SEMI-ANNUAL REPORT AS OF
DECEMBER 31, 1997 (UNAUDITED)
SEI LIQUID
ASSET TRUST
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Treasury Securities Portfolio
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Government Securities Portfolio
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Prime Obligation Portfolio
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[Logo Omitted]
<PAGE>
TABLE OF CONTENTS
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STATEMENT OF NET ASSETS ................................................ 2
STATEMENT OF OPERATIONS ................................................ 6
STATEMENT OF CHANGES IN NET ASSETS ..................................... 7
FINANCIAL HIGHLIGHTS ................................................... 9
NOTES TO FINANCIAL STATEMENTS .......................................... 10
<PAGE>
STATEMENT OF NET ASSETS
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SEI LIQUID ASSET TRUST--DECEMBER 31, 1997 (UNAUDITED)
TREASURY SECURITIES PORTFOLIO
- ------------------------------------------------------------
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 17.9%
U.S. Treasury Notes
5.125%, 02/28/98 $ 14,000 $ 13,985
5.125%, 03/31/98 15,000 14,980
6.125%, 03/31/98 15,000 15,014
5.875%, 04/30/98 19,000 18,999
6.125%, 08/31/98 13,500 13,529
6.000%, 09/30/98 13,000 13,021
5.875%, 10/31/98 30,000 30,044
5.125%, 12/31/98 14,000 13,920
5.750%, 12/31/98 14,000 14,003
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Total U.S. Treasury Obligations
(Cost $147,495) 147,495
--------
REPURCHASE AGREEMENTS -- 82.3%
BZW (A)
6.50%, dated 12/31/97, matures
01/02/98, repurchase price
$160,057,778 (collateralized
by U.S. Treasury STRIPS,
ranging in par value
$34,500,000-$74,080,000,
08/15/20-11/15/21; with total
market value $163,200,832) 160,000 160,000
Greenwich Capital Markets (A)
6.75%, dated 12/31/97, matures
01/02/98, repurchase price
$93,034,875 (collateralized
by U.S. Treasury Notes, ranging
in par value $13,870,000-
$80,590,000, 12/31/99,
5.625%-7.750%; with
total market value $94,863,146) 93,000 93,000
Lanston (A)
6.50%, dated 12/31/97, matures
01/02/98, repurchase price
$10,003,611 (collateralized
by U.S. Treasury Note, par value
$10,112,000, 6.125%, matures
05/15/98; with total market
value $10,202,635) 10,000 10,000
Lehman Brothers (A)
6.57%, dated 12/31/97, matures
01/02/98, repurchase price
$26,003,488 (collateralized
by U.S. Treasury STRIPS,
ranging in par value
$18,278,000-$24,485,000,
11/15/00-11/15/15; with total
market value $27,106,348) 25,994 25,994
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FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Morgan Stanley (A)
7.525%, dated 12/31/97,
matures 01/02/98, repurchase
price $75,031,354
(collateralized by U.S.
Treasury obligations,
par value $114,000-
$56,420,000, 5.00%-8.875%,
02/15/99-08/15/17; with
total market value
$76,500,708) $ 75,000 $ 75,000
Paribus (A)
6.75%, dated 12/31/97,
matures 01/02/98, repurchase
price $170,063,750
(collateralized by U.S.
Treasury Notes, par value
$9,010,000-$50,000,000,
5.658%-7.250%, 02/15/98-
02/28/01; with total
market value $173,244,589) 170,000 170,000
Salomon Brothers (A)
6.75%, dated 12/31/97,
matures 01/02/98, repurchase
price $145,054,375
(collateralized by U.S.
Treasury Note, par value
$146,832,000, 5.625%,
matures 10/31/99; with
total market value
$147,949,194) 145,000 145,000
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Total Repurchase Agreements
(Cost $678,994) 678,994
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Total Investments -- 100.2%
(Cost $826,489) 826,489
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OTHER ASSETS AND LIABILITIES -- (0.2%)
Other Assets and Liabilities, Net (1,973)
--------
NET ASSETS:
Portfolio Shares of Class A
(unlimited authorization
-- no par value) based on
824,307,470 outstanding shares
of beneficial interest 824,307
Portfolio Shares of Class D
(unlimited authorization
-- no par value) based on
232,501 outstanding shares of
beneficial interest 232
Undistributed net investment income 246
Accumulated net realized loss
on investments (269)
--------
Total Net Assets -- 100.0% $824,516
========
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
========
(A) TRI-PARTY REPURCHASE AGREEMENT
STRIPS -- SEPARATE TRADING OF REGISTERED INTEREST AND PRINCIPAL OF SECURITIES
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
2
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GOVERNMENT SECURITIES PORTFOLIO
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FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 89.7%
FHLB
5.707%, 02/27/98 $ 4,750 $ 4,710
FHLMC
5.731%, 02/13/98 25,000 24,833
FHLMC MTN
5.630%, 01/23/98 20,000 19,996
FNMA
5.779%, 03/12/98 15,000 14,836
5.756%, 03/13/98 15,000 14,834
5.777%, 03/13/98 13,148 13,002
5.747%, 03/30/98 10,000 9,864
SLMA (A)
5.609%, 01/05/98 22,000 22,000
5.619%, 01/05/98 15,400 15,400
5.779%, 01/05/98 8,000 8,001
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Total U.S. Government Agency Obligations
(Cost $147,476) 147,476
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REPURCHASE AGREEMENTS -- 10.4%
Lehman Brothers (B)
6.57%, dated 12/31/97,
matures 01/02/98, repurchase
price $2,052,749
(collateralized by U.S.
Treasury STRIPS, par value
$6,258,000, 11/15/15;
with total market value
$2,175,469) 2,052 2,052
Morgan Stanley (C)
7.70%, dated 12/31/97,
matures 01/02/98, repurchase
price $15,006,417
(collateralized by FHLMC,
par value $2,254,287-
$4,101,633, 6.500%-9.500%
01/01/04-08/01/20; with total
market value $15,535,144) 15,000 15,000
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Total Repurchase Agreements
(Cost $17,052) 17,052
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Total Investments -- 100.1%
(Cost $164,528) 164,528
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OTHER ASSETS AND LIABILITIES -- (0.1%)
Other Assets and Liabilities, Net (134)
--------
- -------------------------------------------------------------
DESCRIPTION VALUE (000)
- -------------------------------------------------------------
NET ASSETS:
Portfolio Shares (unlimited
authorization -- no par value)
based on 164,432,196 outstanding
shares of beneficial interest $164,432
Overdistributed net investment income (4)
Accumulated net realized loss
on investments (34)
--------
Total Net Assets -- 100.0% $164,394
========
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 DECEMBER 31, 1997. THE MATURITY DATE SHOWN IS THE
RESET DATE.
(B) TRI-PARTY REPURCHASE AGREEMENT
(C) TERM REPURCHASE AGREEMENT
FHLB -- FEDERAL HOME LOAN BANK
FHLMC -- FEDERAL HOME LOAN MORTGAGE CORPORATION
FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION
MTN -- MEDIUM TERM NOTE
SLMA -- STUDENT LOAN MARKETING ASSOCIATION
STRIPS -- SEPARATE TRADING OF REGISTERED INTEREST AND PRINCIPAL OF SECURITIES
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
3
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STATEMENT OF NET ASSETS
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SEI LIQUID ASSET TRUST--DECEMBER 31, 1997 (UNAUDITED)
PRIME OBLIGATION PORTFOLIO
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FACE
DESCRIPTION AMOUNT (000) VALUE (000)
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COMMERCIAL PAPER -- 64.8%
BANKS -- 2.4%
NationsBank Corporation
5.710%, 03/13/98 $10,000 $ 9,887
NationsBank of North America
5.670%, 03/20/98 15,000 14,816
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24,703
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FINANCIAL SERVICES -- 59.7%
American General Finance
5.710%, 03/20/98 15,000 14,814
Aon Corporation
6.650%, 01/13/98 10,000 9,978
5.770%, 03/09/98 10,500 10,387
5.940%, 03/18/98 10,000 9,878
Associates of North America
5.520%, 01/30/98 15,000 14,933
5.580%, 02/24/98 15,000 14,874
Avco Financial Service
5.710%, 03/04/98 11,500 11,387
Beneficial Corporation
5.580%, 02/24/98 10,000 9,916
5.720%, 03/03/98 15,000 14,855
Centric Capital Corporation (B)
5.950%, 02/23/98 20,000 19,825
Centric Funding
5.550%, 01/02/98 7,000 6,999
Cigna Corporation
5.940%, 01/21/98 27,000 26,911
Clipper Receivables Corporation (B)
5.830%, 02/17/98 27,000 26,795
Commoloco
5.610%, 03/16/98 3,500 3,460
5.600%, 04/15/98 10,000 9,838
Corporate Receivable Corporation (B)
5.830%, 02/04/98 10,000 9,945
Delaware Funding Corporation
5.950%, 01/16/98 15,000 14,963
5.770%, 02/17/98 15,000 14,887
Enterprise Funding Corporation
5.880%, 01/30/98 14,510 14,441
5.580%, 02/11/98 6,257 6,217
Fcar Owner Trust
5.710%, 03/06/98 27,000 26,726
Fleet Funding (B)
5.950%, 01/30/98 10,368 10,318
General Electric Capital Corporation
5.670%, 03/16/98 10,000 9,884
5.580%, 04/15/98 18,000 17,710
General Motors Acceptance
Corporation
5.560%, 01/14/98 10,000 9,980
5.575%, 03/16/98 10,000 9,885
5.740%, 03/20/98 12,000 11,855
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FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- -------------------------------------------------------------
General Re
5.760%, 03/27/98 $15,000 $ 14,796
Island Finance PR
5.560%, 01/28/98 6,000 5,975
5.900%, 02/12/98 3,750 3,724
5.700%, 02/27/98 10,000 9,910
J.P. Morgan
5.720%, 03/23/98 18,500 18,262
Kitty Hawk Funding (B)
5.750%, 03/02/98 27,000 26,741
Metlife Funding
5.680%, 03/03/98 20,149 19,955
Morgan Stanley Dean
Witter Discovery
5.780%, 02/17/98 27,000 26,796
New Center Asset Trust
5.780%, 03/16/98 27,000 26,679
Park Avenue Receivables (B)
5.710%, 02/13/98 23,096 22,939
Prefco
5.800%, 02/18/98 10,000 9,923
Prudential Funding
5.550%, 01/20/98 20,000 19,941
5.700%, 03/16/98 10,000 9,883
Safeco Credit Corporation
5.780%, 03/12/98 5,000 4,944
5.760%, 03/16/98 10,000 9,882
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592,011
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FOOD, BEVERAGE & TOBACCO -- 2.7%
Colgate-Palmolive Company
5.700%, 03/04/98 27,000 26,735
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Total Commercial Paper
(Cost $643,449) 643,449
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U.S. GOVERNMENT AGENCY OBLIGATIONS -- 8.5%
FNMA (A)
5.609%, 01/05/98 30,000 30,000
SLMA (A)
5.629%, 01/05/98 7,000 7,000
5.619%, 01/05/98 24,000 24,000
5.639%, 01/05/98 23,000 23,001
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Total U.S. Government Agency Obligations
(Cost $84,001) 84,001
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CERTIFICATES OF DEPOSIT -- 10.1%
Bankers Trust
6.000%, 12/10/98 10,000 10,000
Chase Manhattan Bank
5.710%, 03/05/98 10,000 10,000
Comerica Bank
5.970%, 10/27/98 15,000 14,995
4
<PAGE>
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- ------------------------------------------------------------
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
First of America Bank MI
5.950%, 01/12/98 $25,000 $ 25,000
Key Bank of North America
5.900%, 09/17/98 10,000 9,994
Regions Bank
5.820%, 04/17/98 10,000 10,001
Wilmington Trust
5.850%, 04/15/98 15,000 15,000
5.850%, 05/29/98 5,000 5,000
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Total Certificates of Deposit
(Cost $99,990) 99,990
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BANK NOTE -- 0.5%
Morgan Guaranty Trust of NY
5.965%, 06/22/98 5,000 4,999
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Total Bank Note
(Cost $4,999) 4,999
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FLOATING RATE INSTRUMENTS -- 10.1%
Allstate (A)
5.788%, 01/01/98 10,000 10,000
Asset Backed Securities
Investors Trust 97-E (A)
5.981%, 08/17/98 13,700 13,700
People's Security Funding
Agreement (A) (B)
5.880%, 01/01/98 25,000 25,000
PNC Bank N.A. (A)
5.600%, 09/23/98 20,000 19,990
SMM-Trust 97-L (A) (B)
6.000%, 05/29/98 10,000 10,000
Travelers Insurance (A) (B)
5.808%, 01/02/98 14,000 14,000
5.956%, 04/01/98 7,000 7,000
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Total Floating Rate Instruments
(Cost $99,690) 99,690
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CORPORATE BOND -- 0.8%
Travelers Group
5.750%, 04/15/98 7,500 7,499
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Total Corporate Bond
(Cost $7,499) 7,499
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FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
REPURCHASE AGREEMENT -- 5.3%
Lehman Brothers (C)
6.80%, dated 12/31/97
matures 01/02/98, repurchase
price $52,419,796
(collateralized by FNMA's,
ranging in par value
$21,610,000-$38,755,000,
6.600%-8.000%,
12/18/15-08/18/21; with
total market value $53,427,443) $52,400 $ 52,400
--------
Total Repurchase Agreement
(Cost $52,400) 52,400
--------
Total Investments -- 100.1%
(Cost $992,028) 992,028
--------
OTHER ASSETS AND LIABILITIES -- (0.1%)
Other Assets and Liabilities, Net (1,175)
--------
NET ASSETS:
Portfolio Shares (unlimited
authorization -- no par value)
based on 990,881,095 outstanding
shares of beneficial interest 990,879
Undistributed net investment income 55
Accumulated net realized loss
on investments (81)
--------
Total Net Assets -- 100.0% $990,853
========
Net Asset Value, Offering and Redemption
Price Per Share $1.00
========
(A) VARIABLE RATE INSTRUMENT. THE RATE REFLECTION THE THE STATEMENT OF
NET ASSETS IS THE RATE IN EFFECT ON DECEMBER 31, 1997. THE MATURITY
DATE SHOWN IS THE RESET DATE.
(B) PRIVATE PLACEMENT
(C) TERM REPURCHASE AGREEMENT
FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION
SLMA -- STUDENT LOAN MARKETING ASSOCIATION
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
5
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<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS (000)
====================================================================================================================================
SEI LIQUID ASSET TRUST--FOR THE PERIOD ENDED DECEMBER 31, 1997 (UNAUDITED)
------------ ------------ ------------
TREASURY GOVERNMENT PRIME
SECURITIES SECURITIES OBLIGATION
PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ -------------
<S> <C> <C> <C>
Interest Income $19,907 $4,100 $26,327
------- ------ -------
EXPENSES:
Management fee 1,488 310 1,932
Less management fees waived (141) (26) (161)
Investment advisory fee 129 24 159
Shareholder servicing fee -- Class A 885 185 1,151
Less shareholder servicing fee waived -- Class A (885) (185) (1,151)
Distribution fee -- Class D -- -- --
Less distribution fee waived -- Class D -- -- --
Custodian/wire agent fees 33 9 45
Professional fees 19 5 25
Trustee fees 4 1 5
Printing 3 -- 2
Insurance 2 -- 3
Rating 9 -- --
Miscellaneous 9 2 9
------- ------ -------
Total expenses 1,555 325 2,019
------- ------ -------
NET INVESTMENT INCOME 18,352 3,775 24,308
------- ------ -------
Net realized gain from security transactions -- 1 24
------- ------ -------
NET INCREASE IN NET ASSETS FROM OPERATIONS $18,352 $3,776 $24,332
======= ====== =======
<FN>
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
</FN>
</TABLE>
6
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<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS (000)
====================================================================================================================================
SEI LIQUID ASSET TRUST--FOR THE SIX-MONTH PERIOD ENDED DECEMBER 31, 1997 (UNAUDITED) AND THE YEAR ENDED JUNE 30, 1997
------------------------ -----------------------
TREASURY GOVERNMENT
SECURITIES SECURITIES
PORTFOLIO PORTFOLIO
------------------------ -----------------------
07/01/97- 07/01/96- 07/01/97- 07/01/96-
12/31/97 06/30/97 12/31/97 06/30/97
------------------------ -----------------------
OPERATIONS:
<S> <C> <C> <C> <C>
Net investment income $ 18,352 $ 36,212 $ 3,775 $ 8,541
Net realized gain (loss) from security transactions -- (121) 1 --
---------- ---------- --------- ---------
Net increase in net assets resulting from operations 18,352 36,091 3,776 8,541
---------- ---------- --------- ---------
DIVIDENDS DISTRIBUTED FROM:
Net investment income:
Class A (18,346) (36,201) (3,775) (8,541)
Class D (6) (11) -- --
---------- ---------- --------- ---------
Total dividends distributed (18,352) (36,212) (3,775) (8,541)
---------- ---------- --------- ---------
CAPITAL SHARE TRANSACTIONS (ALL AT $1.00 PER SHARE):
Class A:
Proceeds from shares issued 2,380,449 4,199,778 695,706 830,772
Reinvestment of cash distributions 355 663 953 818
Cost of shares redeemed (2,262,752) (4,326,481) (680,872) (852,117)
---------- ---------- --------- ---------
Increase (decrease) in net assets derived from
Class A transactions 118,052 (126,040) 15,787 (20,527)
---------- ---------- --------- ---------
Class D:
Proceeds from shares issued 71 230 -- --
Reinvestment of cash distributions 5 10 -- --
Cost of shares redeemed (60) (243) -- --
---------- ---------- --------- ---------
Increase (decrease) in net assets derived from
Class D transactions 16 (3) -- --
---------- ---------- --------- ---------
Net increase (decrease) in net assets derived from
capital share transactions 118,068 (126,043) 15,787 (20,527)
---------- ---------- --------- ---------
Net increase (decrease) in net assets 118,068 (126,164) 15,788 (20,527)
---------- ---------- --------- ---------
NET ASSETS:
Beginning of Period 706,448 832,612 148,606 169,133
---------- ---------- --------- ---------
End of Period $ 824,516 $ 706,448 $ 164,394 $ 148,606
========== ========== ========= =========
<FN>
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
</FN>
</TABLE>
7
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS (000)
====================================================================================================================================
SEI LIQUID ASSET TRUST--FOR THE SIX-MONTH PERIOD ENDED DECEMBER 31, 1997 (UNAUDITED) AND FOR THE YEAR ENDED JUNE 30, 1997
--------------------------
PRIME
OBLIGATION
PORTFOLIO
--------------------------
07/01/97- 07/01/96-
12/31/97 06/30/97
--------------------------
OPERATIONS:
<S> <C> <C>
Net investment income $ 24,308 $ 41,823
Net realized gain (loss) from security transactions 24 (40)
---------- ----------
Net increase in net assets resulting from operations 24,332 41,783
---------- ----------
DIVIDENDS DISTRIBUTED FROM:
Net investment income:
Class A (24,308) (41,821)
Class D -- --
---------- ----------
Total dividends distributed (24,308) (41,821)
---------- ----------
CAPITAL SHARE TRANSACTIONS (ALL AT $1.00 PER SHARE):
Class A:
Proceeds from shares issued 3,190,927 6,067,983
Reinvestment of cash distributions 6,674 10,339
Cost of shares redeemed (3,030,042) (6,002,866)
---------- ----------
Increase in net assets derived from Class A transactions 167,559 75,456
---------- ----------
Class D:
Proceeds from shares issued -- --
Reinvestment of cash distributions -- --
Cost of shares redeemed -- --
---------- ----------
Increase in net assets derived from Class D transactions -- --
---------- ----------
Net increase in net assets derived
from capital share transactions 167,559 75,456
---------- ----------
Net increase in net assets 167,583 75,418
---------- ----------
NET ASSETS:
Beginning of Period 823,270 747,852
---------- ----------
End of Period $ 990,853 $ 823,270
========== ==========
<FN>
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
</FN>
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
====================================================================================================================================
SEI LIQUID ASSET TRUST-- FOR THE PERIODS ENDED JUNE 30 AND THE SIX-MONTH PERIOD ENDED DECEMBER 31, 1997 (UNAUDITED)
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
RATIO OF
RATIO OF NET
RATIO OF EXPENSES INVEST-
DISTRI- NET RATIO OF NET TO MENT
DISTRI- BUTIONS ASSET NET EXPENSES INVEST- AVERAGE INCOME TO
NET ASSET REALIZED AND BUTIONS FROM VALUE ASSETS TO MENT TO NET AVERAGE
VALUE NET UNREALIZED FROM NET REALIZED END END OF AVERAGE AVERAGE ASSETS NET ASSETS
BEGINNING INVESTMENT GAINS ON INVESTMENT CAPITAL OF TOTAL PERIOD NET NET (EXCLUDING (EXCLUDING
OF PERIOD INCOME SECURITIES INCOME GAINS PERIOD RETURN (000) ASSETS ASSETS WAIVERS) WAIVERS)
- ------------------------------------------------------------------------------------------------------------------------------------
- -------------------
TREASURY SECURITIES
- -------------------
CLASS A
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1997+ $1.00 $0.03 -- $(0.03) -- $1.00 5.28%* $ 824,284 0.44%* 5.18%* 0.73%* 4.89%*
1997 1.00 0.05 -- (0.05) -- 1.00 5.10 706,232 0.44 4.98 0.74 4.68
1996 1.00 0.05 -- (0.05) -- 1.00 5.37 832,393 0.44 5.27 0.52 5.19
1995 1.00 0.05 -- (0.05) -- 1.00 5.05 1,254,888 0.44 4.93 0.54 4.83
1994 1.00 0.03 -- (0.03) -- 1.00 3.00 1,501,510 0.44 2.91 0.51 2.84
1993 1.00 0.03 -- (0.03) -- 1.00 3.03 2,219,701 0.44 2.99 0.50 2.93
1992 1.00 0.05 -- (0.05) -- 1.00 4.69 2,304,153 0.44 4.60 0.50 4.50
1991 1.00 0.07 -- (0.07) -- 1.00 7.04 2,248,497 0.44 6.80 0.47 6.80
1990 1.00 0.08 -- (0.08) -- 1.00 8.41 2,076,845 0.44 8.10 0.45 8.10
1989 1.00 0.08 -- (0.08) -- 1.00 8.51 2,318,763 0.44 8.20 0.44 8.20
1988 1.00 0.06 -- (0.06) -- 1.00 6.56 2,671,802 0.44 6.40 0.44 6.40
CLASS D
1997+ $1.00 $0.02 -- $(0.02) -- $1.00 4.92%* $ 232 0.79%* 4.84%* 1.08%* 4.55%*
1997 1.00 0.05 -- (0.05) -- 1.00 4.73 216 0.79 4.64 1.09 4.34
1996 1.00 0.05 -- (0.05) -- 1.00 5.01 219 0.79 4.92 0.87 4.84
1995 1.00 0.05 -- (0.05) -- 1.00 4.69 9,798 0.79 5.15 0.89 5.05
1994(1) 1.00 0.01 -- (0.01) -- 1.00 0.50** 23 0.79* 3.23* 0.98* 3.04*
- ---------------------
GOVERNMENT SECURITIES
- ---------------------
CLASS A
1997+ $1.00 $0.03 -- $(0.03) -- $1.00 5.20%* $ 164,394 0.44%* 5.11%* 0.73%* 4.82%*
1997 1.00 0.05 -- (0.05) -- 1.00 5.09 148,606 0.44 4.98 0.71 4.71
1996 1.00 0.05 -- (0.05) -- 1.00 5.30 169,133 0.44 5.19 0.54 5.09
1995 1.00 0.05 -- (0.05) -- 1.00 5.18 200,768 0.44 5.04 0.53 4.95
1994 1.00 0.03 -- (0.03) -- 1.00 3.04 255,554 0.44 2.96 0.51 2.89
1993 1.00 0.03 -- (0.03) -- 1.00 3.05 507,832 0.44 3.00 0.50 2.94
1992 1.00 0.05 -- (0.05) -- 1.00 4.72 399,938 0.44 4.60 0.50 4.60
1991 1.00 0.07 -- (0.07) -- 1.00 7.08 520,187 0.44 6.80 0.48 6.70
1990 1.00 0.08 -- (0.08) -- 1.00 8.48 368,318 0.44 8.10 0.45 8.10
1989 1.00 0.08 -- (0.08) -- 1.00 8.69 467,056 0.44 8.30 0.46 8.30
1988 1.00 0.07 -- (0.07) -- 1.00 6.83 523,274 0.44 6.70 0.44 6.70
- ----------------
PRIME OBLIGATION
- ----------------
CLASS A
1997+ $1.00 $0.03 -- $(0.03) -- $1.00 5.38%* $ 990,853 0.44%* 5.28%* 0.72%* 5.00%*
1997 1.00 0.05 -- (0.05) -- 1.00 5.20 823,270 0.44 5.08 0.74 4.78
1996 1.00 0.05 -- (0.05) -- 1.00 5.39 747,852 0.44 5.27 0.53 5.18
1995 1.00 0.05 -- (0.05) -- 1.00 5.20 940,863 0.44 5.21 0.53 5.12
1994 1.00 0.03 -- (0.03) -- 1.00 3.08 918,509 0.44 3.03 0.51 2.96
1993 1.00 0.03 -- (0.03) -- 1.00 3.07 1,173,109 0.44 3.04 0.50 2.98
1992 1.00 0.05 -- (0.05) -- 1.00 4.73 1,515,554 0.44 4.70 0.49 4.60
1991 1.00 0.07 -- (0.07) -- 1.00 7.36 1,729,845 0.44 7.10 0.47 7.10
1990 1.00 0.08 -- (0.08) -- 1.00 8.57 1,804,367 0.44 8.30 0.45 8.30
1989 1.00 0.09 -- (0.09) -- 1.00 8.85 2,160,859 0.44 8.50 0.44 8.50
1988 1.00 0.07 -- (0.07) -- 1.00 7.12 2,224,159 0.44 6.90 0.44 6.90
<FN>
(1) TREASURY SECURITIES CLASS D COMMENCED OPERATIONS ON MAY 4, 1994.
+ RATIOS FOR SEMI-ANNUAL PERIOD ENDED DECEMBER 31, 1997 (UNAUDITED).
* ANNUALIZED
** NOT ANNUALIZED.
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
</FN>
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
9
<PAGE>
NOTES TO FINANCIAL STATEMENTS
================================================================================
SEI LIQUID ASSET TRUST -- DECEMBER 31, 1997 (UNAUDITED)
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 four
portfolios: the Treasury Securities Portfolio, the Government Securities
Portfolio, the Prime Obligation Portfolio, and the Money Market Portfolio (the
"Portfolios"). The Trust is registered to offer Class A shares of the portfolios
and Class D shares of the Treasury Securities Portfolio. As of December 31, 1997
the Money Market Portfolio had not commenced operations. The assets of each
Portfolio are segregated and a shareholder's interest is limited to the
Portfolio in which shares are held. A description of the Funds' investment
objectives, policies, and strategies are provided in the prospectus.
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
interest 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. Accordingly, no provision for Federal income taxes is required.
REPURCHASE AGREEMENTS--Securities pledged as collateral for repurchase
agreements are held by the Portfolio's custodian bank until maturity of the
repurchase agreement. 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 agreement. Provisions of the agreements and procedures adopted by the
Manager of the Trust require that the market value of the collateral, including
accrued interest thereon, is sufficient to cover interest and principal in the
event of default by the counterparty.
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 included in interest income.
EXPENSES--Expenses of the Trust which are not directly associated to a
specific Portfolio are allocated on the basis of relative net asset value of the
affected Portfolios.
CLASSES--Class specific expenses, such as 12b-1 and transfer agent for
Class D, are borne by that class. Income, expenses and realized gains/losses are
allocated to the respective classes on the basis of relative daily net assets.
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 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.
DISTRIBUTIONS--Distributions from ordinary 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 can be either temporary or
permanent in nature, and may necessitate reclassifications between undistributed
net investment income, undistributed net realized capital gains and/or
additional paid in capital.
For the fiscal year ended June 30, 1997, reclassifications from
undistributed net realized capital gains to undistributed net investment income
in the amounts of $246,319 and $53,182 were recorded for the Treasury Securities
and Prime Obligation Portfolios respectively. For the Government Securities
Portfolio, $4,444 was reclassified from undistributed investment income to net
realized capital gains. These reclassifications between components of capital
have no effect on net assets or net asset value per share.
10
<PAGE>
================================================================================
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.
Distributions 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
capital gains of the Portfolios are distributed to the shareholders of the
affected Portfolios annually.
3. MANAGEMENT, INVESTMENT ADVISORY AND DISTRIBUTION AGREEMENTS
SEI Investments (the "Manager") provides management, administrative 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. 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.
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. The fees of the Investment Adviser
are paid monthly.
SEI Investments Distribution Co. ("the Distributor"), a wholly-owned
subsidiary of SEI Investments Corporation and a registered broker-dealer, acts
as the distributor of the shares of the Trust under a Distribution Agreement.
The Trust has adopted a shareholder servicing plan for its Class A shares (the
"Class A Plan") pursuant to which a shareholder servicing fee of up to .25% of
the average daily net assets attributable to Class A shares will be paid to the
Distributor. Under the Class A Plan the Distributor may perform, or may
compensate other service providers for performing, certain shareholder and
administrative services.
The Trust has adopted a distribution plan for its Class D shares (the "Class
D Plan") pursuant to which a 12b-1 fee of up to .25% of the average daily net
assets attributable to Class D shares will be paid to the Distributor. As of the
period ending December 31, 1997, the Distributor is taking a fee under the Class
D Plan of .20% of the average daily net assets attributable to Class D shares.
This payment may be used to compensate financial institutions that provide
distribution-related services to their customers. Under both the Class A Plan
and the Class D Plan, the Distributor may retain as a profit any difference
between the fee it receives and the amount it pays to third parties.
In addition, the Trust has 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.
4. TRANSACTIONS WITH AFFILIATES
Certain officers and/or Trustees of the Trust are also officers and/or Directors
of the Manager or the Distributor. Compensation of officers and affiliated
Trustees of the Trust is paid by the Manager and/or the Distributor.
An officer of the Trust is also a partner in the firm that serves as legal
counsel. The Trust paid a total of $19,802 in legal fees for the period ending
December 31, 1997.
CoreStates N.A., which is a Trust shareholder, acts as Custodian and Wire
Agent for the Trust.
5. CAPITAL LOSS CARRYOVERS
At June 30, 1997, the Portfolios had capital loss carryovers, to the extent
provided in regulations, for Federal income tax purposes as follows:
Treasury Securities
Portfolio: $148,751 expiring in 2005
Government Securities
Portfolio: $16,296 expiring in 2002
1,741 expiring in 2004
7,997 expiring in 2005
Prime Obligation
Portfolio: $59,535 expiring in 2000
5,140 expiring in 2003
9,189 expiring in 2005
As permitted by tax regulations, the Funds intend to elect to defer and treat
these losses as arising in the fiscal year ended June 30, 1998. No capital
loss carryovers were utilized in the fiscal year ended June 30, 1997.
11
<PAGE>
=======================
SEI LIQUID ASSET TRUST
=======================
SEMI-ANNUAL REPORT
=======================
DECEMBER 31, 1997
Robert A. Nesher
CHAIRMAN
TRUSTEES
William M. Doran
F. Wendell Gooch
Frank E. Morris
James M. Storey
George J. Sullivan, Jr.
OFFICERS
David G. Lee
PRESIDENT AND CHIEF EXECUTIVE OFFICER
Mark Nagle
CONTROLLER AND CHIEF FINANCIAL OFFICER
Marc H. Cahn
VICE PRESIDENT, ASSISTANT SECRETARY
Todd Cipperman
VICE PRESIDENT, ASSISTANT SECRETARY
Joseph M. Lydon
VICE PRESIDENT, ASSISTANT SECRETARY
Barbara A. Nugent
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
John H.Grady, Jr.
ASSISTANT SECRETARY
INVESTMENT ADVISER
Wellington Management Company
MANAGER AND SHAREHOLDER SERVICING AGENT
SEI Fund Management
DISTRIBUTOR
SEI Investments Distribution Co.
LEGAL COUNSEL
Morgan, Lewis & Bockius LLP
INDEPENDENT PUBLIC ACCOUNTANTS
Price Waterhouse 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 COMPANY, THE DISTRIBUTOR OF THE SEI FUNDS, IS NOT
AFFILIATED WITH ANY BANK.
FOR INFORMATION CALL 1-800-DIAL-SEI/1-800-342-5734
<PAGE>
[Logo Omitted]
Investments
Distribution
Co.
Oaks, PA 19456-1100
800-DIAL-SEI/800-342-5734
SEI-F-097-04
