<PAGE> 1
SEI TAX EXEMPT TRUST
TAX FREE PORTFOLIO
SUPPLEMENT DATED MAY 1, 1996 TO
THE CLASS A PROSPECTUS
DATED DECEMBER 31, 1995
THIS SUPPLEMENT TO THE PROSPECTUS SUPERSEDES AND REPLACES ANY EXISTING
SUPPLEMENTS TO THE PROSPECTUS. THIS SUPPLEMENT PROVIDES NEW AND ADDITIONAL
INFORMATION BEYOND THAT CONTAINED IN THE PROSPECTUS, AND SHOULD BE READ IN
CONJUNCTION WITH SUCH PROSPECTUS.
At a meeting held on March 18, 1996, the Trustees eliminated the Trust's Rule
12b-1 Distribution Plan for Class A shares, and approved a Class A shareholder
servicing plan that provides for shareholder servicing fees payable to the
Distributor of up to .25% of average net assets. These new arrangements are to
be effective as of May 1, 1996. Under this new plan, the Distributor may provide
a broad range of shareholder and administrative services itself, or may enter
into arrangements under which third parties provide such services and are
compensated by the Distributor. As a result of this change, effective May 1,
1996, the following "Annual Operating Expenses" table replaces the table on page
2 of the Prospectus:
ANNUAL OPERATING EXPENSES (as a percentage of average net assets)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------
TAX FREE PORTFOLIO
------------------
<S> <C>
Management/Advisory Fees(1) .40%
12b-1 Fees None
Total Other Expenses .05%
Shareholder Servicing Expenses (after fee waiver)(2) .01%
- -----------------------------------------------------------------------------------------------
Total Operating Expenses (after fee waiver)(3) .45%
- -----------------------------------------------------------------------------------------------
</TABLE>
(1) The Portfolio's Management/Advisory fees have been restated to reflect
reductions in fee waivers.
(2) The Distributor has waived, on a voluntary basis, all or a portion of
its shareholder servicing fee, and the Shareholder Servicing Fees shown
reflect this waiver. The Distributor reserves the right to terminate
its waiver at any time in its sole discretion. Absent such waiver,
Shareholder Servicing Fees would be .25% for the Portfolio.
(3) Absent this fee waiver, Total Operating Expenses for Class A shares of
the Portfolio would be .69%. Additional information may be found under
Adviser" and "The Manager and Shareholder Servicing Agent."
EXAMPLE
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
An investor in Class A shares of the Portfolio would pay the following expenses
on a $1,000 investment assuming (1) a 5% annual return and (2) redemption at the
end of each time period:
1 YR. 3 YRS. 5 YRS. 10 YRS.
----- ------ ------ -------
<S> <C> <C> <C> <C>
$5 $14 $25 $57
- --------------------------------------------------------------------------------
</TABLE>
THE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE
EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.
The purpose of the expense table and example is to assist the investor in
understanding the various costs and expenses that may be directly or indirectly
borne by investors in the Portfolio's Class A shares. The information set forth
in the foregoing table and example relates only to the Portfolios' Class A
shares. The Portfolio also offers Class D shares, which are subject to the same
expenses, except that Class D shares bear different distribution and transfer
agent costs. A person who purchases shares through a financial institution may
be charged separate fees by that institution. Additional information regarding
these differences may be found under "The Manager and Shareholder Servicing
Agent," "Distribution" and "The Adviser."
--------------
<PAGE> 2
In connection with the elimination of the Portfolio's Class A Distribution Plan,
the "Distribution" section on page 8 is replaced with the following:
DISTRIBUTION AND SHAREHOLDER SERVICES.
SEI Financial Services Company (the "Distributor"), a wholly-owned subsidiary of
SEI, serves as the Portfolio's distributor pursuant to a distribution agreement
with the Trust. The Portfolio has adopted a distribution plan for its Class D
shares (the "Class D Plan") pursuant to Rule 12b-1 under the Investment Company
Act of 1940, as amended (the "1940 Act").
The Portfolio has adopted a shareholder servicing plan for Class A shares (the
"Service Plan") under which a shareholder servicing fee of up to .25% of average
daily net assets attributable to Class A shares will be paid to the Distributor.
Under the Service Plan, the Distributor may perform, or may compensate other
service providers for performing, the following shareholder and administrative
services: maintaining client accounts; arranging for bank wires; responding to
client inquiries concerning services provided on investments; assisting clients
in changing dividend options, account designations and addresses;
sub-accounting; providing information on share positions to clients; forwarding
shareholder communications to clients; processing purchase, exchange and
redemption orders; and processing dividend payments. Under the Service Plan, the
Distributor may retain as a profit any difference between the fee it receives
and the amount it pays to third parties.
It is possible that an institution may offer different classes of shares to its
customers and thus receive different compensation with respect to different
classes. These financial institutions may also charge separate fees to their
customers.
The Trust may also execute brokerage or other agency transactions through the
Distributor for which the Distributor may receive usual and customary
compensation.
In addition, the Distributor may, from time to time in its sole discretion,
institute one or more promotional incentive programs, which will be paid by the
Distributor from the sales charge it receives or from any other source available
to it. Under any such program, the Distributor will provide promotional
incentives, in the form of cash or other compensation, including merchandise,
airline vouchers, trips and vacation packages, to all dealers selling shares of
the Portfolio. Such promotional incentives will be offered uniformly to all
dealers and predicated upon the amount of shares of the Portfolio sold by the
dealer.
-----------------------
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
<PAGE> 3
SEI TAX EXEMPT TRUST
TAX FREE PORTFOLIO
SUPPLEMENT DATED MAY 1, 1996 TO
THE CLASS D PROSPECTUS
DATED DECEMBER 1, 1995
THIS SUPPLEMENT TO THE PROSPECTUS SUPERSEDES AND REPLACES ANY EXISTING
SUPPLEMENTS TO THE PROSPECTUS. THIS SUPPLEMENT PROVIDES NEW AND ADDITIONAL
INFORMATION BEYOND THAT CONTAINED IN THE PROSPECTUS, AND SHOULD BE READ IN
CONJUNCTION WITH SUCH PROSPECTUS.
At a meeting held on March 18, 1996, the Trustees reduced the payments available
under the existing Rule 12b-1 Distribution Plan to an amount not to exceed .25%
by eliminating the reimbursement component of the Plan. These new arrangements
are to be effective as of May 1, 1996. Payments made under the Plan are
characterized as compensation, and are not directly tied to distribution
expenses incurred by the Distributor. As a result of this change, effective May
1, 1996, the following "Shareholder Transaction Expenses " table replaces the
table on page 4 of the Prospectus:
SHAREHOLDER TRANSACTION EXPENSES (as a percentage of offering price)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
TAX FREE
PORTFOLIO
---------
<S> <C>
Maximum Sales Charge Imposed on Purchases None
Maximum Sales Charge Imposed on Reinvested
Dividends None
Redemption Fees(1) None
- --------------------------------------------------------------------------------------
ANNUAL OPERATING EXPENSES (as a percentage of average net assets)
- --------------------------------------------------------------------------------------
Management/Advisory Fees(2) .40%
12b-1 Fees (after waiver)(3) .21%
Other Expenses .19%
- --------------------------------------------------------------------------------------
Total Operating Expenses (after fee waiver)(4) .80%
- --------------------------------------------------------------------------------------
</TABLE>
1. A charge, currently $10.00, is imposed on wires of redemption proceeds
of the Portfolio's Class D shares.
2. The Portfolio's Management/Advisory fees have been restated to reflect
reductions in fee waivers.
3. The Distributor has waived, on a voluntary basis, all or a portion of
its 12b-1 fee, and the 12b-1 Fees shown reflect this waiver. The
Distributor reserves the right to terminate its waiver at any time in
its sole discretion. Absent such waiver, 12b-1 Fees would be .25% for
the Portfolio.
4. Absent this fee waiver, the Total Operating Expenses of the Class D
shares of the Portfolio would be .84%. Additional information may be
found under "The Adviser" and "The Manager and Shareholder Servicing
Agent."
EXAMPLE
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------
You would pay the following expenses on a $1,000 investment in the Class D
shares of the Portfolio assuming (1) a 5% annual return and (2) redemption at
the end of each time period:
1 YR. 3 YRS. 5 YRS. 10 YRS.
----- ------ ------ -------
<S> <C> <C> <C> <C>
$8 $26 $44 $99
- -----------------------------------------------------------------------------
</TABLE>
THE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE
EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.
The purpose of the expense table and example is to assist the investor in
understanding the various costs and expenses that may be directly or indirectly
borne by investors in Class D shares of the Portfolio. The information set forth
in the foregoing table and example relates only to the Class D shares. The
Portfolio also offers Class A shares, which are subject to the same expenses,
except that Class A shares bear different distribution and transfer agent costs.
A person who purchases shares through an account with a financial institution
may be charged separate fees by that institution. Additional information may be
found under "The Manager and Shareholder Servicing Agent," "Distribution" and
"The Adviser."
Long-term shareholders may pay more than the economic equivalent of the maximum
front-end sales charges permitted by the Rules of Fair Practice of the National
Association of Securities Dealers, Inc. ("NASD").
---------------
<PAGE> 4
In connection with the elimination of the reimbursement component of the Class D
Rule 12b-1 Plan and the elimination of the Class A Plan, the "Distribution"
section on pages and 13 and 14 is amended as follows:
The second sentence of the first paragraph is amended to delete the reference to
the Class A Plan.
The following sentence is inserted at the end of the first paragraph:
The Portfolio has adopted a shareholder servicing plan for their Class
A shares (the "Class A Service Plan").
The second and third paragraphs are deleted.
The first sentence of the fourth paragraph is deleted and the following sentence
is inserted:
The Class D Plan provides for payments to the Distributor at an annual
rate of .25% of the Portfolio's average daily net assets attributable
to Class D shares.
----------------------
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
<PAGE> 5
SEI TAX EXEMPT TRUST
INTERMEDIATE-TERM MUNICIPAL PORTFOLIO
SUPPLEMENT DATED MAY 1, 1996 TO
THE CLASS A PROSPECTUS
DATED DECEMBER 31, 1995
THIS SUPPLEMENT TO THE PROSPECTUS SUPERSEDES AND REPLACES ANY EXISTING
SUPPLEMENTS TO THE PROSPECTUS. THIS SUPPLEMENT PROVIDES NEW AND ADDITIONAL
INFORMATION BEYOND THAT CONTAINED IN THE PROSPECTUS, AND SHOULD BE READ IN
CONJUNCTION WITH SUCH PROSPECTUS.
At a meeting held on March 18, 1996, the Trustees eliminated the Trust's Rule
12b-1 Distribution Plan for Class A shares, and approved a Class A shareholder
servicing plan that provides for shareholder servicing fees payable to the
Distributor of up to .25% of average net assets. These new arrangements are to
be effective as of May 1, 1996. Under this new plan, the Distributor may provide
a broad range of shareholder and administrative services itself, or may enter
into arrangements under which third parties provide such services and are
compensated by the Distributor. As a result of this change, effective May 1,
1996, the following "Annual Operating Expenses" table replaces the table on page
2 of the Prospectus:
ANNUAL OPERATING EXPENSES (as a percentage of average net assets)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
INTERMEDIATE-TERM
MUNICIPAL PORTFOLIO
-------------------
<S> <C>
Management/Advisory Fees (after fee waiver)(1) .53%
12b-1 Fees None
Total Other Expenses .07%
Shareholder Servicing Expenses (after fee waiver)(2) .00%
- ---------------------------------------------------------------------------------------
Total Operating Expenses (after fee waivers)(3) .60%
- ---------------------------------------------------------------------------------------
</TABLE>
(1) SEI Financial Management Corporation ("SFM") has waived, on a voluntary
basis, a portion of its fees, and the Management/Advisory fees shown
reflect these voluntary waivers. SFM reserves the right to terminate
this waiver at any time in its sole discretion. Absent such fee waiver,
Management/Advisory fees for the Portfolio would be .57%. The
Portfolio's Management/Advisory fees have been restated to reflect
reductions in fee waivers.
(2) The Distributor has waived, on a voluntary basis, all or a portion of
its shareholder servicing fee, and the Shareholder Servicing Fees shown
reflect this waiver. The Distributor reserves the right to terminate
its waiver at any time in its sole discretion. Absent such waiver,
Shareholder Servicing Fees would be .25% for the Portfolio.
(3) Absent these fee waivers, Total Operating Expenses for Class A shares
of the Portfolio would be .89%. Additional information may be found
under "The Adviser" and "The Manager and Shareholder Servicing Agent."
EXAMPLE
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
An investor in Class A shares of the Portfolio would pay the following expenses
on a $1,000 investment assuming (1) a 5% annual return and (2) redemption at the
end of each time period:
1 YR. 3 YRS. 5 YRS. 10 YRS.
----- ------ ------ -------
<S> <C> <C> <C>
$6 $19 $33 $75
- --------------------------------------------------------------------------------
</TABLE>
THE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE
EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.
The purpose of the expense table and example is to assist the investor in
understanding the various costs and expenses that may be directly or indirectly
borne by investors in the Portfolio's Class A shares. The information set forth
in the foregoing table and example relates only to the Portfolio's Class A
shares. The Portfolio also offers Class D shares, which are subject to the same
expenses except that Class D shares bear different distribution and transfer
agent costs and are subject to a sales charge. A person who purchases shares
through a financial institution may be charged separate fees by that
institution. Additional information may be found under "The Manager and
Shareholder Servicing Agent," "The Adviser" and "Distribution."
------------------------
<PAGE> 6
In connection with the elimination of the Portfolio's Class A Distribution Plan
and the approval of a shareholder servicing plan, the "Distribution" section on
pages 9 and 10 is replaced with the following:
DISTRIBUTION AND SHAREHOLDER SERVICES.
SEI Financial Services Company (the "Distributor"), a wholly-owned subsidiary of
SEI, serves as the Portfolio's distributor pursuant to a distribution agreement
with the Trust. The Portfolio has adopted a distribution plan for its Class D
shares (the "Class D Plan") pursuant to Rule 12b-1 under the Investment Company
Act of 1940, as amended (the "1940 Act").
The Portfolio has adopted a shareholder servicing plan for Class A shares (the
"Service Plan") under which a shareholder servicing fee of up to .25% of average
daily net assets attributable to Class A shares will be paid to the Distributor.
Under the Service Plan, the Distributor may perform, or may compensate other
service providers for performing, the following shareholder and administrative
services: maintaining client accounts; arranging for bank wires; responding to
client inquiries concerning services provided on investments; assisting clients
in changing dividend options, account designations and addresses;
sub-accounting; providing information on share positions to clients; forwarding
shareholder communications to clients; processing purchase, exchange and
redemption orders; and processing dividend payments. Under the Service Plan, the
Distributor may retain as a profit any difference between the fee it receives
and the amount it pays to third parties.
It is possible that an institution may offer different classes of shares to its
customers and thus receive different compensation with respect to different
classes. These financial institutions may also charge separate fees to their
customers.
The Trust may also execute brokerage or other agency transactions through the
Distributor for which the Distributor may receive usual and customary
compensation.
In addition, the Distributor may, from time to time in its sole discretion,
institute one or more promotional incentive programs, which will be paid by the
Distributor from the sales charge it receives or from any other source available
to it. Under any such program, the Distributor will provide promotional
incentives, in the form of cash or other compensation, including merchandise,
airline vouchers, trips and vacation packages, to all dealers selling shares of
the Portfolio. Such promotional incentives will be offered uniformly to all
dealers and predicated upon the amount of shares of the Portfolio sold by the
dealer.
-----------------------
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
<PAGE> 7
SEI TAX EXEMPT TRUST
INTERMEDIATE-TERM MUNICIPAL PORTFOLIO
SUPPLEMENT DATED MAY 1, 1996 TO
THE CLASS D PROSPECTUS
DATED DECEMBER 31, 1995
THIS SUPPLEMENT TO THE PROSPECTUS SUPERSEDES AND REPLACES ANY EXISTING
SUPPLEMENTS TO THE PROSPECTUS. THIS SUPPLEMENT PROVIDES NEW AND ADDITIONAL
INFORMATION BEYOND THAT CONTAINED IN THE PROSPECTUS, AND SHOULD BE READ IN
CONJUNCTION WITH SUCH PROSPECTUS.
At a meeting held on March 18, 1996, the Trustees reduced the payments available
under the existing Rule 12b-1 Distribution Plan to an amount not to exceed .30%
by eliminating the reimbursement component of the Plan. These new arrangements
are to be effective as of May 1, 1996. Payments made under the Plan are
characterized as compensation, and are not directly tied to distribution
expenses incurred by the Distributor. As a result of this change, effective May
1, 1996, the following "Shareholder Transaction Expenses" table replaces the
table on page 4 of the Prospectus:
SHAREHOLDER TRANSACTION EXPENSES (as a percentage of offering price)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERMEDIATE-TERM
MUNICIPAL PORTFOLIO
-------------------
<S> <C>
Maximum Sales Charge Imposed on Purchases 3.50%
Maximum Sales Charge Imposed on Reinvested Dividends None
Redemption Fees(1) None
- --------------------------------------------------------------------------------
ANNUAL OPERATING EXPENSES (as a percentage of average net assets)
- --------------------------------------------------------------------------------
Management/Advisory Fees (after fee waiver)(2) .53%
12b-1 Fees(after fee waiver)(3) .25%
Other Expenses .22%
- --------------------------------------------------------------------------------
Total Operating Expenses (after fee waivers)(4) 1.00%
- --------------------------------------------------------------------------------
</TABLE>
1. A charge, currently $10.00, is imposed on wires of redemption proceeds of
the Portfolio's Class D shares.
2. SFM has waived, on a voluntary basis, a portion of its fees, and the
Management/Advisory fees shown reflect this voluntary waiver. SFM reserves
the right to terminate its waiver at any time in its sole discretion.
Absent such fee waiver, Management/Advisory fees for the Portfolio would be
.57%. The Portfolio's Management/Advisory fees have been restated to
reflect reductions in fee waivers.
3. The Distributor has waived, on a voluntary basis, all or a portion of its
12b-1 fee, and the 12b-1 Fees shown reflect this waiver. The Distributor
reserves the right to terminate its waiver at any time in its sole
discretion. Absent such waiver, 12b-1 Fees would be .30% for the Portfolio.
4. Absent these fee waivers, Total Operating Expenses for Class D shares of
the Portfolio would be 1.09%. Additional information may be found under
"The Adviser" and "The Manager and Shareholder Servicing Agent."
EXAMPLE
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
An investor in the Portfolio would pay the following expenses on a $1,000
investment assuming (1) the imposition of the maximum sales charge, (2) a
5% annual return and (3) redemption at the end of each time period: 1 YR. 3 YRS. 5 YRS. 10 YRS.
----- ------ ------ -------
<S> <C> <C> <C> <C>
$45 $66 $88 $153
</TABLE>
- --------------------------------------------------------------------------------
THE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE
EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.
The purpose of the expense table and example is to assist the investor in
understanding the various costs and expenses that may be directly or indirectly
borne by investors in Class D shares of the Portfolio. The information set forth
in the foregoing table and example relates only to the Portfolio's Class D
shares. The Portfolio also offers Class A shares, which are subject to the same
expenses, except that there are no sales charges and different distribution and
transfer agent costs. A person who purchases shares through an account with a
financial institution may be charged separate fees by that institution.
Additional information may be found under "The Manager and Shareholder Servicing
Agent," "Distribution" and "The Adviser."
The rules of the Securities and Exchange Commission require that the maximum
sales charge be reflected in the above table. However, certain investors may
qualify for reduced sales charges. See "Your Account and Doing Business with
Us." Long-term shareholders may pay more than the economic equivalent of the
maximum front-end sales charges permitted by the Rules of Fair Practice of the
National Association of Securities Dealers, Inc. ("NASD").
------------------
<PAGE> 8
In connection with the elimination of the reimbursement component of the Class D
Rule 12b-1 Plan and the elimination of the Class A Plan, the "Distribution"
section on pages 16 and 17 is amended as follows:
The second sentence of the first paragraph is amended to delete the reference to
the Class A Plan.
The following sentence is inserted at the end of the first paragraph:
The Portfolio has adopted a shareholder servicing plan for its
Class A shares (the "Class A Service Plan").
The second and third paragraphs are deleted.
The first sentence of the fourth paragraph is deleted and the following sentence
is inserted:
The Class D Plan provides for payments to the Distributor at an annual
rate of .30% of the Portfolio's average daily net assets attributable
to Class D shares.
-----------------
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
<PAGE> 9
SEI TAX EXEMPT TRUST
KANSAS TAX FREE INCOME PORTFOLIO
SUPPLEMENT DATED MAY 1, 1996 TO
THE CLASS A AND B PROSPECTUS
DATED DECEMBER 31, 1995
THIS SUPPLEMENT TO THE PROSPECTUS SUPERSEDES AND REPLACES ANY EXISTING
SUPPLEMENTS TO THE PROSPECTUS. THIS SUPPLEMENT PROVIDES NEW AND ADDITIONAL
INFORMATION BEYOND THAT CONTAINED IN THE PROSPECTUS, AND SHOULD BE READ IN
CONJUNCTION WITH SUCH PROSPECTUS.
At a meeting held on March 18, 1996, the Trustees eliminated the Trust's Rule
12b-1 Distribution Plan for Class A and Class B shares, and approved Class A and
Class B shareholder servicing plans that provide for shareholder servicing fees
payable to the Distributor of up to .25% of average net assets, as well as Class
B administrative services plans that provide for administrative service fees
payable to the Distributor of up to .05%. These new arrangements are to be
effective as of May 1, 1996. Under these new plans, the Distributor may provide
a broad range of shareholder and administrative services itself, or may enter
into arrangements under which third parties provide such services and are
compensated by the Distributor. As a result of this change, effective May 1,
1996, the following "Annual Operating Expenses" table replaces the table on page
2 of the Prospectus:
ANNUAL OPERATING EXPENSES (as a percentage of average net assets)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
CLASS A CLASS B
------- -------
<S> <C> <C> <C> <C>
Management/Advisory Fees (after fee waiver )(1) .15% .15%
12b-1 Fees None None
Total Other Expenses .06% .36%
Shareholder Servicing Expenses (after fee waiver) .00%(2) .25%
- -----------------------------------------------------------------------------------------------------------------------------
Total Operating Expenses (after fee waivers)(3) .21% .51%
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The Manager has waived, on a voluntary basis, a portion of its fee, and the
Management/Advisory fees shown reflect this voluntary waiver. The Manager
reserves the right to terminate its waiver at any time in its sole
discretion. Absent such fee waiver, Management/Advisory fees for the
Portfolio would be .45%.
(2) The Distributor has waived, on a voluntary basis, all or a portion of its
shareholder servicing fee, and the Shareholder Servicing Fees shown reflect
this waiver. The Distributor reserves the right to terminate its waiver at
any time in its sole discretion. Absent such waiver, Shareholder Servicing
Fees would be .25% for the Class A shares of the Portfolio.
(3) Absent these fee waivers, Total Operating Expenses of the Portfolio would
be .76% and .81% for Class A and Class B shares, respectively. Additional
information may be found under "The Adviser" and "The Manager and
Shareholder Servicing Agent."
EXAMPLE
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
An investor in Class A and Class B shares of the Portfolio would pay the
following expenses on a $1,000 investment assuming (1) a 5% annual return and
(2) redemption at the end of each time period:
1 YR. 3 YRS. 5 YRS. 10 YRS.
----- ------ ------ -------
<S> <C> <C> <C> <C>
Class A $2 $ 7 $12 $ 27
Class B $5 $16 $29 $ 64
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
THE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE
EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.
The purpose of the expense table and example is to assist the investor in
understanding the various costs and expenses that may be directly or indirectly
borne by investors in the Portfolio's Class A and Class B shares. The
information set forth in the foregoing table and example relates to the Class A
and Class B shares of the Portfolio. A person that purchases shares through an
account with a financial institution may be charged separate fees by that
institution. Additional information may be found under "The Manager and
Shareholder Servicing Agent," "Distribution" and "The Adviser".
Long-term Class B shareholders may eventually pay more than the economic
equivalent of the maximum front-end sales charges otherwise permitted by the
Rules of Fair Practice of the National Association of Securities Dealers, Inc.
("NASD").
------------------
<PAGE> 10
In connection with the changes to the Portfolio's Distribution Plans and the
approval of shareholder servicing plans and administrative service plans, the
"Distribution" section on pages 7 and 8 of the Prospectus is replaced with the
following:
DISTRIBUTION AND SHAREHOLDER SERVICES
SEI Financial Services Company (the "Distributor"), a wholly owned
subsidiary of SEI, serves as the Portfolio's distributor pursuant to a
distribution agreement (the "Distribution Agreement") with the Trust.
The Portfolio has adopted plans under which firms, including the
Distributor, that provide shareholder and administrative services may
receive compensation therefor. The Class A and B plans differ in a number
of ways, including the amounts that may be paid. Under each plan, the
Distributor may provide those services itself or may enter into
arrangements under which third parties provide such services and are
compensated by the Distributor. Under such arrangements the Distributor may
retain as a profit any difference between the fee it receives and the
amount it pays such third party. In addition, the Portfolio may enter into
such arrangements directly.
Under the Class A plan, the Portfolio will pay the Distributor a fee at an
annual rate of up to .25% of the average daily net assets of the Portfolio
attributable to Class A shares, in return for provision of a broad range of
shareholder and administrative services. Under the Class B shareholder
service plan, the Portfolio will pay shareholder service fees to the
Distributor at an annual rate of up to .25% of average daily net assets in
return for the Distributor's (or its agent's) efforts in maintaining client
accounts; arranging for bank wires; responding to client inquiries
concerning services provided or investment; and assisting clients in
changing dividend options, account designations and addresses. In addition,
under their administrative services plan, Class B shares will pay
administrative services fees of up to .05% of the average daily net assets
of the shares. Administrative services include sub-accounting; providing
information on share positions to clients; forwarding shareholder
communications to clients; processing purchase, exchange and redemption
orders; and processing divided payments.
It is possible that an institution may offer different classes of shares to
its customers and differing services to the Classes of the Portfolio and
thus receive compensation with respect to different classes. Theses
financial institutions may also charge separate fees to their customers.
Certain financial institutions offering shares to their customers may be
required to register as dealers pursuant to state laws.
The Distributor may, from time to time in its sole discretion, institute
one or more promotional incentive programs, which will be paid by the
Distributor from its own resources. Under any such program, the Distributor
will provide promotional incentives, in the form of cash or other
compensation, including merchandise, airline vouchers, trips and vacation
packages, to all dealers selling shares of the Portfolios. Such promotional
incentives will be offered uniformly to all dealers and predicated upon the
amount of shares of the Portfolio sold by the dealer.
-------------------
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
<PAGE> 11
SEI TAX EXEMPT TRUST
INSTITUTIONAL TAX FREE PORTFOLIO
SUPPLEMENT DATED MAY 1, 1996 TO
THE CLASS A, B & C PROSPECTUS
DATED DECEMBER 31, 1995
THIS SUPPLEMENT TO THE PROSPECTUS SUPERSEDES AND REPLACES ANY EXISTING
SUPPLEMENTS TO THE PROSPECTUS. THIS SUPPLEMENT PROVIDES NEW AND ADDITIONAL
INFORMATION BEYOND THAT CONTAINED IN THE PROSPECTUS, AND SHOULD BE READ IN
CONJUNCTION WITH SUCH PROSPECTUS.
At a meeting held on March 18, 1996, the Trustees eliminated the Trust's Rule
12b-1 Distribution Plan for Class A, Class B and Class C shares, and approved
Class A, Class B and Class C shareholder servicing plans that provide for
shareholder servicing fees payable to the Distributor of up to .25% of average
net assets, as well as Class B and Class C administrative services plans that
provide for administrative service fees payable to the Distributor of up to .05%
and .25%, respectively. These new arrangements are to be effective as of May 1,
1996. Under these new plans, the Distributor may provide a broad range of
shareholder and administrative services itself, or may enter into arrangements
under which third parties provide such services and are compensated by the
Distributor. As a result of this change, effective May 1, 1996, the following
"Annual Operating Expenses" table replaces the table on page 2 of the
Prospectus:
ANNUAL OPERATING EXPENSES (as a percentage of average net assets)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
CLASS A CLASS B CLASS C
------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Management/Advisory Fees (after fee waiver )(1) .29% .29% .29%
12b-1 Fees None None None
Total Other Expenses .04% .34% .54%
Shareholder Servicing Expenses (after fee waiver) .00%(2) .25% .25%
- ---------------------------------------------------------------------------------------------------------------------------------
Total Operating Expenses (after fee waivers)(3) .33% .63% .83%
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The Manager has waived, on a voluntary basis, a portion of its fee, and
the Management/Advisory fees shown reflect this voluntary waiver. The
Manager reserves the right to terminate its waiver at any time in its
sole discretion. Absent such fee waiver, Management/Advisory fees for
the Portfolio would be .40%. The Portfolios' Management/Advisory fees
have been restated to reflect reductions in fee waivers.
(2) The Distributor has waived, on a voluntary basis, all or a portion of
its shareholder servicing fee, and the Shareholder Servicing Fees shown
reflect this waiver. The Distributor reserves the right to terminate
its waiver at any time in its sole discretion. Absent such waiver,
Shareholder Servicing Fees would be .25% for the Class A shares of the
Portfolio.
(3) Absent these fee waivers, Total Operating Expenses of the Portfolio
would be .69%, .74% and .94% for Class A, Class B, and Class C,
respectively. Additional information may be found under "The Adviser"
and "The Manager and Shareholder Servicing Agent."
EXAMPLE
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
An investor in Class A, Class B and Class C shares of the Portfolio would pay
the following expenses on a $1,000 investment assuming (1) a 5% annual return
and (2) redemption at the end of each time period:
1 YR. 3 YRS. 5 YRS. 10 YRS.
----- ------ ------ -------
<S> <C> <C> <C> <C>
Class A $3 $11 $19 $ 42
Class B $6 $20 $35 $ 79
Class C $8 $26 $46 $103
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
THE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE
EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.
The purpose of the expense table and example is to assist the investor in
understanding the various costs and expenses that may be directly or indirectly
borne by investors in the Portfolio's Class A, Class B and Class C shares. The
information set forth in the foregoing table and example relates to the Class A,
Class B and Class C shares of the Portfolio. A person that purchases shares
through an account with a financial institution may be charged separate fees by
that institution. Additional information may be found under "The Manager and
Shareholder Servicing Agent," "Distribution" and "The Adviser".
Long-term Class B and Class C shareholders may eventually pay more than the
economic equivalent of the maximum front-end sales charges otherwise permitted
by the Rules of Fair Practice of the National Association of Securities Dealers,
Inc. ("NASD").
------------------
<PAGE> 12
In connection with the changes to the Portfolio's Distribution Plans and the
approval of shareholder servicing plans and administrative service plans, the
"Distribution" section on pages 19 and 20 of the Prospectus is replaced with the
following:
DISTRIBUTION AND SHAREHOLDER SERVICES
SEI Financial Services Company (the "Distributor"), a wholly owned
subsidiary of SEI, serves as the Portfolio's distributor pursuant to a
distribution agreement (the "Distribution Agreement") with the Trust.
The Portfolio has adopted plans under which firms, including the
Distributor, that provide shareholder and administrative services may
receive compensation therefor. The Class A, B and C plans differ in a
number of ways, including the amounts that may be paid. Under each
plan, the Distributor may provide those services itself or may enter
into arrangements under which third parties provide such services and
are compensated by the Distributor. Under such arrangements the
Distributor may retain as a profit any difference between the fee it
receives and the amount it pays such third party. In addition, the
Portfolio may enter into such arrangements directly.
Under the Class A plan, the Portfolio will pay the Distributor a fee at
an annual rate of up to .25% of the average daily net assets of the
Portfolio attributable to Class A shares, in return for provision of a
broad range of shareholder and administrative services. Under the Class
B and Class C shareholder service plans, the Portfolio will pay
shareholder service fees to the Distributor at an annual rate of up to
.25% of average daily net assets in return for the Distributor's (or
its agent's) efforts in maintaining client accounts; arranging for bank
wires; responding to client inquiries concerning services provided or
investment; and assisting clients in changing dividend options, account
designations and addresses. In addition, under their administrative
services plans, Class B and Class C shares will pay administrative
services fees at specified percentages of the average daily net assets
of the shares of the Class (up to .05% in the case of the Class B
shares and up to .25% in the case of the Class C shares).
Administrative services include sub-accounting; providing information
on share positions to clients; forwarding shareholder communications to
clients; processing purchase, exchange and redemption orders; and
processing divided payments.
It is possible that an institution may offer different classes of
shares to its customers and differing services to the Classes of the
Portfolio and thus receive compensation with respect to different
classes. Theses financial institutions may also charge separate fees to
their customers. Certain financial institutions offering shares to
their customers may be required to register as dealers pursuant to
state laws.
The Distributor may, from time to time in its sole discretion,
institute one or more promotional incentive programs, which will be
paid by the Distributor from its own resources. Under any such program,
the Distributor will provide promotional incentives, in the form of
cash or other compensation, including merchandise, airline vouchers,
trips and vacation packages, to all dealers selling shares of the
Portfolios. Such promotional incentives will be offered uniformly to
all dealers and predicated upon the amount of shares of the Portfolio
sold by the dealer.
---------------------
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
<PAGE> 13
SEI TAX EXEMPT TRUST
PENNSYLVANIA MUNICIPAL PORTFOLIO
PENNSYLVANIA TAX FREE PORTFOLIO
SUPPLEMENT DATED MAY 1, 1996 TO
THE CLASS A, B & C PROSPECTUS
DATED DECEMBER 31, 1995
THIS SUPPLEMENT TO THE PROSPECTUS SUPERSEDES AND REPLACES ANY EXISTING
SUPPLEMENTS TO THE PROSPECTUS. THIS SUPPLEMENT PROVIDES NEW AND ADDITIONAL
INFORMATION BEYOND THAT CONTAINED IN THE PROSPECTUS, AND SHOULD BE READ IN
CONJUNCTION WITH SUCH PROSPECTUS.
At a meeting held on March 18, 1996, the Trustees eliminated the Trust's Rule
12b-1 Distribution Plan for Class A, Class B and Class C shares, and approved
Class A, Class B and Class C shareholder servicing plans that provide for
shareholder servicing fees payable to the Distributor of up to .25% of average
net assets, as well as Class B and Class C administrative services plans that
provide for administrative service fees payable to the Distributor of up to .05%
and .25%, respectively. These new arrangements are to be effective as of May 1,
1996. Under these new plans, the Distributor may provide a broad range of
shareholder and administrative services itself, or may enter into arrangements
under which third parties provide such services and are compensated by the
Distributor. As a result of this change, effective May 1, 1996, the following
"Annual Operating Expenses" table replaces the table on page 2 of the
Prospectus:
ANNUAL OPERATING EXPENSES (as a percentage of average net assets)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA TAX-FREE PORTFOLIO PENNSYLVANIA MUNICIPAL PORTFOLIO
------------------------------- --------------------------------
CLASS A CLASS B CLASS C CLASS A
------- ------- ------- -------
<S> <C> <C> <C> <C>
Management/Advisory Fees (after fee waiver and
expense reimbursements)(1) .31% .31% .31% .44%
12b-1 Fees None None None None
Total Other Expenses .04% .34% .54% .04%
Shareholder Servicing Expenses (after fee waiver) .00%(2) .25%(2) .25% .00%(2)
- ----------------------------------------------------------------------------------------------------------------------
Total Operating Expenses (after fee waivers and .35% .65% .85% .48%
expense reimbursements)(3)
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The Manager has waived, on a voluntary basis, a portion of its fee, and
agreed to reimburse expenses and the Management/Advisory fees shown
reflect this voluntary waiver. The Manager reserves the right to
terminate its waiver and reimbursements at any time in its sole
discretion. Absent such fee waiver and reimbursements,
Management/Advisory fees for the Pennsylvania Tax-Free Portfolio would
be .40%, and for the Pennsylvania Municipal Portfolio would be .55%.
The Portfolios' Management/Advisory fees have been restated to reflect
reductions in fee waivers.
(2) The Distributor has waived, on a voluntary basis, all or a portion of
its shareholder servicing fee, and the Shareholder Servicing Fees shown
reflect this waiver. The Distributor reserves the right to terminate
its waiver at any time in its sole discretion. Absent such waiver,
Shareholder Servicing Fees would be .25% for each Portfolio.
(3) Absent these fee waivers and reimbursements, total operating expenses
for Class A, Class B and Class C shares of the Pennsylvania Tax-Free
Portfolio would be .69%, .73% and .94%, respectively, and for the Class
A shares of the Pennsylvania Municipal Portfolio would be .84%.
Additional information may be found under "The Adviser" and "The
Manager and Shareholder Servicing Agent."
EXAMPLE
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
An investor in the Portfolios would pay the following expenses on a $1,000
investment assuming (1) a 5% annual return and (2) redemption at the end of each
time period:
1 YR. 3 YRS. 5 YRS. 10 YRS.
----- ------ ------ -------
<S> <C> <C> <C> <C>
Pennsylvania Tax Free Portfolio
Class A $4 $11 $20 $ 44
Class B $6 $19 $33 $ 75
Class C $9 $27 $47 $105
Pennsylvania Municipal Portfolio $5 $15 $27 $ 60
- --------------------------------------------------------------------------------------------
</TABLE>
THE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE
EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.
The purpose of the expense table and example is to assist the investor in
understanding the various costs and expenses that may be directly or indirectly
borne by investors in the Portfolios. The information set forth in the foregoing
table and example relates to the Class A shares of the Pennsylvania Municipal
Portfolio and the Class A, B and C shares of the Pennsylvania Tax Free
Portfolio. A person that purchases shares through an account with a financial
institution may be charged separate fees by the institution. Additional
information may be found under "The Manager and Shareholder Servicing Agent,"
"Distribution" and "The Adviser."
Long-term Class B and Class C shareholders may eventually pay more than the
economic equivalent of the maximum front-end sales charges otherwise permitted
by the Rules of Fair Practice of the National Association of Securities Dealers,
Inc. ("NASD").
---------------------
<PAGE> 14
In connection with the changes to the Portfolios' Distribution Plans and the
approval of shareholder servicing plans and administrative service plans, the
"Distribution" section on pages 19 and 20 of the Prospectus is replaced with the
following:
DISTRIBUTION AND SHAREHOLDER SERVICES
SEI Financial Services Company (the "Distributor"), a wholly owned
subsidiary of SEI, serves as each Portfolio's distributor pursuant to a
distribution agreement (the "Distribution Agreement") with the Trust.
The Portfolios have adopted plans under which firms, including the
Distributor, that provide shareholder and administrative services may
receive compensation therefor. The Class A, B and C plans differ in a
number of ways, including the amounts that may be paid. Under each
plan, the Distributor may provide those services itself or may enter
into arrangements under which third parties provide such services and
are compensated by the Distributor. Under such arrangements the
Distributor may retain as a profit any difference between the fee it
receives and the amount it pays such third party. In addition, the
Portfolios may enter into such arrangements directly.
Under the Class A plan, a Portfolio will pay the Distributor a fee at
an annual rate of up to .25% of the average daily net assets of such
Portfolio attributable to Class A shares, in return for provision of a
broad range of shareholder and administrative services. Under the Class
B and Class C shareholder service plans, a Portfolio will pay
shareholder service fees to the Distributor at an annual rate of up to
.25% of average daily net assets in exchange for the Distributor's (or
its agent's) efforts in maintaining client accounts; arranging for bank
wires; responding to client inquiries concerning services provided or
investment; and assisting clients in changing dividend options, account
designations and addresses. In addition, under their administrative
services plans, Class B and Class C shares will pay administrative
services fees at specified percentages of the average daily net assets
of the shares of the Class (up to .05% in the case of the Class B
shares and up to .25% in the case of the Class C shares).
Administrative services include sub-accounting; providing information
on share positions to clients; forwarding shareholder communications to
clients; processing purchase, exchange and redemption orders; and
processing divided payments.
It is possible that an institution may offer different classes of
shares to its customers and differing services to the Classes of each
Portfolio and thus receive compensation with respect to different
classes. Theses financial institutions may also charge separate fees to
their customers. Certain financial institutions offering shares to
their customers may be required to register as dealers pursuant to
state laws.
The Distributor may, from time to time in its sole discretion,
institute one or more promotional incentive programs, which will be
paid by the Distributor from its own resources. Under any such program,
the Distributor will provide promotional incentives, in the form of
cash or other compensation, including merchandise, airline vouchers,
trips and vacation packages, to all dealers selling shares of the
Portfolios. Such promotional incentives will be offered uniformly to
all dealers and predicated upon the amount of shares of the Portfolios
sold by the dealer.
------------------
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
