SEMI-ANNUAL REPORT AS OF
SEPTEMBER 30, 1998 (UNAUDITED)
SEI ASSET
ALLOCATION TRUST
- ----------------------------------
Diversified Conservative Income
- ----------------------------------
Diversified Conservative
- ----------------------------------
Diversified Global Moderate Growth
- ----------------------------------
Diversified Moderate Growth
- ----------------------------------
Diversified Global Growth
- ----------------------------------
Diversified Global Stock
- ----------------------------------
Diversified U.S. Stock
- ----------------------------------
[LOGO OMITTED]
The art of people.
The science of results.
<PAGE>
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS................................................... 1
STATEMENT OF OPERATIONS................................................... 6
STATEMENT OF CHANGES IN NET ASSETS........................................ 8
FINANCIAL HIGHLIGHTS...................................................... 10
NOTES TO FINANCIAL STATEMENTS............................................. 12
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
SEI ASSET ALLOCATION TRUST -- SEPTEMBER 30, 1998 (UNAUDITED)
DIVERSIFIED CONSERVATIVE
INCOME FUND
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
EQUITY FUNDS -- 24.3%
SEI Institutional Managed Trust
Large Cap Growth Portfolio 109,565 $ 2,302
SEI Institutional Managed Trust
Large Cap Value Portfolio 133,068 2,303
SEI Institutional Managed Trust
Small Cap Growth Portfolio* 31,636 433
SEI Institutional Managed Trust
Small Cap Value Portfolio 32,352 442
-------
TOTAL EQUITY FUNDS
(Cost $5,977) 5,480
-------
FIXED INCOME FUND -- 55.2%
SEI Institutional Managed Trust
Core Fixed Income Portfolio 1,140,020 12,449
-------
TOTAL FIXED INCOME FUND
(Cost $12,017) 12,449
-------
MONEY MARKET FUND -- 20.0%
SEI Liquid Asset Trust Prime
Obligation Portfolio 4,501,927 4,502
-------
TOTAL MONEY MARKET FUND
(Cost $4,502) 4,502
-------
TOTAL INVESTMENTS -- 99.5%
(Cost $22,496) 22,431
-------
OTHER ASSETS AND LIABILITIES -- 0.5%
Other Assets and Liabilities, Net 119
-------
NET ASSETS:
Portfolio Shares of Class A
(unlimited authorization --
no par value) based on 1,521,207
outstanding shares of
beneficial interest 17,137
Portfolio Shares of Class D
(unlimited authorization --
no par value) based on
420,964 outstanding shares of
beneficial interest 4,693
Undistributed net investment income 253
Accumulated net realized gain
on investments 532
Net unrealized depreciation
on investments (65)
-------
TOTAL NET ASSETS -- 100.0% $22,550
=======
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- CLASS A $ 11.62
=======
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- CLASS D $ 11.56
=======
*NON-INCOME PRODUCING FUND
DIVERSIFIED CONSERVATIVE
INCOME FUND
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
EQUITY FUNDS -- 39.4%
SEI Institutional Managed Trust
Large Cap Growth Portfolio 233,726 $ 4,911
SEI Institutional Managed Trust
Large Cap Value Portfolio 281,880 4,879
SEI Institutional Managed Trust
Small Cap Growth Portfolio* 69,535 951
SEI Institutional Managed Trust
Small Cap Value Portfolio 69,031 944
SEI Institutional International
Trust International Equity
Portfolio 315,187 2,887
-------
TOTAL EQUITY FUNDS
(Cost $15,384) 14,572
-------
FIXED INCOME FUNDS -- 59.4%
SEI Institutional International
Trust International Fixed
Income Portfolio 461,992 5,493
SEI Institutional Managed Trust
Core Fixed Income Portfolio 1,510,085 16,490
-------
TOTAL FIXED INCOME FUNDS
(Cost $20,768) 21,983
-------
MONEY MARKET FUND -- 1.0%
SEI Liquid Asset Trust Prime
Obligation Portfolio 374,407 374
-------
TOTAL MONEY MARKET FUND
(Cost $374) 374
-------
TOTAL INVESTMENTS -- 99.8%
(Cost $36,526) 36,929
-------
OTHER ASSETS AND LIABILITIES -- 0.2%
Other Assets and Liabilities, Net 87
-------
NET ASSETS:
Portfolio Shares of Class A
(unlimited authorization --
no par value) based on
2,336,799 outstanding shares of
beneficial interest 24,393
Portfolio Shares of Class D
(unlimited authorization --
no par value) based on
1,002,342 outstanding shares of
beneficial interest 10,726
Undistributed net investment income 231
Accumulated net realized gain on investments 1,263
Net unrealized appreciation on investments 403
-------
TOTAL NET ASSETS -- 100.0% $37,016
=======
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- CLASS A $ 11.10
=======
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- CLASS D $ 11.06
=======
*NON-INCOME PRODUCING FUND
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
1
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
SEI ASSET ALLOCATION TRUST -- SEPTEMBER 30, 1998 (UNAUDITED)
DIVERSIFIED GLOBAL
MODERATE GROWTH FUND
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
EQUITY FUNDS -- 57.7%
SEI Institutional Managed Trust
Large Cap Growth Portfolio 210,435 $ 4,421
SEI Institutional Managed Trust
Large Cap Value Portfolio 254,996 4,414
SEI Institutional Managed Trust
Small Cap Growth Portfolio* 58,385 799
SEI Institutional Managed Trust
Small Cap Value Portfolio 59,239 810
SEI Institutional International
Trust International Equity
Portfolio 325,172 2,979
SEI Institutional International
Trust Emerging Markets
Equity Portfolio 237,993 1,473
-------
TOTAL EQUITY FUNDS
(Cost $16,907) 14,896
-------
FIXED INCOME FUNDS -- 41.2%
SEI Institutional Managed Trust
High Yield Bond Portfolio 92,198 997
SEI Institutional Managed Trust
Core Fixed Income Portfolio 629,522 6,874
SEI Institutional International
Trust Emerging Markets
Debt Portfolio 149,757 1,024
SEI Institutional International
Trust International Fixed
Income Portfolio 145,808 1,734
-------
TOTAL FIXED INCOME FUND
(Cost $10,654) 10,629
-------
MONEY MARKET FUND -- 1.0%
SEI Liquid Asset Trust Prime
Obligation Portfolio 271,477 271
-------
TOTAL MONEY MARKET FUND
(Cost $271) 271
-------
TOTAL INVESTMENTS -- 99.9%
(Cost $27,832) 25,796
-------
OTHER ASSETS AND LIABILITIES -- 0.1%
Other Assets and Liabilities, Net 30
-------
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares of Class A
(unlimited authorization --
no par value) based on
1,780,205 outstanding shares of
beneficial interest $21,062
Portfolio Shares of Class D
(unlimited authorization --
no par value) based on
530,109 outstanding shares of
beneficial interest 5,929
Undistributed net investment income 124
Accumulated net realized gain on investments 747
Net unrealized depreciation on investments (2,036)
-------
TOTAL NET ASSETS -- 100.0% $25,826
=======
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- CLASS A $ 11.20
=======
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- CLASS D $ 11.10
=======
*NON-INCOME PRODUCING FUND
DIVERSIFIED MODERATE
GROWTH FUND
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
EQUITY FUNDS -- 59.2%
SEI Institutional Managed Trust
Large Cap Growth Portfolio 838,051 $17,607
SEI Institutional Managed Trust
Large Cap Value Portfolio 1,011,267 17,505
SEI Institutional Managed Trust
Small Cap Growth Portfolio* 239,634 3,278
SEI Institutional Managed Trust
Small Cap Value Portfolio 240,402 3,286
SEI Institutional International
Trust International Equity
Portfolio 1,132,046 10,370
-------
TOTAL EQUITY FUNDS
(Cost $55,509) 52,046
-------
FIXED INCOME FUNDS -- 39.8%
SEI Institutional Managed Trust
Core Fixed Income Portfolio 2,392,567 26,127
SEI Institutional International
Trust International Fixed
Income Portfolio 739,148 8,788
-------
TOTAL FIXED INCOME FUNDS
(Cost $33,008) 34,915
-------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
2
<PAGE>
- --------------------------------------------------------------------------------
DIVERSIFIED MODERATE GROWTH FUND - CONTINUED
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
MONEY MARKET FUND -- 1.0%
SEI Liquid Asset Trust Prime
Obligation Portfolio 873,581 $ 874
-------
TOTAL MONEY MARKET FUND
(Cost $874) 874
-------
TOTAL INVESTMENTS -- 100.0%
(Cost $89,391) 87,835
-------
OTHER ASSETS AND LIABILITIES -- 0.0%
Other Assets and Liabilities, Net 32
-------
NET ASSETS:
Portfolio Shares of Class A
(unlimited authorization --
no par value) based on
5,296,329 outstanding shares of
beneficial interest 64,081
Portfolio Shares of Class D
(unlimited authorization --
no par value) based on
1,754,517 outstanding shares of
beneficial interest 21,104
Undistributed net investment income 385
Accumulated net realized gain on investments 3,853
Net unrealized depreciation on investments (1,556)
-------
TOTAL NET ASSETS -- 100.0% $87,867
=======
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- CLASS A $ 12.48
=======
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- CLASS D $ 12.41
=======
*NON-INCOME PRODUCING FUND
DIVERSIFIED GLOBAL
GROWTH FUND
EQUITY FUNDS -- 79.1%
SEI Institutional Managed Trust
Large Cap Growth Portfolio 897,307 $18,852
SEI Institutional Managed Trust
Large Cap Value Portfolio 1,095,064 18,956
SEI Institutional Managed Trust
Small Cap Growth Portfolio* 258,530 3,537
SEI Institutional Managed Trust
Small Cap Value Portfolio 258,368 3,532
SEI Institutional International
Trust International Equity
Portfolio 1,344,961 12,320
SEI Institutional International
Trust Emerging Markets
Equity Portfolio 1,043,610 6,460
-------
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
TOTAL EQUITY FUNDS
(Cost $69,421) $63,657
-------
FIXED INCOME FUNDS -- 19.9%
SEI Institutional Managed Trust
Core Fixed Income Portfolio 930,750 10,164
SEI Institutional Managed Trust
High Yield Bond Portfolio 148,222 1,602
SEI Institutional International
Trust Emerging Markets
Debt Portfolio 232,425 1,590
SEI Institutional International
Trust International Fixed
Income Portfolio 227,070 2,700
-------
TOTAL FIXED INCOME FUNDS
(Cost $16,017) 16,056
-------
MONEY MARKET FUND -- 1.1%
SEI Liquid Asset Trust Prime
Obligation Portfolio 897,497 897
-------
TOTAL MONEY MARKET FUND
(Cost $897) 897
-------
TOTAL INVESTMENTS -- 100.1%
(Cost $86,335) 80,610
-------
OTHER ASSETS AND LIABILITIES -- (0.1%)
Other Assets and Liabilities, Net (103)
-------
NET ASSETS:
Portfolio Shares of Class A
(unlimited authorization --
no par value) based on
5,649,606 outstanding shares of
beneficial interest 69,608
Portfolio Shares of Class D
(unlimited authorization --
no par value) based on
1,168,246 outstanding shares of
beneficial interest 12,932
Undistributed net investment income 253
Accumulated net realized gain on investments 3,439
Net unrealized depreciation on investments (5,725)
-------
TOTAL NET ASSETS -- 100.0% $80,507
=======
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- CLASS A $ 11.82
=======
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- CLASS D $ 11.76
=======
*NON-INCOME PRODUCING FUND
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
3
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
SEI ASSET ALLOCATION TRUST -- SEPTEMBER 30, 1998 (UNAUDITED)
DIVERSIFIED GLOBAL
STOCK FUND
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
EQUITY FUNDS -- 98.8%
SEI Institutional Managed Trust
Large Cap Growth Portfolio 424,807 $ 8,925
SEI Institutional Managed Trust
Large Cap Value Portfolio 517,097 8,951
SEI Institutional Managed Trust
Small Cap Growth Portfolio* 122,937 1,682
SEI Institutional Managed Trust
Small Cap Value Portfolio 124,875 1,707
SEI Institutional International
Trust International Equity
Portfolio 682,461 6,251
SEI Institutional International
Trust Emerging Markets
Equity Portfolio 503,674 3,118
-------
TOTAL EQUITY FUNDS
(Cost $35,025) 30,634
-------
MONEY MARKET FUND -- 1.1%
SEI Liquid Asset Trust Prime
Obligation Portfolio 335,054 335
-------
TOTAL MONEY MARKET FUND
(Cost $335) 335
-------
TOTAL INVESTMENTS -- 99.9%
(Cost $35,360) 30,969
-------
OTHER ASSETS AND LIABILITIES -- 0.1%
Other Assets and Liabilities, Net 47
-------
NET ASSETS:
Portfolio Shares of Class A
(unlimited authorization --
no par value) based on
2,308,484 outstanding shares of
beneficial interest 27,405
Portfolio Shares of Class D
(unlimited authorization --
no par value) based on
497,357 outstanding shares of
beneficial interest 6,348
Undistributed net investment income 30
Accumulated net realized gain on investments 1,624
Net unrealized depreciation on investments (4,391)
-------
TOTAL NET ASSETS -- 100.0% $31,016
=======
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- CLASS A $ 11.08
=======
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- CLASS D $ 10.93
=======
*NON-INCOME PRODUCING FUND
DIVERSIFIED U.S.
STOCK FUND
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
EQUITY FUNDS -- 99.4%
SEI Institutional Managed Trust
Large Cap Growth Portfolio 1,114,153 $23,408
SEI Institutional Managed Trust
Large Cap Value Portfolio 1,358,366 23,513
SEI Institutional Managed Trust
Small Cap Growth Portfolio* 327,047 4,474
SEI Institutional Managed Trust
Small Cap Value Portfolio 332,186 4,541
-------
TOTAL EQUITY FUNDS
(Cost $60,981) 55,936
-------
MONEY MARKET FUND -- 1.0%
SEI Liquid Asset Trust Prime
Obligation Portfolio 579,575 580
-------
TOTAL MONEY MARKET FUND
(Cost $580) 580
-------
TOTAL INVESTMENTS -- 100.4%
(Cost $61,561) 56,516
-------
OTHER ASSETS AND LIABILITIES -- (0.4%)
Other Assets and Liabilities, Net (215)
-------
NET ASSETS:
Portfolio Shares of Class A
(unlimited authorization --
no par value) based on
2,777,433 outstanding shares of
beneficial interest 39,858
Portfolio Shares of Class D
(unlimited authorization --
no par value) based on
1,282,393 outstanding shares of
beneficial interest 16,413
Undistributed net investment income 77
Accumulated net realized gain on investments 4,998
Net unrealized depreciation on investments (5,045)
-------
TOTAL NET ASSETS -- 100.0% $56,301
=======
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- CLASS A $ 13.94
=======
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- CLASS D $ 13.70
=======
*NON-INCOME PRODUCING FUND
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
4
<PAGE>
This Page Left Intentionally Blank
<PAGE>
STATEMENT OF OPERATIONS (000)
- --------------------------------------------------------------------------------
SEI ASSET ALLOCATION TRUST -- FOR THE SIX MONTH PERIOD ENDED
SEPTEMBER 30, 1998 (UNAUDITED)
<TABLE>
------------ ------------ -----------
<S> <C> <C> <C>
DIVERSIFIED DIVERSIFIED
CONSERVATIVE DIVERSIFIED GLOBAL
INCOME CONSERVATIVE MODERATE
FUND FUND GROWTH FUND
------------ ------------ -----------
INVESTMENT INCOME:
Income distributions from
underlying funds $ 463 $ 473 $ 259
------- ------ -------
EXPENSES:
Administration fees 22 34 24
Less administration fees waived (22) (34) (24)
Investment advisory fees 11 17 12
Less investment advisory fees waived (11) (17) (12)
Reimbursement by administrator (2) (5) (7)
Custodian fees 3 2 2
Transfer agent fees 2 1 2
Professional fees 2 4 3
Registration & filing fees 3 11 8
Printing fees 2 4 3
Trustee fees 1 2 1
Distribution & shareholder
servicing fees* 18 45 34
Amortization of deferred
organization costs 2 2 2
------- ------ -------
Total expenses after waivers
and reimbursements 31 66 48
------- ------ -------
NET INVESTMENT INCOME 432 407 211
------- ------ -------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS:
Capital gain distributions received
from investments -- -- --
Net realized gain from
security transactions 211 456 134
Net change in unrealized
depreciation on investments (586) (1,259) (2,994)
------- ------ -------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS $ 57 $ (396) $(2,649)
======= ====== =======
</TABLE>
*All distribution and shareholder servicing fees are incurred at the
Class D level.
Amounts designated as "--" are zero or have been rounded to zero.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
6
<PAGE>
<TABLE>
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
DIVERSIFIED DIVERSIFIED DIVERSIFIED
MODERATE GLOBAL GLOBAL DIVERSIFIED
GROWTH GROWTH STOCK U.S. STOCK
FUND FUND FUND FUND
----------- ----------- ----------- ------------
INVESTMENT INCOME:
Income distributions from
underlying funds $ 775 $ 541 $ 81 $ 204
------- -------- ------- -------
EXPENSES:
Administration fees 77 82 30 56
Less administration fees waived (77) (82) (30) (56)
Investment advisory fees 38 41 15 28
Less investment advisory fees waived (38) (41) (15) (28)
Reimbursement by administrator (50) (35) (29) (27)
Custodian fees 4 3 2 2
Transfer agent fees 19 11 17 15
Professional fees 13 14 3 8
Registration & filing fees 43 41 16 27
Printing fees 10 9 3 5
Trustee fees 4 4 3 2
Distribution & shareholder
servicing fees* 82 73 26 85
Amortization of deferred
organization costs 2 2 2 2
------- -------- ------- -------
Total expenses after waivers
and reimbursements 127 122 43 119
------- -------- ------- -------
NET INVESTMENT INCOME 648 419 38 85
------- -------- ------- -------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS:
Capital gain distributions received
from investments -- -- -- --
Net realized gain from 1,665 665 830 2,944
security transactions
Net change in unrealized (7,086) (12,853) (6,740) (12,111)
depreciation on investments ------- -------- ------- -------
NET INCREASE (DECREASE) IN NET ASSETS $(4,773) $(11,769) $(5,872) $(9,082)
FROM OPERATIONS ======= ======== ======= =======
</TABLE>
7
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (000)
- --------------------------------------------------------------------------------
SEI ASSET ALLOCATION TRUST -- FOR THE SIX MONTH PERIOD ENDED
SEPTEMBER 30, 1998 (UNAUDITED) AND FOR THE YEAR ENDED MARCH 31, 1998
<TABLE>
------------------ ------------------
<S> <C> <C>
DIVERSIFIED
CONSERVATIVE DIVERSIFIED
INCOME CONSERVATIVE
FUND FUND
------------------ ------------------
4/1/98- 4/1/97- 4/1/98- 4/1/97-
9/30/98 3/31/98 9/30/98 3/31/98
------- ------- ------- -------
OPERATIONS:
Net investment income $ 432 $ 400 $ 407 $ 554
Capital gain distributions received from investments -- 213 -- 630
Net realized gain from security transactions 211 358 456 313
Net change in unrealized appreciation (depreciation) on investments (586) 555 (1,259) 1,857
------- ------- ------- -------
Net increase (decrease) in net assets resulting from operations 57 1,526 (396) 3,354
------- ------- ------- -------
DISTRIBUTIONS FROM:
Net investment income:
Class A (282) (245) (274) (356)
Class D (37) (46) (50) (77)
Net realized gains:
Class A -- (260) -- (264)
Class D -- (64) -- (82)
------- ------- ------- -------
Total distributions (319) (615) (324) (779)
------- ------- ------- -------
CAPITAL SHARE TRANSACTIONS:
CLASS A:
Proceeds from shares issued 9,858 13,180 9,626 17,787
Reinvestment of distributions 211 369 215 496
Cost of shares redeemed (6,033) (3,370) (5,577) (4,157)
------- ------- ------- -------
Increase in net assets derived from Class A transactions 4,036 10,179 4,264 14,126
------- ------- ------- -------
CLASS D:
Proceeds from shares issued 2,846 3,994 6,926 5,038
Reinvestment of distributions 33 110 50 159
Cost of shares redeemed (565) (2,318) (1,471) (1,624)
------- ------- ------- -------
Increase (Decrease) in net assets derived from Class D transactions 2,314 1,786 5,505 3,573
------- ------- ------- -------
Increase in net assets derived from capital share transactions 6,350 11,965 9,769 17,699
------- ------- ------- -------
Net increase in net assets 6,088 12,876 9,049 20,274
------- ------- ------- -------
NET ASSETS:
Beginning of period 16,462 3,586 27,967 7,693
------- ------- ------- -------
End of period $22,550 $16,462 $37,016 $27,967
======= ======= ======= =======
CAPITAL SHARE TRANSACTIONS:
CLASS A:
Shares issued 841 1,161 854 1,674
Shares issued in lieu of cash distributions 18 33 19 47
Shares redeemed (516) (298) (493) (386)
------- ------- ------- -------
Total Class A transactions 343 896 380 1,335
------- ------- ------- -------
CLASS D:
Shares issued 244 359 611 476
Shares issued in lieu of cash distributions 3 10 4 15
Shares redeemed (48) (204) (131) (151)
------- ------- ------- -------
Total Class D transactions 199 165 484 340
------- ------- ------- -------
Increase in capital shares 542 1,061 864 1,675
======= ======= ======= =======
</TABLE>
AMOUNTS DESIGNATED AS "--" ARE ZERO OR HAVE BEEN ROUNDED TO ZERO.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
8
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
------------------ ------------------
<S> <C> <C>
DIVERSIFIED DIVERSIFIED
GLOBAL MODERATE
MODERATE GROWTH GROWTH
FUND FUND
------------------ ------------------
4/1/98- 4/1/97- 4/1/98- 4/1/97-
9/30/98 3/31/98 9/30/98 3/31/98
------- ------- ------- -------
OPERATIONS:
Net investment income $ 211 $ 229 $ 648 $ 846
Capital gain distributions received from investments -- 502 -- 1,771
Net realized gain from security transactions 134 187 1,665 935
Net change in unrealized appreciation (depreciation) on investments (2,994) 960 (7,086) 5,707
------- ------- ------- -------
Net increase (decrease) in net assets resulting from operations (2,649) 1,878 (4,773) 9,259
------- ------- ------- -------
DISTRIBUTIONS FROM:
Net investment income:
Class A (122) (111) (417) (622)
Class D (23) (60) (43) (84)
Net realized gains:
Class A -- (41) -- (1,057)
Class D -- (35) -- (197)
------- ------- ------- -------
Total distributions (145) (247) (460) (1,960)
------- ------- ------- -------
CAPITAL SHARE TRANSACTIONS:
CLASS A:
Proceeds from shares issued 11,619 13,106 27,759 35,766
Reinvestment of distributions 98 118 295 1,174
Cost of shares redeemed (2,905) (1,042) (8,816) (7,312)
------- ------- ------- -------
Increase in net assets derived from Class A transactions 8,812 12,182 19,238 29,628
------- ------- ------- -------
CLASS D:
Proceeds from shares issued 831 8,923 15,982 3,856
Reinvestment of distributions 23 95 41 281
Cost of shares redeemed (1,302) (2,728) (1,773) (3,363)
------- ------- ------- -------
Increase (Decrease) in net assets derived from Class D transactions (448) 6,290 14,250 774
------- ------- ------- -------
Increase in net assets derived from capital share transactions 8,364 18,472 33,488 30,402
------- ------- ------- -------
Net increase in net assets 5,570 20,103 28,255 37,701
------- ------- ------- -------
NET ASSETS:
Beginning of period
20,256 153 59,612 21,911
End of period ------- ------- ------- -------
$25,826 $20,256 $87,867 $59,612
CAPITAL SHARE TRANSACTIONS: ======= ======= ======= =======
CLASS A:
Shares issued 952 1,133 2,116 2,901
Shares issued in lieu of cash distributions 8 10 22 96
Shares redeemed (242) (88) (675) (602)
------- ------- ------- -------
Total Class A transactions 718 1,055 1,463 2,395
------- ------- ------- -------
CLASS D:
Shares issued 71 783 1,212 332
Shares issued in lieu of cash distributions -- 8 3 23
Shares redeemed (106) (234) (140) (282)
------- ------- ------- -------
Total Class D transactions (35) 557 1,075 73
------- ------- ------- -------
Increase in capital shares 683 1,612 2,538 2,468
======= ======= ======= =======
</TABLE>
<TABLE>
------------------ ------------------ ------------------
<S> <C> <C> <C>
DIVERSIFIED DIVERSIFIED
GLOBAL GLOBAL DIVERSIFIED
GROWTH STOCK U.S. STOCK
FUND FUND FUND
------------------ ------------------ ------------------
4/1/98- 4/1/97- 4/1/98- 4/1/97- 4/1/98- 4/1/97-
9/30/98 3/31/98 9/30/98 3/31/98 9/30/98 3/31/98
------- ------- ------- ------- -------- -------
OPERATIONS:
Net investment income $ 419 $ 704 $ 38 $ 91 $ 85 $ 47
Capital gain distributions received from investments -- 2,437 -- 773 -- 1,895
Net realized gain from security transactions 665 1,042 830 71 2,944 1,139
Net change in unrealized appreciation
(depreciation) on investments (12,853) 7,169 (6,740) 2,482 (12,111) 6,802
------- ------- ------- ------- -------- -------
Net increase (decrease) in net assets resulting
from operations (11,769) 11,352 (5,872) 3,417 (9,082) 9,883
------- ------- ------- ------- -------- -------
DISTRIBUTIONS FROM:
Net investment income:
Class A (260) (561) (8) (93) (8) (64)
Class D -- (80) -- (7) -- --
Net realized gains:
Class A -- (1,188) -- (146) -- (1,145)
Class D -- (349) -- (21) -- (614)
------- ------- ------- ------- -------- -------
Total distributions (260) (2,178) (8) (267) (8) (1,823)
------- ------- ------- ------- -------- -------
CAPITAL SHARE TRANSACTIONS:
CLASS A:
Proceeds from shares issued 27,921 38,977 13,760 13,759 30,385 13,930
Reinvestment of distributions 224 1,501 -- 222 7 974
Cost of shares redeemed (8,483) (6,332) (3,218) (1,931) (10,762) (3,394)
------- ------- ------- ------- -------- -------
Increase in net assets derived from Class A transactions 19,662 34,146 10,542 12,050 19,630 11,510
------- ------- ------- ------- -------- -------
CLASS D:
Proceeds from shares issued 2,792 10,274 4,679 2,670 7,942 8,220
Reinvestment of distributions -- 428 -- 27 -- 614
Cost of shares redeemed (879) (5,992) (965) (110) (1,332) (4,203)
------- ------- ------- ------- -------- -------
Increase (Decrease) in net assets derived from
Class D transactions 1,913 4,710 3,714 2,587 6,610 4,631
------- ------- ------- ------- -------- -------
Increase in net assets derived from capital
share transactions 21,575 38,856 14,256 14,637 26,240 16,141
------- ------- ------- ------- -------- -------
Net increase in net assets 9,546 48,030 8,376 17,787 17,150 24,201
------- ------- ------- ------- --------- -------
NET ASSETS:
Beginning of period
70,961 22,931 22,640 4,853 39,151 14,950
End of period ------- ------- ------- ------- -------- -------
$80,507 $70,961 $31,016 $22,640 $ 56,301 $39,151
CAPITAL SHARE TRANSACTIONS: ======= ======= ======= ======= ======== =======
CLASS A:
Shares issued 2,101 3,089 1,077 1,150 1,928 967
Shares issued in lieu of cash distributions 16 120 -- 18 1 68
Shares redeemed (646) (501) (254) (162) (733) (249)
------- ------- ------- ------- -------- -------
Total Class A transactions 1,471 2,708 823 1,006 1,196 786
------- ------- ------- ------- -------- -------
CLASS D:
Shares issued 211 838 358 223 501 601
Shares issued in lieu of cash distributions -- 34 -- 2 -- 43
Shares redeemed (69) (479) (82) (9) (90) (292)
------- ------- ------- ------- -------- -------
Total Class D transactions 142 393 276 216 411 352
------- ------- ------- ------- -------- -------
Increase in capital shares 1,613 3,101 1,099 1,222 1,607 1,138
======= ======= ======= ======= ======== =======
</TABLE>
9
<PAGE>
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SEI ASSET ALLOCATION TRUST
FOR A SHARE OUTSTANDING THROUGHOUT THE SIX MONTH PERIOD ENDED SEPTEMBER 30, 1998
(UNAUDITED) AND FOR THE PERIODS ENDED MARCH 31,
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET
REALIZED DISTRIBU- NET
NET ASSET NET AND DISTRIBUTIONS TIONS ASSET RATIO OF
VALUE INVESTMENT UNREALIZED FROM NET FROM VALUE NET ASSETS EXPENSES
BEGINNING INCOME/ GAINS ON INVESTMENT CAPITAL END OF TOTAL END OF TO AVERAGE
OF PERIOD (LOSS) SECURITIES INCOME GAINS PERIOD RETURN PERIOD (000) NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------
- ------------------------------------
DIVERSIFIED CONSERVATIVE INCOME FUND
- ------------------------------------
CLASS A
1998 $11.76 $0.20 $(0.14) $(0.20) $ -- $11.62 0.49%* $17,682 0.12%
1998 # 10.55 0.50 1.46 (0.44) (0.31) 11.76 19.16 13,862 0.12
1997(1)# 10.12 0.37 0.27 (0.21) -- 10.55 6.35* 2,983 0.12
CLASS D
1998 $11.70 $0.15 $(0.14) $(0.15) $ -- $11.56 0.04%* $ 4,868 1.12%
1998 # 10.49 0.38 1.46 (0.32) (0.31) 11.70 17.90 2,600 1.12
1997(2)# 10.09 0.27 0.30 (0.17) -- 10.49 5.67* 603 1.12
- -----------------------------
DIVERSIFIED CONSERVATIVE FUND
- -----------------------------
CLASS A
1998 $11.31 $0.13 $(0.21) $(0.13) $ -- $11.10 (0.75)%* $25,935 0.12%
1998 # 9.62 0.33 1.78 (0.27) (0.15) 11.31 22.35 22,125 0.12
1997(3)# 9.26 0.26 0.35 (0.18) (0.07) 9.62 6.54* 5,989 0.12
CLASS D
1998 $11.27 $0.08 $(0.21) $(0.08) $ -- $11.06 (1.19)%* $11,081 1.12%
1998 # 9.58 0.24 1.78 (0.18) (0.15) 11.27 21.29 5,842 1.12
1997(4)# 9.33 0.19 0.26 (0.13) (0.07) 9.58 4.84* 1,704 1.12
- ---------------------------------------
DIVERSIFIED GLOBAL MODERATE GROWTH FUND
- ---------------------------------------
CLASS A
1998 $12.49 $0.11 $(1.30) $(0.10) $ -- $11.20 (9.62)%* $19,940 0.12%
1998 # 10.15 0.31 2.28 (0.19) (0.06) 12.49 25.68 13,255 0.12
1997(6)# 10.00 0.06 0.14 (0.05) -- 10.15 1.96* 68 0.12
CLASS D
1998 $12.38 $0.06 $(1.30) $(0.04) $ -- $11.10 (10.05)%* $ 5,886 1.12%
1998 # 10.11 0.17 2.28 (0.12) (0.06) 12.38 24.38 7,001 1.12
1997(5)# 10.00 0.02 0.13 (0.04) -- 10.11 1.52* 85 1.12
- --------------------------------
DIVERSIFIED MODERATE GROWTH FUND
- --------------------------------
CLASS A
1998 $13.22 $0.10 $(0.74) $(0.10) $ -- $12.48 (4.89)%* $66,090 0.12%
1998 # 10.74 0.29 2.76 (0.25) (0.32) 13.22 29.08 50,677 0.12
1997(7)# 10.19 0.23 0.50 (0.16) (0.02) 10.74 7.12* 15,440 0.12
CLASS D
1998 $13.16 $0.04 $(0.74) $(0.05) $ -- $12.41 (5.38)%* $21,777 1.12%
1998 # 10.67 0.18 2.76 (0.13) (0.32) 13.16 27.99 8,935 1.12
1997(8)# 10.21 0.15 0.44 (0.11) (0.02) 10.67 5.71* 6,471 1.12
</TABLE>
RATIO RATIO OF
RATIO OF NET OF EXPENSES NET INVESTMENT
INVESTMENT TO AVERAGE INCOME/(LOSS)
INCOME/ NET ASSETS TO AVERAGE NET
(LOSS) TO (EXCLUDING ASSETS (EXCLUDING PORTFOLIO
AVERAGE WAIVERS AND WAIVERS AND TURNOVER
NET ASSETS REIMBURSEMENT) REIMBURSEMENT) RATE
- -----------------------------------------------------------------------
- ------------------------------------
DIVERSIFIED CONSERVATIVE INCOME FUND
- ------------------------------------
CLASS A
1998 4.15% 0.40% 3.87% 25%
1998 # 4.37 1.01 3.48 52
1997(1)# 4.38 3.65(Dagger) 0.85(Dagger) 27
CLASS D
1998 3.14% 1.40% 2.86% 25%
1998 # 3.35 2.27 2.20 52
1997(2)# 3.37 N/A(Dbl Dagger) N/A(Dbl Dagger)27
- -----------------------------
DIVERSIFIED CONSERVATIVE FUND
- -----------------------------
CLASS A
1998 2.63% 0.44% 2.31% 13%
1998 # 3.12 0.81 2.43 24
1997(3)# 3.56 2.75(Dagger) 0.93(Dagger) 65
CLASS D
1998 1.60% 1.46% 1.26% 13%
1998 # 2.13 1.91 1.34 24
1997(4)# 2.60 3.72(Dagger) 0.00(Dagger) 65
- ---------------------------------------
DIVERSIFIED GLOBAL MODERATE GROWTH FUND
- ---------------------------------------
CLASS A
1998 1.98% 0.48% 1.62% 11%
1998 # 2.66 0.86 1.92 30
1997(6)# 2.03 N/A(Dbl Dagger) N/A(Dbl Dagger) 3
CLASS D
1998 1.04% 1.46% 0.70% 11%
1998 # 1.72 1.93 0.91 30
1997(5)# 0.60 N/A(Dbl Dagger) N/A(Dbl Dagger) 3
- --------------------------------
DIVERSIFIED MODERATE GROWTH FUND
- --------------------------------
CLASS A
1998 1.90% 0.55% 1.47% 15%
1998 # 2.39 0.74 1.77 20
1997(7)# 2.64 1.45(Dagger) 1.31(Dagger) 22
CLASS D
1998 0.85% 1.53% 0.44% 15%
1998 # 1.37 1.80 0.69 20
1997(8)# 1.63 2.57(Dagger) 0.18(Dagger) 22
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
10
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET
REALIZED DISTRIBU- NET
NET ASSET NET AND DISTRIBUTIONS TIONS ASSET RATIO OF
VALUE INVESTMENT UNREALIZED FROM NET FROM VALUE NET ASSETS EXPENSES
BEGINNING INCOME/ GAINS ON INVESTMENT CAPITAL END OF TOTAL END OF TO AVERAGE
OF PERIOD (LOSS) SECURITIES INCOME GAINS PERIOD RETURN PERIOD (000) NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------
- -----------------------------
DIVERSIFIED GLOBAL GROWTH FUND
- -----------------------------
CLASS A
1998 $13.64 $ 0.07 $(1.83) $(0.06) $ -- $11.82 (12.99)%* $66,769 0.12%
1998 # 10.91 0.22 3.04 (0.19) (0.34) 13.64 30.38 57,012 0.12
1997(1)# 10.19 0.15 0.68 (0.10) (0.01) 10.91 8.10* 16,049 0.12
CLASS D
1998 $13.59 $ -- $(1.83) $ -- $ -- $11.76 (13.47)%* $13,738 1.12%
1998 # 10.87 0.10 3.04 (0.08) (0.34) 13.59 29.22 13,949 1.12
1997(8)# 10.24 0.06 0.63 (0.05) (0.01) 10.87 6.69* 6,882 1.12
- -----------------------------
DIVERSIFIED GLOBAL STOCK FUND
- -----------------------------
CLASS A
1998 $13.28 $ 0.01 $(2.21) $ -- $ -- $11.08 (16.54)%* $25,582 0.12%
1998 # 10.04 0.15 3.31 (0.09) (0.13) 13.28 34.70 19,730 0.12
1997(10)# 10.00 0.02 0.05 (0.03) -- 10.04 0.67* 4,807 0.12
CLASS D
1998 $13.16 $(0.02) $(2.21) $ -- $ -- $10.93 (16.95)%* $ 5,434 1.12%
1998 # 10.01 0.01 3.31 (0.04) (0.13) 13.16 33.38 2,910 1.12
1997(5)# 10.00 (0.03) 0.06 (0.02) -- 10.01 0.31* 46 1.12
- ---------------------------
DIVERSIFIED U.S. STOCK FUND
- ---------------------------
CLASS A
1998 $16.03 $ 0.02 $(2.11) $ -- $ -- $13.94 (13.02)%* $38,730 0.12%
1998 # 11.38 0.08 5.53 (0.05) (0.91) 16.03 50.40 25,357 0.12
1997(9)# 10.27 0.07 1.09 (0.05) -- 11.38 11.33* 9,065 0.12
CLASS D
1998 $15.83 $(0.02) $(2.11) $ -- $ -- $13.70 (13.46)%* $17,571 1.12%
1998 # 11.32 (0.11) 5.53 -- (0.91) 15.83 48.86 13,794 1.12
1997(4)# 10.36 (0.03) 1.01 $(0.02) -- 11.32 9.43* 5,885 1.12
</TABLE>
RATIO RATIO OF
RATIO OF NET OF EXPENSES NET INVESTMENT
INVESTMENT TO AVERAGE INCOME/(LOSS)
INCOME/ NET ASSETS TO AVERAGE NET
(LOSS) TO (EXCLUDING ASSETS (EXCLUDING PORTFOLIO
AVERAGE WAIVERS AND WAIVERS AND TURNOVER
NET ASSETS REIMBURSEENT) REIMBURSEMENT) RATE
- -----------------------------------------------------------------------
- -----------------------------
DIVERSIFIED GLOBAL GROWTH FUND
- -----------------------------
CLASS A
1998 1.20% 0.51% 0.81% 5%
1998 # 1.76 0.72 1.16 15
1997(1)# 1.74 1.53(Dagger) 0.33(Dagger) 13
CLASS D
1998 0.22% 1.50% (0.16)% 5%
1998 # 0.72 1.76 0.08 15
1997(8)# 0.71 2.56(Dagger) (0.73)(Dagger) 13
- -----------------------------
DIVERSIFIED GLOBAL STOCK FUND
- -----------------------------
CLASS A
1998 0.43% 0.63% (0.08)% 16%
1998 # 0.85 1.13 (0.16) 10
1997(10)# 0.65 2.13(Dagger) (1.36)(Dagger) --
CLASS D
1998 (0.60)% 1.60% (1.08)% 16%
1998 # (0.07) 2.52 (1.47) 10
1997(5)# (1.06) N/A(Dbl Dagger) N/A(Dbl Dagger) --
- ---------------------------
DIVERSIFIED U.S. STOCK FUND
- ---------------------------
CLASS A
1998 0.59% 0.51% 0.20% 23%
1998 # 0.57 0.80 (0.11) 21
1997(9)# 0.72 1.84(Dagger) (1.00)(Dagger) 28
CLASS D
1998 (0.37)% 1.52% (0.77)% 23%
1998 # (0.42) 1.82 (1.12) 21
1997(4)# (0.39) 2.75(Dagger) (2.02)(Dagger) 28
[dagger] RATIOS REFLECT THE IMPACT OF THE INITIAL LOW LEVEL OF AVERAGE NET
ASSETS ASSOCIATED WITH COMMENCEMENT OF OPERATIONS.
[double
dagger] RATIO IS NOT MEANINGFUL DUE TO LOW LEVEL OF ASSETS AND BECAUSE SEI
INVESTMENTS WILL BEAR ALL EXPENSES EXCEEDING SPECIFIC LIMITATIONS.
# PER SHARE CALCULATIONS WERE PERFORMED USING AVERAGE SHARES FOR THE PERIOD.
* TOTAL RETURN HAS NOT BEEN ANNUALIZED.
(1) COMMENCED OPERATIONS 6/13/96. ALL RATIOS FOR THAT PERIOD HAVE BEEN
ANNUALIZED.
(2) COMMENCED OPERATIONS 6/21/96. ALL RATIOS FOR THAT PERIOD HAVE BEEN
ANNUALIZED.
(3) COMMENCED OPERATIONS 6/26/96. ALL RATIOS FOR THAT PERIOD HAVE BEEN
ANNUALIZED.
(4) COMMENCED OPERATIONS 7/1/96. ALL RATIOS FOR THAT PERIOD HAVE BEEN
ANNUALIZED.
(5) COMMENCED OPERATIONS 12/5/96. ALL RATIOS FOR THAT PERIOD HAVE BEEN
ANNUALIZED.
(6) COMMENCED OPERATIONS 12/13/96. ALL RATIOS FOR THAT PERIOD HAVE BEEN
ANNUALIZED.
(7) COMMENCED OPERATIONS 6/10/96. ALL RATIOS FOR THAT PERIOD HAVE BEEN
ANNUALIZED.
(8) COMMENCED OPERATIONS 5/30/96. ALL RATIOS FOR THAT PERIOD HAVE BEEN
ANNUALIZED.
(9) COMMENCED OPERATIONS 5/13/96. ALL RATIOS FOR THAT PERIOD HAVE BEEN
ANNUALIZED.
(10) COMMENCED OPERATIONS 12/9/96. ALL RATIOS FOR THAT PERIOD HAVE BEEN
ANNUALIZED.
AMOUNTS DESIGNATED AS "--" ARE ZERO OR HAVE BEEN ROUNDED TO ZERO.
11
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
SEI ASSET ALLOCATION TRUST -- SEPTEMBER 30, 1998 (UNAUDITED)
1. ORGANIZATION
SEI Asset Allocation Trust, (the "Trust") is organized as a Massachusetts
Business Trust under a Declaration of Trust dated November 20, 1995 and had no
operations through May 12, 1996, other than those related to organizational
matters and the sale of initial shares to SEI Investments Fund Management (the
"Manager"). Each Fund and class of shares commenced operations upon the purchase
of fund shares other than the initial shares purchased by the Manager. The Trust
is registered under the Investment Company Act of 1940, as amended, as an
open-end investment company with seven diversified Funds: Diversified
Conservative Income Fund, Diversified Conservative Fund, Diversified Global
Moderate Growth Fund, Diversified Moderate Growth Fund, Diversified Global
Growth Fund, Diversified Global Stock Fund and Diversified U.S. Stock Fund. Each
Fund offers shareholders the opportunity to invest in certain of the underlying
Portfolios, which are separately- managed series of the following investment
companies: SEI Institutional Managed Trust, SEI Institutional International
Trust, and SEI Liquid Asset Trust. The Declaration of Trust permits the Trust to
offer separate classes of shares in each Fund, Class A Shares and Class D
Shares. The assets of each Fund are segregated, and a shareholder's interest is
limited to the Fund in which shares are held. The Fund's prospectus provides a
description of each Fund's investment objectives, policies and strategies.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of the significant accounting policies followed by
the Funds.
SECURITY VALUATION -- The assets of each Fund consist primarily of the
investments in the underlying Portfolios, which are valued at their respective
net asset values.
FEDERAL INCOME TAXES -- It is each Fund's intention to qualify as a
regulated investment company for Federal income tax purposes by complying with
the appropriate provisions of the Internal Revenue Code. Accordingly, no
provision for Federal income taxes is required in the accompanying financial
statements.
SECURITY TRANSACTIONS AND RELATED INCOME -- Security transactions are
accounted for on the date the security is purchased or sold (trade date).
Dividend income is recognized on the ex-dividend date. Costs used in determining
realized gains and losses on the sales of investment securities are those of the
specific securities sold.
CLASSES -- Class specific expenses are borne by that class of shares.
Income, realized and unrealized gains/losses and non class-specific expenses are
allocated to the respective classes on the basis of relative daily net assets.
EXPENSES -- Expenses that are directly related to one of the Funds are
charged directly to that Fund. Other operating expenses of the Trust are
prorated to the Funds on the basis of relative net assets.
DISTRIBUTIONS -- Distributions from net investment income and net realized
capital gains are determined in accordance with U.S. Federal income tax
regulations, which may differ from those amounts determined under generally
accepted accounting principles. These book/tax differences are either temporary
or permanent in nature. To the extent these differences are permanent, they are
charged or credited to paid in capital in the period that the difference arises.
These reclassifications have no effect on net assets or net asset value per
share.
USES OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS -- The
preparation of financial statements, in conformity with generally accepted
accounting principles, requires management to make estimates and assumptions
that affect the reported
12
<PAGE>
- --------------------------------------------------------------------------------
amount of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported amounts of
revenue and expenses during the reporting period. Actual results could differ
from those estimates.
3. INVESTMENT ADVISORY, MANAGEMENT, DISTRIBUTION AND SHAREHOLDER SERVICING
AGREEMENTS
Under the Investment Advisory Agreement with the Trust, SEI Investments
Management Corporation ("SIMC" or the "Adviser") acts as the investment adviser
to each Fund. For its investment advisory services to the Trust, the Adviser is
entitled to a fee, which is calculated daily and paid monthly, at an annual rate
of .10% of each Fund's average daily net assets.
Under the Administration Agreement with the Trust, the Manager provides the
Trust with overall management services and shareholder servicing. For these
services to the Funds, the Manager is entitled to a fee, which is calculated
daily and paid monthly, at an annual rate of .20% of the average daily net
assets of each Fund. The Manager and the Adviser have agreed to waive their fee
so that the total annual expenses of each fund will not exceed the expense
limitations adopted by the Manager. This waiver may be terminated by the Manager
and Adviser at any time at their sole discretion. In the event that the total
annual expenses of the Fund, after reflecting a waiver of all fees by the
Manager and the Adviser, exceed the specific limitation, the Manager has agreed
to bear such excess.
SEI Investments Distribution Co. (the "Distributor"), a wholly-owned
subsidiary of SEI Investments, serves as each Fund's distributor pursuant to a
distribution agreement (the "Distribution Agreement") with the Trust. The
Trustees of the Trust have adopted a distribution and service plan for the
Trust's Class D shares (the "Class D Plan") pursuant to Rule 12b-1 under the
1940 Act. The Class D Plan provides for payments to the distributor for
distribution-related services at an annual rate of .75% of each Fund's average
daily net assets attributable to Class D Shares. In addition, each Fund is
authorized to pay the Distributor a fee in connection with the ongoing servicing
of shareholder accounts owning such Class D Shares, calculated and payable
monthly, at an annual rate of .25% of the value of the average daily net assets
attributable to Class D Shares of the Fund.
4. ORGANIZATIONAL COSTS AND TRANSACTIONS WITH AFFILIATES
Organizational costs have been capitalized by the Trust and are being amortized
over 60 months commencing with operations. In the event any of the initial
shares are redeemed by any holder thereof during the period that the Trust is
amortizing its organizational costs, the redemption proceeds payable to the
holder thereof by the Trust will be reduced by the unamortized organizational
costs in the same ratio as the number of initial shares being redeemed bears to
the number of initial shares outstanding at the time of the redemption. These
costs include legal fees of approximately $50,000 for organizational work
performed by a law firm of which an officer and Trustee of the Trust are
Partners. In addition, there are fees paid to the law firm for current legal
services rendered.
Certain officers of the Trust are also officers of the Manager and Adviser.
The Trust pays each unaffiliated Trustee an annual fee for attendance of
quarterly, interim and committee meetings. Compensation of officers and
affiliated Trustees of the Trust is paid by the Manager.
13
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
SEI ASSET ALLOCATION TRUST -- SEPTEMBER 30, 1998 (UNAUDITED)
5. INVESTMENT TRANSACTIONS
The cost of security purchases and the proceeds from the sale of securities
during the period ended September 30, 1998 were as follows:
Total
(000)
-------
Diversified Conservative Income Fund
PURCHASES................................... $ 9,286
SALES....................................... 4,146
Diversified Conservative Fund
PURCHASES................................... $13,888
SALES....................................... 4,185
Diversified Global Moderate Growth Fund
PURCHASES................................... $10,827
SALES....................................... 2,515
Diversified Moderate Growth Fund
PURCHASES................................... $44,480
SALES....................................... 10,991
Diversified Global Growth Fund
PURCHASES................................... $25,643
SALES....................................... 3,948
Diversified Global Stock Fund
PURCHASES................................... $18,600
SALES....................................... 4,443
Diversified U.S. Stock Fund
PURCHASES................................... $38,555
SALES....................................... 12,162
At September 30, 1998, the total cost of securities and the net realized gains
or losses on securities sold for Federal income tax purposes were not materially
different from amounts reported for financial reporting purposes. The aggregate
gross unrealized appreciation and depreciation on investment securities at
September 30, 1998 for each Fund is as follows:
NET
UNREALIZED
APPRECIATED DEPRECIATED APPRECIATION/
SECURITIES SECURITIES (DEPRECIATION)
(000) (000) (000)
----------- ----------- ------------
Diversified
Conservative
Income $ 482 $ (547) $ (65)
Diversified
Conservative 1,599 (1,196) 403
Diversified
Global
Moderate
Growth 560 (2,596) (2,036)
Diversified
Moderate
Growth 3,241 (4,797) (1,556)
Diversified
Global
Growth 3,408 (9,133) (5,725)
Diversified
Global Stock 376 (4,767) (4,391)
Diversified
U.S. Stock 1,231 (6,276) (5,045)
14
<PAGE>
NOTES
<PAGE>
NOTES
<PAGE>
- --------------------------
SEI ASSET ALLOCATION TRUST
- --------------------------
SEMI-ANNUAL REPORT
- --------------------------
SEPTEMBER 30, 1998
Robert A. Nesher
CHAIRMAN
TRUSTEES
William M. Doran
F. Wendell Gooch
Frank E. Morris
James M. Storey
George J. Sullivan, Jr.
OFFICERS
Edward D. Loughlin
PRESIDENT AND CHIEF EXECUTIVE OFFICER
Mark Nagle
CONTROLLER AND CHIEF FINANCIAL OFFICER
Todd Cipperman
VICE PRESIDENT, ASSISTANT SECRETARY
Kathryn L. Stanton
VICE PRESIDENT, ASSISTANT SECRETARY
Kathy Heilig
VICE PRESIDENT, ASSISTANT SECRETARY
Sandra K. Orlow
VICE PRESIDENT, ASSISTANT SECRETARY
Kevin P. Robins
VICE PRESIDENT, ASSISTANT SECRETARY
Cynthia M. Parrish
VICE PRESIDENT, ASSISTANT SECRETARY
Joseph M. O'Donnell
VICE PRESIDENT, ASSISTANT SECRETARY
Richard W. Grant
SECRETARY
INVESTMENT ADVISER
SEI Investments Management Corporation
MANAGER AND SHAREHOLDER SERVICING AGENT
SEI Investments Fund Management
DISTRIBUTOR
SEI Investments Distribution Co.
LEGAL COUNSEL
Morgan, Lewis & Bockius LLP
INDEPENDENT PUBLIC ACCOUNTANTS
PricewaterhouseCoopers LLP
THIS SEMI-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
INVESTMENTS DISTRIBUTION CO., THE DISTRIBUTOR OF THE SEI FUNDS, IS NOT
AFFILIATED WITH ANY BANK.
FOR MORE INFORMATION CALL 1[BULLET]800[BULLET]DIAL[BULLET]
SEI/1[BULLET]800[BULLET]342[BULLET]5734
<PAGE>
[LOGO OMITTED]
INVESTMENTS
DISTRIBUTION
CO.
Oaks, PA 19456
800-DIAL-SEI/800-342-5734
SEI-F-118-03
