<PAGE>
--------------------------------------------------------------------------------
TO OUR SHAREHOLDERS:
During the last half of 1994 through February of 1995, the Federal Reserve
Board (the "Fed") continued its "preemptive strike" against inflation. When the
Fed tightened for the last time this past February, short-term interest rates
had risen from 3.00% to 6.00% in just 12 months.
The increase in short term rates by the Fed resulted in a win on one front for
money market investors in the form of premium yields. On another front, money
market investors were shocked when Community Bankers Government Fund became the
first money market fund to "break the buck" as a result of investing in inap-
propriate structured securities. The shock wave continued to ripple through the
markets in December 1994, when the news of the Orange County, California bank-
ruptcy reached the public.
Despite the overall distress in the markets, Wellington Management Company with
its conservative investment philosophy found opportunities to provide competi-
tive yield, while maintaining a high degree of safety and liquidity. In this
context, the investors of the SEI Liquid Asset Trust won on both fronts--first,
in avoiding inappropriate structured securities and Orange County problems, and
second, by receiving competitive yields.
As we head into the second half of 1995 the outlook is for an easing by the
Fed. Therefore, investors can expect a slight decline in money market yields.
As always, Wellington Management Company will seek safe investment opportuni-
ties that provide the competitive yields our shareholders expect. We continue
to look forward to serving your investment needs, and we thank you for your
continued confidence in the SEI Liquid Asset Trust.
Sincerely,
/s/ David G. Lee
David G. Lee President and Chief Execu-
tive Officer SEI Liquid Asset Trust
<PAGE>
TABLE OF CONTENTS
--------------------------------------------------------------------------------
MONEY MARKET REVIEW............................................................1
REPORT OF INDEPENDENT ACCOUNTANTS..............................................2
STATEMENT OF NET ASSETS........................................................3
STATEMENT OF ASSETS AND LIABILITIES............................................7
STATEMENT OF OPERATIONS........................................................8
STATEMENT OF CHANGES IN NET ASSETS.............................................9
FINANCIAL HIGHLIGHTS..........................................................11
NOTES TO FINANCIAL STATEMENTS.................................................12
<PAGE>
MONEY MARKET REVIEW
--------------------------------------------------------------------------------
SEI LIQUID ASSET MONEY MARKET PORTFOLIOS
TREASURY SECURITIES
GOVERNMENT SECURITIES
PRIME OBLIGATION
SEI Liquid Asset Trust Portfolios are advised by Wellington
Management Company
Money market mutual funds found renewed popularity in the past twelve months,
aided in large part by the actions of the Federal Reserve Board ("the Fed").
The central bank had begun to raise short term interest rates in early 1994,
but its efforts gathered momentum in the second half of the year as the economy
experienced a burst in growth. Fearing that the strong growth would generate
inflationary pressures, the Fed continued to raise interest rates through Feb-
ruary of 1995 until, at 6.00%, short term interest rates were double their
level of one year before.
In addition to the rise in short term interest rates and the accompanying
distress in the bond market, the markets also experienced: 1) the demise of
Kidder Peabody, whose presence in the CMO market disappeared--hurt by an inven-
tory of illiquid, volatile mortgage derivatives, which were nearly impossible
to hedge, the firm was taken over by Paine Webber; 2) the first default by a
money market mutual fund--the Community Bankers Government Fund had invested in
inappropriate, structured securities, and was unable to repay shareholders at
the $1.00 net asset value; 3) the bankruptcy of Orange County, California,
whose Treasurer, in search of higher yield and income, invested heavily in
structured securities; and 4) the collapse of the Mexican debt market.
The Fed's policies had the desired effects. In addition to forcing a reduc-
tion in some of the risks in investors' portfolios, the sharp rise in interest
rates "cooled off" the economy and, by the second quarter of 1995, investors
were again talking about lower short-term interest rates. Money market yields
declined below 6.00% as did some bond yields. So far, little money has flowed
from money market funds into the bond market as investors' memories of 1994 re-
main fresh and painful.
In advising the Trust, Wellington continues to emphasize its analytical re-
sources in selecting investments for the three portfolios. These efforts, in
addition to a "common sense" investment philosophy, have insulated shareholders
from the pitfalls experienced by other investment advisers.
1
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
--------------------------------------------------------------------------------
To the Board of Trustees and Shareholders of
SEI Liquid Asset Trust:
In our opinion, the accompanying statement of net assets and statement 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 Treasury Securities Portfolio, the
Government Securities Portfolio, the Prime Obligation Portfolio, the
Institutional Cash Portfolio and the Money Market Portfolio (constituting SEI
Liquid Asset Trust, hereafter referred to as the "Trust") at June 30, 1995, the
results of each of their operations, 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 Trust's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require 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 disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement
presentation. We believe that our audits, which included confirmation of
securities at June 30, 1995, by correspondence with the custodian, provide a
reasonable basis for the opinion expressed above.
PRICE WATERHOUSE LLP
Philadelphia, Pennsylvania
August 11, 1995
2
<PAGE>
STATEMENT OF NET ASSETS
--------------------------------------------------------------------------------
SEI Liquid Asset Trust--June 30, 1995
TREASURY SECURITIES PORTFOLIO
<TABLE>
------------------------------------------------------------------------------
<CAPTION>
Description Par (000) Value (000)
------------------------------------------------------------------------------
<S> <C> <C>
U.S. TREASURY OBLIGATIONS -- 55.4%
U.S. Treasury Bills
6.380%, 08/10/95 $ 230,000 $ 228,441
6.126%, 09/14/95 97,000 95,814
6.133%, 09/14/95 90,000 88,899
6.068%, 10/26/95 42,000 41,207
5.598%, 12/21/95 203,000 197,757
5.600%, 12/21/95 50,000 48,707
----------
Total U.S. Treasury Obligations
(Cost $700,825,036) 700,825
----------
REPURCHASE AGREEMENTS -- 45.1%
Donaldson, Lufkin & Jenrette
Securities (A)
6.15%, dated 06/30/95, matures 07/03/95, repurchase
price $170,087,125 (collateralized by U.S. Treasury
Bills par value $19,464,000, matures 09/28/95: U.S.
Treasury Notes total par value $73,960,000, 5.625%-
6.875%, 02/28/97-01/15/00: U.S Treasury Bond par value
52,900,000, 11.75%,matures 11/15/14: total market
value $173,400,428) 170,000 170,000
Lehman Brothers (A)
6.20%, dated 06/30/95, matures 07/03/95, repurchase
price $2,448,264 (collateralized by U.S. Treasury Note
par value $2,446,000, 6.50%, matures 04/30/97: market
value $2,496,871) 2,447 2,447
Nomura Securities International (A)(B)
5.95%, dated 06/23/95, matures 07/24/95, repurchase
price $114,584,092 (collateralized by U.S. Treasury
Bills par value $14,470,000, matures 05/30/96: U.S.
Treasury Notes total par value $92,015,000, 5.75%-
6.875%, 04/30/97-08/15/04: U.S. Treasury Bond par
value $5,026,000, 12.00%, matures 08/15/13: total
market value $116,280,217) 114,000 114,000
</TABLE>
<TABLE>
-------------------------------------------------------------------------------
<CAPTION>
Value
Description Par (000) (000)
-------------------------------------------------------------------------------
<S> <C> <C> <C>
Swiss Bank Corporation (A)
6.17%, dated 06/30/95, matures 07/03/95, repurchase
price $283,673,780 (collateralized by U.S. Treasury
Bills total par value $39,335,000, 07/13/95-
06/27/96: U.S. Treasury Notes total par value
$281,797,000, 3.875%-8.50%, 08/15/95-05/15/05: U.S.
Treasury Bonds total par value $385,000, 7.625%-
12.00%, 08/15/13-02/15/25: total market value
$319,966,232) $ 283,528 $ 283,528
----------
Total Repurchase Agreements
(Cost $569,975,000) 569,975
----------
Total Investments -- 100.5%
(Cost $1,270,800,036) 1,270,800
----------
OTHER ASSETS AND LIABILITIES -- (0.5%)
Other Asset and Liabilities, Net (6,114)
----------
NET ASSETS:
Portfolio shares of Class A (unlimited
authorization -- no par value) based on
1,254,737,326 outstanding shares of beneficial
interest 1,254,737
Portfolio shares of Class D (unlimited
authorization -- no par value) based on 9,796,527
outstanding shares of beneficial interest 9,797
Accumulated net realized gain on investments 152
----------
Total Net Assets -- 100.0% $1,264,686
==========
Net Asset Value, Offering and Redemption Price Per
Share -- Class A $ 1.00
==========
Net Asset Value, Offering and Redemption Price Per
Share --Class D $ 1.00
==========
</TABLE>
(A) Tri-party repurchase agreement
(B) Term repurchase agreement
The accompanying notes are an integral part of the financial statements.
3
<PAGE>
STATEMENT OF NET ASSETS
--------------------------------------------------------------------------------
SEI Liquid Asset Trust--June 30, 1995
GOVERNMENT SECURITIES PORTFOLIO
<TABLE>
-------------------------------------------------------------------------------
<CAPTION>
Description Par (000) Value (000)
-------------------------------------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 95.7%
Federal Farm Credit Bank
6.230%, 09/29/95 $ 3,150 $ 3,103
Federal Home Loan Bank
6.311%, 08/01/95 10,000 9,948
6.340%, 08/18/95 10,000 9,919
6.183%, 09/06/95 6,000 5,933
Federal Home Loan Mortgage
6.105%, 08/01/95 10,000 9,949
5.942%, 09/05/95 9,550 9,448
5.929%, 09/25/95 1,000 986
5.775%, 11/01/95 1,120 1,099
5.969%, 11/27/95 5,000 4,881
Federal National Mortgage
5.690%, 07/05/95 (A) 22,000 22,000
6.101%, 08/04/95 20,000 19,888
6.306%, 08/07/95 9,320 9,262
6.083%, 08/14/95 35,650 35,392
6.350%, 08/28/95 9,000 8,912
6.281%, 09/29/95 10,000 9,850
6.116%, 10/03/95 350 345
6.371%, 10/03/95 1,030 1,014
5.876%, 10/04/95 1,005 990
Student Loan Marketing
5.700%, 07/05/95 (A) 15,400 15,400
5.860%, 07/05/95 (A) 8,000 8,035
5.885%, 07/05/95 (A) 5,800 5,817
--------
Total U.S. Government Agency Obligations
(Cost $192,171,309) 192,171
--------
REPURCHASE AGREEMENT -- 4.7%
Lehman Brothers (B)
6.2%,dated 06/30/95, matures 07/03/95, repurchase price
$9,428,869 (collateralized by U.S. Treasury Note par
value $9,420,000, 6.50%, matures 04/30/97: market value
$9,615,915) 9,424 9,424
--------
Total Repurchase Agreement
(Cost $9,424,000) 9,424
--------
Total Investments -- 100.4%
(Cost $201,595,309) 201,595
--------
OTHER ASSETS AND LIABILITIES -- (0.4%)
Other Assets and Liabilities, Net (827)
--------
</TABLE>
<TABLE>
-------------------------------------------------------------------------------
<CAPTION>
Description Par (000) Value (000)
-------------------------------------------------------------------------------
<S> <C> <C>
NET ASSETS:
Portfolio Shares (unlimited authorization -- no par
value) based on 200,789,702 outstanding shares of
beneficial interest $ 200,790
Accumulated net realized loss on investments (21)
Distributions in excess of net investment income (1)
---------
Total Net Assets -- 100.0% $ 200,768
=========
Net Asset Value, Offering and Redemption Price per Share $ 1.00
=========
(A) Variable rate instrument. The rate reflected on the Statement of Net Assets
is the rate in effect on June 30, 1995.
(B) Tri-party repurchase agreement.
The accompanying notes are an integral part of the financial statements.
PRIME OBLIGATION PORTFOLIO
U.S. GOVERNMENT AGENCY
OBLIGATIONS -- 16.9%
Federal Home Loan Bank
6.238%, 07/10/95 $ 7,000 $ 6,989
6.315%, 08/23/95 14,385 14,257
Federal Home Loan Mortgage
5.958%, 09/08/95 3,940 3,896
Federal National Mortgage
5.690%, 07/05/95 (A) 30,000 30,000
6.225%, 07/17/95 10,000 9,973
6.706%, 07/26/95 30,000 29,867
5.945%, 11/13/95 10,000 9,786
Student Loan Marketing
5.700%, 07/05/95 (A) 24,000 24,000
5.710%, 07/05/95 (A) 7,000 7,001
5.720%, 07/05/95 (A) 15,000 15,004
5.720%, 07/05/95 (A) 8,000 8,000
---------
Total U.S. Government Agency Obligations
(Cost $158,773,184) 158,773
---------
COMMERCIAL PAPER -- 69.7%
American Express Credit
6.030%, 07/17/95 10,000 9,973
6.100%, 07/21/95 10,000 9,966
5.900%, 10/19/95 6,000 5,892
American General
6.000%, 07/26/95 10,000 9,958
American General Finance
5.940%, 07/31/95 10,000 9,951
5.700%, 09/15/95 10,000 9,880
</TABLE>
4
<PAGE>
--------------------------------------------------------------------------------
PRIME OBLIGATION PORTFOLIO
<TABLE>
--------------------------------------------------------------
<CAPTION>
Description Par (000) Value (000)
--------------------------------------------------------------
<S> <C> <C>
American Home Products (B)
5.970%, 08/09/95 $ 9,000 $ 8,942
Associates Corporation of North America
5.950%, 07/27/95 10,000 9,957
5.950%, 08/07/95 15,000 14,908
Bear Stearns Companies
5.950%, 07/10/95 10,000 9,985
5.980%, 07/11/95 8,000 7,987
5.840%, 08/04/95 15,000 14,917
Beneficial Corporation
6.000%, 07/06/95 15,000 14,988
5.940%, 08/09/95 10,000 9,936
5.900%, 09/21/95 10,000 9,866
Central & South West Corporation
6.010%, 08/04/95 10,000 9,943
5.870%, 09/22/95 15,000 14,797
Ciesco LP
5.970%, 07/13/95 10,000 9,980
5.930%, 08/11/95 20,000 19,865
CIT Group Holdings
6.100%, 07/05/95 10,000 9,993
6.100%, 07/24/95 10,000 9,961
5.680%, 12/06/95 10,000 9,751
Corporate Asset Funding
5.970%, 08/02/95 10,000 9,947
CSW Credit
5.950%, 08/15/95 5,000 4,963
Dean Witter Discover
6.000%, 07/26/95 8,000 7,967
Delaware Funding
5.960%, 07/18/95 4,966 4,952
5.950%, 08/08/95 10,000 9,937
5.970%, 08/14/95 15,000 14,890
Ford Motor Credit
6.000%, 07/20/95 15,000 14,953
5.950%, 09/05/95 15,000 14,836
5.740%, 09/29/95 8,000 7,885
General Electric Capital
5.920%, 09/05/95 15,000 14,836
5.700%, 09/20/95 15,000 14,808
5.700%, 11/02/95 5,000 4,902
IBM Credit
6.040%, 07/12/95 15,000 14,972
International Lease Finance
6.000%, 07/12/95 10,000 9,982
5.950%, 07/17/95 6,300 6,283
5.720%, 10/27/95 10,000 9,812
John Deere Capital
5.940%, 08/01/95 20,000 19,898
5.680%, 11/21/95 10,000 9,774
</TABLE>
<TABLE>
-----------------------------------------------------------------
<CAPTION>
Description Par (000) Value (000)
-----------------------------------------------------------------
<S> <C> <C>
McKenna Triangle
6.010%, 07/12/95 $ 4,300 $ 4,292
Merrill Lynch
5.950%, 07/17/95 20,000 19,947
Norwest Corporation
6.000%, 07/24/95 10,000 9,962
Norwest Financial
6.000%, 08/01/95 10,000 9,948
Philip Morris Companies
5.960%, 08/03/95 14,000 13,923
6.000%, 08/07/95 10,000 9,938
Prudential Funding
5.970%, 07/13/95 10,000 9,980
5.940%, 07/27/95 15,000 14,936
Puerto Rico Development Bank
6.020%, 07/19/95 8,000 7,976
6.010%, 07/20/95 20,000 19,937
Riverwood Funding
5.950%, 07/26/95 10,000 9,959
Sears Roebuck Acceptance
6.100%, 07/11/95 12,000 11,980
6.030%, 07/24/95 10,000 9,961
Toshiba America
5.950%, 09/08/95 5,000 4,943
5.870%, 11/13/95 22,150 21,662
Transamerica Finance
6.100%, 07/10/95 16,000 15,976
6.000%, 07/27/95 10,000 9,957
Whirlpool Corporation
6.020%, 08/01/95 5,000 4,974
Zeneca Wilmington Incorporation
6.000%, 07/05/95 9,000 8,994
--------
Total Commercial Paper
(Cost $656,238,515) 656,238
--------
CERTIFICATES OF DEPOSIT -- 3.0%
First Alabama Bank
6.120%, 07/21/95 11,000 11,000
First National Bank of Boston
6.020%, 07/18/95 10,000 10,000
West One Bank
6.000%, 10/02/95 7,000 7,000
--------
Total Certificates of Deposit
(Cost $28,000,000) 28,000
--------
FLOATING RATE INSTRUMENTS -- 8.8%
Allstate (A)
6.163%, 08/01/95 10,000 10,000
Corestates Capital (A)
6.090%, 01/05/96 10,000 10,000
People's Security Funding Agreement (A)(B)
6.360%, 08/01/95 33,000 33,000
</TABLE>
5
<PAGE>
STATEMENT OF NET ASSETS
--------------------------------------------------------------------------------
SEI Liquid Asset Trust--June 30, 1995
PRIME OBLIGATION PORTFOLIO
<TABLE>
------------------------------------------------------------------------------
<CAPTION>
Description Par (000) Value (000)
------------------------------------------------------------------------------
<S> <C> <C>
SMM Trust 1994-B (A)(B)
6.238%, 08/11/95 $ 10,000 $ 10,000
SMM Trust 1995-I (A)(B)
6.082%, 05/29/96 20,000 19,995
--------
Total Floating Rate Instrument
(Cost $82,994,703) 82,995
--------
REPURCHASE AGREEMENT -- 2.0%
Lehman Brothers (C)
6.20%, dated 06/30/95, mature 07/03/95, repurchase
price $18,694,654 (collateralized by U.S. Treasury
Note par value $3,684,000, 6.50%, matures 04/30/97:
U.S. Treasury Bills, par value $15,733,000, matures
12/28/95: total market value $19,069,632) 18,685 18,685
--------
Total Repurchase Agreement
(Cost $18,685,000) 18,685
--------
Total Investments -- 100.4%
(Cost $944,691,402) 944,691
--------
</TABLE>
<TABLE>
-------------------------------------------------------------------------------
<CAPTION>
Description Value (000)
-------------------------------------------------------------------------------
<S> <C> <C>
OTHER ASSETS AND LIABILITIES -- ( 0.4%)
Other Assets and Liabilities, Net $ (3,828)
--------
NET ASSETS:
Portfolio shares (unlimited authorization--no par value) based
on 940,882,322 outstanding shares of beneficial interest 940,882
Accumulated net realized loss on investments (19)
--------
Total Net Assets -- 100.0% $940,863
========
Net Asset Value, Offering and Redemption Price Per Share $ 1.00
========
</TABLE>
(A) Variable rate instrument. The rate reflected on the Statement of Net Assets
is the rate in effect on June 30,1995.
(B) Private Placement
(C) Tri-party repurchase agreement
The accompanying notes are an integral part of the financial statements.
6
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
--------------------------------------------------------------------------------
SEI Liquid Asset Trust--June 30, 1995
<TABLE>
<CAPTION>
------------- ------------
INSTITUTIONAL
CASH MONEY MARKET
PORTFOLIO PORTFOLIO
------------- ------------
<S> <C> <C>
ASSETS:
Cash $ 100 $ 100
----- -----
Total assets 100 100
----- -----
NET ASSETS:
Portfolio shares (unlimited authorization--no par
value) based on 100 outstanding shares of
beneficial interest 100 100
----- -----
Total net assets $ 100 $ 100
===== =====
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PRICE PER SHARE CLASS A $1.00 $1.00
===== =====
</TABLE>
The accompanying notes are an integral part of the financial statements.
7
<PAGE>
STATEMENT OF OPERATIONS (000)
--------------------------------------------------------------------------------
SEI Liquid Asset Trust--June 30, 1995
<TABLE>
<CAPTION>
---------- ---------- ---------- -------------
TREASURY GOVERNMENT PRIME INSTITUTIONAL
SECURITIES SECURITIES OBLIGATION CASH
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------- ---------- ---------- -------------
<S> <C> <C> <C> <C>
Interest Income $68,880 $13,256 $57,035 $101
------- ------- ------- ----
EXPENSES:
Management fee 5,388 1,016 4,236 8
Less management fees waived (1,227) (221) (884) --
Investment advisory fee 396 75 311 --
Custodian/wire agent fees 164 28 113 --
Professional fees 51 10 33 --
Trustee fees 23 4 18 --
Registration & filing fees 176 28 122 --
Distribution fees 581 106 436 --
Insurance 31 6 24 --
Other fees 67 12 29 --
------- ------- ------- ----
Total expenses 5,650 1,064 4,438 8
------- ------- ------- ----
NET INVESTMENT INCOME 63,230 12,192 52,597 93
------- ------- ------- ----
Net realized gain from security
transactions 240 39 55 --
------- ------- ------- ----
NET INCREASE IN NET ASSETS FROM
OPERATIONS $63,470 $12,231 $52,652 $ 93
======= ======= ======= ====
</TABLE>
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
8
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (000)
--------------------------------------------------------------------------------
SEI Liquid Asset Trust--for the fiscal years ended June 30
<TABLE>
<CAPTION>
------------------------- ------------------------
TREASURY GOVERNMENT
SECURITIES SECURITIES
------------------------- ------------------------
1995 1994 1995 1994
------------------------- ------------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 63,230 $ 51,915 $ 12,192 $ 10,615
Net realized gain from
security transactions 240 181 39 78
----------- ------------ ----------- -----------
Net increase in net
assets resulting from
operations 63,470 52,096 12,231 10,693
----------- ------------ ----------- -----------
DIVIDENDS DISTRIBUTED
FROM:
Net investment income:
Class A (62,948) (51,915) (12,193) (10,615)
Class D (282) -- -- --
Net realized gains:
Class A -- (91) -- --
Class D -- -- -- --
----------- ------------ ----------- -----------
Total dividends
distributed (63,230) (52,006) (12,193) (10,615)
----------- ------------ ----------- -----------
CAPITAL SHARE
TRANSACTIONS (ALL AT
$1.00 PER SHARE):
Class A:
Proceeds from shares
issued 9,652,814 11,652,775 1,544,000 2,184,077
Shares issued in lieu of
cash distributions 823 1,963 579 545
Cost of shares
repurchased (9,900,410) (12,373,107) (1,599,403) (2,436,978)
----------- ------------ ----------- -----------
Decrease in net assets
derived from Class A
transactions (246,773) (718,369) (54,824) (252,356)
----------- ------------ ----------- -----------
Class D
Proceeds from shares
issued 25,743 39 -- --
Shares issued in lieu of
cash distributions 2 -- -- --
Cost of shares
repurchased (15,971) (16) -- --
----------- ------------ ----------- -----------
Increase in net assets
derived from Class D
transactions 9,774 23 -- --
----------- ------------ ----------- -----------
Decrease in net assets
derived from capital
share transactions (236,999) (718,346) (54,824) (252,356)
----------- ------------ ----------- -----------
Net decrease in net
assets (236,759) (718,256) (54,786) (252,278)
----------- ------------ ----------- -----------
NET ASSETS:
Beginning of Period 1,501,445 2,219,701 255,554 507,832
----------- ------------ ----------- -----------
End of Period $ 1,264,686 $ 1,501,445 $ 200,768 $ 255,554
=========== ============ =========== ===========
</TABLE>
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
9
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (000)
--------------------------------------------------------------------------------
SEI Liquid Asset Trust--for the fiscal years ended June 30
<TABLE>
<CAPTION>
------------------------ --------------------
PRIME INSTITUTIONAL
OBLIGATION CASH
------------------------ --------------------
1995 1994 1995 1994
------------------------ --------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 52,597 $ 31,230 $ 93 $ 58
Net realized gain (loss) from
security transactions 55 (34) -- --
----------- ----------- --------- ---------
Net increase in net assets
resulting from operations 52,652 31,196 93 58
----------- ----------- --------- ---------
DIVIDENDS DISTRIBUTED FROM:
Net investment income:
Class A (52,597) (31,230) (93) (58)
Class D -- -- -- --
Net realized gains:
Class A -- -- -- --
Class D -- -- -- --
----------- ----------- --------- ---------
Total dividends distributed (52,597) (31,230) (93) (58)
----------- ----------- --------- ---------
CAPITAL SHARE TRANSACTIONS
(ALL AT $1.00 PER SHARE):
Class A:
Proceeds from shares issued 9,162,056 8,520,028 163,880 261,773
Shares issued in lieu of cash
distributions 11,333 7,599 -- --
Cost of shares repurchased (9,151,091) (8,782,192) (163,880) (261,773)
----------- ----------- --------- ---------
Increase (decrease) in net
assets derived from Class A
transactions 22,298 (254,565) -- --
----------- ----------- --------- ---------
Class D
Proceeds from shares issued -- -- -- --
Shares issued in lieu of cash
distributions -- -- -- --
Cost of shares repurchased -- -- -- --
----------- ----------- --------- ---------
Increase (decrease) in net
assets derived from Class D
transactions -- -- -- --
----------- ----------- --------- ---------
Increase (decrease) in net
assets derived from capital
share transactions 22,298 (254,565) -- --
----------- ----------- --------- ---------
Net increase (decrease) in
net assets 22,353 (254,599) -- --
----------- ----------- --------- ---------
NET ASSETS:
Beginning of Period 918,510 1,173,109 -- --
----------- ----------- --------- ---------
End of Period $ 940,863 $ 918,510 -- --
=========== =========== ========= =========
</TABLE>
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
10
<PAGE>
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
SEI Liquid Asset Trust--for the fiscal years ended June 30
For a Share Outstanding Throughout each Period
<TABLE>
<CAPTION>
Net Asset Distributions Distributions Ratio of
Value Net Realized and from Net from Net Asset Net Assets Expenses
Beginning Investment Unrealized Investment Realized Capital Value End Total End of to Average
of Period Income Gains on Securities Income Gains of Period Return Period (000) Net Assets
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
TREASURY SECURITIES
-------------------
CLASS A
1995 $1.00 $ 0.05 -- $ (0.05) -- $1.00 5.05% 1,254,888 0.44%
1994 1.00 0.03 -- (0.03) -- 1.00 3.00 1,501,510 0.44
1993 1.00 0.03 -- (0.03) -- 1.00 3.03 2,219,701 0.44
1992 1.00 0.05 -- (0.05) -- 1.00 4.69 2,304,153 0.44
1991 1.00 0.07 -- (0.07) -- 1.00 7.04 2,248,497 0.44
1990 1.00 0.08 -- (0.08) -- 1.00 8.41 2,076,845 0.44
1989 1.00 0.08 -- (0.08) -- 1.00 8.51 2,318,763 0.44
1988 1.00 0.06 -- (0.06) -- 1.00 6.56 2,671,802 0.44
1987 1.00 0.06 -- (0.06) -- 1.00 5.91 2,580,118 0.44
1986 1.00 0.07 -- (0.07) -- 1.00 7.40 2,041,343 0.44
CLASS D
1995 1.00 0.05 -- (0.05) -- 1.00 4.69 9,798 0.79
1994(1) 1.00 0.01 -- (0.01) -- 1.00 0.50** 23 0.79*
GOVERNMENT SECURITIES
---------------------
CLASS A
1995 $1.00 $ 0.05 -- $ (0.05) -- $1.00 5.18% 200,768 0.44%
1994 1.00 0.03 -- (0.03) -- 1.00 3.04 255,554 0.44
1993 1.00 0.03 -- (0.03) -- 1.00 3.05 507,832 0.44
1992 1.00 0.05 -- (0.05) -- 1.00 4.72 399,938 0.44
1991 1.00 0.07 -- (0.07) -- 1.00 7.08 520,187 0.44
1990 1.00 0.08 -- (0.08) -- 1.00 8.48 368,318 0.44
1989 1.00 0.08 -- (0.08) -- 1.00 8.69 467,056 0.44
1988 1.00 0.07 -- (0.07) -- 1.00 6.83 523,274 0.44
1987 1.00 0.06 -- (0.06) -- 1.00 5.99 479,968 0.44
1986 1.00 0.07 -- (0.07) -- 1.00 7.52 222,215 0.44
PRIME OBLIGATION
----------------
CLASS A
1995 $1.00 $ 0.05 -- $ (0.05) $1.00 5.20% 940,863 0.44%
1994 1.00 0.03 -- (0.03) -- 1.00 3.08 918,509 0.44
1993 1.00 0.03 -- (0.03) -- 1.00 3.07 1,173,109 0.44
1992 1.00 0.05 -- (0.05) -- 1.00 4.73 1,515,554 0.44
1991 1.00 0.07 -- (0.07) -- 1.00 7.36 1,729,845 0.44
1990 1.00 0.08 -- (0.08) -- 1.00 8.57 1,804,367 0.44
1989 1.00 0.09 -- (0.09) -- 1.00 8.85 2,160,859 0.44
1988 1.00 0.07 -- (0.07) -- 1.00 7.12 2,224,159 0.44
1987 1.00 0.06 -- (0.06) -- 1.00 6.08 1,851,072 0.44
1986 1.00 0.07 -- (0.07) -- 1.00 7.58 1,469,066 0.44
INSTITUTIONAL CASH*
-------------------
CLASS A
1995 $1.00 $0.0003 -- $ (0.0003) -- $1.00 4.94% -- 0.44%
1994 1.00 0.0003 -- (0.0003) -- 1.00 2.60 -- 0.44
1993 1.00 0.0003 -- (0.0003) -- 1.00 2.83 -- 0.44
1992 1.00 0.0002 -- (0.0002) -- 1.00 3.47 -- 0.44
1991 1.00 0.0003 0.0001 (0.0003) (0.0001) 1.00 7.12 -- 0.42
1990 1.00 0.0008 0.0003 (0.0008) (0.0003) 1.00 10.22 -- 0.44
1989 1.00 0.0007 0.0002 (0.0007) (0.0002) 1.00 8.49 -- 0.44
1988 1.00 0.0006 0.0001 (0.0006) (0.0001) 1.00 4.02 -- 0.44
1987(2) 1.00 0.0003 -- (0.0003) -- 1.00 5.48 -- 0.44
<CAPTION>
Ratio of
Net
Ratio of Ratio of Investment
Net Expenses Income
Investment to Average to Average
Income Net Assets Net Assets
to Average (Excluding (Excluding
Net Assets Waivers) Waivers)
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
TREASURY SECURITIES
-------------------
CLASS A
1995 4.93% 0.54% 4.83%
1994 2.91 0.51 2.84
1993 2.99 0.50 2.93
1992 4.60 0.50 4.50
1991 6.80 0.47 6.80
1990 8.10 0.45 8.10
1989 8.20 0.44 8.20
1988 6.40 0.44 6.40
1987 5.70 0.45 5.70
1986 7.20 0.44 7.20
CLASS D
1995 5.15 0.89 5.05
1994(1) 3.23* 0.98* 3.04*
GOVERNMENT SECURITIES
---------------------
CLASS A
1995 5.04% 0.53% 4.95%
1994 2.96 0.51 2.89
1993 3.00 0.50 2.94
1992 4.60 0.50 4.60
1991 6.80 0.48 6.70
1990 8.10 0.45 8.10
1989 8.30 0.46 8.30
1988 6.70 0.44 6.70
1987 5.80 0.46 5.80
1986 7.30 0.44 7.30
PRIME OBLIGATION
----------------
CLASS A
1995 5.21% 0.53% 5.12%
1994 3.03 0.51 2.96
1993 3.04 0.50 2.98
1992 4.70 0.49 4.60
1991 7.10 0.47 7.10
1990 8.30 0.45 8.30
1989 8.50 0.44 8.50
1988 6.90 0.44 6.90
1987 5.90 0.45 5.90
1986 7.30 0.44 7.30
INSTITUTIONAL CASH*
-------------------
CLASS A
1995 5.19% 0.44% 5.19%
1994 2.63 0.44 2.63
1993 2.66 0.44 2.66
1992 3.50 0.44 3.50
1991 5.90 0.42 5.90
1990 7.80 0.44 7.80
1989 6.80 0.44 6.80
1988 5.20 0.44 5.20
1987(2) 5.30 0.44 5.30
</TABLE>
(1) Treasury Securities Class D commenced operations on May 4, 1994.
(2) Institutional Cash Fund commenced operations on December 31, 1986.
* Annualized
** Not Annualized
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
11
<PAGE>
NOTES TO FINANCIAL STATEMENTS
-------------------------------------------------------------------------
SEI Liquid Asset Trust--June 30, 1995
1. ORGANIZATION
SEI Liquid Asset Trust (the "Trust") was organized as a Massachusetts business
trust under a Declaration of Trust dated July 20, 1981.
The Trust is registered under the Investment Company Act of 1940, as amended,
as a diversified, open-end management investment company with five portfolios:
the Treasury Securities Portfolio, the Government Securities Portfolio, the
Prime Obligation Portfolio, the Institutional Cash Portfolio and the Money Mar-
ket Portfolio (the "Portfolios"). The Trust is registered to offer Class A
shares of the portfolios and Class D (formerly the ProVantage Funds) shares of
the Treasury Securities Portfolio and the Prime Obligation Portfolio. The as-
sets of each Portfolio are segregated and a shareholder's interest is limited
to the Portfolio in which shares are held. As of June 30, 1995 the Money Market
Portfolio had not commenced operations.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by the
Trust.
Security Valuation--Investment securities are stated at amortized cost, which
approximates market value. Under this valuation method, purchase discounts and
premiums are accreted and amortized ratably to maturity and are included in in-
terest income.
Federal Income Taxes--It is each Portfolio's intention to continue to qualify
as a regulated investment company and distribute all of its taxable income. Ac-
cordingly, no provision for Federal income taxes is required.
Repurchase Agreements--Securities pledged as collateral for Repurchase Agree-
ments are held by the Portfolio's custodian bank until maturity of the Repur-
chase Agreement. Provisions of the Agreement and procedures adopted by the Man-
ager of the Trust ensure that the market value of the collateral, including ac-
crued interest thereon, is sufficient in the event of default by the
counterparty.
The Trust also invests in tri-party repurchase agreements. Securities held as
collateral for tri-party repurchase agreements are maintained in a segregated
account by the broker's custodian bank until maturity of the repurchase agree-
ment. Provisions of the agreements ensure that the market value of the collat-
eral, including accrued interest thereon, is sufficient in the event of de-
fault.
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 Trust may be delayed or limited.
Discount and Premium Amortization--All amortization is calculated using the
effective interest method over the holding period of the security. Amortization
of premiums and discounts is currently included in interest income.
Expenses--Expenses of the Trust which are not directly associated to a spe-
cific Portfolio are allocated on the basis of relative net asset value of the
affected Portfolios.
Classes--Expenses of a class of shares of beneficial interest are borne by
that class. Income, expenses and realized gains/losses are allocated to the re-
spective classes on the basis of relative daily net assets.
Other--Security transactions are accounted for on the date the securities are
purchased or sold. Costs used in determining realized gains and losses on the
sale of investment securities are those of the specific securities sold. Dis-
tributions from net investment income are declared on a daily basis and are
payable on the first business day of the following month. Any net realized cap-
ital gains of the Portfolios are distributed to the shareholders of the af-
fected Portfolios annually.
3. MANAGEMENT, INVESTMENT ADVISORY AND DISTRIBUTION AGREEMENTS
SEI Financial Management Corporation (the "Manager") provided management, ad-
ministrative and shareholder services to the Trust for an annual fee, which is
calculated daily and paid monthly, of .42% of the average daily net assets of
each Portfolio with the exception of the Institutional Cash Portfolio for which
the fee is calculated at an annual rate of .36%. The Manager has agreed to bear
certain expenses of the Trust so that the total expenses do not exceed .44% of
average daily net assets annually. For the fiscal year ended June 30, 1995 the
manage-
12
<PAGE>
--------------------------------------------------------------------------------
ment fee was $10,636,000 of which $2,332,000 was waived by the Manager in ac-
cordance with the expense limitation discussed above.
In addition, the Trust and the Manager have entered into a separate Transfer
Agent Agreement with respect to Class D shares under which DST Systems, Inc. is
entitled to a fee of .15% of the average daily net assets of Class D plus out-
of-pocket costs.
Wellington Management Company serves as the Investment Adviser of the Trust.
For its services, the Investment Adviser receives an annual fee equal to .075%
of the Trust's average daily net asset value up to $500 million and .02% of
such net asset value in excess of $500 million. At June 30, 1995, the Invest-
ment Adviser was a holder of beneficial interest in the Trust. The fees of the
Investment Adviser are paid monthly.
SEI Financial Services Company ("SFS") acts as the distributor of the shares
of the Trust under a Distribution Agreement and Distribution Plans which pro-
vide for the Trust to reimburse SFS for its distribution expenses. Reimburse-
ment for expenses incurred by SFS may not exceed .30% of a Portfolio's average
daily net assets. Distribution expenses include, among other items, the compen-
sation and benefits of sales personnel incurred by SFS in connection with the
promotion and sale of shares. Distribution expenses not attributable to a spe-
cific Portfolio are allocated among the Portfolios on the basis of their rela-
tive average daily net assets.
In addition, the Treasury Securities Portfolio and the Prime Obligation Port-
folio have registered an additional class of shares, Class D shares, for which
a separate distribution plan has been adopted. The Class D Distribution Plan
(the "Class D" Plan) provides for additional payments to the distributor of
.25% of each of the Class D shares average daily net assets. As of the fiscal
year end, SFS is taking a fee under the Class D Plan of only .20% of each of
the Class D average daily net assets.
4. TRANSACTIONS WITH AFFILIATES
Certain officers and/or Trustees of the Trust are also officers and/or Direc-
tors of the Manager or SFS. Compensation of officers and affiliated Trustees of
the Trust is paid by the Manager and/or SFS.
CoreStates N.A., which is a Trust shareholder, acts as Custodian and Wire
Agent for the Trust.
5. CAPITAL LOSS CARRYOVERS
At June 30, 1995, the Portfolios had a capital loss carryover, to the extent
provided in regulations, for Federal income tax purposes as follows:
<TABLE>
<S> <C>
Government Securities Portfolio: $16,295 expiring in 2001
Prime Obligation
Portfolio: $67,346 expiring in 2000
5,140 expiring in 2003
</TABLE>
13
<PAGE>
--------------------
SEI LIQUID ASSET TRUST
--------------------
ANNUAL REPORT
--------------------
June 30, 1995
Robert A. Nesher
Chairman
TRUSTEES
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
Robert B. Carroll
Vice President, Assistant Secretary
Todd Cipperman
Vice President, Assistant Secretary
Joseph M. Lydon
Vice President, Assistant Secretary
Sandra K. Orlow
Vice President, Assistant Secretary
Kevin P. Robins
Vice President, Assistant Secretary
Kathryn L. Stanton
Vice President, Assistant Secretary
Richard W. Grant
Secretary
INVESTMENT ADVISER
Wellington Management Company
MANAGER AND SHAREHOLDER SERVICING AGENT
SEI Financial Management Corporation
DISTRIBUTOR
SEI Financial Services Company
LEGAL COUNSEL
Morgan, Lewis & Bockius
INDEPENDENT PUBLIC 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 information call 1--800-DIAL-SEI/1-800-342-5734
14
<PAGE>
NOTICE TO SHAREHOLDERS
--------------------------------------------------------------------------------
SEI Liquid Asset Trust--June 30, 1995 Unaudited
FOR TAXPAYERS FILING ON A CALENDAR YEAR BASIS, THIS NOTICE IS FOR INFORMATIONAL
PURPOSES ONLY.
Dear SEI Liquid Asset Trust Shareholders:
For the fiscal year ended June 30, 1995, each portfolio is designating long
term capital gains, qualifying dividends and exempt income with regard to dis-
tributions paid during the year as follows:
<TABLE>
<CAPTION>
(A) (B)
LONG TERM ORDINARY (C) (E)
CAPITAL GAINS INCOME TOTAL (D) TAX
DISTRIBUTIONS DISTRIBUTIONS DISTRIBUTIONS QUALIFYING EXEMPT
PORTFOLIO (TAX BASIS) (TAX BASIS) (TAX BASIS) DIVIDENDS (1) INTEREST
--------- ------------- ------------- ------------- ------------- --------
<S> <C> <C> <C> <C> <C>
Treasury Securities
Portfolio 0% 100% 100% 0% 0%
Government Securities
Portfolio 0% 100% 100% 0% 0%
Prime Obligation
Portfolio 0% 100% 100% 0% 0%
Institutional Cash
Portfolio 0% 100% 100% 0% 0%
</TABLE>
(1) Qualifying dividends represent dividends which qualify for the corporate
dividends received deduction.
* Items (A) and (B) are based on a percentage of the portfolio's total distri-
butions.
** Items (D) and (E) are based on a percentage of ordinary income distributions
of the portfolio.
Please consult your tax adviser for proper treatment of this information.
