ANNUAL REPORT AS OF
JUNE 30, 2000
SEI LIQUID
ASSET TRUST
--------------------------------------------------------------------------------
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 ................................................ 6
STATEMENT OF CHANGES IN NET ASSETS ..................................... 7
FINANCIAL HIGHLIGHTS ................................................... 8
NOTES TO FINANCIAL STATEMENTS .......................................... 9
REPORT OF INDEPENDENT ACCOUNTANTS ...................................... 11
NOTICE TO SHAREHOLDERS ................................................. 12
<PAGE>
LETTER TO SHAREHOLDERS
--------------------------------------------------------------------------------
TO OUR SHAREHOLDERS:
The fiscal year ended June 30, 2000 was one of healthy growth, low inflation,
and a tightening fiscal policy. For most of 1999, the Federal Open Market
Committee (FOMC) remained precautious and increased the Fed Funds Target Rate
from 4.75% to 5.50%. The FOMC continued to tighten monetary policy through early
2000 and increased the Fed Funds Target Rate 50 basis points to 6.50% in May.
The Committee believes the risks continue to be weighted mainly toward
conditions that may generate heightened inflation pressures in the foreseeable
future and that excess demand relative to supply leads to inflation. With the
underlying principle of the FOMC being long-run monetarism, more increases are
anticipated.
Inflation, in the form of a rising consumer prices and employment costs, remains
a primary motivator for the Federal Reserve Board. The increase in short-term
rates over the last year is showing signs of taking hold and bringing the
economy to a "soft landing". The most recent employment data showing a slowdown
in average hourly earnings eases some of the wage inflation concern. The move in
the unemployment rate back above 4% also shows that the job market may be
moderating.
Balancing liquidity with maturity management in a changing interest rate
environment can be challenging. With five moves by the Federal Reserve,
Wellington Management Company, LLP, the advisor of the SEI Liquid Asset Trust,
adjusted average weighted maturities accordingly to boost yield and enhance
return in the Money Market Funds. For money market investors, yields for the
funds increased over the previous fiscal year.
In the upcoming year, Wellington Management Company, LLP will continue to seek
safe investment opportunities that provide the yields our shareholders expect.
We thank you for your continued confidence in the SEI Liquid Asset Trust, and we
look forward to serving your investment needs in the future.
Sincerely,
/s/ signature omitted
Edward D. Loughlin
President and Chief Executive Officer
SEI Liquid Asset Trust
1
<PAGE>
STATEMENT OF NET ASSETS
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SEI LIQUID ASSET TRUST -- JUNE 30, 2000
TREASURY SECURITIES FUND
--------------------------------------------------------------------------------
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 22.4%
U.S. Treasury Notes
4.000%, 10/31/00 $25,000 $ 24,870
5.750%, 11/15/00 10,000 9,999
4.625%, 11/30/00 11,000 10,944
4.625%, 11/30/00 13,000 12,926
5.625%, 11/30/00 8,000 7,988
5.000%, 02/28/01 4,000 3,965
5.625%, 02/28/01 10,000 9,952
4.875%, 03/31/01 10,000 9,882
--------
Total U.S. Treasury Obligations
(Cost $90,526) 90,526
--------
REPURCHASE AGREEMENTS -- 77.9%
ABN-Amro (A)
6.630%, dated 06/30/00, matures
07/03/00, repurchase price
$50,027,625 (collateralized by
U.S. Treasury Bond,
par value $57,121,000,
5.250%, 11/15/28; with total
market value $51,000,571) 50,000 50,000
Barclay De Zoete Wedd (A)
6.500%, dated 06/30/00, matures
07/03/00, repurchase price
$90,048,750 (collateralized by
U.S. Treasury Note, par value
$97,335,000, 4.250%, 11/15/03;
with total market value
$91,800,775) 90,000 90,000
Lehman Brothers, Inc. (B)
6.550%, dated 06/30/00, matures
07/03/00, repurchase price
$19,101,421 (collateralized by
U.S. Treasury STRIPS, par value
$59,145,000, 05/15/18; with total
market value $19,547,423) 19,091 19,091
Paribas Corporation (A)
6.620%, dated 06/30/00, matures
07/03/00, repurchase price
$85,046,892 (collateralized by
U.S. Treasury Bond,
par value $57,205,000
11.250%, 02/15/15; with total
market value $86,701,441) 85,000 85,000
--------------------------------------------------------------------------------
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
Warburg Dillion (A)
6.600%, dated 06/30/00, matures
07/03/00 repurchase price
$69,938,445 (collateralized by
various U.S. Treasury Bonds,
ranging in par value $12,958,000 -
$42,640,000, 8.500% - 8.750%,
05/15/17 - 02/15/20; with
total market value $71,301,712) $69,900 $ 69,900
--------
Total Repurchase Agreements
(Cost $313,991) 313,991
--------
Total Investments -- 100.3%
(Cost $404,517) 404,517
--------
Other Assets and Liabilities, Net -- (0.3%) (1,302)
--------
NET ASSETS:
Fund Shares of Class A (unlimited
authorization -- no par value)
based on 403,106,757 outstanding
shares of beneficial interest 403,107
Fund Shares of Class D (unlimited
authorization -- no par value)
based on 233,645 outstanding
shares of beneficial interest 233
Undistributed net investment income 106
Accumulated net realized loss
on investments (231)
--------
Total Net Assets -- 100.0% $403,215
========
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.
2
<PAGE>
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GOVERNMENT SECURITIES FUND
--------------------------------------------------------------------------------
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 63.5%
FHLB (A)
6.451%, 07/15/00 $6,000 $ 5,999
FHLB
5.550%, 08/17/00 1,500 1,499
5.010%, 11/16/00 2,500 2,488
6.480%, 03/20/00 13,000 2,998
6.520%, 05/11/00 12,000 1,886
FHLMC
5.505%, 07/14/00 484 484
FNMA
5.550%, 08/10/00 500 500
6.450%, 08/16/00 2,300 2,281
4.840%, 11/27/00 1,000 994
6.480%, 02/22/00 11,500 1,499
FNMA (A)
6.471%, 07/02/00 6,000 5,999
6.490%, 07/22/00 4,500 4,499
6.490%, 07/22/00 6,000 5,999
6.500%, 06/06/01 1,500 1,408
FNMA MTN
6.520%, 03/16/01 2,000 1,999
-------
Total U.S. Government Agency Obligations
(Cost $40,532) 40,532
-------
REPURCHASE AGREEMENTS -- 36.6%
ABN-Amro (B)
6.850%, dated 06/30/00, matures
07/03/00, repurchase price
$10,005,708 (collateralized by
U.S. Government Obligation,
par value $10,920,010, 5.800%,
09/01/08; with total market
value $10,202,611) 10,000 10,000
Lehman Brothers, Inc. (B)
6.700%, dated 06/30/00, matures
07/03/00, repurchase price
$1,700,949 (collateralized by
U.S. Treasury Note, par value
$1,725,000, 6.250%, 10/31/01;
with total market
value $1,736,937) 1,700 1,700
Paribas Corporation (B)
6.850%, dated 06/30/00, matures
07/03/00, repurchase price
$2,901,655 (collateralized
by various U.S. Government
Obligations, ranging in par
value $50,000 - $1,216,998,
5.500% - 7.000%, 02/01/14 -
06/01/29; with total market
value $2,998,444) 2,900 2,900
--------------------------------------------------------------------------------
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
Warburg Dillion (B)
6.850%, dated 06/30/00, matures
07/03/00 repurchase price
$8,805,023 (collateralized by
U.S. Government Obligation,
par value $10,065,000, 5.500%,
09/01/14; with total market
value $8,977,178) $8,800 $ 8,800
-------
Total Repurchase Agreements
(Cost $23,400) 23,400
-------
Total Investments -- 100.1%
(Cost $63,932) 63,932
-------
Other Assets and Liabilities, Net -- (0.1%) (89)
-------
NET ASSETS:
Fund Shares of Class A (unlimited
authorization -- no par value)
based on 63,848,984 outstanding
shares of beneficial interest 63,849
Undistributed net
investment income 3
Accumulated net realized loss
on investments (9)
-------
Total Net Assets -- 100.0% $63,843
=======
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, 2000. THE DATE SHOWN IS THE EARLIER OF THE
RESET DATE OR THE DEMAND 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
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
3
<PAGE>
STATEMENT OF NET ASSETS
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SEI LIQUID ASSET TRUST -- JUNE 30, 2000
PRIME OBLIGATION FUND
--------------------------------------------------------------------------------
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
COMMERCIAL PAPER -- 52.4%
BANKS -- 2.5%
Wells Fargo & Company
6.600%, 08/17/00 $40,000 $ 39,655
----------
CHEMICALS -- 1.5%
E.I. du Pont de Nemours
6.540%, 08/18/00 25,000 24,782
----------
FINANCIAL SERVICES -- 11.8%
Associates Corporation of
North America
6.650%, 07/07/00 40,000 39,956
Ford Motor Credit Corporation
6.530%, 07/26/00 35,000 34,841
General Motors Acceptance
Corporation
6.550%, 08/08/00 45,000 44,689
John Deere Capital Corporation
6.540%, 07/17/00 30,000 29,913
Prudential Funding Corporation
6.560%, 07/18/00 40,000 39,876
----------
189,275
----------
HOUSEHOLD PRODUCTS -- 4.2%
Gillette Company
6.900%, 07/05/00 45,000 44,965
Hubbell Incorporated
6.980%, 07/03/00 21,675 21,667
----------
66,632
----------
INVESTMENT BANKER/BROKER DEALER -- 7.4%
Bear Stearns & Company
6.570%, 08/08/00 35,000 34,757
Goldman Sachs Group LP
6.560%, 08/17/00 40,000 39,657
Morgan Stanley Dean Witter
6.540%, 08/11/00 45,000 44,665
----------
119,079
----------
LEASING COMPANY -- 2.5%
Pitney Bowes Credit Corporation
6.950%, 07/05/00 40,000 39,969
----------
MEASURING DEVICES -- 1.4%
Honeywell Incorporated
6.620%, 07/27/00 22,250 22,144
----------
PRINTING & PUBLISHING -- 1.3%
Scripps (Ew) Company
6.580%, 08/15/00 20,100 19,935
----------
--------------------------------------------------------------------------------
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
SPECIAL PURPOSE ENTITY -- 16.3%
Aesop Funding Corporation
6.660%, 08/16/00 $40,000 $ 39,660
Corporate Asset Funding
Company
6.550%, 08/04/00 25,000 24,845
Corporate Receivable
Corporation
6.600%, 08/04/00 20,000 19,875
Edison Asset Securitization LLC
6.630%, 08/09/00 35,000 34,749
Enterprise Funding Corporation
6.560%, 08/14/00 20,000 19,840
Greyhawk Funding LLC
6.570%, 07/05/00 45,000 44,967
Park Avenue Receivable
6.540%, 07/10/00 38,349 38,286
Windmill Funding Corporation
6.550%, 07/28/00 40,000 39,803
----------
262,025
----------
STEEL & STEEL WORKS -- 3.5%
Alcoa Incorporated
6.550%, 08/07/00 20,000 19,865
6.530%, 08/23/00 37,000 36,644
----------
56,509
----------
Total Commercial Paper
(Cost $840,005) 840,005
----------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 5.7%
FHLB
6.480%, 03/20/01 30,000 29,977
FNMA
6.480%, 02/22/01 12,186 12,180
FNMA MTN
6.520%, 03/16/01 50,000 49,976
----------
Total U.S. Government Agency Obligations
(Cost $92,133) 92,133
----------
CERTIFICATES OF DEPOSIT/BANK NOTES -- 13.1%
American Express Centurion Bank
6.600%, 07/24/00 30,000 30,000
6.590%, 07/27/00 40,500 40,500
Citibank New York
7.410%, 05/30/01 20,000 20,000
First Tennessee Bank (A)
6.730%, 08/23/00 40,000 39,990
First Union
6.740%, 02/15/01 40,000 40,000
4
<PAGE>
--------------------------------------------------------------------------------
PRIME OBLIGATION FUND (CONCLUDED)
--------------------------------------------------------------------------------
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
First USA Bank
6.050%, 09/18/00 $20,000 $ 19,998
Key Bank North America (A)
6.893%, 08/31/00 20,000 20,000
----------
Total Certificates of Deposit/Bank Notes
(Cost $210,488) 210,488
----------
INSURANCE FUNDING AGREEMENTS -- 5.6%
Allstate Corporation (A)
6.696%, 07/03/00 10,000 10,000
6.900%, 09/15/00 20,000 20,000
Metropolitan Life Insurance
Company (A)
6.471%, 08/01/00 25,000 25,000
Monumental Life Insurance
Company (A)
6.480%, 07/03/00 25,000 25,000
Travelers Insurance (A)
6.923%, 08/31/00 9,000 9,000
----------
Total Insurance Funding Agreements
(Cost $89,000) 89,000
----------
CORPORATE BONDS/MEDIUM TERM NOTES -- 6.5%
Albertson's Incorporated (A)
6.629%, 07/14/00 50,000 49,999
AT&T Corporation (A)
6.240%, 07/13/00 30,000 30,000
6.683%, 08/07/00 10,000 10,000
SMM Trust 99-A (A)
6.400%, 07/13/00 15,000 15,000
----------
Total Corporate Bonds/Medium
Term Notes
(Cost $104,999) 104,999
----------
TIME DEPOSITS -- 14.0%
Fifth Third Bancorp
6.590%, 07/20/00 40,000 40,000
Huntington National Bank
7.000%, 07/03/00 45,000 45,000
Marshall and Ilsley Bank
6.875%, 07/03/00 30,000 30,000
PNC Bank North America
Pittsburgh
7.000%, 07/03/00 40,000 40,000
Suntrust Atlanta
7.000%, 07/03/00 40,000 40,000
Wachovia Bank
6.875%, 07/03/00 30,043 30,043
----------
Total Time Deposits
(Cost $225,043) 225,043
----------
--------------------------------------------------------------------------------
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
REPURCHASE AGREEMENTS -- 2.9%
Paribas Corporation (B)
6.850%, dated 06/30/00, matures
07/03/00, repurchase price
$26,014,842 (collateralized
by various U.S. Government
Obligations, ranging in par
value $3,945,000 - $24,000,000,
6.000% - 6.390%, 02/07/01 -
05/15/08; with total market
value $26,521,519) $26,000 $ 26,000
Warburg Dillion (B)
6.850%, dated 06/30/00, matures
07/03/00 repurchase price
$19,811,303 (collateralized by
U.S. Government Obligation,
par value $22,645,000, 5.500%,
09/01/14; with total market
value $20,197,536) 19,800 19,800
----------
Total Repurchase Agreements
(Cost $45,800) 45,800
----------
Total Investments -- 100.2%
(at amortized cost) 1,607,468
----------
Other Assets and Liabilities, Net -- (0.2%) (3,410)
----------
NET ASSETS:
Fund Shares of Class A (unlimited
authorization -- no par value)
based on 1,604,063,361 outstanding
shares of beneficial interest 1,604,063
Accumulated net realized loss
on investments (5)
----------
Total Net Assets -- 100.0% $1,604,058
==========
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, 2000. THE DATE SHOWN IS THE EARLIER OF THE
RESET DATE OR DEMAND DATE.
(B) TRI-PARTY REPURCHASE AGREEMENT
FHLB -- FEDERAL HOME LOAN BANK
FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION
MTN -- MEDIUM TERM NOTE
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
5
<PAGE>
STATEMENT OF OPERATIONS (000)
--------------------------------------------------------------------------------
SEI LIQUID ASSET TRUST -- FOR THE YEAR ENDED JUNE 30, 2000
<TABLE>
<CAPTION>
---------- ---------- -----------
TREASURY GOVERNMENT PRIME
SECURITIES SECURITIES OBLIGATION
FUND FUND FUND
---------- ---------- -----------
Interest Income $27,165 $4,649 $86,458
------- ------ -------
EXPENSES:
Management fees 2,079 346 6,191
Less: management fees waived (114) (16) (262)
Investment advisory fees 165 27 492
Less: investment advisory fees waived (103) (17) (308)
Shareholder servicing fees -- Class A 1,237 206 3,685
Less: shareholder servicing fees waived -- Class A (1,237) (206) (3,685)
Distribution fees -- Class D 1 -- --
Less: distribution fees waived -- Class D -- -- --
Wire agent fees 8 1 40
Custodian fees 31 4 82
Professional fees 23 2 65
Trustee fees 5 1 16
Printing 57 9 128
Insurance 4 1 5
Rating 4 -- --
Other fees 23 5 45
------- ------ -------
Total net expenses 2,183 363 6,494
------- ------ -------
NET INVESTMENT INCOME 24,982 4,286 79,964
------- ------ -------
Net realized gain (loss) from security transactions (1) (6) 1
------- ------ -------
NET INCREASE IN NET ASSETS FROM OPERATIONS $24,981 $4,280 $79,965
======= ====== =======
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
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 YEARS ENDED JUNE 30
-------------------------- ----------------------- --------------------------
TREASURY GOVERNMENT PRIME
SECURITIES SECURITIES OBLIGATION
FUND FUND FUND
-------------------------- ----------------------- --------------------------
2000 1999 2000 1999 2000 1999
-------------------------- ----------------------- --------------------------
OPERATIONS:
<S> <C> <C> <C> <C> <C> <C>
Net investment income $ 24,982 $ 29,276 $ 4,286 $ 4,305 $ 79,964 $ 59,360
Net realized gain (loss) from security
transactions (1) 22 (6) 17 1 71
----------- ------------ ---------- ------------ ------------ ------------
Net increase in net assets resulting
from operations 24,981 29,298 4,280 4,322 79,965 59,431
----------- ------------ ---------- ------------ ------------ ------------
DIVIDENDS DISTRIBUTED FROM:
Net investment income:
Class A (25,111) (29,267) (4,284) (4,304) (80,017) (59,360)
Class D (11) (9) -- -- -- --
----------- ------------ ---------- ------------ ------------ ------------
Total dividends distributed (25,122) (29,276) (4,284) (4,304) (80,017) (59,360)
----------- ------------ ---------- ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS
(ALL AT $1.00 PER SHARE):
Class A:
Proceeds from shares issued 2,937,877 4,625,192 424,217 585,676 10,961,861 8,708,570
Reinvestment of cash distributions 849 970 528 455 38,161 21,243
Cost of shares redeemed (3,101,500) (4,664,071) (469,366) (582,882) (10,731,213) (8,341,737)
----------- ------------ ---------- ------------ ------------ ------------
Increase (decrease) in net assets derived
from Class A transactions (162,774) (37,909) (44,621) 3,249 268,809 388,076
----------- ------------ ---------- ------------ ------------ ------------
Class D:
Proceeds from shares issued 6 43 -- -- -- --
Reinvestment of cash distributions 10 7 -- -- -- --
Cost of shares redeemed (15) (55) -- -- -- --
----------- ------------ ---------- ------------ ------------ ------------
Increase (decrease) in net assets derived
from Class D transactions 1 (5) -- -- -- --
----------- ------------ ---------- ------------ ------------ ------------
Net increase (decrease) in net assets derived
from capital share transactions (162,773) (37,914) (44,621) 3,249 268,809 388,076
----------- ------------ ---------- ------------ ------------ ------------
Net increase (decrease) in net assets (162,914) (37,892) (44,625) 3,267 268,757 388,147
----------- ------------ ---------- ------------ ------------ ------------
NET ASSETS:
Beginning of Period 566,129 604,021 108,468 105,201 1,335,301 947,154
----------- ------------ ---------- ------------ ------------ ------------
End of Period $ 403,215 $ 566,129 $ 63,843 $ 108,468 $ 1,604,058 $ 1,335,301
=========== ============ ========== ============ ============ ============
</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 -- FOR THE YEARS ENDED JUNE 30
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
NET ASSET REALIZED AND DISTRIBUTIONS DISTRIBUTIONS
VALUE NET UNREALIZED FROM NET FROM NET ASSET
BEGINNING INVESTMENT GAINS ON INVESTMENT REALIZED CAPITAL VALUE END TOTAL
OF PERIOD INCOME SECURITIES INCOME GAINS OF PERIOD RETURN
------------------------------------------------------------------------------------------------------------
-----------------------
TREASURY SECURITIES FUND
-----------------------
CLASS A
<S> <C> <C> <C> <C> <C>
2000 $1.00 $0.05 -- $(0.05) -- $1.00 5.24%
1999 1.00 0.05 -- (0.05) -- 1.00 4.72
1998 1.00 0.05 -- (0.05) -- 1.00 5.29
1997 1.00 0.05 -- (0.05) -- 1.00 5.10
1996 1.00 0.05 -- (0.05) -- 1.00 5.37
CLASS D
2000 $1.00 $0.05 -- $(0.05) -- $1.00 4.87%
1999 1.00 0.04 -- (0.04) -- 1.00 4.35
1998 1.00 0.05 -- (0.05) -- 1.00 4.92
1997 1.00 0.05 -- (0.05) -- 1.00 4.73
1996 1.00 0.05 -- (0.05) -- 1.00 5.01
---------------------------
GOVERNMENT SECURITIES FUND
---------------------------
CLASS A
2000 $1.00 $0.05 -- $(0.05) -- $1.00 5.37%
1999 1.00 0.05 -- (0.05) -- 1.00 4.74
1998 1.00 0.05 -- (0.05) -- 1.00 5.21
1997 1.00 0.05 -- (0.05) -- 1.00 5.09
1996 1.00 0.05 -- (0.05) -- 1.00 5.30
----------------------
PRIME OBLIGATION FUND
----------------------
CLASS A
2000 $1.00 $0.05 -- $(0.05) -- $1.00 5.55%
1999 1.00 0.05 -- (0.05) -- 1.00 4.97
1998 1.00 0.05 -- (0.05) -- 1.00 5.40
1997 1.00 0.05 -- (0.05) -- 1.00 5.20
1996 1.00 0.05 -- (0.05) -- 1.00 5.39
</TABLE>
<TABLE>
<CAPTION>
RATIO OF
NET
RATIO OF RATIO OF INVESTMENT
NET EXPENSES INCOME
RATIO OF INVESTMENT TO AVERAGE TO AVERAGE
NET ASSETS EXPENSES INCOME NET ASSETS NET ASSETS
END OF TO AVERAGE TO AVERAGE (EXCLUDING (EXCLUDING
PERIOD (000) NET ASSETS NET ASSETS WAIVERS) WAIVERS)
----------------------------------------------------------------------------------------------------------
-----------------------
TREASURY SECURITIES FUND
-----------------------
CLASS A
<S> <C> <C> <C> <C> <C>
2000 $ 402,982 0.44% 5.03% 0.73% 4.74%
1999 565,897 0.44 4.62 0.73 4.33
1998 603,783 0.44 5.17 0.73 4.88
1997 706,232 0.44 4.98 0.74 4.68
1996 832,393 0.44 5.27 0.52 5.19
CLASS D
2000 $ 233 0.79% 4.72% 0.88% 4.63%
1999 232 0.79 4.27 0.88 4.18
1998 238 0.79 4.82 0.88 4.73
1997 216 0.79 4.64 0.89 4.54
1996 219 0.79 4.92 0.87 4.84
---------------------------
GOVERNMENT SECURITIES FUND
---------------------------
CLASS A
2000 $ 63,843 0.44% 5.18% 0.73% 4.89%
1999 108,468 0.44 4.66 0.73 4.37
1998 105,201 0.44 5.10 0.73 4.81
1997 148,606 0.44 4.98 0.71 4.71
1996 169,133 0.44 5.19 0.54 5.09
----------------------
PRIME OBLIGATION FUND
----------------------
CLASS A
2000 $1,604,058 0.44% 5.41% 0.73% 5.12%
1999 1,335,301 0.44 4.84 0.73 4.55
1998 947,154 0.44 5.27 0.73 4.98
1997 823,270 0.44 5.08 0.74 4.78
1996 747,852 0.44 5.27 0.53 5.18
</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>
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
SEI LIQUID ASSET TRUST -- JUNE 30, 2000
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, 2000, no shares of the Institutional Cash Fund were sold. As of June
30, 2000 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.
RECLASSIFICATION OF COMPONENTS OF NET ASSETS--The timing and
characterization of certain income and capital gains distributions are
determined annually in accordance with federal tax regulations which may differ
from generally accepted accounting principles. As a result, net investment
income (loss) and net realized gain (loss) on investment transactions for the
reporting period may differ significantly from distributions during such period.
These book/ tax differences may be temporary or permanent in nature. To the
extent these differences are permanent, they are charged or credited to
paid-in-capital or accumulated net realized gain, as appropriate, in the period
that the differences arise. Accordingly the following permanent differences have
been reclassified to/from the following account during the fiscal year ended
June 30, 2000:
UNDISTRIBUTED
ACCUMULATED NET INVESTMENT
PAID-IN-CAPITAL REALIZED GAIN INCOME
FUNDS (000) (000) (000)
----- --------------- ------------- --------------
Government
Securities $-- $(5) $5
9
<PAGE>
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
SEI LIQUID ASSET TRUST -- JUNE 30, 2000
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.
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 excluding 12B-1 and Transfer Agent for Class D 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, 2000, 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, 2000, 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
Government Securities
Fund: 3,215 expiring in 2008
Prime Obligation
Fund: 2,368 expiring in 2005
3,005 expiring in 2006
During the fiscal year ended June 30, 2000, the Prime Obligation Fund utilized
$748 in capital loss carryforwards.
Subsequent to October 31, 1999, the Funds recognized net capital losses for tax
purposes that have been deferred and can be used to offset future capital gains
at June 30, 2000.
POST OCTOBER 31, 1999 LOSSES
----------------------------
Treasury Securities Fund $1,376
Government Securities Fund 5,958
10
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
--------------------------------------------------------------------------------
SEI LIQUID ASSET TRUST -- JUNE 30, 2000
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, 2000, the results of each of their operations for the year then ended,
the changes in each of their net assets for each of the two years in the period
then ended and the Financial Highlights for each of the five years in the period
then ended, in conformity with accounting principles generally accepted in the
United States. 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 auditing standards generally accepted in the
United States, 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, 2000 by
correspondence with the custodian, provide a reasonable basis for the opinion
expressed above.
PricewaterhouseCoopers LLP
Philadelphia, PA
August 11, 2000
11
<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, 2000, each Fund is designating long term
capital gains, qualifying dividends and exempt income with regard to
distributions paid during the year as follows:
<TABLE>
<CAPTION>
(A) (B)
LONG TERM ORDINARY (C) (D) (E)
CAPITAL GAINS INCOME TOTAL TAX 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%
<FN>
(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.
</FN>
</TABLE>
Please consult your tax adviser for proper treatment of this information.
12
<PAGE>
----------------------
SEI LIQUID ASSET TRUST
----------------------
ANNUAL REPORT
----------------------
JUNE 30, 2000
Robert A. Nesher
CHAIRMAN
TRUSTEES
William M. Doran
F. Wendell Gooch
Rosemarie B. Greco
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
Timothy D. Barto
VICE PRESIDENT, ASSISTANT SECRETARY
James Foggo
VICE PRESIDENT, ASSISTANT SECRETARY
Lydia Gavalis
VICE PRESIDENT, ASSISTANT SECRETARY
Cynthia M. Parrish
VICE PRESIDENT, ASSISTANT SECRETARY
Kevin P. Robins
VICE PRESIDENT, ASSISTANT SECRETARY
Christine McCullough
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 OMITTED] INVESTMENTS
DISTRIBUTION
CO.
Oaks, PA 19456-1100
800-DIAL-SEI/800-342-5734
SEI-F-097 (7/00)
