D (3) -- -- -- -- -- Net realized gains: Class A (28,871) (23,038) -- -- -- -- Class D (17) (2) -- -- -- -- --------- --------- --------- --------- --------- --------- Total dividends distributed (34,823) (23,040) (553) (165) (782) -- --------- --------- --------- --------- --------- --------- CAPITAL SHARE TRANSACTIONS(1): Class A: Proceeds from shares issued 203,255 340,533 48,078 41,513 67,638 49,353 Shares issued in lieu of cash distributions 20,015 14,427 494 144 694 -- Cost of shares repurchased (219,674) (475,951) (17,952) (5,218) (38,528) (11,359) --------- --------- --------- --------- --------- --------- Increase (decrease) in net assets derived from Class A 3,596 (120,991) 30,620 36,439 29,804 37,994 --------- --------- --------- --------- --------- --------- Class D: Proceeds from shares issued 146 53 -- -- -- -- Shares issued in lieu of cash distributions 19 2 -- -- -- -- Cost of shares repurchased (18) -- -- -- -- -- --------- --------- --------- --------- --------- --------- Increase in net assets derived from Class D 147 55 -- -- -- -- --------- --------- --------- --------- --------- --------- INCREASE (DECREASE) IN NET ASSETS DERIVED FROM CAPITAL SHARE TRANSACTIONS 3,743 (120,936) 30,620 36,439 29,804 37,994 --------- --------- --------- --------- --------- --------- Net increase (decrease) in net assets 19,291 (174,944) 41,843 36,278 36,013 33,048 NET ASSETS: Beginning of period 328,554 503,498 36,278 -- 33,048 -- --------- --------- --------- --------- --------- --------- End of period $ 347,845 $ 328,554 $ 78,121 $ 36,278 $ 69,061 $ 33,048 ========= ========= ========= ========= ========= ========= (1) CAPITAL SHARE TRANSACTIONS: Class A: Shares issued 20,144 32,225 4,241 4,171 7,275 5,018 Shares issued in lieu of cash distributions 2,037 1,437 41 15 -- -- Shares repurchased (21,676) (45,194) (1,599) (523) (4,144) (1,234) --------- --------- --------- --------- --------- --------- Total Class A transactions 505 (11,532) 2,683 3,663 3,131 3,784 --------- --------- --------- --------- --------- --------- Class D: Shares issued 15 5 -- -- -- -- Shares issued in lieu of cash distributions 2 -- -- -- -- -- Shares repurchased (2) -- -- -- -- -- --------- --------- --------- --------- --------- --------- Total Class D transactions 15 5 -- -- -- -- --------- --------- --------- --------- --------- --------- Net increase (decrease) in capital shares 520 (11,527) 2,683 3,663 3,131 3,784 ========= ========= ========= ========= ========= =========
---------------------- ---------------------- EMERGING INTERNATIONAL MARKETS FIXED EQUITY INCOME ---------------------- ---------------------- 1996 1995(3) 1996 1995 ---------------------- ---------------------- OPERATIONS: Net investment income (loss) $ (70) $ 6 $ 2,910 $ 1,603 Net realized gain (loss) from security transactions 180 -- 2,362 (927) Net realized gain (loss) on forward foreign currency contracts and foreign currency transactions (125) 1 2,856 670 Net change in unrealized appreciation (depreciation) on forward foreign currency contracts, foreign currencies, and translation of other assets and liabilities denominated in foreign currencies (2) (1) 97 313 Net change in unrealized appreciation (depreciation) on investments 1,050 54 (2,509) 1,420 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 1,033 60 5,716 3,079 --------- --------- --------- --------- DIVIDENDS DISTRIBUTED FROM: Net investment income: Class A (11) -- (6,969) (2,335) Class D -- -- -- -- Net realized gains: Class A (143) -- (665) (67) Class D -- -- -- -- --------- --------- --------- --------- Total dividends distributed (154) -- (7,634) (2,402) --------- --------- --------- --------- CAPITAL SHARE TRANSACTIONS(1): Class A: Proceeds from shares issued 64,401 5,264 70,012 36,006 Shares issued in lieu of cash distributions 148 -- 6,218 1,486 Cost of shares repurchased (3,547) (24) (32,574) (19,267) --------- --------- --------- --------- Increase (decrease) in net assets derived from Class A 61,002 5,240 43,656 18,225 --------- --------- --------- --------- Class D: Proceeds from shares issued -- -- -- -- Shares issued in lieu of cash distributions -- -- -- -- Cost of shares repurchased -- -- -- -- --------- --------- --------- --------- Increase in net assets derived from Class D -- -- -- -- --------- --------- --------- --------- INCREASE (DECREASE) IN NET ASSETS DERIVED FROM CAPITAL SHARE TRANSACTIONS 61,002 5,240 43,656 18,225 --------- --------- --------- --------- Net increase (decrease) in net assets 61,881 5,300 41,738 18,902 NET ASSETS: Beginning of period 5,300 -- 42,580 23,678 --------- --------- --------- --------- End of period $ 67,181 $ 5,300 $ 84,318 $ 42,580 ========= ========= ========= ========= (1) CAPITAL SHARE TRANSACTIONS: Class A: Shares issued 5,959 518 6,081 3,504 Shares issued in lieu of cash distributions 1 -- 559 150 Shares repurchased (329) (2) (2,894) (1,882) --------- --------- --------- --------- Total Class A transactions 5,631 516 3,746 1,772 --------- --------- --------- --------- Class D: Shares issued -- -- -- -- Shares issued in lieu of cash distributions -- -- -- -- Shares repurchased -- -- -- -- --------- --------- --------- --------- Total Class D transactions -- -- -- -- --------- --------- --------- --------- Net increase (decrease) in capital shares 5,631 516 3,746 1,772 ========= ========= ========= ========= (2) EUROPEAN EQUITY AND PACIFIC BASIN EQUITY COMMENCED OPERATIONS ON APRIL 29, 1994. (3) EMERGING MARKETS EQUITY COMMENCED OPERATIONS ON JANUARY 17, 1995.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 30 FINANCIAL HIGHLIGHTS ================================================================================ FOR THE PERIODS ENDED FEBRUARY 29, FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
NET ASSET DISTRIBUTIONS DISTRIBUTIONS VALUE NET NET REALIZED AND FROM NET FROM NET ASSET NET ASSETS BEGINNING INVESTMENT UNREALIZED INVESTMENT REALIZED CAPITAL RETURN VALUE END TOTAL END OF OF PERIOD INCOME/(LOSS) GAINS/(LOSSES) INCOME (6) GAINS OF CAPITAL OF PERIOD RETURN PERIOD (000) - -------------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------------- INTERNATIONAL EQUITY PORTFOLIO - -------------------------------------------------------------------------------------------------------------------------------- CLASS A 1996 $ 9.59 $ 0.14 $ 1.45 $(0.19) $(0.99) $-- $10.00 17.30% $347,646 1995 11.00 0.15 (0.97) -- (0.59) -- 9.59 (7.67) 328,503 1994 8.93 0.13 2.05 (0.11) -- -- 11.00 24.44 503,498 1993 9.09 0.16 0.04 (0.36) -- -- 8.93 2.17 178,287 1992 9.56 0.19 (0.36) (0.30) -- -- 9.09 (1.63) 92,456 1991 9.62 0.18 (0.14) -- (0.01) $(0.09) 9.65 0.36 35,829 CLASS D 1996 $ 9.56 $ 0.04 $ 1.50 $(0.18) $(0.99) -- $ 9.93 16.77% $ 199 1995(1) 10.81 0.01 (0.67) -- (0.59) -- 9.56 (6.33) 51 - -------------------------------------------------------------------------------------------------------------------------------- EUROPEAN EQUITY PORTFOLIO - -------------------------------------------------------------------------------------------------------------------------------- CLASS A 1996 $ 9.90 $ 0.11 $ 2.39 $(0.10) $-- $-- $12.30 25.15% $ 78,121 1995(2) 10.00 0.06 (0.11) (0.05) -- -- 9.90 (0.40) 36,278 - -------------------------------------------------------------------------------------------------------------------------------- PACIFIC BASIN EQUITY PORTFOLIO - -------------------------------------------------------------------------------------------------------------------------------- CLASS A 1996 $ 8.73 $ 0.03 $ 1.36 $(0.13) $-- $-- $ 9.99 15.96% $ 69,061 1995(3) 10.00 (0.02) (1.25) -- -- -- 8.73 (12.70) 33,048 - -------------------------------------------------------------------------------------------------------------------------------- EMERGING MARKETS EQUITY PORTFOLIO - -------------------------------------------------------------------------------------------------------------------------------- CLASS A 1996 $10.27 $(0.02) $ 0.72 $ -- $(0.04) $-- $10.93 6.83% $ 67,181 1995(4) 10.00 0.01 0.26 -- -- -- 10.27 2.70 5,300 - -------------------------------------------------------------------------------------------------------------------------------- INTERNATIONAL FIXED INCOME PORTFOLIO - -------------------------------------------------------------------------------------------------------------------------------- CLASS A 1996 $10.42 $ 0.58 $ 0.89 $(1.02) $(0.10) $-- $10.77 13.96% $ 84,318 1995 10.23 0.43 0.40 (0.62) (0.02) -- 10.42 8.43 42,580 1994(5) 10.00 0.14 0.18 (0.09) -- -- 10.23 6.41 23,678
RATIO OF RATIO OF NET INVESTMENT RATIO OF EXPENSES INCOME/(LOSS) RATIO OF NET INVESTMENT TO AVERAGE TO AVERAGE EXPENSES INCOME/(LOSS) NET ASSETS NET ASSETS PORTFOLIO TO AVERAGE TO AVERAGE (EXCLUDING (EXCLUDING TURNOVER NET ASSETS NET ASSETS WAIVERS) WAIVERS) RATE - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- INTERNATIONAL EQUITY PORTFOLIO - -------------------------------------------------------------------------------- CLASS A 1996 1.25% 1.29% 1.29% 1.25% 102% 1995 1.19 1.30 1.21 1.28 64 1994 1.10 1.46 1.24 1.32 19 1993 1.10 1.80 1.53 1.37 23 1992 1.10 2.07 1.52 1.63 79 1991 1.10 3.52 1.64 2.98 14 CLASS D 1996 1.65% 0.58% 1.90% 0.33% 102% 1995(1) 1.47 0.42 1.48 0.41 64 - -------------------------------------------------------------------------------- EUROPEAN EQUITY PORTFOLIO - -------------------------------------------------------------------------------- CLASS A 1996 1.30% 1.23% 1.51% 1.02% 48% 1995(2) 1.30 1.02 1.57 0.75 29 - -------------------------------------------------------------------------------- PACIFIC BASIN EQUITY PORTFOLIO - -------------------------------------------------------------------------------- CLASS A 1996 1.30% 0.03% 1.60% (0.27)% 41% 1995(3) 1.30 (0.41) 1.68 (0.79) 9 - -------------------------------------------------------------------------------- EMERGING MARKETS EQUITY PORTFOLIO - -------------------------------------------------------------------------------- CLASS A 1996 1.95% (0.23)% 2.72% (1.00)% 104% 1995(4) 1.95 1.79 4.98 (1.24) -- - -------------------------------------------------------------------------------- INTERNATIONAL FIXED INCOME PORTFOLIO - -------------------------------------------------------------------------------- CLASS A 1996 1.00% 4.70% 1.27% 4.43% 269% 1995 1.00 4.68 1.30 4.38 303 1994(5) 1.00 3.81 1.61 3.20 126 (1) INTERNATIONAL EQUITY CLASS D SHARES WERE OFFERED BEGINNING MAY 1, 1994. ALL RATIOS FOR THAT PERIOD HAVE BEEN ANNUALIZED. (2) EUROPEAN EQUITY CLASS A SHARES WERE OFFERED BEGINNING APRIL 29, 1994. ALL RATIOS FOR THAT PERIOD HAVE BEEN ANNUALIZED. (3) PACIFIC BASIN EQUITY CLASS A SHARES WERE OFFERED BEGINNING APRIL 29, 1994. ALL RATIOS FOR THAT PERIOD HAVE BEEN ANNUALIZED. (4) EMERGING MARKETS EQUITY CLASS A SHARES WERE OFFERED BEGINNING JANUARY 17, 1995. ALL RATIOS FOR THAT PERIOD HAVE BEEN ANNUALIZED. (5) INTERNATIONAL FIXED INCOME CLASS A SHARES WERE OFFERED BEGINNING SEPTEMBER 1, 1993. ALL RATIOS FOR THAT PERIOD HAVE BEEN ANNUALIZED. (6) DISTRIBUTIONS FROM NET INVESTMENT INCOME INCLUDE DISTRIBUTIONS OF CERTAIN FOREIGN CURRENCY GAINS AND LOSSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 31 NOTES TO FINANCIAL STATEMENTS ================================================================================ FEBRUARY 29, 1996 1. ORGANIZATION SEI 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 management company with five portfolios: the International Equity Portfolio (formerly the Core International Equity Portfolio), the European Equity Portfolio, the Pacific Basin Equity Portfolio, the Emerging Markets Equity Portfolio and the International Fixed Income Portfolio (together the "Portfolios"). The Trust's prospectus provides a description of each Funds investment objectives, policies, and strategies. The Trust is registered to offer Class A and Class D Fund shares of each of the Portfolios. 2. SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies followed by the Portfolios in the preparation of the financial statements. The policies are in conformity with generally accepted accounting principles. The preparation of financial statements in conformity with generally accepted accounting principles 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 -- Investment securities which are listed on a securities exchange for which market quotations are readily available are valued by an independent 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 recent quoted bid price. Unlisted securities for which market quotations are readily available are valued at the most recent quoted bid price. Debt obligations sixty days or less remaining until maturity are valued at amortized cost which approximates market value. FEDERAL INCOME TAXES -- It is the intention of each Portfolio to continue to qualify as a regulated investment company and to distribute all of its taxable income. Accordingly, no provision for Federal income taxes is required in the financial statements. The Portfolios 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 either income earned or repatriated. The Portfolios accrue such taxes when the related income is earned. NET ASSET VALUE PER SHARE -- The net asset value per share of each Portfolio is calculated on each business day. It is computed by dividing the assets of the portfolio, less its liabilities, by the number of outstanding shares of the portfolio. REPURCHASE AGREEMENTS -- Securities pledged as collateral for repurchase agreements are held by the custodian bank until maturity of the repurchase agreements. Provisions of the repurchase agreements and procedures adopted by the Trust require that the market value of the collateral, including accrued interest thereon, is sufficient in the event of default by the counterparty. The Portfolios 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 until maturity of the repurchase agreement. Provisions of the agreements require that the market value of the collateral, including accrued interest thereon, is sufficient in the event of default by the counterparty of the Portfolio. If the counterparty defaults and the value of the collateral declines or if the counterparty enters an insolvency proceeding, realization of the collateral by the Portfolio may be delayed or limited. FOREIGN CURRENCY TRANSLATION -- The books and records of the Portfolios 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. The Portfolios do not isolate that portion of gains and losses on investment securities which is due to changes in the foreign exchange rates from that which is due to changes in market prices of such securities. 32 The Portfolios 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 pursuant to the Federal income tax regulations. Such amounts are categorized as foreign currency gain or loss for both financial reporting and income tax reporting purposes. The Portfolios 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 portfolios enter into forward foreign currency contracts as hedges against either specific transactions or portfolio positions. The aggregate principal amounts of the contracts are not recorded as the Portfolios do not intend to hold the contracts to maturity. All commitments are "marked-to-market" daily at the applicable foreign exchange rate and any resulting unrealized gains or losses are recorded currently. The Portfolios 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. FOREIGN CURRENCY OPTIONS -- Premiums paid by a portfolio for the purchase of an option are included in the portfolio's Schedule of Investments as an investment and subsequently "marked-to-market" to reflect the current value of the option. For an option held by a portfolio on the stipulated expiration date, the portfolio realizes a gain or loss. If the portfolio enters into a closing sale transaction, it realizes a gain or loss, depending on whether the proceeds from the sale are greater or less than the cost of the purchased option. If the portfolio exercises a purchased call option, the cost of the underlying investment which the fund purchases upon exercise will be increased by the premium originally paid. 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 Portfolios are charged directly to that Portfolio. Other operating expenses of the Portfolios are prorated to the Portfolios on the basis of relative net assets. DISTRIBUTIONS -- Distributions from net investment income and net realized capital gains are determined in accordance with U.S. Federal income tax regulations, which may differ from those amounts determined under generally accepted accounting principles. 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 in the period that the difference arises. Accordingly, for the International Equity Portfolio, $20,000 was reclassified from accumulated net realized gain on investments to undistributed net investment income; and $9,798,000 was reclassified from paid in capital to accumulated net realized gain on foreign currency transactions. In addition, the following permanent differences primarily attributable to realized foreign exchange gains and losses, have been reclassified from accumulated net realized gain (loss) on foreign currency transactions to undistributed net investment income: (000) -------- International Equity $ 100 European Equity (96) Pacific Basin Equity 757 Emerging Markets Equity (124) International Fixed Income 2,482 These reclassifications have no effect on net assets or net asset values per share. OTHER -- Security transactions are accounted for on the trade date of the security purchase or sale. Costs used in determining net realized capital gains and losses on the sale of investments securities are those of the specific securities sold. Purchase discounts and premiums on securities held by the Portfolio are accreted and amortized to maturity using the scientific interest method, which approximates the effective interest method. Dividend income is recognized on the ex-dividend date and interest income is recognized using the accrual method. 33 NOTES TO FINANCIAL STATEMENTS ================================================================================ FEBRUARY 29, 1996 3. MANAGEMENT, INVESTMENT ADVISORY AND DISTRIBUTION AGREEMENTS SEI Financial Management Corporation (the "Manager"), a wholly owned subsidiary of SEI Corporation, and the Trust are parties to a management agreement dated August 30, 1988, under which the Manager provides management, administrative and shareholder services to the Fund for an annual fee equal to .45% of the average daily net assets of the International Equity Portfolio, .60% of the average daily net assets of the International Fixed Income Portfolio, .65% of the average daily net assets of the European Equity, Pacific Basin Equity and Emerging Markets Equity Portfolios. 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 Portfolio. SEI Financial Management Corporation (SFM) acts as the investment advisor for the International Equity, European Equity, Pacific Basin and the Emerging Markets Equity Portfolios. Under the Investment Advisory Agreement, SFM receives an annual fee of .475% of the average daily net assets of the International Equity and European Equity Portfolios, .55% of the Pacific Basin Equity Portfolio's average daily net assets and 1.05% of the average daily net assets of the Emerging Markets Equity Portfolio. Pursuant to a Sub-Advisory Agreement with SFM, Acadian Asset Management , Inc. serves as Sub-Advisor to the International Equity Portfolio, Montgomery Asset Management, L.P. serves as Sub-Advisor to the Emerging Markets Equity Portfolio, Morgan Grenfell Investment Services Limited serves as Sub-Advisor to the European Equity Portfolio, and Schroder Capital Management International Limited serves as Sub-Advisor to the Pacific Basin Equity Portfolio. Strategic Fixed Income, L.P., the advisor for the International Fixed Income Portfolio, is a party to an investment advisory agreement with the Trust dated June 15, 1993. Under the investment advisory agreement, Strategic Fixed Income, L.P. receives an annual fee of .30% of the average daily net assets of the Portfolio. Strategic Fixed Income, L.P. has voluntarily agreed to waive all or a portion of its fee, in conjunction with the Manager, in order to limit the total operating expenses of the Portfolio. SEI Financial Services Company (the "Distributor"), a wholly-owned subsidiary of SEI Corporation and a registered broker-dealer, acts as the distributor of the shares of the Trust under distribution plans which provide for the Trust to reimburse the Distributor for certain distribution-related expenses incurred by the Distributor. Such expenses may not exceed .30% of the average daily net assets of a Portfolio, provided those expenses are permissible as to both type and amount under a budget approved and monitored by the Board of Trustees. In addition to providing for the reimbursement payments described above, the Class D distribution plan provides for an additional payment to the Distributor. This additional payment may be used to compensate financial institutions that provide distribution-related services to their customers. The total amount of distribution-related expenses for the Class D shares of the Portfolios may not exceed .60% Certain Officers and/or Trustees of the Trust are also Officers and/or Directors of the Manager. Compensation of Officers and affiliated Trustees is paid by the Manager. 4. ORGANIZATIONAL COSTS Organizational costs have been capitalized by the Portfolio and are being amortized using the straight line method over sixty months beginning with the commencement of operations. In the event any of the initial shares of the Portfolio acquired by the Manager are redeemed during the period that the Portfolio is amortizing its organizational costs, the redemption proceeds payable to the Manager by the Portfolio will be reduced by an amount equal to a pro rata portion of the unamortized organizational costs. 34 5. FORWARD FOREIGN CURRENCY CONTRACTS The Portfolios enter into forward foreign currency exchange contracts as hedges against portfolio positions. Such contracts, which are designed to protect the value of the Portfolio'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 February 29, 1996: IN UNREALIZED MATURITY CONTRACTS TO EXCHANGE APPRECIATION DATES DELIVER/RECEIVE FOR (DEPRECIATION) - ----------------- --------------- ------------ -------------- INTERNATIONAL EQUITY PORTFOLIO: - -------------------------------------------------------------- FOREIGN CURRENCY SALES: 03/04/96 CH 550,000 $ 458,984 $ (727) 03/04/96 UK 1,375,000 2,105,666 (2,604) 03/04/96 SD 494,000 349,933 (198) ------------ --------- $ 2,914,583 $ (3,529) ============ --------- FOREIGN CURRENCY PURCHASE: 03/04/96 J(YEN) 102,786,000 $ 978,914 $ 1,871 ============ --------- $ (1,658) ========= EUROPEAN EQUITY PORTFOLIO: - -------------------------------------------------------------- FOREIGN CURRENCY SALES: 03/04/96 AD 15,607,872 $ 1,509,757 $ 14,226 03/05/96 UK 8,210 12,572 10 ------------ --------- $ 1,522,329 $ 14,236 ============ --------- FOREIGN CURRENCY PURCHASE: 03/04/96 UK 19,133 $ 29,301 $ (138) ============ --------- $ 14,098 ========= PACIFIC BASIN EQUITY PORTFOLIO: - --------------------------------------------------------------- FOREIGN CURRENCY PURCHASES: 03/01/96 J(YEN)20,572,279 $ 195,926 $ (1,277) 03/04/96 J(YEN)14,411,250 137,250 (935) --------- --------- $ 331,176 $ (2,212) ========= ========= INTERNATIONAL FIXED INCOME PORTFOLIO: - --------------------------------------------------------------- FOREIGN CURRENCY SALES: 03/07/96-04/18/96 AD 5,546,065 $ 4,230,883 $ (135,174) 03/07/96-06/20/96 BF 152,350,955 5,046,272 63,413 03/07/96-06/20/96 DM 83,734,299 57,144,793 621,708 03/07/96-06/20/96 DK 73,323,542 11,801,933 163,300 03/07/96-06/20/96 SP 818,162,585 6,580,800 (14,143) 03/07/96-06/20/96 FF 154,177,096 30,646,455 115,681 03/07/96-06/20/96 UK 29,263,889 44,640,251 209,401 03/07/96-06/20/96 IT 26,981,157,758 17,212,265 (346,437) 03/07/96-06/20/96 J(YEN) 7,339,125,890 70,259,126 1,071,672 03/07/96-04/18/96 NG 11,083,832 6,750,471 113,126 03/07/96-06/20/96 SK 42,221,800 6,241,041 (31,220) 03/21/96-06/20/96 CD 1,809,777 1,318,588 4,065 03/21/96-06/20/96 CH 11,306,282 9,473,752 246,399 03/07/96-06/30/96 NK 10,659,774 1,665,604 5,905 03/21/96-04/18/96 NZ 2,343,965 1,573,642 (62,865) 03/21/96 XE 2,612,071 3,288,686 15,583 ------------ ---------- $227,874,562 $2,040,414 ============ ---------- FOREIGN CURRENCY PURCHASES: 03/01/96-06/20/96 DM 102,395,680 $ 69,876,627 $ (725,380) 03/01/96-06/20/96 IT 33,654,133,466 21,482,184 408,728 03/07/96-06/20/96 SP 989,829,153 7,954,100 (8,229) 03/07/96-06/20/96 FF 92,756,114 17,259,873 (100,772) 03/20/96-06/20/96 UK 25,679,764 39,159,074 (186,210) 03/21/96-06/20/96 AD 5,562,691 4,236,739 110,207 03/21/96 BF 35,584,710 1,178,417 (25,447) 03/21/96-04/18/96 CD 1,917,062 1,396,787 1,422 03/21/96-04/18/96 CH 7,282,316 6,088,361 (211,696) 03/21/96-06/20/96 DK 77,895,650 13,730,158 (124,980) 03/21/96-06/20/96 J(YEN) 7,849,179,736 75,295,977 (496,309) 03/21/96-06/20/96 NG 6,625,870 4,040,839 (19,558) 03/21/96 NK 13,549,314 2,117,001 (12,464) 03/21/96-04/18/96 NZ 2,339,201 1,567,900 45,260 03/21/96-06/20/96 SK 39,672,300 5,870,231 (61,505) 03/21/96 XE 2,909,062 3,662,607 (42,664) ------------ ----------- $274,916,875 $(1,449,597) ============ ----------- $ 590,817 ============ CURRENCY LEGEND AD Australian Dollar MR Malaysian Ringgitt BF Belgian Franc NG Netherlands Guilder CD Canadian Dollar NK Norwegian Kroner CH Swiss Frank NZ New Zealand Dollar DK Danish Kroner SD Singapore Dollar DM German Mark SK Swedish Krona FF French Franc SP Spanish Peseta IT Italian Lira UK British Pounds Sterling J(YEN) Japanese Yen XE European Currency Unit 35 NOTES TO FINANCIAL STATEMENTS (Concluded) ================================================================================ FEBRUARY 29, 1996 6. INVESTMENT TRANSACTIONS The cost of security purchases and the proceeds from the sale of securities, other than short-term investments and U.S. government securities, during the period ended February 29, 1996, were as follows: PURCHASES SALES (000) (000) --------- -------- International Equity Portfolio $313,924 $355,100 European Equity Portfolio 41,082 24,083 Pacific Basin Equity Portfolio 48,305 19,295 Emerging Markets Equity Portfolio 86,563 28,557 International Fixed Income Portfolio 199,208 156,257 For Federal income tax purposes, the cost of securities owned at February 29, 1996 and the net realized gains or losses on securities sold for the period then ended was not materially different from the amounts reported for financial reporting purposes. The aggregate gross unrealized appreciation and depreciation at February 29, 1996 for the Portfolios is as follows: NET UNREALIZED APPRECIATED DEPRECIATED APPRECIATION/ SECURITIES SECURITIES (DEPRECIATION) (000) (000) (000) ----------- ----------- ------------- International Equity Portfolio $33,410 $7,085 $26,325 European Equity Portfolio 10,299 900 9,399 Pacific Basin Equity Portfolio 3,748 1,523 2,225 Emerging Markets Equity Portfolio 3,849 2,745 1,104 International Fixed Income Portfolio 574 2,021 (1,447) At February 29, 1996 the Pacific Basin Equity Portfolio had available realized capital losses to offset future net capital gains of $23,000 and $259,000 expiring at the fiscal year ending 2003 and 2004, respectively. Under current tax law, capital losses realized after October 31 may be deferred and treated as occurring on the first day of the following fiscal year. The Pacific Basin Equity Portfolio had deferred losses of $427,000 which will be treated as arising on the first day of the fiscal year ending February 28, 1997. 7. CONCENTRATION OF RISKS Each Portfolio 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 Portfolio invests in debt 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 Portfolio to meet their obligations may be a affected by economic and political developments in a specific country, industry or region. 8. SUBSEQUENT EVENT Effective March 25, 1996, all the assets and liabilities of the European Equity Portfolio and Pacific Basin Portfolio were trasferred to the International Equity Portfolio in a tax-free reorganization pursuant to a Reorganization Agreement approved by the shareholders. The net asset value of the European Equity and Pacific Basin Portfolios of $81,709,082 and $68,655,364, respectively, were transferred to the International Equity Portfolio, in exchange for 8,126,302 and 6,828,057 shares of the International Equity Portfolio; those shares were then distributed to shareholders in liquidation of the European Equity and Pacific Basin Equity Portfolios. 36 SHAREHOLDERS VOTING RESULTS (UNAUDITED) ================================================================================ There was a special meeting of shareholders scheduled for June 16, 1995 at which shareholders of the Pacific Basin Equity, International Equity, Emerging Markets Equity, European Equity and International Fixed Income Portfolios (each a "Portfolio," and together, the "Portfolios") voted on a series of proposals. The meeting was adjourned until August 15, 1995 with respect to all portfolios except the International Fixed Income Portfolio. With respect to the International Fixed Income Portfolio, none of the proposals passed due to a failure to reach a "majority of the outstanding shares" within 60 days of the meeting date. Each proposal and the results of the shareholder meeting are set forth below. I. Proposal to combine each portfolio's fundamental limitation concerning diversification with each Portfolio's fundamental limitation concerning the acquisition of more than 10% of the outstanding voting securities of any one issuer, and to amend certain other language. PACIFIC BASIN INTERNATIONAL EMERGING EUROPEAN EQUITY EQUITY MARKETS EQUITY EQUITY For 2,307,266.00 22,299,774.00 472,313.00 2,188,348.00 Against 74,966.00 1,366,282.00 5,901.00 65,620.00 Abstain 29,474.00 103,676.00 13,936.00 40,384.00 II. Proposal to amend each Portfolio's fundamental limitation concerning industry concentration. PACIFIC BASIN INTERNATIONAL EMERGING EUROPEAN EQUITY EQUITY MARKETS EQUITY EQUITY For 2,297,434.00 23,106,766.00 475,249.00 2,188,442.00 Against 79,617.00 564,745.00 5,920.00 65,794.00 Abstain 34,654.00 98,221.00 10,981.00 40,116.00 III. Proposal to amend each Portfolio's fundamental limitation concerning borrowing. PACIFIC BASIN INTERNATIONAL EMERGING EUROPEAN EQUITY EQUITY MARKETS EQUITY EQUITY For 2,031,428.00 21,012,367.00 476,696.00 1,898,045.00 Against 349,915.00 2,642,244.00 10,976.00 351,106.00 Abstain 30,312.00 115,121.00 4,478.00 45,200.00 IV. Proposal to amend each Portfolio's fundamental limitation concerning making loans. PACIFIC BASIN INTERNATIONAL EMERGING EUROPEAN EQUITY EQUITY MARKETS EQUITY EQUITY For 1,969,387.00 20,966,107.00 475,508.00 1,874,976.00 Against 373,334.00 2,686,534.00 12,164.00 370,708.00 Abstain 68,964.00 110,071.00 4,478.00 48,667.00 V. Proposal to reclassify each Portfolio's fundamental limitation concerning pledging assets as non-fundamental, and to amend certain language. PACIFIC BASIN INTERNATIONAL EMERGING EUROPEAN EQUITY EQUITY MARKETS EQUITY EQUITY For 2,293,339.00 21,331,251.00 476,029.00 2,170,912.00 Against 81,805.00 2,337,470.00 5,406.00 79,647.00 Abstain 36,361.00 100,961.00 10,715.00 43,743.00 VI. Proposal to reclassify each Portfolio's fundamental limitation concerning investment in securities for the purpose of exercising control as non-fundamental. PACIFIC BASIN INTERNATIONAL EMERGING EUROPEAN EQUITY EQUITY MARKETS EQUITY EQUITY For 2,292,520.00 21,304,810.00 483,746.00 2,176,166.00 Against 80,995.00 2,365,334.00 3,657.00 71,326.00 Abstain 38,190.00 99,588.00 4,747.00 46,860.00 VII. Proposal to amend each Portfolio's fundamental limitation concerning investment in real estate and commodities. PACIFIC BASIN INTERNATIONAL EMERGING EUROPEAN EQUITY EQUITY MARKETS EQUITY EQUITY For 2,304,598.00 22,122,319.00 478,784.00 2,167,601.00 Against 74,974.00 1,529,337.00 8,888.00 85,630.00 Abstain 32,133.00 118,076.00 4,478.00 41,121.00 VIII. Proposal to reclassify each Portfolio's fundamental limitation concerning short sales and margin sales as non-fundamental, and to amend certain language. PACIFIC BASIN INTERNATIONAL EMERGING EUROPEAN EQUITY EQUITY MARKETS EQUITY EQUITY For 2,312,105.00 21,516,304.00 476,029.00 2,182,451.00 Against 68,454.00 2,133,054.00 4,200.00 72,229.00 Abstain 31,146.00 120,374.00 11,921.00 39,872.00 IX. Proposal to reclassify each Portfolio's fundamental limitation concerning investment in securities of investment companies as non-fundamental, and to amend certain language. PACIFIC BASIN INTERNATIONAL EMERGING EUROPEAN EQUITY EQUITY MARKETS EQUITY EQUITY For 2,318,576.00 22,833,724.00 481,752.00 2,185,301.00 Against 56,157.00 812,455.00 5,920.00 68,312.00 Abstain 36,973.00 123,554.00 4,478.00 40,739.00 X. Proposal to amend each Portfolio's fundamental limitation concerning the issuance of senior securities. PACIFIC BASIN INTERNATIONAL EMERGING EUROPEAN EQUITY EQUITY MARKETS EQUITY EQUITY For 2,298,789.00 21,556,067.00 481,483.00 2,181,342.00 Against 83,423.00 2,113,371.00 5,920.00 76,008.00 Abstain 29,494.00 100,294.00 4,747.00 37,002.00 XI. Proposal to reclassify each Portfolio's fundamental limitation concerning investment in securities of an issuer whose securities are owned by officers and trustees of the Trust as non-fundamental. PACIFIC BASIN INTERNATIONAL EMERGING EUROPEAN EQUITY EQUITY MARKETS EQUITY EQUITY For 2,287,285.00 22,830,356.00 475,249.00 2,173,671.00 Against 91,685.00 806,617.00 5,920.00 83,358.00 Abstain 32,735.00 132,765.00 10,981.00 38,323.00 XII. Proposal to reclassify each Portfolio's fundamental limitation concerning investment of more than 5% of its total assets in securities of companies with less than three years of operating history as non-fundamental. PACIFIC BASIN INTERNATIONAL EMERGING EUROPEAN EQUITY EQUITY MARKETS EQUITY EQUITY For 2,292,524.00 21,804,807.00 483,984.00 2,167,409.00 Against 87,277.00 1,834,434.00 3,688.00 87,990.00 Abstain 31,904.00 130,491.00 4,478.00 38,953.00 37 SHAREHOLDERS VOTING RESULTS (CONTINUED) (UNAUDITED) ================================================================================ XIII. Proposal to reclassify each Portfolio's fundamental limitation concerning investment in restricted securities as non-fundamental, and to amend certain language. PACIFIC BASIN INTERNATIONAL EMERGING EUROPEAN EQUITY EQUITY MARKETS EQUITY EQUITY For 2,312,390.00 21,782,320.00 473,123.00 2,178,581.00 Against 68,941.00 1,831,739.00 8,041.00 73,315.00 Abstain 30,374.00 105,673.00 10,986.00 42,456.00 XV. Authorization for the Board of Trustees to appoint Investment Sub-Advisers for the European Equity Portfolio of the Trust without seeking approval by the Portfolio's Shareholders of the contracts pursuant to which sub-advisers serve. EUROPEAN EQUITY For 2,196,438.00 Against 60,857.00 Abstain 37,057.00 XVI. Authorization for the Board of Trustees to appoint Investment Sub-Advisers for the Pacific Basin Equity Income Portfolio of the Trust without seeking approval by the Portfolio's Shareholders of the contracts pursuant to which such sub-advisers serve. PACIFIC BASIN EQUITY For 2,329,685.00 Against 51,089.00 Abstain 30,990.00 XVIII. Approval of the Investment Adviser and the Investment Advisory Agreement for the European Equity Portfolio of the Trust. EUROPEAN EQUITY For 2,204,804.00 Against 50,537.00 Abstain 39,011.00 Adviser and the Investment Advisory Agreement for the Pacific Basin Equity Portfolio of the Trust. PACIFIC BASIN EQUITY For 2,336,191.00 Against 45,856.00 Abstain 29,749.00 XXI. Approval of an Investment Sub-Adviser and the Investment Sub-Advisory Agreement for the European Equity Portfolio of the Trust. EUROPEAN EQUITY For 2,202,022.00 Against 51,696.00 Abstain 39,334.00 XXII. Approval of an Investment Sub-Adviser and the Investment Sub-Advisory Agreement for the Pacific Basin Equity Portfolio of the Trust. PACIFIC BASIN EQUITY For 2,335,053.00 Against 45,555.00 Abstain 31,098.00 38 NOTICE TO SHAREHOLDERS (UNAUDITED) ================================================================================ FEBRUARY 29, 1996 For shareholders that do not have a February 29, 1996 taxable year end, this notice is for informational purposes only. For shareholders with a February 29, 1996 taxable year end, please consult your tax advisor as to the pertinence of this notice. For the fiscal year ended February 29, 1996 the Portfolios of the SEI International Trust are designating long term capital gains and qualifying dividend income with regard to distributions paid during the year as follows: (A) (B) LONG TERM ORDINARY CAPITAL GAINS INCOME TOTAL DISTRIBUTIONS DISTRIBUTIONS DISTRIBUTIONS PORTFOLIO (TAX BASIS) (TAX BASIS) (TAX BASIS) - ---------- ------------- ------------- ------------- International Equity 83% 17% 100% European Equity 0% 100% 100% Pacific Basin Equity 0% 100% 100% Emerging Markets Equity 0% 100% 100% International Fixed Income 1% 99% 100% (C) (D) (E) QUALIFYING TAX-EXEMPT FOREIGN PORTFOLIO DIVIDENDS(1) INTEREST TAX CREDIT - ---------- ------------ ---------- ---------- International Equity 0% 0% 15%(3) European Equity 0% 0% 25% Pacific Basin Equity 0% 0% 8% Emerging Markets Equity 0% 0% 0% International Fixed Income 0% 0% 1% (1) Qualifying dividends represent dividends which qualify for the corporate dividends received deduction. (2) See attached notice which details the per share amount of foreign taxes paid by country and the per share amount of each dividend that represents income derived from sources within each country. (3) This amount represents the Foreign Tax Credit for Class A. The Foreign Tax Credit for Class D is 16%. * Items (A) and (B) are based on the percentage of each fund's total distribution. ** Item (C) is based on the percentage of ordinary income of each fund. *** Item (D) is based on the percentage of gross income of each fund. 39 NOTICE TO SHAREHOLDERS (UNAUDITED) ================================================================================ FEBRUARY 29, 1996 FOR TAXPAYERS FILING ON A CALENDAR YEAR BASIS, THIS NOTICE IS FOR INFORMATIONAL PURPOSES ONLY. The SEI International Trust International Equity Portfolio, European Equity Portfolio, Pacific Basin Equity Portfolio and International Fixed Income Portfolio have made an election under Section 853 of the Internal Revenue Code (the "Code") to provide a foreign tax deduction or credit to their shareholders for the fiscal year ended February 29, 1996. The information provided below is pertinent to taxpayers who meet the following two criteria: 1) file a U.S. Federal Income Tax Return and 2) held shares of the Portfolio on the dividend record date of December 29, 1995 and satisfy the applicable requirements of the Code. The amount per share of income from and foreign taxes paid to each country is listed in the following schedules: INTERNATIONAL EQUITY PORTFOLIO CLASS A CLASS D GROSS FOREIGN GROSS FOREIGN COUNTRY DIVIDEND TAXES PAID DIVIDEND TAXES PAID Australia $0.0242 $0.0030 $0.0227 $0.0030 Belgium 0.0089 0.0013 0.0084 0.0013 Canada 0.0067 0.0009 0.0063 0.0009 France 0.0217 0.0000 0.0202 0.0000 Germany 0.0089 0.0010 0.0084 0.0010 Hong Kong 0.0053 0.0000 0.0049 0.0000 Italy 0.0048 0.0008 0.0045 0.0008 Japan 0.0275 0.0044 0.0259 0.0044 Malaysia 0.0042 0.0009 0.0040 0.0009 Netherlands 0.0105 0.0017 0.0099 0.0017 New Zealand 0.0040 0.0007 0.0038 0.0007 Norway 0.0020 0.0003 0.0018 0.0003 Singapore 0.0040 0.0005 0.0037 0.0005 Spain 0.0104 0.0015 0.0097 0.0015 Sweden 0.0008 0.0001 0.0008 0.0001 Switzerland 0.0064 0.0010 0.0060 0.0010 U.K. 0.0615 0.0103 0.0579 0.0103 U.S. 0.0082 0.0000 0.0077 0.0000 ------- ------- ------- ------- $0.2200 $0.0284 $0.2066 $0.0284 EUROPEAN EQUITY PORTFOLIO GROSS FOREIGN COUNTRY DIVIDEND TAXES PAID Belgium $0.0015 $0.0004 Denmark 0.0005 0.0001 Finland 0.0008 0.0002 France 0.0093 0.0000 Germany 0.0070 0.0013 Italy 0.0022 0.0005 Netherlands 0.0069 0.0016 Norway 0.0011 0.0003 Spain 0.0056 0.0014 Sweden 0.0078 0.0018 Switzerland 0.0055 0.0012 U.K. 0.0636 0.0156 U.S. 0.0110 0.0000 ------- ------- $0.1228 $0.0244 PACIFIC BASIN EQUITY PORTFOLIO GROSS FOREIGN COUNTRY DIVIDEND TAXES PAID Australia $0.0166 $0.0008 Hong Kong 0.0248 0.0003 Japan 0.0521 0.0058 Malaysia 0.0055 0.0010 New Zealand 0.0062 0.0007 Singapore 0.0071 0.0012 South Korea 0.0037 0.0005 U.S. 0.0259 0.0000 ------- ------- $0.1419 $0.0103 INTERNATIONAL FIXED INCOME PORTFOLIO GROSS FOREIGN COUNTRY DIVIDEND TAXES PAID Australia $0.0115 $0.0000 Belgium 0.0188 0.0000 Canada 0.0216 0.0000 Denmark 0.0734 0.0000 France 0.0251 0.0000 Germany 0.3151 0.0000 Italy 0.1231 0.0072 Japan 0.1640 0.0000 Netherlands 0.0984 0.0000 New Zealand 0.0115 0.0000 Norway 0.0068 0.0000 Spain 0.0191 0.0000 Sweden 0.0319 0.0000 U.K. 0.0068 0.0000 U.S. 0.0276 0.0000 ------- ------- $0.9547 $0.0072 40 NOTES ========================== SEI INTERNATIONAL TRUST ========================== ANNUAL REPORT ========================== FEBRUARY 29, 1996 Robert A. Nesher CHAIRMAN TRUSTEES Richard F. Blanchard William M. Doran F. Wendell Gooch Frank E. Morris James M. Storey OFFICERS David G. Lee PRESIDENT AND CHIEF EXECUTIVE OFFICER Jeffrey A. Cohen CONTROLLER, ASSISTANT SECRETARY Todd Cipperman VICE PRESIDENT, ASSISTANT SECRETARY Joseph M. Lydon VICE PRESIDENT, ASSISTANT SECRETARY Sandra K. Orlow VICE PRESIDENT, ASSISTANT SECRETARY Kevin P. Robins VICE PRESIDENT, ASSISTANT SECRETARY Kathryn L. Stanton VICE PRESIDENT, ASSISTANT SECRETARY Richard W. Grant SECRETARY INVESTMENT ADVISORS INTERNATIONAL EQUITY PORTFOLIO SEI Financial Management EUROPEAN EQUITY PORTFOLIO SEI Financial Management PACIFIC BASIN EQUITY PORTFOLIO SEI Financial Management EMERGING MARKETS PORTFOLIO SEI Financial Management INTERNATIONAL FIXED INCOME PORTFOLIO Strategic Fixed Income L.P. MANAGER AND SHAREHOLDER SERVICING AGENT SEI Financial Management Corporation DISTRIBUTOR SEI Financial Services Company INDEPENDENT ACCOUNTANTS Price Waterhouse LLP LEGAL COUNSEL Morgan, Lewis & Bockius 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. SEI FINANCIAL SERVICES COMPANY, THE DISTRIBUTOR OF THE SEI FUNDS, IS NOT AFFILIATED WITH ANY BANK. FOR MORE INFORMATION CALL 1(BULLET)800(BULLET)DIAL(BULLET)SEI/ 1(BULLET)800(BULLET)342(BULLET)5734 SEI-F-018-05 -----END PRIVACY-ENHANCED MESSAGE-----