ITEM 77E: Legal Proceedings
A lawsuit entitled Steven Curd and Rebel Curd v. SEI
Investments Management Corporation was initially
filed against SIMC in the U.S. District Court for
the Eastern District of Pennsylvania (the Court) on
December 11, 2013. On August 28, 2014, the Court
granted SIMCs motion to dismiss the initial
complaint in the lawsuit, but also granted
plaintiffs leave to amend the complaint. On October
2, 2014, plaintiffs filed an amended complaint. In
the amended complaint, SEI Investments Global Funds
Services (SGFS) was added as a defendant. On July
13, 2015, the Court denied SIMCs motion to dismiss
the amended complaint, and granted the motion to
dismiss with respect to SGFS. On September 18, 2015,
a second amended complaint was filed that seeks to
remedy a technical deficiency in the amended
complaint.
The plaintiffs bring the case as a shareholder
derivative action against SIMC and SGFS on behalf of
certain SEI funds. The claims were based on Section
36(b) of the Investment Company Act of 1940, as
amended, which allows shareholders of a mutual fund
to sue the investment adviser of the fund or its
affiliates for an alleged breach of fiduciary duty
with respect to compensation received by the adviser
or its affiliates. The plaintiffs bring the suit
against SIMC and SGFS with respect to five specific
SEI Funds: the International Equity Fund, which is a
series of the SEI Institutional International Trust,
the High Yield Bond, Tax-Managed Large Cap, and Tax-
Managed Small/Mid Cap Funds, each of which is a
series of this Trust, and the Intermediate-Term
Municipal Fund, which is a series of the SEI Tax
Exempt Trust. The plaintiffs seek: (1) damages for
the funds in the amount of the alleged excessive
fees earned by SIMC and SGFS beginning from the one
year period prior to the filing of the lawsuit, plus
interest, costs, and fees; (2) orders declaring that
SIMC and SGFS allegedly violated Section 36(b) and
enjoining SIMC and SGFS from further alleged
violations; and (3) rescission of SIMCs and SGFSs
contracts with the funds, and restitution of all
allegedly excessive fees paid beginning from the one
year period prior to the filing of the lawsuit, plus
interest, costs, and fees. SIMC continues to dispute
the claims, and intends to continue to vigorously
defend the matter.