-----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, JpNiXYsXvTccnlgFFZHW9z5XVUQM0zuwXADdBQRPydqLNgq0CLl9XSqYYXAwZdVv kXo4r3+ODhpisYSckeGDqw== 0000950109-95-001415.txt : 19950427 0000950109-95-001415.hdr.sgml : 19950427 ACCESSION NUMBER: 0000950109-95-001415 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19950228 FILED AS OF DATE: 19950426 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: SEI INTERNATIONAL TRUST CENTRAL INDEX KEY: 0000835597 STANDARD INDUSTRIAL CLASSIFICATION: [] STATE OF INCORPORATION: MA FISCAL YEAR END: 0228 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-05601 FILM NUMBER: 95531466 BUSINESS ADDRESS: STREET 1: 2 OLIVER ST CITY: BOSTON STATE: MA ZIP: 02109 BUSINESS PHONE: 8003425734 MAIL ADDRESS: STREET 1: SEI INTERNATIONAL TRUST STREET 2: 680 E SWEDESFORD RD CITY: WAYNE STATE: PA ZIP: 19087 FORMER COMPANY: FORMER CONFORMED NAME: SEI WEALTH MANAGEMENT TRUST DATE OF NAME CHANGE: 19900129 N-30D 1 FORM N-30D LETTER TO SHAREHOLDERS - -------------------------------------------------------------------------------- TO OUR SHAREHOLDERS: The fiscal year ended February 28, 1995 provided classic examples of both the risks and the potential rewards of international investing. For instance, one of the primary risks of international investing is that of economic and/or political instability--a risk that was illustrated well in De- cember of 1994 by the unexpected devaluation of the Mexican peso. In addition, January's Kobe earthquake and the collapse of Barings Plc in February were two other catastrophes that negatively influenced international investing. These events and their aftermaths demonstrate the importance of maintaining a true global strategy, with investments diversified among many nations. This includes investment in developed economies, where both the governments and the economies are more stable. This is evident in our Core International Equity, Pacific Ba- sin Equity, and European Equity Portfolios that emphasize investment in devel- oped economies and have no exposure to the Mexican stock market. Fortunately, the Mexican crisis and other global difficulties were mitigated somewhat by one of the potential rewards of international investing, which is the ability to benefit from favorable currency fluctuations. As the dollar posted new lows against the German mark and the Japanese yen, weaknesses in lo- cal terms were balanced by gains in dollar terms. For instance, while German government bonds returned only 2.40% locally, their U.S. dollar return was 19.36%, Japanese bonds were also lackluster on a local basis with a return of 3.39%, but delivered a 11.35% gain to U.S. dollar investors. Looking forward, we believe that despite their inherent risk, the global mar- kets offer tremendous opportunities for long-term investors, and add an impor- tant measure of diversification to any domestic portfolio. Therefore, we con- tinue to approach these markets using prudent investment strategies that empha- size value and seek to minimize undue risk. We look forward to putting these strategies to work for you in the months and years ahead. Sincerely, /s/ David G. Lee David G. Lee President and Chief Executive Officer TABLE OF CONTENTS - -------------------------------------------------------------------------------- REVIEW OF NON-U.S. EQUITY MARKETS........................................... 1 REVIEW OF NON-U.S. BOND MARKETS............................................. 3 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FUND PERFORMANCE CORE INTERNATIONAL EQUITY................................................. 4 EUROPEAN EQUITY .......................................................... 5 PACIFIC BASIN EQUITY...................................................... 7 INTERNATIONAL FIXED INCOME ............................................... 9 STATEMENT OF NET ASSETS/SCHEDULE OF INVESTMENTS............................. 11 STATEMENT OF ASSETS AND LIABILITIES ........................................ 21 STATEMENT OF OPERATIONS .................................................... 22 STATEMENT OF CHANGES IN NET ASSETS ......................................... 23 FINANCIAL HIGHLIGHTS ....................................................... 24 NOTES TO FINANCIAL STATEMENTS .............................................. 25 REPORT OF INDEPENDENT ACCOUNTANTS .......................................... 30 NOTICE TO SHAREHOLDERS...................................................... 31
REVIEW OF NON-U.S. EQUITY MARKETS - -------------------------------------------------------------------------------- SEI International Trust -- February 28, 1995 Global equity markets fought a losing battle with rising interest rates and in- vestor uncertainty for most of the past twelve months and posted generally poor results in local currency terms. For the fiscal year ended February 28, 1995, the Morgan Stanley Capital International Europe, Australia, Far East Index (EAFE) fell by 13.4% in local currency terms. Persistent dollar weakness against the Japanese yen and major European currencies, however, stemmed this loss to only 4.5% in U.S. dollar terms. As measured by the IFC Investable Com- posite Index, developing markets were hit even harder, falling by 14.5% as in- vestors reconsidered the potential risk of these markets in the wake of the Mexican peso devaluation. During the Trust's fiscal year, preemptive credit tightening and a series of spectacular events have caused investors to dramatically reassess the valua- tions of equities, thus affecting returns. Moves by the U.S. Federal Reserve Board (the "Fed") to tighten interest rates in February and March of 1994 caused most non-U.S. markets to sell off. The smaller Asian markets were par- ticularly hard hit due in part to their ties to U.S. interest rates or their proximity to emerging markets. Fears of liquidity rationing caused many invest- ors to retreat from emerging markets. European markets eased slightly, but re- turns were buoyed by dollar weakness. In contrast, the Japanese market posted gains in local currency terms as investors took advantage of earlier sell-offs to bargain hunt and increasing evidence of an economic recovery. Further Fed hikes and dollar weakness continued to dominate non-U.S. markets through the spring and into the summer. In early fall, however, the markets be- gan to respond to local influences. Positive corporate announcements in Europe bolstered markets in the region, although currency gains persisted as major components of returns for U.S. investors. Many Japanese stocks began to give back earlier gains as investors questioned the pace of economic recovery. The late fall and winter months brought heightened volatility to interna- tional markets. A short-lived dollar rally was consumed by the Mexican peso crisis, and investors sought the perceived relative safety of the German mark and Japanese yen. The decision by the Mexican government shortly before Christ- mas to allow the peso to freely float raised concerns about the financial sta- bility and commitment to economic reform of other developing markets. Global interest rate hikes gave investors further reasons to abandon the prospective growth of emerging markets for the safety of developed markets. As the fiscal year ended, the Pacific Rim hosted a series of events that lit- erally and figuratively shook the financial markets. Although short-lived and of limited economic influence, January's Kobe earthquake and February's col- lapse of Barings Plc gave investors further reasons to avoid equities. 1 REVIEW OF NON-U.S. EQUITY MARKETS - -------------------------------------------------------------------------------- SEI International Trust -- February 28, 1995 (BAR GRAPH APPEARS HERE) Bar graphs depicting the returns of World Equity Markets, Select European Equity Markets and Pacific Basin Equity Markets in U.S. dollars for the period March 1, 1994 to February 28, 1995. 2 REVIEW OF NON-U.S. BOND MARKETS - -------------------------------------------------------------------------------- SEI International Trust -- February 28, 1995 Interest rates around the world rose dramatically over the twelve month pe- riod ending February 28, 1995. The Federal Reserve Board's rate increases, which began in the first quarter of 1994, put the world markets on alert for signs of inflation. Further U.S. rate increases and signs of recovery in the U.S., Europe and Japan gave birth to forecasts of a global recovery and rising price levels as the year continued. The strengthening world economy benefited the higher-yielding government bond markets during the first half of the year. Italy, France, Sweden, and Spain outperformed Germany and Japan as investors believed that the improving economy would heal the fiscal, political, and employment problems that plagued these markets. But as the summer came to a close, the higher-yielding markets began to suffer from a variety of domestic crises. In Italy, the government of Prime Minister Silvio Berlusconi failed a confidence vote and was replaced by an in- terim government headed by Lamberto Dini. The fate of the government's pension reforms, the key component of Italy's massive deficit, became unclear and Ital- ian bond yields rose while the lira fell to record lows against other curren- cies. In Spain, the government of Prime Minister Gonzalez lost its political strength after accusations of involvement in death squads surfaced. And in France, the elections scheduled for May 1995 became the primary focus of the bond and currency markets. Jacques Delors, the market's favorite candidate, did not enter the presidential race and the outlook for improved fiscal restraint and deficit reduction bleakened. With a focus on quality and safety, investors turned to the core markets of Germany, the Netherlands, and Belgium in the latter half of the year. The U.S. dollar depreciated against other currencies throughout the year, dropping pre- cipitously after Mexico's decision to devalue the peso. Dollar depreciation served to improve the lackluster bond market returns throughout the world. For example, according to the Salomon Non-U.S. World Government Bond Unhedged In- dex, the local market return of German government bonds of 2.40% was boosted to 19.36% when measured in U.S. dollar terms. Similarly, Japanese bonds returned 3.39% in local currency terms and 11.35% when measured in U.S. dollar terms. [GRAPH APPEARS HERE] A line graph depicting the Comparative Yields to maturity of 10-Year Government Bonds in the U.S., Japan, U.K. and Germany for the period February 1994 to February 1995. 3 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FUND PERFORMANCE - -------------------------------------------------------------------------------- SEI International Trust -- February 28, 1995 CORE INTERNATIONAL EQUITY PORTFOLIO OBJECTIVE. The Core International Equity Portfolio seeks to provide capital appreciation through investments in equity securities of non-U.S. issuers. The Portfolio also seeks to provide U.S. investors with a vehicle for international diversification which can reduce the variability of portfolio returns to the extent that foreign markets have a relatively low correlation with the U.S. market STRATEGY. On November 7, 1994, the Portfolio was restructured to incorporate a multi-manager strategy. Acadian Asset Management, Inc. and WorldInvest Lim- ited replaced Brinson Partners, Inc. as sub-advisers to the Portfolio. Acadian follows a quantitatively based country allocation process with stock selection focusing on large cap, value securities. Country deviation from the benchmark and overall positioning of the Portfolio are tightly risk-controlled. Active currency management is minimal. WorldInvest uses a "top-down" approach to in- vesting that can result in measured deviations away from the benchmark. Secu- rity selection focuses on value criteria. Currency management is most typically demonstrated at the country allocation level. The result of these investment styles is a Portfolio characterized by large capitalization, value-oriented se- curities with lower price-to-earnings and market-to-book ratios and above-aver- age dividend yields. ANALYSIS. The total return of the Core International Equity Portfolio was - 7.67% for the fiscal year ended February 28, 1995 . By comparison, the Morgan Stanley Europe, Australia, Far East Index (EAFE) returned -4.5%. - -------------------------------------------------------------------------------- CORE INTERNATIONAL EQUITY - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN/1/ - --------------------------------------------------------------------------------
One Inception Year Five-Year to Date - -------------------------------------------------------------------------------- Core International Equity, Class A -7.67% 2.99% 2.13% - -------------------------------------------------------------------------------- Core International Equity, ProVantage w/o Load -7.95% 2.93% 2.08% - -------------------------------------------------------------------------------- Core International Equity, ProVantage w/Load -12.56% 1.95% 1.18% - --------------------------------------------------------------------------------
A line graph depicting the total growth (including reinvestment of dividends and capital gains) of a hypothetical investment of $10,000 in SEI Core International Equity Portfolio Class A and ProVantage Funds Class shares from December 31, 1989 through February 28, 1995 as compared with the growth of a $10,000 investment in the Morgan Stanley EAFE Index. The plot points used to draw the line graph were as follows: [GRAPH APPEARS HERE] COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN THE CORE INTERNATIONAL EQUITY PORTFOLIO, CLASS A, VERSUS THE CORE INTERNATIONAL EQUITY PORTFOLIO, PROVANTAGE AND THE MORGAN STANLEY EAFE INDEX
GROWTH OF GROWTH OF $10,000 GROWTH OF $10,000 INVESTED $10,000 INVESTED IN INVESTED IN IN PROVANTAGE THE MORGAN Measurement period CLASS A FUNDS CLASS STANLEY EAFE (Fiscal Year Covered) SHARES SHARES Index - --------------------- --------- ----------- ------------ 12/31/89 $10,000 $ 9,500 $10,000 2/28/90 $ 9,573 $ 9,094 $ 8,957 2/28/91 $ 9,607 $ 9,127 $ 8,751 2/29/92 $ 9,451 $ 8,978 $ 8,101 2/28/93 $ 9,656 $ 9,173 $ 7,766 2/28/94 $12,016 $11,415 $10,809 2/28/95 $11,094 $10,507 $10,329
/1/For the periods ended February 28, 1995. Past performance is no indication of future performance. ProVantage Funds Class opened on May 1, 1994. The performance shown for the ProVantage Funds Class prior to such date is based on the performance of Class A Shares adjusted to reflect the maximum sales charge of 5.0% for the ProVantage Funds Class. Class A Shares were offered beginning December 30, 1989. As noted in the Review of Non-U.S. Equity Markets, dollar-based international investors benefited greatly from currency movements over the past year. In lo- cal currency terms, the EAFE markets returned -13.4% as rising global interest rates caused investors to reassess company valuations. However, persistent dol- lar weakness, particularly against the Japanese yen and German mark, enhanced returns for U.S. investors. Within regions, European markets as measured by the MSCI Europe Index, fared slightly better than Pacific 4 - ------------------------------------------------------------------------------- CORE INTERNATIONAL EQUITY (continued) [GRAPH APPEARS HERE] A line graph depicting currency values in U.S. dollars versus major world currencies (Japanese yen, British pound, and the German mark) for the period February 1994 to February 1995. markets as measured by the MSCI Pacific Index, falling by 9.7% versus a slide of 16.6%. The Portfolio's underperformance relative to the EAFE is chiefly attribut- able to currency hedging activities. Until the November restructuring, the Portfolio utilized foreign currency hedges that reduced its exposure to the Japanese yen and the German mark. Exposure to the U.S. and Canadian dollars was generally above 50%. An overweight to banking stocks which reacted poorly to rising interest rates also hampered results. An underweighting to Japanese stocks proved favorable. However, a mix within Japan that emphasized exporters in anticipation of a fall in the yen's value undermined the favorable country allocation. Underweightings to smaller markets in Asia (Hong Kong, Malaysia and Singapore) that were maintained by the previous adviser to the Portfolio generally proved beneficial. Since the restructuring, the Portfolio has moved in line with the perfor- mance of EAFE. Over the last three months of the fiscal year (roughly corre- lating with the adviser change on November 7), the Portfolio has slipped by 3.75% while EAFE has fallen by 3.5%. Significant changes in the Portfolio's structure accompanying the adviser change included a sharp reduction in dollar exposure and an expansion of holdings in smaller European and Pacific markets. As of the end of the fiscal year, the yen hedge was approximately 10% (versus 20% to 25% previously) and overall Japanese holdings were reduced re- flecting the uncertain shape of the local recovery. Canadian dollar exposure also was reduced in line with security holdings. Little other currency hedging activity was taking place or contemplated at the present. PORTFOLIO MARKET ALLOCATIONS VERSUS MSCI EAFE INDEX
FEBRUARY 28, 1995 FEBRUARY 28, 1994 ------------------- ------------------- PORTFOLIO EAFE PORTFOLIO EAFE ------------------- ------------------- Australia 7.0% 4.8% 6.5% 2.7% Belgium 2.9% 0.8% 2.4% 1.1% Canada 2.6% 1.1% 3.1% 0.0% France 10.4% 7.8% 6.9% 6.1% Germany 4.1% 6.9% 2.8% 5.9% Hong Kong 2.6% 4.2% 1.6% 4.0% Italy 2.8% 2.3% 1.7% 2.1% Japan 30.7% 32.1% 33.2% 44.1% Netherlands 3.7% 6.0% 5.1% 3.1% New Zealand 3.0% 0.8% 1.6% 0.4% Spain 2.5% 2.7% 2.8% 1.9% Sweden 1.0% 2.4% 0.0% 1.5% Switzerland 2.5% 4.4% 3.1% 4.6% United Kingdom 17.5% 14.9% 17.8% 16.5% All Other 5.1% 8.4% 0.0% 6.0% Cash 1.6% 0.0% 11.5% 0.0%
Numbers may not add up to 100% due to rounding. EUROPEAN EQUITY PORTFOLIO OBJECTIVE. The European Equity Portfolio seeks to provide long-term capital appreciation by investing primarily in a diversified portfolio of equity secu- rities of issuers located in Europe. 5 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FUND PERFORMANCE - -------------------------------------------------------------------------------- SEI International Trust -- February 28, 1995 EUROPEAN EQUITY (continued) STRATEGY. The adviser utilizes a "bottom-up", stock driven approach to manag- ing the Portfolio. A country overlay is placed upon the firm's fundamental stock research to derive the final portfolio construction which is typically invested in 90 growth stocks across 12 markets. Additionally, the Portfolio will have a medium to small capitalization bias. The European Equity Portfolio will invest primarily in equity securities of issuers located in any of the following countries: United Kingdom, Germany, France, Austria, Belgium, Den- mark, Finland, Italy, Ireland, the Netherlands, Norway, Spain, Sweden, and Switzerland. ANALYSIS. Since its inception on April 29, 1994, the total return of the Eu- ropean Equity Portfolio was -0.40% versus a gain of 1.17% in the benchmark MSCI Europe Index. As noted in the Review of Non-U.S. Equity Markets, European stocks were hampered by rising global interest rates and concerns about the pace of economic expansion. Most markets posted losses in local currency terms over the past 12 months. A persistently weak dollar, however, enhanced returns for U.S.-based investors. The Portfolio's underperformance is principally due to a bias toward economi- cally sensitive stocks coupled with a representation in smaller and medium- sized companies. Fears of an aborted economic recovery caused investors to fa- vor more defensive stocks during the past ten months at the expense of economi- cally-sensitive companies. Rising interest rates depressed the shares of smaller companies which typically sell at premium multiples to their promising earnings growth rates. In addition, cash flow effects associated with the mar- keting of the Portfolio created a drag on Portfolio results. The Portfolio's country allocations generally contributed favorably to per- formance. Overall, European markets as measured by the MSCI Europe Index fell by 6.39% in local currency terms for the ten months ending February 28, 1995. Underweightings to markets undergoing political upheaval such as France and It- aly proved positive. From April 1994 to February 1995, French stocks slumped by 16.03% in local currency terms as measured by the MSCI France Index, while Italian shares plummeted by 18.39% in local currency terms as - -------------------------------------------------------------------------------- EUROPEAN EQUITY - -------------------------------------------------------------------------------- AVERAGE ANNUAL RETURN - --------------------------------------------------------------------------------
One Three Inception Month Month to Date - -------------------------------------------------------------------------------- European Equity, Class A 2.27% 1.63% -0.48% - --------------------------------------------------------------------------------
A line graph depicting the total growth (including reinvestment of dividends and capital gains) of a hypothetical investment of $10,000 in SEI European Equity Portfolio Class A shares from April 30, 1994 through February 28, 1995 as compared with the growth of a $10,000 investment on the MSCI Europe Index. The plot points used to draw the line graph were as follows: [GRAPH APPEARS HERE] COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN THE EUROPEAN EQUITY PORTFOLIO, CLASS A, VERSUS THE MSCI EUROPE INDEX
GROWTH OF GROWTH OF $10,000 $10,000 INVESTED INVESTED Measurement period IN CLASS IN THE MSCI (Fiscal Year Covered) A SHARES EUROPE INDEX - --------------------- -------- ------------ 4/30/94 $10,000 $10,000 2/28/95 $ 9,959 $10,125
/1/For the period ended February 28, 1995. Past performance is no indication of future performance. Class A Shares were offered beginning April 29, 1994. 6 - -------------------------------------------------------------------------------- EUROPEAN EQUITY (continued) measured by the MSCI Italy Index. An overweight to Swedish stocks, which was gradually increased during the past ten months, also enhanced returns as re- flected by the MSCI Sweden Index's return of 2.59%. Swedish stocks were favored for their economically-sensitive profile and in acknowledgment of their more attractive valuations relative to German and Dutch industrials. Despite the Portfolio's favorable country allocations, poor stock selection and an unfavorable currency mix hampered results. The Portfolio's UK stocks in particular, hurt results. During the fourth calendar quarter, the Portfolio's smaller capitalization German stocks (such as software producer SAP) corrected sharply to a third quarter rally and exerted a negative impact on Portfolio performance. Currency allocation, which was in line with country allocations, also hindered results. In particular, the Portfolio's underweight to the Ger- man, Dutch and Swiss stocks imposed an underweighting to the mark, guilder and Swiss franc. For the ten months ended February 28, these "deutschemark bloc" currencies were among Europe's strongest performers versus the dollar--gaining more than 13%. Looking ahead, the Portfolio will maintain its commitment to economically- sensitive shares as the European economy continues to expand toward peak pro- duction. With U.S. interest rates appearing to have plateaued and political un- certainty in selected markets moving toward resolution, investors should begin to refocus on fundamentals, which have been quietly upbeat for the past several months. PORTFOLIO MARKET ALLOCATIONS VERSUS MSCI EAFE INDEX
FEBRUARY 28, 1995 FEBRUARY 28, 1994 ------------------- -------------------- PORTFOLIO EAFE PORTFOLIO EAFE ------------------- ----------- -------- Austria 0.0% 0.9% -- -- Belgium 1.3% 2.4% -- -- Denmark 1.1% 1.7% Finland 1.2% 1.2% France 9.8% 12.4% -- -- Germany 9.5% 15.0% -- -- Ireland 0.0% 0.6% Italy 2.7% 4.9% -- -- Netherlands 5.4% 8.2% -- -- Norway 1.8% 0.9% -- -- Spain 6.6% 3.5% -- -- Sweden 9.7% 3.7% -- -- Switzerland 7.2% 10.6% -- -- United Kingdom 35.5% 33.9% -- -- All Other 0.0% 0.0% -- -- Cash 8.3% 0.0% -- --
Fund was not open as of February 28, 1994 Numbers may not add up to 100% due to rounding. PACIFIC BASIN EQUITY PORTFOLIO OBJECTIVE. The Pacific Basin Equity Portfolio seeks to provide long-term cap- ital appreciation by investing primarily in a diversified portfolio of equity securities of issuers located in Japan and other markets in the Far East. STRATEGY. The adviser adopts a combined "top-down", "bottom-up" approach to managing the Pacific Basin Equity Portfolio. The Portfolio is typically in- vested in 12 markets and in 80 to 100 stocks. Further diversification is pro- vided by investment in a wide range of capitalization stocks. The Pacific Basin Equity Portfolio will invest primarily in equity securities of issuers located in any of the following countries: Japan, Hong Kong, Singapore, Malaysia, Aus- tralia, New Zealand and South Korea. 7 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FUND PERFORMANCE - -------------------------------------------------------------------------------- SEI International Trust -- February 28, 1995 PACIFIC BASIN EQUITY (continued) ANALYSIS. Launched on April 29, 1994, the total return of the Pacific Basin Equity Portfolio was -12.7% since its inception. The Portfolio has failed to beat its benchmark, the Morgan Stanley Capital International (MSCI) Pacific In- dex, which had a total return of -8.62% over the same time period. The primary reasons for the Portfolio's underperformance were an overexposure to South Ko- rea coupled with poor stock selection within Japan. Partially offsetting these influences were an overweight to Hong Kong securities, and an underweighted po- sition in Japanese stocks overall. The Portfolio was unable to invest in South Korean securities until October pending approval of local regulators. Shortly thereafter, on November 11, the Korean market hit its 1994 high and began a 15.69% slide (which lasted through the end of February) in response to the Korean central bank's adoption of strict monetary controls to reduce inflation. This tight monetary policy spurred local interest rates to their highest point in nearly three years, sending the equity market spiraling downward as investors sold off equities to invest in more attractive fixed income investments. Within Japan, the Portfolio emphasized consumer goods on the hopes of an eco- nomic recovery and exporters' anticipation of a fall in the value of the yen. Sluggish growth that has dominated Japan for the past year and a persistently strong yen undermined this strategy. Holdings in Japan were further hampered by a confluence of specific and unrelated events during January leading to an underperformance of 3% versus the benchmark. On January 17, the region of Osa- ka, centered around the city of Kobe was hit by a devastating earthquake. - -------------------------------------------------------------------------------- PACIFIC BASIN EQUITY - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN/1/ - --------------------------------------------------------------------------------
One Three Inception Month Month to Date - -------------------------------------------------------------------------------- Pacific Basin Equity, Class A -1.02% -9.81% -15.00% - --------------------------------------------------------------------------------
A line graph depicting the total growth (including reinvestment of dividends and capital gains) of a hypothetical investment of $10,000 in SEI Pacific Basin Equity Portfolio Class A shares from April 30, 1994 through February 28, 1995 as compared with the growth of a $10,000 investment in the MSCI Pacific Index. The plot points used to draw the line graph were as follows: [GRAPH APPEARS HERE] COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN THE PACIFIC BASIN EQUITY PORTFOLIO, CLASS A VERSUS THE MSCI PACIFIC INDEX
GROWTH OF A GROWTH OF A $10,000 $10,000 INVESTMENT IN Measurement period INVESTMENT IN THE MSCI (Fiscal Year Covered) CLASS A SHARES PACIFIC INDEX - --------------------- -------------- ------------- 4/30/94 $10,000 $10,000 2/28/95 $ 8,730 $ 9,134
/1/For the period ended February 28, 1995. Past performance is no indication of future performance. Class A Shares were offered beginning April 29, 1994. Over the next few weeks, construction issues were bid up on the assumption of increased earnings through the rebuilding of the Osaka region. The Portfolio was underweighted to these issues as, absent the earthquake, fundamentals did not warrant investment. In addition, the region is a hub for overseas shipping which adversely affected the Portfolio given its bias toward exporters. Sepa- rately, during the last week of January, Sumitomo Bank announced that it would report a net loss for the first time since World War II. On the announcement, the banking sector rose just over ten percent on speculation that the rest of the banking sector would begin to finally write off bad loans acquired during the bubble economy 8 - -------------------------------------------------------------------------------- PACIFIC BASIN EQUITY (continued) years and reinvigorate the waning Japanese banking market. Banking related is- sues represent 30% of the Japanese market and, again reflecting an assessment of weak fundamentals, the Portfolio was significantly underweighted in this ar- ea. This underweight to banks helped as banking issues were steadily sold off all year as rising global interest rates were thought to hurt margins and loan volume. Overall investments in Japan were off 12.86% since the Portfolio's in- ception. As of February 28, 1995, the Portfolio is approximately 10% underweighted to Japan. The Portfolio's Hong Kong exposure, which has been maintained at nearly twice the benchmark exposure, enhanced performance for the fiscal year. The Hang Seng Index was down 5.36% from the Portfolio's inception through February 28, 1995. The Portfolio's Hong Kong representation is highly concentrated in Hang Seng securities, which is dominated by property stocks. These property stocks were sold off all year as local property prices went into a free fall, losing about 40% of its value from its peak at the beginning of 1994. PORTFOLIO MARKET ALLOCATIONS VERSUS MSCI EAFE INDEX
FEBRUARY 28, 1995 FEBRUARY 28, 1994 ------------------- -------------------- PORTFOLIO EAFE PORTFOLIO EAFE ------------------- ----------- -------- Australia 4.7% 5.1% -- -- Hong Kong 10.1% 5.9% -- -- Japan 62.0% 81.4% -- -- Malaysia 3.9% 4.6% -- -- New Zealand 1.7% 0.8% -- -- Singapore 4.1% 2.3% South Korea 7.2% 0.0% All Other 0.0% 0.0% -- -- Cash 6.3% 0.0% -- --
Fund was not open as of February 28, 1994 Numbers may not add up to 100% due to rounding. INTERNATIONAL FIXED INCOME PORTFOLIO OBJECTIVES. The International Fixed Income Portfolio seeks to provide capital appreciation and current income through investments in fixed income securities of non-U.S. issuers. The Portfolio also seeks to provide U.S.-based investors with a vehicle to diversify and enhance the returns of the domestic fixed in- come portion of their portfolios. The Portfolio invests primarily in high-qual- ity, non-U.S. dollar denominated government and corporate debt obligations. There are no restrictions on the Portfolio's average maturity, although the du- ration is expected to range between one and nine years. STRATEGY. Portfolio construction entails a two-stage process which combines fundamental macroeconomic analysis and technical price analysis. First, a fun- damental judgment is made about the direction of a market's interest rates and its currency. A technical price overlay is then applied to the fundamental po- sition to ensure that the Portfolio is not substantially overweighted in a de- clining market or underweighted in a rising one. Country and currency allocations are made separately. As a result, the Port- folio's currency exposure may differ from its underlying bond holdings. Invest- ments will generally be diversified across 6 to 12 countries with continual ex- posure to the three major trading blocs: North America, Europe, and the Pacific Basin. Depending upon the relative fundamental and technical views, each trad- ing bloc is over or underweighted relative to the Portfolio's benchmark index. Currency exposure is actively managed to maximize return through the use of forward currency contracts and cross-currency hedging techniques. 9 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FUND PERFORMANCE - -------------------------------------------------------------------------------- SEI International Trust -- February 28, 1995 INTERNATIONAL FIXED INCOME (continued) - -------------------------------------------------------------------------------- INTERNATIONAL FIXED INCOME - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN/1/ - --------------------------------------------------------------------------------
Inception One to Year Date - -------------------------------------------------------------------------------- International Fixed Income, Class A 8.43% 7.81% - --------------------------------------------------------------------------------
A line graph depicting the total growth (including reinvestment of dividends and capital gains) of a hypothetical investment of $10,000 in SEI International Fixed Income Portfolio Class A shares from September 30, 1993 through February 28, 1995 as compared with the growth of a $10,000 investment in the Salomon Non-U.S. World Government Bond Unhedged Index. The plot points used to draw the line graph were as follows: [GRAPH APPEARS HERE] COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN THE INTERNATIONAL FIXED INCOME PORTFOLIO, CLASS A VERSUS THE SALOMON NON-U.S. WORLD GOVERNMENT BOND UNHEDGED INDEX
GROWTH OF A $10,000 INVESTMENT IN THE SALOMON GROWTH OF A NON-U.S. WORLD $10,000 GOVERNMENT Measurement period INVESTMENT IN BOND (Fiscal Year Covered) CLASS A SHARES UNHEDGED INDEX - --------------------- -------------- -------------- 9/30/93 $10,000 $10,000 2/28/94 $10,087 $10,089 2/28/95 $10,937 $11,156
/1/For the period ended February 28, 1995. Past performance is no indication of future performance. Class A Shares were offered beginning September 1, 1993. ANALYSIS: The International Fixed Income Portfolio posted a total return of 8.43% for the year ended February 28, 1995. By comparison, the Salomon Brothers Non-U.S. World Government Bond Index (Unhedged) returned 10.58% during the same time period. As noted in the Review of Non-U.S. Bond Markets, the higher-yielding markets of Europe were among the best performing markets during the first half of the fiscal year. The stability of foreign exchange rates coupled with improving economic conditions provided a lift to those countries struggling with budget deficits. Italian, French and Swedish bonds outperformed the core markets of Germany and the Netherlands, which were overweighted in the Portfolio, and per- formance lagged the index as a result. The Portfolio also suffered from its long duration stance versus the bench- mark index. Duration ranged between 120% and 140% of the index during early 1994, and as rising interest rates spread from the U.S. to Europe and Japan, the Portfolio suffered more price depreciation than the index. Portfolio dura- tion was pared back through the summer to approximately 90% of the index which allowed the Portfolio to recover some of its losses. Towards the end of 1994 and into 1995, the Portfolio's strategy of emphasiz- ing the core markets of Europe began to generate increasing returns. The deval- uation of the Mexican peso and the political problems of Italy, Spain and France drove investors to the deutschemark. The Italian lira and French franc touched lows against the deutschemark in early 1995. This benefited performance and the Portfolio recouped much of its underperformance from the first half of the fiscal year. MARKET ALLOCATIONS AND PORTFOLIO DURATION VERSUS THE SALOMON NON-U.S. WORLD GOVERNMENT BOND INDEX
MARKET WEIGHTING DURATION ---------------- --------------- PORTFOLIO INDEX PORTFOLIO INDEX --------- ------ --------- ----- Japan 30.99% 31.42% 6.52 5.54 Germany 36.86% 16.62% 5.60 4.53 Italy 3.22% 10.15% 3.12 3.21 France 3.80% 9.71% 4.21 5.31 United Kingdom 8.72% 8.44% 7.27 5.92 Netherlands 5.70% 4.88% 5.05 5.47 Canada 1.95% 4.18% 7.81 5.05 Belgium 0.87% 4.06% 4.65 4.70 Spain 0.96% 3.30% 5.75 3.51 Denmark 1.53% 2.18% 5.64 4.35 Sweden 0.27% 2.08% 4.60 4.24 Australia 1.17% 1.32% 4.60 4.48 Austria 0.00% 1.16% 0.00 4.60 Switzerland (0.08)% 0.00% 0.00 0.00 New Zealand 1.76% 0.00% 2.17 0.00 European Currency Unit 0.88% 0.00% 0.00 0.00 United States 1.40% 0.00% 0.21 0.00
10 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
11 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 --------
13 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
15 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 ------
17 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 -------
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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 -------
19 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. 20 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. 21 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. 22 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. 23 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. 24 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- 25 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: 26 - -------------------------------------------------------------------------------- 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. 27 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 28 - -------------------------------------------------------------------------------- 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
29 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 30 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. 31 - -------------------------- SEI INTERNATIONAL TRUST - -------------------------- ANNUAL REPORT - -------------------------- February 28, 1995 Robert A. Nesher Chairman TRUSTEES Edward W. Binshandler Richard F. Blanchard William M. Doran F. Wendell Gooch Frank E. Morris James M. Storey OFFICERS David G. Lee President and Chief Executive Officer Carmen V. Romeo Treasurer, Assistant Secretary Jeffrey A. Cohen Controller, Assistant Secretary Sandra K. Orlow Vice President, Assistant Secretary Kevin P. Robins Vice President, Assistant Secretary Robert B. Carroll Vice President, Assistant Secretary Kathryn L. Stanton Vice President, Assistant Secretary Richard W. Grant Secretary INVESTMENT ADVISORS Core International Equity Portfolio/Emerging Markets Equity Portfolio SEI Financial Management Corporation European Equity Portfolio Morgan Grenfell Investment Services Limited Pacific Basin Equity Portfolio Schroder Capital Management International Limited International Fixed Income Portfolio Strategic Fixed Income L.P. MANAGER AND SHAREHOLDER SERVICING AGENT SEI Financial Management Corporation DISTRIBUTOR SEI Financial Services Company LEGAL COUNSEL Morgan, Lewis & Bockius INDEPENDENT ACCOUNTANTS Price Waterhouse LLP This annual report and the financial statements contained herein are submitted for the general information of the shareholders of the Trust and must be preceded or accompanied by a current prospectus. Shares of the SEI Funds are not deposits or obligations of, or guaranteed or endorsed by, any bank. The shares are not federally insured by the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board, or any other government agency. Investment in the shares involves risk, including the possible loss of principal. SEI Financial Services Company, the Distributor of the SEI Funds, is not affiliated with any bank. For more information call 1.800.DIAL.SEI/1.800.342.5734 -----END PRIVACY-ENHANCED MESSAGE-----