ANNUAL REPORT AS OF
JUNE 30, 1999
SEI LIQUID
ASSET TRUST
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Treasury Securities Fund
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Government Securities Fund
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Prime Obligation Fund
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[LOGO OMITTED]
<PAGE>
TABLE OF CONTENTS
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LETTER TO SHAREHOLDERS 1
STATEMENT OF NET ASSETS 2
STATEMENT OF OPERATIONS 7
STATEMENT OF CHANGES IN NET ASSETS 8
FINANCIAL HIGHLIGHTS 9
NOTES TO FINANCIAL STATEMENTS 10
REPORT OF INDEPENDENT ACCOUNTANTS 12
NOTICE TO SHAREHOLDERS 13
<PAGE>
LETTER TO SHAREHOLDERS
================================================================================
TO OUR SHAREHOLDERS:
Strong economic growth embraced the opening of the Trust's 1999 fiscal year.
Inflationary pressures were benign, and deficit reduction plans were eminent.
Money fund assets grew at an unprecedented rate of 25.5%, $270 billion, and
represented the fastest growth rate of the 1990s. As of December 31, money
market assets peaked at $1.33 trillion.
The U.S. economy continued to show strength, there was little to no inflation as
well as a strong dollar, and continuing concern regarding the international
arena presided over all markets. Fear that the "Asian Flu" would affect domestic
markets as well as increasing concerns with respect to domestic earnings was
prevalent. Uncertainty among companies sustaining current export levels plagued
the minds of everyone.
During the 3rd quarter of 1998 the U.S. economy began to feel the repercussions
from the Asian crisis. Exports began to decrease; consumer confidence fell;
corporate earnings showed signs of slowing; and unemployment was at the lowest
point in twenty years alongside a weakening manufacturing sector. The Federal
Reserve, in response to these concerns, cut interest rates 25 basis points on
September 29, October 15 and November 17, respectively. Along with the
decreasing rate environment, money market total returns also declined. The
12-month total return for taxable money markets fell 3.33% or 17 basis points to
4.93%. Average weighted maturities finished the year very close to the 1997
averages. On December 31, 1998, the average weighted maturity for taxable money
funds was 54 days, up one day from 1997. The average weighted maturity for
tax-free funds was at 44 days -- a two-day decrease from 1997.
Economic growth continued to show signs of strength in 1999 with consumer
confidence high and unemployment remaining near a twenty year low. Inflation
once again became a concern as consumer spending showed no signs of slowing and
oil prices surged to $19.30 per barrel, a 45% increase, on June 30. In addition,
the 30 - year bond closed at 6.16% on June 24, well above the psychological
6.00% mark. The Federal Reserve, which had left interest rates alone at their
May meeting, took the expected step of raising interest rates by 25 basis points
on June 30. The Fed then surprised the market with their decision to relax their
tightening bias to neutral. Believing that a second hike in interest rates would
not be forthcoming, the bond market rallied with the 30-year Treasury jumping
11/8 points, driving the yield to 5.97%. The average weighted maturities of the
Liquid Asset Trust funds were shortened with the expectation that the Federal
Reserve would raise interest rates. This enabled the funds to re-price quickly.
Management's near term sentiment is for unchanged monetary policy while
continuing to closely monitor the Federal Reserve for possible future rate
hikes.
As in the past, Wellington Management will continue to seek prudent investment
opportunities, which have provided our investors with competitive yields. We
look forward to serving your investment needs, and we appreciate your continued
confidence in the SEI Liquid Asset Trust.
Sincerely,
/s/Signature omitted
Edward D. Loughlin
President and Chief Executive Officer
SEI Liquid Asset Trust
1
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
SEI LIQUID ASSET TRUST -- JUNE 30, 1999
TREASURY SECURITIES FUND
- --------------------------------------------------------------------------------
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 18.2%
U.S. Treasury Notes
5.875%, 11/15/99 $10,000 $ 10,041
7.875%, 11/15/99 11,000 11,125
5.625%, 11/30/99 26,000 26,091
4.710%, 12/31/99 15,000 15,221
5.625%, 12/31/99 25,000 25,107
5.875%, 02/15/00 10,000 10,063
7.125%, 02/29/00 5,000 5,070
--------
Total U.S. Treasury Obligations
(Cost $102,718) 102,718
--------
REPURCHASE AGREEMENTS -- 82.1%
Barclay De Zoete Wedd (A)
4.85%, dated 06/30/99, matures
07/01/99, repurchase price
$59,107,962 (collateralized by
U.S. Treasury Bond, par value
$60,944,000, 6.1250%, 11/15/27;
with total market value
$60,282,163) 59,100 59,100
Credit Suisse First Boston (A)
4.90%, dated 06/30/99, matures
07/01/99, repurchase price
$40,005,444 (collateralized by
U.S. Treasury Bill, par value
$43,080,000, 05/25/00; with total
market value $41,194,387) 40,000 40,000
Donaldson Lufkin Jenrette (A)
4.82%, dated 06/30/99, matures
07/01/99, repurchase price
$30,004,017 (collateralized by
various U.S. Treasury Securities,
ranging in par value $4,525,000-
$22,933,000, 5.625%-7.25%,
10/31/99- 08/15/22; with total
market value $30,600,201) 30,000 30,000
Goldman Sachs Group (A)
4.85%, dated 06/30/99, matures
07/01/99, repurchase price
$25,203,395 (collateralized by
U.S. Treasury Note, par value
$25,672,000, 5.75%, 06/30/01;
with total market value
$25,704,090) 25,200 25,200
- --------------------------------------------------------------------------------
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
JP Morgan & Company (A)
4.75%, dated 06/30/99,
matures 07/01/99, repurchase
price $100,013,194 (collateralized
by various U.S. Treasury
Obligations, ranging in par
value $45,710,000-$46,618,000,
5.875%-8.00%, 06/30/00-11/15/21;
with total market value
$102,000,661) $100,000 $100,000
Lehman Brothers, Inc. (B)
4.85%, dated 06/30/99, matures
07/01/99, repurchase price
$42,064,666 (collateralized
by U.S. Treasury Strips, par
value $151,350,000, 02/15/19;
with total market value
$43,208,141) 42,059 42,059
Morgan Stanley & Company (A)
4.65%, dated 06/30/99, matures
07/01/99, repurchase price
$25,003,229 (collateralized by
U.S. Treasury Note, par value
$25,750,000, 4.625%, 11/30/00;
with total market value
$25,519,820) 25,000 25,000
Paribas Corporation (A)
4.87%, dated 06/30/99, matures
07/01/99, repurchase price
$115,015,557 (collateralized by
various U.S. Treasury Bonds,
ranging in par value $9,176,000-
$66,193,000, 7.50%-11.25%,
02/15/15-11/15/16;
with total market value
$117,301,146) 115,000 115,000
Warburg Dillion (A) 4.85%, dated
06/30/99, matures 07/01/99,
repurchase price $28,603,853
(collateralized by U.S.
Treasury Bond, par value
$22,825,000, 10.375%, 11/15/12;
with total market
value $29,176,711) 28,600 28,600
---------
Total Repurchase Agreements
(Cost $464,959) 464,959
---------
2
<PAGE>
TREASURY SECURITIES FUND (CONCLUDED)
- -----------------------------------------------------------
DESCRIPTION VALUE (000)
- -----------------------------------------------------------
Total Investments -- 100.3%
(Cost $567,677) $567,677
--------
OTHER ASSETS AND LIABILITIES,
NET -- (0.3%) (1,548)
--------
NET ASSETS:
Fund Shares of Class A (unlimited
authorization -- no par value)
based on 565,881,139 outstanding
shares of beneficial interest 565,881
Fund Shares of Class D (unlimited
authorization -- no par value) based on
232,032 outstanding shares of
beneficial interest 232
Undistributed net investment income 246
Accumulated net realized loss
on investments (230)
--------
Total Net Assets -- 100.0% $566,129
========
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
(B) TERM REPURCHASE AGREEMENT
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 -- JUNE 30, 1999
GOVERNMENT SECURITIES FUND
- -------------------------------------------------------------------------------
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 51.4%
FHLB
4.800%, 07/02/99 $ 1,100 $ 1,100
4.988%, 07/07/99 1,430 1,429
4.900%, 01/14/00 3,800 3,800
4.850%, 01/27/00 2,000 2,000
4.790%, 02/04/00 2,000 1,997
5.625%, 06/02/00 2,535 2,535
FHLMC
6.530%, 07/08/99 5,000 5,002
4.910%, 07/14/99 5,000 4,991
FNMA
4.820%, 07/01/99 8,000 8,000
4.860%, 07/02/99 1,000 1,000
4.750%, 07/07/99 2,040 2,038
8.450%, 07/12/99 3,500 3,503
4.971%, 07/13/99 2,065 2,062
5.119%, 07/13/99 3,300 3,294
4.870%, 07/15/99 4,000 3,992
4.730%, 08/10/99 1,000 995
4.974%, 03/23/00 4,000 3,998
FNMA (A)
6.100%, 09/23/99 2,000 2,013
SLMA
5.570%, 03/17/00 2,000 2,006
---------
Total U.S. Government Agency
Obligations (Cost $55,755) 55,755
---------
REPURCHASE AGREEMENTS -- 48.4%
Credit Suisse First Boston (B)
5.10%, dated 06/30/99, matures
07/01/99, repurchase price
$15,002,125 (collateralized by
various U.S. Government obligations,
ranging in par value $28,361-
$5,565,982, 5.50%-10.00%,
02/01/02-10/01/28; with total
market value $15,366,416) 15,000 15,000
JP Morgan & Company (B)
5.00%, dated 06/30/99, matures
07/01/99, repurchase price
$25,503,541 (collateralized by
various GNMA obligations, ranging
in par value $2,295,638-
$5,066,250, 6.50%, 03/15/28-
12/15/28; with total market
value $26,010,000) 25,500 25,500
Lehman Brothers, Inc. (B)
4.90%, dated 06/30/99, matures
07/01/99, repurchase price
$3,192,434 (collateralized by
U.S. Treasury Bond, par value
$2,870,000, 9.125%, 05/15/09;
with total market
value $3,255,200) 3,192 3,192
- --------------------------------------------------------------------------------
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Lehman Brothers, Inc. (C)
4.85%, dated 06/30/99, matures
07/01/99, repurchase price
$8,827,189 (collateralized by
U.S. Treasury Strips, par value
$9,570,000, 06/30/00; with total
market value $9,081,930) $8,826 $ 8,826
--------
Total Repurchase Agreements
(Cost $52,518) 52,518
--------
Total Investments -- 99.8%
(Cost $108,273) 108,273
--------
OTHER ASSETS AND LIABILITIES, NET -- 0.2% 195
--------
NET ASSETS:
Fund Shares of Class A (unlimited
authorization -- no par value) based on
108,470,052 outstanding shares of
beneficial interest 108,470
Distribution in excess of
investment income (4)
Accumulated net realized gain
on investments 2
--------
Total Net Assets -- 100.0% $108,468
========
Net Asset Value, Offering and Redemption
Price Per Share -- Class A $1.00
========
(A) VARIABLE RATE INSTRUMENT. THE RATE REFLECTED ON THE STATEMENT OF
NET ASSETS IS THE RATE IN EFFECT ON JUNE 30, 1999. THE DATE SHOWN IS
THE EARLIER OF THE RESET DATE OR THE DEMAND 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
GNMA -- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
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.
4
<PAGE>
================================================================================
PRIME OBLIGATION FUND
- --------------------------------------------------------------------------------
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
COMMERCIAL PAPER -- 63.2%
BANKS -- 7.8%
BankAmerica
4.810%, 08/04/99 $15,000 $ 14,932
Huntington National Bank
5.750%, 07/01/99 49,197 49,197
Suntrust Bank
5.750%, 07/01/99 40,000 40,000
---------
104,129
---------
FINANCIAL SERVICES -- 10.5%
Ford Motor Credit Corporation
5.500%, 07/01/99 35,000 35,000
General Electric Capital
Corporation Puerto Rico
4.830%, 07/29/99 12,000 11,955
General Motors Acceptance
Corporation
4.800%, 07/22/99 25,000 24,930
Island Finance of Puerto Rico
4.850%, 07/12/99 10,000 9,985
Pitney Bowes Credit Corporation
5.220%, 07/06/99 24,500 24,482
Prudential Funding Corporation
4.800%, 07/19/99 35,000 34,916
---------
141,268
---------
FOOD, BEVERAGE & TOBACCO -- 3.9%
Campbell Soup Company
4.850%, 04/13/00 14,000 13,459
Sara Lee Corporation
4.930%, 07/01/99 21,250 21,250
4.950%, 07/01/99 17,000 17,000
---------
51,709
---------
HOUSEHOLD PRODUCTS -- 5.6%
Gillette Company
5.700%, 07/01/99 35,000 35,000
Hubbell Incorporated
5.550%, 07/01/99 40,000 40,000
---------
75,000
---------
INVESTMENT BANKER/BROKER -- 7.1%
Goldman Sachs Group LP
5.040%, 07/19/99 25,000 24,937
Merrill Lynch & Company
5.250%, 07/08/99 35,000 34,964
Morgan Stanley Dean Witter
5.750%, 07/01/99 35,000 35,000
---------
94,901
---------
- -----------------------------------------------------------
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- -----------------------------------------------------------
INSURANCE -- 0.7%
Aon Corporation
4.840%, 07/08/99 $10,000 $ 9,991
---------
PETROLEUM REFINING -- 3.4%
Mobil Corporation
5.500%, 07/01/99 35,000 35,000
National Fuel Gas Company
4.860%, 07/20/99 10,000 9,974
---------
44,974
---------
SCHOOLS -- 1.3%
Harvard University
4.790%, 07/13/99 17,000 16,973
---------
SPECIAL PURPOSE ACQUISITIONS -- 2.2%
Delaware Funding Corporation
5.060%, 07/23/99 30,000 29,907
---------
SPECIAL PURPOSE ENTITY -- 20.7%
Aesop Funding Corporation
5.050%, 07/06/99 20,000 19,986
5.040%, 07/08/99 20,000 19,980
Centric Capital Corporation
5.060%, 07/16/99 9,500 9,480
Clipper Receivables Corporation
5.090%, 07/15/99 25,000 24,950
Corporate Asset Funding
Company
4.810%, 07/07/99 35,000 34,972
Corporate Receivable Corporation
5.060%, 07/27/99 35,000 34,872
Falcon Asset Securitization
Corporation
5.400%, 07/08/99 30,000 29,968
Greyhawk Funding LLC
4.920%, 07/09/99 15,000 14,984
New Center Asset Trust
4.820%, 07/23/99 10,000 9,971
Park Avenue Receivable
5.070%, 07/21/99 30,000 29,915
Preferred Receivable Funding
5.300%, 07/15/99 20,000 19,959
5.060%, 07/19/99 19,955 19,905
4.730%, 09/27/99 6,500 6,425
---------
275,367
---------
Total Commercial Paper
(Cost $844,219) 844,219
---------
5
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
SEI LIQUID ASSET TRUST -- JUNE 30, 1999
PRIME OBLIGATION FUND (CONCLUDED)
- --------------------------------------------------------------------------------
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT/BANK NOTES -- 17.8%
Chase Manhattan Bank
5.700%, 07/02/99 $15,000 $ 15,000
4.930%, 10/05/99 10,000 10,000
First National Bank of Chicago
5.180%, 03/15/00 25,000 24,988
First Union National Bank
5.020%, 10/27/99 29,000 29,000
First National Bank Maryland
4.969%, 01/28/00 25,000 24,996
Fleet National Bank
5.118%, 04/26/00 5,000 5,007
Key Bank North America (A)
5.140%, 07/01/99 20,000 19,998
National City Bank
5.000%, 02/08/00 40,000 39,993
National City Bank (A)
5.138%, 07/08/99 3,000 3,006
NationsBank
4.980%, 01/07/00 25,000 24,997
PNC Bank
5.040%, 02/16/00 30,000 29,991
Wilmington Trust
5.750%, 07/09/99 10,000 10,000
---------
Total Certificates of Deposit/Bank Notes
(Cost $236,976) 236,976
---------
INSURANCE FUNDING AGREEMENTS -- 6.3%
Allstate Corporation (A)
5.018%, 07/01/99 10,000 10,000
5.234%, 09/15/99 20,000 20,000
Metropolitan Life Insurance
Company (A)
5.131%, 08/01/99 10,000 10,000
5.069%, 08/02/99 10,000 10,000
People's Security Life Insurance
Company (A)
5.080%, 07/01/99 25,000 25,000
Travelers Insurance (A)
5.129%, 09/01/99 9,000 9,000
---------
Total Insurance Funding Agreements
(Cost $84,000) 84,000
---------
CORPORATE BONDS/MEDIUM TERM NOTES -- 12.7%
American Express Centurian
Bank (A)
4.94%, 07/16/99 28,000 28,000
Asset Backed Securities Investors
Trust 97-E (A)
4.903%, 07/15/99 13,700 13,700
Branch Banking & Trust (A)
5.056%, 07/28/99 18,500 18,511
- -------------------------------------------------------------------------------
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------------------
Comerica Bank (A)
4.844%, 07/13/99 $12,000 $ 12,000
General Electric Capital
Corporation (A)
4.950%, 08/12/99 25,000 25,000
Key Bank North America
5.650%, 06/26/00 15,000 14,990
National Rural Utility (A)
5.178%, 09/25/99 35,000 34,987
PNC Bank (A)
4.810%, 07/01/99 7,500 7,500
SMM Trust 98-A (A)
5.100%, 09/16/99 15,000 15,000
----------
Total Corporate Bonds/Medium Term Notes
(Cost $169,688) 169,688
----------
Total Investments -- 100.0%
(Cost $1,334,883) 1,334,883
----------
OTHER ASSETS AND LIABILITIES, NET -- 0.0% 418
----------
NET ASSETS:
Fund Shares of Class A (unlimited
authorization -- no par value) based on
1,335,253,754 outstanding shares
of beneficial interest 1,335,254
Undistributed net investment income 53
Accumulated net realized loss
on investments (6)
----------
Total Net Assets -- 100.0% $1,335,301
==========
Net Asset Value, Offering and Redemption
Price Per Share -- Class A $1.00
==========
(A) VARIABLE RATE INSTRUMENT. THE RATE REFLECTED ON THE STATEMENT OF
NET ASSETS IS THE RATE IN EFFECT ON JUNE 30, 1999. THE DATE SHOWN IS THE
EARLIER OF THE RESET DATE OR THE DEMAND DATE.
LLC -- LIMITED LIABILITY COMPANY
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
6
<PAGE>
STATEMENT OF OPERATIONS (000)
==========================================================================
SEI LIQUID ASSET TRUST -- FOR THE YEAR ENDED JUNE 30, 1999
<TABLE>
<CAPTION>
------------- ------------- --------------
TREASURY GOVERNMENT PRIME
SECURITIES SECURITIES OBLIGATION
FUND FUND FUND
------------- ------------- --------------
<S> <C> <C> <C>
Interest Income $32,065 $4,712 $64,759
------- ------ -------
EXPENSES:
Management fees 2,661 388 5,153
Less: management fees waived (192) (28) (283)
Investment advisory fees 230 33 433
Less: advisory fees waived (76) (11) (155)
Shareholder servicing fees -- Class A 1,583 231 3,067
Less: shareholder servicing fees
waived -- Class A (1,583) (231) (3,067)
Distribution fees -- Class D 1 -- --
Less: distribution fees waived -- Class D -- -- --
Wire Agent fees 29 3 42
Custodian fees 31 4 58
Professional fees 25 7 40
Trustee fees 5 1 11
Printing 41 6 52
Insurance 4 1 2
Rating 9 -- --
Other fees 21 3 46
------- ------ -------
Total net expenses 2,789 407 5,399
------- ------ -------
NET INVESTMENT INCOME 29,276 4,305 59,360
------- ------ -------
Net realized gain from security
transactions 22 17 71
------- ------ -------
NET INCREASE IN NET ASSETS FROM OPERATIONS $29,298 $4,322 $59,431
======= ====== =======
</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>
STATEMENT OF CHANGES IN NET ASSETS (000)
================================================================================
SEI LIQUID ASSET TRUST -- FOR THE YEARS ENDED JUNE 30,
<TABLE>
<CAPTION>
----------------------- ---------------------- ---------------------
TREASURY GOVERNMENT PRIME
SECURITIES SECURITIES OBLIGATION
FUND FUND FUND
----------------------- ---------------------- ---------------------
<S> <C> <C> <C> <C> <C> <C>
1999 1998 1999 1998 1999 1998
------------------------ -------------------- ---------------------
OPERATIONS:
Net investment income $ 29,276 $ 35,138 $ 4,305 $ 6,639 $ 59,360 $ 49,202
Net realized gain from security
transactions 22 17 17 20 71 28
----------- ----------- -------- --------- ---------- ----------
Net increase in net assets resulting
from operations 29,298 35,155 4,322 6,659 59,431 49,230
----------- ----------- -------- --------- ---------- ----------
DIVIDENDS DISTRIBUTED FROM:
Net investment income:
Class A (29,267) (35,126) (4,304) (6,640) (59,360) (49,204)
Class D (9) (12) -- -- -- --
------------ ----------- -------- --------- ---------- ----------
Total dividends distributed (29,276) (35,138) (4,304) (6,640) (59,360) (49,204)
------------ ----------- -------- --------- ---------- ----------
CAPITAL SHARE TRANSACTIONS (ALL AT
$1.00 PER SHARE): Class A:
Proceeds from shares issued 4,625,192 4,401,155 585,676 1,048,069 8,708,570 7,116,598
Reinvestment of cash distributions 970 858 455 1,352 21,243 14,097
Cost of shares redeemed (4,664,071) (4,504,478) (582,882) (1,092,845) (8,341,737)(7,006,837)
----------- ----------- -------- --------- ---------- ----------
Increase (decrease) in net assets
derived from Class A transactions (37,909) (102,465) 3,249 (43,424) 388,076 123,858
----------- ----------- -------- --------- ---------- ----------
Class D:
Proceeds from shares issued 43 90 -- -- -- --
Reinvestment of cash distributions 7 11 -- -- -- --
Cost of shares redeemed (55) (80) -- -- -- --
----------- ----------- --------- --------- ---------- ----------
Increase (decrease) in net assets
derived from Class D transactions (5) 21 -- -- -- --
----------- ----------- --------- --------- ---------- ----------
Net increase (decrease) in net assets
derived from capital share
transactions (37,914) (102,444) 3,249 (43,424) 388,076 123,858
----------- ----------- --------- --------- ---------- ----------
Net increase (decrease) in net assets (37,892) (102,427) 3,267 (43,405) 388,147 123,884
----------- ----------- --------- --------- ---------- ----------
NET ASSETS:
Beginning of Period 604,021 706,448 105,201 148,606 947,154 823,270
----------- ----------- --------- --------- ---------- ----------
End of Period $ 566,129 $ 604,021 $ 108,468 $ 105,201 $1,335,301 $ 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.
8
<PAGE>
FINANCIAL HIGHLIGHTS
================================================================================
SEI LIQUID ASSET TRUST -- FOR THE YEARS ENDED JUNE 30
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
RATIO OF
NET
DISTRIBU- RATIO OF RATIO OF NET INVESTMENT
REALIZED DISTRIBU- TIONS NET EXPENSES INCOME
NET ASSET AND TIONS FROM NET ASSETS RATIO OF INVESTMENT TO AVERAGE TO AVERAGE
VALUE, NET UNREALIZED FROM NET REALIZED NET ASSET END OF EXPENSES INCOME NET ASSETS NET ASSETS
BEGINNING INVESTMENT GAINS ON INVESTMENT CAPITAL VALUE END TOTAL PERIOD TO AVERAGE TO AVERAGE (EXCLUDING) (EXCLUDING
OF PERIOD INCOME SECURITIES INCOME GAINS OF PERIOD RETURN (000) NET ASSETS NET ASSETS WAIVERS) WAIVERS)
- -----------------------------------------------------------------------------------------------------------------------------------
TREASURY SECURITIES
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS A
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1999 $1.00 $0.05 -- $(0.05) -- $1.00 4.72% $ 565,897 0.44% 4.62% 0.73% 4.33%
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
CLASS D
1999 $1.00 $0.04 -- $(0.04) -- $1.00 4.35% $ 232 0.79% 4.27% 0.88% 4.18%
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
- -----------------------------------------------------------------------------------------------------------------------------------
GOVERNMENT SECURITIES
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS A
1999 $1.00 $0.05 -- $(0.05) -- $1.00 4.74% $ 108,468 0.44% 4.66% 0.73% 4.37%
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
- -----------------------------------------------------------------------------------------------------------------------------------
PRIME OBLIGATION
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS A
1999 $1.00 $0.05 -- $(0.05) -- $1.00 4.97% $1,335,301 0.44% 4.84% 0.73% 4.55%
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
</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>
NOTES TO FINANCIAL STATEMENTS
===============================================================================
SEI LIQUID ASSET TRUST -- JUNE 30, 1999
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
funds: the Treasury Securities Fund, the Government Securities Fund, the Prime
Obligation Fund, the Institutional Cash Fund and the Money Market Fund (the
"Funds"). The Trust is registered to offer Class A shares of each of the Funds
and Class D shares of the Treasury Securities Fund. In the fiscal period ending
June 30, 1999, no shares of the Institutional Cash Fund were sold. As of June
30, 1999 the Money Market Fund had not commenced operations. The assets of each
Fund are segregated and a shareholder's interest is limited to the Fund 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 Fund'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 Fund'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 Fund are allocated on the basis of relative net asset value of the
affected Funds.
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 Funds are distributed to the shareholders of the affected
Funds annually.
10
<PAGE>
==============================================================================
3. TRANSACTIONS WITH AFFILIATES
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 Fund. 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.
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
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 June
30, 1999, 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.
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.
First Union, which is a Trust shareholder, acts as Custodian and Wire Agent
for the Trust.
4. INVESTMENT ADVISORY
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. Effective January 1, 1999, the
adviser has voluntarily agreed to partially waive its fee in a proportion
agreed upon with the manager. The fees of the Investment Adviser are paid
monthly.
5. CAPITAL LOSS CARRYOVERS
At June 30, 1999, the Funds had capital loss
carryovers, to the extent provided in regulations,
for Federal income tax purposes as follows:
TREASURY SECURITIES
Fund: $125,249 expiring in 2005
104,723 expiring in 2006
Prime Obligation
Fund: 3,116 expiring in 2005
3,005 expiring in 2006
6. LINE OF CREDIT
The Funds have a bank line of credit. Borrowings under the line of credit are
secured by investment securities of the Funds equal to 110% of such borrowings
and may not exceed 10% of the Fund's total assets. As of June 30, 1999, the
Funds did not have any borrowings under this facility.
11
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
===============================================================================
SEI LIQUID ASSET TRUST -- JUNE 30, 1999
To the Trustees and Shareholders
of SEI Liquid Asset Trust
In our opinion, the accompanying statements of net assets 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
Treasury Securities Fund, Government Securities Fund and Prime Obligation Fund
(constituting SEI Liquid Asset Trust, hereafter referred to as the "Trust") at
June 30, 1999, the results of each of their operations for the year then ended,
the changes in each of their net assets for the two years then ended and the
financial highlights for the five years then ended, 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, 1999 by
correspondence with the custodian and brokers, provide a reasonable basis for
the opinion expressed above.
PricewaterhouseCoopers LLP
Philadelphia, PA
August 9, 1999
12
<PAGE>
NOTICE TO SHAREHOLDERS (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, 1999, each Fund is designating long term
capital gains, qualifying dividends and exempt income with regard to
distributions paid during the year as follows:
<TABLE>
(A) (B)
LONG TERM ORDINARY (C) (E)
CAPITAL GAINS INCOME TOTAL (D) TAX
DISTRIBUTIONS DISTRIBUTIONS DISTRIBUTIONS QUALIFYING EXEMPT
FUND (TAX BASIS) (TAX BASIS) (TAX BASIS) DIVIDENDS(1) INTEREST
- -------- ------------ ------------ ------------ ------------ ----------
<S> <C> <C> <C> <C> <C>
Treasury Securities Fund 0% 100% 100% 0% 0%
Government Securities Fund 0% 100% 100% 0% 0%
Prime Obligation Fund 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 Fund's total distribution.
** Items (D) and (E) are based on a percentage of ordinary income distributions
of the Fund.
Please consult your tax adviser for proper treatment of this information.
13
<PAGE>
NOTES
<PAGE>
NOTES
<PAGE>
NOTES
<PAGE>
=======================
SEI LIQUID ASSET TRUST
=======================
ANNUAL REPORT
=======================
JUNE 30, 1999
Robert A. Nesher
CHAIRMAN
TRUSTEES
William M. Doran
F. Wendell Gooch
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
Lynda Striegel
VICE PRESIDENT, ASSISTANT SECRETARY
James Foggo
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
INVESTMENT ADVISER
Wellington Management Company, LLP
MANAGER AND SHAREHOLDER SERVICING AGENT
SEI Investments Fund Management
DISTRIBUTOR
SEI Investments Distribution Co.
LEGAL COUNSEL
Morgan, Lewis & Bockius LLP
INDEPENDENT PUBLIC ACCOUNTANTS
PricewaterhouseCoopers LLP
THIS 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)
[GRAPHIC OMITTED]
INVESTMENTS
DISTRIBUTION
CO.
Oaks, PA 19456-1100
800-DIAL-SEI/800-342-5734
SEI-F-097-06
<PAGE>
