Semi-Annual Report as of
December 31, 1998 (Unaudited)
SEI LIQUID
ASSET TRUST
- --------------------------------
Treasury Securities Portfolio
- --------------------------------
Government Securities Portfolio
- --------------------------------
Prime Obligation Portfolio
[LOGO OMITTED]
<PAGE>
TABLE OF CONTENTS
- -------------------------------------------------------------------------------
STATEMENT OF NET ASSETS 2
STATEMENT OF OPERATIONS 6
STATEMENT OF CHANGES IN NET ASSETS 7
FINANCIAL HIGHLIGHTS 8
NOTES TO FINANCIAL STATEMENTS 9
<PAGE>
- -------------------------------------------------------------------------------
SEI LIQUID ASSET TRUST -- DECEMBER 31, 1998 (UNAUDITED)
TREASURY SECURITIES PORTFOLIO
- ---------------------------------------------------------------------
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- ---------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 25.6%
U.S. Treasury Notes
5.875%, 03/31/99 $ 11,000 $ 11,010
6.250%, 03/31/99 37,000 37,066
6.375%, 04/30/99 26,000 26,067
6.000%, 06/30/99 10,000 10,024
5.875%, 11/15/99 13,000 13,123
7.875%, 11/15/99 13,000 13,344
5.625%, 11/30/99 26,000 26,199
5.625%, 12/31/99 25,000 25,213
U.S. Treasury Bill
3.905%, 01/21/99 22,000 21,952
4.560%, 11/12/99 13,000 12,481
--------
Total U.S. Treasury Obligations
(Cost $196,479) 196,479
--------
REPURCHASE AGREEMENTS -- 74.6%
Barclay De Zoete Wedd (A)
4.70%, dated 12/31/98,
matures 01/04/99, repurchase
price $150,078,333 (collateralized
by U.S. Treasury Notes, ranging in
par value $4,452,000-$82,111,000,
5.75%-13.75%, 05/31/99-08/15/04;
with total market value $153,000,849) 150,000 150,000
Greenwich Capital (A)
4.75%, dated 12/31/98, matures
01/04/99, repurchase price
$80,042,222 collateralized by
U.S. Treasury Notes, ranging in par
value 7,250,000-13,953,000,
6.00%-12.75%, 11/15/10-02/15/26;
with total market value $81,601,916) 80,000 80,000
JP Morgan (A)
5.75%, dated 12/31/98, matures
01/04/99, repurchase price
$65,041,528 (collateralized by
U.S. Treasury Note, par value
$66,269,000, 4.625%,12/31/00;
with total market value $66,300,080) 65,000 65,000
JP Morgan (A)
4.75%, dated 12/31/98, matures
01/04/99, repurchase price
$110,058,056 (collateralized by
U.S. Treasury Note, par value
$66,113,000, 11.25%, 02/15/15;
with total market value
$112,201,000) 110,000 110,000
Lehman Brothers (A)
4.875%, dated 12/31/98, matures
01/04/99, repurchase price
$9,378,077 (collateralized by
U.S. Treasury STRIPS, par value
$29,038,000, 11/15/18; with total
market value $11,763,293) 9,373 9,373
Morgan Stanley (A)
4.92%, dated 12/31/98,
matures 01/20/99, repurchase price
$75,205,000 (collateralized by
U.S. Treasury Notes,
value ranging $42,000-
$61,105,000, 6.25%-6.75%,
01/28/99-08/26/15; with
total market value $705,265,960) 75,000 75,000
Morgan Stanley (A)
4.65%, dated 12/31/98, matures
01/04/99, repurchase price
$28,214,570 (collateralized by U.S.
Treasury Notes, ranging
in par value $42,000-$61,105,000,
6.25%-6.75%, 01/28/99-
08/26/15; with total market
value $705,265,960) 28,200 28,200
Paribas (A)
4.55%, dated 12/31/98,
matures 01/04/99, repurchase
price $55,027,806 (collateralized
by U.S. Treasury Notes, ranging
in par value $2,665,000-$52,335,000,
6.50%, 08/31/01; with total
market value $57,200,000) 55,000 55,000
---------
Total Repurchase Agreements
(Cost $572,573) 572,573
---------
Total Investments -- 100.2%
(Cost $769,052) 769,052
---------
OTHER ASSETS AND LIABILITIES, NET -- (0.2%) (1,768)
---------
NET ASSETS:
Portfolio Shares of Class A (unlimited
authorization -- no par value) based
on 767,074,299 outstanding shares
of beneficial interest 767,074
Portfolio Shares of Class D (unlimited
authorization -- no par value) based
on 216,699 outstanding shares of
beneficial interest 216
Undistributed net investment income 246
Accumulated net realized loss
on investments (252)
---------
Total Net Assets -- 100.0% $767,284
=========
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
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
2
<PAGE>
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Government Securities Portfolio
- ---------------------------------------------------------------------
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- ---------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 89.6%
FHLMC
6.250%, 01/04/99 $ 5,000 $ 4,997
5.170%, 02/12/99 5,000 4,970
5.085%, 02/25/99 2,000 1,985
5.000%, 02/26/99 7,000 6,946
5.040%, 03/19/99 3,089 3,056
FNMA
5.150%, 02/26/99 2,519 2,499
5.000%, 03/15/99 5,000 4,949
5.170%, 03/15/99 10,000 9,895
4.870%, 03/18/99 1,050 1,039
4.990%, 03/18/99 6,750 6,679
4.840%, 04/07/99 3,000 2,961
4.830%, 05/13/99 2,245 2,205
8.450%, 07/12/99 3,500 3,556
SLMA (A)
4.818%, 02/02/99 22,000 22,000
--------
Total U.S. Government Agency Obligations
(Cost $77,737) 77,737
--------
REPURCHASE AGREEMENTS -- 10.6%
Goldman Sachs (B)
6.25%, dated 12/31/98, matures
01/04/99, repurchase price
$8,005,556 (collateralized by
various U.S. Government Obligations
ranging in Par Value $3,171,324-$8,198,753,
6.50%-7.50%, 08/01/02-
11/01/26; with total market
value $8,160,000) 8,000 8,000
Lehman Brothers (B)
4.875%, dated 12/31/98, matures
01/04/99, repurchase price
$1,216,659 (collateralized by
U.S. Treasury STRIPS, par value
$3,767,000, 11/15/18; with
total market value $1,526,011) 1,216 1,216
--------
Total Repurchase Agreements
(Cost $9,216) 9,216
--------
Total Investments -- 100.2%
(Cost $86,953) 86,953
--------
OTHER ASSETS AND LIABILITIES, NET -- (0.2%) (181)
--------
NET ASSETS:
Portfolio Shares (unlimited
authorization -- no par value)
based on 86,773,333 outstanding
shares of beneficial interest 86,773
Distribution in excess of net
investment income (8)
Accumulated net realized gain
on investments 7
---------
Total Net Assets -- 100.0% 86,772
=========
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, 1998. THE
MATURITY DATE SHOWN IS THE RESET DATE.
(B) TRI-PARTY 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
<PAGE>
STATEMENT OF NET ASSETS
- -------------------------------------------------------------------------------
SEI LIQUID ASSET TRUST -- DECEMBER 31, 1998 (UNAUDITED)
PRIME OBLIGATION PORTFOLIO
- -------------------------------------------------------------------------------
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------------------
COMMERCIAL PAPER -- 58.6%
BANKS -- 1.9%
Bank of America
5.040%, 03/11/99 $25,000 $ 4,758
----------
DRUGS -- 3.6%
Abbott Laboratories
5.000%, 01/14/99 16,000 15,971
Johnson and Johnson
5.000%, 02/26/99 30,000 29,767
----------
45,738
----------
FINANCIAL SERVICES -- 45.4%
Associates of North America
5.350%, 02/05/99 15,000 14,922
5.010%, 02/12/99 20,000 19,883
Centric Capital Corporation
5.200%, 03/16/99 10,000 9,893
5.150%, 03/22/99 16,000 15,817
5.150%, 03/22/99 3,516 3,476
5.100%, 05/24/99 4,166 4,082
5.100%, 05/25/99 6,666 6,530
Chrysler Financial Corporation
5.050%, 02/19/99 10,000 9,931
Cit Group Incorporated
5.370%, 02/08/99 30,000 29,830
Commoloco
5.470%, 03/08/99 10,000 9,900
5.160%, 03/09/99 13,500 13,370
Corporate Asset Funding
5.360%, 02/19/99 31,000 30,774
Corporate Receivables
Corporation
5.150%, 03/10/99 10,000 9,903
Enterprise Funding
Corporation
5.170%, 03/10/99 34,129 33,796
Falcon Asset Securities
5.400%, 02/16/99 8,500 8,441
Fleet Funding
5.550%, 01/14/99 26,000 25,948
Ford Motor Credit Corporation
5.010%, 04/20/99 30,000 29,545
General Electric Capital
Corporation
5.030%, 02/05/99 10,000 9,951
GTE Funding
5.310%, 02/18/99 22,000 21,844
5.300%, 02/24/99 5,100 5,059
Island Finance Puerto Rico
5.180%, 03/02/99 10,150 10,062
5.160%, 03/30/99 26,800 26,462
Kitty Hawk Funding Corporation
5.540%, 01/15/99 7,866 7,849
5.500%, 02/26/99 11,500 11,402
5.500%, 02/26/99 5,179 5,135
5.180%, 03/10/99 5,000 4,951
5.160%, 04/16/99 5,900 5,811
- -------------------------------------------------------------------------------
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------------------
National Rural Utilities
5.050%, 03/12/99 $25,000 $ 24,755
5.000%, 03/25/99 12,500 12,356
Park Avenue Receivables
5.500%, 02/12/99 10,000 9,936
Peacock Funding
5.370%, 03/17/99 12,475 12,335
5.150%, 04/20/99 12,974 12,772
Prefco
5.420%, 02/16/99 20,000 19,861
Prudential Funding
5.340%, 02/05/99 20,000 19,896
Rockwell International
5.250%, 02/23/99 20,800 20,639
Sears Roebuck Acceptance
5.050%, 03/03/99 30,000 29,743
Variable Funding Capital
5.360%, 02/19/99 20,000 19,854
5.290%, 02/23/99 15,500 15,379
----------
582,093
----------
FOOD, BEVERAGE & TOBACCO -- 5.6%
Archer-Daniels-Midland Company
5.070%, 02/04/99 12,000 11,943
5.050%, 03/23/99 10,000 9,886
4.970%, 04/09/99 16,000 15,784
Coca-Cola Enterprises
5.200%, 03/17/99 5,800 5,737
5.200%, 03/18/99 28,450 28,138
----------
71,488
----------
HOUSEHOLD PRODUCTS -- 0.9%
Gillette Company
5.150%, 01/04/99 11,000 10,995
----------
LEASING & RENTING -- 0.9%
International Lease Finance
5.100%, 02/19/99 7,785 7,731
6.625%, 04/01/99 3,825 3,839
----------
11,570
----------
PRINTING & PUBLISHING -- 0.3%
Scripps Ew
5.130%, 03/16/99 4,703 4,653
----------
Total Commercial Paper
(Cost $751,295) 751,295
----------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 10.5%
FHLMC
5.210%, 02/26/99 20,000 19,843
5.000%, 03/12/99 15,000 14,854
5.089%, 03/26/99 21,000 20,757
4
<PAGE>
- -------------------------------------------------------------------------------
PRIME OBLIGATION PORTFOLIO (CONTINUED)
- -------------------------------------------------------------------------------
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------------------
FNMA
5.209%, 02/18/99 $ 20,000 $ 9,865
5.103%, 03/17/99 30,000 29,689
SLMA (A)
4.818%, 02/02/99 30,000 30,000
----------
Total U.S. Government Agency Obligations
(Cost $135,008) 135,008
----------
CERTIFICATES OF DEPOSIT -- 11.5%
Branch Banking
4.000%, 01/04/99 16,960 16,960
Chase Manhattan Corporation
5.700%, 07/02/99 15,000 14,995
First Chicago Bank
5.740%, 05/07/99 3,000 3,004
First National Bank of Chicago
5.740%, 05/07/99 10,000 9,998
Harris Bankcorp
5.150%, 02/22/99 31,500 31,500
National City
4.250%, 01/04/99 40,000 40,000
Regions Bank
5.770%, 05/21/99 15,000 14,998
Wilmington Trust
5.900%, 04/30/99 7,000 7,000
5.750%, 07/09/99 10,000 10,000
----------
Total Certificates of Deposit
(Cost $148,455) 148,455
----------
BANK NOTE -- 1.2%
Bank of America
5.630%, 02/26/99 15,000 14,999
----------
Total Bank Note
(Cost $14,999) 14,999
----------
CORPORATE BONDS -- 18.3%
AllState (A)
5.242%, 02/01/99 10,000 10,000
5.309%, 03/15/99 20,000 20,000
American Express
Centurian Bank (A)
5.477%, 01/16/99 28,000 28,000
Asset Backed Securities
Investors Trust 97-E (A)
5.536%, 01/15/99 13,700 13,700
- -------------------------------------------------------------------------------
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------------------
Chrysler Financial
6.370%, 01/21/99 $ 3,900 $ 3,911
Comerica Bank (A)
5.424%, 01/13/99 12,000 11,996
5.109%, 03/10/99 17,000 16,995
GMAC (A)
6.040%, 03/19/99 28,500 28,545
Key Bank of North America (A)
5.060%, 02/05/99 15,000 14,998
4.700%, 03/16/99 20,000 19,995
PNC Bank (A)
5.427%, 01/04/99 7,500 7,497
People's Security Funding
Agreement (A)
5.320%, 01/04/99 25,000 25,000
SMM Trust 98-A (A)
5.320%, 03/16/99 15,000 15,000
Smm Trust 98-L (A)
5.220%, 01/28/99 10,000 10,000
Travelers Insurance (A)
5.300%, 03/01/99 5,000 5,000
5.300%, 03/01/99 2,000 2,000
5.300%, 03/01/99 2,000 2,000
----------
Total Corporate Bonds
(Cost $234,637) 234,637
----------
Total Investments -- 100.1%
(Cost $1,284,394) 1,284,394
----------
OTHER ASSETS AND LIABILITIES, NET -- (0.1%) (1,007)
----------
NET ASSETS:
Portfolio Shares (unlimited
authorization -- no par value)
based on 1,283,395 outstanding
shares of beneficial interest 1,283,395
Undistributed net investment income 53
Accumulated net realized loss
on investments (61)
----------
Total Net Assets-- 100.0% $1,283,387
==========
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, 1998. THE
MATURITY DATE SHOWN IS THE RESET DATE.
FHLMC -- FEDERAL HOME LOAN MORTGAGE CORPORATION
FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION
SLMA -- STUDENT LOAN MARKETING ASSOCIATION
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
5
<PAGE>
STATEMENT OF OPERATIONS (000)
- -------------------------------------------------------------------------------
SEI LIQUID ASSET TRUST -- FOR THE PERIOD ENDED DECEMBER 31, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
--------------- ------------------ ------------------
TREASURY GOVERNMENT PRIME
SECURITIES SECURITIES OBLIGATION
PORTFOLIO PORTFOLIO PORTFOLIO
--------------- ------------------ ------------------
<S> <C> <C> <C>
Interest Income $17,677 $2,487 $30,806
------- ------ -------
EXPENSES:
Management fee 1,408 199 2,339
Less: management fees waived (130) (20) (185)
Investment advisory fee 115 16 193
Shareholder servicing fee-- Class A 838 118 1,394
Less: shareholder servicing fee waived-- Class A (838) (118) (1,394)
Distribution fee-- Class D -- -- --
Less: distribution fee waived-- Class D -- -- --
Custodian/wire agent fees 31 5 47
Professional fees 11 3 14
Trustee fees 4 1 7
Printing 10 1 6
Insurance 2 1 4
Rating 5 -- --
Other fees 19 2 22
------- ------ -------
Total net expenses 1,475 208 2,447
------- ------ -------
NET INVESTMENT INCOME 16,202 2,279 28,359
------- ------ -------
Net realized gain from security transactions -- 22 16
------- ------ -------
NET INCREASE IN NET ASSETS FROM OPERATIONS $16,202 $2,301 $28,375
======= ====== =======
<FN>
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.
6
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (000)
- -------------------------------------------------------------------------------
SEI LIQUID ASSET TRUST -- FOR THE PERIOD ENDED DECEMBER 31, 1998
(UNAUDITED) AND THE YEAR ENDED JUNE 30, 1998
<TABLE>
<CAPTION>
----------------------- ----------------------- -----------------------
TREASURY GOVERNMENT PRIME
SECURITIES SECURITIES OBLIGATION
PORTFOLIO PORTFOLIO PORTFOLIO
----------------------- ----------------------- ------------------------
07/01/98 07/01/97 07/01/98 07/01/97 07/01/9 07/01/97
12/31/98 06/30/98 12/31/98 06/30/98 12/31/98 06/30/98
----------------------- ----------------------- ------------------------
OPERATIONS:
<S> <C> <C> <C> <C> <C> <C>
Net investment income $ 16,202 $ 35,138 $ 2,279 $ 6,639 $ 28,359 $ 49,202
Net realized gain from security
transactions -- 17 22 20 16 28
----------- ----------- ---------- ----------- ---------- -----------
Net increase in net assets resulting
from operations 16,202 35,155 2,301 6,659 28,375 49,230
----------- ----------- ---------- ----------- ---------- -----------
DIVIDENDS DISTRIBUTED FROM:
Net investment income:
Class A (16,197) (35,126) (2,282) (6,640) (28,359) (49,204)
Class D (5) (12) -- -- -- --
----------- ----------- ---------- ----------- ---------- -----------
Total dividends distributed (16,202) (35,138) (2,282) (6,640) (28,359) (49,204)
----------- ----------- ---------- ----------- ---------- -----------
CAPITAL SHARE TRANSACTIONS
(ALL AT $1.00 PER SHARE):
CLASS A:
Proceeds from shares issued 2,656,051 4,401,155 314,765 1,048,069 3,901,414 7,116,598
Reinvestment of cash distributions 524 858 214 1,352 9,240 14,097
Cost of shares redeemed (2,493,291) (4,504,478) (333,427) (1,092,845) (3,574,437) (7,006,837)
----------- ----------- ---------- ----------- ---------- -----------
Increase (decrease) in net
assets derived from
Class A transactions 163,284 (102,465) (18,448) (43,424) 336,217 123,858
----------- ----------- ---------- ----------- ---------- -----------
Class D:
Proceeds from shares issued 29 90 -- -- -- --
Reinvestment of cash distributions 2 11 -- -- -- --
Cost of shares redeemed (52) (80) -- -- -- --
----------- ----------- ---------- ----------- ---------- -----------
Increase (decrease) in net
assets derived from
Class D transactions (21) 21 -- -- -- --
----------- ----------- ---------- ----------- ---------- -----------
Net increase (decrease) in net assets
derived from capital share transactions 163,263 (102,444) (18,448) (43,424) 336,217 123,858
----------- ----------- ---------- ----------- ---------- -----------
Net increase (decrease) in net assets 163,263 (102,427) (18,429) (43,405) 336,233 123,884
----------- ----------- ---------- ----------- ---------- -----------
NET ASSETS:
Beginning of Period 604,021 706,448 105,201 148,606 947,154 823,270
----------- ----------- ---------- ----------- ---------- -----------
End of Period $ 767,284 $ 604,021 $ 86,772 $ 105,201 $1,283,387 $ 947,154
=========== =========== ========== =========== ========== ==========
</TABLE>
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
7
<PAGE>
FINANCIAL HIGHLIGHTS
- -------------------------------------------------------------------------------
SEI LIQUID ASSET TRUST -- (UNAUDITED)
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
RATIO OF
NET
INVEST-
RATIO OF MENT
EXPENSES INCOME
REALIZED RATIO OF TO TO
AND UNREA- DISTRIBU- RATIO OF NET AVERAGE AVERAGE
LIZED DISTRIBU- TIONS EXPENSES INVESTMENT NET NET
NET ASSET NET GAINS TION FROM NET ASSET TO INCOME ASSETS ASSETS
VALUE INVEST- ON FROM NET REALIZED NET ASSET END OF AVERAGE TO AVERAGE (EXCLUD- (EXCLUD-
BEGINNING MENT SECUR- INVESTMENT CAPITAL VALUE END TOTAL PERIOD NET NET ING ING
OF PERIOD INCOME ITIES INCOME GAINS OF PERIOD RETURN (000) ASSETS ASSETS WAIVERS) WAIVERS)
- -----------------------------------------------------------------------------------------------------------------------------------
- -------------------
Treasury Securities
- -------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Class A
1998+ $1.00 $0.02 -- $(0.02) -- $1.00 4.94% $ 767,067 0.44% 4.83% 0.73% 4.54%
1998 1.00 0.05 -- (0.05) -- 1.00 5.29 603,783 0.44 5.17 0.73 4.88
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
Class D
1998+ $1.00 $0.02 -- (0.02) -- $1.00 4.58% $ 217 0.79% 4.51% 0.88% 4.42%
1998 1.00 0.05 -- (0.05) -- 1.00 4.92 238 0.79 4.82 0.88 4.73
1997 1.00 0.05 -- (0.05) -- 1.00 4.73 216 0.79 4.64 0.89 4.54
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
1998+ $1.00 $0.02 -- $(0.02) -- $1.00 4.90% $ 86,772 0.44% 4.82% 0.73% 4.53%
1998 1.00 0.05 -- (0.05) -- 1.00 5.21 105,201 0.44 5.10 0.73 4.81
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
- ----------------
PRIME OBLIGATION
- ----------------
Class A
1998+ $1.00 $0.03 -- $(0.03) -- $1.00 5.20% $1,283,387 0.44% 5.08% 0.73% 4.79%
1998 1.00 0.05 -- (0.05) -- 1.00 5.40 947,154 0.44 5.27 0.73 4.98
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
<FN>
(1) TREASURY SECURITIES CLASS D COMMENCED OPERATIONS ON MAY 4, 1994.
+ RATIOS FOR SEMI-ANNUAL PERIOD ENDED DECEMBER 31, 1998 (UNAUDITED).
* ANNUALIZED.
** NOT ANNUALIZED.
</FN>
</TABLE>
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
8
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- -------------------------------------------------------------------------------
SEI LIQUID ASSET TRUST -- DECEMBER 31, 1998 (UNAUDITED)
1. ORGANIZATION
SEI Liquid Asset Trust (the "Trust") was organized as a Massachusetts business
trust under a Declara-tion 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 Market Portfolio (the "Portfolios"). The Trust is registered to offer
Class A shares of each of the portfolios and Class D shares of the Treasury
Securities Portfolio. In the fiscal period ending December 31, 1998, no shares
of the Institutional Cash Portfolio were sold. As of December 31, 1998 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.
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 straight line 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, 12b-1 and transfer agent fees for Class
D and shareholder servicing fees for Class A, 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.
Use of Estimate 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.
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.
9
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- -------------------------------------------------------------------------------
SEI LIQUID ASSET TRUST -- DECEMBER 31, 1998 (UNAUDITED)
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 Distributor has waived, on a voluntary basis, all
or a portion of its shareholder servicing fee.
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. For the period ending December 31, 1998, 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.
CoreStates N.A., which is a Trust shareholder, acts as Custodian and Wire
Agent for the Trust.
5. CAPITAL LOSS CARRYOVERS
At June 30, 1998, 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
104,723 expiring in 2006
Government Securities
Portfolio: $5,230 expiring in 2001
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
3,005 expiring in 2006
The Government Securities Portfolio utilized $11,065 of capital loss carryovers
in the fiscal year ended June 30, 1998.
6. LINE OF CREDIT
The Portfolios have a blank line of credit. Borrowings under the line of credit
are secured by investment securities of the Portfolios equal to 110% of such
borrowings and may not exceed 10% of the Portfolio's total assets. No
borrowings were outstanding at December 31, 1998.
10
<PAGE>
NOTES
<PAGE>
- ----------------------
SEI LIQUID ASSET TRUST
- ----------------------
SEMI-ANNUAL REPORT
- ----------------------
DECEMBER 31, 1998
Robert A. Nesher
CHAIRMAN
TRUSTEES
William M. Doran
F. Wendell Gooch
Frank E. Morris
James M. Storey
George J. Sullivan, Jr.
OFFICERS
Edward D. Loughlin
PRESIDENT AND CHIEF EXECUTIVE OFFICER
Mark Nagle
CONTROLLER AND CHIEF FINANCIAL OFFICER
Todd Cipperman
VICE PRESIDENT, ASSISTANT SECRETARY
Kathy Heilig
VICE PRESIDENT, ASSISTANT SECRETARY
Joseph M. O'Donnell
VICE PRESIDENT, ASSISTANT SECRETARY
Sandra K. Orlow
VICE PRESIDENT, ASSISTANT SECRETARY
Cynthia M. Parrish
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, LLP
MANAGER AND SHAREHOLDER SERVICING AGENT
SEI Investments Mutual Funds Services
DISTRIBUTOR
SEI Investments Distribution Co.
LEGAL COUNSEL
Morgan, Lewis & Bockius LLP
INDEPENDENT PUBLIC ACCOUNTANTS
PricewaterhouseCoopers LLP
THIS SEMI-ANNUAL REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE
SUBMITTED FOR THE GENERAL INFORMATION OF THE SHAREHOLDERS OF THE TRUST AND MUST
BE PRECEDED OR ACCOMPANIED BY A CURRENT PROSPECTUS. SHARES OF THE SEI FUNDS ARE
NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR ENDORSED BY, ANY BANK. THE
SHARES ARE NOT FEDERALLY INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION
(FDIC), THE FEDERAL RESERVE BOARD, OR ANY OTHER GOVERNMENT AGENCY. INVESTMENT
IN THE SHARES INVOLVES RISK, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL. SEI
INVESTMENTS DISTRIBUTION CO., THE DISTRIBUTOR OF THE SEI FUNDS, IS NOT
AFFILIATED WITH ANY BANK.
FOR 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-103-05
