ANNUAL REPORT AS OF
AUGUST 31, 1996
SEI TAX EXEMPT
TRUST
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Tax Free Portfolio
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California Tax Exempt Portfolio
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Institutional Tax Free Portfolio
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Pennsylvania Tax Free Portfolio
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Intermediate-Term Municipal Portfolio
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Pennsylvania Municipal Portfolio
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Kansas Tax Free Income Portfolio
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[Logo Omitted}
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TABLE OF CONTENTS
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LETTER TO SHAREHOLDERS............................................... 1
MUNICIPAL BOND MARKET OVERVIEW....................................... 2
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FUND PERFORMANCE............................................... 3
REPORT OF INDEPENDENT ACCOUNTANTS.................................... 6
STATEMENT OF NET ASSETS.............................................. 7
STATEMENT OF OPERATIONS.............................................. 52
STATEMENT OF CHANGES IN NET ASSETS................................... 54
FINANCIAL HIGHLIGHTS................................................. 56
NOTES TO FINANCIAL STATEMENTS........................................ 59
NOTICE TO SHAREHOLDERS............................................... 68
<PAGE>
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SEI TAX EXEMPT TRUST -- AUGUST 31, 1996
TO OUR SHAREHOLDERS:
The fiscal year ending August 31, 1996 saw some volatility in the
municipal market. During the last half of 1995, with the Federal Reserve Board
(the "Fed") in an easing mode, portfolio managers sought to extend maturities in
anticipation of falling rates. As 1996 progressed and reports of stronger
economic data were published, market-adjusted higher rates reigned in the
economy.
During the latter part of 1995 and the early months of 1996, the Fed
lowered rates twice in an effort to stimulate the market. Overall, the Federal
Funds Rate decreased from 5.75% to 5.25% during the past twelve months. Despite
this decline in rates, both the money market and fixed income portfolios of the
Trust have continued to provide competitive yields.
In March 1996, the Securities and Exchange Commission issued amendments to
Rule 2a-7. These amendments, which will most likely become effective toward the
end of 1996, focus on tax-exempt money funds and involve issuer diversification
and credit quality requirements. Overall, the new standards have been designed
to conform with the more stringent guidelines already in place for taxable
money market funds. The new guidelines will have a minimal, if any, impact on
the management of SEI's tax exempt money funds.
The general consensus from bond market participants seems to be that there
may be a rise in short-term rates by the Federal Reserve sometime in the near
future. Market interest rates have risen in anticipation of such a move by the
Fed. Likewise, new tax legislation and the upcoming Presidential election will
also effect the municipal market. We are confident that our advisors will
continue to keep a close watch on changes in the market and work to produce
relative strong returns for our portfolios.
Thank you for your continued confidence in the SEI Tax Exempt Trust.
Sincerely,
[Sig David G. Lee Omitted]
David G. Lee
President
1
<PAGE>
MUNICIPAL BOND MARKET OVERVIEW
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SEI TAX EXEMPT TRUST -- AUGUST 31, 1996
For the fiscal year-ended August 31, 1996, the municipal market
outperformed the Treasury market due to fundamental and technical supply and
demand factors. At the onset and throughout most of 1995, the municipal market
lagged the Treasury market on the fear that a flat tax would be instituted which
would ultimately eliminate the special tax treatment of municipal bonds.
However, during the second half of the year it became evident that a flat tax
would not be instituted, and thus municipal bond prices reversed course and
rallied. Also supporting prices in the municipal market was the dearth of supply
amid increased investor demand. Retail demand soared as investors sought safety
of principal in the wake of increased equity market volatility.
Although municipal bonds posted strong performance relative to Treasury
bonds, broad municipal bond prices fell for the period with yields increasing 1
to 30 basis points (bps) across the 1- to 15-year maturity area of the AAA-rated
general obligation curve. However, municipal bonds rallied across the 20- to
30-year maturity sector of the curve where yields fell 7 to 18 bps. The anomaly
on the long end of the curve was the result of faded flat-tax fears. During the
end of 1995 and the beginning of 1996, the municipal market responded favorably
to decreased flat tax fears. In particular, the eventual failure of Steve
Forbes' run for the Presidential Office was a boost to market morale. Forbes is
an outspoken advocate of the flat tax proposal, and as such, his campaign
renewed flat tax fears in the municipal market, thus contributing to
underperformance. Forbes' removal from the presidential race significantly
diminished flat tax fears within the marketplace and municipal bond prices
rebounded substantially. However, the 1- to 15-year maturity area of the
municipal yield curve was unable to sustain this rally through the fiscal
year-end on investor's fears of increased economic growth and inflation.
Inflation fears overpowered the `no flat tax' rally and as a result of these
fears, a potential Federal Reserve tightening was priced into the shorter
municipal market, thus causing yields to rise.
2
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MANAGEMENT'S DISCUSSION AND ANALYSIS OF FUND PERFORMANCE
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SEI TAX EXEMPT TRUST -- AUGUST 31, 1996
INTERMEDIATE-TERM
MUNICIPAL PORTFOLIO
OBJECTIVES. The Intermediate-Term Municipal Portfolio seeks to preserve
capital and provide a high level of income exempt from Federal income tax
through a diversified portfolio of high-quality municipal securities.
STRATEGY. The Intermediate-Term Municipal Portfolio invests primarily in
municipal notes and bonds rated A or better. The Portfolio will maintain an
average weighted maturity of three to ten years, although typically the average
maturity will tend towards the shorter end of this maturity range. The Portfolio
invests in securities which are viewed as attractively priced due to the
inefficiencies of the municipal market.
ANALYSIS. For the twelve months ended August 31, 1996, the SEI
Intermediate-Term Municipal Portfolio, Class A (the "Portfolio") posted a 3.76%
return compared to a total return of 3.80% for the Portfolio's benchmark (the
"Benchmark"), the Lehman 5-Year G.O. Municipal Index and 4.06% for the Lehman
Brothers 3- to 10-Year Bond Blend Municipal Index. The Portfolio's longer
duration posture during the 1996 year-to-date rising interest rate environment
largely contributed to underperformance. At the close of the fiscal year-end,
Portfolio duration stood at 5.93 years compared to 5.37 years for the Lehman
Brothers 3 to 10 Year Bond.
Effective January 2, 1996, Standish, Ayer & Wood, Inc. replaced Weiss,
Peck & Greer L.L.C. and, subsequently became sub-advisor to the Portfolio.
During the second half of the fiscal period, increased transaction costs as a
result of portfolio realignment and restructuring under the new sub-advisor also
served to dampen overall performance. In an effort to increase return and yield,
the Portfolio sought to identify and purchase those securities which were deemed
to be undervalued such as state-specific and housing securities. In particular,
an overweighting to housing bonds mitigated Portfolio underperformance and added
to yield as these issues tend to outperform in falling markets.
Portfolio strategy will be to continue to add value through a disciplined,
benchmark driven process that primarily focuses upon security selection,
complimented by sector selection and yield curve exposure.
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INTERMEDIATE-TERM MUNICIPAL
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AVERAGE ANNUAL TOTAL RETURN1
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One Annualized Annualized Cummulative
Year 5-Year Inception Inception
| Return | Return | to Date | to Date
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Intermediate Term Municipal | 3.76% | 5.78% | 6.14% | 51.62%
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COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN THE SEI TAX EXEMPT
TRUST INTERMEDIATE-TERM MUNICIPAL BOND PORTFOLIO, CLASS A, VERSUS THE LEHMAN
BROTHERS 5 YEAR G.O. INDEX.
[Graphic Omitted]
Plot Points
Initial Investment Date 9/30/89 Aug-90 Aug-91 Aug-92 Aug-93 Aug-94
SEI Tax-Exempt Trust
Intermediate-Term
Municipal Bond Fund $10,000 $10,522 $11,450 $12,427 $13,498 $13,586
Lehman Brothers
5 Year G.O. Index $10,000 $10,669 $11,745 $12,910 $14,052 $14,282
Aug-95 Aug-96
SEI Tax-Exempt Trust
Intermediate-Term
Municipal Bond Fund $14,609 $15,158
Lehman Brothers
5 Year G.O. Index $15,440 $16,027
1 FOR THE PERIODS ENDED AUGUST 31, 1996. PAST PERFORMANCE IS NO INDICATION OF
FUTURE PERFORMANCE.
3
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MANAGEMENT'S DISCUSSION AND ANALYSIS OF FUND PERFORMANCE
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SEI TAX EXEMPT TRUST -- AUGUST 31, 1996
PENNSYLVANIA MUNICIPAL
PORTFOLIO
OBJECTIVES. The Pennsylvania Municipal Portfolio seeks to preserve capital
and to provide a high level of current income exempt from both Federal and
Pennsylvania state income taxes.
STRATEGY. While the Portfolio is permitted to purchase investment-grade
municipal bonds, a large percentage of the assets are currently in AAA-rated,
insured Pennsylvania municipal securities. As principal stability is a primary
objective of the Portfolio, the weighted average maturity of the Portfolio is
typically in a narrow band of five to seven years. While the Adviser does not
attempt to forecast interest rates, the maturity of the Portfolio is extended
when interest rates are stable or in decline, and is shortened during periods of
rising interest rates.
ANALYSIS. For the fiscal year ended August 31, 1996, the SEI Pennsylvania
Municipal Portfolio (the "Portfolio") posted a total return of 3.96% versus a
total return of 3.80% for the Portfolio's benchmark (the "Benchmark"), the
Lehman 5-Year G.O. Municipal Bond Index and 3.77% for the Lehman M.F.
Pennsylvania Intermediate Municipal Index.
Portfolio outperformance, relative to the Lehman 5-Year G.O. Municipal
Bond Index, was primarily attributable to the Portfolio's overweight to longer
maturity municipal bonds. Longer maturity municipal bonds performed strongly
over the last twelve months as a result of both fundamental and technical
factors. As interest rates continued to rise through the 1996 year-to-date
period, the Portfolio's shorter relative duration posture versus the Lehman M.F.
Pennsylvania Intermediate Municipal Index positively contributed to performance.
As of August 31, 1996, Portfolio duration stood at 4.92 years compared to 5.54
years for the Lehman M.F. Pennsylvania Intermediate Municipal Index. At the
close of the fiscal period, the Portfolio maintained a shorter relative duration
posture due to the overall expensive price levels within the municipal market.
The standard measure for expensive versus cheap municipal bond prices is the
ratio of municipal yields to comparable Treasury yields. Historically,
municipals have been considered rich or overvalued when yielding less than 82%
of comparable Treasuries. As of August 31, 1996, 20-year AAA-rated general
obligation bonds traded at approximately 80.46% of comparable Treasuries.
Also fueling Portfolio performance was its exposure to higher yielding and
high quality defensive securities. In particular, the Portfolio's exposure to
pre-refunded, escrowed-to-maturity sinking fund issues supplied additional yield
which in turn bolstered performance. Moreover, exposure to defensive housing
securities supported Portfolio return as these bonds tend to outperform in a
rising interest rate environment.
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PENNSYLVANIA MUNICIPAL
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AVERAGE ANNUAL TOTAL RETURN1
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One Annualized Annualized Cummulative
Year 5 Year Inception Inception
| Return | Return | to Date | to Date
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Pennsylvania Municipal | 3.96% | 5.90% | 6.32% | 54.00%
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COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN THE SEI TAX EXEMPT
TRUST PENNSYLVANIA MUNICIPAL BOND PORTFOLIO, VERSUS THE LEHMAN BROTHERS 5 YEAR
G.O. INDEX.
[Graphic Omitted]
Plot Points
Initial Investment Date 8/31/96 Aug-90 Aug-91 Aug-92 Aug-93 Aug-94
SEI Tax-Exempt Trust
pennsylvania
Municipal Bond Fund $10,000 $10,527 $11,559 $12,584 $13,706 $13,862
Lehman Brothers
5 Year G.O. Index $10,000 $10,674 $11,751 $12,917 $14,059 $14,289
Aug-95 Aug-96
SEI Tax-Exempt Trust
Pennsylvania
Municipal Bond Fund $14,806 $15,392
Lehman Brothers
5 Year G.O. Index $15,448 $16,035
1 FOR THE PERIODS ENDED AUGUST 31, 1996. PAST PERFORMANCE IS NO INDICATION OF
FUTURE PERFORMANCE.
4
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KANSAS TAX FREE
INCOME PORTFOLIO
OBJECTIVES. The Kansas Tax-Free Income Portfolio seeks to preserve capital
while producing current income for the investor that is exempt from both federal
and Kansas state income taxes
STRATEGY. The Kansas Tax Free Income Portfolio invests primarily in
municipal obligations exempt from federal and Kansas state income taxes.
Additionally at least 80% of the Portfolio's assets will be invested in assets
the income of which is not subject to alternative minimum tax. The Portfolio
will maintain an average weighted maturity of seven years to twelve years.
ANALYSIS. The Kansas Tax Free Income Portfolio's (the "Portfolio")
returned 4.23% for the fiscal year ended August 31, 1996 compared to a total
return of 4.10% and 3.80% for the Portfolio's benchmark (the "Benchmark"), the
Lehman 7-Year G.O. Index and the Lehman 5-Year G.O. Municipal Bond Index,
respectively.
The largest contributor to performance was the Portfolio's relative
defensive duration posture which was implemented during the first few months of
1996. Throughout the 1996 year-to-date period, the fixed income market
experienced increased volatility due to evidence that there was growth in the
economy and inflation was on the rise. Therefore, the Portfolio shortened both
its average weighted maturity and duration in a defensive move against increased
volatility inherent in a rising interest rate environment. However, at the close
of the fiscal period, duration was lengthened slightly in order to more closely
match Benchmark duration. On August 31, 1996, the Portfolio's duration stood at
5.34 years versus 5.64 years for the Lehman 7-Year G.O. Index.
It is expected that interest rates will remain neutral and given this
outlook, the advisor will look to further extend Portfolio duration in an effort
to match benchmark duration.
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KANSAS TAX FREE INCOME
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AVERAGE ANNUAL TOTAL RETURN1
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One Annualized Annualized Cummulative
Year 5 Year Inception Inception
| Return | Return | to Date | to Date
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Kansas Tax Free Income | 4.23% | 6.55% | 6.63% | 44.39%
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COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN THE SEI TAX EXEMPT
TRUST KANSAS INCOME PORTFOLIO, VERSUS THE LEHMAN BROTHERS 7 YEAR G.O. INDEX.
[Graphic Omitted]
Plot Points
Initial Investment Date 12/31/90 Aug-91 Aug-92 Aug-93 Aug-94 Aug-95
SEI Tax-Exempt Trust
Kansas Income Fund $10,000 $10,546 $11,574 $12,776 $12,958 $13,895
Lehman Brothers
7 Year G.O. Index $10,000 $10,636 $11,720 $12,987 $13,134 $14,308
Aug-96
SEI Tax-Exempt Trust
Kansas Income Fund $14,482
Lehman Brothers
7 Year G.O. Index $14,895
1 FOR THE PERIODS ENDED AUGUST 31, 1996. PAST PERFORMANCE IS NO INDICATION OF
FUTURE PERFORMANCE.
5
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REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
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TO THE SHAREHOLDERS AND BOARD OF TRUSTEES OF
SEI TAX EXEMPT TRUST:
We have audited the accompanying statements of net assets of the Tax Free,
California Tax Exempt, Institutional Tax Free, Pennsylvania Tax Free,
Intermediate-Term Municipal, Pennsylvania Municipal and Kansas Tax Free Income
Portfolios of SEI Tax Exempt Trust as of August 31, 1996 and the related
statements of operations, statements of changes in net assets, and financial
highlights for the periods presented. We have also audited the statement of
operations of the Bainbridge Tax Exempt Portfolio of SEI Tax Exempt Trust for
the period ended December 15, 1995, and the related statement of changes in net
assets and financial highlights for the periods presented. These financial
statements and financial highlights are the responsibility of the Trust's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
August 31, 1996, by correspondence with the custodians. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of the
Tax Free, California Tax Exempt, Institutional Tax Free, Pennsylvania Tax Free,
Intermediate-Term Municipal, Pennsylvania Municipal and Kansas Tax Free Income
Portfolios of SEI Tax Exempt Trust as of August 31, 1996, the results of their
operations, changes in their net assets, and financial highlights for the
periods presented, and the results of operations of the Bainbridge Tax Exempt
Portfolio of SEI Tax Exempt Trust for the period ended December 15, 1995, and
the changes in its net assets and financial highlights for the periods
presented, in conformity with generally accepted accounting principles.
ARTHUR ANDERSEN LLP
Philadelphia, PA
October 11, 1996
6
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STATEMENT OF NET ASSETS
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SEI TAX EXEMPT TRUST -- AUGUST 31, 1996
TAX FREE PORTFOLIO
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FACE
AMOUNT (000) VALUE (000)
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MUNICIPAL BONDS -- 104.1%
ALABAMA -- 0.6%
Tuscaloosa Industrial
Development Board,
Industrial Development
Revenue, Field Container
Corporation, VRDN,
RB (A) (B) (C)
3.550%, 09/07/96 $ 1,950 $ 1,950
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ARKANSAS -- 0.3%
Little Rock Unified
School District, TRAN
3.850%, 12/30/96 1,000 1,000
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ARIZONA -- 1.5%
Chandler Industrial
Development Authority,
Parsons Municipal Series
Project, VRDN, RB (A) (B) (C)
3.700%, 09/15/96 3,900 3,900
Tuscon Industrial Development
Authority, Tuscon City Center
Parking, VRDN, RB (A) (B) (C)
3.625%, 09/07/96 1,250 1,250
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5,150
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CALIFORNIA -- 2.5%
California School Cash
Reserve Program Authority,
Pool, Ser A, RAN
4.750%, 07/02/97 5,000 5,036
California State, Ser
96-97, RAN
4.500%, 06/30/97 2,500 2,511
Western Placer, USD, TRAN
4.700%, 09/05/96 1,000 1,000
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8,547
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COLORADO -- 3.6%
Colorado Housing Finance
Authority, Multi-Family
Housing, Woodstream Project,
VRDN, RB (A) (B) (C)
3.600%, 09/07/96 2,500 2,500
Colorado Housing Finance
Authority, Multi-Family
Housing, Cambray Park,
VRDN, RB (A) (B) (C)
3.600%, 09/07/96 2,900 2,900
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FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Colorado Housing Finance
Authority, Multi-Family
Housing, Grants Plaza
Project 91-A, VRDN,
RB (A) (B) (C)
3.525%, 09/07/96 $ 1,500 $ 1,500
Denver City & County,
Multi-Family Housing,
Ogden Residence Project, Ser 85,
VRDN, RB (A) (B) (C)
3.950%, 09/01/96 2,965 2,965
Fraser Industrial Development
Revenue, Safeway Project,
VRDN, RB (A) (B) (C)
3.650%, 12/01/96 1,785 1,785
Jefferson County Industrial
Development Revenue,
Southwest Medpro Project,
VRDN, RB (A) (B) (C)
3.600%, 09/07/96 550 550
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12,200
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DISTRICT OF COLUMBIA -- 1.9%
District of Columbia, Washington,
Ser B-1, VRDN, RB (A) (B) (C)
3.950%, 09/07/96 600 600
District of Columbia, Washington,
Ser B-2, VRDN, RB (A) (B) (C)
3.950%, 09/07/96 5,300 5,300
District of Columbia, Washington,
Ser B-3, VRDN, RB (A) (B) (C)
3.950%, 09/07/96 500 500
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6,400
--------
FLORIDA -- 3.9%
Boca Raton Industrial
Development Authority,
Parking Garage, Ser 84-A,
VRDN, RB (A) (B) (C)
3.875%, 09/07/96 3,125 3,125
Florida Housing Finance Agency,
VRDN, RB (A) (B) (C)
3.850%, 09/07/96 2,300 2,300
Florida Housing Finance Authority,
Sarasota Beneva Place, Ser C,
VRDN, RB (A) (B) (C)
3.525%, 09/07/96 4,955 4,955
Halifax Hospital Medical Center,
Ser 96, TAN (C)
3.800%, 04/15/97 2,000 2,001
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
7
<PAGE>
STATEMENT OF NET ASSETS
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SEI TAX EXEMPT TRUST -- AUGUST 31, 1996
TAX FREE PORTFOLIO--CONTINUED
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FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Pasco County Housing Facility
Authority, Multi-Family
Housing, Carlton Arms/
Magnolia Valley, VRDN,
RB (A) (B) (C)
3.625%, 09/07/96 $ 1,000 $ 1,000
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13,381
--------
GEORGIA -- 3.6%
Dekalb County, Development
Authority Revenue, Dart
Container Project, VRDN,
RB (A) (B) (C)
3.850%, 09/07/96 1,000 1,000
DeKalb County, Multi-Family
Housing, Wood Terrace
Apartments Project, Ser 95,
VRDN, RB (A) (B)
3.450%, 09/07/96 400 400
Fulton County Development
Authority, Robert W. Woodruff
Arts Center,
VRDN, RB (A) (B) (C)
3.500%, 09/07/96 3,500 3,500
Gordon Industrial Development
Authority, Federal Paper Board
Incorporated Project, Ser 92,
VRDN, RB (A) (B) (C)
3.500%, 09/07/96 2,000 2,000
Newton, Industrial Development
Revenue, H.B. Fuller Project,
Ser 84, VRDN, RB (A) (B) (C)
3.650%, 09/07/96 3,100 3,100
Richmond County, Industrial
Development Authority,
Federal Paper Board Company
Project, Ser 92,
VRDN, RB (A) (B) (C)
3.500%, 09/07/96 1,000 1,000
Rome City, Ser 96, TAN, G.O.
3.270%, 12/31/96 1,150 1,150
--------
12,150
--------
ILLINOIS -- 7.0%
Chicago O'Hare International
Airport, American Airlines,
Ser A, VRDN, RB (A)
(B) (C)
3.750%, 09/01/96 600 600
Chicago Park District, Ser A, TAW
5.000%, 10/30/96 1,000 1,002
Chicago, Multi-Family Housing
Authority, Waveland Project B,
VRDN, RB (A) (B)(C)
3.450%, 09/07/96 6,100 6,100
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
East Peoria, Multi-Family
Housing Revenue, Radnor
East Project, VRDN, RB (A) (B) (C)
3.750%, 09/07/96 $ 1,720 $ 1,720
Hoffman Estates, Park District, G.O.
4.000%, 12/01/96 1,815 1,815
Illinois State Development
Financial Authority, Dart
Container Project, VRDN,
RB (A) (B) (C)
3.548%, 09/07/96 1,300 1,300
Illinois State Financial
Development Authority,
Diamond Star Motors Project,
VRDN, RB (A) (B) (C)
3.850%, 09/01/96 1,900 1,900
Peoria Economic Development,
North Point Shopping Center
Project, VRDN, RB (A) (B) (C)
3.700%, 12/01/96 2,395 2,395
Skokie, Industrial Development
Authority, Fashion Square
Project, VRDN, RB (A) (B) (C)
3.875%, 09/07/96 2,800 2,800
Springfield, Community
Improvement Revenue,
Kent Family Project,
VRDN, RB (A) (B) (C)
3.550%, 09/07/96 1,000 1,000
St. Clair County, Industrial
Building Authority,
Winchester Apartments Project,
Ser 94, VRDN, RB (A) (B)
3.900%, 09/07/96 3,000 3,000
--------
23,632
--------
INDIANA -- 8.6%
Bartholomew Consolidated
Schools, TAW
4.000%, 12/31/96 1,738 1,739
East Chicago, School City TAW
4.000%, 12/31/96 3,000 3,002
Gary Environmental Improvement,
US Steel, VRDN, RB (A) (B) (C)
3.700%, 01/15/97 9,800 9,800
Hamilton Southeastern
Independent Schools,
Consolidated School
Building, BAN
3.900%, 12/31/96 750 751
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
8
<PAGE>
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Indiana Development Finance
Authority, Industrial
Development Revenue,
Goodwill Industries Center
Project, VRDN, RB (A) (B) (C)
3.550%, 09/07/96 $ 1,400 $ 1,400
Indiana Health Facilities Finance
Authority, Lutherwood Project,
VRDN, RB (A) (B) (C)
3.600%, 09/07/96 1,000 1,000
Lake County, Calumet Township,
Ser 95, G.O.
5.000%, 01/15/97 1,750 1,759
Michigan City, TAW
3.900%, 12/31/96 1,100 1,100
Portage Township Schools, TAW
4.150%, 12/31/96 1,350 1,352
Portage, Economic Development
Revenue, VRDN, RB (A) (B) (C)
3.650%, 09/07/96 780 780
South Bend Community School
District, G.O.
3.850%, 01/15/97 570 570
Tri-Creek School District, TAW
4.000%, 12/31/96 1,100 1,101
Valpariso Community School
District, TAW
4.100%, 12/31/96 3,500 3,504
Whitko Community School
District, TAW
4.000%, 12/31/96 1,490 1,491
--------
29,349
--------
KANSAS -- 0.2%
Salina, Central Mall Dillard,
Ser 84, VRDN, RB (A) (B) (C)
3.750%, 09/07/96 495 495
Shawnee County, Ser 96-1, BAN
4.800%, 03/01/97 280 280
--------
775
--------
LOUISIANA -- 0.6%
Ascension Parish, Pollution
Control Revenue, BASF
Wyandotte Corporation,
VRDN, RB, (A) (B) (C)
3.850%, 09/01/96 1,600 1,600
Louisiana State Public Facilities
Authority, Willis Knighton
Medical Project, VRDN, RB
AMBAC Insured (A) (B)
3.400%, 09/07/96 600 600
--------
2,200
--------
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
MAINE -- 0.6% Maine State, TAN, G.O.
4.500%, 06/27/97 $ 2,000 $ 2,010
--------
MARYLAND -- 5.2%
Baltimore County, G.O., TECP
3.500%, 10/02/96 (C) 2,000 2,000
Howard County Multi-Family
Housing, Sherwood Crossing
Limited, Ser A, VRDN, RB,
G.O. (A) (B)
3.750%, 06/01/97 1,500 1,500
Maryland State Health & Higher
Education Facilities Authority,
Kennedy Krieger, VRDN,
RB (A) (B) (C)
3.500%, 09/07/96 400 400
Maryland State Health & Higher
Education Facilities Authority,
Pooled Loan Program, Ser B,
VRDN, RB (A) (B) (C)
3.450%, 09/07/96 8,100 8,100
Montgomery County, Multi-Family
Housing Opportunities,
Community Housing,
VRDN, RB (A) (B) (C)
3.650%, 09/07/96 5,000 5,000
Prince Georges County Housing
Authority, VRDN, RB (A) (B) (C)
3.525%, 09/07/96 625 625
--------
17,625
--------
MICHIGAN -- 1.0%
Sterling Heights Economic
Development, Sterling Shopping
Center, VRDN, RB (A) (B) (C)
3.500%, 09/07/96 500 500
University of Michigan, University
Revenue, Ser A, VRDN,
RB (A) (B)
3.850%, 09/01/96 800 800
Wayne County, Sewer
System, TECP (B) (C)
3.650%, 09/27/96 2,000 2,000
--------
3,300
--------
MINNESOTA -- 3.2%
Bloomington Commercial
Development Revenue, Park
Project, VRDN, RB (A) (B) (C)
3.770%, 09/07/96 3,150 3,150
9
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
SEI TAX EXEMPT TRUST -- AUGUST 31, 1996
TAX FREE PORTFOLIO--CONTINUED
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Golden Valley Industrial
Development Revenue, Graco
Project, VRDN, RB (A) (B) (C)
3.750%, 09/07/96 $ 1,620 $ 1,620
Minneapolis, Highway
Improvement, VRDN,
G.O. (A) (B) (C)
3.500%, 09/07/96 3,500 3,500
Minnesota Housing Finance
Agency, Single Family Mortgage,
RB (A) (B) (C)
3.500%, 12/12/96 1,575 1,575
Minnesota School Districts,
Tax & Aid Anticipation
Borrowing Program 1996, Ser B, COP
4.500%, 09/09/97 900 906
--------
10,751
--------
MISSOURI -- 1.8%
Kansas City Industrial
Development Authority,
Baptist Health System, Ser A,
VRDN, RB (A) (B) (C)
3.600%, 09/07/96 5,975 5,975
--------
NEVADA -- 2.8%
Henderson, Public Improvement
Trust, Multi-Family Housing,
Pueblo Verde I & II-B Apartment
Project, #1071, VRDN,
RB (A) (B) (C)
3.500%, 09/07/96 9,500 9,500
--------
NEW HAMPSHIRE -- 0.3%
New Hampshire Higher Education
& Health Facility Authority,
Dartmouth College, RB (A) (B)
3.800%, 06/01/97 1,080 1,080
--------
NEW JERSEY -- 0.9%
New Jersey Economic
Development Authority,
Cincinnati Gear Company,
RB (A) (B) (C)
3.600%, 10/01/96 1,405 1,405
New Jersey State, G.O.,
Pre-Refunded @ 101 (D)
7.200%, 04/15/97 1,500 1,547
--------
2,952
--------
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
NEW MEXICO -- 0.6%
Albuquerque Industrial
Development Revenue,
Plastech Project, Ser 94-B,
VRDN, RB (A) (B) (C)
3.600%, 09/07/96 $ 2,155 $ 2,155
--------
NEW YORK -- 2.3%
Nassau County, Ser A, RAN
4.000%, 03/05/97 2,500 2,508
North Hempstead, BAN
4.250%, 05/29/97 2,000 2,006
North Hempstead, Ser B, BAN
3.850%, 02/27/97 1,000 1,002
Ontario County Industrial
Development Authority,
Seneca Foods, RB (A) (B) (C)
3.850%, 09/07/96 2,185 2,185
--------
7,701
--------
NORTH CAROLINA -- 0.9%
Beafort Industrial Facility,
Pollution Control Revenue,
Texas Gulf Corporation,
VRDN, RB (A) (B) (C)
3.600%, 09/07/96 3,000 3,000
--------
NORTH DAKOTA -- 0.6%
Fargo, Commercial Development
Revenue, Cass Oil Project,
VRDN, RB (A) (B) (C)
3.600%, 09/07/96 2,200 2,200
--------
OHIO -- 3.5%
Brecksville-Broadview Heights
School District, Ohio School
Improvement, Ser 96, BAN
3.900%, 01/17/97 1,000 1,001
Cincinnati & Hamilton County
Port Authority, CEI Realty
Project, VRDN, G.O. (A) (B) (C)
3.600%, 11/01/96 105 105
Cleveland Waterworks Revenue,
First Mortgage Improvement,
Ser E, VRDN, RB,
MBIA Insured,
Pre-Refunded @ 101 (A) (D)
7.625%, 01/01/97 485 501
Highland County Industrial
Development Revenue,
Lancaster Colony Corporation,
VRDN, RB (A) (C)
3.150%, 09/07/96 1,000 1,000
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
10
<PAGE>
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Montgomery County Economic
Development Revenue, Wayne
Town Center, VRDN, RB (A) (B) (C)
3.550%, 10/01/96 $ 1,045 $ 1,045
North Olmsted, BAN
4.600%, 12/19/96 5,000 5,007
Summit County Industrial
Development Authority,
SGS Tool Project, RB (A) (B) (C)
3.700%, 11/01/96 190 190
Summit County Industrial
Development Revenue,
Arlington Plaza Project,
RB (A) (B) (C)
3.150%, 09/07/96 2,285 2,285
Toledo, Industrial Development
Revenue, Countymark Cooperative
Project, VRDN, RB (A) (B) (C)
3.550%, 09/07/96 900 900
--------
12,034
--------
OKLAHOMA -- 4.4%
Bartlesville Development Authority,
Heritage Villa Nursing Center,
VRDN, RB (A) (B) (C)
3.550%, 09/07/96 3,000 3,000
Oklahoma County Industrial
Development Authority, Baptist
General Convention, Ser 89,
VRDN, RB (A) (B) (C)
3.850%, 09/01/96 2,500 2,500
Oklahoma State Water Reserve Board
State Loan Program Revenue, RB
(A) (B)
3.700%, 03/03/97 3,500 3,500
Tulsa County Industrial
Development Authority,
Healthcare Revenue, Laureate
Psychiatric Project, RB (A) (B)
3.850%, 12/15/96 3,500 3,500
Tulsa Parking Authority,
Refunding First Mortgage
Williams Project 84, Ser A,
VRDN, RB (A) (B) (C)
3.750%, 11/15/96 2,310 2,310
--------
14,810
--------
OREGON -- 0.8%
Port of Portland, Public Grain
Elevator, Columbia Grain,
VRDN, RB (A) (B) (C)
3.750%, 09/07/96 2,565 2,565
--------
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
PENNSYLVANIA -- 19.2%
Allegheny County Education
Building Authority, University
of Pittsburgh Project, Ser 85-B,
VRDN, RB (A) (B) (C)
3.300%, 09/07/96 $ 950 $ 950
Allegheny County Hospital
Development Authority, Ser 88-D,
VRDN, RB (A) (B) (C)
3.400%, 09/07/96 600 600
Berks County Industrial
Development Authority, Rilsaw
Industrial Project, Elf Aquitaine,
VRDN, RB (A) (B) (C)
3.625%, 09/07/96 2,400 2,400
Bucks County Industrial
Development Authority,
Edgcomb Metals Project,
VRDN, RB (A) (B) (C)
3.400%, 09/07/96 3,955 3,955
Clarion County Industrial
Development Authority,
Specialized Development
Meritcare, MTC Project, Ser A,
VRDN, RB (A) (B) (C)
3.550%, 09/07/96 1,000 1,000
Cumberland County Municipal
Authority, United Methodist
Homes Aging Project, VRDN,
RB (A) (B) (C)
3.680%, 09/07/96 2,000 2,000
Delaware County Airport Facility,
Airport Facility Revenue, UPS
Project, Ser 85, VRDN, RB (A) (B)
3.650%, 09/07/96 1,500 1,500
Delaware County Industrial
Development Authority, British
Petroleum Project, Ser 95,
VRDN, RB (A) (B)
3.750%, 09/07/96 600 600
Delaware County Industrial
Development Authority,
Scott Paper Project, Ser A,
VRDN, RB (A) (B)
3.400%, 09/07/96 1,000 1,000
Emmaus General Authority
Revenue, Subseries D-8,
VRDN, RB (A) (B) (C)
3.600%, 09/07/96 7,000 7,000
Langhorne Hospital Revenue
Authority, Franciscan Health
Systems Project, Ser C, VRDN,
RB (A) (B) (C)
3.650%, 09/07/96 1,300 1,300
11
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
SEI TAX EXEMPT TRUST -- AUGUST 31, 1996
TAX FREE PORTFOLIO--CONTINUED
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Montgomery County Higher
Education & Health Facility
Authority, Higher Education
& Loan, Ser 96-A,
VRDN, RB (A) (B) (C)
3.650%, 09/07/96 $ 6,000 $ 6,000
Moon Township Industrial
Development Revenue,
Executive Office Project,
Ser 91-A, VRDN, RB (A) (B) (C)
3.550%, 09/07/96 800 800
North Umberland County,
Industrial Development
Authority, Atlas Development,
VRDN, RB (A) (B) (C)
3.550%, 09/07/96 1,025 1,025
Northeastern Hospital &
Education Authority, Allhealth
Pooled Financing Program,
VRDN, RB (A) (B) (C)
3.600%, 09/07/96 3,500 3,500
Pennsylvania Higher Education
Facility, Thomas Jefferson
University, Ser B, VRDN,
RB (A) (B) (C)
3.700%, 02/26/97 1,000 1,000
Pennsylvania Higher Education
Facility, Thomas Jefferson
University, Ser C, VRDN,
RB (A) (B) (C)
3.700%, 01/01/97 1,500 1,500
Pennsylvania Higher Education
Facility, Allegheny College
Project, VRDN, RB (A) (B) (C)
3.500%, 09/07/96 1,000 1,000
Pennsylvania Higher Education
Facility, Carnegie Mellon
University Project, Ser C,
VRDN, RB (A) (B)
3.750%, 09/01/96 2,500 2,500
Pennsylvania State Turnpike
Commission, Turnpike
Revenue, Ser A, RB,
Pre-Refunded @ 102 (D)
7.875%, 12/01/96 2,000 2,061
Philadelphia Industrial
Development Authority,
Multi-Family Housing,
Harbor View Towers Project,
VRDN, RB (A) (B) (C)
3.800%, 09/07/96 280 280
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Philadelphia Redevelopment
Authority, Pennsylvania
School For The Deaf,
VRDN, RB (A) (B) (C)
3.700%, 09/07/96 $ 2,000 $ 2,000
Philadelphia School
District, TRAN
4.500%, 06/30/97 1,500 1,507
Philadelphia, Ser A, TRAN
4.500%, 06/30/97 3,025 3,038
Sayre Health Care Facilities
Authority, Pennsylvania VHA
Capital Finance Project, Ser A,
VRDN, RB, AMBAC
Insured (A) (B)
3.350%, 09/07/96 700 700
Sayre Health Care Facilities
Authority, Pennsylvania Capital VHA
Finance Project, Ser F, VRDN,
RB, AMBAC Insured (A) (B)
3.350%, 09/07/96 1,000 1,000
Schuylkill County, Industrial
Development Authority,
Gilberton Power Project,
VRDN, RB (A) (B) (C)
3.500%, 09/07/96 1,200 1,200
Schuylkill County, Industrial
Development Authority,
Northeastern Power Project,
VRDN, RB (A) (B) (C)
3.850%, 09/01/96 3,100 3,100
Schuylkill County, Industrial
Development Authority,
Westwood Energy Project,
VRDN, RB (A) (B) (C)
3.950%, 09/01/96 2,900 2,900
Scranton-Lackawana, Health &
Welfare Authority, University
of Scranton Project, VRDN,
RB (A) (B) (C)
3.650%, 11/01/96 575 575
Shenango Valley Osteopathic
Hospital Authority, Shenango
Valley Medical Center, RB,
Pre-Refunded @ 102 (D)
7.875%, 04/01/97 1,755 1,831
Temple University, University
Funding, Ser 96, RAN
4.625%, 05/20/97 500 503
York General Authority,
Pooled Financing Revenue,
VRDN, RB (A) (B) (C)
3.500%, 09/07/96 5,000 5,000
--------
65,325
--------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
12
<PAGE>
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
SOUTH CAROLINA -- 1.5%
Florence County Industrial
Development Revenue,
La-Z-Boy Chair Project,
VRDN, RB (A) (B)
3.671%, 09/07/96 $ 5,000 $ 5,000
--------
TENNESSEE -- 0.9%
Greenville Industrial Development
Revenue, Pet Inc. Project,
VRDN, RB (A) (B) (C)
3.550%, 09/07/96 3,000 3,000
--------
TEXAS -- 3.5%
Brazo River, Hoffman-Laroche
Project, Ser 85, VRDN,
RB (A) (B) (C)
3.525%, 09/07/96 1,000 1,000
Harris County, Multi-Family
Housing, Arbor II Project,
VRDN, RB (A) (B)
3.950%, 10/01/96 1,000 1,000
Harris County, Multi-Family
Housing, Glenhollow Project,
VRDN, RB (A) (B) (C)
3.775%, 09/07/96 2,300 2,300
Houston Health Facilities
Development Authority,
Corporate Revenue, Memorial
Northwest Pavillion,
VRDN, RB (A) (B) (C)
3.700%, 09/07/96 845 845
Texas State, TECP
3.700%, 02/05/97 4,000 4,000
Trinity River, Industrial
Development Authority,
Trinity River Project,
VRDN, RB (A) (B) (C)
3.525%, 09/07/96 2,900 2,900
--------
12,045
--------
UTAH -- 3.7%
Castle Dale Industrial
Development Revenue,
Safeway Project, VRDN,
RB (A) (B) (C)
3.850%, 02/01/97 1,475 1,475
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Nephi Industrial Development
Authority, Safeway Project,
VRDN, RB (A) (B) (C)
3.350%, 09/01/96 $ 1,260 $ 1,260
Salt Lake City, Industrial
Development Authority,
Devereaux Partners Project,
VRDN, RB (A) (B) (C)
3.550%, 09/07/96 5,000 5,000
Salt Lake City, Industrial
Development Authority,
Park View Plaza Project,
VRDN, RB (A) (B) (C)
3.720%, 09/07/96 3,625 3,625
Tremonton City Industrial
Development Revenue,
Safeway Project, VRDN,
RB (A) (B) (C)
3.650%, 12/01/96 1,075 1,075
--------
12,435
--------
VERMONT -- 1.7%
Vermont State Student Assistance
Student Loan Bonds, Ser 85,
VRDN, RB (A) (B) (C)
3.750%, 09/07/96 5,825 5,825
--------
VIRGINIA -- 2.7%
Fairfax County, Multi-Family
Housing Revenue, Chase
Commons Project, VRDN,
RB (A) (B) (C)
3.625%, 09/07/96 5,000 5,000
Henrico County, Industrial
Development Authority,
Hermitage Project, VRDN,
RB (A) (B) (C)
3.900%, 09/01/96 2,100 2,100
Stafford County, Industrial
Development Authority,
Safeway Project, VRDN,
RB (A) (B) (C)
3.650%, 12/01/96 2,095 2,095
--------
9,195
--------
WASHINGTON -- 0.2%
Washington State, Ser 86-D, G.O.,
Pre-Refunded @ 100 (D)
7.800%, 09/01/96 800 800
13
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
SEI TAX EXEMPT TRUST -- AUGUST 31, 1996
TAX FREE PORTFOLIO--CONCLUDED
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
WEST VIRGINIA -- 2.9%
Keyser Industrial Development
Revenue, Keyser Project,
VRDN, RB (A) (B) (C)
3.550%, 09/07/96 $ 2,050 $ 2,050
West Virginia State Hospital
Finance Authority, Hospital
Revenue, VHA Mid-Atlantic,
Ser B, VRDN, RB,
AMBAC Insured (A) (B)
3.400%, 09/07/96 1,600 1,600
West Virginia State Hospital
Finance Authority, Hospital
Revenue, VHA Mid-Atlantic,
Ser F, VRDN, RB,
AMBAC Insured (A) (B)
3.400%, 09/07/96 5,700 5,700
West Virginia State Hospital
Finance Authority, St. Joseph's
Hospital Project, VRDN,
RB (A) (B) (C)
3.500%, 09/07/96 500 500
--------
9,850
--------
WISCONSIN -- 4.6%
Beaver Dam, USD, TRAN
4.140%, 08/27/97 1,000 1,000
Burlington Area School District,
TRAN
4.220%, 08/29/97 1,000 1,002
Kettle-Moraine School District,
TRAN
4.010%, 08/22/97 1,150 1,150
LaCrosse Industrial Development
Revenue, LaCrosse Properties,
VRDN, RB (A) (B) (C)
3.600%, 09/07/96 5,355 5,355
Mayville Area School
District, BAN
3.500%, 11/01/96 1,640 1,640
Mount Horeb Area School
District, BAN
3.500%, 11/01/96 1,750 1,750
Village of Menomonee, Industrial
Development Revenue,
Maysteel Corporation
VRDN, RB (A) (B) (C)
3.630%, 09/07/96 1,900 1,900
Watertown, USD, TRAN
3.975%, 10/25/96 2,000 2,000
--------
15,797
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Total Municipal Bonds
(Cost $353,664) $353,664
--------
Total Investments -- 104.1%
(Cost $353,664) 353,664
--------
OTHER ASSETS AND LIABILITIES, NET -- (4.1%) (13,752)
--------
NET ASSETS:
Portfolio Shares of Class A (unlimited
authorization -- no par value) based on
340,065,680 outstanding shares of
beneficial interest 339,921
Portfolio Shares of Class D (unlimited
authorization -- no par value) based on
5,951 outstanding shares of
beneficial interest 6
Undistributed Net Investment Income 3
Accumulated Net Realized Loss on
Investments (18)
--------
Total Net Assets--100.0% $339,912
========
Net Asset Value, Offering Price and
Redemption Price Per Share-- Class A $ 1.00
========
Net Asset Value, Offering Price and
Redemption Price Per Share-- Class D $ 1.00
========
AMBAC AMERICAN MUNICIPAL BOND ASSURANCE CORPORATION
BAN BOND ANTICIPATION NOTE
COP CERTIFICATE OF PARTICIPATION
GO GENERAL OBLIGATION
MBIA MUNICIPAL BOND INVESTORS ASSURANCE
RAN REVENUE ANTICIPATION NOTE
RB REVENUE BOND SER SERIES
TAN TAX ANTICIPATION NOTE
TAW TAX ANTICIPATION WARRANT
TECP TAX EXEMPT COMMERCIAL PAPER
TRAN TAX & REVENUE ANTICIPATION NOTE
UPS UNITED PARCEL SERVICE
USD UNIFIED SCHOOL DISTRICT
VRDN VARIABLE RATE DEMAND NOTE
(A) FLOATING RATE SECURITY--THE RATE REFLECTED ON THE STATEMENT OF
NET ASSETS IS THE RATE IN EFFECT ON AUGUST 31, 1996.
(B) PUT AND DEMAND FEATURE--THE MATURITY DATE REPORTED ON THE STATEMENT OF NET
ASSETS IS THE LESSER OF THE MATURITY DATE OR THE PUT DATE.
(C) SECURITIES ARE HELD IN CONJUNCTION WITH A LETTER OF CREDIT FROM A MAJOR
COMMERCIAL BANK OR FINANCIAL INSTITUTION.
(D) PRE-REFUNDED SECURITY--THE MATURITY DATE SHOWN IS THE PRE-REFUNDED DATE.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
14
<PAGE>
CALIFORNIA TAX EXEMPT PORTFOLIO
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS -- 104.2%
CALIFORNIA -- 104.2%
Association of Bay Area
Governments, Lucille Salter
Packard Project, VRDN, RB,
AMBAC Insured (A) (B)
3.300%, 09/07/96 $ 1,100 $ 1,100
Butte County, Office of
Education, TRAN
4.750%, 09/12/96 5,000 5,001
California Education Facility
Authority, Point Nazarene
College, VRDN, RB (A) (B)
3.250%, 09/07/96 4,000 4,000
California Education Facility
Authority, Stanford University,
VRDN, RB (A) (B) (C)
3.200%, 09/07/96 5,055 5,055
California Health Facilities
Finance Authority, Catholic
Health Care, Ser A, VRDN,
RB, MBIA Insured (A) (B)
3.250%, 09/07/96 3,100 3,100
California Health Facilities
Finance Authority, Catholic
Health Care, Ser B, VRDN,
RB, MBIA Insured (A) (B)
3.250%, 09/07/96 2,000 2,000
California Health Facilities
Finance Authority, Catholic
Health Care, Ser C, VRDN,
RB, MBIA Insured (A) (B)
3.250%, 09/07/96 1,600 1,600
California Health Facilities Finance
Authority, Kaiser Permanente,
Ser 93-A, VRDN, RB (A) (B)
3.150%, 09/07/96 4,200 4,200
California Health Facilities
Finance Authority, Kaiser
Permanente, Ser 93-B, VRDN,
RB (A) (B)
3.150%, 09/07/96 2,000 2,000
California Health Facilities Finance
Authority, Memorial Health
Services, VRDN, RB (A) (B)
3.150%, 09/07/96 2,300 2,300
California Health Facilities Finance
Authority, Santa Barbara Cottage,
Ser B, VRDN, RB (A) (B) (C)
3.150%, 09/07/96 2,900 2,900
California Health Facilities Finance
Authority, Scripps Memorial
Hospital, Ser 91-B, VRDN, RB,
MBIA Insured (A) (B)
3.350%, 09/07/96 1,800 1,800
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
California Health Facilities
Finance Authority, Sutter
Health Facility, Ser 96-B, VRDN,
RB, AMBAC Insured (A) (B)
3.650%, 09/01/96 $ 5,600 $ 5,600
California Pollution Control
Finance Authority, Chevron
USA Project, RB (A) (B)
3.700%, 09/07/96 3,200 3,200
California Pollution Control
Finance Authority, Pacific
Gas & Electric, TECP (C)
3.500%, 09/09/96 3,500 3,500
3.550%, 10/23/96 3,500 3,500
California School Cash Reserve
Program Authority, Pool
Ser A, RAN, G.O.
4.750%, 07/02/97 5,000 5,036
California State Economic
Development Financing
Authority, KQED Inc. Project,
VRDN, RB, (A) (B) (C)
3.350%, 09/07/96 4,800 4,800
California State Community
Development Authority,
North California Retirement,
VRDN, RB, (A) (B) (C)
3.750%, 09/07/96 18,000 18,000
California State Community
Development Authority,
St. Joseph Health System,
VRDN, COP, (A) (B)
3.150%, 09/07/96 7,300 7,300
California State Housing Finance
Authority, Multi-Family
Housing Revenue, Oakbrook
Ridge Apartments, VRDN,
RB (A) (B)
3.300%, 09/07/96 4,830 4,830
California State,
Ser 96-97, RAN
4.500%, 06/30/97 3,500 3,515
City of Corona, Multi-Family
Housing, County Hills
Apartment Project, Ser 95-B,
VRDN, RB (A) (B) (C)
3.300%, 09/07/96 6,955 6,955
Compton, COP, Capital Improvement
Project, Pre-Refunded @ 102 (D)
8.000%, 09/01/96 430 439
15
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
SEI TAX EXEMPT TRUST -- AUGUST 31, 1996
CALIFORNIA TAX EXEMPT PORTFOLIO--CONTINUED
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Contra Costa County, Multi-
Family Mortgage Revenue,
VRDN, RB (A) (B)
3.900%, 09/07/96 $ 3,500 $ 3,500
Contra Costa County, Multi-
Family Housing, Delta Square
Project, Ser A, VRDN,
RB (A) (B) (C)
3.400%, 09/07/96 3,400 3,400
Contra Costa, TRAN
4.500%, 06/30/97 5,000 5,028
Corona Redevelopment Agency,
Crown Point Project, Ser 85,
RB (A) (B) (C)
4.000%, 05/01/97 7,740 7,740
Downey Civic Center Project,
COP, MBIA Insured
4.000%, 02/01/97 280 280
Dry Creek, Joint Elementry
School District #1, Special Tax,
G.O., CGIC Insured
4.200%, 09/01/96 365 365
Escondido, Multi-Family Housing
Project, Heritage House Project,
VRDN, RB (A) (B) (C)
3.550%, 09/07/96 7,250 7,250
Fairfield County, TRAN
4.750%, 06/30/97 2,275 2,288
Folsom Cordova, USD, TRAN
4.750%, 10/18/96 6,500 6,506
Folsom Public Finance Authority,
Ser B, RB, Pre-Refunded
@ 103 (D)
7.900%, 10/01/96 1,000 1,033
Fontana, Gaf Tax Exempt Bond
Grantor Trust, Ser GA-7,
VRDN, (A) (B) (C)
3.650%, 09/07/96 6,325 6,325
Irvine Ranch Water District, Ser B,
VRDN, RB (A) (B) (C)
3.700%, 09/01/96 15,900 15,900
Irwindale Industrial Development
Revenue, Toys "R" Us Project,
VRDN, RB (A) (B) (C)
3.625%, 09/07/96 500 500
Kern County, Panama-Buena
Vista Union School District,
VRDN, RB (A) (B) (C)
3.600%, 09/07/96 9,000 9,000
Kern County, Public Facilities
Project, Ser D, VRDN,
RB (A) (B) (C)
3.250%, 09/07/96 2,500 2,500
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Livermore Housing Authority,
Multi-Family Housing,
Refunding-Housing-Richards
Manor A, VRDN, RB (A) (B) (C)
3.550%, 09/07/96 $ 7,370 $ 7,370
Long Beach Housing Authority,
Channel Point Apartments,
Ser A , VRDN, RB, (A) (B) (C)
3.550%, 09/07/96 2,500 2,500
Los Angeles, USD, Ser A, TRAN
4.500%, 06/30/97 5,350 5,380
Los Angeles County, Metropolitan
Transportation Commission,
TECP (C)
3.600%, 12/05/96 4,000 4,000
Los Angeles County, Pension
Obligation, Ser A, VRDN, G.O.,
AMBAC Insured (A) (B)
3.200%, 09/07/96 7,300 7,300
Los Angeles County, Pension
Obligation, Ser B, VRDN, G.O.,
AMBAC Insured (A) (B)
3.200%, 09/07/96 1,000 1,000
Los Angeles County, Pension
Obligation, Ser C, VRDN, G.O.,
AMBAC Insured (A) (B)
3.200%, 09/07/96 5,000 5,000
Los Angeles County, Community
Redevelopment Agency,
Willowbrook Project, VRDN,
RB (A) (B) (C)
3.450%, 09/07/96 1,600 1,600
Los Angeles Department of
Water & Power, Electric Plant
Revenue, RB
9.000%, 01/15/97 500 511
Los Angeles Redevelopment
Agency, Baldwin Hills Public
Park, VRDN, RB (A) (B) (C)
3.450%, 09/07/96 600 600
Los Angeles Multi-Family Housing
Revenue, Ser K, VRDN,
RB (A) (B) (C)
3.350%, 09/07/96 16,500 16,500
Los Angeles Department of
Airports, Airport Revenue,
Ser B, RB, Pre-Refunded
@ 102 (D)
7.300%, 05/01/97 1,500 1,563
Lucia Mar, USD # 87, Facilities
Financing Project, RB,
Pre-Refunded @ 102 (D)
8.300%, 05/01/97 500 525
Modesto, High School & City
School District, VRDN,
COP (A) (B) (C)
3.400%, 09/07/96 2,880 2,880
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
16
<PAGE>
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Monterey County, Finance
Authority Revenue, Reclamation
& Distribution Program,
Ser 95-A, VRDN, RB (A) (B) (C)
3.500%, 09/07/96 $ 5,000 $ 5,000
Monterey Regional Waste
Management Authority,
VRDN, RB (A) (B) (C)
3.500%, 09/07/96 3,500 3,500
Moulton Niguel Water District,
Improvement District # 6, Ser 1,
RB, Pre-Refunded @ 102 (D)
7.875%, 02/01/97 2,500 2,594
New Haven, USD, RB, TRAN
4.500%, 07/01/97 3,625 3,638
Oakland, Revenue Assessment
Bay Area Government, VRDN,
RB (A) (B) (C)
3.500%, 09/07/96 2,275 2,275
Ontario, TRAN
4.500%, 06/30/97 6,495 6,521
Orange County, Apartment
Development Revenue, Radnor/
Aragon Corporation Project-D,
RB, (A) (B) (C)
3.525%, 09/07/96 3,400 3,400
Oxnard Redevelopment Agency,
Channel Islands Business,
VRDN, RB (A) (B) (C)
3.775%, 09/07/96 4,685 4,685
Palm Springs Community
Redevelopment Agency,
Headquarters Hotel-1, VRDN,
COP (A) (B) (C)
3.450%, 09/07/96 2,070 2,070
Palm Springs Community
Redevelopment Agency,
Headquarters Hotel-4, VRDN,
COP (A) (B) (C)
3.450%, 09/07/96 2,800 2,800
Palm Springs Community
Redevelopment Agency,
Headquarters Hotel-6, VRDN,
COP (A) (B) (C)
3.450%, 09/07/96 900 900
Pasadena Historical Rehabilitation,
Dodsworth Building Project,
VRDN, RB (A) (B) (C)
3.250%, 09/07/96 3,900 3,900
Placer County, Loomis Union
Elementary School District,
TRAN
4.450%, 09/04/97 1,170 1,176
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Placer County, Placer County
Office of Education, TRAN
4.450%, 09/04/97 $ 475 $ 477
Placer County, Roseville City
School District, TRAN
4.450%, 09/04/97 1,350 1,357
Placer County, Roseville Joint
Union High School District,
TRAN
4.450%, 09/04/97 850 854
Placer County, TRAN
4.450%, 09/04/97 1,660 1,668
Pomona Public Finance Authority,
Southwest Pomona, VRDN,
RB (A) (B) (C)
3.500%, 09/07/96 2,200 2,200
Redlands Redevelopment Agency,
Parking Lease, VRDN,
RB (A) (B) (C)
3.720%, 09/07/96 4,610 4,610
Redlands Redevelopment
Refunding Project, Ser A,
VRDN, RB (A) (B) (C)
3.720%, 09/07/96 11,120 11,120
Riverside County, Ser B, G.O.,
TRAN (C)
3.200%, 06/30/97 3,000 3,000
Riverside County, Industrial
Development Advanced
Business Forms Project,
VRDN, RB (A) (B) (C)
3.500%, 09/07/96 1,950 1,950
Roseville, Joint Union High School
District, VRDN, COP (A) (B) (C)
3.400%, 09/07/96 3,485 3,485
Sacramento City Financing
Authority, Gas Tax, Ser A, RB,
AMBAC Insured
6.500%, 12/01/96 535 539
Sacramento County, TRAN
4.750%, 10/04/96 1,500 1,501
Sacramento Municipal Utility
District, Electric Revenue, Ser S,
RB, Pre-Refunded @ 102 (D)
6.625%, 02/01/97 1,000 1,034
San Bernadino County, County
Center Refunding Project,
VRDN, RB (A) (B) (C)
3.300%, 09/07/96 6,200 6,200
San Bernadino County, Glen Helen
Blockbuster, Ser E,
VRDN, RB (A) (B) (C)
3.500%, 09/07/96 4,340 4,340
17
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
SEI TAX EXEMPT TRUST -- AUGUST 31, 1996
CALIFORNIA TAX EXEMPT PORTFOLIO--CONCLUDED
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
San Bernadino County,
Industrial Development
Authority, Sandpiper
Investments Project, VRDN,
RB (A) (B) (C)
3.700%, 09/07/96 $ 3,400 $ 3,400
San Bernadino County, Multi-
Family Housing Revenue,
Alta Loma Heritage Project,
Ser A, VRDN, RB (A) (B) (C)
3.400%, 09/07/96 1,264 1,264
San Bernadino County, Multi-
Family Housing Revenue,
Gold West Apartments, Ser A,
VRDN, RB (A) (B) (C)
3.400%, 09/07/96 500 500
San Bernadino Industrial
Development Revenue, Gate
City Beverage District, VRDN,
RB (A) (B) (C)
3.700%, 09/07/96 515 515
San Bernardino County, Multi-
Family Revenue, VRDN,
RB, (A) (B) (C)
3.750%, 09/07/96 4,300 4,300
San Diego County, Water Authority
Revenue Center, Ser A, RB,
Pre-Refunded @102 (D)
7.000%, 05/01/97 225 234
San Diego Multi-Family Housing
Revenue, LA Cima Apartments
Project, Ser K, VRDN,
RB (A) (B) (C)
3.250%, 09/07/96 1,550 1,550
San Diego Water Authority, Water
Revenue, Ser A, COP,
Pre-Refunded @ 102 (D)
7.300%, 05/01/97 1,900 1,981
San Dimas Multi-Family Housing
Revenue, Ser 88-A, VRDN,
RB (A) (B) (C)
3.570%, 09/07/96 5,670 5,670
San Francisco, City & County, TRAN
4.750%, 09/19/96 1,000 1,000
San Jose, USD, Santa Clara
County, TRAN
4.500%, 08/05/97 3,000 3,015
San Jose Finance Authority,
Hayes Mansion Improvement
Project B, VRDN, RB (A) (B) (C)
3.550%, 09/07/96 1,545 1,545
San Marcos Industrial Development
Authority, Amistar Project,
VRDN, RB (A) (B) (C)
3.700%, 09/07/96 4,500 4,500
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Santa Ana Housing Authority,
Harbor Points Apartments,
Ser 95-A, VRDN,
RB (A) (B) (C)
3.250%, 09/07/96 $ 2,650 $ 2,650
Santa Clara, Electric Revenue,
Ser A, VRDN, RB (A) (B) (C)
3.300%, 09/07/96 860 860
Santa Rosa, Wastewater Revenue,
Subregional Wastewater Project A,
RB, FGIC Insured
4.000%, 09/01/96 890 890
Simi Valley Multi-Family Housing,
Lincoln Wood Ranch, VRDN,
RB (A) (B) (C)
3.450%, 09/07/96 9,700 9,700
Simi Valley Public Finance
Authority, Lease Revenue,
VRDN, RB (A) (B) (C)
3.300%, 09/07/96 9,000 9,000
Simi Valley, West End Community
Development Project,
RB, Pre-Refunded @ 102 (D)
7.550%, 09/01/96 500 510
Solano County, USD, TRAN
4.500%, 11/01/96 5,000 5,005
Sonoma County, TRAN
4.250%, 11/01/96 1,000 1,002
Sonoma Valley, USD, TRAN
4.500%, 07/03/97 3,000 3,014
South California Public Power
Authority, Transmission Project,
Ser 91, RB, AMBAC
Insured (A) (B)
3.200%, 09/07/96 6,800 6,800
Tracy, Hospital Revenue, Tracy
Community Memorial Hospital,
Ser A, RB, Pre-Refunded @ 102 (D)
8.625%, 01/01/97 3,000 3,107
University of California, Various
Capital Projects, Ser B, COP,
MBIA Insured
3.950%, 09/01/96 1,000 1,000
Upland Community Redevelopment
Agency, Multi-Family Housing
Revenue, Northwoods Project,
Ser B, VRDN, RB (A) (B) (C)
3.900%, 09/07/96 2,300 2,300
Vacaville Multi-Family Housing,
Quail Run Apartments, Ser 88-A,
VRDN, RB (A) (B)
3.300%, 09/07/96 10,100 10,100
Visalia Convention Center,
VRDN, RB (A) (B) (C)
3.550%, 09/07/96 100 100
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
18
<PAGE>
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Visalia Convention Center,
VRDN, COP (A) (B) (C)
3.550%, 09/07/96 $ 9,475 $ 9,475
--------
Total Municipal Bonds
(Cost $411,856) 411,856
--------
Total Investments -- 104.2%
(Cost $411,856) 411,856
--------
OTHER ASSETS AND LIABILITIES, NET -- (4.2%) (16,443)
--------
NET ASSETS:
Portfolio Shares of Class A (unlimited
authorization -- no par value)
based on 44,720,592 outstanding
shares of beneficial interest 44,721
Portfolio Shares of Class G (unlimited
authorization -- no par value) based on
350,731,620 outstanding shares
of beneficial interest 350,731
Overdistributed Net Investment Income (34)
Accumulated Net Realized Loss
on Investments (5)
--------
Total Net Assets--100.0% $395,413
========
Net Asset Value, Offering Price and
Redemption Price Per Share-- Class A $ 1.00
========
Net Asset Value, Offering Price and
Redemption Price Per Share-- Class G $ 1.00
========
AMBAC AMERICAN MUNICIPAL BOND ASSURANCE CORPORATION
CGIC CAPITAL GUARANTY INSURANCE CORPORATION
COP CERTIFICATE OF PARTICIPATION
FGIC FINANCIAL GUARANTY INSURANCE CORPORATION
GO GENERAL OBLIGATION
MBIA MUNICIPAL BOND INVESTORS ASSURANCE
RAN REVENUE ANTICIPATION NOTE
RB REVENUE BOND
SER SERIES
TECP TAX EXEMPT COMMERCIAL PAPER
TRAN TAX & REVENUE ANTICIPATION NOTE
USD UNIFIED SCHOOL DISTRICT
VRDN VARIABLE RATE DEMAND NOTE
(A) FLOATING RATE SECURITY--THE RATE REFLECTED ON THE STATEMENT OF
NET ASSETS IS THE RATE IN EFFECT ON AUGUST 31, 1996.
(B) PUT AND DEMAND FEATURE--THE MATURITY DATE REPORTED ON THE
STATEMENT OF NET ASSETS IS THE LESSER OF THE MATURITY DATE
OR THE PUT DATE.
(C) SECURITIES ARE HELD IN CONJUNCTION WITH A LETTER OF CREDIT
FROM A MAJOR COMMERCIAL BANK OR FINANCIAL INSTITIUTION.
(D) PRE-REFUNDED SECURITY--THE MATURITY DATE SHOWN IS THE PRE-REFUNDED DATE.
INSTITUTIONAL TAX
FREE PORTFOLIO
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS -- 103.4%
ALABAMA -- 1.9%
Birmingham Historical Reservation
Authority, Tutwiler Hotel Project,
VRDN, RB (A) (B) (C)
3.700%, 09/07/96 $ 5,480 $ 5,480
Birmingham Medical Clinic
Revenue, St. Martins In The
Pines Project, Ser 89, VRDN,
RB (A) (B) (C)
3.600%, 09/07/96 3,375 3,375
Mobile Industrial Development,
IB Chemical Company,
VRDN, RB (A) (B) (C)
3.750%, 09/07/96 1,350 1,350
Montgomery BMC Special Care
Facilities Finance Authority,
Baptist Medical Center, Ser A,
VRDN, RB (A) (B) (C)
3.450%, 09/07/96 5,000 5,000
Russelville Industrial Development
Revenue, Clark Pulley Project,
Ser 94, VRDN, RB (A) (B) (C)
3.600%, 09/07/96 1,675 1,675
--------
16,880
--------
ALASKA -- 0.5%
Alaska Industrial Development
Export Authority, Safeway
Incorporated Project, RB
(A) (B) (C)
3.650%, 12/01/96 4,580 4,580
--------
ARIZONA -- 0.2%
Maricopa County Industrial
Development Authority,
McLane Company Project,
VRDN, RB (A) (B) (C)
3.900%, 09/07/96 870 870
Pinal County Industrial
Development Authority,
Pollution Control Project,
VRDN, RB (A) (B) (C)
3.750%, 09/01/96 300 300
Tuscon Industrial Development
Authority, Tuscon City Center
Parking, VRDN, RB (A) (B) (C)
3.625%, 09/07/96 900 900
--------
2,070
19
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
SEI TAX EXEMPT TRUST -- AUGUST 31, 1996
INSTITUTIONAL TAX FREE PORTFOLIO--CONTINUED
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
ARKANSAS -- 1.6%
Little Rock Southwest Hospital,
Ser 88, VRDN, RB (A) (B) (C)
3.450%, 09/07/96 $ 7,300 $ 7,300
Little Rock USD, TRAN
3.850%, 12/30/96 3,000 3,000
Pine Bluff Industrial Development
Revenue, Camden Wire Project,
VRDN, RB, (A) (B) (C)
3.550%, 09/07/96 3,700 3,700
--------
14,000
--------
CALIFORNIA -- 3.7%
California School Cash Reserve
Pool, Ser A, RAN
4.750%, 07/02/97 10,000 10,072
California State, Ser 96-97,
RAN
4.500%, 06/30/97 6,000 6,025
Placer Union High School
District, TRAN
4.700%, 09/05/96 3,000 3,000
Redlands Redevelopment
Agency, Parking Lease,
VRDN, RB (A) (B) (C)
3.720%, 09/07/96 1,900 1,900
Redlands Redevelopment
Refunding Project, Ser A,
VRDN, RB (A) (B) (C)
3.720%, 09/07/96 8,880 8,880
Rocklin USD, TRAN
4.700%, 09/05/96 2,000 2,000
--------
31,877
--------
COLORADO -- 1.7%
Colorado Housing Finance
Authority, Multi-Family
Housing, Grants Plaza Project
91-A, VRDN, RB (A) (B) (C)
3.525%, 09/07/96 875 875
Colorado State Health Facilities
Authority, Rocky Mountain
Project, VRDN, RB, (A) (B) (C)
3.550%, 09/07/96 2,000 2,000
Denver City & County Multi-
Family Housing, Ogden
Residence Project, VRDN,
Ser 85-B, RB (A) (B) (C)
3.950%, 09/01/96 5,485 5,485
Denver City & County
Revenue, Children's Hospital
Association Project, Ser B,
Pre-Refunded @ 101,
FGIC Insured (D)
8.000%, 10/01/96 1,350 1,368
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Englewood Industrial
Development Revenue,
Safeway Incorporated Project,
VRDN, RB (A) (B) (C)
3.650%, 12/01/96 $ 3,050 $ 3,050
Idaho Springs Industrial
Development Revenue, Safeway
Incorporated Project, VRDN,
RB (A) (B) (C)
3.650%, 12/01/96 2,230 2,230
--------
15,008
--------
DELAWARE -- 0.1%
Delaware Economic Development
Authority, Commercial
Development, Congoleum
Project, VRDN, RB (A) (B) (C)
3.650%, 09/07/96 1,000 1,000
--------
DISTRICT OF COLUMBIA -- 0.3%
District of Columbia, Washington,
Ser B-1, VRDN, RB (A) (B) (C)
3.950%, 09/01/96 2,500 2,500
--------
FLORIDA -- 4.1%
Boca Raton Industrial Development
Revenue, Parking Garage Project,
Ser 84-A, VRDN, RB (A) (B) (C)
3.875%, 09/07/96 7,950 7,950
Brevard County Housing Finance
Authority, Park Village &
Malobar Lakes Project,
VRDN, RB (A) (B) (C)
3.600%, 09/07/96 900 900
Broward County Multi-Family
Housing, Parkview Partnership,
VRDN, RB (A) (B) (C)
3.750%, 09/07/96 5,525 5,525
Broward County Housing Finance
Authority, Multi-Family Housing
Revenue, Landings Inverray
Apartments Project, VRDN,
RB (A) (B) (C)
3.550%, 09/07/96 1,000 1,000
Florida Housing Finance Authority,
Multi-Family Housing, Kings
County Project, Ser D, VRDN,
RB (A) (B) (C)
3.525%, 09/07/96 1,000 1,000
Florida Housing Finance Agency,
Multi-Family Housing, Lakeside
South Association, VRDN,
RB (A) (B) (C)
3.525%, 09/07/96 2,000 2,000
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
20
<PAGE>
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Florida Housing Finance
Authority, Sarasota Beneva
Place Association, Ser C,
VRDN, RB (A) (B) (C)
3.525%, 09/07/96 $ 3,645 $ 3,645
Florida Housing Finance
Authority, Ser 84, VRDN,
RB (A) (B) (C)
3.850%, 09/07/96 1,900 1,900
Halifax Hospital Medical
Center, Ser 96, TAN
3.800%, 04/15/97 6,000 6,002
Jacksonville Hospital Finance
Authority, University Medical
Center, VRDN, RB (A) (B) (C)
3.600%, 09/07/96 800 800
Jacksonville Industrial
Development, University of
Florida Health Science Center,
Ser 89, VRDN, RB (A) (B) (C)
3.650%, 09/07/96 1,000 1,000
Jacksonville University Hospital
Center Project,VRDN,
RB (A) (B) (C)
3.600%, 09/07/96 400 400
Orange County Industrial
Development Authority,
Orlando International Drive
Partnership Project, VRDN,
RB (A) (B) (C)
3.700%, 09/07/96 1,700 1,700
Pasco City Housing Finance
Authority, Multi-Family
Housing, Carlton Arms of
Magnolin Valley, Ser 85,
VRDN, RB (A) (B) (C)
3.625%, 09/07/96 2,000 2,000
--------
35,822
--------
GEORGIA -- 6.9%
Athens Multi-Family Housing,
Georgian Apartments,
VRDN, RB (A) (B) (C)
3.775%, 09/07/96 1,400 1,400
Cobb County Multi-Family
Housing, Tibairen Associates
Project, Ser 85-D, VRDN,
RB (A) (B) (C)
3.600%, 09/07/96 8,600 8,600
DeKalb County Industrial
Development Revenue,
Weyerhaeuser County Project,
VRDN, RB (A) (B)
3.548%, 09/07/96 3,500 3,500
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
DeKalb County Multi-Family
Housing Revenue, Camden
Brook Project, VRDN, RB (A) (B)
3.450%, 09/07/96 $ 500 $ 500
DeKalb County Multi-Family
Housing, Terrace Club Project,
Ser 93-B, VRDN, RB
(A) (B) (C)
3.600%, 09/07/96 4,430 4,430
DeKalb County Multi-Family
Housing, Wood Terrace
Apartments Project, VRDN,
RB (A) (B)
3.450%, 09/07/96 13,400 13,400
Downtown Athens Housing
Development Authority,
Georgian Apartments
Association, VRDN,
RB (A) (B) (C)
3.900%, 09/07/96 1,000 1,000
Evans County Industrial
Development Authority,
Sherman Utilities Structures,
VRDN, RB (A) (B) (C)
3.600%, 12/01/96 400 400
Federal Paper Board Company,
Tax-Exempt Bond Grantor
Trust, VRDN, RB (A) (B) (C)
3.900%, 09/07/96 7,200 7,200
Glynn-Brunswick Memorial
Hospital Authority, Georgia
Southeast Georgia Project,
VRDN, RB, MBIA
Insured (A) (B) (C)
3.350%, 09/07/96 500 500
Gwinnett Housing Authority,
Multi-Family Housing Revenue,
VRDN, RB (A) (B)
3.450%, 09/07/96 1,000 1,000
Jefferson & Twiggs County
Pollution Control, Nord Kaolin
Project, VRDN, RB (A) (B) (C)
3.550%, 09/07/96 1,220 1,220
Marietta Housing Finance
Authority, Multi-Family
Housing, Franklin Walk
Apartments Project,
VRDN, RB (A) (B) (C)
3.525%, 09/07/96 5,240 5,240
Rome, Ser 96, TAN, G.O.
3.270%, 12/31/96 3,000 3,000
Roswell Multi-Family Housing
Revenue, Belcourt Limited
Project, VRDN, RB (A) (B) (C)
3.750%, 09/07/96 9,000 9,000
--------
60,390
--------
21
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
SEI TAX EXEMPT TRUST -- AUGUST 31, 1996
INSTITUTIONAL TAX FREE PORTFOLIO--CONTINUED
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
ILLINOIS -- 6.1%
Chicago O'Hare International
Airport, American Airlines,
Ser A, VRDN, RB (A)
(B) (C)
3.750%, 09/01/96 $ 1,500 $ 1,500
Chicago O'Hare International
Airport, American Airlines,
Ser D, VRDN, RB (A)
(B) (C)
3.750%, 09/01/96 1,000 1,000
Chicago Tender Notes, Ser C (C)
3.700%, 11/25/96 10,000 10,000
Chicago Multi-Family Housing,
Waveland Association Project,
Ser A, VRDN, RB (A) (B) (C)
3.450%, 09/07/96 8,400 8,400
Chicago Multi-Family Housing,
Waveland Association Project,
Ser B, VRDN, RB (A) (B) (C)
3.450%, 09/07/96 825 825
Hazel Crest Hospital Facilities
Refunding & Improvement,
South Suburban Project,
Pre-Refunded @ 102, RB (D)
9.125%, 07/01/97 300 319
Illinois Development Finance
Authority, Pollution Control
Revenue, Commonwealth Edison
Project, Ser A, VRDN, RB,
AMBAC Insured (A) (B) (C)
3.550%, 09/07/96 9,300 9,300
Illinois State Health Facility
Authority, Lutheran Institution,
Ser C, VRDN, RB (A) (B)
3.500%, 09/07/96 1,000 1,000
Illinois State Industrial
Development, Miyano Machinery,
VRDN, RB (A) (B) (C)
4.000%, 09/07/96 4,250 4,250
Kave, Cook, & Dupage Counties
School District, Ser #46, G.O.,
FGIC Insured
6.300%, 01/01/97 1,000 1,010
Northwest Mutual Life Tax Exempt
Mortgage Trust, Illinois,
VRDN, RB (A) (B) (C)
4.500%, 02/15/97 485 485
Orland Hills Mortgage Authority,
Multi-Family Housing, Ser 88-A,
VRDN, RB (A) (B) (C)
3.550%, 09/07/96 1,400 1,400
Paxton Industrial Development
Authority, Merck & Aircoil,
VRDN, RB (A) (B)
3.900%, 09/07/96 900 900
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Saint Clair Industrial Building
Authority, Winchester
Apartments Project, Ser 94,
VRDN, RB (A) (B)
3.900%, 09/07/96 $ 8,000 $ 8,000
Springfield Multi-Family Housing,
Oak Center Limited Project,
VRDN, RB (A) (B)
3.750%, 09/07/96 4,900 4,900
--------
53,289
--------
INDIANA -- 5.0%
Bartholomew Consolidated
Schools, TAW
4.000%, 12/31/96 6,417 6,422
Beach Grove, TAW
3.850%, 12/31/96 1,400 1,400
East Chicago School City, TAW
4.000%, 12/31/96 7,500 7,505
Fort Wayne, Ser 83, VRDN,
RB (A) (B) (C)
3.625%, 09/07/96 4,750 4,750
GAF Tax Exempt Bond Grantor
Trust, Indiana, Ser A,
VRDN, RB (A) (B) (C)
4.050%, 09/07/96 2,520 2,520
Gary Indiana, Environmental
Improvement, United States
Steel Corporation,
VRDN, RB (A) (B) (C)
3.700%, 09/07/96 3,000 3,000
Kokomo Center Township, TAW
4.250%, 12/31/96 4,963 4,969
Merrillville Community School
Corporation, TAW
4.000%, 12/31/96 3,650 3,652
Michigan City Economic
Development, Marley Company
Project, Ser 84, VRDN,
RB (A) (B) (C)
3.625%, 09/07/96 1,525 1,525
Michigan City Economic
Development, Marley Company
Project, VRDN, RB (A) (B) (C)
3.625%, 09/07/96 1,225 1,225
Michigan City, TAW
3.900%, 12/31/96 3,000 3,001
Northwest Mutual Life Tax Exempt
Mortgage Trust, VRDN,
RB (A) (B) (C)
4.500%, 02/15/97 55 55
South Bend Community School
Corporation, G.O.
3.850%, 01/15/97 1,500 1,500
Westfield-Washington School, TAW
4.000%, 12/31/96 1,500 1,501
--------
43,025
--------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
22
<PAGE>
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
KANSAS -- 0.9%
Merriam Municipal Temporary
Notes, Ser A, G.O.
4.150%, 06/01/97 $ 2,100 $ 2,102
Merriam Municipal Temporary
Notes, Ser B, G.O.
4.150%, 06/01/97 2,640 2,643
Shawnee County, Ser 96-1,
BAN, Callable 07/01/96 @ 100
4.800%, 03/01/97 415 415
Topeka Multi-Family Housing
Revenue, Ser 85, VRDN,
RB (A) (B) (C)
3.400%, 09/07/96 870 870
Wichita Pollution Control, CIC
Industries Incorporated,
VRDN, RB (A) (B) (C)
3.875%, 09/07/96 1,590 1,590
--------
7,620
--------
KENTUCKY -- 0.6%
Covington Industrial Building
Revenue, Atkins & Pearce
Incorporated, Ser 95,
VRDN, RB (A) (B) (C)
3.550%, 09/07/96 1,770 1,770
Georgetown Educational
Institution Improvement,
Georgetown College Project,
VRDN, RB (A) (B) (C)
3.550%, 09/07/96 2,000 2,000
Newport City Multi-Family
Housing Revenue, Hannaford
Project, (A) (B)
3.750%, 12/01/96 1,785 1,785
--------
5,555
--------
LOUISIANA -- 0.7%
Louisiana Water Project, VRDN,
RB (A) (B) (C)
3.600%, 09/07/96 3,000 3,000
New Orleans Industrial
Development Bond, Spectrum
Control Technology Project,
VRDN, RB (A) (B) (C)
3.550%, 09/07/96 2,000 2,000
South Louisiana Port Common
Marine Term Revenue Refunding,
Occidental Petroleum Project,
VRDN, RB (A) (B) (C)
3.400%, 09/07/96 1,000 1,000
--------
6,000
--------
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
MAINE -- 0.2%
Portland Industrial Development
Revenue, W.W. Grainger Project,
Ser 85, VRDN, RB (A) (B) (C)
3.800%, 09/07/96 $ 1,315 $ 1,315
--------
MARYLAND -- 4.9%
Annapolis Forest Gemini Facilities,
VRDN, RB (A) (B) (C)
3.550%, 09/07/96 2,450 2,450
Baltimore County, TECP (C)
3.500%, 10/02/96 6,000 6,000
Baltimore County Pollution Control
Revenue, Baltimore Gas and
Electric Project, TECP
3.550%, 10/03/96 6,000 6,000
Baltimore Industrial Development
Refunding Revenue, Field
Container Corporation, VRDN,
RB (A) (B) (C)
3.550%, 09/07/96 1,200 1,200
Howard County Maryland Multi-
Family Housing Authority,
Sherwood Crossing Limited
Project, Ser A (A)
3.750%, 06/01/97 2,500 2,500
Hyattsville Industrial Development
Revenue, Refunding Safeway
Project, RB (A) (C)
3.650%, 12/02/96 2,465 2,465
Maryland State Health & Higher
Education Facilities Authority,
Greater Baltimore Medical,
VRDN, RB (A) (B) (C)
3.600%, 09/07/96 1,000 1,000
Maryland State Health & Higher
Education Facilities Authority,
North Arundel Project, Ser B,
VRDN, RB (A) (B) (C)
3.500%, 09/07/96 2,000 2,000
Maryland State Health & Higher
Education Facilities Authority,
Pooled Loan Program, Ser B,
VRDN, RB (A) (B) (C)
3.450%, 09/07/96 5,000 5,000
Montgomery County Multi-
Family Housing Opportunities,
VRDN, RB (A) (B)
3.650%, 09/07/96 13,000 13,000
Prince George County Housing
Authority, Laurel Oxford Project,
VRDN, RB (A) (B) (C)
3.525%, 09/07/96 925 925
--------
42,540
23
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
SEI TAX EXEMPT TRUST -- AUGUST 31, 1996
INSTITUTIONAL TAX FREE PORTFOLIO--CONTINUED
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
MICHIGAN -- 1.5%
Benton Harbor School District,
Student Aid Anticipation Notes
4.000%, 03/31/97 $ 2,600 $ 2,601
Birmingham Economic
Development Corporation,
Brown Street Project, Ser 83,
VRDN, RB (A) (B) (C)
3.875%, 09/07/96 1,195 1,195
Detroit Downtown Development
Authority, Millender Center
Program Project, VRDN,
RB (A) (B) (C)
3.500%, 09/07/96 1,000 1,000
McDonalds Tax-Exempt Mortgage
Trust #1, VRDN, RB (A) (B) (C)
4.250%, 02/15/97 533 533
Michigan State Job Development
Authority, VRDN, RB (A) (B) (C)
3.700%, 09/07/96 1,300 1,300
Michigan State Job Development
Authority, Pollution Control
Revenue, Ser 85, Mazda Motor
Manufacturing Corporation #384,
VRDN, RB (A) (B) (C)
3.650%, 09/07/96 825 825
Michigan State Strategic Fund
Limited Obligation, Freezer
Services of Michigan, Ser 93,
VRDN, RB (A) (B) (C)
3.600%, 09/07/96 870 870
Northwest Mutual Life Tax-Exempt
Mortgage Trust, Michigan,
VRDN, RB (A) (B) (C)
4.500%, 02/15/97 135 135
University of Michigan Hospital,
Ser A, VRDN, RB (A) (B)
3.850%, 09/01/96 4,300 4,300
--------
12,759
--------
MINNESOTA -- 7.1%
Bloomington Commercial
Development, ATS II Project,
VRDN, RB (A) (B) (C)
3.795%, 09/07/96 4,125 4,125
Bloomington Multi-Family
Housing, Revenue Refunding,
Hampshire Apartments Project,
VRDN, RB (A) (B)
3.620%, 09/07/96 15,000 15,000
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Brooklyn Center Development
Project, Brookdale Office Park,
Ser 84, VRDN, RB (A) (B) (C)
3.620%, 09/07/96 $ 2,860 $ 2,860
Minneapolis, Ser A, VRDN,
RB (A) (B) (C)
3.500%, 09/07/96 17,700 17,700
Minneapolis, Various Purpose,
Ser 95-B, VRDN,
G.O. (A) (B) (C)
3.500%, 09/07/96 2,050 2,050
Minneapolis, VRDN,
G.O. (A) (B) (C)
3.500%, 09/07/96 6,500 6,500
Minnesota School District Credit
Enhancement, Tax & Aid
Anticipation Borrowing Program,
Ser 96-B, COP
4.500%, 09/09/97 1,700 1,711
New Brighton Commercial
Development Revenue, Business
Center, VRDN, RB (A) (B)
3.770%, 09/07/96 2,810 2,810
New Brighton Commercial
Development Revenue,
Venture I Project, Ser A,
VRDN, RB (A) (B)
3.770%, 09/07/96 1,740 1,740
Plymouth Industrial Development
Revenue, Banner Engineering
Project, VRDN, RB (A) (B) (C)
3.650%, 09/07/96 1,800 1,800
Plymouth Refunding Revenue,
Woodland Village Project,
VRDN, RB (A) (B) (C)
3.650%, 09/07/96 1,580 1,580
Saint Paul Housing &
Redevelopment Authority,
Lutheran Social Service Project,
VRDN, RB (A) (B) (C)
3.650%, 09/07/96 790 790
Saint Paul Housing &
Redevelopment Authority,
Multi-Family Housing,
Kendrick Housing Project,
VRDN, RB (A) (B) (C)
4.950%, 09/07/96 3,360 3,360
--------
62,026
--------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
24
<PAGE>
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
MISSISSIPPI -- 0.3%
Desoto County Industrial
Development Revenue,
American Soap Company
Project, VRDN, RB (A) (B) (C)
4.867%, 09/07/96 $ 2,400 $ 2,400
--------
MISSOURI -- 4.1%
Howell County Industrial
Development Authority,
Safeway Incorporated Project,
VRDN, RB (A) (B) (C)
3.850%, 02/01/97 4,015 4,015
Macon City Industrial
Development Authority, Health
Care Realty Macon Project,
VRDN, RB (A) (B) (C)
3.550%, 09/07/96 1,640 1,640
Missouri State Health &
Educational Facilities Authority,
Health Care Project, VRDN,
RB, MBIA Insured (A) (B) (C)
3.500%, 09/07/96 18,400 18,400
Saint Louis County Industrial
Development Authority,
Riverport Associates Project,
VRDN, RB (A) (B) (C)
3.700%, 09/07/96 2,900 2,900
Saint Louis County Industrial
Development Authority, Schnuck
Markets Kirkwood Incorporated,
VRDN, RB (A) (B) (C)
3.625%, 09/07/96 3,350 3,350
St. Louis Grantor Trust #1,
Ser 96-A, COP (A) (B) (C)
3.700%, 09/07/96 3,000 3,000
West Plains Industrial
Development Authority, West
Plains Manor Project, VRDN,
RB (A) (B) (C)
3.750%, 09/07/96 2,200 2,200
--------
35,505
--------
MONTANA -- 0.4%
Great Falls Industrial Development
Revenue, Safeway Incorporated
Project (A) (B) (C)
3.650%, 12/01/96 2,210 2,210
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Montana State Board of Investments,
Municipal Finance Consolidation
Act, Intercap Revolving Project,
Ser 94, G.O. (A) (B)
3.350%, 03/01/97 $ 1,000 $ 1,000
--------
3,210
--------
NEBRASKA -- 0.0%
Northwest Mutual Life Tax
Exempt Mortgage Trust,
VRDN, RB (A) (B) (C)
4.500%, 02/15/97 44 44
--------
NEVADA -- 0.2%
Henderson Public Improvement
Trust, Multi-Family Housing,
Pueblo Verde I+II Apartment
Project, Ser 95-A/95-B #1071,
VRDN, RB (A) (B) (C)
3.500%, 09/07/96 1,900 1,900
--------
NEW HAMPSHIRE -- 0.7%
New Hampshire Education &
Health Facilities Authority,
Dartmouth Education Loan
Project, VRDN, RB (A) (B)
3.800%, 06/01/97 1,015 1,015
New Hampshire Higher Education
& Health Facilities, Dartmouth
College, Mandatory
Put 06/01/97 @ 100 (A) (B)
3.750%, 06/01/97 2,500 2,500
New Hampshire State Housing
Finance Authority, Hampshire
Estates MHJ Project,
VRDN, RB (A) (B) (C)
3.550%, 09/07/96 2,500 2,500
--------
6,015
--------
NEW JERSEY -- 0.4%
New Jersey State, G.O.,
Pre-Refunded @ 101 (D)
7.200%, 04/15/97 3,500 3,610
Northwest Mutual Life Tax
Exempt Mortgage Trust,
VRDN, RB (A) (B) (C)
4.500%, 02/15/97 243 243
--------
3,853
--------
NEW MEXICO -- 0.6%
Albuquerque Metropolitan
Redevelopment, Springer Square
Project, VRDN, RB (A) (B) (C)
3.900%, 09/07/96 3,000 3,000
25
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
SEI TAX EXEMPT TRUST -- AUGUST 31, 1996
INSTITUTIONAL TAX FREE PORTFOLIO--CONTINUED
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Dona Ana County Industrial
Development Authority,
Foamex Products Incorporated
Project, VRDN, RB (A) (B) (C)
3.400%, 09/07/96 $ 2,100 $ 2,100
--------
5,100
--------
NEW YORK -- 3.6%
Monroe County Industrial
Development Authority,
Rochester District Project,
VRDN, RB (A) (B) (C)
3.450%, 09/07/96 2,200 2,200
Nassau County, Ser A, RAN
4.000%, 03/05/97 9,500 9,530
Nassau Library System
Project, RAN
4.000%, 12/30/96 1,200 1,201
New York State Job Development
Authority, VRDN, RB (A) (B) (C)
3.700%, 09/07/96 1,610 1,610
New York State Power
Authority, TECP (C)
3.500%, 09/09/96 1,000 1,000
North Hempstead, BAN
4.250%, 05/29/97 5,000 5,014
North Hempstead, Ser B, BAN
3.850%, 02/27/97 2,500 2,504
Ontario County Industrial
Development Authority, Seneca
Foods Project, Ser 92,
VRDN, RB (A) (B)
3.850%, 09/01/97 3,000 3,000
Wayne County Industrial
Development Authority, Seneca
Foods Project, Ser 92,
VRDN, RB (A) (B)
3.850%, 09/07/96 5,060 5,060
--------
31,119
--------
NORTH CAROLINA -- 2.5%
North Carolina Medical Care
Community, Hospital Revenue,
Pooled Finance Project, Ser A,
VRDN, RB (A) (B) (C)
3.600%, 09/07/96 19,400 19,400
Winston Salem, VRDN,
COP (A) (B) (C)
3.500%, 09/07/96 2,000 2,000
--------
21,400
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
NORTH DAKOTA -- 0.1%
Fargo Kelly Inn, Fargo Project,
Ser 93, VRDN, RB (A) (B) (C)
3.750%, 09/07/96 $ 1,225 $ 1,225
--------
OHIO -- 4.4%
Brecksville-Broadview Heights
School District, Ohio School
Improvement, Ser 96, BAN
3.900%, 01/17/97 2,500 2,503
Cleveland Waterworks Revenue,
Ser E, RB, Pre-Refunded @ 102,
MBIA Insured (D)
7.750%, 01/01/97 1,250 1,291
Franklin County Industrial
Development Revenue, Leveque
& Associates Project, RB, (A) (C)
3.650%, 12/01/96 1,445 1,445
Highland County Industrial
Development Revenue, Lancaster
Colony Corporation, VRDN,
RB (A) (C)
3.150%, 09/01/96 2,000 2,000
Marion County, Hospital Revenue,
Pooled Lease Progam, Ser 91,
VRDN, RB (A) (B) (C)
3.550%, 09/07/96 2,650 2,650
McDonalds Tax-Exempt Mortgage
Trust #1, VRDN, RB, Mandatory
(A) (B) (C)
4.250%, 02/15/97 2,489 2,489
Montgomery County Educational
Development Authority, ND
Motels Project, Mandatory
(A) (B) (C)
3.800%, 12/15/96 1,650 1,650
North Olmsted, BAN
4.600%, 12/19/96 16,250 16,274
Ohio Higher Education Facility
Commission, Ashland University
Project, Ser 95, VRDN,
RB (A) (B) (C)
3.550%, 09/07/96 2,820 2,820
Scioto County Healthcare Facilities
Revenue, Hillview Retirement
Project, (A) (B)
3.650%, 12/01/96 1,930 1,930
Stark County Healthcare Facilities,
Canton Christian Home Project,
VRDN, RB, (A) (B) (C)
3.150%, 09/01/96 1,380 1,380
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
26
<PAGE>
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Stark County Healthcare Facilities,
Canton Christian Home Project,
VRDN, RB (A) (B) (C)
3.350%, 09/15/96 $ 1,615 $ 1,615
--------
38,047
--------
OKLAHOMA -- 4.5%
Oklahoma City, Oklahoma
University, Ser 65, VRDN,
RB (A) (B) (C)
3.650%, 09/07/96 7,500 7,500
Oklahoma City, University City
Project, Ser 85, VRDN,
RB (A) (B) (C)
3.650%, 09/07/96 400 400
Oklahoma County Industrial
Development Authority, Baptist
General Convention Project,
Ser 89, VRDN, RB, Optional Put
09/01/96 @ 100 (A) (B) (C)
3.850%, 09/01/96 6,225 6,225
Oklahoma Mid-West Tax-Exempt
Mortgage Bond Trust,
VRDN, RB (A) (B) (C)
3.600%, 09/07/96 263 263
Oklahoma State Water Revenue
Board, State Loan Program
Revenue, RB (A) (B) (C)
3.700%, 03/03/97 10,000 10,000
Tulsa County Industrial
Development Authority,
Healthcare Revenue Laureate
Psychiatric Project, RB (A)
3.850%, 12/15/96 8,500 8,500
Tulsa Parking Authority,
Refunding First Mortgage
Williams Project 84, Ser A,
VRDN, RB (A) (B) (C)
3.750%, 11/15/96 3,000 3,000
Tulsa Public Facilities Authority,
Capital Improvement Project,
Ser 87-B, VRDN, RB (A) (B) (C)
3.800%, 11/15/96 2,910 2,910
--------
38,798
--------
OREGON -- 0.7%
Lane County Industrial
Development Revenue,
Weyerhaeuser Project,
VRDN, RB (A) (B)
3.548%, 09/07/96 1,000 1,000
Port of Portland, Public Grain
Elevator Columbia,
VRDN, RB (A) (B) (C)
3.750%, 09/07/96 4,945 4,945
--------
5,945
--------
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
PENNSYLVANIA -- 14.0%
Allegheny County Hospital
Development Authority
Revenue, South Hills Health
System Project, Ser B (A) (B) (C)
3.400%, 09/07/96 $ 1,850 $ 1,850
Allegheny County, Hospital
Development Presbyterian
University, Ser B-1, VRDN,
RB (A) (B) (C)
3.500%, 09/01/96 200 200
Bucks County Industrial
Development Authority,
Edgecomb Metals Project,
VRDN, RB (A) (B) (C)
3.400%, 09/07/96 1,600 1,600
Chester County Industrial
Development Authority,
The Woods Project,
VRDN, RB (A) (B) (C)
3.550%, 09/07/96 1,200 1,200
Cumberland County Municipal
Authority, United Methodist
Homes Aging Project,
VRDN, RB (A) (B) (C)
3.620%, 09/07/96 3,735 3,735
Delaware County, VRDN,
RB (A) (B)
3.400%, 09/07/96 3,500 3,500
Delaware County Industrial
Development Authority, British
Petroleum Project, Ser 95,
VRDN, RB (A) (B) (C)
3.750%, 09/01/96 700 700
Delaware County Industrial
Development Authority,
United Parcel Services Project,
Ser 85, VRDN, RB (A) (B)
3.650%, 09/01/96 2,000 2,000
Delaware Valley, Regional
Government Finance, Ser A,
VRDN, RB (A) (B) (C)
3.500%, 09/07/96 11,100 11,100
Emmaus General Authority,
Local Government, Ser B,
Goldman FGIC Insured,
VRDN, RB (A) (B)
3.550%, 09/07/96 900 900
Emmaus General Authority,
Local Government, Ser G-7,
VRDN, RB (A) (B) (C)
3.600%, 09/07/96 200 200
Emmaus General Authority,
Local Government, Ser H-5 ,
VRDN, RB (A) (B) (C)
3.550%, 09/07/96 600 600
27
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
SEI TAX EXEMPT TRUST -- AUGUST 31, 1996
INSTITUTIONAL TAX FREE PORTFOLIO--CONTINUED
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Emmaus General Authority,
Sub Ser B-11, VRDN,
RB (A) (B) (C)
3.600%, 09/07/96 $ 10,000 $ 10,000
Emmaus General Authority,
Sub Ser D-8, VRDN,
RB (A) (B) (C)
3.600%, 09/07/96 3,000 3,000
Erie County, Senior Living Services
Project, VRDN, RB (A) (B) (C)
3.550%, 09/07/96 1,930 1,930
Langhorne Hospital Revenue
Authority, Franciscan Health
Systems Project, Ser C, VRDN,
RB (A) (B) (C)
3.650%, 09/01/96 1,520 1,520
McCandless Industrial
Development Authority,
Bradford Foundation Project,
VRDN, RB (A) (B) (C)
3.550%, 09/07/96 1,730 1,730
McDonalds Tax-Exempt Mortgage
Trust, Pennsylvania #1,
VRDN, RB (A) (C)
4.250%, 02/15/97 533 533
Montgomery County Higher
Education & Health Authority,
Hospital Revenue, VRDN, RB,
AMBAC Insured (A) (B)
3.350%, 09/07/96 2,300 2,300
Montgomery County Higher
Education & Health Authority,
Hospital Revenue,
VRDN, RB (A) (B) (C)
3.650%, 09/07/96 20,000 20,000
Montgomery County, Industrial
Development Authority, Ikea
Property Project, VRDN,
RB (A) (B) (C)
3.550%, 09/07/96 3,300 3,300
Montgomery County, Industrial
Development Authority,
Plymouth Woods Project,
VRDN, RB (A) (B) (C)
3.550%, 09/07/96 4,500 4,500
Northeastern Hospital &
Education Authority, Allhealth
Pooled Finance Program,
VRDN, RB (A) (B) (C)
3.600%, 09/07/96 5,000 5,000
Northwest Mutual Life Tax-Exempt
Mortgage Trust,VRDN,
RB, (A) (B) (C)
4.500%, 02/15/97 99 99
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Pennsylvania Higher Education
Facilities Authority, Thomas
Jefferson University, Ser B,
VRDN, RB, Put 02/26/97
@ 100 (A) (B) (C)
3.700%, 02/26/97 $ 1,000 $ 1,000
Pennsylvania Higher Education
Facilities Authority, Thomas
Jefferson University, Ser C,
VRDN, RB (A) (B) (C)
3.700%, 02/26/97 3,000 3,000
Pennsylvania Hospital & Higher
Education Facility, Children's
Hospital Project, VRDN,
RB (A) (B) (C)
3.750%, 09/01/96 1,000 1,000
Pennsylvania Intergovernmental
Authority, Special Tax Revenue,
Philadelphia Funding Program,
FGIC Insured
5.000%, 06/15/97 2,700 2,727
Pennsylvania State Higher
Education Facility, Carnegie
Mellon University Project,
Ser C, VRDN, RB (A) (B) (C)
3.750%, 09/01/96 500 500
Philadelphia Redevelopment
Authority, Pennsylvania
School For The Deaf, VRDN,
RB (A) (B) (C)
3.700%, 09/07/96 1,095 1,095
Philadelphia School
District, TRAN
4.500%, 06/30/97 3,000 3,015
Philadelphia, Ser A, TRAN
4.500%, 06/30/97 6,000 6,026
Schuykill County, VRDN,
RB (A) (B) (C)
3.950%, 09/01/96 200 200
Schuylkill County Industrial
Development Authority,
Northeastern Power Project,
VRDN, RB (A) (B) (C)
3.850%, 09/01/96 1,000 1,000
Shenango Valley Osteopathic
Hospital Authority, Shenango
Valley Medical Center Project,
Pre-Refunded @ 102 (D)
7.875%, 04/01/97 3,900 4,069
Temple University of The
Commonwealth, University
Funding Project, Ser 96, RB
4.625%, 05/20/97 1,000 1,006
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
28
<PAGE>
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Warren County, Warren General
Hospital Project, Ser 94-B,
VRDN, RB (A) (B) (C)
3.550%, 09/07/96 $ 400 $ 400
York County Industrial
Development, New Edgecomb
Corporation Project,
VRDN, RB (A) (B) (C)
3.400%, 09/07/96 1,300 1,300
York General Authority Pooled
Revenue, VRDN, RB (A) (B) (C)
3.500%, 09/07/96 14,000 14,000
-------
121,835
-------
SOUTH CAROLINA -- 2.6%
Charleston Center Tax Exempt
Bond Grantor Trust #1,
VRDN, RB (A) (B) (C)
3.900%, 02/01/97 7,263 7,263
Charleston Center Tax-Exempt
Mortgage Bond Grantor Trust #2
(A) (B) (C)
3.700%, 11/01/96 4,000 4,000
Charleston Center Tax-Exempt
Bond Grantor Trust #4,
VRDN, RB (A) (B) (C)
3.700%, 12/01/96 7,267 7,267
Charleston Center Tax-Exempt
Bond Grantor Trust #5,
VRDN, RB (A) (B) (C)
3.150%, 09/01/96 4,035 4,035
--------
22,565
--------
SOUTH DAKOTA -- 0.2%
Watertown Industrial
Development Authority,
Ramkota Project, Ser 93,
VRDN, RB (A) (B) (C)
3.750%, 09/07/96 1,315 1,315
--------
TENNESSEE -- 1.0%
GAF Tax-Exempt Bond Grantor
Trust, Ser A, VRDN, RB (A) (B) (C)
4.100%, 09/07/96 4,480 4,480
Nashville Metropolitan
Government, Toys "R" Us Project,
Ser 84, VRDN, RB (A)
(B) (C)
3.750%, 09/07/96 1,030 1,030
Shelby County Health Education
Housing, Metropolitan
Government Industrial
Development, Rhodes College,
VRDN, RB (A) (B) (C)
3.850%, 09/07/96 3,000 3,000
--------
8,510
--------
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
TEXAS -- 4.4%
Arlington Industrial Development
Revenue, Dallas-Fort Worth
Newspaper, Ser 85,
VRDN, RB (A) (B) (C)
3.900%, 09/07/96 $ 6,200 $ 6,200
Brazo River, Hoffman-Laroche
Project, Ser 85,
VRDN, RB (A) (B) (C)
3.525%, 09/07/96 1,000 1,000
Corpus Christi Industrial
Development Committee,
Texas-Air Project,
VRDN, RB (A) (B) (C)
3.850%, 02/01/97 4,800 4,800
Harris County Housing Finance
Authority, Multi-Family Housing,
Arbor II Project, VRDN, RB (A) (B)
3.950%, 09/07/96 2,070 2,070
Harris County Multi-Family
Housing, Glenhollow Project,
VRDN, RB (A) (B) (C)
3.775%, 09/07/96 1,900 1,900
Harris County Multi-Family
Housing, Greenhouse Project,
VRDN, RB (A) (B) (C)
3.775%, 09/07/96 2,400 2,400
Nacogdocles Health Finance
Development Committee,
South Central Health Services
Project, VRDN, RB (A) (B) (C)
3.600%, 09/07/96 3,000 3,000
North Carolina National Bank
Tax-Exempt Trust, Texas,
Ser 90-B, VRDN, RB (A) (B) (C)
4.125%, 09/07/96 3,865 3,865
Texas State, TECP
3.700%, 02/05/97 11,000 11,000
Trinity River Industrial
Development Authority,
Trinity River Project,
VRDN, RB (A) (B) (C)
3.525%, 09/07/96 2,000 2,000
--------
38,235
--------
UTAH -- 0.4%
Northwest Mutual Life Tax-Exempt
Mortgage Trust,
VRDN, RB, (A) (B) (C)
4.500%, 02/15/97 113 113
29
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
SEI TAX EXEMPT TRUST -- AUGUST 31, 1996
INSTITUTIONAL TAX FREE PORTFOLIO--CONCLUDED
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Salt Lake City Industrial
Development Authority,
Deveraux Partners Project,
VRDN, RB (A) (B) (C)
3.550%, 09/07/96 $ 2,500 $ 2,500
Salt Lake City Industrial
Development Authority,
Park View Plaza Project,
VRDN, RB (A) (B) (C)
3.720%, 09/07/96 1,275 1,275
--------
3,888
--------
VIRGINIA -- 0.7%
Henrico County Industrial
Development Authority,
Hermitage Project,
VRDN, RB (A) (B) (C)
3.900%, 09/01/96 2,600 2,600
Northwest Mutual Life
Tax-Exempt Mortgage Trust,
VRDN, RB, (A) (B) (C)
4.500%, 02/15/97 77 77
Norfolk Industrial Development
Authority, Toys "R" Us Project,
Ser 84, VRDN, RB, (A) (B) (C)
3.625%, 09/07/96 1,425 1,425
Virginia State Housing
Development Authority,
AHC Services Corporation, Ser A,
VRDN, RB (A) (B) (C)
3.550%, 09/07/96 2,100 2,100
--------
6,202
--------
WASHINGTON -- 1.7%
Kent Economic Development
Revenue, Northwest Aluminum
Products, VRDN, RB (A) (B) (C)
3.950%, 09/07/96 1,600 1,600
Redmond Public Corporation
Industrial Development Revenue,
Integrated Circuit Project,
Ser 88, VRDN, RB (A) (B) (C)
3.820%, 09/07/96 620 620
Washington State Housing Finance
Commission, VRDN,
RB (A) (B) (C)
3.650%, 09/07/96 5,550 5,550
Washington State Housing Finance
Community, Nonprofit Housing
YMCA, Snobonish County Project,
VRDN, RB (A) (B) (C)
3.550%, 09/01/96 3,250 3,250
Washington State Housing Finance
Community, Pioneer Human
Services Project, Ser 91,
VRDN, RB (A) (B) (C)
3.500%, 09/07/96 1,855 1,855
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Washington State Student Loan
Finance Association Project,
Second Series, VRDN,
RB (A) (B) (C)
3.650%, 09/07/96 $ 1,605 $ 1,605
--------
14,480
--------
WEST VIRGINIA -- 1.9%
Charleston Building Community
Parking Facility, Charleston
Town Center,
VRDN, RB (A) (B) (C)
3.600%, 09/07/96 10,920 10,920
Charleston Community Parking
Facility Revenue,
VRDN, RB (A) (B) (C)
3.600%, 09/07/96 400 400
Parkersburg Industrial
Development Revenue,
B-H Associates Project,
VRDN, RB (A) (B) (C)
3.775%, 09/07/96 3,500 3,500
West Virginia State Hospital
Financing Authority, VHA
Mid-Atlantic/Cap Project,
Ser G, VRDN, RB,
AMBAC Insured (A) (B)
3.400%, 09/07/96 1,500 1,500
--------
16,320
--------
WISCONSIN -- 5.4%
Beaver Dam USD, TRAN
4.140%, 08/27/97 3,000 3,001
Burlington Area School
District, TRAN
4.220%, 08/29/97 3,000 3,005
Eau Claire Area School
District, TRAN
4.015%, 09/23/96 11,000 11,000
Hartford Industrial Development
Revenue, IC Products Company
Project, VRDN, RB (A) (B) (C)
3.700%, 09/07/96 5,000 5,000
Kettle - Moraine School
District, TRAN
4.010%, 08/22/97 3,200 3,200
Mayville Area School
District, BAN
3.500%, 11/01/96 5,000 5,000
Mount Horeb Area School
District, BAN
3.500%, 11/01/96 3,750 3,750
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
30
<PAGE>
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Northwest Mutual Life
Tax-Exempt Mortgage Trust,
VRDN, RB, (A) (B) (C)
4.500%, 02/15/97 $ 118 $ 118
Village of Menomonee Industrial
Development Revenue,
Maysteel Corporation,
VRDN, RB (A) (B) (C)
3.630%, 09/07/96 3,000 3,000
Wausau Industrial Development
Revenue, Venture Partnership
Project, VRDN, RB (A) (B) (C)
3.600%, 09/07/96 10,000 10,000
--------
47,074
--------
WYOMING -- 0.6%
Cheyenne County Revenue
Refunding, Holiday Inn Project,
VRDN (A) (B) (C)
3.700%, 10/01/96 1,355 1,355
Evanston Industrial Development
Revenue, Safeway Project,
Optional Put 12/01/96
@ 100 (A) (B) (C)
3.650%, 12/01/96 3,700 3,700
Northwest Mutual Life
Tax-Exempt Mortgage
Trust, VRDN, RB, (A) (B) (C)
4.500%, 02/15/97 85 86
--------
5,141
--------
Total Municipal Bonds
(Cost $898,382) 898,382
--------
Total Investments -- 103.4%
(Cost $898,382) 898,382
--------
OTHER ASSETS AND LIABILITIES, NET -- (3.4%) (29,630)
--------
NET ASSETS:
Portfolio Shares of Class A (unlimited
authorization -- no par value) based
on 835,524,839 outstanding shares of
beneficial interest 835,356
Portfolio Shares of Class B (unlimited
authorization -- no par value) based
on 14,150,080 outstanding shares of
beneficial interest 14,150
Portfolio Shares of Class C (unlimited
authorization -- no par value) based
on 19,205,806 outstanding shares of
beneficial interest 19,206
Undistributed Net Investment Income 4
Accumulated Net Realized Gain
on Investments 36
--------
Total Net Assets--100.0% $868,752
========
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Net Asset Value, Offering Price and
Redemption Price Per Share-- Class A $ 1.00
========
Net Asset Value, Offering Price and
Redemption Price Per Share-- Class B $ 1.00
========
Net Asset Value, Offering Price and
Redemption Price Per Share-- Class C $ 1.00
========
AMBAC AMERICAN MUNICIPAL BOND ASSURANCE CORPORATION
BAN BOND ANTICIPATION NOTE
COP CERTIFICATE OF PARTICIPATION
FGIC FINANCIAL GUARANTY INSURANCE CORPORATION
GO GENERAL OBLIGATION
MBIA MUNICIPAL BOND INVESTOR ASSURANCE
RAN REVENUE ANTICIPATION NOTE
RB REVENUE BOND
SER SERIES
TAN TAX ANTICIPATION NOTE
TAW TAX ANTICIPATION WARRANT
TECP TAX EXEMPT COMMERCIAL PAPER
TRAN TAX & REVENUE ANTICIPATION NOTE
USD UNIFIED SCHOOL DISTRICT
VRDN VARIABLE RATE DEMAND NOTE
(A) FLOATING RATE SECURITY--THE RATE REFLECTED ON THE STATEMENT OF
NET ASSETS IS THE RATE IN EFFECT ON AUGUST 31, 1996.
(B) PUT AND DEMAND FEATURE--THE MATURITY DATE REPORTED ON THE
STATEMENT OF NET ASSETS IS THE LESSER OF THE MATURITY DATE OR THE PUT DATE.
(C) SECURITIES ARE HELD IN CONJUNCTION WITH A LETTER OF CREDIT FROM A
MAJOR COMMERCIAL BANK OR FINANCIAL INSTITUTION.
(D) PRE-REFUNDED SECURITY--THE MATURITY DATE SHOWN IS THE PRE-REFUNDED DATE.
PENNSYLVANIA TAX
FREE PORTFOLIO
MUNICIPAL BONDS -- 103.9%
PENNSYLVANIA -- 103.9%
Allegheny County Hospital
Development Authority,
Children's Hospital of Pittsburgh,
Ser 85 B, VRDN, RB,
MBIA Insured (A) (B)
3.350%, 09/07/96 $ 200 $ 200
Allegheny County Education
Building Authority, University
of Pittsburgh Project, Ser 85 B,
VRDN, RB (A) (B) (C)
3.300%, 09/07/96 850 850
Allegheny County Hospital
Development Authority,
Children's Hospital, Ser B,
VRDN, RB, MBIA Insured (A) (B)
3.500%, 09/07/96 1,000 1,000
31
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
SEI TAX EXEMPT TRUST -- AUGUST 31, 1996
PENNSYLVANIA TAX FREE PORTFOLIO--CONTINUED
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Athens Area School District, TRAN
4.100%, 06/30/97 $ 800 $ 800
Beaver County Industrial
Development Authority,
Pollution Control Revenue,
Ser C, TECP (C)
3.500%, 10/24/96 1,000 1,000
Berks County Industrial
Development Authority, Rilsaw
Industrial Project, Elf Aquitaine,
VRDN, RB (A) (B) (C)
3.625%, 09/07/96 900 900
Bucks County Industrial
Development Authority,
Edgecomb Metals Project,
VRDN, RB (A) (B) (C)
3.400%, 09/07/96 1,275 1,275
Bucks County Industrial
Development Authority,
USX Project, VRDN, RB (B) (C)
3.550%, 11/01/96 1,000 1,000
Butler County Industrial
Development Authority,
Pennzoil Project, VRDN,
RB (A) (B) (C)
3.850%, 09/07/96 600 600
Chartiers Valley Industrial &
Commercial Development
Authority, Commercial
Development Revenue, Parkay
Center West Project A,
VRDN, RB (A) (B) (C)
3.700%, 09/07/96 1,250 1,250
Chester County Hospital Authority,
Paoli Memorial Hospital Project,
RB, Pre-Refunded @ 102 (D)
7.625%, 10/01/96 400 409
Chester County Health & Education
Facilities Authority, Barclay
Friends Project, Ser A,
VRDN, RB (A) (B) (C)
3.500%, 09/07/96 500 500
Cumberland Valley School
District, Ser A, G.O.
6.150%, 09/01/97 95 97
Cumberland Valley School
District, Ser B, G.O.
5.750%, 09/01/97 385 392
Delaware County Airport Facility,
Airport Facility Revenue, Ser 85,
VRDN, RB (A) (B) (C)
3.650%, 09/01/96 600 600
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Delaware County Industrial
Development Authority, British
Petroleum Project, Ser 95,
VRDN, RB (A) (B)
3.750%, 09/01/96 $ 1,000 $ 1,000
Delaware County Industrial
Development Authority, Scott
Paper Project, Ser A,
VRDN, RB (A) (B)
3.400%, 09/07/96 1,000 1,000
Delaware Valley Regional
Finance Authority, Local
Government Revenue, Ser D,
VRDN, RB (A) (B) (C)
3.500%, 09/07/96 100 100
Delaware Valley Regional Finance
Authority, Local Government
Revenue, Ser B,
VRDN, RB (A) (B) (C)
3.500%, 09/07/96 1,000 1,000
East Penn School District
Authority, Ser A, G.O.,
FGIC Insured (C)
3.500%, 09/01/96 255 255
Emmaus General Authority,
Local Government, Ser B,
Goldman FGIC Insured (A) (B)
3.550%, 09/07/96 1,500 1,500
Emmaus General Authority,
Revenue Credit Enhancement,
RB (A) (B) (C)
3.550%, 09/07/96 500 500
Johnsonburg Area School District,
Elk County, G.O., FSA Insured
4.000%, 04/01/97 135 135
Lancaster Higher Education
Authority, Franklin & Marshall
Project, Ser 95, VRDN, RB (A) (B)
3.700%, 09/07/96 575 575
Lancaster, Ser A, G.O., FGIC Insured
3.400%, 10/01/96 300 300
Lebanon County Industrial
Development Authority,
Aluminum Company of America
Project, Ser 92, VRDN, RB (A) (B)
3.550%, 09/07/96 2,020 2,020
Lehigh County Water Authority,
VRDN, RB, FGIC Insured (A) (B)
3.350%, 09/07/96 835 835
Montgomery County, PECO
Energy Project, TECP (C)
3.550%, 09/10/96 1,200 1,200
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
32
<PAGE>
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Montgomery County Higher
Education & Health Authority,
Holy Redeemer Hospital, VRDN,
RB, AMBAC Insured, (A) (B)
3.350%, 09/07/96 $ 900 $ 900
Montgomery County Higher
Education & Health Facility
Authority, Higher Education
& Loan, Ser 96-A, VRDN,
RB (A) (B) (C)
3.650%, 09/07/96 1,700 1,700
Montgomery County Industrial
Development Authority, Ikea
Property Project, VRDN,
RB (A) (B)
3.550%, 09/07/96 1,500 1,500
Montgomery County Industrial
Development Authority, Valley
Square Project, VRDN,
RB (A) (B) (C)
3.450%, 09/07/96 755 755
Montgomery County Higher
Education & Health Authority,
Frankford Hospital Project, RB,
Pre-Refunded @ 102 (D)
7.875%, 01/01/97 600 620
Mount Carmel School District,
Unlimited Tax G.O.,
AMBAC Insured
3.300%, 10/15/96 230 230
North Umberland County
Industrial Development Authority,
Atlas Development Association,
VRDN, RB (A) (B) (C)
3.550%, 09/07/96 100 100
Northeastern Hospital & Education
Authority, Allhealth Pooled
Financing Program,
VRDN, RB (A) (B) (C)
3.600%, 09/07/96 1,850 1,850
Pennsylvania Higher Education
Facilities, Thomas Jefferson
University, Ser B, RB, (A) (B) (C)
3.700%, 02/26/97 1,750 1,750
Pennsylvania Intergovernmental
Authority, Special Tax Revenue,
Philadelphia Funding Program,
RB, FGIC Insured
5.000%, 06/15/97 300 303
Pennsylvania State Higher
Education Facility, Allegheny
College Project, VRDN,
RB (A) (B) (C)
3.500%, 09/07/96 1,800 1,800
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Philadelphia Industrial
Development Authority, Multi-
Family Housing, Harbor View
Towers Project,
VRDN, RB (A) (B) (C)
3.800%, 09/07/96 $ 1,065 $ 1,065
Philadelphia School District, TRAN
4.500%, 06/30/97 1,250 1,256
Philadelphia Redevelopment
Authority, Rivers Edge Project,
VRDN, RB (A) (B) (C)
3.850%, 09/07/96 500 500
Philadelphia, TRAN
4.500%, 06/30/97 1,000 1,004
Pittsburgh, University of Pittsburgh,
Ser 89-A,VRDN, RB (A) (B) (C)
3.300%, 09/07/96 500 500
Sayre Health Facilities Authority
Revenue, VHR Pennsylvania
Capital Financing Project, Ser D,
VRDN, RB, AMBAC
Insured (A) (B)
3.350%, 09/07/96 200 200
Schuylkill County Industrial
Development Authority,
Gilberton Power Project,
VRDN, RB (A) (B) (C)
3.500%, 09/07/96 1,000 1,000
Scranton Lackawana Health &
Welfare Authority, University
of Scranton Project, RB (B) (C)
3.650%, 11/01/96 685 685
Shaler Township, TRAN
3.810%, 12/31/96 800 801
Temple University, University
Funding, Ser 96, RB
4.625%, 05/20/97 1,000 1,006
Warren County Hospital
Authority, Warren General
Hospital Project, Ser 94-B,
VRDN, RB (A) (B) (C)
3.550%, 09/07/96 1,500 1,500
West York School District
Authority, TRAN
4.375%, 06/30/97 534 535
York General Authority, Pooled
Revenue, VRDN, RB (A) (B) (C)
3.500%, 09/07/96 1,800 1,800
--------
Total Municipal Bonds
(Cost $44,653) 44,653
--------
33
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
SEI TAX EXEMPT TRUST -- AUGUST 31, 1996
PENNSYLVANIA TAX FREE PORTFOLIO--CONCLUDED
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Total Investments -- 103.9%
(Cost $44,653) $44,653
--------
OTHER ASSETS AND LIABILITIES, NET-- (3.9%) (1,682)
--------
NET ASSETS:
Portfolio Shares of Class A (unlimited authorization -- no par value) based on
42,985,216 outstanding shares of
beneficial interest 42,985
Accumulated Net Realized Loss
on Investments (14)
--------
Total Net Assets--100.0% $42,971
========
Net Asset Value, Offering Price and
Redemption Price Per Share-- Class A $ 1.00
========
AMBAC AMERICAN MUNICIPAL BOND ASSURANCE CORPORATION
FGIC FINANCIAL GUARANTY INSURANCE CORPORATION
FSA FINANCIAL SECURITY ASSURANCE
GO GENERAL OBLIGATION
MBIA MUNICIPAL BOND INVESTORS ASSURANCE
RB REVENUE BOND SER SERIES
TECP TAX EXEMPT COMMERCIAL PAPER
TRAN TAX & REVENUE ANTICIPATION NOTE
VRDN VARIABLE RATE DEMAND NOTE
(A) FLOATING RATE SECURITY--THE RATE REFLECTED ON THE STATEMENT OF
NET ASSETS IS THE RATE IN EFFECT ON AUGUST 31, 1996.
(B) PUT AND DEMAND FEATURE--THE MATURITY DATE REPORTED ON THE
STATEMENT OF NET ASSETS IS THE LESSER OF THE MATURITY DATE OR THE
PUT DATE.
(C) SECURITIES ARE HELD IN CONJUNCTION WITH A LETTER OF CREDIT FROM A
MAJOR COMMERCIAL BANK OR FINANCIAL INSTITUTION.
(D) PRE-REFUNDED SECURITY--THE MATURITY DATE SHOWN IS THE
PRE-REFUNDED DATE.
INTERMEDIATE-TERM MUNICIPAL PORTFOLIO
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS -- 99.9%
ALABAMA -- 1.2%
Alabama State Private Colleges
& Tuskegee University Project,
RB, Asset Guaranty
5.700%, 09/01/10 $ 825 $ 798
5.700%, 09/01/11 870 840
--------
1,638
--------
ALASKA -- 2.8%
Anchorage Electric Utility,
RB, MBIA Insured
8.000%, 12/01/06 1,775 2,150
8.000%, 12/01/07 1,310 1,595
--------
3,745
--------
ARIZONA -- 0.6% Tempe, G.O.
8.000%, 07/01/01 735 837
--------
ARKANSAS -- 0.2%
Little Rock Capital Improvement
Refunding Bonds, Ser 95-A,
RB, Callable 02/01/00 @ 100
5.950%, 02/01/12 305 307
--------
CALIFORNIA -- 17.1%
Anaheim Public Finance
Authority, Electric Utility
Project, RB, MBIA Insured,
Callable 04/01/03 @ 102
5.400%, 10/01/08 2,000 1,982
California Education Facility
Authority, University of San
Francisco, RB, MBIA Insured
6.000%, 10/01/08 1,000 1,057
California Health Facilities
Finance Authority, Sisters of
Providence, RB
5.500%, 10/01/05 1,100 1,107
California Housing Finance
Agency, RB, MBIA Insured
5.300%, 08/01/14 500 490
California Housing Finance
Authority, RB, MBIA Insured,
Callable 08/01/04 @ 102
7.250%, 08/01/17 1,250 1,322
California State Health Facilities
Summit Medical Center, Ser A,
RB, FSA Insured
5.250%, 05/01/04 1,500 1,504
California Statewide Communities
Development Authority, San
Gabriel Valley-A, COP
6.000%, 09/01/06 1,000 1,019
34
<PAGE>
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Elk Grove, Unified School
District, G.O., AMBAC Insured
6.500%, 12/01/07 $ 1,000 $ 1,105
Irvine Special Assessment
District 89-10, VRDN,
G.O. (A) (B) (E)
3.750%, 09/07/96 100 100
Los Angeles County Public
Leasing, RB
5.125%, 09/01/08 1,380 1,335
Los Angeles Department of
Water & Power, RB
9.000%, 10/15/02 2,000 2,432
Modesto Irrigation, RB,
MBIA Insured
5.150%, 10/01/04 2,000 2,028
Mojave Water Agency, G.O.,
FGIC Insured, Callable
09/01/06 @ 102
5.600%, 09/01/12 1,000 990
Oakland Health Facilities
Authority, Childrens
Hospital Project, RB
5.000%, 07/01/01 1,175 1,179
Orange County Transportation
Authority, Sales Tax Revenue,
First Ser-Measure M, RB
5.400%, 02/15/00 1,000 1,020
Orange County, Water District
Project B, COP,
VRDN (A) (B)
3.600%, 09/07/96 200 200
Orange County, COP, MBIA
Insured, Callable 7/1/06 @ 102
5.800%, 07/01/16 1,000 984
Riverside Electric, RB,
Callable 10/01/01 @ 102
6.600%, 10/01/05 1,000 1,069
University of California,
Board of Regents, RB
6.500%, 09/01/02 1,995 2,122
--------
23,045
--------
COLORADO -- 2.6%
Colorado Health Facilities
Authority, RB
6.250%, 02/01/04 1,500 1,526
Colorado Student Loan, RB (E)
6.100%, 09/01/02 1,845 1,910
--------
3,436
--------
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
CONNECTICUT -- 0.4%
Connecticut State, Industrial
Development Authority,
Pollution Control Revenue,
Frito-Lay/Pepsi Project, RB
6.375%, 07/01/04 $ 560 $ 571
--------
DELAWARE -- 0.4%
Wilmington Hospital, VRDN,
RB (A) (E)
3.700%, 09/07/96 500 500
--------
DISTRICT OF COLUMBIA -- 3.3%
District of Columbia Hospital
Revenue, Washington Hospital
Center, RB, MBIA Insured,
Callable 08/05/02 @ 102
7.000%, 08/15/05 1,500 1,646
District of Columbia, Ser A, G.O.
5.125%, 06/01/99 1,000 990
District of Columbia, Ser A-3, G.O.
4.250%, 06/01/97 1,790 1,776
--------
4,412
--------
FLORIDA -- 3.8%
Florida Housing Finance
Authority, Capital Appreciation,
Single Family Mortgage, RB
5.500%, 07/15/16 2,000 215
Florida State Finance Department,
Environmental-Preservation
Department, RB, AMBAC Insured,
Callable 07/01/05 @ 101
5.500%, 07/01/07 1,000 1,019
Hillsborough County Utility
Authority, RB, MBIA Insured (D)
9.750%, 12/01/03 1,425 1,733
Orlando & Orange County
Expressway Authority, Florida
Expressway Revenue, Linked
Security, RB, FGIC Insured
5.097%, 07/01/04 2,200 2,181
--------
5,148
--------
GEORGIA -- 0.9%
Gwinette County, G.O.,
9.500%, 02/01/02 1,000 1,200
--------
IDAHO -- 0.1%
Power County, Pollution Control
Revenue, FMC Corporation
Project, VRDN, RB (A) (E)
3.850%, 09/07/96 100 100
--------
35
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
SEI TAX EXEMPT TRUST -- AUGUST 31, 1996
INTERMEDIATE-TERM MUNICIPAL--CONTINUED
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
ILLINOIS -- 9.0%
Chicago Equipment Notes,
G.O., AMBAC Insured
5.600%, 01/01/06 $ 2,000 $ 2,035
Cook County, G.O., MBIA Insured
7.250%, 11/01/07 2,000 2,277
Illinois Hospital Facilities,
Metropolitan Pier & State
Exposition Authority, McCormick
Plaza Convention, RB
6.250%, 07/01/17 450 435
Illinois Housing Development
Authority RB,
Callable 2/1/06 @ 102
5.650%, 02/01/16 1,390 1,366
Illinois State Health Facility
Authority, RB, MBIA Insured
7.900%, 08/15/03 597 617
Illinois State, G.O., Callable
08/01/99 @ 102
6.375%, 08/01/00 1,000 1,051
Kane & DeKalb County, Unified
School District #301, G.O.,
AMBAC Insured
6.300%, 12/01/04 2,640 2,871
McClean County Public Building
Commission, Lease Receipts,
Law & Justice Center, G.O.
7.300%, 11/01/02 1,280 1,434
--------
12,086
--------
INDIANA -- 1.3%
Indiana State Health Facilities, RB
7.100%, 09/01/00 1,555 1,691
Rockport Pollution Control
Revenue, Aep Generating
Company, Project B, VRDN,
RB, AMBAC Insured (A)
3.850%, 09/07/96 100 100
--------
1,791
--------
KENTUCKY -- 1.2%
Kentucky State Turnpike Authority,
Ser A, RB
8.500%, 07/01/04 410 424
Kentucky State Turnpike Authority,
TRAN, AMBAC Insured
5.500%, 07/01/06 1,200 1,225
--------
1,649
--------
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
LOUISIANA -- 1.8%
Louisiana State Housing Finance
Agency, RB, MBIA Insured
5.125%, 12/01/10 $ 500 $ 491
Louisiana State Recovery District
Sales Tax, RB, FGIC Insured,
VRDN (A)
3.850%, 09/01/96 400 400
Louisiana State Ser A, G.O.,
Callable 08/01/97 @ 102
7.000%, 08/01/02 1,500 1,568
--------
2,459
--------
MASSACHUSETTS -- 13.2%
Commonwealth of Massachusetts
VRDN, RB (A) (B)
3.650%, 09/07/96 1,800 1,800
Holyoke G.O.
5.500%, 06/15/03 1,640 1,679
Lowell, G.O., FSA Insured,
Callable 02/15/01 @ 103
8.300%, 02/15/05 1,855 2,124
Massachusetts State Health &
Education Facilities Authority, RB
5.500%, 07/01/01 1,325 1,307
Massachusetts Bay
Transportation Authority,
RB,Callable 3/1/06 @ 101
5.625%, 03/01/26 2,000 1,882
Massachusetts Bay Transportation
Authority, General
Transportation System, G.O.
7.000%, 03/01/07 3,000 3,405
Massachusetts Municipal
Wholesale Electric Company,
Ser A, RB, Mandatory
Redemption @100 (B)
8.750%, 07/01/98 5 5
8.750%, 01/01/99 5 5
8.750%, 07/01/99 5 5
8.750%, 07/01/00 5 6
8.750%, 01/01/02 5 6
8.750%, 07/01/02 5 6
8.750%, 01/01/03 5 6
8.750%, 07/01/03 5 6
8.750%, 01/01/04 5 6
8.750%, 07/01/04 10 12
8.750%, 07/01/05 5 6
Massachusetts Single Family
Housing, Ser 14, RB,
Callable 06/01/00 @ 102
7.600%, 12/01/14 1,000 1,071
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
36
<PAGE>
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Massachusetts State, G.O., Ser B
6.250%, 07/01/02 $ 1,155 $ 1,236
Massachusetts State Water
Resource Authority, Ser B, RB
5.250%, 03/01/13 1,000 926
New England Education Loan
Marketing, RB
5.800%, 03/01/02 1,175 1,212
Springfield G.O., AMBAC Insured
6.375%, 08/01/04 1,000 1,079
--------
17,790
--------
MICHIGAN -- 1.2%
Greater Detroit Resource
Recovery, RB, AMBAC Insured
5.500%, 12/13/03 1,525 1,563
--------
MISSISSIPPI -- 1.2%
Mississippi State Capital
Improvement, Ser A, G.O.,
Callable 08/01/03 @ 100
5.100%, 08/01/07 1,685 1,658
--------
NEW MEXICO -- 1.7%
New Mexico Mortgage Finance
Authority, Single Family
Mortgage, RB
Callable 07/01/02 @ 102 (E)
6.850%, 07/01/10 1,325 1,378
Santa Fe, Saint Vincent's Hospital
Project, RB, FGIC Insured,
Pre-Refunded @ 100 (C)
7.500%, 07/01/02 785 888
--------
2,266
--------
NEW YORK -- 6.7%
New York State Dormitory
Authority, RB,
Callable 5/15/03 @ 102,
6.000%, 05/15/22 1,200 1,156
New York State Dormitory
Authority, Rosewell Park, RB
5.500%, 07/01/03 1,000 996
New York State Local Government
Assistance, G.O., Callable
4/01/02 @ 100
5.500%, 04/01/22 1,500 1,395
New York State Medical Care
Facility Finance Agency,
Adult Day Care, RB
5.350%, 11/15/05 825 819
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
New York State Medical Care
Facility Finance Agency,
Ser C, RB, FHA Insured
5.200%, 08/15/05 $ 615 $ 620
New York State Urban
Development Authority,
Correctional Facilities, Ser G, RB,
Callable 01/01/00 @ 102
7.100%, 01/01/03 2,500 2,669
New York State Urban
Development, G.O.
6.250%, 01/01/09 1,325 1,352
--------
9,007
--------
OHIO -- 0.6%
Hamilton County
Health System, RB, VRDN (A)
3.750%, 09/07/96 800 800
--------
OKLAHOMA -- 3.0%
Central Oklahoma Transportation
& Parking Authority, RB (D)
6.000%, 07/01/03 170 173
McAlester Public Works Authority,
RB, FSA Insured
8.100%, 12/01/08 875 1,049
Oklahoma State Industrial
Development Authority, Integris
Health, RB, AMBAC Insured
5.250%, 08/15/06 1,255 1,236
Tulsa Industrial Development
Authority, St Johns Medical
Center, RB (D)
6.875%, 01/01/02 500 536
Tulsa Port Industrial
Development, RB
5.350%, 09/01/06 1,000 995
--------
3,989
--------
PENNSYLVANIA -- 2.1%
Easton Joint School
Authority, RB (D)
5.350%, 04/15/02 290 298
Pennsylvania State Health
Services Allegheny/Delaware
Valley, RB, MBIA Insured
5.500%, 11/15/08 2,000 2,000
Westmoreland County Municipal
Authority, Special Obligation (D)
9.125%, 07/01/10 500 594
--------
2,892
--------
37
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
SEI TAX EXEMPT TRUST -- AUGUST 31, 1996
INTERMEDIATE-TERM MUNICIPAL--CONCLUDED
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
SOUTH CAROLINA -- 1.8%
South Carolina Jobs Economic
Development Authority,
St. Francis Hospital, VRDN (A)
3.700%, 09/07/96 $ 100 $ 100
South Carolina Public Service
Authority, Electric Improvement
Revenue, Ser B, RB,
Callable 07/01/01 @ 102
6.700%, 07/01/02 1,220 1,318
Spartanburg County, School
District #5, COP, MBIA Insured
5.400%, 07/01/08 1,000 970
--------
2,388
--------
SOUTH DAKOTA -- 1.7%
South Dakota Health & Educational
Facilities Authority, RB MBIA
Insured Callable 7/1/06 @ 102
6.000%, 07/01/08 1,025 1,066
South Dakota Housing Authority,
Ser A, RB
5.500%, 05/01/10 1,000 1,002
South Dakota Student Loan
Assistance Corporation, Ser A, RB
7.000%, 08/01/98 180 185
--------
2,253
--------
TEXAS -- 10.0%
Austin Independent School
District, RB (D)
9.000%, 07/01/99 645 721
Austin Utility Systems, Ser 92-B,
RB, Callable 11/15/98 @ 102
7.250%, 11/15/03 1,175 1,251
7.750%, 11/15/08 600 654
Fort Worth Water & Sewer
Authority, RB
5.250%, 02/15/06 1,360 1,362
Harris County, G.O.
10.000%, 10/01/00 1,850 2,204
7.000%, 10/01/01 2,000 2,197
Lone Star Airport Improvement
Authority, VRDN, RB (A) (E)
3.700%, 09/07/96 700 700
Plano, G.O.
5.625%, 09/01/06 1,020 1,056
Texas Municipal Power Agency,
RB, MBIA Insured
5.500%, 09/01/10 1,000 994
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Texas State Water Development
Board State Revolving Funds --
Senior Lien
5.250%, 07/15/17 $ 2,500 $ 2,316
--------
13,455
--------
UTAH -- 0.9%
Salt Lake City Airport, RB,
FGIC Insured
7.400%, 06/01/00 1,100 1,154
--------
VIRGINIA -- 0.5%
Virginia Housing, Multi-Family
Housing, RB
5.250%, 05/01/03 685 694
--------
WASHINGTON -- 3.8%
Clark County, Public Utility
District # 001, RB, FGIC Insured
6.000%, 01/01/04 2,525 2,645
Grant County, Public Utility
District #2, RB
5.625%, 01/01/07 2,470 2,495
--------
5,140
--------
WISCONSIN -- 4.0%
Wisconsin Housing & Economic
Development Authority, Home
Ownership, Ser 1, RB,
FHA Insured, Callable
07/01/02 @ 102
6.600%, 09/01/07 1,300 1,350
Wisconsin Public Power, RB,
Pre-Refunded @ 102,
AMBAC Insured (C)
6.875%, 07/01/01 2,000 2,210
Wisconsin State, Clean Water
Revenue, Ser 1, RB
6.875%, 06/01/11 1,640 1,833
--------
5,393
--------
WYOMING -- 0.8%
Wyoming Student Loan
Corporation, RB
6.250%, 12/01/99 1,000 1,035
--------
Total Municipal Bonds
(Cost $134,570) 134,401
--------
Total Investments -- 99.9%
(Cost $134,570) 134,401
--------
OTHER ASSETS AND LIABILITIES, NET -- 0.1% 162
--------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
38
<PAGE>
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares of Class A (unlimited
authorization -- no par value) based
on 12,870,920 outstanding shares of
beneficial interest $135,894
Undistributed Net Investment Income 2
Accumulated Net Realized Loss
on Investments (1,164)
Net Unrealized Depreciation on Investments (169)
--------
Total Net Assets--100.0% $134,563
========
Net Asset Value, Offering Price and
Redemption Price Per Share-- Class A $ 10.45
========
AMBAC AMERICAN MUNICIPAL BOND ASSURANCE CORPORATION
COP CERTIFICATE OF PARTICIPATION
FGIC FINANCIAL GUARANTY INSURANCE CORPORATION
FHA FEDERAL HOUSING AGENCY
FSA FINANCIAL SECURITY ASSURANCE
GO GENERAL OBLIGATION
MBIA MUNICIPAL BOND INVESTORS ASSURANCE
RB REVENUE BOND
SER SERIES
TRAN TAX & REVENUE ANTICIPATION NOTE
VRDN VARIABLE RATE DEMAND NOTE
(A) FLOATING RATE SECURITY--THE RATE REFLECTED ON THE STATEMENT OF
NET ASSETS IS THE RATE IN EFFECT ON AUGUST 31, 1996.
(B) MANDATORY REDEMPTION--THE MATURITY DATE REPORTED ON THE
STATEMENT OF NET ASSETS IS THE MANDATORY REDEMPTION DATE.
(C) PRE-REFUNDED SECURITY--THE MATURITY DATE REPORTED ON THE STATEMENT
OF NET ASSETS IS THE PRE-REFUNDED DATE.
(D) SECURITY IS ESCROWED TO MATURITY
(E) SECURITY IS HELD IN CONJUNCTION WITH A LETTER OF CREDIT FROM A MAJOR
COMMERCIAL BANK OR FINANCIAL INSTITUTION.
PENNSYLVANIA MUNICIPAL PORTFOLIO
MUNICIPAL BONDS -- 99.0%
PENNSYLVANIA -- 99.0%
Allegheny County Hospital
Development Authority,
Allegheny General
Hospital, RB (C)
6.750%, 05/01/04 $ 10 $ 10
Allegheny County Redevelopment
Authority, Home Improvement, RB
6.700%, 08/01/99 485 500
Allegheny County Hospital
Development Authority,
Allegheny General, RB (C)
7.250%, 07/01/03 185 194
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Allegheny County Hospital
Development Authority, Children's
Hospital of Pittsburgh, Ser 91,
RB, MBIA Insured
6.600%, 07/01/01 $1,000 $1,064
Allegheny County Hospital
Development Authority, Magee
Women's Hospital, Ser 93,
RB, FGIC Insured
5.200%, 10/01/05 1,000 1,000
Allegheny County Hospital
Development Authority, Mercy
Hospital of Pittsburgh, AMT
RB, BIGI Insured
6.875%, 10/01/99 1,000 1,022
Allegheny County Hospital
Development Authority,
Montefiore Hospital, RB (C)
6.875%, 07/01/09 520 555
Allegheny County Hospital
Development Authority,
St. Margaret Memorial
Hospital, RB (C)
6.750%, 07/01/10 475 510
Allegheny County Industrial
Development Authority, Home
Improvement Project, RB
6.700%, 02/01/99 800 822
Allegheny County Industrial
Development Authority, RB, AMT (B)
6.000%, 10/01/04 150 150
Allentown Hospital Authority,
Sacred Heart Project, RB (C)
8.000%, 03/01/09 105 120
Allentown Hospital Authority,
Sacred Heart Hospital of
Allentown, Ser A, RB
6.500%, 11/15/08 1,200 1,211
Altoona Area School District
Authority, Blair County,
Pennsylvania School Revenue,
Ser 78, RB, Pre-Refunded @ 100 (A)
6.500%, 07/01/06 155 165
Altoona School District, RB (C)
6.250%, 01/01/03 10 10
Baldwin Whitehall School
Building Revenue, RB (C)
6.625%, 11/15/02 105 110
Beaver County Housing Authority,
First Mortgage Guaranteed,
Section 8, RB, MBIA Insured,
Callable 03/19/97 @ 100
7.875%, 07/01/99 345 343
39
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
SEI TAX EXEMPT TRUST -- AUGUST 31, 1996
PENNSYLVANIA MUNICIPAL PORTFOLIO--CONTINUED
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Bensalem Township Water &
Sewer Authority, RB (C)
6.750%, 12/01/14 $ 75 $ 84
Blair County Hospital
Authority, RB (C)
6.900%, 07/01/08 570 602
Borough of Tarentum, Pennsylvania
Guaranteed Electric Revenue
Bond, Ser 93-A, RB, Asset
Guaranty Insured
5.500%, 09/01/08 645 630
Bucks County Industrial
Development Authority,
Grandview Hospital, Ser 91,
RB, AMBAC Insured (C)
6.600%, 07/01/01 250 269
Bucks County Redevelopment
Authority, Mortgage Revenue,
Warminster Heights, Section 8-A,
Ser 92-A, RB, FHA Insured,
Callable 02/01/02 @ 100
6.250%, 08/01/02 315 325
Bucks County Redevelopment
Authority, Mortgage Revenue,
Warminster Heights, Section 8,
Ser 92-A, RB, FHA Insured
5.750%, 08/01/97 50 50
Bucks County Industrial
Development Authority
Revenue, RB (C)
8.750%, 09/01/04 15 17
Butler Area Sewer Authority, RB,
Pre-Refunded @ 100 (A)
7.250%, 01/01/04 75 83
Cambria County Hospital
Authority, Conemaugh Valley
Memorial Hospital, RB (C)
7.625%, 09/01/11 235 275
Chartiers Valley Industrial
Development Authority, Colonial
Building, RB, Mandatory
Put 12/01/97 @ 100 (B) (D)
5.625%, 12/01/97 690 691
Chester County Hospital
Authority, Paoli Memorial
Hospital, RB (C)
5.500%, 02/01/03 105 104
Chester County, Pennsylvania
Health & Education Authority,
RB, Ser 96-B, (B) (D)
4.900%, 08/01/99 2,575 2,575
City of Aliquippa, Beaver County,
RB, Asset Guaranty Insured
8.250%, 09/15/01 1,220 1,295
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Cresswell Heights, Joint Water
Authority Revenue, RB (C)
7.375%, 03/01/07 $ 95 $ 103
Dauphin County General
School Authority, RB,
Mandatory Put 06/01/98 @100
6.000%, 06/01/26 50 49
Dauphin County General School
Authority, G.O., Mandatory
Put 06/01/04 @ 100 (D)
6.700%, 06/01/04 1,220 1,299
Dauphin County General
Authority, Phoenixville Hospital,
Hapsco Group Incorporated,
Ser 92-A, RB, FGIC Insured
5.900%, 07/01/05 845 882
Dauphin County General School
Authority, Penncrest School
Project, RB, Mandatory
Put 06/01/03 @ 100 (D)
6.600%, 06/01/26 915 974
Delaware County Authority,
Villanova University, RB (C)
9.625%, 08/01/02 165 187
Delaware County Hospital
Authority, Chester Crozer, RB (C)
7.250%, 12/15/10 115 123
Delaware County Industrial
Development Authority,
Resource-Recovery Project, RB (B)
8.100%, 12/01/13 405 420
Delaware County, Pennsylvania
Industrial Development Authority,
Resource Recovery Project,
Ser A, RB, Callable
12/01/96 @ 103.50 (C)
7.900%, 12/01/05 25 26
Delaware County, Pennsylvania
Industrial Development Authority,
Resource Recovery Project,
Ser A, RB, Callable
12/01/96 @ 103.50 (C)
7.650%, 12/01/01 20 21
Delaware River Port Authority, RB (C)
6.000%, 01/15/10 90 92
Delaware River Port Authority,
PA & NJ River Bridges
Revenue, RB (B) (C)
6.500%, 01/15/11 265 277
Derry Township Sanitation Sewer
Authority, RB (C)
6.250%, 08/01/12 65 67
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
40
<PAGE>
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
East Marlboro Township Sewer
Authority, Guaranteed Sewer
Revenue, RB
5.200%, 12/01/01 $ 55 $ 55
5.300%, 12/01/02 200 198
Economy Municipal Authority,
Sewer Revenue, RB,
Callable 12/15/99 @100
6.000%, 12/15/03 55 56
Erie County Hospital Authority,
RB (C)
6.750%, 07/01/11 320 344
Erie County Hospital Authority,
Hamot Health Systems, RB,
AMBAC Insured
6.700%, 02/15/02 500 539
Fayette County Hospital Authority,
Uniontown Hospital, RB,
Connie Lee Insured
4.850%, 06/15/01 1,000 988
5.000%, 06/15/02 300 296
5.100%, 06/15/03 1,065 1,053
5.200%, 06/15/04 100 98
5.300%, 06/15/05 1,000 984
Fort Le Boeuf School District,
Ser 93-A, G.O., MBIA Insured
5.150%, 01/01/02 500 510
Fox Chapel Sanitation Sewer
Authority, RB
5.900%, 05/01/05 275 274
Franklin Hospital, Pennsylvania
State, Special Obligation, RB (C)
7.125%, 10/01/08 20 21
Greene County Industrial
Development Authority, Pollution
Control Revenue, Monogahela
Power-Hatfield Ferry, Ser A, RB
6.300%, 02/01/02 865 869
Hampton Township, G.O.
6.300%, 06/01/02 775 822
Harrisburg Authority, Lease
Revenue, RB, Cross Over
Pre-Refunded @ 101,
CGIC Insured (A)
6.250%, 06/01/01 1,000 1,059
Hopewell Township, Guaranteed
Sewer Revenue, RB,
Callable 11/01/03 @ 100
5.800%, 11/01/08 815 768
Jefferson County Municipal
Authority Revenue, RB,
MBIA Insured (C)
7.000%, 12/01/02 20 21
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Jersey Shore Area School District,
G.O., MBIA Insured (C)
9.375%, 03/01/03 $ 95 $ 109
Lehigh County Community
College, School Lease, RB
5.750%, 01/15/02 1,285 1,287
Lehigh County Industrial
Development Authority,
Strawbridge Project, RB (C)
7.200%, 12/15/01 1,150 1,235
Lehigh County General Purpose
Authority, Muhlenberg Medical
Center Project, RB (C)
7.000%, 07/01/04 20 21
Luzerne County, Ser 91, G.O.,
FGIC Insured
6.800%, 09/15/02 500 543
Lycoming County Authority,
Hospital Revenue, Williamsport
Hospital, RB, Connie Lee Insured
5.250%, 11/15/06 1,300 1,279
Lycoming County Hospital
Authority, RB (C)
5.750%, 07/01/02 125 125
McCandless Township Sanitation
Authority, Sewer Revenue, RB (C)
6.750%, 11/15/05 85 92
Montgomery County Higher
Education & Health Authority,
Abington Memorial Hospital,
Ser 91-A, RB, AMBAC Insured
6.200%, 06/01/00 800 841
Montgomery County Industrial
Development Authority,
Ecri Project, RB
6.850%, 06/01/13 2,165 2,124
Montgomery County, G.O. (C)
9.000%, 08/15/04 165 185
Moon School District, School
Building Revenue, RB,
MBIA Insured (C)
6.375%, 11/15/98 40 40
Moon Transportation Authority,
Pre-Refunded @100, RB (A) (C)
9.000%, 02/01/98 10 11
Mount Lebanon Hospital
Authority, RB (C)
7.000%, 07/01/06 185 197
Norristown Area School District,
Ser 91, Bank Qualified, G.O.,
Pre-Refunded @ 100 (A)
6.650%, 09/01/01 100 108
41
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
SEI TAX EXEMPT TRUST -- AUGUST 31, 1996
PENNSYLVANIA MUNICIPAL PORTFOLIO--CONTINUED
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Northampton County Industrial
Development Authority,
Moravian Hall Square Project,
Ser A, RB, Asset Guaranty Insured
5.000%, 07/01/05 $ 575 $ 554
5.000%, 07/01/06 560 532
5.250%, 07/01/08 595 566
5.350%, 07/01/10 1,470 1,384
Northeast Allegheny County, RB (C)
6.000%, 05/01/02 60 61
Northeast Hospital Authority, RB (C)
6.375%, 09/01/07 60 61
Northeastern Hospital, Hospital
Revenue Authority, RB (C)
7.000%, 06/01/06 210 223
Pennsylvania Housing Finance
Authority, RB (C)
7.750%, 12/01/07 45 50
Pennsylvania Higher Education
Authority, Ser 95, RB,
Asset Guaranty Insured (C)
4.750%, 09/15/02 270 264
4.850%, 09/15/03 250 244
4.950%, 09/15/04 515 501
5.150%, 09/15/06 345 334
Pennsylvania Higher Education
Facilities Authority,
Commonwealth of Pennsylvania,
Ser E, RB, MBIA Insured
6.450%, 06/15/01 400 428
Pennsylvania Higher Education
Facilities Authority, Hahnemann
University Project, Ser-91, RB,
MBIA Insured
6.400%, 07/01/01 570 611
Pre-Refunded 07/01/01 @ 102 (A)
6.600%, 07/01/01 535 586
Pennsylvania Higher Education
Facilities Authority, Philadelphia
College of Pharmacy, Ser A,
RB, MBIA Insured,
Pre-Refunded @ 101 (A)
6.750%, 09/01/98 500 529
Pennsylvania Housing Finance
Agency, RB, AMT,
Callable 10/01/00 @ 102
7.800%, 10/01/20 100 105
Pennsylvania Housing Finance
Agency, Rental Housing,
Ser 91, RB, Callable 07/01/03
@ 102, FNMA Collateral
5.450%, 07/01/06 2,000 2,010
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Pennsylvania Housing Finance
Agency, Single Family
Mortgage, Ser 92-33, RB
5.700%, 04/01/98 $ 330 $ 332
Pennsylvania State Higher
Education, Philadelphia
College of Textiles & Science,
Ser 96, RB
5.900%, 04/01/02 225 226
6.050%, 04/01/03 240 242
6.150%, 04/01/04 250 252
6.250%, 04/01/05 265 268
6.350%, 04/01/06 285 288
6.450%, 04/01/07 295 299
6.550%, 04/01/08 320 325
6.600%, 04/01/09 340 345
Pennsylvania State Higher
Education Facilities Authority,
College & University Revenue,
Tenth Series, RB (C)
6.900%, 07/01/07 75 80
Pennsylvania State Higher
Education Facilities, Drexel
University, RB,
6.375%, 05/01/17 1,450 1,434
Pennsylvania State Higher
Education, College &
University, RB (C)
9.375%, 07/01/10 120 145
Pennsylvania State Higher
Education, Student Loan,
Ser A, RB, AMT,
AMBAC Insured
7.050%, 10/01/16 3,500 3,645
Pennsylvania State Higher
Education, Student Loan,
Ser C, RB, AMT,
AMBAC Insured
7.150%, 09/01/21 500 522
Pennsylvania State Housing
Finance Authority, Single
Family Mortgage, Ser N, RB,
Callable 10/01/97 @ 102
7.500%, 10/01/99 200 204
Peters Township School District,
G.O., MBIA Insured,
Callable 11/15/02 @ 100 (C)
0.00%, 11/15/07 100 54
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
42
<PAGE>
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Philadelphia Gas Works Revenue,
Fourteenth Series, RB, FSA Insured,
Callable 07/01/03 @ 102
6.250%, 07/01/08 $ 1,000 $ 1,076
Philadelphia Hospital & Higher
Education Authority, Presbyterian
Medical Center, RB (C)
6.100%, 12/01/03 410 435
Philadelphia Hospital & Higher
Education Facilities, Philadelphia
MR Project, RB
5.500%, 08/01/01 1,175 1,160
Philadelphia Hospital, Graduate
Hospital Project, RB (C)
7.000%, 07/01/10 335 359
Philadelphia Industrial
Development Authority,
Convention Project, PGH
Development Corporation,
Ser 89, RB, AMBAC Insured (C)
7.000%, 07/01/99 885 925
Philadelphia Industrial
Development Authority,
National Board of Medical
Examiners Project, RB,
Callable 05/01/02 @ 102
6.750%, 05/01/12 950 1,008
Philadelphia Municipal Authority,
Justice Lease Revenue, Ser B,
RB, FGIC Insured
6.700%, 11/15/01 1,000 1,088
Philadelphia Municipal Authority,
Services Building Lease Rental
Revenue, Ser 90, RB,
FSA Insured
6.900%, 03/15/99 1,000 1,056
Philadelphia Hospital & Higher
Education Facilities Authority,
St. Agnes Medical Center, RB,
MBIA Insured
4.900%, 07/01/04 820 810
Philadelphia Redevelopment
Authority, Home Improvement
Loan, Ser 95-A, RB, AMT
5.100%, 06/01/01 140 139
5.100%, 12/01/01 110 109
5.250%, 06/01/02 200 198
5.250%, 12/01/02 220 218
5.400%, 06/01/03 160 158
5.400%, 12/01/03 185 183
5.550%, 06/01/04 65 64
5.650%, 12/01/05 70 69
6.100%, 12/01/10 1,000 984
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Philadelphia Redevelopment
Authority, West Philadelphia
Project, RB, FNMA Collateral
6.750%, 05/15/04 $ 765 $ 797
Philadelphia School District,
Ser 91-B, G.O., MBIA Insured
7.000%, 07/01/05 250 276
Philadelphia United Hospitals
Project, RB, Pre-Refunded @ 100 (A)
10.875%, 07/01/05 660 859
Philadelphia Water & Sewer
Authority, Ser 10, RB (C)
7.350%, 09/01/04 5,485 6,150
Pittsburgh Parking Authority,
Ser 92-A, RB, FGIC Insured,
Callable 12/14/04 @ 100
5.750%, 12/01/05 500 518
Pittsburgh, G.O., FGIC Insured
7.000%, 03/01/01 775 800
Pittsburgh Stadium Authority,
Lease Revenue, RB (C)
6.500%, 04/01/11 815 849
Pittsburgh Urban Redevelopment
Authority Mortgage Revenue,
Ser 96-C, RB, AMT
5.700%, 10/01/05 240 239
Pittsburgh Urban Redevelopment
Authority Mortgage Revenue,
Ser 96-D, RB
5.900%, 04/01/08 285 284
5.900%, 10/01/08 290 289
6.000%, 10/01/09 310 310
6.100%, 10/01/10 330 330
Pittsburgh Urban Redevelopment
Authority, Home Improvement
Loans, RB, Callable 08/14/03 @ 100
7.125%, 08/01/04 835 859
Pittsburgh Urban Redevelopment
Authority, Mortgage Revenue,
Ser A, RB, AMT
5.000%, 10/01/02 70 68
5.100%, 10/01/03 70 68
5.750%, 10/01/10 55 53
Pittsburgh Urban Redevelopment
Authority, Ser A, RB, AMT
5.300%, 04/01/05 75 72
5.400%, 04/01/06 80 77
5.400%, 10/01/06 80 76
5.500%, 04/01/07 85 81
5.500%, 10/01/07 85 81
5.600%, 04/01/08 90 86
5.700%, 04/01/09 90 86
5.700%, 10/01/09 95 90
43
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
SEI TAX EXEMPT TRUST -- AUGUST 31, 1996
PENNSYLVANIA MUNICIPAL PORTFOLIO--CONCLUDED
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Pittsburgh Urban Redevelopment
Authority, Ser B, RB,
Callable 04/01/03 @ 100
6.700%, 04/01/10 $ 40 $ 40
Pittsburgh Urban Redevelopment
Authority, Ser B, RB
5.700%, 10/01/11 110 104
Pittsburgh Urban Redevelopment
Center, Triangle Tax Increment,
Ser A, RB (B)
5.125%, 06/01/00 1,175 1,157
5.750%, 12/01/06 1,980 1,896
Pittsburgh Urban Redevelopment
Center, Triangle Tax Increment,
Ser B, RB (B)
5.750%, 03/15/06 1,185 1,138
Pittsburgh, RB, Pre-Refunded
@ 102, FGIC Insured (A)
7.000%, 03/01/97 100 103
Potter County Hospital Authority,
Charles Cole Memorial, RB,
Asset Guaranty Insured
4.750%, 08/01/99 260 258
4.850%, 06/01/00 270 268
5.100%, 08/01/02 290 287
5.200%, 08/01/03 245 242
5.400%, 08/01/04 325 321
5.400%, 08/01/05 320 316
5.500%, 08/01/06 160 157
Pottsville Hospital Authority,
Pottsville Hospital &
Warner Clinic, RB
6.400%, 07/01/03 930 927
Quakertown Pennsylvania
Hospital Authority, Quakertown
Community Hospital, RB (C)
7.125%, 01/01/11 10 11
Sayre Health Facilities Authority,
Guthrie Health Care,
Ser 91-A, RB, AMBAC Insured
6.800%, 03/01/03 1,000 1,086
Scranton Lackawanna Health &
Welfare Authority, Community
Medical Center, RB, FGIC Insured
6.900%, 07/01/98 500 522
7.000%, 07/01/99 250 266
Scranton Lackawanna Health &
Welfare Authority, Moses Taylor
Hospital, RB (C)
6.625%, 07/01/09 485 509
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Scranton Lackawanna Health &
Welfare Authority, RB, BIGI Insured
7.250%, 07/01/99 $ 790 $ 841
Scranton Lackawana Health &
Welfare Allied Services,
Rehabilitation Hospital, RB,
Callable 07/01/04 @ 102
7.125%, 07/15/05 1,500 1,524
Shaler School District, RB (C)
6.250%, 04/15/08 50 52
Shaler Township, G.O. (C)
6.400%, 08/01/01 30 31
South Side Area School
District, Ser 91, G.O.,
AMBAC Insured,
Pre-Refunded @ 100 (A)
6.550%, 04/15/98 260 269
Southeastern Greene
School District, G.O. (C)
9.375%, 07/01/03 60 70
University Area Joint Authority,
Sewer Revenue, Ser 90, RB,
MBIA Insured,
Pre-Refunded @ 101 (A)
7.000%, 09/01/00 750 815
Upper Allegheny Joint Sanitation
Authority, RB, AMBAC Insured (C)
9.000%, 09/01/00 10 11
Washington County Authority,
Municipal Facilities Lease
Revenue, Pooled Capital,
Ser C, Subseries C-1A, RB,
AMBAC Insured,
Pre-Refunded @ 100 (A)
7.000%, 06/15/00 400 435
Washington County Hospital
Authority, Shadyside Hospital
Project, Ser 92, RB,
AMBAC Insured
5.875%, 12/15/04 1,000 1,052
Westmoreland County Industrial
Development Authority, Henry
Clay Frick Hospital, RB
7.000%, 12/01/05 830 832
Westmoreland County Industrial
Development Authority, Hospital
Revenue, Ser 92-A, RB,
AMBAC Insured
5.900%, 07/01/05 595 614
Westmoreland County Industrial
Development Authority,
Hospital Revenue, Ser 99-A,
AMBAC Insured
5.800%, 07/01/04 565 583
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
44
<PAGE>
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Windber Area Authority, Hospital
Revenue, RB, FHA Insured
5.900%, 02/01/10 $ 355 $ 363
Wyoming County Hospital
Authority, RB (C)
7.400%, 01/01/05 45 48
Wyoming County Hospital Authority,
Tyler Memorial, RB (C)
7.400%, 01/01/05 60 63
York County Hospital Authority,
Lutheran Social Services, RB
5.400%, 04/01/04 500 486
5.600%, 04/01/05 500 485
5.800%, 04/01/06 500 484
--------
Total Municipal Bonds
(Cost $96,024) 96,265
--------
Total Investments -- 99.0%
(Cost $96,024) 96,265
--------
OTHER ASSETS AND LIABILITIES, NET-- 1.0% 963
--------
NET ASSETS:
Portfolio Shares of Class A (unlimited
authorization -- no par value) based on
9,275,192 outstanding shares of
beneficial interest 95,265
Undistributed Net Investment Income 1
Accumulated Net Realized Gain
on Investments 1,721
Net Unrealized Appreciation
on Investments 241
--------
Total Net Assets--100.0% $97,228
========
Net Asset Value, Offering Price and
Redemption Price Per Share-- Class A $ 10.48
========
AMBAC AMERICAN MUNICIPAL BOND ASSURANCE CORPORATION
AMT ALTERNATIVE MINIMUM TAX
BIGI BOND INVESTORS GUARANTY INSURANCE CORPORATION
CGIC CAPITAL GUARANTY INSURANCE CORPORATION
FGIC FINANCIAL GUARANTY INSURANCE CORPORATION
FHA FEDERAL HOUSING AGENCY
FNMA FEDERAL NATIONAL MORTGAGE ASSOCIATION
FSA FINANCIAL SECURITY ASSURANCE
GO GENERAL OBLIGATION
MBIA MUNICIPAL BOND INVESTORS ASSURANCE
RB REVENUE BOND
SER SERIES
(A) PRE-REFUNDED SECURITY--THE MATURITY DATE REPORTED ON THE
STATEMENT OF NET ASSETS IS THE PRE-REFUNDED DATE.
(B) SECURITY IS HELD IN CONJUNCTION WITH A LETTER OF CREDIT FROM
A MAJOR COMMERCIAL BANK OR FINANCIAL INSTITUTION.
(C) SECURITY IS ESCROWED TO MATURITY.
(D) PUT AND DEMAND FEATURE -- THE MATURITY DATE REPORTED ON THE STATEMENT
OF NET ASSETS IS THE LESSER OF THE MATURITY DATE OR THE PUT DATE.
KANSAS TAX FREE
INCOME PORTFOLIO
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS -- 98.4%
KANSAS -- 95.9%
Anderson County, USD #365
Garnett, Ser 91, G.O.,
AMBAC Insured
6.400%, 09/01/05 $ 250 $ 263
6.500%, 09/01/06 250 264
Arkansas City, G.O.
3.800%, 12/01/99 285 271
Belleville Electric & Gas,
Ser A, RB
5.000%, 12/01/98 150 151
5.500%, 12/01/02 175 180
5.700%, 12/01/04 150 155
Bourbon County, G.O.
5.500%, 09/01/09 195 194
Bourbon County, USD # 234,
Fort Scott , Ser B, G.O.
5.625%, 09/01/11 285 280
Bourbon County, USD # 234,
G.O., Callable 09/01/06 @ 100
5.600%, 09/01/10 215 212
Butler County, Bank Qualified,
G.O., CGIC Insured
4.150%, 10/01/01 250 241
4.300%, 10/01/02 250 241
Chanute Electric Light Water &
Gas, RB, MBIA Insured
Pre-Refunded @ 100 (A)
6.900%, 11/01/05 600 633
Cherokee County, USD #499, G.O.,
AMBAC Insured
5.800%, 10/01/09 200 204
5.900%, 10/01/10 215 220
5.950%, 10/01/11 225 230
Clay County, Clay Center, Ser 92,
Bank Qualified, G.O.
5.300%, 04/01/00 250 255
5.400%, 04/01/01 250 254
Clay County, Ser 94-B, G.O.
6.200%, 10/01/15 250 253
Coffeyville Water and Sewer, Ser 93,
RB, AMBAC Insured
4.600%, 10/01/04 465 446
4.700%, 10/01/05 490 469
Coffeyville, COP
5.875%, 10/01/14 250 250
Cowley County, USD #470, G.O.,
Callable 12/01/06 @ 100
5.450%, 12/01/12 500 493
Cowley County, USD #465 School
Improvement Bonds, Winfields,
Ser 91, G.O.
6.000%, 11/01/97 250 255
45
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
SEI TAX EXEMPT TRUST -- AUGUST 31, 1996
KANSAS TAX FREE INCOME PORTFOLIO--CONTINUED
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Decatur County, Ser 92, Bank
Qualified, G.O.
6.000%, 09/01/01 $ 250 $ 260
Dickinson County, Abilene School
District, Ser 92, Bank
Qualified, G.O.
5.400%, 04/01/01 265 267
5.600%, 04/01/03 300 300
Dodge City, Pollution Control
Revenue, Excel Project, RB
6.625%, 05/01/05 700 760
Dodge, USD #443, Ford County,
G.O., CGIC Insured
4.700%, 03/01/07 180 167
4.800%, 03/01/08 360 337
5.000%, 03/01/14 250 228
Douglas County, USD #497,
Ser 93-A, G.O.
4.500%, 09/01/02 250 246
Douglas County, USD #497,
Ser A, G.O.
5.400%, 09/01/15 600 574
Emporia Sewer System, Ser 90,
RB, Pre-Refunded @ 100.50 (A)
7.100%, 06/01/04 300 316
Emporia, Ser B, G.O.
5.150%, 09/01/00 155 158
5.250%, 09/01/01 165 170
6.000%, 09/01/06 175 182
Finney County, Garden City
Project, Ser 91, G.O.
5.700%, 10/01/98 500 505
Finney County, USD #457, G.O.
5.500%, 10/01/99 185 190
5.550%, 10/01/00 250 258
Ford County, Single Family
Mortgage Ser A, RB
7.900%, 08/01/10 325 341
Garden City, Ser B, G.O.,
MBIA Insured
4.900%, 11/01/99 250 254
5.450%, 11/01/04 250 259
Garden City, Water & Sewer, RB
6.500%, 11/01/00 125 134
6.750%, 11/01/03 125 134
Gardner County, G.O.
5.300%, 09/01/11 330 323
Gardner Electric Utility, Ser 92, RB
7.000%, 11/01/09 500 523
Gove County, G.O., AMBAC Insured,
Callable 10/01/01 @ 101
5.150%, 04/01/12 560 523
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Gray County,USD #102, G.O.
6.000%, 09/01/04 $ 100 $ 104
6.200%, 09/01/06 125 131
6.800%, 09/01/15 250 261
Great Bend, Ser B, G.O., FGIC Insured
5.900%, 09/01/98 250 250
Great Bend, Ser B, G.O.,
Pre-Refunded @ 100 (A)
6.300%, 09/01/02 250 250
Halstead Hospital, Active
Sinking Fund, RB
6.750%, 10/01/06 255 274
Hays, Ser A, G.O., FGIC Insured,
Callable 09/01/03 @ 100
5.150%, 09/01/09 250 241
5.250%, 09/01/10 250 246
Hays, Internal Improvement,
Ser A, G.O.
5.200%, 09/01/01 105 108
5.300%, 09/01/02 110 112
5.500%, 09/01/04 120 122
Hays, Water & Sewer, Ser 92,
Bank Qualified, RB,
AMBAC Insured
5.600%, 09/01/99 100 103
5.800%, 09/01/00 100 104
6.200%, 09/01/03 100 106
6.400%, 09/01/05 180 191
Hayes Water & Sewer System, RB
5.200%, 09/01/11 260 247
Holton, Electrical Systems,
Ser 92-A, RB
6.400%, 12/01/06 150 161
6.500%, 12/01/07 150 161
Hutchinson, Ser A, RB
5.450%, 10/01/14 125 121
5.500%, 10/01/15 135 130
Hutchinson, Single Family
Mortgage, Ser 92, RB
6.500%, 12/01/09 175 182
Hutchinson, Water & Sewer,
Ser 93, RB, AMBAC Insured
6.850%, 12/01/05 150 168
5.000%, 12/01/11 225 210
Jackson County, Holton School
Boards USD #336, Ser 92,
Bank Qualified, G.O.
6.200%, 10/01/07 205 219
6.300%, 10/01/08 125 134
Jefferson County, USD #340,
G.O., CGIC Insured
6.000%, 09/01/06 300 317
6.100%, 09/01/07 320 338
6.200%, 09/01/08 330 348
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
46
<PAGE>
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Johnson County, Blue Valley
Recreation Commission,
COP, Ser 91, G.O.
6.000%, 10/01/97 $ 250 $ 253
Johnson County, G.O.
6.800%, 09/01/99 1,000 1,068
Johnson County, Internal
Improvement, Ser A, G.O.
5.600%, 09/01/03 200 209
Johnson County, USD #229
Blue Valley, Ser A, G.O.,
Pre-Refunded @ 100 (A)
6.500%, 10/01/12 300 323
Johnson County, USD #233
Olathe, Ser 89-B, G.O.,
Pre-Refunded @ 100 (A)
7.000%, 03/01/03 500 534
7.000%, 09/01/03 500 534
Johnson County, USD #233,
G.O., AMBAC Insured
5.950%, 09/01/05 500 524
Johnson County, Water
District #001, Ser 90-A, RB
6.800%, 06/01/99 250 264
6.900%, 12/01/00 250 272
5.125%, 12/01/08 250 245
5.250%, 12/01/15 500 463
6.100%, 12/01/16 250 253
Junction City, Industrial
Development, F.W. Woolworth, RB
7.250%, 11/01/98 190 191
Junction City, Ser 00, Bank
Qualified, G.O., AMBAC Insured
6.200%, 09/01/06 515 534
Junction City, Water, Ser A, RB
4.900%, 04/01/01 205 206
4.900%, 10/01/01 210 211
Kansas City, Community
College Center, G.O., MBIA Insured
6.000%, 05/15/10 205 216
6.125%, 05/15/11 215 228
6.125%, 05/15/12 230 244
Kansas City, Improvement Project,
Ser B, MBIA Insured
5.375%, 09/01/10 1,500 1,487
Kansas City, Sisters of Charity
Health Hospital, RB
4.850%, 08/01/97 250 251
Kansas City, Special Obligation (B)
5.500%, 02/15/99 500 514
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Kansas Rural Water Finance
Authority, Revenue District # 13,
Ser F, RB, Callable 06/01/01 @ 100
5.900%, 06/01/11 $ 400 $ 403
Kansas Water Pollution Control
Callable 05/01/03 @ 102
5.750%, 05/01/14 370 375
Kansas State Department of
Transportation Highway, RB
5.000%, 03/01/04 250 252
Kansas State Department of
Transportation Highway, Ser 92,
RB, Pre-Refunded @ 102 (A)
6.125%, 03/01/03 500 536
6.500%, 03/01/08 750 818
Kansas State Development
Finance Authority, RB
Callable 05/01/04 @ 101
5.200%, 05/01/07 120 121
5.400%, 05/01/09 135 136
5.450%, 05/01/10 100 101
5.500%, 05/01/11 100 101
5.550%, 05/01/12 100 101
Kansas State Development
Finance Authority, Storemont
Vail Health Care, Ser F, RB,
MBIA Insured
5.800%, 11/15/16 500 491
Kansas State Development Finance
Authority, Storemont Vail Health
Care, Ser G, RB, MBIA Insured
5.750%, 11/15/10 500 500
Kansas State Development Finance
Authority, Department of
Corrections El Dorado Project L,
RB, MBIA Insured
5.625%, 02/01/03 250 255
Kansas State Development Finance
Authority, Kansas Board Regents
Wichita, RB, AMBAC Insured
5.125%, 06/01/06 250 247
Kansas State Development Finance
Authority, Water Pollution
Control, G.O.
4.450%, 05/01/01 355 358
Kansas State Pollution Control, RB
5.450%, 04/01/06 500 499
Kingman, Electric Utility &
Distribution System, RB
5.500%, 09/01/08 250 243
Kingman, Water & Sewer, Utility &
Distribution System, RB
6.125%, 09/01/15 250 255
47
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
SEI TAX EXEMPT TRUST -- AUGUST 31, 1996
KANSAS TAX FREE INCOME PORTFOLIO--CONTINUED
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Lawrence Hospital, RB
4.850%, 07/01/97 $ 250 $ 250
Lawrence Water & Sewer
System, RB
5.300%, 11/01/07 315 313
5.700%, 11/01/11 395 392
Lawrence, G.O.
5.100%, 09/01/01 220 223
Lawrence, Ser 91-L, G.O.
5.600%, 09/01/98 175 180
Leavenworth County, USD #449,
Ser A, Bank Qualified, G.O.
6.300%, 09/01/09 150 152
6.400%, 09/01/10 160 163
6.500%, 09/01/12 125 128
6.500%, 09/01/13 100 102
Leavenworth, Ser 91-A,
Bank Qualified, G.O.
5.700%, 09/01/97 160 160
Leavenworth, Ser B, G.O.
5.050%, 09/01/00 210 212
Leawood, Ser 92-A, G.O.
5.000%, 09/01/00 300 305
5.200%, 09/01/01 250 255
6.000%, 09/01/08 135 141
Leawood, Unlimited Tax, Ser B, G.O.
5.000%, 09/01/10 400 377
Lindsborg Electric & Waterworks
System, Callable 10/01/05 @ 100
5.300%, 10/01/07 105 105
5.600%, 10/01/09 120 120
Lindsborg Electric & Waterworks
System, RB
5.000%, 10/01/05 100 100
Lindsborg Temp Nts. Ser A, G.O.
Callable 06/01/97 @ 100
4.750%, 06/01/98 280 280
Lyon County, Hospital Revenue,
Ser 94, RB
5.200%, 02/01/02 115 111
5.200%, 08/01/02 250 240
5.300%, 02/01/03 100 96
Lyon County, USD #253 Emponia, RB
6.250%, 10/01/08 250 262
Manhattan, Unlimited Tax,
Ser 89, G.O.
5.850%, 11/01/02 250 262
6.300%, 11/01/11 100 103
6.300%, 11/01/12 105 109
Marion County, USD #411, RB
5.300%, 04/01/13 660 629
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
McPherson County, USD #400
Smoky Valley, G.O., FGIC Insured,
Callable 12/01/05 @ 100
5.200%, 12/01/10 $ 250 $ 243
5.250%, 12/01/12 250 241
McPherson, Electric Utility, RB,
AMBAC Insured
5.550%, 03/01/09 550 548
McPherson, Electric Utility-Capital
Appreciation, RB, AMBAC Insured
0.000%, 03/01/10 520 209
McPherson, Refunding &
Improvement, Ser 115, G.O.
5.000%, 11/01/06 500 488
Meade Industrial Development,
Dekalb Agresearch Project, RB
6.500%, 10/01/06 1,000 1,103
Miami County, USD #367, Ser A, G.O.
5.850%, 09/01/13 550 558
Miami County, USD #368 Paola,
Ser 92, G.O., AMBAC Insured
6.500%, 12/01/05 500 533
Miami County, USD #416 Louisburg,
Ser 92, G.O., AMBAC Insured
6.000%, 09/01/02 250 261
Nemaha County, USD #441,
Ser 92, G.O., AMBAC Insured
5.400%, 03/01/02 250 254
5.750%, 03/01/07 250 254
Neosho County, USD #413, G.O.
5.650%, 09/01/01 260 270
Newton, Waste Water Treatment
System, Ser 92, Bank
Qualified, RB
5.750%, 03/01/99 110 113
6.000%, 03/01/00 115 119
6.200%, 03/01/01 120 126
6.400%, 03/01/02 130 138
Olathe & Labette County, GNMA
Collateral Mortgage, Senior
Ser 91-B, RB
7.150%, 02/01/15 55 58
Olathe, Multi-Family Housing,
Deerfield Apartments,
Ser 94-A, RB
5.500%, 06/01/04 435 443
Olathe, Sewer Improvement,
Ser 84, G.O.
4.600%, 10/01/99 275 276
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
48
<PAGE>
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Osborne, Ser 92, Bank
Qualified, G.O.
5.500%, 12/01/01 $ 135 $ 137
5.600%, 12/01/02 140 141
5.700%, 12/01/03 150 151
5.800%, 12/01/04 155 156
Ottawa, Waterworks & Electric
Systems, Ser 91, RB,
MBIA Insured
6.150%, 12/01/00 250 264
6.250%, 12/01/01 250 267
Pawnee County, G.O., CGIC Insured
5.100%, 09/01/04 255 257
Phillip County, USD #325, G.O.
5.200%, 09/01/03 100 102
5.600%, 09/01/07 155 158
Pittsburg, Water & Sewer
Systems, Ser 91-A, RB
6.400%, 09/01/03 105 111
6.500%, 09/01/04 110 116
Pottawatomie County, USD #320
Wamego, Ser 90, G.O.,
AMBAC Insured
6.600%, 10/01/02 500 539
Pratt, Electrical System, Ser 92,
RB, AMBAC Insured
6.600%, 11/01/07 250 276
6.000%, 11/01/12 250 254
Reno County, G.O.
6.250%, 08/01/00 685 706
Reno County, Single Family
Mortgage, Ser B, RB,
Callable 09/01/01 @ 103
8.700%, 09/01/11 205 219
Riley County Hospital, Ser A, RB
4.750%, 09/01/98 110 110
5.000%, 09/01/99 165 165
5.150%, 09/01/00 100 100
Riley County, Ser 92,
Bank Qualified, G.O.
5.000%, 11/01/98 335 338
Riley County, Ser B, G.O.
6.100%, 09/01/06 110 116
6.200%, 09/01/07 110 117
6.300%, 09/01/08 110 117
6.400%, 09/01/09 110 117
Salina County, Sales Tax, RB
3.700%, 12/01/96 100 100
Salina, Internal Improvement
Bonds, Ser P-240, G.O.
4.900%, 10/01/96 125 125
5.500%, 10/01/99 100 103
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000
- --------------------------------------------------------------------------------
Salina, Water & Sewer, RB,
MBIA Insured
5.000%, 09/01/07 $ 330 $ 315
Salina, Water & Sewer, RB
6.700%, 10/01/99 250 257
6.750%, 10/01/00 250 256
6.850%, 10/01/02 250 256
Scott City, Water System, Ser A,
Bank Qualified, G.O.
5.250%, 09/01/04 130 129
5.400%, 09/01/05 140 139
5.600%, 09/01/06 140 139
5.700%, 09/01/07 150 150
5.800%, 09/01/08 145 145
Scott County, USD #466, Ser 93, G.O.
5.375%, 09/01/06 685 676
Sedgwick & Shawnee County,
GNMA Collateral Mortgage,
Senior Ser 91-A, RB
7.300%, 12/01/12 610 640
Sedgwick & Shawnee County,
Single Family Housing, RB
8.050%, 05/01/14 440 489
Sedgwick & Shawnee County,
Single Family Mortgage, RB,
Callable 11/01/04 @ 103
7.800%, 05/01/14 185 200
Sedgwick & Shawnee County,
Single Family Mortgage, RB
5.250%, 11/01/04 145 147
Sedgwick County, Airport Facilities,
Beech Aircraft, Ser 93, RB
5.625%, 03/01/99 1,000 1,026
Sedgwick County, Ser B, G.O.
4.050%, 08/01/98 250 249
Sedgwick County, USD #262,
Valley Center, G.O.
0.000%, 11/01/98 100 91
Sedgwick Temp Notes, Ser B,
G.O. Callable 06/01/97 @ 100
4.750%, 06/15/98 250 250
Seward County, Ser B, G.O.,
AMBAC Insured
6.000%, 08/15/08 250 254
6.000%, 08/15/13 250 254
Seward County, Single Family
Mortgage, Ser B, RB
8.000%, 05/01/11 395 420
Seward County, USD# 480, RB,
Ser 92, MBIA Insured
5.000%, 12/01/00 500 503
49
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
SEI TAX EXEMPT TRUST -- AUGUST 31, 1996
KANSAS TAX FREE INCOME PORTFOLIO--CONCLUDED
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Shawnee County, Ser B, G.O.,
Callable 09/01/03 @100
5.500%, 09/01/09 $ 250 $ 250
5.500%, 09/01/11 250 248
Shawnee County, Health Care
Facilities, G.O., Callable
08/15/05 @ 100
5.150%, 08/15/10 500 472
Shawnee County, Ser 92-C, G.O.
5.600%, 09/01/04 500 513
Shawnee County, Sisters Charity
Leavenworth, RB
4.700%, 12/01/04 230 223
5.000%, 12/01/10 360 330
Shawnee County, USD #345
Seaman, G.O.
7.200%, 09/01/98 250 263
5.750%, 09/01/98 250 252
Shawnee County, USD #437
Auburn-Washburn, Ser 92,
G.O., FGIC Insured
6.250%, 03/01/03 700 748
Sumner County, Bridge
Improvement Bonds, Ser 92,
G.O., AMBAC Insured
6.000%, 11/01/04 435 457
6.000%, 11/01/05 250 263
Thomas County, USD #315,
Ser 93, G.O.
4.200%, 09/01/01 150 145
4.300%, 09/01/02 160 154
4.400%, 09/01/03 165 159
4.600%, 09/01/04 175 168
Topeka Hospital, Storemont
Vail Project, Ser 90-B, RB
6.750%, 11/15/00 500 540
Topeka, Ser C, G.O.
5.500%, 08/15/05 250 253
Wellington Electric & Water,
Bank Qualified, RB,
AMBAC Insured
7.050%, 05/01/06 250 284
6.250%, 05/01/12 250 258
Wichita, Hospital Facility,
St. Joseph Rehabilitation
Center, RB (B)
6.000%, 07/01/04 1,245 1,301
Wichita, Single Family Mortgage,
Ser B, RB, Callable 07/01/98 @ 100
7.100%, 09/01/09 380 394
Wichita, Kansas, Multi-Family
Housing, RB
5.900%, 12/01/16 660 648
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Wichita, Water & Sewer
Improvement, Ser B, RB,
FGIC Insured
5.600%, 10/01/05 $ 750 $ 762
Winfield, Sales Tax, RB, Callable
09/01/03 @ 100
5.100%, 09/01/06 100 98
5.250%, 09/01/07 100 98
5.400%, 09/01/08 100 97
Wyandotte County, G.O.
7.000%, 09/01/05 415 435
Wyandotte County, USD #203
Piper, G.O.
5.750%, 09/01/03 140 142
5.900%, 09/01/04 295 298
6.600%, 09/01/13 500 507
--------
69,090
--------
GUAM -- 1.1%
Guam Government Highway
Bonds, Ser A, G.O., CGIC Insured
5.100%, 05/01/97 250 252
5.500%, 05/01/99 200 206
6.300%, 05/01/12 100 105
Guam Government, Ser A, G.O.
5.900%, 09/01/05 250 250
--------
813
--------
PUERTO RICO -- 1.4%
Puerto Rico Commonwealth
Highway and Transportation
Authority, RB
5.000%, 07/01/02 500 502
Puerto Rico Public Buildings,
Series I, RB, Callable
07/01/99 @ 100
6.000%, 07/01/12 500 498
--------
1,000
--------
Total Municipal Bonds
(Cost $69,752) 70,903
--------
CASH EQUIVALENT -- 2.1%
Dreyfus Tax Exempt
Money Market Fund 1,512 1,512
--------
Total Cash Equivalent
(Cost $1,512) 1,512
--------
Total Investments -- 100.5%
(Cost $71,264) 72,415
--------
OTHER ASSETS AND LIABILITIES, NET-- (0.5%) (349)
--------
50
<PAGE>
- --------------------------------------------------------------------------------
VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares of Class A (unlimited
authorization -- no par value) based on
6,857,687 outstanding shares of
beneficial interest $70,596
Undistributed Net Investment Income 322
Accumulated Net Realized Loss
on Investments (3)
Net Unrealized Appreciation on Investments 1,151
--------
Total Net Assets--100.0% $72,066
========
Net Asset Value, Offering Price and
Redemption Price Per Share-- Class A $ 10.51
========
AMBAC AMERICAN MUNICIPAL BOND ASSURANCE CORPORATION
CGIC CAPITAL GUARANTY INSURANCE CORPORATION
COP CERIFICATE OF PARTICIPATION
FGIC FINANCIAL GUARANTY INSURANCE COMPANY
GNMA GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
GO GENERAL OBLIGATION
MBIA MUNICIPAL BOND INVESTORS ASSURANCE
RB REVENUE BOND
SER SERIES
USD UNIFIED SCHOOL DISTRICT
(A) PRE-REFUNDED SECURITY--THE MATURITY DATE REPORTED ON THE
STATEMENT OF NET ASSETS IS THE PRE-REFUNDED DATE.
(B) SECURITY IS ESCROWED TO MATURITY
51
<PAGE>
STATEMENT OF OPERATIONS (000)
================================================================================
SEI TAX EXEMPT TRUST -- FOR THE YEAR ENDED AUGUST 31, 1996
<TABLE>
<CAPTION>
--------- ---------- ----------- ----------- ----------- ------------ ------------ ---------
CALIFORNIA BAINBRIDGE INTERMEDIATE- KANSAS
TAX TAX INSTITUTION PENNSYLVANIA TERM PENNSYLVANIA TAX FREE
TAX FREE EXEMPT EXEMPT TAX FREE TAX FREE MUNICIPAL MUNICIPAL INCOME
PORTFOLIO PORTFOLIO PORTFOLIO(2) PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- ---------- ----------- ----------- ----------- ------------ ------------ ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest Income $ 13,091 $ 13,944 $ 1,592 $ 31,291 $ 1,120 $ 5,589 $ 5,726 $ 3,720
-------- -------- -------- -------- -------- -------- -------- --------
EXPENSES:
Management Fees 1,257 886 148 2,980 110 353 357 101
Waiver of Management Fees (158) (305) (82) (1,282) (43) (74) (172) --
Investment Advisory Fees 137 151 16 325 12 254 204 202
Waiver of Investment
Advisory Fees -- -- -- -- -- -- (2) (202)
Custodian/Wire Agent Fees 47 52 9 107 4 20 16 11
Professional Fees 39 44 2 85 5 13 12 9
Pricing Fees 6 7 1 14 -- 2 3 2
Registration Fees 37 36 12 74 3 11 10 6
Trustee Fees 11 11 1 25 1 3 3 2
Distribution Fees (1) 150 1,860 -- 439 11 41 43 --
Printing Fees 37 30 1 43 3 -- 12 7
Amortization of Deferred
Organizational Costs -- -- 13 -- -- -- -- 2
Insurance Fees 5 5 2 11 -- 1 2 1
Other Expenses 3 3 -- 8 -- 1 1 --
-------- -------- -------- -------- -------- -------- -------- --------
Total Expenses 1,571 2,780 123 2,829 106 625 489 141
-------- -------- -------- -------- -------- -------- -------- --------
NET INVESTMENT INCOME 11,520 11,164 1,469 28,462 1,014 4,964 5,237 3,579
-------- -------- -------- -------- -------- -------- -------- --------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
Net Realized Gain (Loss)
on Investments 18 (5) 27 39 (14) 1,014 2,349 132
Net Change in Unrealized
Depreciation of Investments -- -- -- -- -- (1,920) (3,618) (903)
-------- -------- -------- -------- -------- -------- -------- --------
Net Realized and Unrealized
Gain (Loss) on Investments 18 (5) 27 39 (14) (906) (1,269) (771)
-------- -------- -------- -------- -------- -------- -------- --------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $ 11,538 $ 11,159 $ 1,496 $ 28,501 $ 1,000 $ 4,058 $ 3,968 $ 2,808
======== ======== ======== ======== ======== ======== ======== ========
<FN>
1 INCLUDES CLASS SPECIFIC DISTRIBUTION AND SHAREHOLDER SERVICING EXPENSES.
2 THE BAINBRIDGE TAX EXEMPT PORTFOLIO CLOSED ON DECEMBER 15, 1995
</FN>
</TABLE>
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
52 & 53
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (000)
================================================================================
SEI TAX EXEMPT TRUST -- FOR THE YEAR ENDED AUGUST 31,
<TABLE>
<CAPTION>
-------------------- ------------------ ------------------- ---------------------
BAINBRIDGE INSTITUTIONAL
TAX CALIFORNIA TAX TAX
FREE TAX EXEMPT EXEMPT FREE
PORTFOLIO PORTFOLIO PORTFOLIO1 PORTFOLIO
--------------------- ------------------- ------------------- ---------------------
1996 1995 1996 1995 1996 1995 1996 1995
---------- ---------- --------- --------- --------- --------- ---------- ----------
INVESTMENT ACTIVITIES:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Investment Income $ 11,520 $ 11,420 $ 11,164 $ 10,554 $ 1,469 $ 5,952 $ 28,462 $ 31,315
Net Realized Gain (Loss) from
Security Transactions 18 (5) (5) -- 27 4 39 (4)
Net Change in Unrealized
Appreciation (Depreciation)
of Investment Securities -- -- -- -- -- -- -- --
---------- ---------- --------- --------- --------- --------- ---------- ----------
Net Increase in Net Assets
Resulting from Operations 11,538 11,415 11,159 10,554 1,496 5,956 28,501 31,311
---------- ---------- --------- --------- --------- --------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net Investment Income
Class A (11,513) (11,398) (1,471) (1,158) (1,502) (5,950) (27,624) (30,581)
Class B -- -- -- (170) -- -- (596) (724)
Class C -- -- -- -- -- -- (248) --
Class D (4) (23) -- -- -- -- -- --
Class G(2) -- -- (9,727) (9,226) -- -- -- --
Net Capital Gains
Class A -- -- -- (1) -- -- -- --
Class B -- -- -- -- -- -- -- --
Class C -- -- -- -- -- -- -- --
Class D -- -- -- -- -- -- -- --
Class G(2) -- -- -- (8) -- -- -- --
---------- ---------- --------- --------- --------- --------- ---------- ----------
Total Distributions (11,517) (11,421) (11,198) (10,563) (1,502) (5,950) (28,468) (31,305)
---------- ---------- --------- --------- --------- --------- ---------- ----------
TRANSACTIONS:
Class A:
Proceeds from Shares Issued 1,426,417 1,502,741 232,581 193,641 29,983 256,460 4,958,411 5,130,777
Reinvestment of Cash Distributions 357 74 55 8 -- -- 776 1,645
Cost of Shares Redeemed (1,464,041)(1,483,956) (218,860) (194,711) (179,210) (268,046) (4,912,703)(5,179,065)
---------- ---------- --------- --------- --------- --------- ---------- ----------
Total Class A Share Transactions (37,267) 18,859 13,776 (1,062) (149,227) (11,586) 46,484 (46,643)
---------- ---------- --------- --------- --------- --------- ---------- ----------
Class B(2):
Proceeds from Shares Issued -- -- -- 41,150 -- -- 69,063 77,163
Reinvestment of Cash Distributions -- -- -- -- -- -- 58 69
Cost of Shares Redeemed -- -- -- (44,406) -- -- (70,053) (83,875)
---------- ---------- --------- --------- --------- --------- ---------- ----------
Total Class B Share Transactions -- -- -- (3,256) -- -- (932) (6,643)
---------- ---------- --------- --------- --------- --------- ---------- ----------
Class C:
Proceeds from Shares Issued -- -- -- -- -- -- 82,543 --
Reinvestment of Cash Distributions -- -- -- -- -- -- -- --
Cost of Shares Redeemed -- -- -- -- -- -- (63,337) --
---------- ---------- --------- --------- --------- --------- ---------- ----------
Total Class C Share Transactions -- -- -- -- -- -- 19,206 --
---------- ---------- --------- --------- --------- --------- ---------- ----------
Class D(3):
Proceeds from Shares Issued 1,615 4,827 -- -- -- -- -- --
Reinvestment of Cash Distributions -- -- -- -- -- -- -- --
Cost of Shares Redeemed (1,881) (4,555) -- -- -- -- -- --
---------- ---------- --------- --------- --------- --------- ---------- ----------
Total Class D Share Transactions (266) 272 -- -- -- -- -- --
---------- ---------- --------- --------- --------- --------- ---------- ----------
Class G(4):
Proceeds from Shares Issued -- -- 744,985 675,735 -- -- -- --
Reinvestment of Cash Distributions -- -- 8,087 6,682 -- -- -- --
Cost of Shares Redeemed -- -- (730,352) (672,528) -- -- -- --
---------- ---------- --------- --------- --------- --------- ---------- ----------
Total Class G Share Transactions -- -- 22,720 9,889 -- -- -- --
---------- ---------- --------- --------- --------- --------- ---------- ----------
Increase (Decrease) in Net Assets
from Share Transactions (37,533) 19,131 36,496 5,571 (149,227) (11,586) 64,758 (53,286)
---------- ---------- --------- --------- --------- --------- ---------- ----------
Total Increase (Decrease)
in Net Assets (37,512) 19,125 36,457 5,562 (149,233) (11,580) 64,791 (53,280)
---------- ---------- --------- --------- --------- --------- ---------- ----------
NET ASSETS:
Beginning of period 377,424 358,299 358,956 353,394 149,233 160,813 803,961 857,241
---------- ---------- --------- --------- --------- --------- ---------- ----------
End of period $ 339,912 $ 377,424 $ 395,413 $ 358,956 $ -- $ 149,233 $ 868,752 $ 803,961
========== ========== ========= ========= ========= ========= ========== ==========
</TABLE>
<TABLE>
<CAPTION>
------------------- ------------------- ------------------- -------------------
PENNSYLVANIA INTERMEDIATE- KANSAS
TAX TERM PENNSYLVANIA TAX FREE
FREE MUNICIPAL MUNICIPAL INCOME
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------------- ------------------- ------------------- -------------------
1996 1995 1996 1995 1996 1995 1996 1995
--------- --------- --------- --------- --------- --------- --------- ---------
INVESTMENT ACTIVITIES:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Investment Income $ 1,014 $ 733 $ 4,964 $ 5,258 $ 5,237 $ 5,733 $ 3,579 $ 3,420
Net Realized Gain (Loss) from
Security Transactions (14) (1) 1,014 (1,478) 2,349 (311) 132 (121)
Net Change in Unrealized
Appreciation (Depreciation)
of Investment Securities -- -- (1,920) 3,053 (3,618) 1,299 (903) 1,095
--------- --------- --------- --------- --------- --------- --------- ---------
Net Increase in Net Assets
Resulting from Operations 1,000 732 4,058 6,833 3,968 6,721 2,808 4,394
--------- --------- --------- --------- --------- --------- --------- ---------
DISTRIBUTIONS TO SHAREHOLDERS:
Net Investment Income
Class A (1,013) (733) (5,335) (5,340) (5,686) (5,837) (3,544) (3,407)
Class B -- -- -- -- -- -- -- --
Class C -- -- -- -- -- -- -- --
Class D -- -- (17) (41) -- -- -- --
Class G(2) -- -- -- -- -- -- -- --
Net Capital Gains
Class A -- -- -- (15) -- (4) -- --
Class B -- -- -- -- -- -- -- --
Class C -- -- -- -- -- -- -- --
Class D -- -- -- -- -- -- -- --
Class G(2) -- -- -- -- -- -- -- --
--------- --------- --------- --------- --------- --------- --------- ---------
Total Distributions (1,013) (733) (5,352) (5,396) (5,686) (5,841) (3,544) (3,407)
--------- --------- --------- --------- --------- --------- --------- ---------
TRANSACTIONS:
Class A:
Proceeds from Shares Issued 209,781 126,868 73,397 41,823 14,469 9,245 18,206 10,341
Reinvestment of Cash Distributions 60 14 1,360 1,102 171 153 -- --
Cost of Shares Redeemed (192,915) (119,535) (34,549) (76,186) (19,788) (31,265) (11,238) (7,840)
--------- --------- --------- --------- --------- --------- --------- ---------
Total Class A Share Transactions 16,926 7,347 40,208 (33,261) (5,148) (21,867) 6,968 2,501
--------- --------- --------- --------- --------- --------- --------- ---------
Class B(2):
Proceeds from Shares Issued -- -- -- -- -- -- -- --
Reinvestment of Cash Distributions -- -- -- -- -- -- -- --
Cost of Shares Redeemed -- -- -- -- -- -- -- --
--------- --------- --------- --------- --------- --------- --------- ---------
Total Class B Share Transactions -- -- -- -- -- -- -- --
--------- --------- --------- --------- --------- --------- --------- ---------
Class C:
Proceeds from Shares Issued -- -- -- -- -- -- -- --
Reinvestment of Cash Distributions -- -- -- -- -- -- -- --
Cost of Shares Redeemed -- -- -- -- -- -- -- --
--------- --------- --------- --------- --------- --------- --------- --------
Total Class C Share Transactions -- -- -- -- -- -- -- --
--------- --------- --------- --------- --------- --------- --------- --------
Class D(3):
Proceeds from Shares Issued -- -- 1 26 -- -- -- --
Reinvestment of Cash Distributions -- -- 11 37 -- -- -- --
Cost of Shares Redeemed -- -- (586) (630) -- -- -- --
--------- --------- --------- --------- --------- --------- --------- ---------
Total Class D Share Transactions -- -- (574) (567) -- -- -- --
--------- --------- --------- --------- --------- --------- --------- ---------
Class G(4):
Proceeds from Shares Issued -- -- -- -- -- -- -- --
Reinvestment of Cash Distributions -- -- -- -- -- -- -- --
Cost of Shares Redeemed -- -- -- -- -- -- -- --
--------- --------- --------- --------- --------- --------- --------- ---------
Total Class G Share Transactions -- -- -- -- -- -- -- --
--------- --------- --------- --------- --------- --------- --------- ---------
Increase (Decrease) in Net Assets
from Share Transactions 16,926 7,347 39,634 (33,828) (5,148) (21,867) 6,968 2,501
--------- --------- --------- --------- --------- --------- --------- ---------
Total Increase (Decrease)
in Net Assets 16,913 7,346 38,340 (32,391) (6,866) (20,987) 6,232 3,488
--------- --------- --------- --------- --------- --------- --------- ---------
NET ASSETS:
Beginning of period 26,058 18,712 96,223 128,614 104,094 125,081 65,834 62,346
--------- --------- --------- --------- --------- --------- --------- ---------
End of period $ 42,971 $ 26,058 $ 134,563 $ 96,223 $ 97,228 $ 104,094 $ 72,066 $ 65,834
========= ========= ========= ========= ========= ========= ========= =========
<FN>
1 THE BAINBRIDGE TAX EXEMPT PORTFOLIO CLOSED ON DECEMBER 15, 1995
2 ON JULY 12, 1995, CALIFORNIA TAX EXEMPT PORTFOLIO CLASS B CLOSED.
3 ON JUNE 30, 1996, INTERMEDIATE-TERM MUNICIPAL PORTFOLIO CLASS D CLOSED.
4 ON MAY 1, 1996, THE CALIFORNIA TAX EXEMPT PORTFOLIO CLASS C SHARES WERE
REDESIGNATED CLASS G SHARES.
</FN>
</TABLE>
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
54 & 55
<PAGE>
FINANCIAL HIGHLIGHTS
================================================================================
SEI TAX EXEMPT TRUST
FOR A SHARE OUTSTANDING THROUGHOUT THE YEAR
<TABLE>
<CAPTION>
NET REALIZED
INVESTMENT AND
NET ACTIVITIES DISTRIBUTIONS UNREALIZED
ASSET ---------- ------------------------------- GAIN (LOSS) ON
VALUE, NET NET NET INVESTMENTS
BEGINNING INVESTMENT INVESTMENT REALIZED TOTAL AND CAPITAL
OF PERIOD INCOME INCOME GAIN DISTRIBUTIONS TRANSACTIONS
- --------------------------------------------------------------------------------
- ------------------
TAX FREE PORTFOLIO
- ------------------
CLASS A
FOR THE YEARS ENDED AUGUST 31,:
<S> <C> <C> <C> <C> <C> <C>
1996 $1.00 $0.033 $(0.033) -- $(0.033) --
1995 1.00 0.034 (0.034) -- (0.034) --
1994 1.00 0.022 (0.022) -- (0.022) --
1993 1.00 0.022 (0.023) -- (0.023) --
1992 1.00 0.033 (0.033) -- (0.033) --
1991 1.00 0.047 (0.047) -- (0.047) --
1990 (1) 1.00 0.032 (0.032) -- (0.032) --
FOR THE YEARS ENDED JANUARY 31,:
1990 $1.00 $0.059 $(0.059) -- $(0.059) --
1989 1.00 0.049 (0.049) -- (0.049) --
1988 1.00 0.042 (0.042) -- (0.042) --
1987 1.00 0.041 (0.041) -- (0.041) --
1986 1.00 0.051 (0.051) -- (0.051) --
1985 1.00 0.058 (0.058) -- (0.058) --
CLASS D
FOR THE YEARS ENDED AUGUST 31,:
1996 $1.00 $0.030 $(0.030) -- $(0.030) --
1995(2) 1.00 0.026 (0.026) -- (0.026) --
- -------------------------------
CALIFORNIA TAX EXEMPT PORTFOLIO
- -------------------------------
CLASS A
FOR THE YEARS ENDED AUGUST 31,:
1996 $1.00 $0.034 $(0.034) -- $(0.034) --
1995 1.00 0.033 (0.033) -- (0.033) --
1994 1.00 0.023 (0.023) -- (0.023) --
1993 1.00 0.024 (0.024) -- (0.024) --
1992 1.00 0.034 (0.034) -- (0.034) --
1991 1.00 0.047 (0.047) -- (0.047) --
1990 (3) 1.00 0.016 (0.016) -- (0.016) --
CLASS G***
FOR THE YEARS ENDED AUGUST 31,:
1996 $1.00 $0.028 $(0.028) -- $(0.028) --
1995 1.00 0.029 (0.029) -- (0.029) --
1994(4) 1.00 0.006 (0.006) -- (0.006) --
- -------------------------------
BAINBRIDGE TAX EXEMPT PORTFOLIO
- -------------------------------
CLASS A
FOR THE YEARS ENDED AUGUST 31,:
1996(5) $1.00 $0.011 $(0.011) -- $(0.011) --
1995 1.00 0.036 (0.036) -- (0.036) --
1994 1.00 0.025 (0.025) -- (0.025) --
1993(6) 1.00 0.019 (0.019) -- (0.019) --
</TABLE>
<TABLE>
<CAPTION>
RATIO OF
NET
RATIO INVESTMENT
OF EXPENSES RATIO OF INCOME TO
TO AVERAGE NET AVERAGE
NET NET RATIO OF NET ASSETS INVESTMENT NET ASSETS
ASSET VALUE, ASSETS,END EXPENSES EXCLUDING INCOME TO EXCLUDING PORTFOLIO
END TOTAL OF PERIOD TO AVERAGE FEE AVERAGE FEE TURNOVER
OF PERIOD RETURN (000) NET ASSETS WAIVERS NET ASSETS WAIVERS RATE
- -----------------------------------------------------------------------------------------------------
- ------------------
TAX FREE PORTFOLIO
- ------------------
CLASS A
FOR THE YEARS ENDED AUGUST 31,:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996 $1.00 3.35% $339,906 0.45% 0.50% 3.30% 3.25% --
1995 1.00 3.48% 377,152 0.45% 0.51% 3.43% 3.37% --
1994 1.00 2.20% 358,299 0.45% 0.53% 2.17% 2.09% --
1993 1.00 2.29% 414,975 0.45% 0.53% 2.24% 2.16% --
1992 1.00 3.32% 293,982 0.45% 0.55% 3.30% 3.20% --
1991 1.00 4.81% 343,300 0.37% 0.55% 4.70% 4.52% --
1990(1) 1.00 3.20%+ 356,814 0.45%* 0.56%* 5.46%* 5.35%* --
FOR THE YEARS ENDED JANUARY 31,:
1990 $1.00 5.97% $464,389 0.54% 0.59% 5.90% 5.85% --
1989 1.00 4.98% 790,629 0.46% 0.58% 4.90 4.78% --
1988 1.00 4.34% 938,484 0.53% 0.54% 4.20% 4.19% --
1987 1.00 4.31% 1,143,083 0.56% 0.56% 4.10% 4.10% --
1986 1.00 5.21% 503,891 0.57% 0.57% 5.10% 5.10% --
1985 1.00 5.86% 263,325 0.58% 0.60% 5.80% 5.78% --
CLASS D
FOR THE YEARS ENDED AUGUST 31,:
1996 $1.00 2.99% $ 6 0.80% 0.88% 3.18% 3.10% --
1995(2) 1.00 2.68%+ 272 0.80%* 0.86%* 3.13%* 3.07%* --
- -------------------------------
CALIFORNIA TAX EXEMPT PORTFOLIO
- -------------------------------
CLASS A
FOR THE YEARS ENDED AUGUST 31,:
1996 $1.00 3.41% $ 44,729 0.28% 0.36% 3.33% 3.25% --
1995 1.00 3.49% 30,921 0.28% 0.42% 3.43% 3.29% --
1994 1.00 2.32% 32,015 0.27% 0.38% 2.28% 2.17% --
1993 1.00 2.41% 540,285 0.28% 0.37% 2.37% 2.28% --
1992 1.00 3.44% 445,936 0.28% 0.38% 3.34% 3.24% --
1991 1.00 4.92% 376,653 0.28% 0.40% 4.74% 4.62% --
1990 (3) 1.00 1.81%+ 275,095 0.28% 0.51% 5.27% 5.04% --
CLASS G***
FOR THE YEARS ENDED AUGUST 31,:
1996 $1.00 2.90% $350,684 0.78% 0.86% 2.84% 2.76% --
1995 1.00 2.97% 328,035 0.78% 0.93% 2.93% 2.78% --
1994(4) 1.00 2.14%* 318,122 0.67%* 0.87%* 2.06%* 1.86%* --
- -------------------------------
BAINBRIDGE TAX EXEMPT PORTFOLIO
- -------------------------------
CLASS A
FOR THE YEARS ENDED AUGUST 31,:
1996(5) $1.00 3.14%* -- 0.30% 0.50% 3.56% 3.36% --
1995 1.00 3.69% $149,233 0.30% 0.46% 3.62% 3.46% --
1994 1.00 2.52% 160,813 0.30% 0.47% 2.49% 2.32% --
1993(6) 1.00 1.95%+ 160,058 0.30%* 0.48%* 2.39%* 2.21%* --
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
56
<PAGE>
<TABLE>
<CAPTION>
NET REALIZED
INVESTMENT AND
NET ACTIVITIES DISTRIBUTIONS UNREALIZED
ASSET ---------- ------------------------------- GAIN (LOSS) ON
VALUE, NET NET NET INVESTMENTS
BEGINNING INVESTMENT INVESTMENT REALIZED TOTAL AND CAPITAL
OF PERIOD INCOME INCOME GAIN DISTRIBUTIONS TRANSACTIONS
- --------------------------------------------------------------------------------
- --------------------------------
INSTITUTIONAL TAX FREE PORTFOLIO
- --------------------------------
CLASS A
FOR THE YEARS ENDED AUGUST 31,:
<S> <C> <C> <C> <C> <C> <C>
1996 $1.00 $0.035 $(0.035) -- $(0.035) --
1995 1.00 0.036 (0.036) -- (0.036) --
1994 1.00 0.025 (0.025) -- (0.025) --
1993 1.00 0.026 (0.026) -- (0.026) --
1992 1.00 0.036 (0.036) -- (0.036) --
1991 1.00 0.049 (0.049) -- (0.049) --
1990(1) 1.00 0.033 (0.033) -- (0.033) --
FOR THE YEARS ENDED JANUARY 31,:
1990 $1.00 $0.059 $(0.059) -- $(0.059) --
1989 1.00 0.048 (0.048) -- (0.048) --
1988 1.00 0.042 (0.042) -- (0.042) --
1987 1.00 0.041 (0.041) -- (0.041) --
1986 1.00 0.050 (0.050) -- (0.050) --
1985 1.00 0.056 (0.056) -- (0.056) --
CLASS B
FOR THE YEARS ENDED AUGUST 31,:
1996 $1.00 $0.032 $(0.032) -- $(0.032) --
1995 1.00 0.033 (0.033) -- (0.033) --
1994 1.00 0.022 (0.022) -- (0.022) --
1993 1.00 0.023 (0.023) -- (0.023) --
1992 1.00 0.033 (0.033) -- (0.033) --
1991(7) 1.00 0.038 (0.038) -- (0.038) --
CLASS C
FOR THE YEAR ENDED AUGUST 31,:
1996(8) $1.00 $0.029 $(0.029) -- $(0.029) --
- -------------------------------
PENNSYLVANIA TAX FREE PORTFOLIO
- -------------------------------
CLASS A
FOR THE YEARS ENDED AUGUST 31,:
1996 $1.00 $0.034 $(0.034) -- $(0.034) --
1995 1.00 0.035 (0.035) -- (0.035) --
1994(9) 1.00 0.014 (0.014) -- (0.014) --
- -------------------------------------
INTERMEDIATE-TERM MUNICIPAL PORTFOLIO
- -------------------------------------
CLASS A
FOR THE YEARS ENDED AUGUST 31,:
1996 $10.59 $0.49 $(0.53) -- $(0.53) $(0.10)
1995 10.36 0.52 (0.52) -- (0.52) 0.23
1994 10.84 0.49 (0.49) $(0.06) (0.55) (0.42)
1993 10.49 0.49 (0.50) (0.02) (0.52) 0.38
1992 10.20 0.56 (0.54) (0.01) (0.55) 0.28
1991 9.98 0.61 (0.63) -- (0.63) 0.24
1990(1 10.01 0.38 (0.37) -- (0.37) (0.04)
FOR THE YEAR ENDED JANUARY 31,:
1990(1) $10.00 $0.21 $(0.16) $(0.002) $(0.16) $(0.04)
CLASS D
FOR THE YEARS ENDED AUGUST 31,:
1996(14) $10.59 $0.38 $(0.41) -- $(0.41) $(0.10)
1995 10.36 0.48 (0.48) -- (0.48) 0.23
1994(11)** 10.90 0.45 (0.42) $(0.06) (0.48) (0.51)
</TABLE>
<TABLE>
<CAPTION>
RATIO OF
NET
RATIO INVESTMENT
OF EXPENSES RATIO OF INCOME TO
TO AVERAGE NET AVERAGE
NET NET RATIO OF NET ASSETS INVESTMENT NET ASSETS
ASSET VALUE, ASSETS,END EXPENSES EXCLUDING INCOME TO EXCLUDING PORTFOLIO
END TOTAL OF PERIOD TO AVERAGE FEE AVERAGE FEE TURNOVER
OF PERIOD RETURN (000) NET ASSETS WAIVERS NET ASSETS WAIVERS RATE
- -----------------------------------------------------------------------------------------------------
- --------------------------------
INSTITUTIONAL TAX FREE PORTFOLIO
- --------------------------------
CLASS A
FOR THE YEARS ENDED AUGUST 31,:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996 $1.00 3.52% $835,388 0.33% 0.49% 3.46% 3.30% --
1995 1.00 3.70% 788,877 0.33% 0.52% 3.64% 3.45% --
1994 1.00 2.51% 835,516 0.33% 0.50% 2.48% 2.31% --
1993 1.00 2.59% 763,040 0.33% 0.49% 2.55% 2.39% --
1992 1.00 3.66% 623,689 0.33% 0.51% 3.54% 3.36% --
1991 1.00 5.20% 448,390 0.33% 0.53% 4.91% 4.71% --
1990(1) 1.00 3.32%+ 226,658 0.33%* 0.56%* 5.64%* 5.41%* --
FOR THE YEARS ENDED JANUARY 31,:
1990 $1.00 6.11% $177,342 0.52% 0.60% 5.90% 5.82% --
1989 1.00 5.05% 99,774 0.55% 0.57% 4.80% 4.78% --
1988 1.00 4.28% 223,653 0.55% 0.56% 4.20% 4.19% --
1987 1.00 4.23% 255,147 0.55% 0.56% 4.10% 4.09% --
1986 1.00 5.11% 198,761 0.57% 0.57% 5.00% 5.00% --
1985 1.00 5.71% 162,676 0.57% 0.59% 5.60% 5.58% --
CLASS B
FOR THE YEARS ENDED AUGUST 31,:
1996 $1.00 3.21% $ 14,156 0.63% 0.80% 3.16% 2.99% --
1995 1.00 3.39% 15,084 0.63% 0.82% 3.32% 3.13% --
1994 1.00 2.21% 21,725 0.63% 0.81% 2.31% 2.13% --
1993 1.00 2.29% 3,040 0.63% 0.79% 2.22% 2.06% --
1992 1.00 3.35% 686 0.63% 0.81% 3.22% 3.04% --
1991(7) 1.00 3.89%+ 1,515 0.63%* 0.84%* 4.34%* 4.13%* --
CLASS C
FOR THE YEAR ENDED AUGUST 31,:
1996(8) $1.00 $2.92%+ $ 19,208 0.83%* 0.96%* 2.89%* 2.76%* --
- -------------------------------
PENNSYLVANIA TAX FREE PORTFOLIO
- -------------------------------
CLASS A
FOR THE YEARS ENDED AUGUST 31,:
1996 $1.00 3.40% $ 42,971 0.35% 0.49% 3.33% 3.19% --
1995 1.00 3.60% 26,058 0.35% 0.51% 3.54% 3.38% --
1994(9) 1.00 2.37%* 18,712 0.35%* 0.65%* 2.37%* 2.07%* --
- -------------------------------------
INTERMEDIATE-TERM MUNICIPAL PORTFOLIO
- -------------------------------------
CLASS A
FOR THE YEARS ENDED AUGUST 31,:
1996 $10.45 3.76% $134,563 0.59% 0.66% 4.66% 4.59% 40.66%
1995 10.59 7.53% 95,675 0.55% 0.72% 4.96% 4.79% 36.05%
1994 10.36 0.65% 127,509 0.53% 0.71% 4.65% 4.47% 58.39%
1993 10.84 8.62% 122,649 0.55% 0.69% 4.79% 4.65% 63.04%
1992 10.49 8.56% 63,210 0.55% 0.71% 5.56% 5.40% 61.56%
1991 10.20 8.82% 36,699 0.55% 0.78% 6.18% 5.95% 111.82%
1990(1 9.98 3.44%+ 12,781 0.55%* 0.90%* 6.63%* 6.28%* 63.45%
FOR THE YEAR ENDED JANUARY 31,:
1990(1) $10.01 1.72%+ $ 9,106 0.56%* 1.36%* 5.80%* 5.00%* 352.00%
CLASS D
FOR THE YEARS ENDED AUGUST 31,:
1996(14) $10.46 3.22%* -- 0.98% 1.08% 4.26% 4.16% 40.66%
1995 10.59 7.11% $ 548 0.95% 1.12% 4.57% 4.40% 36.05%
1994(11)** 10.36 (0.93%)* 1,105 0.93%* 1.07%* 4.34%* 4.20%* 58.39%
</TABLE>
57
<PAGE>
FINANCIAL HIGHLIGHTS (concluded)
================================================================================
SEI TAX EXEMPT TRUST
FOR A SHARE OUTSTANDING THROUGHOUT THE YEAR
<TABLE>
<CAPTION>
NET REALIZED
INVESTMENT AND
NET ACTIVITIES DISTRIBUTIONS UNREALIZED
ASSET ---------- ------------------------------- GAIN (LOSS) ON
VALUE, NET NET NET INVESTMENTS
BEGINNING INVESTMENT INVESTMENT REALIZED TOTAL AND CAPITAL
OF PERIOD INCOME INCOME GAIN DISTRIBUTIONS TRANSACTIONS
- --------------------------------------------------------------------------------
- --------------------------------
PENNSYLVANIA MUNICIPAL PORTFOLIO
- --------------------------------
CLASS A
FOR THE YEARS ENDED AUGUST 31,:
<S> <C> <C> <C> <C> <C> <C>
1996 $10.66 $0.55 $(0.59) -- $(0.59) $(0.14)
1995 10.52 0.55 (0.55) -- (0.55) 0.14
1994 10.94 0.53 (0.53) -- (0.53) (0.42)
1993 10.59 0.55 (0.55) $(0.01) (0.56) 0.36
1992 10.29 0.57 (0.57) (0.01) (0.58) 0.31
1991 9.95 0.60 (0.60) (0.003) (0.60) 0.34
1990(1) 9.98 0.34 (0.34) -- (0.34) (0.03)
FOR THE YEARS ENDED JANUARY 31,:
1990(12) $10.00 $0.28 $(0.23) $(0.001) $(0.23) $(0.07)
- --------------------------------
KANSAS TAX FREE INCOME PORTFOLIO
- --------------------------------
CLASS A
FOR THE YEARS ENDED AUGUST 31,:
1996 $10.63 $0.56 $(0.56) -- $(0.56) $(0.12)
1995 10.47 0.57 (0.57) -- (0.57) 0.16
1994 10.91 0.57 (0.57) $(0.02) (0.59) (0.42)
1993 10.50 0.58 (0.58) (0.05) (0.63) 0.46
1992 10.13 0.60 (0.59) (0.01) (0.60) 0.37
1991(13) 10.00 0.42 (0.37) -- (0.37) 0.08
<CAPTION>
RATIO OF
NET
RATIO INVESTMENT
OF EXPENSES RATIO OF INCOME TO
TO AVERAGE NET AVERAGE
NET NET RATIO OF NET ASSETS INVESTMENT NET ASSETS
ASSET VALUE, ASSETS,END EXPENSES EXCLUDING INCOME TO EXCLUDING PORTFOLIO
END TOTAL OF PERIOD TO AVERAGE FEE AVERAGE FEE TURNOVER
OF PERIOD RETURN (000) NET ASSETS WAIVERS NET ASSETS WAIVERS RATE
- ---------------------------------------------------------------------------------------------------------------------------
- --------------------------------
PENNSYLVANIA MUNICIPAL PORTFOLIO
- --------------------------------
CLASS A
FOR THE YEARS ENDED AUGUST 31,:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996 $10.48 3.96% $ 97,228 0.48% 0.65% 5.15% 4.98% 65.75%
1995 10.66 6.81% 104,094 0.48% 0.72% 5.21% 4.97% 22.62%
1994 10.52 1.14% 125,081 0.47% 0.71% 4.90% 4.66% 25.13%
1993 10.94 8.91% 153,808 0.48% 0.70% 5.15% 4.93% 15.26%
1992 10.59 8.89% 114,461 0.48% 0.72% 5.52% 5.28% 10.54%
1991 10.29 9.80% 83,054 0.50% 0.73% 5.98% 5.75% 19.17%
1990(1) 9.95 3.12%+ 64,531 0.60%* 0.80%* 5.88%* 5.68%* 20.35%
FOR THE YEARS ENDED JANUARY 31,:
1990(12) $9.98 2.11%+ $ 53,042 0.60%* 0.86%* 6.05%* 5.79%* 10.00%
- --------------------------------------------------------------------------------
KANSAS TAX FREE INCOME PORTFOLIO
- --------------------------------------------------------------------------------
CLASS A
FOR THE YEARS ENDED AUGUST 31,:
1996 $10.51 4.23% $ 72,066 0.21% 0.51% 5.31% 5.01% 12.71%
1995 10.63 7.23% 65,834 0.21% 0.51% 5.47% 5.17% 17.60%
1994 10.47 1.41% 62,346 0.21% 0.54% 5.36% 5.03% 10.57%
1993 10.91 10.38% 58,197 0.21% 0.51% 5.56% 5.26% 23.04%
1992 10.50 9.78% 45,609 0.22% 0.52% 5.87% 5.57% 12.69%
1991(13) 10.13 5.12%+ 29,242 0.31%* 0.61%* 5.85%* 5.55%* 21.82%
<FN>
* ANNUALIZED.
** TOTAL RETURN DOES NOT REFLECT THE SALES CHARGE ON THE CLASS D. *** ON MAY 1,
1996, CLASS C SHARES WERE REDESIGNATED CLASS G SHARES.
+ RETURN IS FOR THE PERIOD INDICATED AND HAS NOT BEEN ANNUALIZED.
1 IN AUGUST 1990, THE TRUSTEES CHANGED THE FISCAL YEAR END OF THE TRUST FROM JANUARY 31 TO AUGUST 31.
2 THE TAX FREE PORTFOLIO--CLASS D COMMENCED OPERATIONS ON NOVEMBER 1, 1994.
3 THE CALIFORNIA TAX EXEMPT PORTFOLIO--CLASS A COMMENCED OPERATIONS ON MAY 14, 1990.
4 THE CALIFORNIA TAX EXEMPT PORTFOLIO--CLASS C COMMENCED OPERATIONS ON MAY 11, 1994.
5 THE BAINBRIDGE TAX EXEMPT PORTFOLIO--CLASS A CLOSED ON DECEMBER 15, 1995.
6 THE BAINBRIDGE TAX EXEMPT PORTFOLIO--CLASS A COMMENCED OPERATIONS ON NOVEMBER 9, 1992.
7 THE INSTITUTIONAL TAX FREE PORTFOLIO--CLASS B COMMENCED OPERATIONS ON OCTOBER 15, 1990.
8 THE INSTITUTIONAL TAX FREE PORTFOLIO--CLASS C COMMENCED OPERATIONS ON SEPTEMBER 11, 1995.
9 THE PENNSYLVANIA TAX FREE PORTFOLIO--CLASS A COMMENCED OPERATIONS ON JANUARY 21, 1994.
10 THE INTERMEDIATE-TERM MUNICIPAL PORTFOLIO--CLASS A COMMENCED OPERATIONS ON SEPTEMBER 5, 1989.
11 THE INTERMEDIATE-TERM MUNICIPAL PORTFOLIO--CLASS D COMMENCED OPERATIONS ON SEPTEMBER 28, 1993.
12 THE PENNSYLVANIA MUNICIPAL PORTFOLIO--CLASS A COMMENCED OPERATIONS ON AUGUST 14, 1989.
13 THE KANSAS TAX FREE INCOME PORTFOLIO--CLASS A COMMENCED OPERATIONS ON DECEMBER 10, 1990.
14 THE INTERMEDIATE-TERM MUNICIPAL PORTFOLIO CLASS D CLOSED ON JUNE 30, 1996.
</FN>
</TABLE>
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
58
<PAGE>
NOTES TO FINANCIAL STATEMENTS
================================================================================
SEI TAX EXEMPT TRUST -- AUGUST 31, 1996
1. ORGANIZATION
SEI Tax Exempt Trust (the "Trust"), was organized as a Massachusetts business
trust under a Declaration of Trust dated March 15, 1982.
The Trust is registered under the Investment Company Act of 1940, as
amended, as an open-end management investment company with nine portfolios: the
Tax Free Portfolio, the California Tax Exempt Portfolio, the Institutional Tax
Free Portfolio, the Pennsylvania Tax Free Portfolio (collectively "the Money
Market Portfolios"), the Intermediate-Term Municipal Portfolio, the Pennsylvania
Municipal Portfolio, the Kansas Tax Free Income Portfolio, the California
Intermediate-Term Municipal Portfolio and the New York Intermediate-Term
Municipal Portfolio (collectively "the Fixed Income Portfolios"). The California
Intermediate-Term Municipal Portfolio and the New York Intermediate-Term
Municipal Portfolio had not commenced operations as of August 31, 1996. The
Trust is registered to offer five classes of shares: Class A, Class B, Class C,
Class D and Class G. The Portfolios' prospectus provides a description of each
Portfolio's investment objectives, policies and strategies. The assets of each
portfolio are segregated and a shareholder's interest is limited to the
portfolio in which shares are held.
On December 15, 1995, the Bainbridge Tax Exempt Portfolio closed and all of
the outstanding shares of the Portfolio were redeemed. SEI Financial Management
Corporation voluntarily agreed to bear the costs associated with the liquidation
of the Portfolio which approximated $13,000 and included the amount of
unamortized organizational expenses.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by the
Portfolios.
SECURITY VALUATION -- Investment securities of each Money Market Portfolio
are stated at amortized cost which approximates market value. Under this
valuation method, purchase discounts and premiums on securities are accreted and
amortized ratably to maturity.
The market value for each security for each Fixed Income Portfolio is
obtained from an independent pricing service. Debt obligations exceeding sixty
days to maturity for which market quotations are readily available are valued at
the most recently quoted bid price. Debt obligations with sixty days or less
remaining until maturity may be valued at their amortized cost.
FEDERAL INCOME TAXES -- It is each Portfolio's intention to continue to
qualify as a regulated investment company and to distribute all of its taxable
income. Accordingly, no provision for Federal income taxes is required in the
accompanying financial statements.
NET ASSET VALUE PER SHARE -- The net asset value per share of each
Portfolio is calculated on each business day. In general, it is computed by
dividing the assets of each Portfolio, less its liabilities, by the number of
outstanding shares of the Portfolio. The maximum offering price per share for
the Class D shares of the Intermediate-Term Municipal Portfolio is equal to the
net asset value per share plus a sales load of 3.50%. The Intermediate-Term
Municipal Portfolio Class D closed on June 30, 1996.
CLASSES -- Class-specific expenses are borne by that class. Income,
expenses, and realized and unrealized gains/losses are allocated to the
respective class on the basis of relative net asset value each day.
SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions are
accounted for on the trade date of the security purchase or sale. Costs used in
determining net realized capital gains and losses on the sale of investment
securities are those of the specific securities sold. Interest income is
recognized on the accrual basis. Purchase discounts and premiums on securities
held by the Fixed Income Portfolios are accreted and amortized to maturity using
the scientific interest method, which approximates the effective interest
method.
USES OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS -- The
preparation of financial statements, in conformity with generally accepted
accounting principles, requires management to make estimates and assumptions
that affect the reported
59
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
================================================================================
SEI TAX EXEMPT TRUST -- AUGUST 31, 1996
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 TO SHAREHOLDERS -- Distributions from net investment income
are declared on a daily basis and are payable on the first business day of the
following month for the Tax Free, the California Tax Exempt, the Institutional
Tax Free, the Pennsylvania Tax Free, the Intermediate-Term Municipal, and
the Pennsylvania Municipal Portfolios. Distributions from net investment income
are declared each month and paid on the tenth day of the following month for the
Kansas Tax Free Income Portfolio. Any net realized capital gain on sales of
securities after capital loss carryovers is distributed to the shareholders of
the Portfolios at least annually.
3. TRANSACTIONS WITH AFFILIATES
The Trust and SEI Fund Management (the "Manager") are parties to a Management
Agreement dated May 23, 1986, under which the manager provides management,
administrative and shareholder services to the Portfolios for an annual fee of
.36% each of the average daily net assets of the Tax Free, Institutional Tax
Free and Pennsylvania Tax Free Portfolios, .23% of the average daily net asset
value of the California Tax Exempt Portfolio, .24% of the average daily net
asset value of the Intermediate-Term Municipal Portfolio, .35% each of the
average daily net asset value of the Pennsylvania Municipal and .15% of the
average daily net asset value of the Kansas Tax Free Income Portfolio. However,
the Manager has voluntarily agreed to waive a portion of its fee so that total
expenses of each Portfolio will not exceed certain annual expense limitations.
For the period September 1, 1995 to April 30, 1996, SEI Financial Services
Company ("SFS"), a wholly-owned subsidiary of SEI Corporation and a registered
broker-dealer, acted as the distributor of the shares of the Trust under
distribution plans which provide for the Trust to reimburse SFS for certain
distribution-related expenses incurred by SFS.
Effective May 1, 1996, SFS (the "Distributor") continued to act as the
distributor of the shares of the Trust under new Distribution Agreements. The
Trust has adopted plans under which firms, including the Distributor, that
provide shareholder and administrative services may receive compensation
thereof. The Class A, Class B, Class C and Class G shareholder servicing plans
(the "Shareholder Servicing Plans") provide for servicing fees payable to the
Distributor of up to .25% of the average daily net assets attributable to that
particular class. For Class A and Class G, no such fees were levied since the
inception of the plan. Such fees may be levied in the future when the Portfolios
are operating below their voluntary expense caps. In addition to the Shareholder
Servicing Plans, the Class B and Class C shares have adopted administrative
services plans that provide for administrative service fees payable to the
Distributor of up to .05% and .25%, receptively, of the average daily nets
assets attributable to that class. The Trust has adopted a distribution for its
Class D and Class G shares pursuant to which a 12b-1 fee of up to .25% and .50%,
respectively, of the average daily net assets attributable to that particular
class of Class D and Class G shares will be paid to the Distributor. This
payment may be used to compensate financial institutions that provide
distribution-related services to their customers. Under each of the plans
adopted by the Trust, the Distributor may retain as a profit any difference
between the fee it receives and the amount it pays to third parties.
Certain officers of the Trust are also officers and/or Directors of the
Manager. The Trust pays each unaffiliated Trustee an annual fee for attendance
at quarterly, interim and committee meetings. Compensation of officers and
affiliated Trustees is paid by the Manager.
4. INVESTMENT ADVISORY
Weiss, Peck, & Greer L.L.C. ("WPG") act as the Investment Adviser on behalf of
the Tax Free, the California Tax Exempt, the Institutional Tax Free and the
Pennsylvania Tax Free Portfolios. For its services, WPG receives a monthly fee
equal to an annual rate of .05% of the combined daily net assets up to $500
million, .04% on the next $500 million
60
<PAGE>
and .03% of such assets in excess of $1 billion of the Tax Free, the California
Tax Exempt, the Institutional Tax Free and the Pennsylvania Tax Free Portfolios.
Prior to January 1, 1996, WPG also served as the Investment Adviser on behalf of
the Intermediate-Term Municipal Portfolio. For the period January 1, 1996 to
April 15, 1996, Standish Ayer & Wood ("SAW") acted as the Investment Adviser on
behalf of the Intermediate-Term Municipal Bond Portfolio. Commencing April 16,
1996, SEI Financial Management Corporation ("SFM") was appointed as the
Investment Adviser of the Intermediate-Term Municipal Portfolio. For its
services, SFM is entitled to a fee, which is calculated daily and paid monthly,
at an annual rate of .33% of the Portfolios average daily net assets.
Sub-Advisory services are provided to SFM for Intermediate-Term Municipal
Portfolio by SAW pursuant to a sub-advisory agreement dated April 16, 1996.
Under the terms of such agreement, SAW is entitled to receive a fee from SFM.
For its services, SAW receives a monthly fee equal to an annual rate of .18% of
the daily net assets up to $125 million and .15% of such assets in excess of
$125 million. SFM is responsible for the supervision of, and payment of fees
to, SAW in connection with their services.
Morgan Grenfell Capital Management Incorporated ("MGCM") acts as the
Investment Adviser of the Pennsylvania Municipal Portfolio. For its services,
MGCM receives a monthly fee equal to an annual rate of .20% of the average daily
net assets of the Portfolio.
Under an Investment Advisory Agreement dated December 7, 1990, INTRUST
Bank, N.A. in Wichita serves as the Investment Adviser on behalf of the Kansas
Tax Free Income Portfolio. For its services INTRUST Bank is entitled to receive
a monthly fee equal to an annual rate of .30% of the average daily net assets of
the Portfolio. INTRUST Bank has voluntarily agreed to waive the full amount of
their fee in order to limit operating expenses. The Manager has voluntarily
agreed to waive a portion of its fee in order to limit operating expenses of the
Kansas Tax Free Income Portfolio.
5. INVESTMENT TRANSACTIONS
The cost of security purchases and the proceeds from the sale of securities,
other than short-term investments for the year ended August 31, 1996, were as
follows:
INTERMEDIATE- KANSAS
TERM PENNSYLVANIA TAX FREE
MUNICIPAL MUNICIPAL INCOME
PORTFOLIO PORTFOLIO PORTFOLIO
(000) (000) (000)
---------- ---------- ----------
Purchases $77,347 $64,232 $15,060
Sales 40,710 69,195 8,345
Subsequent to October 31, 1995, the Portfolios recognized net capital
losses for tax purposes that have been deferred and can be used to offset future
capital gains at August 31, 1997. The Portfolios also had capital loss
carryforwards at August 31, 1996, as follows:
CAPITAL
LOSS
CARRYOVER
AUGUST 31, EXPIRES EXPIRES EXPIRES
PORTFOLIO 1996 2002 2003 2004
- -------- -------------- ---------- ---------- ----------
Tax Free
Portfolio $ 17,501 $17,408 $ 93 $ --
Intermediate-
Term
Municipal
Portfolio 1,163,939 -- 927,882 236,057
Pennsylvania
Municipal
Portfolio -- -- -- --
Pennsylvania
Tax Free
Portfolio -- -- -- --
Kansas Tax
Free
Income
Portfolio 3,335 -- 3,335 --
61
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
================================================================================
SEI TAX EXEMPT TRUST -- AUGUST 31, 1996
POST CAPITAL LOSS
OCTOBER 31, UTILIZED
1995 NET DURING THE
DEFERRED CAPITAL CURRENT WASH
PORTFOLIO LOSSES LOSSES YEAR SALES
- -------- -------------- ------------ ----------- --------------
Tax Free
Portfolio $ -- $ 17,501 $ 13,466 $ --
Intermediate-
Term
Municipal
Portfolio -- 1,163,939 -- --
Pennsylvania
Municipal
Portfolio -- -- 330,838 14,228
Pennsylvania
Tax Free
Portfolio 13,628 -- -- --
Kansas Tax
Free
Income
Portfolio -- 3,335 14,967 --
For tax purposes, the losses in the Portfolios can be carried forward for a
maximum of eight years to offset any net realized capital gains.
The aggregate gross unrealized appreciation on securities in which there
was an excess of market value over cost, the aggregate gross unrealized
depreciation on securities in which there was an excess of cost over market
value and the net unrealized appreciation (depreciation) at August 31, 1996, for
each Portfolio are as follows:
INTERMEDIATE- KANSAS
TERM PENNSYLVANIA TAX FREE
MUNICIPAL MUNICIPAL INCOME
PORTFOLIO PORTFOLIO PORTFOLIO
(000) (000) (000)
---------- ---------- ----------
Aggregate gross unrealized
appreciation $ 969 $1,316 $1,652
Aggregate gross unrealized
depreciation 1,138 1,075 501
------ ------ ------
Net unrealized appreciation
(depreciation) $ (169) $ 241 $1,151
====== ====== ======
6. LINE OF CREDIT
The Portfolios have a bank line of credit. Borrowings under the line of credit
are secured by investment securities of the Portfolios equal to 112% of such
borrowings which may not exceed 10% of the Portfolios' total assets.
7. CONCENTRATION OF CREDIT RISK
The Portfolios invest in debt instruments of municipal issuers. The issuers'
abilities to meet their obligations may be affected by economic developments in
a specific state or region.
The Trust invests in securities which include revenue bonds, tax exempt
commercial paper, tax and revenue anticipation notes, and general obligation
bonds. At August 31, 1996, the percentage of portfolio investments by each
revenue source were as follows:
CALIFORNIA
TAX FREE TAX EXEMPT
PORTFOLIO PORTFOLIO
---------- ----------
Revenue Bonds:
Education Revenue 10.3% 7.0%
Health Care Facilities 9.7% 9.2%
Housing Facilities 14.2% 24.5%
Industrial Development 22.1% 5.0%
Lease Rental Bonds 0.0% 0.7%
Pollution Control 1.5% 3.3%
Public Facility 4.7% 6.7%
Resource Recovery 1.2% 0.0%
Transportation 2.7% 2.5%
Utility Revenue 1.9% 8.8%
General Obligation 8.9% 9.1%
Tax Exempt Commercial Paper 0.0% 0.0%
Anticipation Notes:
Bond 3.6% 0.0%
Revenue 0.9% 0.9%
Tax 4.9% 0.0%
Tax & Revenue 2.1% 10.4%
Other 11.3% 11.9%
------ ------
Total 100.0% 100.0%
61
<PAGE>
INTERMEDIATE-
INSTITUTIONAL PENNSYLVANIA TERM
TAX FREE TAX FREE MUNICIPAL
PORTFOLIO PORTFOLIO PORTFOLIO
---------- ---------- ----------
Revenue Bonds:
Education Revenue 6.7% 19.3% 10.9%
Health Care Facilities 11.2% 15.6% 12.2%
Housing Facilities 16.6% 3.5% 9.0%
Industrial Development 19.2% 19.5% 3.1%
Lease Rental Bonds 0.0% 0.0% 0.0%
Pollution Control 2.2% 8.1% 0.9%
Public Facility 4.1% 0.2% 2.6%
Resource Recovery 0.0% 0.0% 1.5%
Transportation 1.0% 1.3% 9.1%
Utility Revenue 1.1% 4.1% 23.3%
General Obligation 6.2% 3.2% 27.4%
Tax Exempt Commercial Paper 0.0% 0.0% 0.0%
Anticipation Notes:
Bond 4.2% 0.0% 0.0%
Revenue 0.9% 2.3% 0.0%
Tax 4.4% 2.8% 0.0%
Tax & Revenue 3.9% 5.8% 0.0%
Other 18.3% 14.3% 0.0%
------ ------ ------
Total 100.0% 100.0% 100.0%
KANSAS
PENNSYLVANI TAX FREE
MUNICIPAL INCOME
PORTFOLIO PORTFOLIO
----------- -----------
Revenue Bonds:
Education Revenue 22.0% 2.0%
Health Care Facilities 27.5% 6.8%
Housing Facilities 11.4% 5.8%
Industrial Development 17.6% 3.3%
Lease Rental Bonds 1.1% 3.4%
Pollution Control 0.0% 1.4%
Public Facility 2.5% 4.8%
Resource Recovery 0.1% 3.3%
Transportation 0.4% 1.4%
Utility Revenue 10.9% 16.8%
General Obligation 5.4% 52.9%
Tax Exempt Commercial Paper 0.0% 0.0%
Anticipation Notes:
Bond 0.0% 0.0%
Revenue 0.0% 0.0%
Tax 0.0% 0.0%
Tax & Revenue 0.0% 0.0%
Other 1.1% 2.9%
------ ------
Total 100.0% 100.0%
Many municipalities insure their obligations with insurance underwritten by
insurance companies which undertake to pay a holder, when due, the interest and
principal amount of an obligation if the issuer defaults on its obligation.
Although bond insurance reduces the risk of loss due to default by an issuer,
there is no assurance that the insurance company will meet its obligations.
Also, some of the securities have credit enhancements (letters of credit or
guarantees issued by third party domestic or foreign banks or other
institutions). At August 31, 1996, the percentage of the Portfolios' investments
that were insured and the percentage of the Portfolios' investments that had
credit enhancements were as follows:
CREDIT
INSURED ENHANCEMENTS
-------- ------------
Tax Free Portfolio 21.0% 52.8%
California Tax Exempt Portfolio 24.7% 53.9%
Institutional Tax Free Portfolio 23.1% 51.2%
Pennsylvania Tax Free Portfolio 26.1% 49.2%
Intermediate-Term
Municipal Portfolio 46.6% 1.3%
Pennsylvania Municipal Portfolio 45.3% 5.8%
Kansas Tax Free Income Portfolio 33.7% 0.0%
8. SHAREHOLDER VOTING RESULTS (UNAUDITED)
I. At a special meeting of shareholders held on September 28, 1995, shareholders
of the Pennsylvania Municipal Portfolio (the "Portfolio") of SEI Tax Exempt
Trust (the "Trust") voted to approve the selection of Morgan Grenfell Capital
Management Incorporated ("Morgan Grenfell") as investment adviser to the
Portfolio and the investment advisory agreement between the Trust and Morgan
Grenfell. The proposal and the results of the shareholder meeting are set
forth below.
1. Proposal to approve Morgan Grenfell as investment adviser of the
Portfolio and to approve the new investment advisory agreement relating
to the Portfolio between the Trust and Morgan Grenfell.
Shares Voted
--------------
For 8,955,686
Against 71
Abstain 29,339
There were no broker non-votes submitted and no other proposals voted on
at such meeting.
63
<PAGE>
NOTES TO FINANCIAL STATEMENTS
================================================================================
SEI TAX EXEMPT TRUST -- AUGUST 31, 1996
II. At a special meeting of shareholders held on April 16, 1996, shareholders of
the Intermediate-Term Municipal Portfolio (the "Portfolio") voted on a
series of proposals. The proposals and the results of the shareholder
meeting are set forth below.
1. Authorize the Trust's Board of Trustees to appoint additional or
replacement sub-advisers recommended by SEI Financial Management
Corporation ("SFM") for the Portfolio's Shareholders of the contacts
pursuant to which such sub-advisers serve.
Shares Voted
--------------
For 4,660,163
Against 261,182
Abstain 3,199
2. Approve the selection of SFM as the investment adviser for the
Portfolio, and to approve the Investment Advisory Agreement between
the Trust, on behalf of the Portfolio, and SFM.
Shares Voted
--------------
For 4,178,187
Against 743,158
Abstain 3,199
3. Approve the selection of Standish, Ayer & Wood, Inc. ("SAW") as an
investment sub-adviser for the Portfolio, and to approve the form of
investment sub-advisory agreement between SFM and SAW.
Shares Voted
--------------
For 4,776,803
Against 139,371
Abstain 8,381
There were no broker non-votes submitted and no other proposals voted on at
such meeting.
III. At a special meeting of shareholders held on August 14, 1996,
shareholders of the SEI Tax Exempt Trust (the "Trust") voted to approve the
selection of the Trust's Board of Trustees. The proposal and the results of
the shareholder meeting are set forth below.
1. Election of Trustees
SHARES VOTED
TRUSTEE "FOR"
------- -------------
Robert A. Nesher 1,321,644,859
Frank E. Morris 1,432,333,985
William M. Doran 1,321,356,731
F. Wendell Gooch 1,321,333,985
James M. Storcy 1,321,333,985
George J. Sullivan, Jr. 1,321,333,985
There were no broker non-votes submitted and no other proposals voted on
at such meeting.
64
<PAGE>
This page is left intentionally blank.
65
<PAGE>
NOTES TO FINANCIAL STATEMENTS (concluded)
================================================================================
SEI TAX EXEMPT TRUST -- AUGUST 31, 1996
9. SHARE TRANSACTIONS (000):
<TABLE>
<CAPTION>
--------------------- --------------------- --------------------- ---------------------
BAINBRIDGE INSTITUTIONAL
TAX CALIFORNIA TAX TAX
FREE TAX EXEMPT EXEMPT FREE
PORTFOLIO PORTFOLIO PORTFOLIO1 PORTFOLIO
--------------------- --------------------- --------------------- ---------------------
1996 1995 1996 1995 1996 1995 1996 1995
--------- --------- --------- --------- --------- --------- --------- ---------
SHARES ISSUED AND REDEEMED:
Class A:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares Issued 1,426,417 1,502,741 232,581 193,641 29,983 256,460 4,958,411 5,130,777
Shares Issued in Lieu
of Cash Distributions 357 74 55 8 -- -- 776 1,645
Shares Redeemed 1,464,041) (1,483,956) (218,860) (194,711) (179,210) (268,046) (4,912,703) (5,179,065)
--------- --------- --------- --------- --------- --------- --------- ---------
Total Class A Transactions (37,267) 18,859 13,776 (1,062) (149,227) (11,586) 46,484 (46,643)
--------- --------- --------- --------- --------- --------- --------- ---------
Class B(2):
Shares Issued -- -- -- 41,150 -- -- 69,063 77,163
Shares Issued in Lieu
of Cash Distributions -- -- -- -- -- -- 58 69
Shares Redeemed -- -- -- (44,406) -- -- (70,053) (83,875)
--------- --------- --------- --------- --------- --------- --------- ---------
Total Class B Transactions -- -- -- (3,256) -- -- (932) (6,643)
--------- --------- --------- --------- --------- --------- --------- ---------
Class C:
Shares Issued -- -- -- -- -- -- 82,543 --
Shares Issued in Lieu
of Cash Distributions -- -- -- -- -- -- -- --
Shares Redeemed -- -- -- -- -- -- (63,337) --
--------- --------- --------- --------- --------- --------- --------- ---------
Total Class C Transactions -- -- -- -- -- -- 19,206 --
--------- --------- --------- --------- --------- --------- --------- ---------
Class D(3):
Shares Issued 1,615 4,827 -- -- -- -- -- --
Shares Issued in Lieu
of Cash Distributions -- -- -- -- -- -- -- --
Shares Redeemed (1,881) (4,555) -- -- -- -- -- --
--------- --------- --------- --------- --------- --------- --------- ---------
Total Class D Transactions (266) 272 -- -- -- -- -- --
--------- --------- --------- --------- --------- --------- --------- ---------
Class G(4):
Shares Issued -- -- 744,985 675,735 -- -- -- --
Shares Issued in Lieu
of Cash Distributions -- -- 8,087 6,682 -- -- -- --
Shares Redeemed -- -- (730,352) (672,528) -- -- -- --
--------- --------- --------- --------- --------- --------- --------- ---------
Total Class G Transactions -- -- 22,720 9,889 -- -- -- --
--------- --------- --------- --------- --------- --------- --------- ---------
Increase (Decrease) in Capital Shares (37,533) 19,131 36,496 5,571 (149,227) (11,586) 64,758 (53,286)
--------- --------- --------- --------- --------- --------- --------- ---------
</TABLE>
<TABLE>
<CAPTION>
--------------------- --------------------- --------------------- ---------------------
PENNSYLVANIA INTERMEDIATE- KANSAS
TAX TERM PENNSYLVANIA TAX FREE
FREE MUNICIPAL MUNICIPAL INCOME
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------------------- --------------------- --------------------- ---------------------
1996 1995 1996 1995 1996 1995 1996 1995
--------- --------- --------- --------- --------- --------- --------- ---------
SHARES ISSUED AND REDEEMED:
Class A:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares Issued 209,781 126,868 6,976 4,110 1,365 889 1,719 994
Shares Issued in Lieu
of Cash Distributions 60 14 129 108 16 15 -- --
Shares Redeemed (192,915) (119,535) (3,269) (7,494) (1,869) (3,027) (1,057) (754)
--------- --------- --------- --------- --------- --------- --------- ---------
Total Class A Transactions 16,926 7,347 3,836 (3,276) (488) (2,123) 662 240
--------- --------- --------- --------- --------- --------- --------- ---------
Class B(2):
Shares Issued -- -- -- -- -- -- -- --
Shares Issued in Lieu
of Cash Distributions -- -- -- -- -- -- -- --
Shares Redeemed -- -- -- -- -- -- -- --
--------- --------- --------- --------- --------- --------- --------- ---------
Total Class B Transactions -- -- -- -- -- -- -- --
--------- --------- --------- --------- --------- --------- --------- ---------
Class C:
Shares Issued -- -- -- -- -- -- -- --
Shares Issued in Lieu
of Cash Distributions -- -- -- -- -- -- -- --
Shares Redeemed -- -- -- -- -- -- -- --
--------- --------- --------- --------- --------- --------- --------- ---------
Total Class C Transactions -- -- -- -- -- -- -- --
--------- --------- --------- --------- --------- --------- --------- ---------
Class D(3):
Shares Issued -- -- -- 2 -- -- -- --
Shares Issued in Lieu
of Cash Distributions -- -- 1 5 -- -- -- --
Shares Redeemed -- -- (53) (61) -- -- -- --
--------- --------- --------- --------- --------- --------- --------- ---------
Total Class D Transactions -- -- (52) (54) -- -- -- --
--------- --------- --------- --------- --------- --------- --------- ---------
Class G(4):
Shares Issued -- -- -- -- -- -- -- --
Shares Issued in Lieu
of Cash Distributions -- -- -- -- -- -- -- --
Shares Redeemed -- -- -- -- -- -- -- --
--------- --------- --------- --------- --------- --------- --------- ---------
Total Class G Transactions -- -- -- -- -- -- -- --
--------- --------- --------- --------- --------- --------- --------- ---------
Increase (Decrease) in Capital Shares 16,926 7,347 3,784 (3,330) (488) (2,123) 662 240
--------- --------- --------- --------- --------- --------- --------- ---------
<FN>
1 THE BAINBRIDGE TAX EXEMPT PORTFOLIO CLOSED ON DECEMBER 15, 1995
2 ON JULY 12, 1995, CALIFORNIA TAX EXEMPT PORTFOLIO CLASS B CLOSED.
3 ON JUNE 30, 1996, INTERMEDIATE-TERM MUNICIPAL PORTFOLIO CLASS D CLOSED.
4 ON MAY 1, 1996, THE CALIFORNIA TAX EXEMPT PORTFOLIO CLASS C SHARES WERE
REDESIGNATED TO CLASS G SHARES.
</FN>
</TABLE>
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
66 & 67
<PAGE>
NOTICE TO SHAREHOLDERS (unaudited)
===============================================================================
SEI TAX EXEMPT TRUST -- AUGUST 31, 1996
For shareholders that do not have an August 31, 1996 tax year end, this
notice is for informational purposes only. For shareholders with an August 31,
1996 tax year end, please consult your tax advisor as to the pertinence of this
notice.
For the fiscal year ended August 31, 1996, each fund is designating the
following items with regard to distributions paid during the year.
(A)
LONG-TERM (B) (C)
CAPITAL ORDINARY (A+B)
GAINS INCOME TOTAL
DISTRIBUTIONS DISTRIBUTIONS DISTRIBUTIONS
FUND (TAX BASIS) (TAX BASIS) (TAX BASIS)
---- -------------- ------------- --------------
Tax Free Portfolio 0% 100% 100%
California Tax Exempt Portfolio 0% 100% 100%
Bainbridge Tax Exempt Portfolio 0% 100% 100%
Institutional Tax Free Portfolio 0% 100% 100%
Pennsylvania Tax Free Portfolio 0% 100% 100%
Intermediate-Term Municipal Portfolio 0% 100% 100%
Pennsylvania Municipal Portfolio 0% 100% 100%
Kansas Tax Free Income Portfolio 0% 100% 100%
(D) (E) (F)
QUALIFYING TAX EXEMPT FOREIGN
FUND DIVIDENDS(1) INTEREST TAX CREDIT
---- -------------- ------------- --------------
Tax Free Portfolio 0% 100% 0%
California Tax Exempt Portfolio 0% 100% 0%
Bainbridge Tax Exempt Portfolio 0% 100% 0%
Institutional Tax Free Portfolio 0% 100% 0%
Pennsylvania Tax Free Portfolio 0% 100% 0%
Intermediate-Term Municipal Portfolio 0% 99% 0%
Pennsylvania Municipal Portfolio 0% 100% 0%
Kansas Tax Free Income Portfolio 0% 100% 0%
(1) QUALIFYING DIVIDENDS REPRESENT DIVIDENDS WHICH QUALIFY FOR THE CORPORATE
DIVIDENDS RECEIVED DEDUCTION. * ITEMS (A) AND (B) ARE BASED ON A PERCENTAGE
OF EACH FUND'S TOTAL DISTRIBUTIONS.
** ITEMS (D) AND (E) ARE BASED ON A PERCENTAGE OF ORDINARY INCOME DISTRIBUTIONS
OF EACH FUND.
68
<PAGE>
====================
SEI TAX EXEMPT TRUST
====================
ANNUAL REPORT
====================
AUGUST 31, 1996
Robert A. Nesher
CHAIRMAN
TRUSTEES
William M. Doran
F. Wendell Gooch
Frank E. Morris
James M. Storey
George J. Sullivan, Jr.
OFFICERS
David G. Lee
PRESIDENT AND CHIEF EXECUTIVE OFFICER
Todd Cipperman
VICE PRESIDENT, ASSISTANT SECRETARY
Joseph Lydon
VICE PRESIDENT, ASSISTANT SECRETARY
Kathryn L. Stanton
VICE PRESIDENT, ASSISTANT SECRETARY
Sandra K. Orlow
VICE PRESIDENT, ASSISTANT SECRETARY
Kevin P. Robins
VICE PRESIDENT, ASSISTANT SECRETARY
Barbara A. Nugent
VICE PRESIDENT, ASSISTANT SECRETARY
Marc H. Cahn
VICE PRESIDENT, ASSISTANT SECRETARY
Stephen G. Meyer
CONTROLLER, CHIEF FINANCIAL OFFICER
Richard W. Grant
SECRETARY
John H. Grady, Jr.
ASSISTANT SECRETARY
INVESTMENT ADVISERS
INTRUST Bank, NA:
KANSAS TAX FREE INCOME PORTFOLIO
Morgan Grenfell Capital Management Incorporated
PENNSYLVANIA MUNICIPAL PORTFOLIO
SEI Financial Management Corporation:
INTERMEDIATE-TERM MUNICIPAL PORTFOLIO
Weiss, Peck & Greer L.L.C.:
TAX FREE PORTFOLIO
CALIFORNIA TAX EXEMPT PORTFOLIO
INSTITUTIONAL TAX FREE PORTFOLIO
PENNSYLVANIA TAX FREE PORTFOLIO
MANAGER AND SHAREHOLDER SERVICING AGENT
SEI Fund Management
DISTRIBUTOR
SEI Financial Services Company
LEGAL COUNSEL
Morgan, Lewis & Bockius LLP
INDEPENDENT PUBLIC ACCOUNTANTS
Arthur Andersen 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 FINANCIAL
SERVICES COMPANY, THE DISTRIBUTOR OF THE SEI FUNDS, IS NOT AFFILIATED WITH ANY
BANK.
FOR MORE INFORMATION CALL 1[BULLET]800[BULLET]DIAL[BULLET]
SEI/ 1[BULLET]800[BULLET]342[BULLET]5734
<PAGE>
[Logo Omitted]
FINANCIAL
SERVICES
COMPANY
680 East Swedesford Road
Wayne, PA 19087-1658
800-DIAL-SEI/800-342-5734
SEI-F-024-07
