-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, G5CzHJ8Xi87a7PrmGd67zxCj2k/dD+gGE73fFWnHP90kC5fnuEOZHaxNVVRx8zRW TVbQMfiVzEZdA7oECeNk8A== 0000950109-95-002756.txt : 19950724 0000950109-95-002756.hdr.sgml : 19950724 ACCESSION NUMBER: 0000950109-95-002756 CONFORMED SUBMISSION TYPE: 497 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19950721 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: SEI INTERNATIONAL TRUST CENTRAL INDEX KEY: 0000835597 STANDARD INDUSTRIAL CLASSIFICATION: [] STATE OF INCORPORATION: MA FISCAL YEAR END: 0228 FILING VALUES: FORM TYPE: 497 SEC ACT: 1933 Act SEC FILE NUMBER: 033-22821 FILM NUMBER: 95555161 BUSINESS ADDRESS: STREET 1: 2 OLIVER ST CITY: BOSTON STATE: MA ZIP: 02109 BUSINESS PHONE: 8003425734 MAIL ADDRESS: STREET 1: SEI INTERNATIONAL TRUST STREET 2: 680 E SWEDESFORD RD CITY: WAYNE STATE: PA ZIP: 19087 FORMER COMPANY: FORMER CONFORMED NAME: SEI WEALTH MANAGEMENT TRUST DATE OF NAME CHANGE: 19900129 497 1 FORM 497(E) SEI INTERNATIONAL TRUST INTERNATIONAL EQUITY PORTFOLIO EUROPEAN EQUITY PORTFOLIO PACIFIC BASIN EQUITY PORTFOLIO EMERGING MARKETS EQUITY PORTFOLIO INTERNATIONAL FIXED INCOME PORTFOLIO SUPPLEMENT DATED JULY 21, 1995 TO THE INSTITUTIONAL CLASS PROSPECTUS DATED NOVEMBER 2, 1994 THIS SUPPLEMENT TO THE PROSPECTUS SUPERSEDES AND REPLACES ANY EXISTING SUPPLEMENTS TO THE PROSPECTUS. THIS SUPPLEMENT PROVIDES NEW AND ADDITIONAL INFORMATION BEYOND THAT CONTAINED IN THE PROSPECTUS AND SHOULD BE RETAINED IN CONJUNCTION WITH SUCH PROSPECTUS. ___________________ A Statement of Additional Information dated June 28, 1995 has been filed with the Securities and Exchange Commission and is available without charge through the Distributor, SEI Financial Services Company, 680 East Swedesford Road, Wayne, PA 19087 or by calling 1-800-342-5734. ___________________ At a meeting held on December 6-7, 1994, the Board of Trustees of the Trust voted to change the name of the International Equity Portfolio to the "Core International Equity Portfolio" effective December 16, 1994. ___________________ At a meeting scheduled to be held in July, 1995, shareholders of record of each Portfolio at the close of business on April 20, 1995 will be voting to (i) amend, reclassify or eliminate certain of the Trust's fundamental investment limitations to provide management efficiency and investment flexibility, and to minimize the need for shareholder meetings to change certain investment limitations in the future; (ii) approve the "Manager of Managers" structure wherein the Board of Trustees may, upon the recommendation of SEI Financial Management Corporation ("SFM"), appoint additional or replacement investment sub-advisers for the International Fixed Income, European Equity and Pacific Basin Equity Portfolios without seeking approval of those Portfolio's shareholders (which arrangement also requires an order of exemption from the Securities and Exchange Commission before becoming effective); (iii) approve SFM as the investment adviser for the International Fixed Income, European Equity and Pacific Basin Equity Portfolios in connection with the "Manager of Managers" structure; and (iv) approve Strategic Fixed Income L.P., Morgan Grenfell Investment Services Limited and Schroder Capital Management International Limited as investment sub-advisers for the International Fixed Income, European Equity and Pacific Basin Equity Portfolios, respectively. ___________________ 1 The "ANNUAL OPERATING EXPENSES" table on page 2 is amended and restated to read as follows: ANNUAL OPERATING EXPENSES (AS A PERCENTAGE OF AVERAGE NET ASSETS)/1/ - --------------------------------------------------------------------------------
CORE EMERGING INTERNATIONAL EUROPEAN PACIFIC MARKETS INTERNATIONAL EQUITY EQUITY BASIN EQUITY EQUITY FIXED INCOME PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO --------- --------- --------- --------- --------- Management/Advisory Fees (after fee waiver and reimbursement)/1/ .91% .80% .78% .80% .57% 12b-1 Fees/2/ .15% .15% .15% .15% .15% Other Expenses .19% .35% .37% 1.00% .28% - ---------------------------------------------------------------------------------------------------------------------------------- Total Operating Expenses (after fee waiver and reimbursement)/3/ 1.25% 1.30% 1.30% 1.95% 1.00% - ----------------------------------------------------------------------------------------------------------------------------------
1 SEI Financial Management Corporation ("SFM"), in its capacity as Manager for each Portfolio, has waived, on a voluntary basis, a portion of its management fee, and the management/advisory fees shown reflect this voluntary waiver. SFM reserves the right to terminate its waiver at any time in its sole discretion. Absent such fee waiver, management/advisory fees would be .93% for the Core International Equity Portfolio, 1.13% for the European Equity Portfolio, 1.20% for the Pacific Basin Equity Portfolio and .90% for the International Fixed Income Portfolio. For the Emerging Markets Equity Portfolio, SFM has agreed to waive its management fee, and, if necessary, pay other operating expenses of the Portfolio in an amount that operates to limit the total operating expenses of the Class A Shares. Absent this fee waiver and expense reimbursement, management/advisory fees would be 1.70% for the Emerging Markets Equity Portfolio. 2 The 12b-1 fees shown reflect each Portfolio's current 12b-1 budget for reimbursement of expenses. The maximum 12b-1 fees payable by Class A shares for each Portfolio are .30% . 3 Absent the voluntary fee waiver and expense reimbursement described above, total operating expenses would be 1.27% for the Core International Equity Portfolio, 1.78% for the European Equity Portfolio, 1.87% for the Pacific Basin Equity Portfolio, 2.85% for the Emerging Markets Equity Portfolio and 1.48% for the International Fixed Income Portfolio. Additional information may be found under "The Advisers," "The Sub-Advisers" and "The Manager and Shareholder Servicing Agent." ================================================================================ ______________ The "EXAMPLE" table on page 2 is amended and restated to read as follows: Example - -------------------------------------------------------------------------------- An investor in a Portfolio would pay the following expenses on a $1,000 investment assuming (1) 5% annual return and (2) redemption at the end of each time period:
1 YR. 3 YRS. 5 YRS. 10 YRS. ----- ------ ------ ------- Core International Equity $13.00 $40.00 $ 69.00 $151.00 European Equity $13.00 $41.00 $ 71.00 $157.00 Pacific Basin Equity $13.00 $41.00 $ 71.00 $157.00 Emerging Markets Equity $20.00 $61.00 $105.00 $227.00 International Fixed Income $10.00 $32.00 $ 55.00 $122.00 - ---------------------------------------------------------------------------------------------------------------------------------
THE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN. The purpose of the expense table and example is to assist the investor in understanding the various costs and expenses that may be directly or indirectly borne by investors in Class A shares of the Portfolios. A person who purchases shares through a financial institution may be charged separate fees by that institution. The information set forth in the foregoing table and example relates only to the Portfolios' Class A shares. Each Portfolio also offers Class D shares, which are subject to the same expenses except that Class D shares bear sales loads and different distribution costs and additional transfer agent costs and sales loads. A person who purchases shares through a financial institution may be charged separate fees by that institution. Additional information may be found under "The Manager and Shareholder Servicing Agent," "The Advisers," "The Sub-Advisers" and "Distribution." Long-term shareholders may eventually pay more than the economic equivalent of the maximum front-end sales charges otherwise permitted by the Rules of Fair Practice (the "Rules") of the National Association of Securities Dealers, Inc. ("NASD"). ________________ 2 The "FINANCIAL HIGHLIGHTS" tables on pages 3-4 are amended and restated to read as follows: FINANCIAL HIGHLIGHTS _________________________________________________________ The following information has been audited (except as specifically noted) by Price Waterhouse LLP, the Trust's independent accountants, as indicated in their report dated April 11, 1995 on the Trust's financial statements as of April 11, 1995 included in the Trust's Statement of Additional Information under "Financial Highlights." In addition, unaudited financial information for the period January 17, 1995 through May 17, 1995 for the Emerging Markets Equity Portfolio is provided below. Additional performance information is set forth in the 1995 Annual Report to Shareholders and is available upon request and without charge by calling 1-800-342-5734. This information should be read in conjunction with the Trust's financial statements and notes thereto. FOR A CLASS A SHARE OUTSTANDING THROUGHOUT THE PERIOD - --------------------------------------------------------------------------------
CORE INTERNATIONAL EQUITY PORTFOLIO ----------------------------------- 3/1/94 3/1/93 3/1/92 3/1/91 3/1/90 12/20/89 to to to to to to 2/8/95 2/28/94 2/28/93 2/29/92 2/28/91 2/28/90/1/ - ------------------------------------------------------------------------------------------------------------------------------------ Net Asset Value, Beginning of Period $11.00 $8.93 $9.09 $9.56 $9.62 $10.00 - ------------------------------------------------------------------------------------------------------------------------------------ Income from Investment Operations: Net Investment Income (Loss) 0.15 0.13 0.16 0.19 0.18 0.04 Net Realized and Unrealized Gains (Losses) (0.97) 2.05 0.04 (0.36) (0.14) (0.42) - ------------------------------------------------------------------------------------------------------------------------------------ Total from Investment Operations (0.82) 2.18 0.20 (0.17) 0.04 (0.38) - ------------------------------------------------------------------------------------------------------------------------------------ Less Distributions: Distributions from Net Investment Income/2/ -- (0.11) (0.36) (0.30) -- -- Distributions from Realized Capital Gains (0.59) -- -- -- (0.01) -- Return of Capital -- -- -- -- (0.09) -- - ------------------------------------------------------------------------------------------------------------------------------------ Total Distributions (0.59) (0.11) (0.36) (0.30) (0.10) -- - ------------------------------------------------------------------------------------------------------------------------------------ Net Asset Value, End of Period $9.59 $11.00 $8.93 $9.09 $9.56 $9.62 ==================================================================================================================================== Total Return (7.67)% 24.44% 2.17% (1.63)% 0.36% (3.70)% ==================================================================================================================================== Ratios and Supplemental Data: Net Assets, End of Period (000) $328,503 $503,498 $178,287 $92,456 $35,829 $8,661 Ratio of Expenses to Average Net Assets 1.19% 1.10% 1.10% 1.10% 1.10% 1.10% Ratio of Expenses to Average Net Assets (Excluding Waivers) 1.21% 1.24% 1.53% 1.52% 1.64% 5.67% Ratio of Net Investment Income (Loss) to Average Net Assets 1.30% 1.46% 1.80% 2.07% 3.52% 3.13% Ratio of Net Investment Income (Loss) to Average Net Assets (Excluding Waivers) 1.28% 1.32% 1.37% 1.63% 2.98% (1.44)% Portfolio Turnover Rate 64% 19% 23% 79% 14% --% - ------------------------------------------------------------------------------------------------------------------------------------
1 The Core International Equity Class A shares were offered beginning December 20, 1989. All ratios and total return for the period have been annualized. 2 Distributions from net investment income include distributions of certain foreign currency gains and losses. 3 FINANCIAL HIGHLIGHTS (CONTINUED) _______________________________________________ FOR A CLASS A SHARE OUTSTANDING THROUGHOUT THE PERIOD - --------------------------------------------------------------------------------
EUROPEAN PACIFIC BASIN EMERGING MARKETS INTERNATIONAL EQUITY PORTFOLIO EQUITY PORTFOLIO EQUITY PORTFOLIO FIXED INCOME PORTFOLIO ---------------- ---------------- ---------------- ---------------------- (unaudited) 4/29/94 4/29/94 1/17/95 1/17/95 3/1/94 9/1/93 to to to to to to 2/28/95/1/ 2/28/95/2/ 5/17/95 2/28/95/3/ 2/28/95 2/28/94/4/ - ------------------------------------------------------------------------------------------------------------------------------------ Net Asset Value, Beginning of Period $10.00 $10.00 $10.00 $10.00 $10.23 $10.00 - ------------------------------------------------------------------------------------------------------------------------------------ Income from Investment Operations: Net Investment Income (Loss) 0.06 (0.02) 0.02 0.01 0.43 0.15 Net Realized and Unrealized Gains (0.11) (1.25) 1.09 0.26 0.40 0.17 (Losses) - ------------------------------------------------------------------------------------------------------------------------------------ Total from Investment Operations (0.05) (1.27) 1.11 0.27 0.83 0.32 - ------------------------------------------------------------------------------------------------------------------------------------ Less Distributions: Distributions from Net Investment Income/5/ (0.05) -- -- -- (0.62) (0.09) Distributions from Realized Capital Gains -- -- -- -- (0.02) -- Return of Capital -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total Distributions (0.05) -- -- -- (0.64) (0.09) - ------------------------------------------------------------------------------------------------------------------------------------ Net Asset Value, End of Period $9.90 $8.73 $11.11 $10.27 $10.42 $10.23 =================================================================================================================================== Total Return (0.40)% (12.70)% 11.10% 2.70% 8.43% 6.41% =================================================================================================================================== Ratios and Supplemental Data: Net Assets, End of Period (000) $36,278 $33,048 $11,519 $5,300 $42,580 $23,678 Ratio of Expenses to Average Net Assets 1.30% 1.30% 1.95% 1.95% 1.00% 1.00% Ratio of Expenses to Average Net Assets (Excluding Waivers) 1.57% 1.68% 3.30% 4.98% 1.30% 1.61% Ratio of Net Investment Income (Loss) to Average Net Assets 1.02% (0.41)% 1.17% 1.79% 4.68% 3.81% Ratio of Net Investment Income (Loss) to Average Net Assets (Excluding Waivers) 0.75% (0.79)% (0.18)% (1.24)% 4.38% 3.20% Portfolio Turnover Rate 29% 9% 60% -- 303% 126% - ------------------------------------------------------------------------------------------------------------------------------------
1 The European Equity Class A shares were offered beginning April 29, 1994. All ratios and total return for the period have been annualized. 2 The Pacific Basin Equity Class A shares were offered beginning April 19, 1994. All ratios and total return for the period have been annualized. 3 The Emerging Markets Equity Class A shares were offered beginning January 17, 1995. All ratios for that period have been annualized. 4 The International Fixed Income Class A shares were offered beginning September 1, 1993. All ratios and total return for the period have been annualized. 5 Distributions from net investment income include distributions of certain foreign currency gains and losses. ___________ After the last paragraph under the heading "EMERGING MARKETS EQUITY" in the "GENERAL INVESTMENT POLICIES" section on page 9, the following language is inserted: The Fund's investments in emerging markets can be considered speculative, and therefore may offer higher potential for gains and losses than developed markets of the world. With respect to any emerging country, there is the greater potential for nationalization, expropriation or confiscatory taxation, political changes, government regulation, social instability or diplomatic developments (including war) which could adversely affect the economies of or investments in such countries. The economies of developing countries generally are heavily dependent upon international trade and, accordingly, have been and may continue to be 4 adversely affected by trade barriers, exchange controls, managed adjustments in relative currency values and other protectionist measures imposed or negotiated by the countries with which they trade. ____________________ The first sentence in the second paragraph in the "MANAGER AND SHAREHOLDER SERVICING AGENT" section on page 13 is amended and restated to read as follows: For these services, the Manager is entitled to a fee which is calculated daily and paid monthly at an annual rate of .45% of the Core International Equity Portfolio, .80% of the average daily net assets of the European Equity and Pacific Basin Equity Portfolios, .65% of the average daily net assets of the Emerging Markets Equity Portfolio and .60% of the average daily net assets of the International Fixed Income Portfolio. ____________________ The last paragraph in the "MANAGER AND SHAREHOLDER SERVICING AGENT" section on page 13 is amended and restated to read as follows: For the fiscal year ended February 28, 1995, the Portfolios paid SEI Financial Management Corporation ("SFM") fees (shown as a percentage of average daily net assets after fee waivers) as follows: Core International Equity--.56%; European Equity--.53%; Pacific Basin Equity--.42%; and International Fixed Income--.35%. For the fiscal year ended February 28, 1995, SFM waived all management fees and reimbursed expenses of the Emerging Markets Equity Portfolio equivalent to 2.38% of its average daily net assets. ____________________ The second sentence under the heading "MORGAN GRENFELL INVESTMENT SERVICES LIMITED" in "THE ADVISERS" section on page 14 is amended and restated to read as follows: MG, a subsidiary of Morgan Grenfell Asset Management Limited, managed over $9.5 billion in assets as of December 31, 1994. ____________________ After the last paragraph under the heading "MORGAN GRENFELL INVESTMENT SERVICES LIMITED" in "THE ADVISERS" section on page 14, the following language is inserted: For the fiscal year ended February 28, 1995, MG received an advisory fee of .325% of the European Equity Portfolio's average daily net assets. ____________________ The last sentence of the first paragraph under the heading "SCHRODER CAPITAL MANAGEMENT INTERNATIONAL LIMITED" in "THE ADVISERS" section on page 14 is amended and restated to read as follows: As of March 1, 1995, the Schroder Group had over $80 billion in assets under management. As of that date, SC had over $13 billion in assets under management. ____________________ After the last paragraph under the heading "SCHRODER CAPITAL MANAGEMENT INTERNATIONAL LIMITED" in "THE ADVISERS" section on page 14, the following language is inserted: For the fiscal year ended February 28, 1995, SC received an advisory fee of .40% of the Pacific Basin Equity Portfolio's average daily net assets. ____________________ The last sentence of the first paragraph under the heading "SEI FINANCIAL MANAGEMENT CORPORATION" in "THE ADVISERS" section on page 15 is amended and restated to read as follows: 5 As of March 31, 1995, assets for which SEI Financial Management Corporation ("SFM") served as manager totalled approximately $48 billion. __________________ After the last paragraph under the heading "SEI FINANCIAL MANAGEMENT CORPORATION" in "THE ADVISERS" section on page 15 the following is inserted: SFM has managed the Core International Equity and Emerging Markets Equity Portfolios since November 7, 1994. For the fiscal year ended February 28, 1995, SFM received the following advisory fees (shown here as a percentage of average daily net assets): Core International Equity Portfolio .475% and Emerging Markets Equity Portfolio 1.05%. __________________ The third and fourth sentence of the first paragraph under the heading "STRATEGIC FIXED INCOME L.P." in "THE ADVISERS" section on page 15 is amended and restated to read as follows: As of March 1, 1995, SFI managed $4 billion in global and international fixed income portfolios. Together, as of March 1, 1995, SFI and SIM managed over $15 billion in client assets. __________________ The last sentence of the last paragraph under the heading "STRATEGIC FIXED INCOME L.P." in "THE ADVISERS" section on page 15 is amended and restated to read as follows: As of the fiscal year ended February 28, 1995, the Portfolio paid advisory fees of .25% of its average daily net assets. __________________ The second sentence of the second paragraph under the heading "MONTGOMERY ASSET MANAGEMENT, L.P." in "THE SUB-ADVISERS" section on page 15 is amended and restated to read as follows: As of March 31, 1995, MAM had approximately $4.5 billion in assets under management. __________________ After the last paragraph under the heading "MONTGOMERY ASSET MANAGEMENT, L.P." in "THE SUB-ADVISERS" section on page 16, the following language is inserted: For the fiscal year ended February 28, 1995, MAM received a sub-advisory fee of .98% of the Portfolio's average daily net assets. __________________ After the second sentence of the last paragraph under the heading "ACADIAN ASSET MANAGEMENT, INC." in "THE SUB-ADVISERS" section on page 16, the following sentence is inserted: Acadian has managed the Core International Equity Portfolio since November 7, 1994. __________________ The fourth sentence of the second paragraph under the heading "WORLDINVEST LIMITED" in "THE SUB-ADVISERS" section on page 17 is amended and restated to read as follows: Total global assets under management as of February 28, 1995 were more than $5.7 billion, of which more than $3.0 billion were invested in global equities. __________________ After the second sentence of the last paragraph under the heading "WORLDINVEST LIMITED" in "THE SUB-ADVISERS" section on page 17, the following sentence is inserted: WorldInvest has managed the Core International Equity Portfolio since November 7, 1994. 6 __________________ After the last paragraph of the "DISTRIBUTION" section on page 17, the following language is inserted: Currently, the distribution budget (shown here as a percentage of average daily net assets) for the Core International Equity, European Equity, Pacific Basin Equity, Emerging Markets Equity and International Fixed Income Portfolios is .15%. Distribution expenses not attributable to a specific Portfolio are allocated among each of the Portfolios of the Trust based on average net assets. The Class D Plan, in addition to providing for the reimbursement payments described above, provides for payments to the Distributor in an amount not to exceed .30% of the Portfolio's average daily net assets attributable to Class D shares. These additional payments are characterized as "compensation," and are not directly tied to expenses incurred by the Distributor; the payments the Distributor receives during any year may therefore be higher or lower than its actual expenses. This additional payment may be used to compensate financial institutions that provide distribution-related services to their customers. It is possible that an institution may offer different classes of shares to its customers and thus receive different compensation with respect to different classes. These financial institutions may also charge separate fees to their customers. The Trust may also execute brokerage or other agency transactions through the Distributor for which the Distributor may receive usual and customary compensation. In addition, the Distributor may, from time to time in its sole discretion, institute one or more promotional incentive programs, which will be paid by the Distributor from the sales charge it receives or from any other source available to it. Under any such program, the Distributor will provide promotional incentives, in the form of cash or other compensation, including merchandise, airline vouchers, trips and vacation packages, to all dealers selling shares of the Portfolios. Such promotional incentives will be offered uniformly to all dealers and predicated upon the amount of shares of the Portfolios sold by the dealer. __________________ After the third paragraph in the "PURCHASE AND REDEMPTION OF SHARES" section on page 18, the following language is inserted: In addition, because excessive trading (including short-term "market timing" trading) can hurt a Portfolio's performance, each Portfolio may refuse purchase orders from any shareholder account if the accountholder has been advised that previous purchase and redemption transactions were considered excessive in number or amount. Accounts under common control or ownership, including those with the same taxpayer identification number and those administered so as to redeem or purchase shares based upon certain predetermined market indicators, will be considered one account for this purpose. __________________ The last sentence of the fourth paragraph in the "PURCHASE AND REDEMPTION OF SHARES" section on page 18 is amended and restated to read as follows: Net asset value per share is determined daily as of the close of business of the New York Stock Exchange (currently, 4:00 p.m. Eastern time) on any Business Day. __________________ After the last paragraph under the "GENERAL INFORMATION - THE TRUST" section on page 21, the following language is inserted: Certain shareholders in one or more of the Portfolios may obtain asset allocation services with respect to their investments in such Portfolios. If a sufficient amount of a Portfolio's assets are subject to such asset allocation services, the Portfolio may incur higher transaction costs and a higher portfolio turnover rate that would otherwise be anticipated as a result of redemptions and purchases of Portfolio shares pursuant to such services. 7 "THE DESCRIPTION OF PERMITTED INVESTMENTS - SHORT SALES" section on page 29 is amended and restated as follows: The International Fixed Income Portfolio may sell securities "short against the box." A short sale is "against the box" if at all times during which the short position is open, the Portfolio owns at least an equal amount of the securities or securities convertible into, or exchangeable without further consideration for, securities of the same issue as the securities that are sold short. PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE 8 SEI INTERNATIONAL TRUST Manager and Shareholder Servicing Agent: SEI Financial Management Corporation Distributor: SEI Financial Services Company Investment Advisers and Sub-Advisers: SEI Financial Management Corporation Acadian Asset Management, Inc. Montgomery Asset Management, L.P. Morgan Grenfell Investment Services Limited Schroder Capital Management International Limited Strategic Fixed Income L.P. WorldInvest Limited This Statement of Additional Information is not a Prospectus. It is intended to provide additional information regarding the activities and operations of SEI International Trust (the "Trust") and should be read in conjunction with the Trust's Prospectuses dated June 28, 1995. Prospectuses may be obtained through SEI Financial Services Company, 680 East Swedesford Road, Wayne, PA 19087-1658.
TABLE OF CONTENTS The Trust...................................................... S-2 Description of Permitted Investments........................... S-2 Description of Ratings......................................... S-4 Investment Limitations......................................... S-8 Non-Fundamental Policies....................................... S-8 The Manager and Shareholder Servicing Agent.................... S-9 The Advisers and Sub-Advisers.................................. S-10 Distribution................................................... S-11 Trustees and Officers of the Trust............................. S-12 Performance.................................................... S-14 Purchase and Redemption of Shares.............................. S-16 Shareholder Services (Class D shares).......................... S-17 Taxes.......................................................... S-18 Portfolio Transactions......................................... S-19 Description of Shares.......................................... S-22 Limitation of Trustees' Liability.............................. S-22 Voting......................................................... S-22 Shareholder Liability.......................................... S-22 Control Persons and Principal Holders of Securities............ S-23 Experts........................................................ S-23 Financial Statements........................................... S-23
June 28, 1995, as amended July 21, 1995 SEI-F-046-10 THE TRUST SEI International Trust (the "Trust") is an open-end management investment company established under Massachusetts law as a Massachusetts business trust under a Declaration of Trust dated June 30, 1988 and which has diversified and non-diversified portfolios. The Declaration of Trust permits the Trust to offer separate series ("portfolios") of units of beneficial interest ("shares") and separate classes of portfolios. Except for differences between a Portfolio's Class A shares and Class D shares pertaining to distribution plans, voting rights, dividends and transfer agent expenses, each share of each portfolio represents an equal proportionate interest in that portfolio with each other share of that portfolio. This Statement of Additional Information relates to the following portfolios: Core International Equity, European Equity, Pacific Basin Equity, Emerging Markets Equity and International Fixed Income Portfolios (the "Portfolios" and each of these, a "Portfolio"), and any different classes of the Portfolios. DESCRIPTION OF PERMITTED INVESTMENTS Bank Obligations of United States commercial banks or savings and loan institutions which the Portfolios may buy include certificates of deposit, time deposits and bankers' acceptances. A time deposit is an account containing a currency balance pledged to remain at a particular bank for a specified period in return for payment of interest. A bankers' acceptance is a bill of exchange guaranteed by a bank or trust company for payment within one to six months. Bankers' acceptances are used to provide manufacturers and exporters with capital to operate between the time of manufacture or export and payment by the purchaser. Bank obligations are permitted investments for the Portfolios. Commercial Paper which the Portfolios may purchase includes variable amount master demand notes which may or may not be backed by bank letters of credit. These notes permit the investment of fluctuating amounts at varying market rates of interest pursuant to direct arrangements between a Portfolio, as lender, and the borrower. Such notes provide that the interest rate on the amount outstanding varies on a daily, weekly or monthly basis depending upon a stated short-term interest rate index. There is no secondary market for the notes. The following descriptions of commercial paper ratings have been published by Standard & Poor's Corporation ("S&P") and Moody's Investors Service, Inc. ("Moody's"), respectively. Commercial paper rated A by S&P is regarded by S&P as having the greatest capacity for timely payment. Issues rated A are further refined by use of the numbers 1+, 1, 2 and 3 to indicate the relative degree of safety. Issues rated A-1+ are those with an "overwhelming degree" of credit protection. Those rated A-1 reflect a "very strong" degree of safety regarding timely payment. Those rate A-2 reflect a "satisfactory" degree of safety regarding timely payment. Commercial paper issuers rated Prime-1 or Prime-2 by Moody's are judged by Moody's to be of "superior" quality and "strong" quality, respectively, on the basis of relative repayment capacity. Forward Foreign Currency Contracts involve an obligation to purchase or sell a specified currency at a future date at a price set at the time of the contract. Forward currency contracts do not eliminate fluctuations in the values of portfolio securities but rather allow a Portfolio to establish a rate of exchange for a future point in time. When entering into a contract for the purchase or sale of a security in a foreign currency, a Portfolio may enter into a foreign forward currency contract for the amount of the purchase or sale price to protect against variations, between the date the security is purchased or sold and the date on which payment is made or received, in the value of the foreign currency relative to the United States dollar or other foreign currency. S-2 Also, when the Adviser anticipates that a particular foreign currency may decline substantially relative to the United States dollar or other leading currencies, in order to reduce risk, a Portfolio may enter into a forward contract to sell, for a fixed amount, the amount of foreign currency approximating the value of its securities denominated in such foreign currency. With respect to any such forward foreign currency contract, it will not generally be possible to match precisely the amount covered by that contract and the value of the securities involved due to changes in the values of such securities resulting from market movements between the date the forward contract is entered into and the date it matures. In addition, while forward currency contracts may offer protection from losses resulting from declines in value of a particular foreign currency, they also limit potential gains which might result from increases in the value of such currency. A Portfolio will also incur costs in connection with forward foreign currency contracts and conversions of foreign currencies into United States dollars. The Portfolios may enter into forward foreign currency contracts. Investment company shares that are purchased by a Portfolio shall be limited to shares of money market open-end investment companies and the Adviser will waive its fee on that portion of the assets placed in such money market open-end investment companies. Obligations of Supranational Agencies may be purchased by the Portfolios. Currently the Portfolios intend to invest only in obligations issued or guaranteed by the Asian Development Bank, Inter-American Development Bank, International Bank for Reconstruction and Development (World Bank), African Development Bank, European Coal and Steel Community, European Economic Community, European Investment Bank and the Nordic Investment Bank. Repurchase Agreements in which the Portfolios may invest are agreements under which securities are acquired from a securities dealer or bank subject to resale on an agreed upon date and at an agreed upon price which includes principal and interest. The Portfolio bears a risk of loss in the event that the other party to a repurchase agreement defaults on its obligations and the Portfolio is delayed or prevented from exercising its rights to dispose of the collateral securities. The Adviser and Sub-Advisers (collectively, the "Advisers") enter into repurchase agreements only with financial institutions which they deem to present minimal risk of bankruptcy during the term of the agreement based on guidelines which are periodically reviewed by the Board of Trustees. These guidelines currently permit the Portfolios to enter into repurchase agreements only with approved primary securities dealers, as recognized by the Federal Reserve Bank of New York, which have minimum net capital of $100 million, or with a member bank of the Federal Reserve System. Repurchase agreements are considered to be loans collateralized by the underlying security. Repurchase agreements entered into by the Portfolios will provide that the underlying security at all times shall have a value at least equal to 102% of the price stated in the agreement. The underlying security will be marked to market daily. The Advisers monitor compliance with this requirement. Under all repurchase agreements entered into by a Portfolio, the Custodian or its agent must take possession of the underlying collateral. However, if the seller defaults, the Portfolio could realize a loss on the sale of the underlying security to the extent that the proceeds of sale are less than the resale price. In addition, even though the Bankruptcy Code provides protection for most repurchase agreements, if the seller should be involved in bankruptcy or insolvency proceedings, a Portfolio may incur delay and costs in selling the security and may suffer a loss of principal and interest if the Portfolio is treated as an unsecured creditor. United States Government Securities include obligations issued by agencies or instrumentalities of the United States Government including, among others, Export Import Bank of the United States, Farmers Home Administration, Federal Farm Credit System, Federal Housing Administration, Maritime Administration, Small Business Administration and The Tennessee Valley Authority. Obligations of instrumentalities of the United States Government include securities issued by, among others, Federal Home Loan Banks, Federal Home Loan Mortgage Corporation, Federal Intermediate Credit Banks, Federal Land Banks, Federal National Mortgage Association and the United States Postal Service. Some of these securities are supported by the full faith and credit of the United States Treasury (e.g., Government National Mortgage Association), others are S-3 supported by the right of the issuer to borrow from the Treasury (e.g., Federal Farm Credit Bank) and still others are supported only by the credit of the instrumentality (e.g., Federal National Mortgage Association). Guarantees of principal by agencies or instrumentalities of the United States Government may be a guarantee of payment at the maturity of the obligation so that in the event of a default prior to maturity there might not be a market and thus no means of realizing on the obligation prior to maturity. Guarantees as to the timely payment of principal and interest do not extend to the value or yield of these securities nor to the value of a Portfolio's shares. DESCRIPTION OF RATINGS The following descriptions are summaries of published ratings. Description of Commercial Paper Ratings Commercial paper rated A by S&P is regarded by S&P as having the greatest capacity for timely payment. Issues rated A are further refined by use of the numbers 1 +,1 and 2, to indicate the relative degree of safety. Issues rated A- 1+ are those with an "overwhelming degree" of credit protection. Those rated A-1 reflect a "very strong" degree of safety regarding timely payment. Commercial paper issues rated Prime-1 by Moody's are judged by Moody's to be of the "highest" quality on the basis of relative repayment capacity. The rating Fitch-1 (Highest Grade) is the highest commercial rating assigned by Fitch Investors Services, Inc. ("Fitch"). Paper rated Fitch-1 is regarded as having the strongest degree of assurance for timely payment. The rating Fitch-2 (Very Good Grade) is the second highest commercial paper rating assigned by Fitch which reflects an assurance of timely payment only slightly less in degree than the strongest issues. The rating Duff-1 is the highest commercial paper rating assigned by Duff and Phelps, Inc. ("Duff"). Paper rated Duff-1 is regarded as having very high certainty of timely payment with excellent liquidity factors which are supported by ample asset protection. Risk factors are minor. Paper rated Duff-2 is regarded as having good certainty of timely payment, good access to capital markets and sound liquidity factors and company fundamentals. Risk factors are small. The designation A1 by IBCA Limited ("IBCA") indicates that the obligation is supported by a very strong capacity for timely repayment. Those obligations rated A1+ are supported by the highest capacity for timely repayment are supported by a strong capacity for timely repayment, although such capacity may be susceptible to adverse changes in business, economic or financial conditions. The rating TBW-1 by Thomson BankWatch ("Thomson") indicates a very high likelihood that principal and interest will be paid on a timely basis. Description of Municipal Note Ratings Moody's highest rating for state and municipal and other short-term notes is MIG-1 and VMIG-1. Short-term municipal securities rated MIG-1 or VMIG-1 are of the best quality. They have strong protection form established cash flows of funds for their servicing or from established and broad-based access to the market for refinancing or both. Short-term municipal securities rated MIG-2 or VMIG-2 are of high quality. Margins of protection are ample although not so large as in the preceding group. An S&P note rating reflects the liquidity concerns and market access risks unique to notes. Notes due in 3 years or less will likely receive a note rating. Notes maturing beyond 3 years will most likely receive a long-term debt rating. The following criteria will be used in making that assessment: . Amortization schedule (the larger the final maturity relative to other maturities, the more likely it will be treated as a note). S-4 . Source of Payment (the more dependent the issue is on the market for its refinancing, the more likely it will be treated as a note). S&P note rating symbols are as follows: SP-1 Very strong or strong capacity to pay principal and interest. Those issues determined to possess overwhelming safety characteristics will be given a plus(+) designation. SP-2 Satisfactory capacity to pay principal and interest. Description of Corporate Bond Ratings Bonds rated AAA have the highest rating S&P assigns to a debt obligation. Such a rating indicates an extremely strong capacity to pay principal and interest. Bonds rated AA also qualify as high-quality debt obligations. Capacity to pay principal and interest is very strong, and in the majority of instances they differ from AAA issues only in small degree. Debt rated A has a strong capacity to pay interest and repay principal although it is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than debt in higher rated categories. Debt rated BBB is regarded as having an adequate capacity to pay interest and repay principal. Whereas it normally exhibits adequate protection parameters, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity to pay interest and repay principal for debt in this category than in higher rated categories. Debt rated BB and B is regarded as having predominantly speculative characteristics with respect to capacity to pay interest and repay principal. BB indicates the least degree of speculation and C the highest degree of speculation. While such debt will likely have some quality and protective characteristics, these are outweighed by large uncertainties or major risk exposures to adverse conditions. Debt rated BB has less near-term vulnerability to default than other speculative grade debt. However, it faces major ongoing uncertainties or exposure to adverse business, financial, or economic conditions that could lead to inadequate capacity to meet timely interest and principal payments. The BB rating category is also used for debt subordinated to senior debt that is assigned an actual or implied BBB- rating. Debt rate B has greater vulnerability to default but presently has the capacity to meet interest payments and principal repayments. Adverse business, financial, or economic conditions would likely impair capacity or willingness to pay interest and repay principal. The B rating category also is used for debt subordinated to senior debt that is assigned an actual or implied BB or BB- rating. Bonds which are rated Aaa by Moody's are judged to be of the best quality. They carry the smallest degree of investment risk and are generally referred to as "gilt edge." Interest payments are protected by a large, or an exceptionally stable, margin and principal is secure. While the various protective elements are likely to change, such changes as can be visualized are most unlikely to impair the fundamentally strong position of such issues. Bonds rated Aa by Moody's are judged by Moody's to be of high quality by all standards. Together with bonds rated Aaa, they comprise what are generally known as high-grade bonds. They are rated lower than the best bonds because margins of protection may not be as large as in Aaa securities or fluctuation of protective elements may be of greater amplitude or there may be other elements present which make the long-term risks appear somewhat larger than in Aaa securities. Bonds which are rated A possess many favorable investment attributes and are to be considered as upper-medium grade obligations. Factors giving security to principal and interest are considered adequate, but elements may be present which suggest a susceptibility to impairment sometime in the future. Bonds which are rated Baa are considered as medium-grade obligations (i.e., they are neither highly protected nor poorly secured). Interest payments and principal security appear adequate for the present but certain protective elements may be lacking or may be characteristically unreliable over any great length of time. Such bonds lack outstanding investment characteristics and in fact have speculative characteristics as well. Bonds which are rated Ba are judged to have speculative elements; their future cannot be considered as well- assured. Often the protection of interest and principal payments may be very moderate and thereby not well safeguarded during both good and bad times over the future. Uncertainty of position characterizes bonds in this class. S-5 Bonds which are rated B generally lack characteristics of the desirable investment. Assurance of interest and principal payments or of maintenance of other terms of the contract over any long period of time may be small. Moody's bond ratings, where specified, are applied to senior bank obligations and insurance company senior policyholder and claims obligations with an original maturity in excess of one year. Obligations relying upon support mechanisms such as letters-of-credit and bonds of indemnity are excluded unless explicitly rated. Obligations of a branch of a bank are considered to be domiciled in the country in which the branch is located. Unless noted as an exception, Moody's rating on a bank's ability to repay senior obligations extends only to branches located in countries which carry a Moody's sovereign rating. Such branch obligations are rated at the lower of the bank's rating or Moody's sovereign rating for the bank deposits for the country in which the branch is located. When the currency in which an obligation is denominated is not the same as the currency of the country in which the obligation is domiciled, Moody's ratings do not incorporate an opinion as to whether payment of the obligation will be affected by the actions of the government controlling the currency of denomination. In addition, risk associated with bilateral conflicts between an investor's home country and either the issuer's home country or the country where an issuer branch is located are not incorporated into Moody's ratings. Moody's makes no representation that rated bank obligations or insurance company obligations are exempt from registration under the U.S. Securities Act of 1933 or issued in conformity with any other applicable law or regulation. Nor does Moody's represent that any specific bank or insurance company obligation is legally enforceable or is a valid senior obligation of a rated issuer. Moody's ratings are opinions, not recommendations to buy or sell, and their accuracy is not guaranteed. A rating should be weighed solely as one factor in an investment decision and you should make your own study and evaluation of any issuer whose securities or debt obligations you consider buying or selling. Bonds rated AAA by Fitch are judged by Fitch to be strictly high grade, broadly marketable, suitable for investment by trustees and fiduciary institutions liable to but slight market fluctuation other than through changes in the money rate. The prime feature of an AAA bond is a showing of earnings several times or many times interest requirements, with such stability of applicable earnings that safety is beyond reasonable question whatever changes occur in conditions. Bonds rated AA by Fitch are judged by Fitch to be of safety virtually beyond question and are readily salable, whose merits are not unlike those of the AAA class, but whose margin of safety is less strikingly broad. The issue may be the obligation of a small company, strongly secured but influenced as to rating by the lesser financial power of the enterprise and more local type market. Bonds rated A are considered to be investment grade and of high credit quality. The obligor's ability to pay interest and repay principal is considered to be strong, but may be more vulnerable to adverse changes in economic conditions and circumstances than bonds with higher ratings. Bonds rated BBB are considered to be investment grade and of satisfactory credit quality. The obligor's ability to pay interest and repay principal is considered to be adequate. Adverse changes in economic conditions and circumstances, however, are more likely to have adverse impact on these bonds, and therefore impair timely payment. The likelihood that the ratings of these bonds will fall below investment grade is higher than for bonds with higher ratings. Bonds rated BB are considered speculative. The obligor's ability to pay interest and repay principal may be affected over time by adverse economic changes. However, business and financial alternatives can be identified which could assist the obligor in satisfying its debt service requirements. Bonds rated B are considered highly speculative. While bonds in this class are currently meeting debt service S-6 requirements, the probability of continued timely payment of principal and interest reflects the obligor's limited margin of safety and the need for reasonable business and economic activity throughout the life of the issue. Bonds rated Duff-1 are judged by Duff to be of the highest credit qualify with negligible risk factors; only slightly more than U.S. Treasury debt. Bonds rated Duff-2, 3 and 4 are judged by Duff to be of high credit quality with strong protection factors. Risk is modest but may vary slightly from time to time because of economic conditions. Bonds rated BBB+, BBB, or BBB- are considered below average protection factors but still considered sufficient for prudent investment. Considerable BBB variability in risk during economic cycles. Bonds rated BB+, BB or BB- are considered below investment grade but deemed likely to meet obligations when due. Present or prospective financial protection factors fluctuate according to industry conditions or company fortunes. Overall quality may move up or down frequently within this category. Bonds rated B+, B or B- are considered below investment grade and possessing risk that obligations will not be met when due. Financial protection factors will fluctuate widely according to economic cycles, industry conditions and/or company fortunes. Potential exists for frequent changes in the rating within this category or into a higher or lower rating grade. Obligations rated AAA by IBCA have the lowest expectation of investment risk. Capacity for timely repayment of principal and interest is substantial, such that adverse changes in business, economic or financial conditions are unlikely to increase investment risk significantly. Obligations for which there is a very low expectation of investment risk are rated AA by IBCA. Capacity for timely repayment of principal and interest is substantial. Adverse changes in business, economic or financial conditions may increase investment risk albeit not very significantly. Bonds rated A are obligations for which there is a low expectation of investment risk. Capacity for timely repayment of principal and interest is strong, although adverse changes in business, economic or financial conditions may lead to increased investment risk. Bonds rated BBB are obligations for which there is currently a low expectation of investment risk. Capacity for timely repayment of principal and interest is adequate, although adverse changes in business, economic or financial conditions are more likely to lead to increased investment risk than for obligations in other categories. Bonds rated BB are obligations for which there is a possibility of investment risk developing. Capacity for timely repayment of principal and interest exists, but is susceptible over time to adverse changes in business, economic or financial conditions. Bonds rated B are obligations for which investment risk exists. Timely repayment of principal and interest is not sufficiently protected against adverse changes in business, economic or financial conditions. Bonds rated AAA by Thomson BankWatch indicate that the ability to repay principal and interest on a timely basis is very high. Bonds rated AA indicate a superior ability to repay principal and interest on a timely basis, with limited incremental risk compared to issues rated in the highest category. Bonds rated A indicate the ability to repay principal and interest is strong. Issues rated A could be more vulnerable to adverse developments (both internal and external) than obligations with higher ratings. Bonds rated BBB indicate an acceptable capacity to repay principal and interest. Issues rated "BBB" are, however, more vulnerable to adverse developments (both internal and external) than obligations with higher ratings. While not investment grade, the BB rating suggests that the likelihood of default is considerably less than for lower-rated issues. However, there are significant uncertainties that could affect the ability to adequately service debt obligations. Issues rated B show a higher degree of uncertainty and therefore greater likelihood of default than higher-rated issues. Adverse developments could well negatively affect the payment of interest and principal on a timely basis. S-7 INVESTMENT LIMITATIONS A Portfolio may not: 1. Pledge, mortgage or hypothecate assets except to secure temporary borrowings as described in the Prospectuses in aggregate amounts not to exceed 10% of the net assets of such Portfolio taken at current value at the time of the incurrence of such loan. 2. Make loans, except that the Portfolio may (i) purchase or hold debt securities in accordance with its investment objectives and policies; (ii) engage in securities lending as described in this Prospectus and in the Statement of Additional Information; and (iii) enter into repurchase agreements, provided that repurchase agreements and time deposits maturing in more than seven days, and other illiquid securities, including securities which are not readily marketable or are restricted, are not to exceed, in the aggregate, 10% of the total assets of the Core International Equity, European Equity, Pacific Basin Equity, or International Fixed Income Portfolio. 3. Invest in companies for the purpose of exercising control. 4. Acquire more than 10% of the voting securities of any one issuer. 5. Purchase or sell real estate, real estate limited partnership interests, commodities or commodities contracts. However, subject to its permitted investments, the Portfolio may purchase obligations issued by companies which invest in real estate, commodities or commodities contracts. 6. Make short sales of securities, maintain a short position or purchase securities on margin, except as described with respect to the International Fixed Income Portfolio in its Prospectus and except that the Trust may obtain short-term credits as necessary for the clearance of security transactions. 7. Act as an underwriter of securities of other issuers except as it may be deemed an underwriter in selling a portfolio security. 8. Purchase securities of other investment companies except as permitted by the 1940 Act and the rules and regulations thereunder and may only purchase securities of money market funds. Under these rules and regulations, the Portfolio is prohibited from acquiring the securities of other investment companies if, as a result of such acquisition, the Portfolio owns more then 3% of the total voting stock of the company; securities issued by any one investment company represent more than 5% of the total Portfolio assets; or securities (other than treasury stock) issued by all investment companies represent more than 10% of the total assets of the Portfolio. A Portfolio's purchase of such investment company securities results in the bearing of expenses such that shareholders would indirectly bear a proportionate share of the operating expenses of such investment companies, including advisory feels. This investment restriction does not apply to the Emerging Markets Equity Portfolio. 9. Issue senior securities (as defined in the 1940 Act) except in connection with permitted borrowing as described in the Prospectuses and this Statement of Additional Information or as permitted by rule, regulation or order of the SEC. 10. Purchase or retain securities of an issuer if, to the knowledge of the Trust, an officer, trustee, partner or director of the Trust or any investment adviser of the Trust owns beneficially more that 1/2 of 1% of the shares or securities of such issuer and all such officers, trustees, partners and directors owning more than 1/2 of 1% of such shares or securities together own more than 5% of such shares or securities. S-8 11. Purchase securities of any company which has (with predecessors) a record of less than three years continuing operations if, as a result, more than 5% of the total assets (taken at current value) would be invested in such securities. 12. Invest in interests in oil, gas or other mineral exploration or development programs and oil, gas or mineral leases. 13. Purchase restricted securities (securities which must be registered under the Securities Act of 1933, as amended (the "1933 Act"), before they may be offered or sold to the public) or other illiquid securities except as described in the Prospectuses and this Statement of Additional Information. The foregoing percentages will apply at the time of the purchase of a security and shall not be violated unless an excess or deficiency occurs, immediately after or as a result of a purchase of such security. These investment limitations and the investment limitations in the Prospectuses are fundamental policies of the Trust and may not be changed without shareholder approval. NON-FUNDAMENTAL POLICIES Each of the Core International Equity, European Equity, Pacific Basin Equity and Emerging Markets Equity Portfolios may not invest more than 5% of its net assets in warrants; provided that of this 5% no more than 2% will be in warrants that are not listed on the New York Stock Exchange or the American Stock Exchange. The Emerging Markets Equity Portfolio will not invest in the securities of other investment companies except by purchase in the open market where no commission or profit to a sponsor or dealer results from the purchase other than the customary broker's commission, or except when the purchase is part of a plan of merger, consolidation, reorganization or acquisition. The Emerging Markets Equity Portfolio's investments in illiquid securities, including securities which are not readily marketable or are restricted, may not exceed 10% of its total assets. THE MANAGER AND SHAREHOLDER SERVICING AGENT S-9 The Management Agreement provides that the Manager shall not be liable for any error of judgment or mistake of law or for any loss suffered by the Trust in connection with the matters to which the Management Agreement relates, except a loss resulting from willful misfeasance, bad faith or gross negligence on the part of the Manager in the performance of its duties or from reckless disregard of its duties and obligations thereunder. The continuance of the Management Agreement must be specifically approved at least annually (i) by the vote of a majority of the Trustees or by the vote of a majority of the outstanding voting securities of the Portfolios, and (ii) by the vote of a majority of the Trustees of the Trust who are not parties to the Management Agreement or an "interested person" (as that term is defined in the 1940 Act) of any party thereto, cast in person at a meeting called for the purpose of voting on such approval. The Management Agreement is terminable at any time without penalty by the Trustees of the Trust, by a vote of a majority of the outstanding shares of the Portfolios or by the Manager on not less than 30 days' nor more than 60 days written notice. This Agreement shall not be assignable by either party without the written consent of the other party. The Manager, a wholly-owned subsidiary of SEI Corporation ("SEI"), was organized as a Delaware corporation in 1969 and has its principal business offices at 680 East Swedesford Road, Wayne, PA 19087. Alfred P. West, Jr., Henry H. Greer, Carmen V. Romeo, and Robert A. Nesher constitute the Board of Directors of the Manager. Mr. West serves as the Chairman of the Board of Directors and Chief Executive Officer of SEI. Mr. Greer serves as President and Chief Operating Officer of the Manager and SEI. SEI and its subsidiaries are leading providers of funds evaluation services, trust accounting systems, and brokerage and information services to financial institutions, institutional investors and money managers. The Manager also serves as manager to the following other institutional mutual funds: SEI Daily Income Trust; SEI Liquid Asset Trust; SEI Tax Exempt Trust; SEI Index Funds; SEI Institutional Managed Trust; The Pillar Funds; Stepstone Funds; The Compass Capital Group of Funds; FFB Lexicon Funds; The Advisors' Inner Circle Fund; CUFUND; STI Classic Funds; CoreFunds, Inc.; First American Funds, Inc.; First American Investment Funds, Inc.; The Arbor Fund; 1784 Funds; Marquis/SM/ Funds; Morgan Grenfell Investment Trust; The PBHG Funds, Inc.; First American Mutual Funds; Nationar Funds, Inc.; Tax Exempt Housing Reserve Fund; Inventor Funds, Inc.; Insurance Investment Products Trust; and Rembrandt Funds. If operating expenses of any Portfolio exceed limitations established by certain states, the Manager will pay such excess. The Manager will not be required to bear expenses of any Portfolio to an extent which would result in the Portfolio's inability to qualify as a regulated investment company under provisions of the Internal Revenue Code of 1986, as amended (the "Code"). The term "expenses" is defined in such laws or regulations, and generally excludes brokerage commissions, distribution expenses, taxes, interest and extraordinary expenses. For the fiscal years ended February 29, 1993, February 28, 1994 and February 28, 1995, the Portfolios paid fees to the Manager as follows:
================================================================================================================= Fee Waivers and Reimbursements Fees Paid(Reimbursed) (000) (000) ------------------------------------------------------------------------ 1993 1994 1995 1993 1994 1995 - ----------------------------------------------------------------------------------------------------------------- Core International Equity Portfolio $225 $1,586 $2,652 $571 $471 $77 - ----------------------------------------------------------------------------------------------------------------- European Equity Portfolio * * $107 * * $57 - ----------------------------------------------------------------------------------------------------------------- Pacific Basin Equity Portfolio * * $83 * * $76 - ----------------------------------------------------------------------------------------------------------------- Emerging Markets Equity Portfolio * * $(9) * * $11 - ----------------------------------------------------------------------------------------------------------------- International Fixed Income Portfolio * $3 $122 * $40 $84 =================================================================================================================
*Not in operation during such period. S-10 THE ADVISER AND SUB-ADVISERS Each Advisory and Sub-Advisory Agreement provides that each Adviser and each Sub-Adviser shall not be protected against any liability to the Trust or its shareholders by reason of willful misfeasance, bad faith or gross negligence on its part in the performance of its duties or from reckless disregard of its obligations or duties thereunder. The continuance of each Advisory and Sub-Advisory Agreement must be specifically approved at least annually (i) by the vote of a majority of the outstanding shares of that Portfolio or by the Trustees, and (ii) by the vote of a majority of the Trustees who are not parties to such Advisory or Sub-Advisory Agreement or "interested persons" of any party thereto, cast in person at a meeting called for the purpose of voting on such approval. Each Advisory and Sub-Advisory Agreement will terminate automatically in the event of its assignment, and is terminable at any time without penalty by the Trustees of the Trust or, with respect to a Portfolio, by a majority of the outstanding shares of that Portfolio, on not less than 30 days nor more than 60 days written notice to the Adviser or Sub-Adviser, or by the Adviser or Sub-Adviser on 90 days written notice to the Trust. For the fiscal years ended February 29, 1993, February 28, 1994, and February 28, 1995, the Portfolios paid to the Advisers the following:
================================================================================================================= Fees Paid (000) Fee Waivers (000) ------------------------------------------------------------------------ 1993 1994 1995 1993 1994 1995 - ----------------------------------------------------------------------------------------------------------------- Core International Equity Portfolio $ 431 $1,063 $1,516 $0 $0 $0 - ----------------------------------------------------------------------------------------------------------------- European Equity Portfolio * * $67 * * $0 - ----------------------------------------------------------------------------------------------------------------- Pacific Basin Equity Portfolio * * $80 * * $0 - ----------------------------------------------------------------------------------------------------------------- Emerging Markets Equity Portfolio * * $4 * * $0 - ----------------------------------------------------------------------------------------------------------------- International Fixed Income Portfolio * $17 $86 * $4 $17 =================================================================================================================
*Not in operation during such period. DISTRIBUTION The Trust has adopted a Distribution Agreement for the Portfolios. The Trust has also adopted a Distribution Plan ("Institutional Class Plan") for the Class A shares of the Core International Equity, European Equity, Pacific Basin Equity, Emerging Markets Equity and International Fixed Income Portfolios and a Distribution Plan ("Class D Plan") for the shares of the Class D shares of the Core International Equity, European Equity, Pacific Basin Equity, Emerging Markets Equity and International Fixed Income Portfolios (the foregoing plans collectively, the "Distribution Plans") in accordance with the provisions of Rule 12b-1 under the 1940 Act, which regulates circumstances under which an investment company may directly or indirectly bear expenses relating to the distribution of its shares. In this connection, the Board of Trustees has determined that the Plans and Distribution Agreement are in the best interests of the shareholders. Continuance of the Plans must be approved annually by a majority of the Trustees of the Trust and by a majority of the Qualified Trustees, as defined in the Distribution Plans. The Plans require that quarterly written reports of amounts spent under the Plans and the purposes of such expenditures be furnished and reviewed by the Trustees. The Plans may not be amended to increase materially the amount which may be spent thereunder without S-11 approval by a majority of the outstanding shares of the Portfolio or class affected. All material amendments of the Plans will require approval by a majority of the Trustees of the Trust and of the Qualified Trustees. The Class A Plan adopted by the shareholders of the Core International Equity Portfolio, and adopted by the sole shareholder of the International Fixed Income Portfolio, provides that the Trust will pay a fee of up to .30% of the average daily net assets of the Core International Equity Portfolio, European Equity, Pacific Basin Equity, Emerging Markets Equity and International Fixed Income Portfolios Class A shares that the Distributor can use to compensate broker- dealers and service providers, including SEI Financial Services Company and its affiliates, which provide distribution-related services to shareholders of the Core International Equity Portfolio, European Equity, Pacific Basin Equity, Emerging Markets Equity and International Fixed Income Portfolios Class A shares or their customers who beneficially own shares of such series. The Class A Plan provides that if there are more than one series of Trust securities having an institutional class, expenses incurred pursuant to the Class A Plan will be allocated among such several series of the Trust on the basis of their relative net asset values, unless otherwise determined by a majority of the Qualified Trustees. The Class D Plan provides that the Trust will pay a fee of up to .30% of the average daily net assets of a Portfolio's Class D shares that the Distributor can use to compensate broker-dealers and service providers, including SEI Financial Services Company and its affiliates, which provide distribution- related services to Core International Equity, European Equity, Pacific Basin Equity, Emerging Markets Equity and International Fixed Income Portfolios Class D shares shareholders or their customers who beneficially own Class D shares. The Class D Plan provides that, if there are more than one series of Trust securities having a Class D class, expenses incurred pursuant to the Class D Plan will be allocated among such several series of the Trust on the basis of their relative net asset values, unless otherwise determined by a majority of the Qualified Trustees. The Class D Plan also provides for additional payments to the Distributor of up to .30% of the Class D shares' average daily net assets on an annualized basis. See "Distribution" in the Class D Prospectus. The distribution related services that may be provided under the Plans include establishing and maintaining customer accounts and records; aggregating and processing purchase and redemption requests from customers; placing net purchase and redemption orders with the Distributor; automatically investing customer account cash balances; providing periodic statements to customers; arranging for wires; answering customer inquiries concerning their investments; assisting customers in changing dividend options, account designations, and addresses; performing sub-accounting functions; processing dividend payments from the Trust on behalf of customers; and forwarding shareholder communications from the Trust (such as proxies, shareholder reports, dividend distribution and tax notices) to these customers with respect to investments in the Trust. Certain state securities laws may require those financial institutions providing such distribution services to register as dealers pursuant to state law. Except to the extent that the Manager and Adviser benefitted through increased fees from an increase in the net assets of the Trust which may have resulted in part from the expenditures, no interested person of the Trust nor any Trustee of the Trust who is not an interested person of the Trust had a direct or indirect financial interest in the operation of the Distribution Plans or related agreements. Although banking laws and regulations prohibit banks from distributing shares of open-end investment companies such as the Trust, according to an opinion issued to the staff of the Securities and Exchange Commission ("SEC") by the Office of the Comptroller of the Currency, financial institutions are not prohibited from acting in other capacities for investment companies, such as providing shareholder services. Should future legislative, judicial or administrative action prohibit or restrict the activities of financial institutions in connection with providing shareholder services, the Trust may be required to alter materially or discontinue its arrangements with such financial institutions. For the fiscal year ended February 28, 1995, the Portfolios incurred the following distribution expenses: S-12
Total Amount Dist. Paid to 3rd Expenses Parties by Total Dist. as SFS for Sales Printing Other Portfolio Class Expenses a % of net Distributor Expenses Costs Costs* assets Related Services - -------------------------------------------------------------------------------------------------------------------------- Core International Equity A $562,142 .12% $0 $562,142 $0 $0 Portfolio --------------------------------------------------------------------------------------- D $ 62 .37% $0 $ 62 $0 $0 - -------------------------------------------------------------------------------------------------------------------------- European Equity Portfolio A $ 21,539 .10% $0 $ 21,539 $0 $0 - -------------------------------------------------------------------------------------------------------------------------- Pacific Basin Equity Portfolio A $ 21,262 .11% $0 $ 21,262 $0 $0 - -------------------------------------------------------------------------------------------------------------------------- Emerging Markets Equity Portfolio A $ 385 .11% $0 $ 385 $0 $0 - -------------------------------------------------------------------------------------------------------------------------- International Fixed Income Portfolio A $ 39,602 .12% $0 $ 39,602 $0 $0 ========================================================================================================================== *Costs of complying with securities laws pertaining to the distribution of shares.
TRUSTEES AND OFFICERS OF THE TRUST The Trustees and executive officers of the Trust and their principal occupations for the last five years are set forth below. Each may have held other positions with the named companies during that period. Unless otherwise noted, the business address of each Trustee and executive officer is SEI Financial Management Corporation, 680 East Swedesford Road, Wayne, PA 19087. Certain trustees and officers of the Trust also serve as trustees and officers of some or all of the following: SEI Daily Income Trust; SEI Liquid Asset Trust; SEI Tax Exempt Trust; SEI Index Funds; SEI Institutional Managed Trust; The Pillar Funds; Stepstone Funds; The Compass Capital Group of Funds; FFB Lexicon Funds; The Advisors' Inner Circle Fund; CUFUND; STI Classic Funds; CoreFunds, Inc.; First American Funds, Inc.; First American Investment Funds, Inc.; The Arbor Fund; 1784 Funds; Marquis/SM/ Funds; Morgan Grenfell Investment Trust; The PBHG Funds, Inc.; First American Mutual Funds; Nationar Funds, Inc.; Tax Exempt Housing Reserve Fund; Inventor Funds, Inc.; Insurance Investment Products Trust; and Rembrandt Funds, open-end management investment companies which are managed by SEI Financial Management Corporation and distributed by SEI Financial Services Company ("SFS"). ROBERT A. NESHER - Chairman of the Board of Trustees* - Retired since 1994. Director, Executive Vice President of SEI Corporation - 1986-1994. Director and Executive Vice President of the Manager and Executive Vice President of the Distributor since September 1981. RICHARD F. BLANCHARD - Trustee** - P.O. Box 76, Canfield Road, Convent Station, NJ 07961. Private Investor. Director of AEA Investors Inc. (acquisition and investment firm) June 1981-86, Director of Baker Hughes Corp. (oil service company) 1976-88. Director of Imperial Clevite Industries (transportation equipment company) 1981-87. Executive Vice President of American Express Company (financial services company), responsible for the investment function, before June 1981. WILLIAM M. DORAN - Trustee* - 2000 One Logan Square, Philadelphia, PA 19103. Partner, Morgan, Lewis & Bockius, counsel to the Trust, Manager and Distributor, Director and Secretary of SEI and Secretary of the Manager and Distributor. S-13 F. WENDELL GOOCH - Trustee** - P.O. Box 190, Paoli, IN 47454. President, Orange County Publishing Co., Inc., since October 1981. Publisher of the Paoli News and the Paoli Republican and Editor of the Paoli Republican since January 1981, President, H & W Distribution, Inc. since July 1984. Trustee of STI Classified Funds. FRANK E. MORRIS - Trustee - 105 Walpole Street, Dover, MA 02030. Retired since 1990. Peter Drucker Professor of Management, Boston College, 1989-1990. President, Federal Reserve Bank of Boston, 1968-1988. Trustee of The Arbor Fund, Marquis Funds, Advisors' Inner Circle Fund, Advisors' Inner Circle Fund II, Inc. and FFB Lexicon Funds. JAMES M. STOREY - Trustee** - Ten Post Office Square South, Boston, Massachusetts 02109. Retired since 1993. Formerly Partner, Dechert, Price & Rhoads (law firm). DAVID G. LEE - President, Chief Executive Officer - Senior Vice President of the Manager and Distributor since 1993. Vice President of the Manager and Distributor, 1991-1993. President, GW Sierra Trust Funds prior to 1991. CARMEN V. ROMEO - Treasurer, Assistant Secretary - Director, Executive Vice President, Chief Financial Officer and Treasurer of SEI since 1977. Director and Treasurer of the Manager and Distributor since 1981. SANDRA K. ORLOW - Vice President, Assistant Secretary - Vice President and Assistant Secretary of the Manager and Distributor since 1988. ROBERT B. CARROLL - Vice President, Assistant Secretary - Vice President, Assistant Secretary of SEI Corporation, the Manager and Distributor since 1994. United States Securities and Exchange Commission, Division of Investment Management, 1990-1994. Associate, McGuire, Woods, Battle & Boothe (law firm) prior to 1990. KATHRYN L. STANTON - Vice President, Assistant Secretary - Vice President, Assistant Secretary of SEI Corporation, the Manager and Distributor since 1994; Associate, Morgan, Lewis & Bockius (law firm), 1989 to 1994. KEVIN P. ROBINS - Vice President, Assistant Secretary - Senior Vice President and General Counsel of SEI Corporation, the Manager and Distributor since 1994. Vice President of SEI Corporation, the Manager and Distributor 1992-1994. Associate, Morgan, Lewis & Bockius (law firm) prior to 1992. JEFFREY A. COHEN - Controller, Assistant Secretary - SEI Corporation, 1991 to present. Senior Accountant, Price Waterhouse, 1988 to 1991. RICHARD W. GRANT - Secretary - 2000 One Logan Square, Philadelphia, PA 19103, Partner, Morgan, Lewis & Bockius, counsel to the Trust, Manager and Distributor. JOHN H. GRADY, JR. - Assistant Secretary - 1800 M Street, N.W., Washington, D.C., Associate, Morgan, Lewis & Bockius, counsel to the Trust, Manager and Distributor. ==================================================================== *Messrs. Nesher and Doran are Trustees who may be deemed to be "interested persons" of the Trust as the term is defined in the 1940 Act. **Messrs. Blanchard, Gooch and Storey serve as members of the Audit Committee of the Trust. The Trustees and officers of the Trust own less than 1% of the outstanding shares of the Trust. The Trust pays the fees for disinterested Trustees. Compensation of officers and affiliated Trustees of the Trust is paid by the Manager. For the fiscal year ended February 28, 1995, the Trust paid approximately $20,725 in fees to the Trustees who are not "interested persons" as defined in the 1940 Act. S-14
Compensation Table =================================================================================================================================== Name of Person, Aggregate Pension or Retirement Estimated Annual Total Compensation Position Compensation From Benefits Accrues as Part Benefits Upon From Registrant and Registrant for the FYE of Fund Expenses Retirement Fund Complex Paid to February 28, 1995 Directors for the FYE February 28, 1995 - ----------------------------------------------------------------------------------------------------------------------------------- Edward Binshadler, $4,145 $0 $0 $56,250 Trustee** - ----------------------------------------------------------------------------------------------------------------------------------- Richard Blanchard, Trustee $4,145 $0 $0 $75,000 - ----------------------------------------------------------------------------------------------------------------------------------- F. Wendell Gooch, Trustee $4,145 $0 $0 $75,000 - ----------------------------------------------------------------------------------------------------------------------------------- Frank Morris, Trustee $4,145 $0 $0 $75,000 - ----------------------------------------------------------------------------------------------------------------------------------- James Storey, Trustee $4,145 $0 $0 $75,000 - ----------------------------------------------------------------------------------------------------------------------------------- Robert A. Nesher, Chairman of the Board of Trustees* $0 $0 $0 $0 - ----------------------------------------------------------------------------------------------------------------------------------- William M. Doran, Trustee* $0 $0 $0 $0 ===================================================================================================================================
* A Director who is an "interested person," as defined by the 1940 Act. ** As of December 7, 1994 Edward Binshadler no longer serves as a Trustee. PERFORMANCE From time to time, the Trust may advertise yield and/or total return for one or more of the Portfolios. These figures will be based on historical earnings and are not intended to indicate future performance. The total return of a Portfolio refers to the average compounded rate of return to a hypothetical investment for designated time periods (including, but not limited to, the period from which the Portfolio commenced operations through the specified date), assuming that the entire investment is redeemed at the end of each period. In particular, total return will be calculated according to the following formula: P(1 + T)n = ERV, where P = a hypothetical initial payment of $1,000; T = average annual total return; n = number of years; and ERV = ending redeemable value of a hypothetical $1,000 payment made at the beginning of the designated time period as of the end of such period. Based on the foregoing, the average annual total return for the Portfolios from inception through February 28, 1995 and for the one, five and ten year periods ended February 28, 1995 were as follows:
Portfolio Class Average Annual Total Return ------------------------------------- One Five Ten Since Year Year Year Inception - ---------------------------------------------------------------------------- Core International Equity A (7.67)% 2.99% * 2.13% ------------------------------------------- Portfolio D (7.95)% 2.93 * 2.08 - ---------------------------------------------------------------------------- European Equity Portfolio A * * * (0.48)% ============================================================================
S-15
Portfolio Class Average Annual Total Return ------------------------------------- One Five Ten Since Year Year Year Inception --------------------------------------------- D * * * * - ---------------------------------------------------------------------------- Pacific Basin Equity A * * * (15.00)% Portfolio --------------------------------------------- D * * * * - ---------------------------------------------------------------------------- Emerging Markets Equity A * * * * Portfolio --------------------------------------------- D * * * * - ---------------------------------------------------------------------------- International Fixed Income A 8.43% * * 7.81% Portfolio --------------------------------------------- D * * * * ============================================================================ *Not in operation during such period
From time to time, the Trust may advertise the yield of the International Fixed Income Portfolio. The yield of the Portfolio refers to the annualized income generated by an investment in the Portfolio over a specified 30-day period. The yield is calculated by assuming that the income generated by the investment during that period is generated for each like period over one year and is shown as a percentage of the investment. In particular, yield will be calculated according to the following formula: Yield = 2([(a-b)/cd + 1]/6/ - 1) where a = dividends and interest earning during the period; b = expenses accrued for the period (net of reimbursement); c = the current daily number of shares outstanding during the period that were entitled to receive dividends; and d = the maximum offering price per share on the last day of the period. Actual yields will depend on such variables as asset quality, average asset maturity, the type of instruments a Portfolio invests in, changes in interest rates on money market instruments, changes in the expenses of a Portfolio and other factors. Yields are one basis upon which investors may compare a Portfolio with other mutual funds; however, yields of other mutual funds and other investment vehicles may not be comparable because of the factors set forth above and differences in the methods used in valuing portfolio instruments. For the 30-day period ended February 28, 1995, the yield for the International Fixed Income Portfolio was 5.59%. The Portfolios may, from time to time, compare their performance to other mutual funds tracked by mutual fund rating services, to broad groups of comparable mutual funds or to unmanaged indices which may assume investment of dividends but generally do not reflect deductions for administrative and management costs. PURCHASE AND REDEMPTION OF SHARES The Trust reserves the right to suspend the right of redemption and/or to postpone the date of payment upon redemption for any period during which trading on the New York Stock Exchange is restricted, or during the existence of an emergency (as determined by the SEC by rule or regulation) as a result of which disposal or evaluation of the S-16 portfolio securities is not reasonably practicable, or for such other periods as the SEC may by order permit. The Trust also reserves the right to suspend sales of shares of the Portfolios for any period during which the New York Stock Exchange, the Manager, the Advisers, the Distributor and/or the Custodians are not open for business. It is currently the Trust's policy to pay for all redemptions in cash. The Trust retains the right, however, to alter this policy to provide for redemptions in whole or in part by a distribution in kind of securities held by a Portfolio in lieu of cash. Shareholders may incur brokerage charges on the sale of redemptions. However, a shareholder will at all times be entitled to aggregate cash redemptions from a Portfolio of the Trust during any 90-day period of up to the lesser of $250,000 or 1% of the Trust's net assets in cash. A gain or loss for federal income tax purposes would be realized by a shareholder subject to taxation upon an in-kind redemption depending upon the shareholder's basis in the shares of the Portfolio redeemed. Portfolio securities may be traded on foreign markets on days other than Business Days or the net asset value of a Portfolio may be computed on days when such foreign markets are closed. In addition, foreign markets may close at times other than 4:00 p.m. Eastern time. As a consequence, the net asset value of a share of a Portfolio may not reflect all events that may affect the value of the Portfolio's foreign securities unless the Adviser determines that such events materially affect net asset value in which case net asset value will be determined by consideration of other factors. Reductions in Sales Charges In calculating the sales charge rates applicable to current purchases of Class D shares, members of the following affinity groups and clients of the following broker-dealers, each of which has entered into an agreement with the Distributor, are entitled to the following percentage-based discounts from the otherwise applicable sales charge:
Name of Percentage Date Offer Date Offer Group Discount Starts Terminates - -------- ---------- ---------- ---------- Countrywide 100% 07/27/94 09/19/94 Funding Corp. 50% 09/23/94 11/22/94 BHC Securities, Inc. 10% 12/29/94 N/A First Security Investor 10% 12/29/94 N/A Services, Inc.
Those members or clients who take advantage of a percentage-based reduction in the sales charge during the offering period noted above may continue to purchase shares at the reduced sales charge rate after the offering period relating to each such purchaser's affinity group or broker-dealer relationship has terminated. Please contact the Distributor at 1-800-437-6016 for more information. SHAREHOLDER SERVICES (Class D shares) The following is a description of plans and privileges by which the sale charges imposed on the Class D shares of the Core International Equity, European Equity, Pacific Basin Equity,Emerging Markets Equity and International Fixed Income Portfolios may be reduced. S-17 Right of Accumulation: A shareholder qualifies for cumulative quantity discounts when his or her new investment, together with the current offering price value of all holdings of that shareholder in certain eligible portfolios, reaches a discount level. See "Purchase and Redemption of Shares" in the Prospectus for the sales charge on quantity purchases. Letter of Intent: The reduced sales charges are also applicable to the aggregate amount of purchases made by a purchaser within a 13-month period pursuant to a written Letter of Intent provided to the Distributor that (i) does not legally bind the signer to purchase any set number of shares and (ii) provides for the holding in escrow by the Administrator of 5% of the amount purchased until such purchase is completed within the 13-month period. A Letter of Intent may be dated to include shares purchased up to 90 days prior to the date the Letter is signed. The 13-month period begins on the date of the earliest purchase. If the intended investment is not completed, the Administrator will surrender an appropriate number of the escrowed shares for redemption in order to recover the difference between the sales charge imposed under the Letter of Intent and the sales charge that would have otherwise been imposed. Distribution Investment Option: Distributions of dividends and capital gains made by a Portfolio may be automatically invested in shares of another Portfolio if shares of that Portfolio are available for sale. Such investments will be subject to initial investment minimums, as well as additional purchase minimums. A shareholder considering the Distribution Investment Option should obtain and read the prospectus of the other Portfolios and consider the differences in objectives and policies before making any investment. Reinstatement Privilege: A shareholder who has redeemed shares of a Portfolio has a one-time right to reinvest the redemption proceeds in shares of a Portfolio at their net asset value as of the time of reinvestment. Such a reinvestment must be made within 30 days of the redemption and is limited to the amount of the redemption proceeds. Although redemptions and repurchases of shares are taxable events, a reinvestment within such 30-day period in the same fund is considered a "wash sale" and results in the inability to recognize currently all or a portion of a loss realized on the original redemption for federal income tax purposes. The investor must notify the Transfer Agent at the time the trade is placed that the transaction is a reinvestment. Exchange Privilege: Some or all of a Portfolio's Class D shares for which payment has been received (i.e., an established account), may be exchanged for Class D shares of other portfolios of the Trust or of SEI Liquid Asset Trust, SEI Tax Exempt Trust, SEI Daily Income Trust and SEI Institutional Managed Trust ("SEI Funds"). Exchanges are made at net asset value plus any applicable sales charge. SEI Funds' portfolios that are not money market portfolios currently impose a sales charge on Class D shares. A shareholder who exchanges into one of these "non-money market" portfolios will have to pay a sales charge on any portion of the exchanged Class D shares for which he or she has not previously paid a sales charge. If a shareholder has paid a sales charge on Class D shares, no additional sales charge will be assessed when he or she exchanges those Class D shares for other Class D shares. If a shareholder buys Class D shares of a "non-money market" fund and receives a sales load waiver, he or she will be deemed to have paid the sales load for purposes of this exchange privilege. In calculating any sales charge payable on an exchange transaction, the SEI Funds will assume that the first shares a shareholder exchanges are those on which he or she has already paid a sales charge. Sales charge waivers may also be available under certain circumstances, as described in the Prospectuses. The Trust reserves the right to change the terms and conditions of the exchange privilege discussed herein, or to terminate the exchange privilege, upon sixty days' notice. Exchanges will be made only after proper instructions in writing or by telephone (an "Exchange Request") are received for an established account by the Distributor. A shareholder may exchange the shares of a Portfolio's Class D shares, for which good payment has been received, in his or her account at any time, regardless of how long he or she has held his or her shares. Each Exchange Request must be in proper form (i.e., if in writing, signed by the record owner(s) exactly as the shares are registered; if by telephone, proper account identification is given by the dealer or shareholder of record), and each exchange must involve either shares having an aggregate value of at least $1,000 or all the shares in the account. Each exchange involves the redemption of the shares of a Portfolio (the "Old Portfolio") to be exchanged and the purchase S-18 at net asset value (i.e., without a sales charge) of the shares of the other portfolios (the "New Portfolios"). Any gain or loss on the redemption of the shares exchanged is reportable on the shareholder's federal income tax return, unless such shares were held in a tax-deferred retirement plan or other tax- exempt account. If the Exchange Request is received by the Distributor in writing or by telephone on any business day prior to the redemption cut-off time specified in each Prospectus, the exchange usually will occur on that day if all the restrictions set forth above have been complied with at that time. However, payment of the redemption proceeds by the Old Portfolios, and thus the purchase of shares of the New Portfolios, may be delayed for up to seven days if the Portfolio determines that such delay would be in the best interest of all of its shareholders. Investment dealers which have satisfied criteria established by the Portfolios may also communicate a shareholder's Exchange Request to the Portfolios subject to the restrictions set forth above. No more than five exchange requests may be made in any one telephone Exchange Request. Class D shares of the Core International Equity Portfolio are offered only to residents of states in which the shares are eligible for purchase. TAXES Qualification as a RIC The following discussion of federal income tax consequences is based on the Code and the regulations issued thereunder as in effect on the date of this Statement. New legislation, as well as administrative or court decisions, may significantly change the conclusions expressed herein and may have a retroactive effect with respect to the transactions contemplated herein. In order to qualify for treatment as a regulated investment company ("RIC") under the Code, a Portfolio must distribute annually to its shareholders at least 90% of its investment company taxable income (generally, net investment income, including net short-term capital gain) ("Distribution Requirement") and must meet several additional requirements. Among these requirements are the following: (i) at least 90% of a Portfolio's gross income each taxable year must be derived from dividends, interest, payments with respect to securities loans and gains from the sale or other disposition of securities or foreign currencies or other income (including gains from forward contracts) derived with respect to its business of investing in securities or those currencies ("Income Requirement"); (ii) less than 30% of a Portfolio's gross income each taxable year may be derived from the sale or other disposition of any of the following that were held for less than three months: securities, options, futures, or forward contracts, or foreign currencies (or options, futures, or forward contracts thereon) that are not directly related to a Portfolio's principal business of investing in securities ("Short-Short Limitation"); (iii) at the close of each quarter of a Portfolio's taxable year, at least 50% of the value of its total assets must be represented by cash and cash items, United States Government securities, securities of other RICs and other securities, with such other securities limited, in respect of any one issuer, to an amount that does not exceed 5% of the value of a Portfolio's total assets and that does not represent more than 10% of the outstanding voting securities of the issuer; and (iv) at the close of each quarter of a Portfolio's taxable year, not more than 25% of the value of its total assets may be invested in securities (other than United States Government securities or the securities of other RICs) of any one issuer or of two or more issuers which the Portfolio controls and which are engaged in the same, similar, or related trades or businesses. The use of hedging strategies, such as entering into forward foreign currency contracts, involves complex rules that will determine for income tax purposes the character and timing of recognition of the income received in connection therewith by the Portfolio. Income from foreign currencies, and income from transactions in forward contracts that are directly related to a Portfolio's business of investing in securities or foreign currencies, will qualify as permissible income under the Income Requirement. Income from the disposition of foreign currencies, and forward foreign currency contracts on foreign currencies, that are not directly related to a Portfolio's principal business of investing in securities will be subject to the Short-Short Limitation if they are held for less than three months and may by regulation be excluded from qualifying income. S-19 Notwithstanding the Distribution Requirement described above, which only requires a Portfolio to distribute at least 90% of its annual investment company taxable income and does not require any minimum distribution of net capital gain (the excess of net long-term capital gain over net short-term capital loss), a Portfolio will be subject to a nondeductible 4% federal excise tax to the extent it fails to distribute by the end of any calendar year 98% of its ordinary income for that year and 98% of its capital gain net income (the excess of short and long-term capital gains over short and long-term capital losses) for the one-year period ending on October 31 of that year, plus certain other amounts. Any increase in value on a position that is part of a "designated hedge" will be offset by any decrease in value (whether realized or not) of the offsetting hedging position during the period of the hedge for purposes of determining whether a Portfolio satisfies the Short-Short Limitation. Thus, only the net gain (if any) from the designated hedge will be included in gross income for purposes of that Limitation. If a Portfolio fails to qualify as a RIC for any year, all of its income will be subject to tax at corporate rates, and its distributions (including capital gains distributions) will be taxable as ordinary income dividends to its shareholders, subject to the dividends received deduction for corporate shareholders. State Taxes A Portfolio is not liable for any income or franchise tax in Massachusetts if it qualifies as a RIC for federal income tax purposes. Distributions by a Portfolio to shareholders and the ownership of shares may be subject to state and local taxes. Shareholders should consult their tax advisors regarding the state and local tax consequences of investments in a Portfolio. Foreign Taxes Dividends and interest received by a Portfolio may be subject to income, withholding or other taxes imposed by foreign countries and United States possessions that would reduce the yield on a Portfolio's securities. Tax conventions between certain countries and the United States may reduce or eliminate these taxes. Foreign countries generally do not impose taxes on capital gains with respect to investments by foreign investors. If more than 50% of the value of a Portfolio's total assets at the close of its taxable year consists of securities of foreign corporations, a Portfolio will be eligible to, and will, file an election with the Internal Revenue Service that will enable shareholders, in effect, to receive the benefit of the foreign tax credit with respect to any foreign and United States possessions income taxes paid by a Portfolio. Pursuant to the election, a Portfolio will treat those taxes as dividends paid to its shareholders. Each shareholder will be required to include a proportionate share of those taxes in gross income as income received from a foreign source and must treat the amount so included as if the shareholder had paid the foreign tax directly. The shareholder may then either deduct the taxes deemed paid by him or her in computing his or her taxable income or, alternatively, use the foregoing information in calculating the foreign tax credit (subject to significant limitations) against the shareholder's federal income tax. If a Portfolio makes the election, it will report annually to its shareholders the respective amounts per share of the Portfolio's income from sources within, and taxes paid to, foreign countries and United States possessions. PORTFOLIO TRANSACTIONS The Trust has no obligation to deal with any dealer or group of dealers in the execution of transactions in portfolio securities. Subject to policies established by the Trustees, the Adviser is responsible for placing orders to execute Portfolio transactions. In placing orders, it is the Trust's policy to seek to obtain the best net results taking into account such factors as price (including the applicable dealer spread), size, type and difficulty of the transaction involved, the firm's general execution and operational facilities, and the firm's risk in positioning the securities involved. While the Adviser generally seeks reasonably competitive spreads or commissions, the Trust will not necessarily be paying the S-20 lowest spread or commission available. The Trust will not purchase portfolio securities from any affiliated person acting as principal except in conformity with the regulations of the SEC. The Trust does not expect to use one particular dealer, but, subject to the Trust's policy of seeking the best net results, dealers who provide supplemental investment research to the Advisers may receive orders for transactions by the Trust. Information so received will be in addition to and not in lieu of the services required to be performed by the Adviser under the Advisory Agreement, and the expenses of the Adviser will not necessarily be reduced as a result of the receipt of such supplemental information. These research services include advice, either directly or through publications or writings, as to the value of securities, the advisability of investing in, purchasing or selling securities, and the availability of securities or purchasers or sellers of securities; furnishing of analyses and reports concerning issuers, securities or industries; providing information on economic factors and trends, assisting in determining portfolio performance evaluation and technical market analyses. Such services are used by the Adviser in connection with its investment decision-making process with respect to one or more funds and accounts managed by it, and may not be used exclusively with respect to the fund or account generating the brokerage. The money market securities in which a Portfolio invests are traded primarily in the over-the-counter market. Bonds and debentures are usually traded over-the- counter, but may be traded on an exchange. Where possible, each Adviser will deal directly with the dealers who make a market in the securities involved except in those circumstances where better prices and execution are available elsewhere. Such dealers usually are acting as principal for their own account. On occasion, securities may be purchased directly from the issuer. Money market securities are generally traded on a net basis and do not normally involve either brokerage commissions or transfer taxes. The cost of executing portfolio securities transactions of a Portfolio will primarily consist of dealer spreads and underwriting commissions. It is expected that the Portfolios may execute brokerage or other agency transactions through the Distributor, a registered broker-dealer, for a commission, in conformity with the 1940 Act, the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder. Under these provisions, the Distributor is permitted to receive and retain compensation for effecting portfolio transactions for a Portfolio on an exchange if a written contract is in effect between the Distributor and the Trust expressly permitting the Distributor to receive and retain such compensation. These provisions further require that commissions paid to the Distributor by the Trust for exchange transactions not exceed "usual and customary" brokerage commissions. The rules define "usual and customary" commissions to include amounts which are "reasonable and fair compared to the commission, fee or other renumeration received or to be received by other brokers in connection with comparable transactions involving similar securities being purchased or sold on a securities exchange during a comparable period of time." The Trustees, including those who are not "interested persons" of the Trust, have adopted procedures for evaluating the reasonableness of commissions paid to the Distributor and will review these procedures periodically. In addition, SFM has adopted a policy respecting the receipt of research and related products and services in connection with transactions effected for Portfolios operating within the "Manager of Managers" structure. Under this policy, SFM and the various firms that serve as sub-advisers to certain Portfolios of the Trust, in the exercise of joint investment discretion over the assets of a Portfolio, will direct a substantial portion of a Portfolio's brokerage to the Distributor in consideration of the Distributor's provision of research and related products to SFM for use in performing its advisory responsibilities. All such transactions directed to the Distributor must be accomplished in a manner that is consistent with the Trust's policy to achieve best net results, and must comply with the Trust's procedures regarding the execution of transactions through affiliated brokers.
================================================================================================================================= Total Brokerage Amount Paid to % Paid to Amount Paid to Commission (000) Distributor(000) Distributor Affiliates (000) ----------------------------------------------------------------------------------------------- 1993 1994 1995 1993 1994 1995 1993 1994 1995 1993 1994 1995 - --------------------------------------------------------------------------------------------------------------------------------- Core International Equity $ 405 $ 783 $1,482 $0 $0 $0 0% 0% 0% $ $49 $171 Portfolio - --------------------------------------------------------------------------------------------------------------------------------- European Equity Portfolio * * $66 * * $0 * * 0% * * $20 - --------------------------------------------------------------------------------------------------------------------------------- Pacific Basin Equity Portfolio * * $157 * * $0 * * 0% * * $20 - --------------------------------------------------------------------------------------------------------------------------------- Emerging Markets Equity * * $26 * * $0 * * 0% * * $0 Portfolio - --------------------------------------------------------------------------------------------------------------------------------- International Fixed Income * $0 $0 * $0 $0 * 0% 0% * * * Portfolio =================================================================================================================================
S-21 *Not in operation during such period. The principal reason for the increase in brokerage commissions paid by the Core International Equity Portfolio in the last three fiscal years was the growth of the assets in the Core International Equity Portfolio. S-22 For the fiscal years ended February 28, 1993, February 28, 1994 and February 28, 1995, the following sales loads were charged to Class D shares:
========================================================================================================================= Dollar Amount of Load Dollar Amount of Load(000) Retained by SFS(000) ------------------------------------------------------------------------- Portfolio 1993 1994 1995 1993 1994 1995 - ------------------------------------------------------------------------------------------------------------------------- Core International Equity Portfolio - Class D * * $ 0 * * $ 0 =========================================================================================================================
* Not in operation during the period. For the fiscal year ended February 28, 1995, the following commissions were paid on brokerage transactions pursuant to an agreement or understanding, to brokers because of research services provided by the brokers:
========================================================================================================= Brokerage Commissions Total Amount of % of Directed Brokerage for Research Transactions to Total Brokerage - --------------------------------------------------------------------------------------------------------- Core International Equity Portfolio $11,950 $7,970,000 .15% - --------------------------------------------------------------------------------------------------------- European Equity Portfolio $1,506 $726,267 .21% - --------------------------------------------------------------------------------------------------------- Pacific Basin Equity Portfolio 0 0 0% - --------------------------------------------------------------------------------------------------------- Emerging Markets Equity $714 Portfolio - --------------------------------------------------------------------------------------------------------- International Fund Income Portfolio N/A N/A N/A =========================================================================================================
The Trust is required to identify any securities of its "regular brokers or dealers" (as such term is defined in the 1940 Act) which the Trust has acquired during its most recent fiscal year. As of February 28, 1995, the Core International Equity Portfolio had entered into a repurchase agreement in the amount of approximately $2,099,539 with J.P. Morgan Securities Inc. ("J.P. Securities"), a wholly owned subsidiary of J.P. Morgan Co. Incorporated, and the International Fixed Income Portfolio had entered into a repurchase agreement in the amount of approximately $2,010,980 with Prudential Mortgage. J.P. Securities and Prudential Mortgage are considered "regular brokers or dealers" of the Trust. Since the Trust does not market its shares through intermediary brokers or dealers, it is not the Trust's practice to allocate brokerage or principal business on the basis of sales of its shares which may be made through such firms. However, the Adviser may place Portfolio orders with qualified broker- dealers who recommend the Trust to clients, and may, when a number of brokers and dealers can provide best price and execution on a particular transaction, consider such recommendations by a broker or dealer in selecting among broker- dealers. It is expected that the portfolio turnover rate for each Portfolio will normally not exceed 100% for a Portfolio. The portfolio turnover rate for the Core International Equity Portfolio would exceed 100% if all of its securities, exclusive of United States Government securities and other securities whose maturities at the time of acquisition are one year or less, are replaced in the period of one year. Turnover rates may vary from year to year and may be affected by cash requirements for redemptions and by requirements which enable the Portfolio to receive favorable tax treatment. S-23 DESCRIPTION OF SHARES The Declaration of Trust authorizes the issuance of an unlimited number of shares of each Portfolio, each of which represents an equal proportionate interest in that Portfolio. Each share upon liquidation entitles a shareholder to a pro rata share in the net assets of that Portfolio. Shareholders have no preemptive rights. The Declaration of Trust provides that the Trustees of the Trust may create additional portfolios of shares or classes of portfolios. Share certificates representing the shares will not be issued. LIMITATION OF TRUSTEES' LIABILITY The Declaration of Trust provides that a Trustee shall be liable only for his own willful defaults and, if reasonable care has been exercised in the selection of officers, agents, employees or administrators, shall not be liable for any neglect or wrongdoing of any such person. The Declaration of Trust also provides that the Trust will indemnify its Trustees and officers against liabilities and expenses incurred in connection with actual or threatened litigation in which they may be involved because of their offices with the Trust unless it is determined in the manner provided in the Declaration of Trust that they have not acted in good faith in the reasonable belief that their actions were in the best interests of the Trust. However, nothing in the Declaration of Trust shall protect or indemnify a Trustee against any liability for his wilful misfeasance, bad faith, gross negligence or reckless disregard of his duties. VOTING Where the Prospectuses for the Portfolios or Statement of Additional Information state that an investment limitation or a fundamental policy may not be changed without shareholder approval, such approval means the vote of (i) 67% or more of a Portfolio's shares present at a meeting if the holders of more than 50% of the outstanding shares of the Portfolio are present or represented by Proxy, or (ii) more than 50% of a Portfolio's outstanding shares, whichever is less. SHAREHOLDER LIABILITY The Trust is an entity of the type commonly known as a "Massachusetts business trust." Under Massachusetts law, shareholders of such a Trust could, under certain circumstances, be held personally liable as partners for the obligations of the Trust. Even if, however, the Trust were held to be a partnership, the possibility of the shareholders' incurring financial loss for that reason appears remote because the Trust's Declaration of Trust contains an express disclaimer of shareholder liability for obligations of the Trust and requires that notice of such disclaimer be given in each agreement, obligation or instrument entered into or executed by or on behalf of the Trust or the Trustees, and because the Declaration of Trust provides for indemnification out of the Trust property for any shareholders held personally liable for the obligations of the Trust. CONTROL PERSONS AND PRINCIPAL HOLDERS OF SECURITIES As of April 1, 1995, the following persons were the only persons who were record owners (or to the knowledge of the Trust, beneficial owners) of 5% or more of the shares of the Portfolios. The Trust believes that most of the shares referred to below were held by the below persons in accounts for their fiduciary, agency or custodial customers. Core International Equity Portfolio- Class A: Eagle Trust Company, attn: Suzanne O'Boyle, 680 East Swedesford Road, Wayne, PA 19087, 30.18%; ACO, c/o Integra Trust Services, attn: Karen White, Trust Securities Section 2 032, 300 Fourth Avenue, Pittsburgh, PA 15278-2232, 14.98%; Bellford & Co., c/o Perrybell Investments, Inc., attn: Dawn Ohmann, 601 Lakeshore Parkway, Suite 350, Minnetonka, MN 55343, 5.89%. S-24 Core International Equity Portfolio- Class D: Relico, P.O. Box 48449, Atlanta, GA 30362-1449, 18.84%: Eagle Trust Company, Custodian for IRA of Pamela A Olson, 1690 N. Foxboro Loop, Crystal River, FL 34429, 8.56%; Frost National Bank, Custodian for IRA of Richard Torres, 4622 Sunny Walk, San Antonio, TX 78217, 5.28%, Frost National Bank, Custodian for IRA of Jennifer M. Littlejohn, 3225 Manassas, Corpus Christi, TX 78410, 17.56%; Frost National Bank, Custodian for IRA of George Arias, 15026 Digger, San Antonio, TX 78247, 21.21%. European Equity Portfolio- Class A: Eagle Trust Company, attn: Suzanne O'Boyle, 680 East Swedesford Road, Wayne, PA 19087, 82.82%. Pacific Basin Equity Portfolio- Class A: Eagle Trust Company, attn: Suzanne O'Boyle, 680 East Swedesford Road, Wayne, PA 19087, 82.49%. Emerging Markets Equity Portfolio- Class A: Eagle Trust Company, attn: Suzanne O'Boyle, 680 East Swedesford Road, Wayne, PA 19087, 65.56%; Patterson & Co., c/o CoreStates Bank NA, P.O. Box 7829, Philadelphia, PA 19101, 31.16%. International Fixed Income Portfolio- Class A: Eagle Trust Company, attn: Suzanne O'Boyle, 680 East Swedesford Road, Wayne, PA 19087, 61.47% EXPERTS The financial statements in this Statement of Additional Information and the Financial Highlights included in the Prospectus have been audited by Price Waterhouse LLP, independent accountants, as indicated in their report with respect thereto, and are included herein in reliance upon the authority of said firm as experts in giving said report. FINANCIAL STATEMENTS Following are (1) the audited financial statements for the fiscal year ended February 28, 1995, including the financial highlights, appearing in the Trust's 1995 Annual Report to Shareholders, and the Report thereon of Price Waterhouse LLP, independent accountants, and (2) the unaudited financial statements for the period January 17, 1995 through May 17, 1995 for the Emerging Markets Equity Portfolio. S-25 REPORT OF INDEPENDENT ACCOUNTANTS - -------------------------------------------------------------------------------- To the Shareholders and Board of Trustees SEI International Trust In our opinion, the accompanying statement of net assets and where applicable, the schedules of investments and statements 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 Core International Equity, European Equity, Pacific Basin Equity, Emerging Markets Equity and International Fixed Income Portfolios of SEI International Trust (the "Fund") at February 28, 1995, the results of each of their opera- tions, 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 finan- cial statements based on our audits. We conducted our audits of these financial statements in accordance with generally accepted auditing standards which re- quire 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 dis- closures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall finan- cial statement presentation. We believe that our audits, which included confir- mation of securities at February 28, 1995 by correspondence with the custodians and brokers and the application of alternative auditing procedures where con- firmations from brokers were not received, provide a reasonable basis for the opinion expressed above. PRICE WATERHOUSE LLP Philadelphia, PA April 11, 1995 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- SEI International Trust -- February 28, 1995 CORE INTERNATIONAL EQUITY PORTFOLIO - --------------------------------------------------------------------------------
Market Value Description Shares (000) - ------------------------------------------------------- FOREIGN COMMON STOCKS -- 98.7% AUSTRALIA -- 7.0% Australia & New Zealand Bank Group 531,827 $ 1,864 Australian National 1,128,000 1,124 Boral 450,000 1,205 Brambles 179,441 1,700 Broken Hill Proprietary 427,100 5,894 Burns Philip 209,326 502 Coles Myer 236,100 791 Lend Lease 46,000 577 National Australia Bank 350,272 2,822 Newscorp 308,456 1,372 Pioneer 761,900 1,833 SA Breweries 383,350 883 Westpac Banking 682,707 2,519 -------- 23,086 -------- BELGIUM -- 2.9% Electrabel 11,400 2,233 Fortis 8,600 741 Groupe Bruxelles Lambert 5,500 669 Kredietbank 6,810 1,434 Petrofina 2,330 685 Societe Generale de Belgique 25,820 1,763 Solvay 1,500 776 Tractebel 3,000 915 Union Miniere* 6,800 447 -------- 9,663 -------- CANADA -- 2.6% Alcan Aluminum 17,100 416 Bank of Montreal 54,500 1,061 Bank of Nova Scotia 86,900 1,715 Canadian Imperial Bank of Commerce 71,200 1,738 Imperial Oil 24,900 847 Nova Corporation of Alberta 91,200 736 Oshawa Group 15,300 206 Royal Bank of Canada 43,200 892 Seagram 30,200 929 -------- 8,540 -------- FRANCE -- 10.4% Banque National de Paris 19,400 860 Cap Gemini Sogeti 30,000 979 Christian Dior 21,000 1,678 Cie Bancaire 17,450 1,656 Cie de Saint Gobain 26,121 3,075 Cie Financier de Suez 8,800 386 Cie Generale D'Industrie Et de Part 4,000 816
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Market Value Description Shares (000) - --------------------------------------------------- Cie Generale de Eaux 31,330 $ 2,900 Colas 3,000 497 Credit Local de France 21,800 1,734 De Dietrich Et Compagnie 750 395 Ecco 4,400 517 Epeda Bertrand Faure 3,650 669 Financiere Poliet 6,150 472 Groupe de La Cite 5,760 833 Lafarge Coppee 28,650 1,848 LVMH Moet Hennessy 14,811 2,367 Michelin "B"* 26,300 1,051 Pechiney 17,500 1,177 Peugeot 15,025 2,050 Saint Louis-Bouchon 5,250 1,435 Societe Nationale Elf Aquitaine 59,291 4,256 Sommer Allibert 900 306 Total Compaigne "B" 37,637 2,081 -------- 34,038 -------- GERMANY -- 4.1% BASF 17,600 3,898 Bayer 11,017 2,717 Degussa 4,200 1,349 Hochtief 2,100 1,192 Hoechst 7,350 1,635 Karstadt 3,400 1,373 Man 4,600 1,297 -------- 13,461 -------- HONG KONG -- 2.6% China Light & Power 162,200 791 Hang Seng Bank 103,000 640 Henderson Investment 1,098,000 767 Hong Kong Telecommunications 116,000 209 HSBC Holdings 150,000 1,576 Kumagai Gumi 424,000 293 New World China Fund 88,000 933 Regal Hotels 3,940,000 759 Sino Land 2,034,000 1,631 Varitronix 653,000 955 -------- 8,554 -------- ITALY -- 2.8% Fiat SPA* 482,000 1,212 Fidis 282,600 639 Mondadori 140,000 896 Olivetti* 1,000,000 1,113 Rinascente di Risp 49,000 132 SAI di Risp 101,000 469 STET 582,900 1,622
STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- SEI International Trust -- February 28, 1995 CORE INTERNATIONAL EQUITY PORTFOLIO - --------------------------------------------------------------------------------
Market Value Description Shares (000) - --------------------------------------------- Telecom Italia 540,000 $ 1,303 Telecom Italia di Risp 970,400 1,884 -------- 9,270 -------- JAPAN -- 30.9% Advantest 37,000 954 Amada 75,000 746 Aoyama Trading 77,000 1,324 Asahi Chemical 72,000 477 Asahi Glass 89,000 986 Canon 25,000 373 Central Glass* 60,000 230 Chiba Kogyo Bank 1,100 48 Chubu Electric Power 34,000 828 Citizen Watch 122,000 840 Dai Nippon Ink & Chemical 368,000 1,608 Dai Nippon Printing 158,000 2,340 Daicel Chemical 39,000 184 Daido Steel 278,000 1,368 Daihatsu Motor 371,000 1,729 Daikin Industries 172,000 1,286 Daikyo 222,000 1,607 Daito Trust Construction 87,000 748 Daiwa Bank 128,000 1,069 Daiwa House 87,000 1,271 Daiwa Securities 177,000 1,980 Fanuc 18,900 771 Fuji Photo Film 96,000 2,058 Fujita 108,000 579 Fujitsu 273,000 2,494 Hankyu Realty 36,000 247 Hino Motors 190,000 1,496 Hitachi 609,000 5,330 Hokkaido Takushoku Bank 232,000 800 Honda Motor 121,000 1,830 Hyakugo Bank 93,000 583 Kagoshima Bank 116,000 847 Kirin Brewery 188,000 1,947 Kishu Paper 97,000 412 Matsushita Electric 353,000 5,119 Mitsubishi Estate 145,000 1,464 Mitsubishi Gas Chemical 431,000 1,763 Mitsubishi Paper 44,000 256 Mitsui Fudosan 152,000 1,557 Mitsui Trust & Banking 206,000 1,854 Navix Line* 517,000 1,483 Nichii 81,000 881 Nikko Securities 118,000 1,080 Nintendo 23,700 1,249 Nippon Chemical 104,000 787 Nippon Credit Bank 101,000 520 Nippon Meat Packers 103,000 1,344 Nippon Sheet Glass 135,000 692
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Market Value Description Shares (000) - ---------------------------------------------------- Nippon Steel 137,000 $ 480 Nissan Fire & Marine Insurance 56,000 363 Nissan Motors 263,000 1,801 NKK* 384,000 990 NSK 159,000 980 Obayashi 172,000 1,301 Orient 118,000 631 Orix 31,000 1,085 Osaka Gas 656,000 2,412 Pioneer Electronics 70,000 1,494 Sangetsu 1,000 26 Seino Transportation 59,000 929 Sekisui House 228,000 2,574 Shimizu 126,000 1,253 Shinmaywa Industries 103,000 882 Skylark 44,000 647 Sumitomo Bank 182,000 3,318 Sumitomo Metal* 751,000 2,155 Sumitomo Realty & Development 110,000 599 Taisei 193,000 1,243 Takeda Chemical 192,000 2,227 Tokyo Electric Power 87,500 2,374 Tokyo Steel 54,500 1,225 Toray Industries 429,000 2,693 Toshiba 598,000 3,784 Victor of Japan* 144,000 1,596 Yokogawa Bridge 41,000 531 -------- 101,032 -------- MALAYSIA -- 1.7% Faber Group* 1,009,000 965 Land and General 280,500 797 Malaysian International Shipping 668,000 1,832 MBF Capital 458,000 519 Rashid Hussain 378,000 992 Westmont Berhad 93,000 459 -------- 5,564 -------- NETHERLANDS -- 3.7% ABN Amro Holdings 51,000 1,857 Ahold 52,000 1,674 DSM 10,100 822 Heineken 10,800 1,695 International Nederlanden 56,700 2,780 KPN 25,600 905 Philips Electronics 76,665 2,543 -------- 12,276 -------- NEW ZEALAND -- 3.0% Carter Holt Harvey 1,027,837 2,265 Fernz 89,600 298
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Market Value Description Shares (000) - ---------------------------------------------------------- Fisher & Paykel 130,400 $ 334 Fletcher Challenge 889,400 2,214 Fletcher Challenge Forest 266,700 338 Lion Nathan 498,600 947 Telecom Corporation of New Zealand 685,600 2,375 Telecom Corporation of New Zealand ADR 20,200 1,119 -------- 9,890 -------- NORWAY -- 0.6% Den Norske Bank "B"* 242,909 640 Kvaerner "B" 30,000 1,302 -------- 1,942 -------- SINGAPORE -- 2.8% Creative Technology* 72,800 819 DBS Land 184,000 480 Fraser and Neave 54,000 570 Jardine Matheson Holdings 155,000 1,426 Jardine Strategic Holdings 166,000 618 Sembawang Maritime 129,000 539 Singapore Press "F" 67,000 1,152 Strait Steamship Land 251,000 776 United Overseas Bank "F" 280,000 2,725 -------- 9,105 -------- SPAIN -- 2.5% Banco Bilbao-Vizcaya 23,480 627 Banco de Santander 19,200 689 Banco Intercon 11,800 969 Banco Popular 8,000 1,019 Iberdrola 293,900 1,843 Repsol 33,800 968 Telefonica de Espana 143,000 1,788 Viscofan Envoltura 30,400 398 -------- 8,301 -------- SWEDEN -- 1.0% Autoliv AB* 10,000 369 Pharmacia AB 103,000 1,898 Trelleborg AB "B"* 80,000 1,109 -------- 3,376 -------- SWITZERLAND -- 2.5% Holderbank Glarus 2,250 1,670 Nestle SA 2,020 1,954 Roche Holdings 354 1,964 Schweiz Ruckversicherung 3,210 1,927 Zurich Versicherung 800 766 -------- 8,281 --------
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Market Value Description Shares (000) - ----------------------------------------------- UNITED KINGDOM -- 17.6% AAH Holdings 60,000 $ 406 ASDA Group 630,000 675 Bass 170,000 1,359 BAT Industries 210,347 1,385 Booker 102,000 604 British Gas 859,000 3,956 British Petroleum 411,385 2,578 BTR 211,000 1,047 Charter 98,650 1,165 Courtaulds 30,000 199 Dixons Group 301,000 1,000 Guinness 263,500 1,733 Hillsdown Holdings 457,000 1,287 HSBC Holdings 83,000 872 HSBC Holdings 40,300 423 Imperial Metal 40,000 196 Lasmo* 449,998 1,097 Lloyds Abbey Life 160,000 868 Lloyds Bank 350,200 3,176 London Electricty 35,000 398 Marks & Spencer 164,000 967 Midlands Electric 39,600 460 Mirror Group 196,000 419 National Power 65,000 477 National Westminster 256,500 1,952 Northern Foods 310,000 1,001 Ocean Group 239,500 1,057 Peninsular & Oriental 209,700 1,872 Reckitt & Coleman 10,625 105 Royal Insurance 407,500 1,799 RTZ 155,955 1,818 Sainsbury (J) 149,490 970 Scottish Power 190,000 986 Sears 586,000 918 Smith (Wh) Group 97,000 637 Smithkline Beecham Units 533,628 4,074 Storehouse 283,000 996 Sun Alliance Group 343,900 1,693 T & N 1,070,000 2,726 Tesco 475,000 1,883 Thames Water 245,500 1,853 Thorn EMI 86,290 1,422 Unilever 43,000 796 Whitbread "A" 170,000 1,447 Yorkshire Water 131,000 1,064 -------- 57,816 -------- Total Foreign Common Stocks (Cost $322,366) 324,195 --------
STATEMENT OF NET ASSETS/SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- SEI International Trust -- February 28, 1995 CORE INTERNATIONAL EQUITY PORTFOLIO - --------------------------------------------------------------------------------
Market Face Amount Value Description (000) (000) - ------------------------------------------------------------------------------- REPURCHASE AGREEMENT -- 0.6% J.P. Morgan 6.01%, dated 2/28/95, matures 3/1/95, repurchase price $2,099,539 (collateralized by Federal National Mortgage Association, 7.375%, due 12/25/21, par value $2,298,052; market value $2,155,098) $ 2,100 $ 2,100 -------- Total Repurchase Agreement (Cost $2,100) 2,100 -------- Total Investments -- 99.3% (Cost $324,466) 326,295 -------- OTHER ASSETS AND LIABILITIES -- 0.7% Other Assets and Liabilities, Net 2,259 -------- NET ASSETS: Portfolio shares of Class A (unlimited authorization -- no par value) based on 34,249,039 outstanding shares of beneficial interest 318,688 Portfolio shares of ProVantage Funds (unlimited authorization -- no par value) based on 5,286 shares of beneficial interest 55 Accumulated net realized gain on investments 17,784 Accumulated net realized loss on foreign currency transactions (8,715) Net unrealized depreciation on forward foreign currency contracts, foreign currencies and translation of other assets and liabilities denominated in foreign currencies (1,056) Net unrealized appreciation on investments 1,829 Accumulated net investment loss (31) -------- Total Net Assets -- 100.0% $328,554 ======== Net Asset Value, Offering and Redemption Price Per Share -- Class A $ 9.59 ======== Net Asset Value and Redemption Price Per Share -- ProVantage Funds $ 9.56 ======== Maximum Offering Price Per Share -- ProVantage Funds ($9.56 / 95%) $ 10.06 ========
*Non-income producing security ADRAmerican Depository Receipt EUROPEAN EQUITY PORTFOLIO - --------------------------------------------------------------------------------
Market Value Description Shares (000) - -------------------------------------------------- FOREIGN COMMON STOCKS -- 94.3% BELGIUM -- 1.3% Solvay 900 $ 466 --------- DENMARK -- 1.2% ISS International 13,700 423 --------- FINLAND -- 1.2% Nokia 2,880 433 --------- FRANCE -- 10.1% Carrefour 1,540 629 Cetelem 2,500 443 Cie de Saint Gobain 3,600 424 Cie Generale des Eaux 4,080 378 Credit Foncier de France 2,790 363 Galeries Lafayette 750 307 LVMH Moet Hennessey 3,890 621 Societe Nationale Elf Aquitaine 7,000 502 --------- 3,667 --------- GERMANY -- 9.8% BASF 2,200 487 Beiersdorf 517 344 Hoechst 1,860 414 Hornbach Baumarket New 200 119 Hornbach Holdings 330 329 Jungheinrich 1,950 451 Rhon Klinikum 460 309 SAP 745 621 Wella 680 468 --------- 3,542 --------- ITALY -- 2.7% Ansaldo Transport 125,920 324 Benetton Group 15,000 144 Mediobanca Warrants* 272 -- STET 189,000 526 --------- 994 --------- NETHERLANDS -- 5.6% ABN Amro Holdings 9,018 328 Boskalis Westminster 15,150 297 Reed Elsevier 51,000 499 International Nederlanden 7,820 383 Royal Dutch Petroleum 4,630 523 --------- 2,030 --------- NORWAY -- 1.9% Norsk Hydro 12,000 456 Saga Petroleum "B" 17,640 219 --------- 675 ---------
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Market Value Description Shares (000) - ---------------------------------------------------- SPAIN -- 6.7% Autopistas Cesa 36,362 $ 302 Continente* 19,150 392 Empresa Nacional de Electricidad 8,700 380 Fomento de Construcciones Contratas 4,300 356 Gas Natural SDG 4,450 391 Telefonica de Espana 50,000 625 ------- 2,446 ------- SWEDEN -- 9.9% AGA Free "B" 61,000 654 Astra Free "B" 8,300 206 Electrolux "B" 7,000 353 Kalmar Industries* 25,000 345 Marieberg Tidnings "A" 14,000 334 Mo Och Domsjo "B"* 10,150 507 Svenska Cellulosa* 28,000 497 Svenskt Stal "B" 7,300 328 Volvo Free "B" 19,100 383 ------- 3,607 ------- SWITZERLAND -- 7.3% Brown Boveri & Cie 590 515 Holderbank Glarus 697 517 Nestle SA 545 527 Roche Holdings 120 666 Societe Generale de Surveillance 295 430 ------- 2,655 ------- UNITED KINGDOM -- 36.6% Abbey National 60,000 418 Argyll Group 30,000 128 BAT Industries 60,000 395 Blue Circle Industries 59,000 239 Britannic Assurance 16,000 130 British Aerospace 36,000 268 British Aerospace New 4,000 30 British Airways 53,000 327 British Petroleum 116,000 727 British Sky Broadcasting* 86,000 345 British Telecommunications 104,400 624 BTR 70,000 347 Commercial Union 38,458 308 Dalgety 51,000 343 De La Rue 23,000 373 English China Clay 17,750 96 General Electric 67,000 308 Glaxo Holdings 38,700 388 Granada Group 56,000 451 Grand Metropolitan 69,500 421 Great Universal Stores 33,000 266
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Market Value Description Shares (000) - -------------------------------------------------------------------------- Hammerson "A" 51,500 $ 264 Harrison & Crossfield 62,000 140 Heath, C.E. 18,000 70 Lasmo* 100,000 244 Lex Service 24,000 106 MEPC 23,000 144 Morrison Supermarket 87,000 191 Mowlem, John* 40,400 57 Next 59,000 244 Prudential 74,000 357 Reckitt & Coleman 46,625 462 Reuters Holdings 55,000 386 Rothman Units 58,000 412 Royal Insurance 71,499 316 Saatchi & Saatchi* 63,159 92 Scottish Power 60,000 311 Sears 95,000 149 Sedgwick Group 95,000 233 Severn Trent 31,500 251 Smithkline Beecham Units 93,000 710 Smiths Industries 51,000 351 Tate & Lyle 57,000 392 Williams Holdings 85,000 440 ------- 13,254 ------- Total Foreign Common Stocks (Cost $34,071) 34,192 ------- FOREIGN PREFERRED STOCKS -- 0.0% NETHERLANDS -- 0.0% International Nederlanden* 1,012 5 ------- Total Foreign Preferred Stocks (Cost $1) 5 ------- Total Investments -- 94.3% (of net assets) (Cost $34,072) $34,197 =======
*Non-income producing security PACIFIC BASIN EQUITY PORTFOLIO FOREIGN COMMON STOCKS -- 93.1% AUSTRALIA -- 4.6% Amcor 16,000 $115 Australia & New Zealand Bank Group 36,000 126 Australian National 30,000 30 Broken Hill Proprietary 19,000 262 CRA 10,000 128 John Fairfax 68,000 142 Mayne Nickless 26,000 118 Newscorp 40,000 178 Normandy Poseidon 50,000 64
SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- SEI International Trust -- February 28, 1995 PACIFIC BASIN EQUITY PORTFOLIO - --------------------------------------------------------------------------------
Market Value Description Shares (000) - -------------------------------------------------- Oil Search 75,000 $ 49 Pancontinental Mining 60,000 77 Western Mining 31,125 167 Woodside Petroleum 17,000 63 ------- 1,519 ------- HONG KONG -- 10.0% Cheung Kong Holdings 71,000 309 Citic Pacific 80,000 199 Hong Kong & Shanghai Hotels 48,000 56 Hong Kong Electric 97,000 290 Hong Kong Telecommunications 190,800 343 HSBC Holdings 37,090 390 Hutchison Whampoa 103,000 437 Mandarin Oriental 272,718 323 Sun Hung Kai Properties 49,200 331 Swire Pacific "A" 46,000 323 Wharf Holdings 91,000 313 ------- 3,314 ------- JAPAN -- 61.8% Amada 34,000 338 Aoyama Trading 2,000 34 Bridgestone 54,000 738 Canon 23,000 343 Canon Sales 4,000 91 Chain Store Okuwa 5,000 96 Credit Saison 11,000 194 Dai Tokyo Fire & Marine Insurance 15,000 96 Daiwa Securities 30,000 336 DDI 30 223 Denny's 8,000 245 East Japan Railway 107 472 Familymart 5,040 233 Fuji Photo Film 11,000 236 Glory 4,000 111 Hirose Electric 4,000 213 Innotech 2,000 62 Ito Yokado 15,000 684 Japan Airport Terminal 18,000 196 Japan Associated Finance 2,000 215 Kahma 8,000 216 Koa Fire & Marine Insurance 31,000 170 Kobe Steel 45,000 116 Koito Industries 5,000 55 Kokusai Electric 6,000 100 Kuraray 20,000 207 Mabuchi Motor 3,000 187 Makita 22,000 342 Matsushita Electric 48,000 696 Mitsubishi 59,000 636 Mitsubishi Electric 108,000 702
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Market Value Description Shares (000) - ---------------------------------------------- Mitsubishi Gas Chemical 67,000 $ 274 Mitsubishi Motor 39,000 323 Mitsubishi Trust & Banking 36,000 511 Mitsui 77,000 534 Mitsui Petrochem 21,000 148 Mos Food Services 2,000 60 Mr. Max 4,200 90 Murata Manufacturing 16,000 529 National House 8,000 136 New Oji Paper 55,000 526 Nippon Shinpan 27,000 201 Nippon Steel 85,000 298 Nippon Television 1,000 205 Nomura Securities 22,000 381 Okinawa Electric Power 4,000 110 Omron 12,000 204 Sangetsu 5,000 132 Sankyo 16,000 376 Santen Pharmaceutical 5,000 127 Seino Transportation 19,000 299 Sekisui House 33,000 373 Seven Eleven 1,100 72 Shimachu 8,000 210 Shimamura 5,500 204 Shinetsu 11,000 178 Showa Shell Sekiyo 53,000 593 Sony 4,000 174 Sony Music Entertainment 2,000 91 Sumitomo Electric 7,000 80 Sumitomo Forestry 20,000 280 Taisho Pharmaceutical 7,000 119 Takashimaya 12,000 158 Toho 3,000 472 Tokio Marine & Fire Insurance 57,000 596 Tokyo Broadcasting System 23,000 312 Tokyo Electronics 13,000 343 Toray Industries 31,000 195 Toshiba 120,000 759 Toyota Motor 47,000 847 Yamanouchi Pharmaceutical 4,000 78 Yokogawa Electric 27,000 247 ------- 20,428 ------- MALAYSIA -- 3.9% Genting Berhad 33,500 290 Larut Consolidated 87,500 120 Larut Convertable Loan Stock* 42,000 12 Larut Warrants* 42,000 30 Malayan Banking 37,500 248 New Straits Times Press 33,000 91 Perusahaan Otomobil 48,000 169 Renong Berhad 47,000 64
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Market Value Description Shares (000) - -------------------------------------------------------------------------- Technology Resources 40,000 $ 137 Telekom Malaysia 18,000 126 ------- 1,287 ------- NEW ZEALAND -- 1.7% Carter Holt Harvey 255,511 563 ------- SINGAPORE -- 4.1% DBS Land 32,000 84 Development Bank of Singapore "F" 18,000 174 Jurong Ship Yard 18,000 150 Keppel 25,000 200 Singapore International Airlines "F" 26,000 260 Singapore Press "F" 12,400 213 United Overseas Bank "F" 28,187 275 ------- 1,356 ------- SOUTH KOREA -- 7.0% Daewoo Securities 5,000 147 Goldstar 13,776 478 Hanil Bank 1,500 17 Hanshin 8,000 160 Korea Electric Power 14,700 477 Pohang Iron & Steel 7,000 545 Samsung Electronic 2,040 295 Shinhan Bank 8,000 156 Shinhan Bank (New) 1,468 29 ------- 2,304 ------- Total Foreign Common Stocks (Cost $35,397) 30,771 ------- FOREIGN PREFERRED STOCKS -- 0.3% AUSTRALIA -- 0.1% Newscorp 10,500 42 ------- SOUTH KOREA -- 0.2% Hanshin 5,500 67 ------- Total Foreign Preferred Stocks (Cost $156) 109 ------- Total Investments -- 93.4% (of net assets) (Cost $35,553) $30,880 =======
*Non-income producing security EMERGING MARKETS EQUITY PORTFOLIO - --------------------------------------------------------------------------------
Market Description Shares Value (000) - --------------------------------------------------------- FOREIGN COMMON STOCKS -- 77.8% ARGENTINA -- 3.0% Central Costanera 11,500 $ 28 Ciadea SA* 2,800 15 IRSA GDS* 3,400 66 Perez Companc 16,200 52 ------ 161 ------ BRAZIL -- 5.3% Brazil Fund 6,400 169 Cia Vale Do Rio Doce ADR 1,500 55 Telebras ADR 2,000 59 ------ 283 ------ CHILE -- 5.1% Banco Osorno ADS* 7,700 81 Chilgener ADR 7,000 164 Maderas Y Sintecticos Sociedad ADR 1,500 26 ------ 271 ------ CHINA -- 0.4% Huaneng Power ADS* 1,300 20 ------ GREECE -- 1.5% Hellenic Bottling 2,210 79 ------ HONG KONG -- 4.3% CDL Hotels International 116,000 50 Guang Dong Investment 96,000 44 Johnson Electric Holdings 22,000 44 MC Packaging 70,000 23 Shangri-La Asia 42,000 43 Siu-Fung Ceramics 160,000 23 ------ 227 ------ INDIA -- 1.8% India Investment Fund 9,500 94 ------ INDONESIA -- 4.9% Indonesia Satellite ADR* 4,100 146 Indorayon 14,000 35 Semen Gresik "F" 17,000 79 ------ 260 ------ KOREA -- 2.1% Korea Equity Fund 3,400 27 Korea Fund 1,400 27 Korea Investment Fund 4,600 57 ------ 111 ------
SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- SEI International Trust -- February 28, 1995 EMERGING MARKETS EQUITY PORTFOLIO - --------------------------------------------------------------------------------
Market Description Shares Value (000) - ------------------------------------------------------- MALAYSIA -- 13.7% Arab Malaysian Merchant Bank 31,000 $ 288 IJM Corp Berhad 36,000 124 Resorts World Berhad 15,000 81 United Engineers 42,000 234 ------ 727 ------ MEXICO -- 1.8% Cemex SA "B" 3,000 7 Kimberly Clark "A" 1,000 7 Panamerican Beverages ADR 695 17 Penoles* 5,000 10 Telefonos de Mexico ADS 1,900 53 ------ 94 ------ PHILIPPINES -- 6.0% Ayala "B" 38,800 52 Bacnotan Cement* 51,200 62 Manila Mining "B" 5,100,000 20 Petron 121,000 88 Philippine Long Distance ADR 1,650 98 ------ 320 ------ SINGAPORE -- 10.1% City Developments 8,000 39 Singapore International Airlines 13,000 130 Singapore Press "F" 5,000 86 United Overseas Bank "F" 29,000 282 ------ 537 ------ SOUTH AFRICA -- 0.9% Anglo American 500 27 Barlow 2,200 22 ------ 49 ------ SOUTH KOREA -- 1.5% Korea Electric Power ADR 2,050 38 Pohang Iron & Steel ADS 1,600 41 ------ 79 ------ TAIWAN -- 2.6% Taiwan (ROC) Fund* 6,800 76 Taiwan Equity Fund 5,200 59 ------ 135 ------ THAILAND -- 12.8% Electricity Generating* 66,300 169
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Shares/Face Market Description Amount (000)(1) Value (000) - ----------------------------------------------------------------------------- Siam Cement 4,300 $ 258 Thai Farmers Bank 30,200 250 ------ 677 ------ Total Foreign Common Stocks (Cost $4,070) 4,124 ------ Total Investments -- 77.8% (of net assets) (Cost $4,070) $4,124 ====== *Non-income producing security ADRAmerican Depository Receipt ADSAmerican Depository Shares GDS Global Depository Shares INTERNATIONAL FIXED INCOME PORTFOLIO FOREIGN BONDS -- 85.3% AUSTRALIA -- 1.2% Australian Government 8.750%, 01/15/01 705 $ 498 ------ BELGIUM -- 2.4% Kingdom of Belgium 9.000%, 06/27/01 15,000 527 7.250%, 04/29/04 15,000 470 ------ 997 ------ CANADA -- 1.8% Canadian Government 7.500%, 12/01/03 35 24 6.500%, 06/01/04 615 386 9.250%, 06/01/22 255 193 9.000%, 06/01/25 240 178 ------ 781 ------ DENMARK -- 4.1% Kingdom of Denmark 8.000%, 11/15/01 4,320 719 8.000%, 05/15/03 6,300 1,041 ------ 1,760 ------ FRANCE -- 9.6% French Treasury Bill 5.920%, 04/20/95 8,500 1,643 Government of France OAT 9.500%, 01/25/01 3,200 673 5.500%, 04/25/04 4,310 709 8.500%, 10/25/08 5,260 1,061 ------ 4,086 ------
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Face Amount Market Description (000)(1) Value (000) - --------------------------------------------------- GERMANY -- 18.8% Bundesrepublic 9.000%, 10/20/00 2,095 $ 1,557 Bundesschatzanweisungen 6.875%, 02/24/99 1,295 890 Deutschland Republic 6.250%, 01/04/24 625 354 Deutschland Republic Float 5.280%, 09/20/04 1,100 746 KFW International Finance 6.625%, 04/15/03 1,140 739 Treuhandanstalt 7.125%, 01/29/03 210 141 7.500%, 09/09/04 5,190 3,581 ------- 8,008 ------- ITALY -- 4.8% Italian Government BTPS 8.500%, 04/01/99 2,675,000 1,408 8.500%, 08/01/99 1,190,000 619 ------- 2,027 ------- JAPAN -- 25.8% Asian Development Bank 5.000%, 02/05/03 226,000 2,413 Export-Import Bank 4.375%, 10/01/03 250,000 2,566 Japanese Development Bank 5.000%, 10/01/99 50,000 544 Republic of Austria 6.250%, 10/16/03 173,000 2,009 3.750%, 02/03/09 5,000 46 Republic of Finland 6.000%, 01/29/02 130,000 1,466 World Bank 4.500%, 06/20/00 65,000 691 4.500%, 03/20/03 120,000 1,252 ------- 10,987 ------- NETHERLANDS -- 5.6% Kingdom of Netherlands 6.500%, 01/15/99 137 83 Netherlands Government 6.250%, 07/15/98 878 527 7.500%, 06/15/99 800 498 8.500%, 03/15/01 350 227 7.250%, 10/01/04 1,725 1,038 ------- 2,373 -------
- --------------------------------------------------------------------------------
Face Amount Market Description (000)(1) Value (000) - ----------------------------------------------------------- NEW ZEALAND -- 2.6% New Zealand Government 9.000%, 11/15/96 1,150 $ 728 6.500%, 02/15/00 255 147 8.000%, 04/15/04 150 92 New Zealand Treasury Bill 8.810%, 04/05/95 200 126 ------- 1,093 ------- NORWAY -- 0.6% Government of Norway 9.500%, 10/31/02 1,600 271 ------- SPAIN -- 1.1% Kingdom of Spain 10.300%, 06/15/02 14,400 104 8.000%, 05/30/04 60,000 372 ------- 476 ------- SWEDEN -- 0.8% Kingdom of Sweden 10.250%, 05/05/03 1,800 242 Swedish Treasury Note 11.000%, 01/21/99 800 112 ------- 354 ------- UNITED KINGDOM -- 6.1% European Investment Bank 7.000%, 03/30/98 200 302 United Kingdom Treasury 10.000%, 02/26/01 415 695 6.750%, 11/26/04 90 125 8.500%, 12/07/05 245 384 8.750%, 08/25/17 680 1,106 ------- 2,612 ------- Total Foreign Bonds (Cost $35,283) 36,323 ------- U. S. TREASURY OBLIGATIONS -- 4.5% U.S. Treasury Bills 5.750%, 03/23/95 $ 400 399 5.400%, 04/06/95 1,300 1,293 U.S. Treasury Note 7.750%, 01/31/00 20 21 5.875%, 02/15/04 140 128 10.375%, 11/15/12 20 25 7.500%, 11/15/24 35 35 ------- 1,901 ------- Total U. S. Treasury Obligations (Cost $1,896) 1,901 -------
SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- SEI International Trust -- February 28, 1995 INTERNATIONAL FIXED INCOME PORTFOLIO - --------------------------------------------------------------------------------
Face Amount Market Description (000)(1) Value (000) - ----------------------------------------------------------------------------- REPURCHASE AGREEMENT -- 4.7% Prudential Mortgage 6.01%, dated 2/28/95, matures 3/1/95, repurchase price $2,010,980 (collateralized by Federal National Mortgage Association, 9.00%, due 2/1/23, par value $12,485,623; market value $2,051,200) $ 2,011 $ 2,011 ------- Total Repurchase Agreement (Cost $2,011) 2,011 ------- FOREIGN CURRENCY OPTIONS -- 0.1% UNITED STATES -- 0.1% German Deutschmark Call 04/17/95 1,203 1 06/23/95 1,863 44 ------- 45 ------- Total Foreign Currency Options (Cost $28) 45 ------- Total Investments -- 94.6% (of net assets) (Cost $39,218) $40,280 =======
(1)In local currency The accompanying notes are an integral part of the financial statements. STATEMENT OF ASSETS AND LIABILITIES (000) - -------------------------------------------------------------------------------- February 28, 1995
-------- ------------ -------------- ------------- EUROPEAN PACIFIC EMERGING INTERNATIONAL EQUITY BASIN EQUITY MARKETS EQUITY FIXED INCOME -------- ------------ -------------- ------------- ASSETS: Investment securities (Cost $34,072, $35,553, $4,070, and $39,218, respectively) $34,197 $30,880 $4,124 $40,280 Cash and foreign currency 3,093 2,062 3,240 1,772 Dividends and interest receivable 102 15 -- 893 Investment securities sold 500 104 -- 3,541 Other assets 300 275 173 842 ------- ------- ------ ------- Total assets 38,192 33,336 7,537 47,328 ------- ------- ------ ------- LIABILITIES: Investment securities purchased 1,784 -- 2,227 4,582 Other liabilities 130 288 10 166 ------- ------- ------ ------- Total liabilities 1,914 288 2,237 4,748 ------- ------- ------ ------- NET ASSETS: Portfolio shares of Class A (unlimited authorization -- no par value) based on 3,662,624, 3,783,728, 516,020 and 4,086,471 respectively, outstanding shares of beneficial interest 36,439 37,766 5,240 41,893 Accumulated net realized loss on investments (165) (37) -- (927) Accumulated net realized gain (loss) on foreign currency transactions (98) 73 1 (374) Net unrealized appreciation (depreciation) on forward foreign currency contracts, foreign currencies and translation of other assets and liabilities denominated in foreign currencies (13) (81) (1) 472 Net unrealized appreciation (depreciation) on investments 125 (4,673) 54 1,062 Undistributed net investment income (loss) (10) -- 6 454 ------- ------- ------ ------- Net assets $36,278 $33,048 $5,300 $42,580 ======= ======= ====== ======= NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE -- CLASS A $ 9.90 $ 8.73 $10.27 $ 10.42 ======= ======= ====== =======
The accompanying notes are an integral part of the financial statements. STATEMENT OF OPERATIONS (000) - -------------------------------------------------------------------------------- For the period ended February 28, 1995
------------- --------- --------- --------- ------------- CORE PACIFIC EMERGING INTERNATIONAL EUROPEAN BASIN MARKETS INTERNATIONAL EQUITY EQUITY(1) EQUITY(2) EQUITY(3) FIXED INCOME ------------- --------- --------- --------- ------------- INVESTMENT INCOME: Dividends $ 11,275 $ 471 $ 136 -- -- Interest 1,985 80 59 $ 13 $1,946 Less: Foreign Taxes Withheld (1,483) (73) (17) -- -- -------- ----- ------- ---- ------ Total Investment Income 11,777 478 178 13 1,946 -------- ----- ------- ---- ------ EXPENSES: Management fees 2,729 164 159 2 206 Less management fees waived (77) (57) (76) (2) (84) Reimbursement by manager -- -- -- (9) -- Investment advisory fees 1,516 67 80 4 103 Less investment advisory fees waived -- -- -- -- (17) Custodian/wire agent fees 524 23 24 5 36 Professional fees 147 10 11 1 15 Registration & filing fees 11 15 15 2 10 Printing fees 142 9 9 -- 13 Trustee fees 25 1 1 -- 2 Pricing fees 39 8 10 1 8 Distribution fees 562 22 21 1 40 Amortization of deferred organization costs 8 5 5 -- 9 Miscellaneous fees 14 -- -- 2 2 -------- ----- ------- ---- ------ Total Expenses 5,640 267 259 7 343 -------- ----- ------- ---- ------ NET INVESTMENT INCOME (LOSS) 6,137 211 (81) 6 1,603 -------- ----- ------- ---- ------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS: Net realized gain (loss) from security transactions 36,204 (165) (37) -- (927) Net realized gain (loss) on forward foreign currency contracts and foreign currency transactions (25,138) (154) (74) 1 670 Net change in unrealized appreciation (depreciation) on forward foreign currency contracts, foreign currencies and translation of other assets and liabilities denominated in foreign currencies 10,819 (13) (81) (1) 313 Net change in unrealized appreciation (depreciation) on investments (58,990) 125 (4,673) 54 1,420 -------- ----- ------- ---- ------ NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $(30,968) $ 4 $(4,946) $ 60 $3,079 ======== ===== ======= ==== ======
(1) European Equity commenced operations on April 29, 1994. (2) 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. STATEMENT OF CHANGES IN NET ASSETS (000) - -------------------------------------------------------------------------------- For the periods ended February 28
-------------------- --------- --------- --------- ----------------- CORE PACIFIC EMERGING INTERNATIONAL INTERNATIONAL EUROPEAN BASIN MARKETS FIXED EQUITY EQUITY(1) EQUITY(2) EQUITY(3) INCOME(4) -------------------- --------- --------- --------- ----------------- 1995 1994 1995 1995 1995 1995 1994 -------------------- --------- --------- --------- ----------------- OPERATIONS: Net investment income (loss) $ 6,137 $ 5,010 $ 211 $ (81) $ 6 $ 1,603 $ 270 Net realized gain (loss) from security transactions 36,204 8,679 (165) (37) -- (927) 67 Net realized gain (loss) on forward foreign currency contracts and foreign currency transactions (25,138) 1,305 (154) (74) 1 670 32 Net change in unrealized appreciation (depreciation) on forward foreign currency contracts, foreign currencies and translation of other assets and liabilities denominated in foreign currencies 10,819 (13,616) (13) (81) (1) 313 159 Net change in unrealized appreciation (depreciation) on investments (58,990) 64,790 125 (4,673) 54 1,420 (357) --------- --------- ------- ------- ------ -------- ------- Net increase (decrease) in net assets from operations (30,968) 66,168 4 (4,946) 60 3,079 171 --------- --------- ------- ------- ------ -------- ------- DIVIDENDS DISTRIBUTED FROM: Net investment income: Class A -- (4,197) (165) -- -- (2,335) (161) ProVantage Funds -- -- -- -- -- -- -- Net realized gains: Class A (23,038) -- -- -- -- (67) -- ProVantage Funds (2) -- -- -- -- -- -- --------- --------- ------- ------- ------ -------- ------- Total dividends distributed (23,040) (4,197) (165) -- -- (2,402) (161) --------- --------- ------- ------- ------ -------- ------- CAPITAL SHARE TRANSACTIONS (1): Class A: Proceeds from shares issued 340,533 386,567 41,513 49,353 5,264 36,006 25,391 Shares issued in lieu of cash distributions 14,427 2,264 144 -- -- 1,486 99 Cost of shares repurchased (475,951) (125,591) (5,218) (11,359) (24) (19,267) (1,822) --------- --------- ------- ------- ------ -------- ------- Increase (decrease) in net assets derived from Class A (120,991) 263,240 36,439 37,994 5,240 18,225 23,668 --------- --------- ------- ------- ------ -------- ------- ProVantage Funds: Proceeds from shares issued 53 -- -- -- -- -- -- Shares issued in lieu of cash distributions 2 -- -- -- -- -- -- Cost of shares repurchased -- -- -- -- -- -- -- --------- --------- ------- ------- ------ -------- ------- Increase in net assets derived from ProVantage Funds 55 -- -- -- -- -- -- --------- --------- ------- ------- ------ -------- ------- INCREASE (DECREASE) IN NET ASSETS DERIVED FROM CAPITAL SHARE TRANSACTIONS (120,936) 263,240 36,439 37,994 5,240 18,225 23,668 --------- --------- ------- ------- ------ -------- ------- Net increase (decrease) in net assets (174,944) 325,211 36,278 33,048 5,300 18,902 23,678 NET ASSETS: Beginning of period 503,498 178,287 -- -- -- 23,678 -- --------- --------- ------- ------- ------ -------- ------- End of period $ 328,554 $ 503,498 $36,278 $33,048 $5,300 $ 42,580 $23,678 ========= ========= ======= ======= ====== ======== ======= (1) CAPITAL SHARE TRANSACTIONS: Class A: Shares issued 32,225 37,661 4,171 5,018 518 3,504 2,483 Shares issued in lieu of cash distributions 1,437 219 15 -- -- 150 10 Shares repurchased (45,194) (12,060) (523) (1,234) (2) (1,882) (178) --------- --------- ------- ------- ------ -------- ------- Total Class A transactions (11,532) 25,820 3,663 3,784 516 1,772 2,315 --------- --------- ------- ------- ------ -------- ------- ProVantage Funds: Shares issued 5 -- -- -- -- -- -- Shares issued in lieu of cash distributions -- -- -- -- -- -- -- Shares repurchased -- -- -- -- -- -- -- --------- --------- ------- ------- ------ -------- ------- Total ProVantage Funds transactions 5 -- -- -- -- -- -- --------- --------- ------- ------- ------ -------- ------- Net increase (decrease) in capital shares (11,527) 25,820 3,663 3,784 516 1,772 2,315 ========= ========= ======= ======= ====== ======== =======
(1) European Equity commenced operations on April 29, 1994. (2) Pacific Basin Equity commenced operations on April 29, 1994. (3) Emerging Markets Equity commenced operations on January 17, 1995. (4) International Fixed Income commenced operations on September 1, 1993. The accompanying notes are an integral part of the financial statements. FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- For the period ended February 28, 1995 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) - ---------------------------------------------------------------------------------------------------------------------------- CORE INTERNATIONAL EQUITY PORTFOLIO ----------------------------------- CLASS A 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) 9.56 0.36 35,829 PROVANTAGE FUNDS 1995(1) $10.81 $ 0.01 $(0.67) -- $(0.59) -- $ 9.56 (6.33)% $ 51 EUROPEAN EQUITY PORTFOLIO ------------------------- CLASS A 1995(2) $10.00 $ 0.06 $(0.11) $(0.05) -- -- $ 9.90 (0.40)% $ 36,278 PACIFIC BASIN EQUITY PORTFOLIO ------------------------------ CLASS A 1995(3) $10.00 $(0.02) $(1.25) -- -- -- $ 8.73 (12.70)% $ 33,048 EMERGING MARKETS EQUITY PORTFOLIO --------------------------------- CLASS A 1995(4) $10.00 $ 0.01 $ 0.26 -- -- -- $10.27 2.70% $ 5,300 INTERNATIONAL FIXED INCOME PORTFOLIO ------------------------------------ CLASS A 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 - ---------------------------------------------------------------------------------------------------------------------------- CORE INTERNATIONAL EQUITY PORTFOLIO ----------------------------------- CLASS A 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 PROVANTAGE FUNDS 1995(1) 1.47% 0.42% 1.48% 0.41% 64% EUROPEAN EQUITY PORTFOLIO ------------------------- CLASS A 1995(2) 1.30% 1.02% 1.57% 0.75% 29% PACIFIC BASIN EQUITY PORTFOLIO ------------------------------ CLASS A 1995(3) 1.30% (0.41)% 1.68% (0.79)% 9% EMERGING MARKETS EQUITY PORTFOLIO --------------------------------- CLASS A 1995(4) 1.95% 1.79% 4.98% (1.24)% -- INTERNATIONAL FIXED INCOME PORTFOLIO ------------------------------------ CLASS A 1995 1.00% 4.68% 1.30% 4.38% 303% 1994(5) 1.00 3.81 1.61 3.20 126
(1) Core International Equity ProVantage Funds 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. NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- February 28, 1995 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. 2. SIGNIFICANT ACCOUNTING POLICIES The Trust is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company with five portfolios: the Core In- ternational Equity Portfolio (formerly the 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 is registered to offer Class A shares for all portfolios and ProVantage Funds shares of the Core International Equity Portfo- lio. The following is a summary of significant accounting policies followed by the Portfolios. Security Valuation--Securities listed on a securities exchange for which mar- ket quotations are readily available are valued 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. Short-term investments may be valued at amortized cost which approxi- mates 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 accompanying financial statements. 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 agree- ments are held by the custodian bank until maturity of the repurchase agree- ments. Provisions of the repurchase agreements and procedures adopted by the Trust require that the market value of the collateral, including accrued inter- est 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 seg- regated 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. 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 transac- tions. 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. The Portfolios report gains and losses on foreign currency related transac- tions as realized and unrealized gains and losses for financial reporting pur- poses, 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 re- alize gains or losses at the time for- NOTES TO FINANCIAL STATEMENTS (Continued) - -------------------------------------------------------------------------------- February 28, 1995 ward contracts are extinguished. Unrealized gains or losses on outstanding po- sitions in forward foreign currency contracts held at the close of the year will be 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 market 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 put option, it realizes a gain or loss from the sale of the underlying investment and the proceeds from such sale will be de- creased by the premium originally paid. 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 clas- ses on the basis of relative daily net assets. Other--Security transactions are accounted for on the trade date of the secu- rity purchase or sale. Costs used in determining net realized capital gains and losses on the sale of investment securities are those of the specific securi- ties sold. Purchase discounts and premiums on securities held by the Portfolios are accreted and amortized to maturity using the scientific interest method, which approximates the effective interest method. Distributions from net in- vestment income and any net realized capital gains are generally made to Share- holders annually. Dividend income is recognized on the ex-dividend date and in- terest income is recognized using the accrual method. The amounts of the distributions from net investment income and net realized capital gains are determined in accordance with Federal income tax regulations, which may differ from those amounts determined under generally accepted ac- counting principles. The 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 the difference arises. During the fiscal year ended February 28, 1995 the following amounts relating to permanent differences attributable to cumulative net operating losses and differences in the characterization of certain foreign currency realized and unrealized gains (losses) have been reclassified as follows:
CORE PACIFIC INTERNATIONAL BASIN EQUITY EQUITY (000) (000) ------------- ------- Paid-in Capital $(5,615) $(228) Accumulated net realized gain on investments (2,288) -- Accumulated net realized gain (loss) on foreign currency transactions 15,349 147 Undistributed net investment income (loss) (7,446) 81
These reclassifications have no effect on net assets or net asset values per share. 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 each Portfolio for an annual fee equal to .45% of the average daily net assets of the Core International Equity Portfolio, .60% of the average daily net assets of the International Fixed Income Portfolio, .80% of the average daily net assets of the European Equity and the Pacific Ba- sin Equity Portfolios and .65% of the average daily net assets of the Emerging Markets Equity Portfolio . The Manager has agreed to waive all or a portion of its fees in order to limit the operating expenses of the Portfolios to a speci- fied percentage of its average daily net assets as follows: - -------------------------------------------------------------------------------- Core International Equity Portfolio 1.25% European Equity Portfolio 1.30% Pacific Basin Equity Portfolio 1.30% Emerging Markets Equity Portfolio 1.95% International Fixed Income Portfolio 1.00%
In addition, the Trust and Manager have entered into a separate Transfer Agent Agreement with respect to the ProVantage Funds under which the Manager is entitled to a fee of .15% of the average daily net assets of the ProVantage Funds plus out-of-pocket costs. SEI Financial Management Corporation (SFM), the adviser for the Core Interna- tional Equity and the Emerging Markets Equity Portfolios, is a party to an in- vestment advisory agreement dated December 16, 1994. Under the Investment Advi- sory Agreement, SFM receives an annual fee of .475% of the average daily net assets of the Core International Equity Portfolio 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. and World Invest Limited serve as Sub-Advisers to the Core International Equity Portfolio and Montgomery Asset Management, L.P. serves as Sub-Adviser to the Emerging Markets Equity Portfolio. Morgan Grenfell Investment Services Limited, the advisor for the European Eq- uity Portfolio, is a party to an investment advisory agreement with the Trust dated April 25, 1994. Under the investment advisory agreement, Morgan Grenfell Investment Services Limited receives an annual fee of .325% of the average daily net assets of the Portfolio. Schroder Capital Management International Limited, the adviser for the Pa- cific Basin Equity Portfolio, is a party to an investment advisory agreement with the Trust dated April 25, 1994. Under the investment advisory agreement, Schroder Capital Management International Limited receives an annual fee of .40% of the average daily net assets of the Portfolio up to $100 million, .30% for the next $50 million in assets, and .20% of assets in excess of $150 mil- lion. Strategic Fixed Income, L.P., the adviser 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 its fee, in conjunction with the Manager, in order to limit the operating expenses of the Portfolio to not more than 1.00% of average daily net assets. 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 a distribution plan which provides for the Trust to reimburse the Distributor for distribution. Such expenses may not exceed .30% of the daily average net assets of each Portfolio. Distribution expenses include, among other items, the compensation and benefits of sales personnel incurred by the Distributor in connection with the promotion and sale of shares. Distribution expenses are allocated among the Portfolios on the basis of their relative average daily net assets. In addition, the Core International Equity Portfolio has registered an additional class of shares, the ProVantage Funds shares, for which a separate distribution plan has been adopted. This plan provides for additional payments to the Distributor of up to .30% of ProVantage Funds average daily net assets. Certain Officers and/or Trustees of the Trust are also officers and/or Direc- tors of the Manager. Compensation of officers and affiliated Trustees is paid by the Manager. 4. ORGANIZATIONAL COSTS Organizational costs have been capitalized by the Portfolios and are being am- ortized using the straight line method over sixty months commencing with opera- tions of the respective Portfolio. In the event any of the initial shares of the Portfolios acquired by the Manager are redeemed during the period that the Portfolios are amortizing their organizational costs, the redemption proceeds payable to the Manager by the Portfolios will be reduced by an amount equal to a pro rata portion of unamortized organizational costs. NOTES TO FINANCIAL STATEMENTS (Concluded) - -------------------------------------------------------------------------------- February 28, 1995 5. FORWARD FOREIGN CURRENCY CONTRACTS The Portfolios enter into forward foreign currency exchange contracts as hedges against portfolio positions. Such contracts, which 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 securi- ties. They simply establish an exchange rate at a future date. Also, although such contracts tend to minimize the 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 28, 1995:
IN UNREALIZED MATURITY CONTRACTS TO EXCHANGE APPRECIATION DATES DELIVER/RECEIVE FOR (DEPRECIATION) - ----------------- ----------------- ----------- -------------- CORE INTERNATIONAL EQUITY PORTFOLIO: - ------------------------------------ FOREIGN CURRENCY SALE: 04/20/95-05/15/95 JY 5,100,000,000 $52,101,331 $(1,081,262) =========== =========== EUROPEAN EQUITY PORTFOLIO: - -------------------------- FOREIGN CURRENCY SALE: 05/31/95 FF 15,100,000 $ 2,925,676 $ (16,144) =========== ----------- FOREIGN CURRENCY PURCHASES: 03/01/95 UK 41,312 $ 65,355 $ 22 03/02/95 SK 1,178,924 160,234 726 03/02/95 SP 6,267,783 48,853 276 ----------- ----------- $ 274,442 $ 1,024 =========== ----------- $ (15,120) =========== PACIFIC BASIN EQUITY PORTFOLIO: - ------------------------------- FOREIGN CURRENCY SALES: 03/02/95 AD 140,810 $ 103,805 $ (98) 06/19/95 JY 490,000,000 5,058,287 (81,248) ----------- ----------- $ 5,162,092 $ (81,346) =========== =========== EMERGING MARKETS EQUITY PORTFOLIO: - ---------------------------------- FOREIGN CURRENCY PURCHASES: 03/01/95 GD 10,820,835 $ 46,700 $ (99) 03/06/95-03/09/95 MR 425,258 166,723 (37) ----------- ----------- $ 213,423 $ (136) =========== ===========
IN UNREALIZED MATURITY CONTRACTS TO EXCHANGE APPRECIATION DATES DELIVER/RECEIVE FOR (DEPRECIATION) - ----------------- ----------------- ----------- -------------- SEI INTERNATIONAL FIXED INCOME PORTFOLIO: - ----------------------------------------- FOREIGN CURRENCY SALES: 03/01/95-06/22/95 UK 6,789,050 $10,607,691 $ (113,582) 03/24/95 NK 1,750,979 260,601 (11,119) 03/24/95 XE 2,612,071 3,164,524 (162,701) 03/24/95-05/24/95 AD 3,082,228 2,363,490 92,884 03/24/95-05/24/95 BF 54,377,595 1,724,324 (87,589) 03/24/95-06/22/95 CD 4,342,377 3,091,877 (17,064) 03/24/95-06/22/95 CH 9,286,428 7,284,469 (282,176) 03/24/95-06/22/95 DK 24,287,435 4,067,706 (125,046) 03/24/95-06/22/95 DM 27,340,943 17,762,745 (1,026,039) 03/24/95-06/22/95 FF 43,534,398 8,202,363 (279,944) 03/24/95-06/22/95 IT 8,856,438,040 5,403,326 121,646 03/24/95-06/22/95 JY 1,365,334,338 13,848,417 (374,925) 03/24/95-06/22/95 NG 3,415,114 2,003,430 (90,558) 03/24/95-06/22/95 NZ 3,897,356 2,463,113 9,128 03/24/95-06/22/95 SK 10,286,619 1,379,195 (18,912) 03/24/95-06/22/95 SP 513,363,079 3,865,044 (137,082) ----------- ----------- $87,492,315 $(2,503,079) =========== ----------- FOREIGN CURRENCY PURCHASES: 03/01/95-05/24/95 DK 20,440,272 $ 3,353,324 $ 174,717 03/02/95-06/22/95 DM 39,169,662 25,544,138 1,379,007 03/23/95-06/22/95 JY 1,604,667,710 16,314,309 412,282 03/24/95 BF 27,463,710 850,270 64,802 03/24/95 SK 8,243,792 1,088,701 35,341 03/24/95-06/22/95 IT 7,829,728,298 4,792,055 (124,155) 03/24/95-06/22/95 NG 3,355,870 1,921,027 135,012 03/24/95-06/22/95 XE 2,909,062 3,589,716 115,218 03/24/95-06/22/95 AD 2,970,091 2,229,202 (47,544) 03/24/95-06/22/95 CD 4,201,320 2,973,131 32,492 03/24/95-06/22/95 CH 9,269,875 7,088,375 442,480 03/24/95-06/22/95 FF 29,448,682 5,558,262 179,649 03/24/95-06/22/95 NZ 3,434,231 2,176,250 (12,480) 03/24/95-06/22/95 SP 498,746,118 3,747,948 140,481 03/24/95-06/22/95 UK 6,658,962 10,467,981 24,108 06/22/94 NK 2,726,600 419,929 4,106 ----------- ----------- $92,114,618 $ 2,955,516 =========== ----------- $ 452,437 ===========
CURRENCY LEGEND AD Australian Dollar BF Belgian Franc CD Canadian Dollar CH Swiss Franc DK Danish Kroner DM German Mark FF French Franc GD Greek Drachma IT Italian Lira JY Japanese Yen - -------------------------------------------------------------------------------- MR Malaysian Ringgitt NG Netherlands Guilder NK Norwegian Kroner NZ New Zealand Dollar SK Swedish Krona SP Spanish Peseta UK British Pounds Sterling XE European Currency Unit 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 28, 1995, were as follows:
PURCHASES SALES (000) (000) --------- -------- Core International Equity Portfolio $276,432 $373,505 European Equity Portfolio 40,928 6,690 Pacific Basin Equity Portfolio 37,650 2,061 Emerging Markets Equity Portfolio 4,070 -- International Fixed Income Portfolio 91,156 77,265
The International Fixed Income Portfolio purchased $4,097,993 and sold $2,288,382 in U.S. government securities during the period ended February 28, 1995. For Federal income tax purposes, the cost of securities owned at February 28, 1995 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 deprecia- tion at February 28, 1995 for each portfolio is as follows:
NET UNREALIZED APPRECIATED DEPRECIATED APPRECIATION/ SECURITIES SECURITIES (DEPRECIATION) (000) (000) (000) ------------ ----------- -------------- Core International Equity Portfolio $18,788 $16,959 $ 1,829 European Equity Portfolio 1,649 1,524 125 Pacific Basin Equity Portfolio 225 4,898 (4,673) Emerging Markets Equity Portfolio 126 72 54 International Fixed Income Portfolio 1,247 185 1,062
At February 28, 1995 the following Portfolios had available realized capital losses to offset future net capital gains through fiscal year 2003.
(000) ----- European Equity Portfolio $ 32 Pacific Basin Equity Portfolio 18 International Fixed Income Portfolio 795
NOTICE TO SHAREHOLDERS - -------------------------------------------------------------------------------- February 28, 1995 (Unaudited) For shareholders that do not have a February 28, 1995 taxable year end, this notice is for informational purposes only. For shareholders with a February 28, 1995 taxable year end, please consult your tax advisor as to the pertinence of this notice. For the fiscal year ended February 28, 1995 the Portfolios of the SEI Interna- tional 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) - --------- ------------- ------------- ------------- Core International Equity 100% 0% 100% European Equity 0% 100% 100% Pacific Basin Equity 0% 0% 0% Emerging Markets Equity 0% 0% 0% International Fixed Income 0% 100% 100% (C) (D) (E) QUALIFYING TAX-EXEMPT FOREIGN PORTFOLIO DIVIDENDS(1) INTEREST TAX CREDIT - --------- ------------- ------------- ------------- Core International Equity 0% 0% 0% European Equity 0% 0% 28% Pacific Basin Equity 0% 0% 0% Emerging Markets Equity 0% 0% 0% International Fixed Income 0% 0% 0%
(1) Qualifying dividends represent dividends which qualify for the corporate dividends received deduction. * Items (A) and (B) are based on the percentage of each fund's total distribu- tion. ** 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. Schedule of Investments SEI International Trust May 17, 1995
Unaudited Market Value EMERGING MARKETS EQUITY PORTFOLIO Shares (000) - ------------------------------------------------------------------------------ Foreign Common Stock (86.0%) - ------------------------------------------------------------------------------ Argentina (4.9%) Central Costanera ............................ 34,200 $ 105 IRSA GDR* .................................... 1,700 41 IRSA* ........................................ 29,700 72 Perez Companc ................................ 73,916 341 Total Argentina ........................................... 559 Brazil (2.5%) Aracruz Celulose ADR ......................... 10,100 114 Telebras ADR ................................. 4,700 169 Total Brazil .............................................. 283 Chile (2.0%) AFP Provida ADR* ............................. 2,100 51 Chilgener ADR ................................ 3,600 103 Madeco ADR ................................... 1,300 36 Vina Concha Y Toro ADR ....................... 2,000 41 Total Chile ............................................... 231 China (0.3%) Huaneng Power ADR* ........................... 2,000 36 Total China ............................................... 36 Columbia (1.5%) Banco de Columbia GDS ........................ 25,800 175 Total Columbia ............................................ 175 Greece (2.1%) Aegek ........................................ 2,800 61 Aluminum of Greece* .......................... 1,600 67 Ergo Bank .................................... 670 31 Hellenic Bottling ............................ 2,725 78 Total Greece .............................................. 237 Hong Kong (2.9%) CDL Hotels International ..................... 116,000 55 Guang Dong Investment ........................ 76,000 38 Guangzhou Investment ......................... 130,000 23 HSBC Holdings ................................ 2,500 31 Johnson Electric Holdings .................... 13,000 29 MC Packaging ................................. 70,000 28 Shangri-La Asia .............................. 26,000 30 Sinocan Holdings ............................. 110,000 27 Siu-Fung Ceramics ............................ 160,000 25 Tian An China ................................ 142,000 22 Yue Yuen Industrial Holdings ................. 104,000 25 Total Hong Kong ........................................... 333
Schedule of Investments SEI International Trust May 17, 1995
Unaudited Market Value EMERGING MARKETS EQUITY PORTFOLIO Shares (000) - ------------------------------------------------------------------------------ India (2.7%) India Fund .............................. 4,400 $ 52 India Growth Fund ....................... 6,300 121 India Investment Fund ................... 9,500 105 Indian Hotels GDR* ...................... 1,800 31 Total India ............................................... 309 Indonesia (4.8%) Asia Pacific Resource ADR* .............. 4,400 36 Astra "F" ............................... 48,500 85 Bank Bali "F" ........................... 14,500 29 Bank International Indonesia ............ 11,000 31 Dankos Labs "F" ......................... 9,000 42 Indo-Rama "F" ........................... 15,000 46 Indonesian Satellite ADR* ............... 1,900 73 Indorayon "F" ........................... 27,000 62 Semen Gresik "F" ........................ 17,000 84 Tjiwi Kimia ............................. 10,000 18 United Tractors "F" ..................... 23,000 43 Total Indonesia ........................................... 549 Israel (0.9%) ECI Telecommunications ADR .............. 5,800 99 Total Israel .............................................. 99 Korea (1.6%) Kepco ADR* .............................. 2,050 47 Korea Equity Fund ....................... 3,400 29 Korea Fund .............................. 2,400 53 Korea Investment Fund ................... 4,600 56 Total Korea ............................................... 185 Malaysia (26.7%) Arab Malaysian .......................... 53,000 180 Arab Malaysian Finance .................. 23,000 79 Arab Malaysian Merchant Bank ............ 39,000 466 DCB Holdings ............................ 67,000 191 Genting Berhad .......................... 15,000 158 Hong Leong Credit ....................... 45,000 204 IJM Corp Berhad ......................... 77,000 290 Industrial Oxygen ....................... 116,000 150 Kian Joo Can Factory .................... 33,000 119 Leader Universal Holdings ............... 79,000 294 Resorts World Berhad .................... 44,000 263 Tanjong ................................. 31,000 101 Telekom Malaysia ........................ 10,000 72 United Engineers ........................ 161,000 518 Total Malaysia ............................................ 3,085
Schedule of Investments SEI International Trust May 17, 1995
Unaudited Market Value EMERGING MARKETS EQUITY PORTFOLIO Shares (000) - ------------------------------------------------------------------------------ Mexico (4.9%) Penoles* ................................ 95,000 $ 264 Telefonos de Mexico ADR ................. 9,700 301 Total Mexico .............................................. 565 Peru (2.8%) Banco de Credito Del Peru* .............. 63,200 137 Southern Peru Copper* ................... 22,600 100 Telefonos Peru "A"* ..................... 52,500 80 Total Peru ................................................ 317 Philippines (5.3%) Aboitiz Equity Ventures* ................ 315,600 63 Ayala "B" ............................... 24,800 38 Bacnotan Cement* ........................ 86,800 110 Benpres Holdings GDS* ................... 5,900 46 Keppel Phil "B" ......................... 87,000 46 La Tondena Distillers ................... 46,000 60 Manila Mining "B" ....................... 13,900,000 54 Petron .................................. 42,000 33 Philippine Long Distance ................ 620 44 Philippine Long Distance ADR ............ 1,650 115 Total Philippines ......................................... 609 Portugal (1.6%) Capital Portugal* ....................... 540 48 Cimpor Rights* .......................... 2,000 6 Empresa Fabril* ......................... 3,900 47 Sonae Investimentos ..................... 1,900 46 Soporcel* ............................... 1,550 43 Total Portugal ............................................ 190 Singapore (1.0%) United Overseas Bank .................... 10,800 110 Total Singapore ........................................... 110 South Africa (8.2%) Anglo American .......................... 3,580 197 Barlow .................................. 7,100 74 Iscor ................................... 121,800 153 Liberty Life ............................ 5,500 152 South African Breweries ................. 5,500 160 Standard Bank ........................... 5,570 211 Total South Africa ........................................ 947 South Korea (0.4%) Pohang Iron & Steel ADR ................. 1,600 48 Total South Korea ......................................... 48
Schedule of Investments SEI International Trust May 17, 1995
Unaudited Market Value EMERGING MARKETS EQUITY PORTFOLIO Shares (000) - ------------------------------------------------------------------------------ Taiwan (1.0%) Taiwan Equity Fund ...................... 5,200 $ 60 Taiwan(ROC)Fund* ........................ 5,100 58 Total Taiwan .............................................. 118 Thailand (3.9%) Ban Pu Coal ............................. 2,400 51 Bangkok Bank "F" ........................ 5,100 56 Electricity Generating* ................. 25,700 74 Land and House "F" ...................... 2,100 40 Regional Container "F" .................. 2,000 32 Siam Cement "F" ......................... 1,100 68 Thai Farmers Bank "F" ................... 8,100 74 United Communications ................... 1,900 28 Wongpaitoon Footwear "F"* ............... 17,000 27 Total Thailand ............................................ 450 Turkey (2.7%) Cimentas* ............................... 32,000 25 Ege Biracilik ........................... 63,000 70 KOC Holdings ............................ 40,000 35 Tat Konserve ............................ 48,600 94 Tofas-Turk Otomobil ..................... 100,600 83 Total Turkey .............................................. 307 Venezuela (1.3%) Quimica Y Minera ADR .................... 1,000 40 Sivensa ADR ............................. 71,100 112 Total Venezuela ........................................... 152 - ------------------------------------------------------------------------------ Total Foreign Common Stock (Cost $9,185[000]) ..................................... 9,894 - ------------------------------------------------------------------------------ Foreign Preferred Stocks (9.2%) - ------------------------------------------------------------------------------ Brazil (9.2%) Cie Vale Do Rio Doce .................... 844,000 155 Cimento Itau* ........................... 170,000 60 Copene Petroquimica Nord "A" ............ 44,000 36 Coteminas ............................... 140,000 48 Eletrobras "B" .......................... 915,000 279 Gradiente Electronics "A" ............... 207,000 28 Lojas Renner ............................ 2,100,000 38 Petrobras ............................... 1,150,000 114 Petrobras Distribuidora ................. 1,530,000 57 Randon Participacoes .................... 23,000,000 34 Sadia Concordia* ........................ 40,000 43
Schedule of Investments SEI International Trust May 17, 1995
Unaudited Market Value EMERGING MARKETS EQUITY PORTFOLIO Shares (000) - ------------------------------------------------------------------------------ Usiminas Gerais ......................... 137,000,000 $ 173 Total Brazil .............................................. 1,065 - ------------------------------------------------------------------------------ Total Foreign Preferred Stocks (Cost $935[000]) ....................................... 1,065 - ------------------------------------------------------------------------------ Face Market Amount Value (000) (000) - ------------------------------------------------------------------------------ Convertible Bonds (0.9%) - ------------------------------------------------------------------------------ South Africa (0.6%) Barlow 7.000%, 09/20/04 .................... $ 65 78 Total South Africa ........................................ 78 Thailand (0.3%) Bangkok Bank 3.250%, 03/03/04 .................... 30 30 Total Thailand ............................................ 30 - ------------------------------------------------------------------------------ Total Convertible Bonds (Cost $105[000]) ....................................... 108 - ------------------------------------------------------------------------------ Repurchase Agreement (14.0%) - ------------------------------------------------------------------------------ State Street Bank 5.00%, dated 5/17/95, matures 5/18/95, repurchase price $1,618,000 (collateralized by U.S. Treasury Note, par value $1,570,000, 9.25%, matures 1/15/96: market value $1,648,000) ..... 1,618 1,618 - ------------------------------------------------------------------------------ Total Repurchase Agreement (Cost $1,618[000]) ..................................... 1,618 - ------------------------------------------------------------------------------ Total Investments (110.1% of Net Assets) (Cost $11,843[000]) .................................... $ 12,685 - ------------------------------------------------------------------------------
* Non-income producing security ADR - American Depository Receipt GDR - Global Depository Receipt GDS - Global Depository Share Schedule of Investements SEI International Trust May 17, 1995
Unaudited Face Market Amount Value EMERGING MARKETS EQUITY PORTFOLIO (000) (000) - --------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. Emerging Markets Equity Portfolio SEI International Trust Statement of Assets and Liabilities (000) Unaudited May 17, 1995 Assets: Investments securities (Cost $11,843) $ 12,685 Investment securities sold 543 Capital shares sold 211 Other assets 22 ------------- Total Assets 13,461 ------------- Liabilities: Investment securities purchased 1,911 Other liabilities 31 ------------- Total Liabilities 1,942 ------------- Net Assets $ 11,519 ============= Net Assets: Portfolio shares of Class A (unlimited authorization - no par value) based on 1,036,755 outstanding shares of beneficial interest 10,593 Accumulated net realized gain on investments 90 Accumulated net realized loss on foreign currency transactions (28) Net unrealized depreciation on forward foreign currency contracts, foreign currencies and translation of other assets and liabilities denominated in foreign currencies (2) Net unrealized appreciation on investments 842 Undistributed net investment income 24 ------------- Net Assets $ 11,519 ============= Net asset value, offering and redemption price per share - Class A $ 11.11 =============
The accompanying notes are an integral part of the financial statements. Emerging Markets Equity Portfolio SEI International Trust Statement of Operations (000) Unaudited
January 17, 1995* Through May 17, 1995 ---------------- Investment Income: Dividends $ 27 Interest 41 Less: Foreign taxes withheld (4) ---------------- Total Investment Income 64 ---------------- Expenses: Management Fees 13 Less management fees waived (13) Reimbursement by manager (15) Investment advisory fees 22 Custodian / wire agent fee 18 Professional fees 1 Registration & filing fees 4 Pricing fees 5 Distribution fees 3 Miscellaneous fees 2 ---------------- Total Expenses 40 ---------------- Net Investment Income 24 ---------------- Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions: Net realized gain from security transactions 90 Net realized loss on forward foreign currency contracts and foreign currency transactions (28) Net change in unrealized depreciation on forward foreign currency contracts, foreign currencies and translation of other assets and liabilities denominated in foreign currencies (2) Net change in unrealized appreciation on investments 842 ---------------- Net Increase in Net Assets from Operations $ 926 ================
* Commencement of operations The accompanying notes are an integral part of the financial statements. Emerging Markets Equity Portfolio SEI International Trust Statement of Changes in Net Assets (000) Unaudited
January 17, 1995* Through May 17, 1995 ----------------- Operations: Net investment income $ 24 Net realized gain from security transactions 90 Net realized loss on forward foreign currency contracts and foreign currency transactions (28) Net change in unrealized depreciation on forward foreign currency contracts, foreign currencies and translation of other assets and liabilities denominated in foreign currencies (2) Net change in unrealized appreciation on investments 842 --------- Net increase in net assets from operations 926 --------- Capital Shares Transactions: Class A: Proceeds from shares issued 10,777 Shares issued in lieu of cash distributions - Cost of shares repurchased (184) --------- Increase in Net Assets Derived from Capital Share Transactions 10,593 --------- Total increase in net assets 11,519 Net Assets: Beginning of period - --------- End of period $ 11,519 ========= Capital Share Transactions: Class A: Shares issued 1,054 Shares issued in lieu of cash distributions - Shares repurchased (17) --------- Net increase in capital shares 1,037 =========
* Commencement of operations The accompanying notes are an integral part of the financial statements. Emerging Markets Equity Portfolio SEI International Trust Financial Highlights Unaudited For the period January 17, 1995 through May 17, 1995
For a Share Outstanding Throughout each Period Net Asset Distributions Distributions Value Net Net Realized from Net from Net Asset Beginning Investment and Unrealized Investment Realized Capital Value End Total of Period Income Gain Income Gains of Period Return - ----------------------------------------------------------------------------------------------------------------------------- Emerging Markets Equity Portfolio - --------------------------------- Class A 1995* $10.00 $0.02 $1.09 - - $11.11 11.10% Ratio of Ratio of Net Investment Ratio of Expenses Income(Loss) Ratio of Net Investment to Average to Average Net Assets Expenses Income Net Assets Net Assets Portfolio End of to Average to Average (Excluding (Excluding Turnover Period(000) Net Assets Net Assets Waivers) Waivers) Rate - ---------------------------------------------------------------------------------------------------------------- Emerging Markets Equity Portfolio - --------------------------------- Class A 1995* $ 11,519 1.95% 1.17% 3.30% (0.18)% 60%
* Shares were offered beginning January 17, 1995. All ratios for that period have been annualized. The accompanying notes are an integral part of the financial statements. Emerging Markets Equity Portfolio SEI International Trust Notes to Financial Statements Unaudited May 17, 1995 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. 2. Significant Accounting Policies: The Trust is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company with five portfolios: the Core International Equity Portfolio (formerly the 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"). These financial statements relate to the Emerging Markets Equity Portfolio (the "Portfolio") which commenced operations on January 17, 1995. The following is a summary of significant accounting policies followed by the Portfolio. 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. Short-term investments may be valued at amortized cost which approximates market value. Net Asset Value Per Share - The net asset value per share of the 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 Portfolio may also invest in tri-party repurchase agreements. Securities held as collateral for tri-party repurchase agreements are maintained in a segregate 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 Portfolio are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars on the following basis: (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 Portfolio does 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 equity securities. The Portfolio reports 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. Emerging Markets Equity Portfolio SEI International Trust Notes to Financial Statements (Continued) Unaudited May 17, 1995 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. Distributions from net investment income and any net realized capital gains are generally made to Shareholders annually. Dividend income is recognized on the ex-dividend date and interest income is recognized using the accrual method. Federal Income Taxes - It is the intention of the Portfolio to qualify as a regulated investment company for Federal income tax purposes and to distribute all of its taxable income and net capital gains. Accordingly, no provision for Federal income taxes is required in the accompanying statements. 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 .65% of the daily net assets of the Portfolio. The manager has agreed to waive all or a portion of its fees in order to limit the operating expenses of the Portfolio to 1.95% of its average daily net assets. SEI Financial Management Corporation (SFM), the advisor for the Portfolio, is a party to an investment advisory agreement dated December 16, 1994. Under the Investment Advisory Agreement, SFM receives an annual fee of 1.05% of the daily net assets of the Portfolio. Pursuant to a Sub-Advisory Agreement with SFM, Montgomery Asset Management, L.P. serves as Sub-Advisor to the Portfolio. SEI Financial Service Company (the "Distributor"), a wholly owned subsidiary of the SEI Corporation and a registered broker-dealer, acts as the distributor of the shares of the Trust under a distribution plan which provides for the Trust to reimburse the Distributor for distributions. Such expenses may not exceed .30% of the daily average net assets of the Portfolio. Distribution expenses include, among other items, the compensation and benefits of sales personnel incurred by the Distributor in connection with the promotion and sale of shares. Distribution expenses are allocated among the Portfolios on the basis of their relative average daily net assets. 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. Organization Costs: Organizational costs have been capitalized by the Portfolio and are being amortized using the straight line method over sixty months commencing with 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. Emerging Markets Equity Portfolio SEI International Trust Notes to Financial Statements (Concluded) Unaudited May 17, 1995 5. 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 May 17, 1995, were as follows:
Purchases Sales (000) (000) ----- ----- Emerging Markets Equity Portfolio $ 13,612 $ 3,478
For Federal income tax purposes, the cost of securities owned at May 17, 1995 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 May 17, 1995 for the Portfolio is as follows:
Net Appreciated Depreciated Unrealized Securities Securities Appreciation (000) (000) (000) ---------- ----------- ------------ Emerging Markets Equity Portfolio $ 917 $( 75) $ 842
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