<PAGE>
SEI INSURANCE PRODUCTS TRUST
SEI VP SMALL CAP VALUE FUND
SEI VP LARGE CAP GROWTH FUND
SUPPLEMENT DATED DECEMBER 12, 2000 TO THE
CLASS A PROSPECTUS DATED APRIL 30, 2000
THIS SUPPLEMENT PROVIDES NEW AND ADDITIONAL INFORMATION BEYOND THAT CONTAINED IN
THE CLASS A PROSPECTUS, AND SHOULD BE READ IN CONJUNCTION WITH SUCH PROSPECTUS.
SEI VP SMALL CAP VALUE FUND
The Board of Trustees of SEI Insurance Products Trust (the "Trust"), including
all of the Trustees who are not "interested persons" (as defined in the
Investment Company Act of 1940) of the Trust, have appointed Sterling Capital
Management ("Sterling"), as an additional Sub-Adviser to the Trust's SEI VP
Small Cap Value Fund. Sterling was approved as a Sub-Adviser at the Quarterly
Meeting of the Board of Trustees held on December 11, 2000 ("Quarterly
Meeting"), and its appointment does not require shareholder approval. This
procedure for adding or replacing Sub-Advisers was approved by the Trust's sole
initial shareholder on February 1, 2000, and was authorized by an exemptive
order issued to the Trust by the Securities and Exchange Commission on
April 29, 1996.
In evaluating Sterling, the Trustees received written and oral information from
both SEI Investments Management Corporation ("SIMC") and Sterling. SIMC
recommended the selection of Sterling and reviewed the considerations and the
search process that led to its recommendation. The Trustees also met with
representatives of Sterling and considered information about portfolio managers,
investment philosophy, strategies and process, as well as other factors. In
appointing Sterling, the Trustees carefully evaluated: (1) the nature and
quality of the services expected to be rendered to the SEI VP Small Cap Value
Fund by Sterling; (2) the distinct investment objective and policies of the
SEI VP Small Cap Value Fund; (3) the history, reputation, qualification and
background of Sterling's personnel and its financial condition; (4) its
performance record; and (5) other factors deemed relevant. The Trustees also
reviewed the fees to be paid to Sterling, including any benefits to be received
by Sterling or its affiliates in connection with soft dollar arrangements.
Under the Investment Sub-Advisory Agreement between SIMC and Sterling relating
to the SEI VP Small Cap Value Fund, Sterling makes investment decisions for the
assets of the SEI VP Small Cap Value Fund allocated to it by SIMC, and
continuously reviews, supervises and administers the SEI VP Small Cap Value
Fund's investment program with respect to these assets. Sterling is independent
of SIMC and discharges its responsibilities subject to the supervision of SIMC
and the Trustees of the Trust, and in a manner consistent with the SEI VP Small
Cap Value Fund's investment objective, policies and limitations. The
Sub-Advisory Agreement is substantially similar to those in existence between
SIMC and the Trust's other Sub-Advisers. Specifically, the duties to be
performed, standard of care and termination provisions of the Agreement are
similar, to the other Agreements. The Sub-Advisory Agreement will remain in
effect until December, 2002 (unless earlier terminated), and will have to be
approved annually thereafter by a majority of the Trustees, including a majority
of the Trustees who are not "interested persons" of the Trust (as defined in the
Investment Company Act of 1940).
In connection with the appointment of Sterling as Sub-Adviser to the SEI VP
Small Cap Value Fund, the "Sub-Advisers" Section on page 27 of the Prospectus is
amended by inserting the following paragraph relating to Sterling:
STERLING CAPITAL MANAGEMENT: Eduardo A. Brea, CFA, and Brian R. Walton, CFA,
serve as portfolio managers for a portion of the assets of the SEI VP Small Cap
Value Fund. Mr. Brea and Mr. Walton both joined Sterling in 1995, and each is a
Principal and Equity Portfolio Manager and Analyst. Mr. Brea and Mr. Walton each
have over 10 years of investment experience.
Sterling was founded in 1970 and is a subsidiary of United Asset Management, a
wholly-owned subsidiary of Old Mutual, PLC. In January 2001, Sterling plans to
repurchase its equity from UAM. As of November 27, 2000, Sterling had
approximately $3.25 billion in assets under management.
<PAGE>
Listed below are the names and principal occupations of the principals and
principal executive officers of Sterling. The address of Sterling and the
principal business address of such individuals as it relates to their respective
positions at Sterling, is One First Union Center, 301 College Street,
Suite 3200, Charlotte, North Carolina 28202-6005.
<TABLE>
<CAPTION>
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NAME TITLE
<S> <C>
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Principal and President/ Chief
Mark W. Whalen Executive Officer
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Principal and Chief Investment
David M. Ralston Officer
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Principal and Equity Portfolio
Eduardo A. Brea, CFA Manager/ Analyst
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Principal and Equity Portfolio
Brian R. Walton, CFA Manager/ Analyst
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Alexander W. McAlister Principal/ New Business Development
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</TABLE>
SIMC will pay Sterling a fee based on a percentage of the average monthly market
value of the assets of the SEI VP Small Cap Value Fund assigned to Sterling.
--------------------------
At the Quarterly Meeting, the Board of Trustees of the Trust, including all of
the Trustees who are not "interested persons" of the Trust, voted to terminate
Mellon Equity Associates, LLP ("Mellon Equity") as a Sub-Adviser to the SEI VP
Small Cap Value Fund. The Board determined to terminate Mellon Equity based on
lowered performance expectations and poor execution of the quantitative
investment process which had led to performance below expectations. This
termination does not require shareholder approval.
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SEI VP LARGE CAP GROWTH FUND
At the Quarterly Meeting, the Trustees appointed Duncan-Hurst Capital Management
Inc. ("Duncan-Hurst") as an additional Sub-Adviser to the Trust's SEI VP Large
Cap Growth Fund. Duncan-Hurst's appointment does not require shareholder
approval.
In evaluating Duncan-Hurst, the Trustees received written and oral information
from both SEI Investments Management Corporation ("SIMC") and Duncan-Hurst. SIMC
recommended the selection of Duncan-Hurst and reviewed the considerations and
the search process that led to its recommendation. The Trustees also met with
representatives of Duncan-Hurst and considered information about portfolio
managers, investment philosophy, strategies and process, as well as other
factors. In appointing Duncan-Hurst, the Trustees carefully evaluated: (1) the
nature and quality of the services expected to be rendered to the SEI VP Large
Cap Growth Fund by Duncan-Hurst; (2) the distinct investment objective and
policies of the SEI VP Large Cap Growth Fund; (3) the history, reputation,
qualification and background of Duncan-Hurst's personnel and its financial
condition; (4) its performance record; and (5) other factors deemed relevant.
The Trustees also reviewed the fees to be paid to Duncan-Hurst, including any
benefits to be received by Duncan-Hurst or its affiliates in connection with
soft dollar arrangements.
Under the Investment Sub-Advisory Agreement between SIMC and Duncan-Hurst
relating to the SEI VP Large Cap Growth Fund, Duncan-Hurst makes investment
decisions for the assets of the SEI VP Large Cap Growth Fund allocated to it by
SIMC, and continuously reviews, supervises and administers the SEI VP Large Cap
Growth Fund's investment program with respect to these assets. Duncan-Hurst is
independent of SIMC and discharges its responsibilities subject to the
supervision of SIMC and the Trustees of the Trust, and in a manner consistent
with the SEI VP Large Cap Growth Fund's investment objective, policies and
limitations. The Sub-Advisory Agreement is substantially similar to those in
existence between SIMC and the Trust's other Sub-Advisers. Specifically, the
duties to be performed, standard of care and termination provisions of the
Agreement are similar, to the other Agreements. The Sub-Advisory Agreement will
remain in effect until December, 2002 (unless earlier terminated), and will have
to be approved annually thereafter by a majority of the Trustees, including a
majority of the Trustees who are not "interested persons" of the Trust (as
defined in the Investment Company Act of 1940).
In connection with the appointment of Duncan-Hurst as Sub-Adviser to the SEI VP
Large Cap Growth Fund, the "Sub-Advisers" Section on page 27 of the Prospectus
is amended by inserting the following paragraph relating to Duncan-Hurst:
DUNCAN-HURST CAPITAL MANAGEMENT INC.: David Magee serves as portfolio manager
for a portion of the assets of the SEI VP Large Cap Growth Fund. Mr. Magee
joined Duncan-Hurst in 1992 and is Vice President and Portfolio Manager. He has
over 10 years of investment experience.
Duncan-Hurst was founded in 1990 and is wholly-owned by active employees. As of
November 30, 2000, Duncan-Hurst had $4.6 billion in assets under management.
<PAGE>
Listed below are the names and principal occupations of the principal executive
officers of Duncan-Hurst. The address of Duncan-Hurst and the principal business
address of the principal executive officer and each of the directors, as it
relates to their position at Duncan-Hurst, is 4365 Executive Drive, Suite 1520,
San Diego, California 92121.
<TABLE>
<CAPTION>
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NAME TITLE
<S> <C>
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Chairman, Chief Executive Officer
William H. Duncan, Jr. and Chief Investment Officer
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Frank P. Hurst President
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</TABLE>
SIMC will pay Duncan-Hurst a fee based on a percentage of the average monthly
market value of the assets of the SEI VP Large Cap Growth Fund assigned to
Duncan-Hurst.
--------------------------
At the Quarterly Meeting, the Trustees appointed Peregrine Capital Management
Inc. ("Peregrine") as an additional Sub-Adviser to the SEI VP Large Cap Growth
Fund. Peregrine's appointment does not require shareholder approval.
In evaluating Peregrine, the Trustees received written and oral information from
both SEI Investments Management Corporation ("SIMC") and Peregrine. SIMC
recommended the selection of Peregrine and reviewed the considerations and the
search process that led to its recommendation. The Trustees also met with
representatives of Peregrine and considered information about portfolio
managers, investment philosophy, strategies and process, as well as other
factors. In appointing Peregrine, the Trustees carefully evaluated: (1) the
nature and quality of the services expected to be rendered to the SEI VP Large
Cap Growth Fund by Peregrine; (2) the distinct investment objective and policies
of the SEI VP Large Cap Growth Fund; (3) the history, reputation, qualification
and background of Peregrine's personnel and its financial condition; (4) its
performance record; and (5) other factors deemed relevant. The Trustees also
reviewed the fees to be paid to Peregrine, including any benefits to be received
by Peregrine or its affiliates in connection with soft dollar arrangements.
Under the Investment Sub-Advisory Agreement between SIMC and Peregrine relating
to the SEI VP Large Cap Growth Fund, Peregrine makes investment decisions for
the assets of the SEI VP Large Cap Growth Fund allocated to it by SIMC, and
continuously reviews, supervises and administers the SEI VP Large Cap Growth
Fund's investment program with respect to these assets. Peregrine is independent
of SIMC and discharges its responsibilities subject to the supervision of SIMC
and the Trustees of the Trust, and in a manner consistent with the SEI VP Large
Cap Growth Fund's investment objective, policies and limitations. The
Sub-Advisory Agreement is substantially similar to those in existence between
SIMC and the Trust's other Sub-Advisers. Specifically, the duties to be
performed, standard of care and termination provisions of the Agreement are
similar, to the other Agreements. The Sub-Advisory Agreement will remain in
effect until December, 2002 (unless earlier terminated), and will have to be
approved annually thereafter by a majority of the Trustees, including a majority
of the Trustees who are not "interested persons" of the Trust (as defined in the
Investment Company Act of 1940).
In connection with the appointment of Peregrine as Sub-Adviser to the SEI VP
Large Cap Growth Fund, the "Sub-Advisers" Section on page 27 of the Prospectus
is amended by inserting the following paragraph relating to Peregrine:
PEREGRINE CAPITAL MANAGEMENT INC.: John Dale, Senior Vice President and
Portfolio Manager, and Gary Nussbaum, Senior Vice President and Portfolio
Manager serve as portfolio managers for a portion of the assets of the SEI VP
Large Cap Growth Fund. Mr. Dale joined Peregrine in 1987, and has 32 years of
investment management experience. Mr. Nussbaum joined Peregrine in 1990, and has
12 years of investment management experience.
Peregrine was founded in 1984 and is a wholly-owned subsidiary of Wells Fargo
Bank Minnesota, N.A. As of September 30, 2000, Peregrine had approximately $9.3
billion in assets under management.
<PAGE>
Listed below are the names and principal occupations of the principal executive
officers of Peregrine. The address of Peregrine and the principal business
address of the principal executive officers, as it relates to their position at
Peregrine, is 800 LaSalle Avenue, Suite 1850, Minneapolis, Minnesota 55402.
<TABLE>
<CAPTION>
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NAME TITLE
<S> <C>
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James Robert Campbell Director
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Chairman of the Board, Chief
Robert Bruce Mersky Executive Officer and President
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Chief Operating Officer, Chief
Compliance Officer, Chief Financial
Ronald George Hoffman Officer, and Senior Vice President
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William Daniel Giese Senior Vice President
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Paul Edward von Kuster Senior Vice President
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Patricia D. Burns Senior Vice President
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Paul R. Wurm Senior Vice President
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John S. Dale Senior Vice President
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Jeannine McCormick Senior Vice President
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Barbara Kloepfer Senior Vice President
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Gary E. Nussbaum Senior Vice President
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Tasso Harry Coin Senior Vice President
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Julie M. Gerend Senior Vice President
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Daniel J. Hagen Senior Vice President
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Jay H. Strohmaier Senior Vice President
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Douglas G. Pugh Senior Vice President
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</TABLE>
SIMC will pay Peregrine a fee based on a percentage of the average monthly
market value of the assets of the SEI VP Large Cap Growth Fund assigned to
Peregrine.
--------------------------
At the Quarterly Meeting, the Board of Trustees of the Trust, including all of
the Trustees who are not "interested persons" of the Trust, voted to terminate
TCW Investment Management Company ("TCW") as a Sub-Adviser to the SEI VP Large
Cap Growth Fund. The Board determined to terminate TCW based on TCW's reduced
capacity available to the SEI VP Large Cap Growth Fund and a change in TCW's
business plan as originally conveyed to the Trust. This termination does not
require shareholder approval.
--------------------------
The prospectus is hereby amended to reflect these changes.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
