ANNUAL REPORT AS OF
AUGUST 31, 1997
SEI TAX EXEMPT
TRUST
================================================================================
Tax Free Portfolio
================================================================================
California Tax Exempt Portfolio
================================================================================
Institutional Tax Free Portfolio
================================================================================
Pennsylvania Tax Free Portfolio
================================================================================
Intermediate-Term Municipal Portfolio
================================================================================
Pennsylvania Municipal Portfolio
================================================================================
[SEI Investments Logo Omitted]
<PAGE>
TABLE OF CONTENTS
================================================================================
LETTER TO SHAREHOLDERS .............................................. 1
MUNICIPAL BOND MARKET OVERVIEW ...................................... 2
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FUND PERFORMANCE ............................................ 3
REPORT OF INDEPENDENT ACCOUNTANTS ................................... 5
STATEMENT OF NET ASSETS.............................................. 6
STATEMENT OF OPERATIONS.............................................. 47
STATEMENT OF CHANGES IN NET ASSETS................................... 49
FINANCIAL HIGHLIGHTS................................................. 51
NOTES TO FINANCIAL STATEMENTS........................................ 54
NOTICE TO SHAREHOLDERS .............................................. 60
<PAGE>
LETTER TO SHAREHOLDERS
================================================================================
SEI TAX EXEMPT TRUST -- AUGUST 31, 1997
TO OUR SHAREHOLDERS:
In the fiscal year ending August 31, 1997, yields in the municipal markets,
while somewhat volatile, ended lower than they began. Despite Federal Reserve
Chairman Greenspan's attempt to warn the markets of "irrational exuberance," the
domestic economy continued to display signs of expansion. Portfolio managers
interpreted this to mean lower rates, and extended maturities.
The Federal Reserve perceived the economy to be rebounding during the last half
of 1996 and the first quarter of 1997. The result was an increase in the
targeted level of interest rates to 5.50%. This move marked the first in over
one year. While this increase was expected, in the period that followed,
economic indicators showed mixed degrees of strength, and introduced more
volatility to the markets.
Recently, the uncertainty over the short-term direction for interest rates has
resulted in increased volatility. While inflationary pressures appear poised to
remain in the recent range. Chairman Greenspan continually reminds the markets
to be wary that these pressures may increase, especially given the extended
growth patterns and employment level in the domestic economy. These two opposing
forces leave a bias for higher rates rather than lower rates. With the tax
legislation behind us, the advisors will review the information available and
position the portfolios accordingly, while keeping in mind each fund's
investment objectives.
Thank you for your continued confidence in the SEI Tax Exempt Trust.
Sincerely,
[Sig Omitted]
David G. Lee
PRESIDENT
1
<PAGE>
MUNICIPAL BOND MARKET OVERVIEW
================================================================================
SEI TAX EXEMPT TRUST -- AUGUST 31, 1997
For the fiscal year-ended August 31, 1997, the municipal bond market
underperformed the Treasury market for a variety of reasons. First, many
investors shied away from municipal bonds due to `rate shock' as their yields
were deemed too low to warrant purchase. On a value basis, many traditional
municipal investors opted to purchase other assets due to the relative
`richness' of tax-exempt issues versus comparable Treasuries. A surging equity
market also played a role in reducing demand for municipal issues. Instead of
investing in bonds, many participants put their dollars into stocks hoping to
achieve high levels of return. Lastly, at key times during the fiscal year,
municipal bond prices came under pressure from increased supply as issuers
rushed to float new securities to take advantage of the low interest rate
environment.
For the last four months of 1996, both the Treasury and municipal markets
rallied on positive inflation data. A case in point was October's employment
cost report which indicated that wage inflation was not prevalent in an already
tight labor market. Nevertheless, municipal bonds rallied less than Treasuries
through calendar year end. The main culprits were an increase in new issue
supply during the fourth quarter combined with `rate shock.' Rate shock normally
occurs when long municipal yields drop below the psychological 6% barrier. As of
December 31, 1996, 30-year AAA-rated general obligation yields stood at
approximately 5.4%.
However, for the first three months of 1997, the fixed income markets bounced in
the other direction. The economy showed considerable strength which in turn led
to increased fears of inflation and therefore, lower bond prices. Furthermore,
the Federal Reserve raised its Fed Funds rates by 25 basis points. Both
municipals and taxable issues were negatively impacted by these developments.
Notwithstanding, both markets showed resilience from April through July as a
series of reports continued to indicate that inflation was not on the rise. For
example, consumer and producer price reports persistently pointed to low
inflation. In addition, decreases in new and existing home sales further
provided evidence of controlled economic growth. Municipals lagged Treasuries
during this period again due to `rate shock,' increases in new issue supply, and
strong demand for equities. The month of August presented a slight setback for
the fixed income markets as unemployment reports and the Philadelphia Fed Survey
served to increase inflation fears. In summary, over the last year municipal
bonds underperformed Treasuries due to both supply and demand factors. As an
indication, over the fiscal year ended August 31, 1997, the municipal bond
yields fell by 8 to 41 basis points across the AAA-rated general obligation
scale while Treasury yields fell by 32 to 59 basis points across all maturities.
2
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FUND PERFORMANCE
================================================================================
SEI TAX EXEMPT TRUST -- AUGUST 31, 1997
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 fiscal year ended August 31, 1997, the SEI
Intermediate-Term Municipal Portfolio, Class A (the "Portfolio") posted a total
return of 7.93% versus a total return of 6.69% for the Lehman Brothers 5 Year
G.O. Index (the "Benchmark") and 7.61% for the Lehman Brothers 3 to 10 Year
Blend Municipal Index.
The main driver of the current year outperformance versus the Benchmark
was the Portfolio's longer duration posture during a period of falling interest
rates. Furthermore, the Portfolio maintained sizable allocation to California
and Texas issues. Throughout the fiscal year, both states have benefited from
improving credit fundamentals. As a result, California and Texas posted
strong performance compared to the overall market. In general, the Portfolio
also maintained a strong yield advantage over the Benchmark through investment
in higher yielding sectors such as housing bonds.
Similarly, a longer duration posture also explains much of the Portfolio's
outperformance against the Lehman Brothers 3 to 10 Year Index. Moreover, during
the twelve month period, the Portfolio maintained a barbelled yield curve
posture. This structure benefited return since the AAA-rated G.O. scale
flattened considerably as rates fell throughout the year. A sizable exposure to
hospital issues further augmented Portfolio return and yield. Yield spreads on
hospital bonds have tightened in recent months as investors diligently search
for value in an environment characterized by low interest rates.
================================================================================
INTERMEDIATE-TERM MUNICIPAL
================================================================================
AVERAGE ANNUAL TOTAL RETURN1
- --------------------------------------------------------------------------------
One Annualized Annualized Annualized Cumulative
Year 3-Year 5-Year Inception Inception
Return Return Return to Date to Date
- --------------------------------------------------------------------------------
Intermediate-Term
Municipal 7.93% 6.39% 5.65% 6.36% 63.63
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN THE SEI TAX EXEMPT
TRUST INTERMEDIATE-TERM MUNICIPAL BOND FUND, VERSUS THE LEHMAN BROTHERS
5 YEAR G.O. INDEX
[LINE GRAPH OMIITED}
PLOT POINTS ARE AS FOLLOWS:
TAX EXEMPT LEHMAN
9/30/89 10000 10000
8/90 10522 10670
8/91 11450 11747
8/92 12427 12912
8/93 13498 14053
8/94 13586 14384
8/95 14609 15442
8/96 15158 16029
8/97 16360 17100
1 FOR THE PERIODS ENDED AUGUST 31, 1997. PAST PERFORMANCE IS
NO INDICATION OF FUTURE PERFORMANCE.
3
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FUND PERFORMANCE
================================================================================
SEI TAX EXEMPT TRUST -- AUGUST 31, 1997
PENNSYLVANIA MUNICIPAL PORTFOLIO
OBJECTIVE. 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. The SEI Pennsylvania Municipal Portfolio (the "Portfolio") posted
a total return of 8.08% compared to a total return of 6.69% for the Portfolio's
benchmark (the "Benchmark"), the Lehman Brothers 5 Year G.O. Municipal Bond
Index. During the same period, the Lehman M.F. Pennsylvania Intermediate
Municipal Index returned 7.67%.
The Portfolio's outperformance against the Benchmark was primarily the
result of its duration posture. During the fiscal year, the Portfolio was able
to more fully participate in the market rally due to its longer duration versus
the Benchmark. Furthermore, the Portfolio's strategy allowed it to maintain a
yield advantage compared to the Benchmark. Specifically, the Portfolio's
positions in pre-refunded sinking fund issues offered higher yields due to
investor preference in the marketplace. Most market participants undervalue
these securities as they lack the expertise to analyze such sinking fund
features. An allocation to hospital bonds also helped bolster Portfolio yield
versus the Benchmark.
For the twelve month period ended August 31, 1997, the Portfolio also
outperformed the Lehman M.F. Pennsylvania Intermediate Index. Most of the
outperformance was attributable to the Portfolio's higher average yield compared
to the index. As stated above, the Portfolio's higher yield stems from its
positions in pre-refunded and hospital sectors. In particular, hospital issues
can offer additional yield to a portfolio due to investor desire to avoid this
sector of the market. News reports pertaining to the possible negative effects
of managed healthcare and consolidation have caused many market participants to
avoid hospital credits. However, prudent investment in higher quality hospitals
can boost portfolio yield and return.
================================================================================
PENNSYLVANIA MUNICIPAL
================================================================================
AVERAGE ANNUAL TOTAL RETURN1
- --------------------------------------------------------------------------------
One Annualized Annualized Annualized Cumulative
Year 3-Year 5-Year Inception Inception
Return Return Return to Date to Date
- --------------------------------------------------------------------------------
Pennsylvania
Municipal 8.08% 6.27 5.74% 6.54% 66.44%
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN THE SEI TAX EXEMPT
TRUST PENNSYLVANIA MUNICIPAL BOND FUND, VERSUS THE LEHMAN BROTHERS
5 YEAR G.O. INDEX
[LINE GRAPH OMIITED}
PLOT POINTS ARE AS FOLLOWS:
TAX EXEMPT LEHMAN
8/31/89 10000 10000
8/90 10530 10675
8/91 11562 11752
8/92 12587 12918
8/93 13709 14060
8/94 13865 14290
8/95 14810 15449
8/96 15396 16036
8/97 16640 17108
1 FOR THE PERIODS ENDED AUGUST 31, 1997. PAST PERFORMANCE IS NO INDICATION
OF FUTURE PERFORMANCE
4
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
================================================================================
TO THE SHAREHOLDERS AND 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, and Pennsylvania Municipal Portfolios of SEI Tax
Exempt Trust (the "Trust") as of August 31, 1997, and the related statements of
operations, 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, 1997, by correspondence with the custodian and the application of
alternative auditing procedures with respect to unsettled securities
transactions. 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, and Pennsylvania Municipal Portfolios of SEI Tax
Exempt Trust as of August 31, 1997, the results of their operations, changes in
their net assets, and financial highlights for the periods presented, in
conformity with generally accepted accounting principles.
ARTHUR ANDERSEN LLP
Philadelphia, Pa.
October 17, 1997
5
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
SEI TAX EXEMPT TRUST -- AUGUST 31, 1997
TAX FREE PORTFOLIO
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS -- 98.5%
ALABAMA -- 0.5%
Tuscaloosa County, Industrial
Development Revenue, Field
Container Corporation, VRDN,
RB (A) (B) (C)
3.350%, 09/09/97 $1,950 $ 1,950
--------
ARIZONA -- 1.6%
Chandler Industrial Development
Authority, Parsons Municipal
Series Project, VRDN, RB
(A) (B) (C)
3.750%, 09/09/97 3,900 3,900
Tuscon Industrial Development
Authority, Tuscon City Center
Parking Project, Ser A, VRDN,
RB (A) (B) (C)
3.475%, 09/09/97 2,875 2,875
--------
6,775
--------
CALIFORNIA -- 3.7%
Alameda County, TRAN
4.500%, 07/22/98 5,000 5,026
Higher Education Loan Authority,
Student Loan Revenue, VRDN,
RB (A) (B) (C)
Mandatory Put
4.000%, 07/01/98 2,500 2,500
Higher Education Loan Authority,
Student Loan Revenue, Ser D-1,
VRDN, RB (A) (B) (C)
4.000%, 08/01/98 1,600 1,600
Yolo County, TRAN
4.500%, 07/02/98 6,760 6,795
--------
15,921
--------
COLORADO -- 4.5%
Denver City & County Revenue,
Helen Bonfils Theatre Project,
VRDN, RB (A) (B) (C)
3.500%, 09/09/97 1,200 1,200
Fraser Industrial Development
Revenue, Safeway Project,
VRDN, RB (A) (B) (C)
3.900%, 12/01/97 1,600 1,600
Housing Finance Authority, Multi-
Family Housing, Cambray Park
Project, VRDN, RB (A) (B) (C)
3.450%, 09/09/97 2,900 2,900
Housing Finance Authority, Multi-
Family Housing Central Park Project,
VRDN, RB (A) (B) (C)
3.400%, 09/09/97 5,750 5,750
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Housing Finance Authority, Multi-
Family Housing, Grants Plaza
Project A, VRDN, RB (A) (B) (C)
3.475%, 09/09/97 $1,500 $ 1,500
Housing Finance Authority, Multi-
Family Housing, Woodstream
Project, VRDN, RB (A) (B) (C)
3.450%, 09/09/97 2,500 2,500
Jefferson County, Industrial
Development Revenue, Southwest
Medpro Project, VRDN,
RB (A) (B) (C)
3.500%, 09/09/97 550 550
Moffat County, Pollution Control
Revenue, Pacificorp Project,
VRDN, RB (A) (B) (C)
3.750%, 09/02/97 1,000 1,000
Panorama Metropolitan District,
Ser B, VRDN, RB (A) (B) (C)
3.700%, 12/01/97 1,000 1,000
Regents of University of Colorado,
Refunding Telcom and Cogen
Projects, COP
4.500%, 12/01/97 1,260 1,261
--------
19,261
--------
DISTRICT OF COLUMBIA -- 0.1%
District of Columbia, Washington,
Ser B-1, VRDN, RB (A) (B) (C)
3.850%, 09/02/97 200 200
--------
FLORIDA -- 3.4%
Boca Raton Industrial Development
Authority, Parking Garage Project,
Ser 84-A, VRDN, RB (A) (B) (C)
3.725%, 09/09/97 3,125 3,125
Dade County, Aviation Revenue
Refunding, Ser X, RB
4.600%, 10/01/97 450 450
Housing Finance Agency, Multi-
Family Ser 1984-A, VRDN,
RB (A) (B) (C)
3.850%, 09/09/97 2,300 2,300
Housing Finance Agency, Multi-
Family Housing Lakeside Project,
VRDN, RB (A) (B) (C)
3.475%, 09/09/97 700 700
Lee County, Industrial Development
Authority, Christian & Missionary
Project, VRDN, RB (A) (B) (C)
3.475%, 09/09/97 2,565 2,565
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
6
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Orange County, Education Facilities
Authority, Rollins College Project,
VRDN, RB (A) (B) (C)
3.400%, 09/09/97 $2,100 $ 2,100
Orange County, Industrial
Development Authority, University
of Central Florida Foundation,
Ser PJ-A, VRDN, RB (A) (B) (C)
3.400%, 09/09/97 1,000 1,000
Pasco County, Housing Facility
Authority, Multi-Family Housing
Revenue, Carlton Arms Magnolia
Project, VRDN, RB (A) (B) (C)
3.475%, 09/09/97 1,000 1,000
Pinellas County, Health Facilities
Authority, Pooled Hospital Loan
Project, VRDN, RB (A) (B) (C)
3.750%, 09/02/97 1,300 1,300
--------
14,540
--------
GEORGIA -- 5.4%
Catoosa County, Industrial
Development Authority, Galaxy
Carpet Project, VRDN, RB (A) (B) (C)
3.500%, 09/09/97 6,500 6,500
Clayton County, Multi-Family
Housing Revenue, Rivers Edge
Project, VRDN, RB (A) (B) (C)
3.450%, 09/09/97 1,000 1,000
DeKalb County, Development
Authority Revenue, Dart Container
Project, VRDN, RB (A) (B) (C)
4.000%, 09/09/97 1,000 1,000
DeKalb County, Georgia Hospital
Authority, Egleston Childrens
Hospital Project, VRDN, RB
(A) (B) (C)
3.300%, 09/09/97 2,200 2,200
Fulton County Development
Authority, Robert W. Woodruff
Arts Center Project, VRDN,
RB (A) (B) (C)
3.400%, 09/09/97 3,500 3,500
Gordon Industrial Development
Authority, Federal Paper Board
Incorporated Project, Ser 92,
VRDN, RB (A) (B) (C)
3.450%, 09/09/97 2,000 2,000
Newton Industrial Development
Revenue, H.B. Fuller Project, Ser 84,
VRDN, RB (A) (B) (C)
3.500%, 09/09/97 3,100 3,100
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Richmond County Industrial
Development Authority, Federal
Paper Board Project, Ser 92,
VRDN, RB (A) (B) (C)
3.450%, 09/09/97 $1,000 $ 1,000
Savannah Housing Authority,
Somerset Wharf Project, Ser B,
VRDN, RB (A) (B) (C)
3.350%, 09/09/97 2,000 2,000
Whitfield County, Residential Care
Facility Authority, Royal Oaks
Senior Living Community Project,
VRDN, RB (A) (B) (C)
3.400%, 09/09/97 1,000 1,000
--------
23,300
--------
ILLINOIS -- 9.9%
East Peoria, Multi-Family Housing
Revenue, Radnor East Project,
VRDN, RB (A) (B) (C)
3.600%, 09/09/97 1,585 1,585
Illinois Development Financing
Authority, Dart Container Project,
VRDN, RB (A) (B) (C)
3.458%, 09/09/97 1,300 1,300
Illinois Development Financing
Authority, Diamond Star Motors
Project, VRDN, RB (A) (B) (C)
3.800%, 09/09/97 2,900 2,900
Illinois Educational Facilities
Authority Revenue, Illinois
College of Optometry Project,
VRDN, RB (A) (B) (C)
3.650%, 09/09/97 3,365 3,365
Illinois Health Facilities Authority
Revenue, Advocate Healthcare
Network, Ser B, VRDN, RB (A) (B)
3.300%, 09/09/97 11,800 11,800
Illinois Health Facilities Authority,
Central Health & New Community
Hospital Project, VRDN,
RB (A) (B) (C)
3.400%, 09/09/97 3,690 3,690
Kane County School District #131,
Aurora East Side, TAW
4.250%, 09/29/97 2,250 2,251
Oak Forest County, Mode-Homewood
Pool Project, VRDN, RB (A) (B) (C)
3.350%, 09/09/97 5,000 5,000
Peoria Economic Development,
North Point Shopping Center
Project, VRDN, RB (A) (B) (C)
3.900%, 12/01/97 2,270 2,270
7
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
SEI TAX EXEMPT TRUST -- AUGUST 31, 1997
TAX FREE PORTFOLIO--CONTINUED
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Skokie Industrial Development
Authority, Fashion Square Project,
VRDN, RB (A) (B) (C)
3.725%, 09/09/97 $2,800 $ 2,800
St. Clair County Industrial Building
Authority, Winchester Apartments
Project, Ser 94, VRDN, RB (A) (B) (C)
3.850%, 09/09/97 3,000 3,000
State Development Finance
Authority, Catholic Charities
Project, Ser B, VRDN, RB
(A) (B) (C)
3.400%, 09/09/97 2,655 2,655
--------
42,616
--------
INDIANA -- 5.9%
Gary Environmental Improvement,
US Steel, VRDN, RB (A) (B) (C)
3.750%, 09/09/97 9,800 9,800
Indiana Development Finance
Authority, Industrial Development
Revenue, Goodwill Industries
Center Project, VRDN,
RB (A) (B) (C)
3.450%, 09/09/97 1,300 1,300
Indiana Health Facilities Finance
Authority, Lutherwood Project,
VRDN, RB (A) (B) (C)
3.500%, 09/09/97 900 900
Lake Central School Authority, TAW
4.100%, 12/31/97 1,500 1,501
Merrillville Community School, TAW
4.000%, 12/31/97 3,500 3,502
Muncie, TAW
4.000%, 12/31/97 1,100 1,101
Plymouth Community School, TAW
4.000%, 12/30/97 654 654
Portage, Economic Development
Revenue, VRDN, RB (A) (B) (C)
3.500%, 09/09/97 700 700
Princeton Pollution Control
Refunding, PSI Indiana Project
VRDN, RB (A) (B) (C)
3.750%, 09/02/97 1,200 1,200
Residential Apartments, 1 Portfolio
Cert. Trust, Ser 96A, VRDN, RB
(A) (B) (C)
3.550%, 09/09/97 3,850 3,850
Warsaw County, Community
School Project, TAW
4.400%, 12/31/97 1,000 1,001
--------
25,509
--------
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
IOWA -- 0.9%
Davenport County, TAW
4.375%, 07/01/98 $1,500 $ 1,504
Des Moines Private College Revenue,
Drake University Project, Ser B,
Pre-Refunded @ 102 (D)
6.800%, 12/01/97 1,655 1,700
Higher Education Loan Authority,
Palmer Chiropractic Foundation
Project, VRDN, RB (A) (B) (C)
3.850%, 09/02/97 700 700
--------
3,904
--------
KANSAS -- 0.1%
Salina, Central Mall Dillard, Ser 84,
VRDN, RB (A) (B)
3.600%, 09/09/97 495 495
--------
KENTUCKY -- 0.6%
Jefferson County, Industrial
Development Revenue Authority,
BelKnap Project, VRDN, RB
(A) (B) (C)
3.700%, 09/09/97 1,358 1,358
Local Correctional Facilities
Construction Authority RB,
Pre-Refunded @ 102 (D)
7.400%, 11/01/97 1,000 1,026
--------
2,384
--------
MARYLAND -- 0.6%
Howard County, Multi-Family
Housing Authority, Sherwood
Crossing Project, VRDN,
RB (A) (B) (C)
3.750%, 06/01/98 1,500 1,500
Maryland Health & Higher
Education Facilities Authority,
Kennedy Krieger, VRDN,
RB (A) (B) (C)
3.450%, 09/09/97 400 400
Prince Georges County Housing
Authority, VRDN, RB (A) (B) (C)
3.475%, 09/09/97 625 625
--------
2,525
--------
MASSACHUSETTS -- 0.3%
Brockton County, RAN
4.500%, 06/30/98 1,500 1,504
--------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
8
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
MICHIGAN -- 0.4%
Sterling Heights Economic
Development, Sterling Shopping
Center, VRDN, RB (A) (B) (C)
3.450%, 09/09/97 $1,885 $ 1,885
--------
MINNESOTA -- 1.1%
Eagan County, Yankee Square Inn
Project, VRDN, RB (A) (B) (C)
3.450%, 09/09/97 1,025 1,025
Golden Valley Industrial
Development Revenue, Graco
Project, VRDN, RB (A) (B) (C)
3.600%, 09/09/97 1,120 1,120
Minnesota School Districts, Tax &
Aid Anticipation Borrowing
Program, Ser 96-B, COP
4.500%, 09/09/97 900 900
St. Paul County, Housing &
Redevelopment Authority, District
Heating Revenue, Ser A,
VRDN, RB (A) (B) (C)
3.450%, 09/09/97 1,750 1,750
--------
4,795
--------
MISSOURI -- 0.7%
Development Finance Board
Authority, Infrastructure Facility
Revenue, Midtown Redevelopment
Project, VRDN, RB (A) (B) (C)
3.600%, 09/09/97 2,900 2,900
--------
NEVADA -- 0.1%
Henderson Public Improvement
Trust, Multi-Family Housing,
Pueblo Verde I & II-B Apartment
Project, VRDN, RB (A) (B) (C)
3.450%, 09/09/97 565 565
--------
NEW HAMPSHIRE -- 0.6%
Education & Health Facilities
Authority, Dartmouth Education
Loan Project, VRDN, RB (A) (B)
3.950%, 06/01/98 1,215 1,215
Higher Education and Health
Facility Authority, Dartmouth
Education Loan Project,
VRDN, RB (A) (B)
3.950%, 06/01/98 1,520 1,520
--------
2,735
--------
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
NEW JERSEY -- 0.7%
Economic Development Authority,
Industrial and Economic Revenue,
Carolina Freight Project, VRDN, RB
(A) (B) (C)
3.485%, 09/09/97 $2,190 $ 2,190
New Jersey Economic Development
Authority, Cincinnati Gear
Company, VRDN, RB (A) (B) (C)
3.875%, 10/01/97 975 975
--------
3,165
--------
NEW MEXICO -- 0.5%
Albuquerque Industrial
Development Revenue, Plastech
Project, Ser 94-B, VRDN,
RB (A) (B) (C)
3.450%, 09/09/97 2,005 2,005
--------
NEW YORK -- 8.2%
Freeport School District, TAN
4.250%, 06/29/98 2,000 2,003
Lindenhurst Unified Free School
District Project, TAN
4.250%, 06/24/98 2,500 2,504
Little Falls County, City School
District Project, Ser A, BAN
4.250%, 09/19/97 4,250 4,250
Nassau County, Ser A, RAN
4.250%, 03/10/98 3,800 3,808
North Hempstead, BAN
4.125%, 02/26/98 1,325 1,327
North Hempstead, Ser A, BAN
4.000%, 01/29/98 3,000 3,001
North Hempstead, Ser C, BAN
4.375%, 05/06/98 2,500 2,503
4.500%, 05/06/98 4,500 4,510
North Hempstead, Ser D, BAN
4.100%, 08/07/98 2,730 2,733
North Hempstead, Ser H, BAN
4.250%, 10/30/97 931 932
Ontario County Industrial
Development Authority, Seneca
Foods, VRDN, RB (A) (B) (C)
3.750%, 09/09/97 2,185 2,185
Roosevelt, Free School District, TAN
4.500%, 06/30/98 2,000 2,006
Saratoga County, Shenendehowa
Central School District, RAN
4.100%, 06/17/98 2,000 2,002
9
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
SEI TAX EXEMPT TRUST -- AUGUST 31, 1997
TAX FREE PORTFOLIO--CONTINUED
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
St. Lawrence & Lewis County, Board
Coop Educational Services, Sole
Supervisory District Authority, RAN
4.375%, 06/26/98 $1,600 $ 1,605
--------
35,369
--------
NORTH CAROLINA -- 0.8%
Beaufort Industrial Facility, Pollution
Control Revenue, Texas Gulf
Corporation, VRDN, RB (A) (B) (C)
3.450%, 09/09/97 375 375
Union County, Pollution Control
Finance Authority, Square D
Company Project, VRDN,
RB (A) (B) (C)
3.350%, 09/09/97 2,900 2,900
--------
3,275
--------
NORTH DAKOTA -- 0.6%
Fargo Commercial Development
Revenue, Cass Oil Project,
VRDN, RB (A) (B) (C)
3.450%, 09/09/97 2,500 2,500
--------
OHIO -- 2.3%
Butler County, Hospital Facility
Authority, Middletown Regional
Hospital Project, Ser A, VRDN,
RB (A) (B) (C)
3.350%, 09/09/97 2,000 2,000
Cincinnati & Hamilton County
Port Authority, CEI Realty Project,
VRDN, RB (A) (B) (C)
3.900%, 09/01/97 100 100
Highland County, Industrial
Development Revenue, Lancaster
Colony Corporation Project,
VRDN, RB (A) (B) (C)
3.650%, 09/01/97 900 900
Lima Hospital Revenue, Refunding
and Improvement, Lima Memorial
Hospital Project, VRDN,
RB (A) (B) (C)
3.450%, 09/09/97 2,000 2,000
Montgomery County Economic
Development Revenue, Wayne
Town Center Project, VRDN,
RB (A) (B) (C)
3.700%, 10/01/97 1,025 1,025
Ohio State Air Quality Development
Authority, Ohio Education Project,
Ser C, VRDN, RB (A) (B) (C)
4.400%, 09/01/97 1,000 1,001
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Summit County Industrial
Development Authority, Arlington
Plaza Project, VRDN,
RB (A) (B) (C)
3.650%, 09/02/97 $2,235 $ 2,235
Toledo Industrial Development
Revenue, Countymark Cooperative
Project, VRDN, RB (A) (B) (C)
3.450%, 09/09/97 800 800
--------
10,061
--------
OKLAHOMA -- 3.2%
Bartlesville Development Authority,
Heritage Villa Nursing Center,
VRDN, RB (A) (B) (C)
3.500%, 09/09/97 3,000 3,000
Oklahoma City Industrial
Development Authority, Baptist
General Convention Refunding,
Ser 89, RB (A) (B) (C)
3.950%, 09/02/97 5,000 5,000
Tulsa City, Industrial Health Care
Authority, Laureate Psychiatric
Project, VRDN, RB (A) (B)
3.850%, 12/15/97 3,500 3,500
Tulsa Parking Authority, Refunding
First Mortgage Williams Project 84,
Ser A, VRDN, RB (A) (B) (C)
3.900%, 11/15/97 2,140 2,140
--------
13,640
--------
OREGON -- 0.6%
Port of Portland, Public Grain Elevator
Revenue, Columbia Grain Project,
VRDN, RB (A) (B) (C)
3.600%, 09/09/97 2,565 2,565
--------
PENNSYLVANIA -- 18.4%
Allegheny County, Hospital Development
Authority, Ser A, VRDN, RB (A) (B) (C)
3.400%, 09/02/97 850 850
Berks County Industrial Development
Authority, Rilsaw Industrial Project,
Elf Aquitaine, VRDN, RB (A) (B) (C)
3.475%, 09/09/97 400 400
Bradford County, Industrial
Development Authority, Guthrie
Project, VRDN, RB (A) (B) (C)
3.750%, 09/09/97 1,800 1,800
Bucks County Industrial Development
Authority, Edgcomb Metals Project,
VRDN, RB (A) (B) (C)
3.350%, 09/09/97 705 705
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
10
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Delaware County Industrial
Development Authority, Resource
Recovery Project, Ser G,
VRDN, RB (A) (B)
Callable 12/01/97 @ 100
3.625%, 12/01/97 $1,165 $ 1,165
Delaware Valley, Regional Finance
Authority, Government Revenue,
Ser A, VRDN, RB (A) (B) (C)
3.250%, 09/09/97 2,500 2,500
Delaware Valley, Regional Finance
Authority, Local Government
Revenue, Ser D, VRDN,
RB (A) (B) (C)
3.250%, 09/02/97 1,050 1,050
Emmaus General Authority, VRDN,
RB (A) (B) (C)
3.400%, 09/09/97 9,500 9,500
Erie County Hospital Authority
Revenue, Union City Memorial
Hospital, VRDN, RB (A) (B) (C)
3.450%, 09/09/97 2,100 2,100
Higher Education Facility Authority,
Allegheny College Project, VRDN,
RB (A) (B) (C)
3.300%, 09/09/97 3,000 3,000
Lancaster County, Higher Education
Authority, Franklin & Marshall
College Project, VRDN,
RB (A) (B) (C)
3.400%, 09/09/97 1,835 1,835
Langhorne Hospital Revenue
Authority, Franciscan Health
Systems Project, Ser C, VRDN,
RB (A) (B) (C)
3.650%, 09/02/97 100 100
Lehigh County, General Purpose
Authority, Lehigh Valley Hospital
Project, Ser A, VRDN, RB (A) (B) (C)
3.650%, 09/02/97 1,000 1,000
Montgomery County, Higher
Education & Health Authority,
Holy Redeemer Hospital Project,
VRDN, RB (A) (B) (C)
AMBAC Insured
3.250%, 09/09/97 4,200 4,200
Montgomery County Higher
Education & Health Authority,
Higher Education & Health Loan,
Ser 96-A, VRDN, RB (A) (B) (C)
3.500%, 09/09/97 10,000 10,000
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Montgomery County, Industrial
Development Authority, Ikea
Property Project, VRDN,
RB (A) (B) (C)
3.450%, 09/09/97 $2,800 $ 2,800
Montgomery County, Higher
Education & Health Authority,
Ser A, VRDN, RB (A) (B) (C)
3.500%, 09/09/97 5,000 5,000
Moon Township, Industrial
Development Authority, Executive
Office Association Project,
VRDN, RB (A) (B) (C)
3.450%, 09/09/97 1,500 1,500
Moon Township Industrial
Development Revenue, Executive
Office Project, Ser 91-A,
VRDN, RB (A) (B) (C)
3.450%, 09/09/97 800 800
North Umberland County
Industrial Development
Authority, Atlas Development,
VRDN, RB (A) (B) (C)
3.450%, 09/09/97 1,800 1,800
Pennsylvania Higher Education
Facility, Carnegie Mellon
University Project, Ser C,
VRDN, RB (A) (B) (C)
3.700%, 09/02/97 2,000 2,000
Pennsylvania State, Higher
Education Authority, Thomas
Jefferson University Project,
Ser C, VRDN, RB (A) (B) (C)
3.850%, 09/23/97 3,500 3,500
Philadelphia Industrial Development
Authority, Multi-Family Housing,
Harbor View Towers Project,
VRDN, RB (A) (B) (C)
3.600%, 09/09/97 2,080 2,080
Philadelphia Industrial Development
Authority, Inglis House Project,
VRDN, RB (A) (B) (C)
3.450%, 09/09/97 7,000 7,000
Philadelphia School District
Authority, TRAN (C)
4.500%, 06/30/98 1,400 1,407
Sayre Health Care Facilities Authority,
Capital Financing Project, Ser K,
VRDN, RB, AMBAC (A) (B) (C)
3.300%, 09/09/97 600 600
11
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
SEI TAX EXEMPT TRUST -- AUGUST 31, 1997
TAX FREE PORTFOLIO--CONCLUDED
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Schuylkill County, Industrial
Development Authority, Gilberton
Power Project, VRDN, RB (A) (B) (C)
3.300%, 09/09/97 $5,200 $ 5,200
Scranton-Lackawana Health &
Welfare Authority, University of
Scranton Project, VRDN, RB (A) (B) (C)
4.000%, 11/01/97 560 560
York County Industrial Development,
New Edgecomb Corporation
Project, VRDN, RB (A) (B) (C)
3.350%, 09/09/97 4,665 4,665
--------
79,117
--------
SOUTH CAROLINA -- 1.9%
Florence County Industrial
Development Revenue, La-Z-Boy
Chair Project, VRDN, RB (A) (B)
3.485%, 09/09/97 5,000 5,000
Lexington, South Carolina Water
and Sewer Revenue, BAN
4.750%, 10/01/97 3,300 3,301
--------
8,301
--------
TENNESSEE -- 0.8%
Hamilton County, Ser A, GO
5.000%, 05/01/98 3,535 3,560
--------
TEXAS -- 6.8%
Austin Limited Tax, Public
Improvement, GO
7.000%, 09/01/97 905 905
Brazo River, Hoffman-Laroche
Project, Ser 85, VRDN,
RB (A) (B) (C)
3.475%, 09/09/97 1,000 1,000
Harris County, Health Development
Authority, Buckner Retirement
Services Project, VRDN,
RB (A) (B) (C)
3.350%, 09/09/97 5,000 5,000
Harris County, Multi-Family
Housing, Woodgate Project,
VRDN, RB (A) (B) (C)
3.725%, 09/09/97 2,300 2,300
Harris County, Sub Lien Toll Road
Project, Ser B, VRDN,
RB (A) (B) (C)
3.300%, 09/09/97 5,000 5,000
Houston Health Facilities
Development Authority,
Memorial Northwest Pavillion
Project, VRDN, RB (A) (B) (C)
3.550%, 09/09/97 845 845
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Municipal Power Agency Revenue,
Self Insurance and Risk
Management Project, RB
4.250%, 09/01/97 $ 500 $ 500
Richardson, Independent School
District, Ser A, GO (A) (B) (C)
3.620%, 09/04/97 11,000 11,000
Trinity River Industrial Development
Authority, Trinity River Project,
VRDN, RB (A) (B) (C)
3.475%, 09/09/97 2,900 2,900
--------
29,450
--------
UTAH -- 2.6%
Castle Dale Industrial Development
Revenue, Safeway Project,
VRDN, RB (A) (B) (C)
3.850%, 02/01/98 1,400 1,400
Intermountain Power Agency,
Utah Power Supply Revenue,
Ser B, RB
5.200%, 07/01/98 1,500 1,516
Nephi Industrial Development
Authority, Safeway Project,
VRDN, RB (A) (B) (C)
3.600%, 09/01/97 2,210 2,210
Salt Lake City Industrial Development
Authority, Devereaux Partners
Project, VRDN, RB (A) (B) (C)
3.500%, 09/09/97 5,000 5,000
Tremonton City Industrial
Development Revenue, Safeway
Project, VRDN, RB (A) (B) (C)
3.900%, 12/01/97 960 960
--------
11,086
--------
VERMONT -- 1.3%
Student Assistance Student Loan
Bonds, Ser 85, VRDN,
RB (A) (B) (C)
3.750%, 09/09/97 5,425 5,425
--------
VIRGINIA -- 1.5%
Harrisonburg Multi-Family
Housing Authority, Rolling
Brook Village Apartment Project,
VRDN, RB (A) (B) (C)
3.700%, 02/01/98 2,000 2,000
Housing Development Authority,
AHC Services Corporation, Ser A,
VRDN, RB (A) (B) (C)
3.500%, 09/09/97 2,700 2,700
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
12
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Stafford County Industrial
Development Authority, Safeway
Project, VRDN, RB (A) (B) (C)
3.900%, 12/01/97 $1,845 $ 1,845
--------
6,545
--------
WASHINGTON -- 0.3%
Washington County, Lease Revenue
Authority, VRDN, RB (A) (B) (C)
3.350%, 09/09/97 1,300 1,300
--------
WEST VIRGINIA -- 1.0%
Hospital Revenue Authority, Mid-
Atlantic Project, Ser A, VRDN,
RB (A) (B) (C) AMBAC
3.350%, 09/09/97 600 600
Wood County, Industrial Development
Revenue, Gas Project, VRDN,
RB (A) (B) (C)
3.750%, 09/09/97 3,800 3,800
--------
4,400
--------
WISCONSIN -- 6.6%
Delavan Darein School District, BAN
4.150%, 04/15/98 1,000 1,001
Eau Claire Area School
District, TRAN
3.920%, 09/29/97 3,150 3,150
Elkhorn Area School District, BAN
4.250%, 04/01/98 1,385 1,387
Green Bay Area Public School
District, BAN
3.840%, 02/02/98 3,000 3,000
Janesville School District, TRAN
3.910%, 09/25/97 1,500 1,500
Kaukauna Area School
District, BAN
4.350%, 02/26/98 1,500 1,502
Kenosha Unified School
District, TRAN
4.250%, 09/26/97 3,000 3,001
LaCrosse Industrial Development
Revenue, LaCrosse Properties
Project, VRDN,
RB (A) (B) (C)
3.450%, 09/09/97 5,150 5,150
Mequon & Thiensville School
District, TRAN
4.250%, 09/10/97 750 750
Merrill Area Community Public
School, BAN
Callable 12/01/97 @ 100
4.400%, 04/01/98 2,500 2,502
Oregon County School
District, TRAN
4.240%, 09/17/97 1,000 1,000
Silver Lake School District, BAN
4.400%, 02/01/98 1,500 1,503
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Tomah Area School District, TRAN
4.190%, 09/17/97 $1,500 $ 1,500
Village of Menomonee Industrial
Development Revenue, Maysteel
Corporation, VRDN, RB (A) (B) (C)
3.485%, 09/09/97 1,900 1,900
--------
28,846
--------
Total Municipal Bonds
(Cost $424,374) 424,374
--------
Total Investments -- 98.5%
(Cost $424,374) 424,374
--------
OTHER ASSETS AND LIABILITIES, NET-- 1.5% 6,643
--------
NET ASSETS:
Portfolio Shares of Class A (unlimited
authorization -- no par value) based on
431,190,538 outstanding shares of
beneficial interest 431,057
Portfolio Shares of Class D (unlimited
authorization -- no par value) based on
1,286 outstanding shares of
beneficial interest 1
Overdistributed net investment income (20)
Accumulated net realized loss
on investments (21)
--------
TOTAL NET ASSETS -- 100.0% $431,017
--------
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE -- CLASS A $ 1.00
========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE -- CLASS D $ 1.00
========
AMBAC AMERICAN BOND MUNICIPAL ASSURANCE CORPORATION
BAN BOND ANTICIPATION NOTE
COP CERTIFICATE OF PARTICIPATION
GO GENERAL OBLIGATION
MBIA MUNICIPAL BOND INSURANCE ASSOCIATION
RAN REVENUE ANTICIPATION NOTE
RB REVENUE BOND
SER SERIES
TAN TAX ANTICIPATION NOTE
TAW TAX ANTICIPATION WARRANT
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, 1997.
(B) PUT AND DEMAND FEATURE--THE DATE REPORTED ON THE STATEMENT OF NET ASSETS IS
THE LESSER OF THE MATURITY DATE OR THE PUT/DEMAND DATE.
(C) SECURITIES ARE HELD IN CONJUNCTION WITH A LETTER OF CREDIT FROM A MAJOR BANK
OR FINANCIAL INSTITUTION.
(D) PRE-REFUNDED SECURITY--THE MATURITY DATE SHOWN IS THE PRE-REFUNDED DATE.
13
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
SEI TAX EXEMPT TRUST -- AUGUST 31, 1997
CALIFORNIA TAX EXEMPT PORTFOLIO
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS -- 97.8%
CALIFORNIA -- 95.2%
Abag Finance Authority, Nonprofit
Corp - Bentley School, VRDN,
COP (A) (B)
3.500%, 09/09/97 $1,500 $ 1,500
Alameda County, California Unified
School District, TRAN
4.250%, 06/30/98 6,980 7,005
Alameda County, Contra-Costa
Schools Authority, Ser B, VRDN,
COP (A) (B) (C)
3.100%, 09/09/97 5,000 5,000
Alameda County, TRAN
4.500%, 07/22/98 10,000 10,051
Alameda County, Transportation
Authority, RB, AMBAC
3.750%, 11/01/97 15,120 15,125
Abag Finance Authority, Lucille
Salter Packard Project, VRDN,
RB, AMBAC (A) (B)
2.950%, 09/09/97 3,550 3,550
Bakersfield, Wastewater Treatment
Plant #3, Pre-Refunded @ 101,
COP (D)
8.000%, 01/01/98 525 535
California Education Facility
Authority, Pomona College,
VRDN, RB (A) (B)
3.150%, 09/09/97 10,200 10,200
California Education Facility
Authority, Stanford University,
Ser L-4 (A) (B)
2.950%, 09/09/97 7,275 7,275
California Pollution Control
Financing Authority, Pacific
Gas & Electric, VRDN,
RB (A) (B) (C)
3.500%, 09/02/97 3,500 3,500
California State Educational Facility
Authority, Claremont Mckenna
Project, VRDN, RB (A) (B)
3.150%, 09/09/97 4,000 4,000
California State Education Facility
Authority, Point Nazarene College,
VRDN, RB (A) (B)
3.050%, 09/09/97 5,900 5,900
Corona, Multi-Family Housing,
County Hills Project, Ser B,
VRDN, RB (A) (B) (C)
3.100%, 09/09/97 855 855
Contra Costa, Community College
District, TRAN
4.625%, 06/30/98 5,000 5,018
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Contra Costa County, Multi-Family
Housing, Delta Square Project,
Ser A, VRDN, RB (A) (B) (C)
3.350%, 09/09/97 $3,400 $ 3,400
Corona Redevelopment Agency,
Crown Point Project, Ser 85,
RB (A) (B) (C)
3.100%, 05/01/98 7,580 7,580
Eden Township, Hospital District
Insured Health Facilities (D)
Pre-Refunded @ 100
10.250%, 12/01/97 2,740 2,784
Escondido, Community Development
Authority, Heritage Park
Apartment Project, Ser A,
VRDN, RB (A) (B) (C)
3.100%, 09/09/97 7,150 7,150
Fairfield-Suisun, Unified School
District, TRAN
4.250%, 10/09/97 2,800 2,801
Fontana, Gaf Tax Exempt Bond
Grantor Trust, Ser GA-7,
VRDN (A) (B) (C)
4.250%, 09/09/97 6,325 6,325
Foothill/Eastern Corridor Agency,
California Toll Road, Ser B,
VRDN, RB (A) (B) (C)
3.000%, 09/09/97 1,000 1,000
Gardena County, TRAN
4.050%, 06/30/98 4,705 4,705
Health Facilities Finance Authority,
Catholic Health Care, Ser A,
VRDN, RB, MBIA (A) (B)
3.000%, 09/09/97 2,900 2,900
Health Facilities Finance Authority,
Catholic Health Care, Ser B,
VRDN, RB, MBIA (A) (B)
3.000%, 09/09/97 2,000 2,000
Health Facilities Finance Authority,
Catholic Health Care, Ser C,
VRDN, RB, MBIA (A) (B)
3.000%, 09/09/97 1,600 1,600
Health Facilities Finance Authority,
Kaiser Permanente, Ser A,
VRDN, RB (A) (B)
3.000%, 09/09/97 4,200 4,200
Health Facilities Finance Authority,
Kaiser Permanente, Ser B,
VRDN, RB (A) (B)
3.000%, 09/09/97 2,000 2,000
Health Facilities Finance Authority,
Memorial Health Services,
VRDN, RB (A) (B)
3.000%, 09/09/97 7,000 7,000
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
14
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Housing Finance Agency, Multi-
Family Housing, Oak Brook
Ridge Apartment Project, Ser 93-A
VRDN, RB, FNMA (A) (B)
3.000%, 09/09/97 $4,830 $ 4,830
Independent Cities Lease Finance
Authority, Revenue Pooled
Project, VRDN, RB (A) (B) (C)
3.000%, 09/09/97 500 500
Irvine, Public Facilities &
Infrastructure Authority, Capital
Improvements Project, VRDN,
(A) (B) (C)
3.100%, 09/09/97 5,400 5,400
Irwindale Industrial Development
Revenue, Toys "R" Us Project,
VRDN, RB (A) (B) (C)
3.475%, 09/09/97 500 500
Kern County, Public Facilities
Project, Ser D, VRDN,
COP (A) (B) (C)
3.000%, 09/09/97 2,500 2,500
Kern County, TRAN
4.500%, 10/02/97 5,750 5,754
Lancaster Redevelopment Agency,
Multi-Family Housing, 20 Street
Apartments Project, Ser C,
VRDN (A) (B) (C)
3.150%, 09/09/97 3,250 3,250
Lancaster, Multi-Family Housing,
Household Bank Project, Ser A,
VRDN, RB (A) (B)
3.500%, 09/09/97 2,700 2,700
Lancaster, Multi-Family Housing,
The Willow Project, Ser A,
VRDN, RB (A) (B)
3.500%, 09/09/97 6,000 6,000
Livermore, TRAN
4.250%, 10/30/97 4,150 4,153
Long Beach Housing Authority,
Multi-Family Housing, Channel
Point Apartments Project, Ser A ,
VRDN, RB (A) (B) (C)
3.250%, 09/09/97 2,500 2,500
Loomis Unified School
District, TRAN
4.450%, 09/04/97 1,170 1,170
Los Angeles, Ser A, GO
7.500%, 09/01/97 3,850 3,850
Los Angeles County, Metropolitan
Transportation Project, California
Commercial Tax Exempt Paper
3.400%, 09/29/97 5,000 5,000
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Los Angeles County, Community
Redevelopment Agency,
Willowbrook Project, VRDN
(A) (B) (C)
3.250%, 09/09/97 $ 1,600 $ 1,600
Los Angeles County, Metropolitan
Transportation Authority, Ser A,
RB, MBIA (A) (B) (C)
3.000%, 09/09/97 9,900 9,900
Los Angeles County, Pension
Obligation, Ser A, VRDN, RB,
AMBAC (A) (B)
2.950%, 09/09/97 7,900 7,900
Los Angeles County, Pension
Obligation, Ser B, VRDN, RB,
AMBAC (A) (B) (C)
2.950%, 09/09/97 3,600 3,600
Los Angeles County, Pension
Obligation, Ser C, VRDN, RB,
AMBAC (A) (B) (C)
2.950%, 09/09/97 6,500 6,500
Los Angeles County, Ser A, TRAN
4.500%, 06/30/98 5,000 5,026
Los Angeles Multi-Family Housing,
Ser K, VRDN, RB (A) (B) (C)
3.000%, 09/09/97 5,700 5,700
Los Angeles, Unified School
District, TRAN
4.500%, 07/01/98 2,000 2,011
Milpitas, Unified School
District, TRAN
4.250%, 06/30/98 3,000 3,011
Modesto, High School & City
School District, Capital Facility
Project, VRDN, COP (A) (B) (C)
3.050%, 09/09/97 2,755 2,755
Monterey County, Finance
Authority, Reclamation &
Distribution Program, Ser 95-A,
VRDN, RB (A) (B) (C)
3.250%, 09/09/97 5,000 5,000
Monterey County, Regional Waste
Management Authority,
VRDN (A) (B) (C)
3.250%, 09/09/97 3,400 3,400
Northern California Public Power
Agency, Geothermal Project
No. 3-A, VRDN, RB,
(A) (B) (C)
2.950%, 09/09/97 18,000 18,000
Oakland, Revenue Assessment Bay
Area Government, VRDN,
RB (A) (B) (C)
3.350%, 09/09/97 2,175 2,175
15
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
SEI TAX EXEMPT TRUST -- AUGUST 31, 1997
CALIFORNIA TAX EXEMPT PORTFOLIO--CONTINUED
- --------------------------------------------------------------------------------
FACE
AMOUNT (000)VALUE (000)
- --------------------------------------------------------------------------------
Orange County, Apartment
Development Authority, Radnor/
Aragon Corporation Project-D,
VRDN, RB (A) (B) (C)
3.475%, 09/09/97 $3,400 $ 3,400
Oxnard Redevelopment Agency,
Channel Islands Business,
VRDN, RB (A) (B) (C)
3.725%, 09/09/97 4,685 4,685
Palm Springs Community Redevelopment
Agency, Headquarters Hotel-1,
VRDN, COP (A) (B) (C)
3.150%, 09/09/97 2,070 2,070
Palm Springs Community Redevelopment
Agency, Headquarters Hotel-4,
VRDN, COP (A) (B) (C)
3.150%, 09/09/97 2,800 2,800
Palm Springs Community Redevelopment
Agency, Headquarters Hotel-6,
VRDN, COP (A) (B) (C)
3.150%, 09/09/97 900 900
Panama-Buena Vista Union School
District, Capital Improvements
Finance Project, VRDN,
COP (A) (B) (C)
3.300%, 09/09/97 9,000 9,000
Pasadena Historical Rehabilitation,
Dodsworth Building Project,
VRDN, RB (A) (B) (C)
3.150%, 09/09/97 4,000 4,000
Pasadena, Rose Bowl Improvements
Project, VRDN, COP (A) (B) (C)
3.000%, 09/09/97 2,000 2,000
Placer County, Office of Education,
TRAN, FGIC Insured
4.450%, 09/04/97 475 475
Pollution Control Finance Authority,
Chevron USA Inc. Project,
VRDN, RB (A) (B)
4.000%, 11/15/97 1,200 1,202
Pomona Public Finance Authority,
VRDN, RB (A) (B) (C)
3.300%, 09/09/97 2,100 2,100
Redlands Redevelopment Agency,
Parking Lease, VRDN,
RB (A) (B) (C)
3.560%, 09/09/97 4,485 4,485
Redlands Redevelopment Agency,
Ser A, VRDN (A) (B) (C)
3.560%, 09/09/97 15,040 15,040
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Riverside County, Industrial
Development Authority, Business
Forms Project, VRDN,
RB (A) (B) (C)
3.800%, 09/09/97 $1,850 $ 1,850
Riverside, Multi-Family Housing,
Countrywood & IA Apartments
Project, Ser E (A) (B) (C)
3.450%, 09/09/97 2,750 2,750
Rosemead, Elementary School
District, TRAN
4.250%, 06/30/98 2,350 2,358
Roseville City School District, TRAN
4.450%, 09/04/97 1,350 1,350
Roseville Joint Union High School
District, TRAN
4.450%, 09/04/97 850 850
Roseville, Joint Union High School
District, Acquisition Project,
VRDN, COP (A) (B) (C)
3.050%, 09/09/97 3,220 3,220
Sacramento, Multi-Family Housing
Authority, Ashford Park Apartments
Project, VRDN, RB (A) (B) (C)
3.350%, 09/09/97 4,000 4,000
Salinas, Union High School
District, TRAN
4.500%, 10/02/97 2,275 2,276
San Bernadino County, County
Center Refunding Project,
VRDN, COP (A) (B) (C)
3.000%, 09/09/97 6,200 6,200
San Bernadino County, Glen Helen
Blockbuster, Ser E, VRDN,
RB (A) (B) (C)
3.350%, 09/09/97 4,245 4,245
San Bernadino County, Industrial
Development Authority,
Sandpiper Investments Project,
VRDN, RB (A) (B) (C)
3.700%, 09/09/97 3,200 3,200
San Bernadino County, Industrial
Development Authority, Gate City
Beverage Project, VRDN,
RB (A) (B) (C)
3.850%, 09/09/97 495 495
San Bernardino County, Multi-Family
Housing, VRDN, RB (A) (B) (C)
3.550%, 09/09/97 3,700 3,700
San Bernadino County, Multi-Family
Housing, Parkview Place, Ser A,
VRDN, RB (A) (B) (C)
3.150%, 09/09/97 5,220 5,220
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
16
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
San Bernadino County, Multi-Family
Housing, Gold West Apartments
Project, Ser A, VRDN, RB
(A) (B) (C)
3.150%, 09/09/97 $ 500 $ 500
San Bernadino County, Multi-Family
Housing, Alta Loma Heritage
Project, Ser A, VRDN,
RB (A) (B) (C)
3.150%, 09/09/97 2,264 2,264
San Bernadino County, Multi-Family
Housing, Indian Knoll Apartment
Project, Ser A (A) (B) (C)
3.450%, 09/09/97 3,300 3,300
San Bernardino County, Multi-Family
Housing, Mountain View
Apartments, VRDN, RB (A) (B) (C)
3.150%, 09/09/97 1,010 1,010
San Diego Multi-Family Housing,
LA Cima Apartments Project,
Ser K, VRDN, RB (A) (B) (C)
3.050%, 09/09/97 1,550 1,550
San Diego, Unified School
District, TRAN
4.750%, 10/01/97 5,500 5,505
San Francisco City & County,
Bayside Village Project D, Ser 85-B,
VRDN, RB (A) (B) (C)
3.450%, 09/09/97 9,400 9,400
San Francisco, City & County
Redevelopment Agency, Bayside
Village Project, Ser A, VRDN,
RB (A) (B) (C)
3.450%, 09/09/97 6,500 6,500
San Francisco, Housing
Redevelopment - Fillmore
Center (A) (B) (C)
3.250%, 09/09/97 2,750 2,750
San Joaquin County, TRAN
4.500%, 01/15/98 525 527
San Jose Finance Authority, Hayes
Mansion Improvement Project B,
VRDN, RB (A) (B) (C)
3.350%, 09/09/97 1,545 1,545
San Jose Redevelopment Agency,
Merged Area Redevelopment
Project, Ser A (A) (B) (C)
3.100%, 09/09/97 2,400 2,400
San Marcos Industrial Development
Authority, Amistar Project,
VRDN, RB (A) (B) (C)
3.700%, 09/09/97 4,500 4,500
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Santa Clara, Electric Revenue,
Ser A, VRDN, RB (A) (B) (C)
3.000%, 09/09/97 $ 860 $ 860
Santa Clara, Electric Revenue,
Ser B, VRDN, RB (A) (B) (C)
3.000%, 09/09/97 900 900
Simi Valley Multi-Family Housing,
Lincoln Wood Ranch, VRDN,
RB (A) (B) (C)
3.350%, 09/09/97 9,700 9,700
Southern California, Public Power
Authority, Palo Verde Project C,
VRDN, RB, AMBAC Insured (A) (B)
2.950%, 09/09/97 6,000 6,000
Union City, Multi-Family Housing,
Skylark Apartments (A) (B) (C)
3.600%, 09/09/97 2,200 2,200
University of California, COP
5.000%, 09/01/97 1,200 1,200
Upland Community Redevelopment
Agency, Multi-Family Housing
Revenue, Northwoods Project,
Ser B, VRDN, RB (A) (B) (C)
4.100%, 09/09/97 2,200 2,200
Vacaville Multi-Family Housing,
Quail Run Apartments, Ser 88-A,
VRDN, RB, FNMA (A) (B)
3.000%, 09/09/97 9,900 9,900
West Basin, Municipal Water District,
Phase II Recycled Water Project B,
VRDN, COP (A) (B) (C)
2.950%, 09/09/97 9,300 9,300
Western Placer, Unified School
District, TRAN
4.450%, 09/04/97 1,660 1,660
Yuba County, TRAN
4.500%, 10/31/97 2,155 2,158
--------
441,344
--------
PUERTO RICO -- 2.6%
Puerto Rico
3.500%, 10/06/97 12,000 12,000
--------
Total Municipal Bonds
(Cost $453,344) 453,344
--------
Total Investments -- 97.8%
(Cost $453,344) 453,344
--------
OTHER ASSETS AND LIABILITIES, NET-- 2.2% 10,112
--------
17
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
SEI TAX EXEMPT TRUST -- AUGUST 31, 1997
CALIFORNIA TAX EXEMPT
PORTFOLIO--CONCLUDED
- --------------------------------------------------------------------------------
VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares of Class A (unlimited
authorization -- no par value) based on
51,296,999 outstanding shares of
beneficial interest $ 51,297
Portfolio Shares of Class G (unlimited
authorization -- no par value) based on
412,156,255 outstanding shares of
beneficial interest 412,156
Undistributed net investment income 8
Accumulated net realized loss
on investments (5)
--------
TOTAL NET ASSETS -- 100.0% $463,456
========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE -- CLASS A $ 1.00
========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE -- CLASS G $ 1.00
========
AMBAC AMERICAN MUNICIPAL BOND ASSURANCE COMPANY
COP CERTIFICATE OF PARTICIPATION
FGIC FINANCIAL GUARANTY INSURANCE CORPORATION
FNMA FEDERAL NATIONAL MORTGAGE ASSOCIATION
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, 1997.
(B) PUT AND DEMAND FEATURE--THE DATE REPORTED ON THE STATEMENT OF NET ASSETS
IS THE LESSER OF THE MATURITY DATE OR THE PUT/DEMAND DATE.
(C) SECURITIES ARE HELD IN CONJUNCTION WITH A LETTER OF CREDIT FROM A MAJOR
BANK OR FINANCIAL INSTITUTION.
(D) PRE-REFUNDED SECURITY--THE MATURITY DATE SHOWN IS THE PRE-REFUNDED DATE.
================================================================================
INSTITUTIONAL TAX
FREE PORTFOLIO
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS -- 100.9%
ALABAMA -- 0.6%
Birmingham Medical Clinic
Revenue, St. Martins In The
Pines Project, Ser 89, VRDN,
RB (A) (B)
3.450%, 09/09/97 $3,095 $ 3,095
Mobile Industrial Development,
IB Chemical Company, VRDN,
RB (A) (B) (C)
3.600%, 09/09/97 1,350 1,350
Russelville Industrial Development
Revenue, Clark Pulley Project,
Ser 94, VRDN, RB (A) (B) (C)
3.500%, 09/09/97 1,675 1,675
--------
6,120
--------
ALASKA -- 0.4%
Alaska Industrial Development
Authority, Safeway Project,
VRDN, RB (A) (B) (C)
3.900%, 12/01/97 4,370 4,370
--------
ARIZONA -- 0.6%
Maricopa County Industrial
Development Authority, McLane
Company Project, VRDN,
RB (A) (B) (C)
3.850%, 09/09/97 770 770
Tuscon Industrial Development
Authority, Street & Highway
User Revenue Project 1981, Ser D,
VRDN, RB (D)
Pre-Refunded @ 101
6.500%, 07/01/98 1,370 1,412
Tuscon Industrial Development
Authority, Tuscon City Center
Parking, Ser A, VRDN,
RB (A) (B) (C)
3.475%, 09/09/97 4,475 4,475
--------
6,657
--------
CALIFORNIA -- 3.2%
Alameda County, TRAN
4.500%, 07/22/98 5,000 5,025
California State Higher Education
Loan Authority Student Loan
Refunding, Ser 87-A, RB (B)
4.000%, 07/01/98 5,500 5,500
California State Higher Education
Loan Authority, Student Loan
Revenue Refunding Project,
Ser D, VRDN, RB (A) (B) (C)
4.000%, 10/01/97 3,000 3,000
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
18
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Humbolt County, TRAN (C)
4.500%, 07/01/98 $13,250 $ 13,318
Redlands Redevelopment Agency,
Parking Lease, VRDN,
RB (A) (B) (C)
3.560%, 09/09/97 1,845 1,845
Redlands Redevelopment Refunding
Project, Ser A, VRDN,
RB (A) (B) (C)
3.560%, 09/09/97 4,820 4,820
--------
33,508
--------
COLORADO -- 3.0%
City of Idaho Springs, Safeway
Project, Ser 93, VRDN,
RB (A) (B) (C)
3.900%, 12/01/97 2,095 2,095
Colorado State, Postsecondary
Education Facility Authority,
Mullen High School Project,
VRDN, RB (A) (B) (C)
3.400%, 09/09/97 5,000 5,000
Colorado State Housing Finance
Authority, Multi-Family Central
Park Housing Project, VRDN,
RB (A) (B)
3.400%, 09/09/97 2,650 2,650
Denver City & County Revenue,
Helen Bonfils Theatre, VRDN,
RB (A) (B) (C)
3.500%, 09/09/97 2,650 2,650
El Paso USA Hockey, Ser 96, VRDN,
RB (A) (B) (C)
3.400%, 09/09/97 3,400 3,400
Englewood Industrial Development
Revenue, Safeway Incorporated
Project, VRDN, RB (A) (B) (C)
3.900%, 12/01/97 2,690 2,690
Housing Finance Authority, Multi-
Family Housing, Grants Plaza
Project 91-A, VRDN, RB (A) (B) (C)
3.475%, 09/09/97 1,425 1,425
Moffat County, Pollution Control
Revenue, Pacificorp Project,
VRDN, RB (A) (B)
3.750%, 09/02/97 2,550 2,550
Panorama Metropolitan District,
Ser B, VRDN, RB (A) (B) (C)
3.700%, 12/01/97 2,425 2,425
Regents of University of Colorado,
Telecom & Cogen Projects, COP
4.500%, 12/01/97 3,400 3,404
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Smith Creek Metropolitan District
Authority, VRDN, RB (A) (B) (C)
3.400%, 09/09/97 $ 900 $ 900
State Health Facilities Authority,
Rocky Mountain Project, VRDN,
RB (A) (B) (C)
3.400%, 09/09/97 1,875 1,875
--------
31,064
DISTRICT OF COLUMBIA -- 0.2%
District of Columbia, Ser B2, VRDN
GO (A) (B) (C)
3.850%, 09/02/97 2,500 2,500
--------
DELAWARE -- 0.1%
Economic Development Authority,
Commercial Development,
Congoleum Project, VRDN,
RB (A) (B) (C)
3.550%, 09/09/97 1,000 1,000
--------
FLORIDA -- 4.1%
Atlantic Beach, Florida Fleet
Landing Project, Ser B, VRDN,
RB (A) (B) (C)
3.850%, 09/02/97 1,000 1,000
Boca Raton, Industrial Development
Revenue Authority, Parking
Garage Project, Ser 84-A,
VRDN, RB (A) (B) (C)
3.725%, 09/09/97 7,950 7,950
Broward County Multi-Family
Housing, Parkview Partnership,
VRDN, RB (A) (B) (C)
3.600%, 09/09/97 4,525 4,525
Capital Projects Finance Authority,
Florida Loan Project, Ser 97A, VRDN
(A) (B) (C)
3.500%, 09/09/97 15,000 15,000
Florida Local Government Finance
Authority Revenue, Lake Wales
Medical Centers, Ser A #1023, VRDN
(A) (B) (C)
3.350%, 09/09/97 688 688
Housing Finance Agency, Multi-
Family Housing, Lakeside South
Association, VRDN, RB (A) (B) (C)
3.475%, 09/09/97 1,470 1,470
Jacksonville Industrial Development,
University of Florida Health
Science Center, Ser 89, VRDN,
RB (A) (B) (C)
3.600%, 09/09/97 1,000 1,000
19
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
SEI TAX EXEMPT TRUST -- AUGUST 31, 1997
INSTITUTIONAL TAX FREE PORTFOLIO--CONTINUED
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Jacksonville University Hospital
Center Project, VRDN,
RB (A) (B) (C)
3.550%, 09/09/97 $ 400 $ 400
Lake Bernadette Community
Development, Special Assessment
Revenue, Ser B, VRDN,
RB (A) (B) (C)
3.450%, 09/09/97 1,565 1,565
Lee Industrial Development
Authority, Christian Mission-
Shell Point Village Project,
VRDN, RB (A) (B) (C)
3.475%, 09/09/97 3,450 3,450
Orange County, Florida Education
Facilities Authority, Rollins
College Project (A) (B) (C)
3.400%, 09/09/97 4,000 4,000
Pasco City Housing Finance
Authority, Multi-Family Housing,
Carlton Arms of Magnolin Valley,
Ser 85, VRDN, RB (A) (B) (C)
3.475%, 09/09/97 2,000 2,000
--------
43,048
--------
GEORGIA -- 6.3%
Athens Multi-Family Housing,
Georgian Apartments, VRDN,
RB (A) (B) (C)
3.725%, 09/09/97 1,400 1,400
Clayton County, Multi-Family
Housing Authority, Rainwood
Development Project (A) (B) (C)
3.475%, 09/09/97 2,700 2,700
Cobb County Multi-Family Housing,
Tibairen Associates Project,
Ser 85-D, VRDN, RB (A) (B) (C)
3.550%, 09/09/97 8,600 8,600
De Kalb County, Hospital
Authority, Egleston Childrens
Hospital Project, VRDN,
RB (A) (B) (C)
3.300%, 09/09/97 2,200 2,200
De Kalb, Hospital Authority,
Egleston Childrens Hospital Project,
Ser A, VRDN, RB (A) (B)
3.300%, 09/09/97 2,300 2,300
De Kalb County, Housing Authority,
Multi-Family Revenue,
Clairmont Crest Project,
VRDN, RB (A) (B) (C)
3.350%, 09/09/97 3,200 3,200
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
DeKalb County Industrial
Development Revenue,
Weyerhaeuser County Project,
VRDN, RB (A) (B)
3.442%, 09/09/97 $3,500 $ 3,500
DeKalb County Multi-Family Housing,
Terrace Club Project, Ser 93-B,
VRDN, RB (A) (B) (C)
3.500%, 09/09/97 4,430 4,430
Downtown Athens Housing
Development Authority,
Georgian Apartments Association,
VRDN, RB (A) (B) (C)
3.850%, 09/09/97 1,000 1,000
Effingham County, Development
Authority, Pollution Control
Revenue, Savannah Electric and
Power Project, VRDN, RB (A) (B)
3.800%, 09/02/97 1,920 1,920
Federal Paper Board, Tax Exempt
Bond Grantor Trust, VRDN,
RB (A) (B) (C)
4.050%, 09/09/97 7,200 7,200
Fulton County Arthritis Foundation
Project, VRDN, RB (A) (B) (C)
3.400%, 09/09/97 2,000 2,000
Georgia Municipal Gas Authority,
Gas Portfolio II Project, Ser B,
VRDN, RB (A) (B) (C)
3.450%, 09/09/97 5,000 5,000
Hospital Finance Authority, Pooled
Hospital Loan Project, Ser 97, VRDN,
RB (A) (B) (C)
3.750%, 09/02/97 3,258 3,258
Macon-Bibb County, Hospital Authority
Revenue, Medical Center of
Central Georgia Project, Ser 97,
VRDN, RB (A) (B) (C)
3.400%, 09/09/97 4,000 4,000
Marietta Housing Finance Authority,
Multi-Family Housing, Franklin
Walk Apartments Project,
VRDN, RB (A) (B) (C)
3.475%, 09/09/97 3,540 3,540
Roswell Multi-Family Housing
Revenue, Belcourt Limited Project,
VRDN, RB (A) (B) (C)
3.600%, 09/09/97 9,000 9,000
--------
65,248
--------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
20
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
IDAHO -- 0.8%
Indiana Health Facilities Authority,
Community Hospital Project,
VRDN, RB (A) (B)
3.350%, 09/09/97 $7,500 $ 7,500
Nez Perce County, Idaho Pollution
Control Revenue, Potlach Project,
Ser 84, VRDN, RB (A) (B) (C)
3.350%, 09/09/97 675 675
--------
8,175
--------
ILLINOIS -- 9.5%
Development Finance Authority,
Catholic Charities VRDN,
RB (A) (B) (C)
3.400%, 09/09/97 8,000 8,000
Development Finance Authority,
Catholic Charities, Housing Project,
Ser A, VRDN, RB (A) (B) (C)
3.400%, 09/09/97 3,600 3,600
Development Finance Authority,
Field Container Project, VRDN,
RB (A) (B) (C)
3.350%, 09/09/97 1,200 1,200
Development Finance Authority,
Palos Community Hospital Project,
Ser 1994, VRDN, RB (A) (B)
3.300%, 09/09/97 2,200 2,200
Development Finance Authority,
Pollution Control Refunding
Revenue, Uno-Ven Project,
VRDN, RB (A) (B) (C)
3.350%, 09/09/97 1,200 1,200
Development Finance Authority
Rest Haven Illinan Project
(A) (B) (C)
3.350%, 09/09/97 2,000 2,000
Educational Facilities Authority
Revenue Illinois College of
Optometry Project, VRDN,
RB (A) (B) (C)
3.650%, 09/09/97 5,300 5,300
Health Facilities Authority Revenue,
Advocate Healthcare Network
Ser B, VRDN, RB (A) (B)
3.300%, 09/09/97 39,300 39,300
Health Facilities Authority,
Bensonville Home Society Project,
Ser A, VRDN, RB (A) (B)
3.300%, 09/09/97 1,125 1,125
Health Facilities Authority, Central
Health & New Community
Project, VRDN, RB (A) (B) (C)
3.400%, 09/09/97 900 900
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Health Facility Authority,
Pekin Memorial Hospital Project,
Ser C, VRDN, RB (A) (B) (C)
3.375%, 09/09/97 $ 3,500 $ 3,500
Kane County, Community United
District, Geneva Project, GO FGIC
9.000%, 06/01/98 1,000 1,037
Northwest Mutual Life Tax Exempt
Mortgage Trust, Illinois, VRDN,
RB (A) (B) (C)
4.500%, 02/15/98 341 341
Oak Forest, Mode-Homewood Pool
Project, VRDN, RB (A) (B) (C)
3.350%, 09/09/97 10,000 10,000
Orland Hills Mortgage Authority,
Multi-Family Housing, Ser 88-A,
VRDN, RB (A) (B) (C)
3.350%, 09/09/97 1,400 1,400
Paxton Industrial Development
Authority, Merck & Aircoil,
VRDN, RB (A) (B) (C)
3.850%, 09/09/97 900 900
Saint Clair Industrial Building
Authority, Winchester Apartments
Project, Ser 94, VRDN, RB
(A) (B) (C)
3.850%, 09/09/97 8,000 8,000
Springfield Multi-Family Housing,
Oak Center Limited Project,
VRDN, RB (A) (B)
3.550%, 09/09/97 4,900 4,900
State Industrial Development,
Miyano Machinery, VRDN,
RB (A) (B) (C)
3.850%, 09/09/97 4,250 4,250
--------
99,153
--------
INDIANA -- 5.8%
Bond Bank Industrial Revenue,
Tri County Project, Ser D,
VRDN, RB (A) (B) (C)
3.500%, 09/09/97 7,010 7,010
Fort Wayne, Ser 83, VRDN,
RB (A) (B) (C)
3.475%, 09/09/97 650 650
GAF Tax Exempt Bond Grantor
Trust, Indiana, Ser A, VRDN,
RB (A) (B) (C)
4.250%, 09/09/97 2,520 2,520
Gary Indiana, Environmental
Improvement, United States
Steel Corporation, VRDN,
RB (A) (B) (C)
3.750%, 09/09/97 3,000 3,000
21
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
SEI TAX EXEMPT TRUST -- AUGUST 31, 1997
INSTITUTIONAL TAX FREE PORTFOLIO--CONTINUED
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Goshen Community School, TAW
4.000%, 12/31/97 $ 3,856 $ 3,859
Highland School Town, TAN
4.000%, 12/31/97 1,600 1,601
Huntington County Community
School, TAW
4.000%, 12/31/97 5,000 5,002
Indiana Residential Apartments,
1 Portfolio Certificate Trust 1996
Ser A, VRDN, RB (A) (B) (C)
3.550%, 09/09/97 12,000 12,000
Lafayette School, TAN
4.000%, 12/30/97 2,400 2,402
Lake Central School
Corporation, TAW
4.100%, 12/31/97 2,500 2,502
Michigan City Economic
Development, Marley Company
Project, Ser 84, VRDN,
RB (A) (B) (C)
3.475%, 09/09/97 2,750 2,750
Muncie Community Schools, TAW
4.000%, 12/31/97 6,000 6,003
Muncie, TAW
4.000%, 12/31/97 3,900 3,902
Northwest Mutual Life Tax Exempt
Mortgage Trust, VRDN,
RB (A) (B) (C)
4.500%, 02/15/98 39 39
Plymouth Community School, TAW
4.000%, 12/30/97 2,000 2,001
Richmond Community Schools, TAW
4.100%, 12/31/97 3,000 3,002
Warsaw County, TAW
4.400%, 12/31/97 2,500 2,500
--------
60,743
--------
IOWA -- 0.8%
Davenport Community School
District, TAW
4.375%, 07/01/98 3,500 3,510
Des Moines, Private College Revenue,
Drake University Project, Ser B
6.500%, 12/01/97 325 327
Des Moines, Private College Revenue,
Drake University Project, Ser B, (D)
Pre-Refunded @ 102
6.600%, 12/01/97 350 359
6.800%, 12/01/97 4,145 4,258
--------
8,454
--------
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
KANSAS -- 0.8%
City of Manhattan Kansas Temporary
Notes, Ser 23, GO
4.000%, 12/15/97 $3,081 $ 3,082
Shawnee Cnty, GO
4.050%, 06/01/98 3,050 3,052
Topeka Multi-Family Housing
Revenue, Ser 85, VRDN,
RB (A) (B) (C)
3.350%, 09/09/97 870 870
Wichita Pollution Control, CIC
Industries Incorporated,
VRDN, RB (A) (B) (C)
3.725%, 09/09/97 1,590 1,590
--------
8,594
--------
KENTUCKY -- 0.3%
Covington Industrial Building
Revenue, Atkins & Pearce
Incorporated, Ser 95, VRDN,
RB (A) (B) (C)
3.450%, 09/09/97 1,610 1,610
Newport City, Multi-Family
Housing Revenue, RB (B) (C)
4.000%, 12/01/97 1,750 1,750
--------
3,360
--------
MAINE -- 0.6%
Baileyville Pollution Control
Revenue, Georgia Pacific Project,
Ser 88, VRDN RB (A) (B) (C)
3.475%, 09/09/97 4,550 4,550
Portland Industrial Development
Revenue, W.W. Grainger Project,
Ser 85, VRDN, RB (A) (B)
3.500%, 09/09/97 1,315 1,315
--------
5,865
--------
MARYLAND -- 1.2%
Annapolis Forest Gemini Facilities,
VRDN, RB (A) (B) (C)
3.750%, 09/02/97 2,400 2,400
Health & Higher Education Facilities
Authority, Greater Baltimore
Medical, VRDN, RB (A) (B)
3.500%, 09/09/97 4,300 4,300
Howard County, Multi-Family
Housing Authority, Sherwood
Crossing Project, VRDN, RB (A) (B)
3.750%, 12/01/97 2,500 2,500
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
22
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Hyattsville, Industrial Development,
Safeway Incorporated Project,
VRDN, RB (A) (B) (C)
3.900%, 12/01/97 $2,325 $ 2,325
Prince George County Housing
Authority, Laurel Oxford Project,
VRDN, RB (A) (B) (C)
3.475%, 09/09/97 1,375 1,375
--------
12,900
--------
MASSACHUSETTS -- 0.3%
Brockton, RAN
4.500%, 06/30/98 3,500 3,510
--------
MICHIGAN -- 1.7%
Birmingham Economic Development
Corporation, Brown Street Project,
Ser 83, VRDN, RB (A) (B) (C)
3.725%, 09/09/97 1,180 1,180
Detroit Downtown Development
Authority, Millender Center
Program Project, VRDN,
RB (A) (B) (C)
3.550%, 09/09/97 1,000 1,000
Farmington Hills, Economic
Development Authority, Brookfield
Building Association Project,
VRDN, RB (A) (B) (C)
3.500%, 09/09/97 2,000 2,000
Ingram County, Economic
Development Authority, Martin
Luther Memorial Home Project,
VRDN, RB (A) (B) (C)
3.350%, 09/09/97 3,900 3,900
Job Development Authority, VRDN,
RB (A) (B) (C)
3.750%, 09/02/97 1,300 1,300
Job Development Authority, Pollution
Control Revenue, Ser 85, Mazda
Motor Manufacturing Corporation
#384, VRDN, RB (A) (B) (C)
3.600%, 09/09/97 1,650 1,650
McDonald Tax-Exempt Mortgage
Trust #1, VRDN, RB (A) (B) (C)
4.500%, 02/15/98 467 467
Northville Township, Economic
Development Authority, Thrifty
Northville Project VRDN, RB
(A) (B) (C)
3.475%, 09/09/97 500 500
Northwest Mutual Life Tax-Exempt
Mortgage Trust, Michigan,
VRDN, RB (A) (B) (C)
4.500%, 02/15/98 95 95
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Oakland County, Economic
Development Authority, Christian
College Project, VRDN,
RB (A) (B) (C)
3.400%, 09/09/97 $1,000 $ 1,000
Plymouth Township, Economic
Development Revenue, Key
International Project,
VRDN (A) (B) (C)
3.700%, 09/02/97 3,400 3,400
State Strategic Fund Limited
Obligation, Freezer Services
of Michigan, Ser 93, VRDN,
RB (A) (B)
3.550%, 09/09/97 945 945
--------
17,437
--------
MINNESOTA -- 5.8%
Bloomington Commercial
Development, ATS II Project,
VRDN, RB (A) (B) (C)
3.740%, 09/09/97 3,930 3,930
Bloomington Multi-Family Housing,
Revenue Refunding, Hampshire
Apartments Project, VRDN,
RB (A) (B)
3.360%, 09/09/97 15,000 15,000
Brooklyn Center Development
Project, Brookdale Office Park,
Ser 84, VRDN, RB (A) (B) (C)
3.460%, 09/09/97 2,860 2,860
Minneapolis, Ser A, VRDN,
RB (A) (B) (C)
3.350%, 09/09/97 14,300 14,300
Minneapolis, Various Purpose,
Ser 95-B, VRDN, GO (A) (B)
3.350%, 09/09/97 2,325 2,325
New Brighton Commercial
Development Revenue, Business
Center, VRDN, RB (A) (B)
3.610%, 09/09/97 2,745 2,745
New Brighton Commercial
Development Revenue, Venture I
Project, Ser A, VRDN, RB (A) (B)
3.610%, 09/09/97 1,700 1,700
Plymouth Industrial Development
Revenue, Banner Engineering
Project, VRDN, RB (A) (B) (C)
3.450%, 09/09/97 1,800 1,800
Saint Paul, Housing & Redevelopment
Authority, Lutheran Social Service
Project, VRDN, RB (A) (B) (C)
3.450%, 09/09/97 735 735
23
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
SEI TAX EXEMPT TRUST -- AUGUST 31, 1997
INSTITUTIONAL TAX FREE PORTFOLIO--CONTINUED
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Saint Paul, Minnesota Housing &
Redevelopment Authority, Science
Museum of Minnesota Project,
Ser B, VRDN, RB (A) (B) (C)
3.500%, 09/09/97 $ 300 $ 300
School District Credit Enhancement,
Tax & Aid Anticipation Borrowing
Program, Ser 96-B, COP
4.500%, 09/09/97 1,700 1,700
St. Paul, Minnesota Housing &
Redevelopment Authority, District
Heating, Ser A, VRDN, RB
(A) (B) (C)
3.450%, 09/09/97 13,000 13,000
--------
60,395
--------
MISSISSIPPI -- 0.1%
Desoto County, Industrial
Development Revenue, American
Soap Company Project, VRDN,
RB (A) (B) (C)
4.867%, 09/09/97 900 900
--------
MISSOURI -- 2.9%
Howell County, Industrial
Development Authority, Safeway
Incorporated Project, VRDN,
RB (A) (B) (C)
3.850%, 02/01/98 3,800 3,800
Kansas City, Industrial Development
Authority, Baptist Health System,
Ser A, VRDN, RB (A) (B) (C)
3.400%, 09/09/97 600 600
Macon City, Industrial Development
Authority, Health Care Realty
Macon Project, VRDN,
RB (A) (B) (C)
3.750%, 09/02/97 1,640 1,640
Missouri State, Infrastructure
Facility Revenue Authority,
Midtown Project, VRDN,
RB (A) (B) (C)
3.600%, 09/09/97 5,000 5,000
Saint Louis County, Industrial
Development Authority, Riverport
Associates Project, VRDN,
RB (A) (B) (C)
3.600%, 09/09/97 3,100 3,100
Saint Louis County Industrial
Development Authority, Schnuck
Markets Kirkwood Incorporated,
VRDN, RB (A) (B) (C)
3.475%, 09/09/97 3,350 3,350
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Saint Louis, Grantor Trust, Ser 96-A,
COP, VRDN (A) (B) (C)
3.600%, 09/09/97 $10,865 $ 10,865
West Plains, Industrial Development
Authority, West Plains Manor
Project, VRDN, RB (A) (B) (C)
3.950%, 09/09/97 2,200 2,200
--------
30,555
--------
MONTANA -- 0.2%
Great Falls, Industrial Development
Revenue, Safeway Project,
VRDN, RB (A) (B) (C)
3.900%, 12/01/97 2,090 2,090
--------
NEBRASKA -- 0.4%
Nebraska, Education Facility
Education Finance Authority
Revenue, Creighton University
Project, Ser A, VRDN, RB (A) (B)
3.400%, 09/09/97 3,750 3,750
Northwest Mutual Life Tax Exempt
Mortgage Trust, VRDN,
RB (A) (B) (C)
4.500%, 02/15/98 31 31
--------
3,781
--------
NEVADA -- 1.3%
Henderson Public Improvement
Trust, Multi-Family Housing,
Pueblo Verde I+II Apartment
Project, Ser 95-A/95, VRDN,
RB (A) (B) (C)
3.450%, 09/09/97 7,935 7,935
Henderson Public Improvement
Trust, Multi-Family Housing,
Pueblo Verde, VRDN, RB (A) (B) (C)
3.450%, 09/09/97 5,715 5,715
--------
13,650
--------
NEW HAMPSHIRE -- 0.4%
Education & Health Facilities
Authority, Dartmouth Education
Loan Project, VRDN, RB (A) (B)
3.950%, 06/01/98 4,000 4,000
--------
NEW JERSEY -- 0.2%
Northwest Mutual Life, Tax Exempt
Mortgage Trust, VRDN,
RB (A) (B) (C)
4.500%, 02/15/98 171 171
Ventnor City, Ser A, BAN
4.250%, 04/30/98 2,001 2,001
--------
2,172
--------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
24
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
NEW MEXICO -- 0.3%
Albuquerque Metropolitan
Redevelopment Authority,
Springer Square Project, VRDN,
RB (A) (B) (C)
3.850%, 09/09/97 $3,000 $ 3,000
--------
NEW YORK -- 8.4%
Board of Education, St Lawrence
and Lewis County, RAN
4.375%, 06/26/98 3,000 3,009
City of Little Falls, School District
Project, Ser A, BAN
4.250%, 09/19/97 10,250 10,250
Freeport, Unified Free School
District, TAN
4.250%, 06/29/98 5,000 5,008
Lindenhurst, Unified Free School
District, TAN
4.250%, 06/24/98 4,000 4,007
Monroe County, Industrial
Development Authority, Rochester
District Project, VRDN,
RB (A) (B) (C)
3.650%, 09/09/97 2,550 2,550
Nassau County, Ser A, RAN
4.250%, 03/10/98 9,500 9,519
New York State Job Development
Authority, Ser E-1, VRDN,
RB (A) (B) (C)
3.950%, 09/09/97 1,385 1,385
New York, Ser D, GO, VRDN (A) (B)
3.350%, 09/03/97 1,500 1,500
North Hempstead, BAN, Ser A
4.000%, 01/29/98 9,517 9,519
North Hempstead, BAN, Ser C
4.500%, 05/06/98 17,729 17,761
North Hempstead, BAN, Ser D
4.100%, 08/07/98 7,000 7,007
North Hempstead, BAN, Ser H
4.250%, 10/30/97 2,000 2,001
Ontario County, Industrial
Development Authority, Seneca
Foods Project, VRDN,
RB (A) (B) (C)
3.750%, 09/09/97 3,000 3,000
Roosevelt, Free School District,
TRAN, GO
4.500%, 06/30/98 3,300 3,309
Saratoga County, Shenendehowa
Central School District, GO
4.100%, 06/17/98 3,000 3,003
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Waterloo, Central School District,
RAN
4.250%, 09/30/97 $4,500 $ 4,501
--------
87,329
--------
NORTH CAROLINA -- 0.1%
Beaufort Industrial Facility, Pollution
Control Revenue Project, Texas
Gulf Corporation, VRDN,
RB (A) (B) (C)
3.450%, 09/09/97 1,000 1,000
--------
NORTH DAKOTA -- 0.1%
Fargo Kelly Inn, Fargo Project,
Ser 93, VRDN, RB (A) (B) (C)
3.450%, 09/09/97 1,190 1,190
--------
OHIO -- 4.8%
Cleveland, Cleveland Stadium
Project, RB
4.500%, 10/15/97 1,500 1,501
Franklin County, Industrial
Development Revenue, Leveque
& Associates Project, RB (A) (B) (C)
3.900%, 12/01/97 1,410 1,410
Hamilton County, Hospital Facility
Revenue, Childrens Medical
Center Project, Ser A, VRDN,
RB (A) (B) (C)
3.350%, 09/09/97 3,000 3,000
Highland County, Industrial
Development Revenue, Lancaster
Colony Corporation, VRDN,
RB (A) (B) (C)
3.650%, 09/01/97 1,900 1,900
Lorain County, Independent Living
Facilities Revenue, Elyria
Methodist Project, VRDN, Ser A,
RB (A) (B) (C)
3.400%, 09/09/97 5,700 5,700
Loraine County Leving & Hospital
Facilities, United Methodist
Village Project, Ser 1996B,
VRDN, RB (A) (B) (C)
3.400%, 09/09/97 3,600 3,600
Marion County, Hospital Revenue,
Pooled Lease Program, Ser 91,
VRDN, RB (A) (B) (C)
3.400%, 09/09/97 1,350 1,350
McDonald Tax-Exempt Mortgage
Trust #1, VRDN (A) (B) (C)
4.500%, 02/15/98 2,180 2,181
25
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
SEI TAX EXEMPT TRUST -- AUGUST 31, 1997
INSTITUTIONAL TAX FREE PORTFOLIO--CONTINUED
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Ohio State, Air Quality Development
Authority, Ohio Ed Project,
VRDN, RB (A) (B) (C)
4.400%, 09/01/97 $ 2,000 $ 2,000
Ohio State Higher Education
Facility, Education Authority,
VRDN, RB (A) (B) (C)
3.400%, 09/09/97 16,405 16,405
Scioto County Health Care Facilities,
Hill View Retirement, VRDN,
RB (A) (B) (C)
3.900%, 01/01/98 1,875 1,875
Scioto County, Ohio Hospital Revenue,
VRDN, RB (A) (B)
3.350%, 09/09/97 5,200 5,200
Stark County Health Care Facilities,
Canton Christian Home Project,
Ser 90, VRDN, RB (A) (B) (C)
3.650%, 09/02/97 1,340 1,340
Stark County HealthCare Facility,
Christian Home, VRDN,
RB (A) (B) (C)
3.650%, 09/15/97 1,580 1,580
Trumbull County, Ohio Industrial
Revenue Authority, Howland
Association Project, VRDN,
RB (A) (B) (C)
3.450%, 09/09/97 570 570
--------
49,612
--------
OKLAHOMA -- 3.0%
Oklahoma City, Industrial Development
Authority, Baptist General
Convention Refunding Project,
Ser 89, VRDN, RB (A) (B) (C)
3.950%, 09/02/97 12,000 12,000
Oklahoma City, Oklahoma
University, Ser 85, VRDN,
RB (A) (B) (C)
3.600%, 09/09/97 7,900 7,900
Oklahoma Mid-West Tax-Exempt
Mortgage Bond Trust, VRDN,
RB (A) (B) (C)
3.650%, 09/09/97 253 253
Tulsa City, Industrial Development
Authority Health Care, Laureate
Psychiatric Project, VRDN,
RB (A) (B)
3.850%, 12/15/97 8,500 8,500
Tulsa Parking Authority, Refunding
First Mortgage Williams Project 84,
Ser A, VRDN, RB (A) (B) (C)
3.900%, 11/15/97 2,900 2,900
--------
31,553
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
OREGON -- 0.7%
Lane County, Industrial Development
Revenue, Weyerhaeuser Project,
VRDN, RB (A) (B)
3.442%, 09/09/97 $1,000 $ 1,000
Port of Portland, Public Grain
Elevator Columbia, VRDN,
RB (A) (B) (C)
3.600%, 09/09/97 4,700 4,700
3.620%, 09/09/97 2,045 2,045
--------
7,745
--------
PENNSYLVANIA -- 9.1%
Clarion County, Industrial
Development Authority,
Meritcare Project, Ser A,
VRDN, RB (A) (B) (C)
3.450%, 09/09/97 1,200 1,200
Delaware County, Industrial
Development Authority,
Resource Recovery Project,
Ser G, RB (B)
3.625%, 12/01/97 2,730 2,730
Delaware Valley, Regional Finance
Authority, Local Government
Revenue, Ser B, VRDN,
RB (A) (B) (C)
3.250%, 09/09/97 11,650 11,650
Delaware Valley, Regional Finance
Authority, Local Government
Revenue, Ser B, VRDN,
RB (A) (B) (C)
3.250%, 09/09/97 14,100 14,100
East Hempfield Township,
Industrial Revenue Authority,
Mantua Housing Project,
VRDN, RB (A) (B) (C)
3.550%, 09/09/97 2,500 2,500
Emmaus, General Authority,
VRDN, RB, FSA (A) (B)
3.400%, 09/09/97 1,000 1,000
Emmaus, General Authority,
Local Government, Ser G-7,
VRDN, RB (A) (B) (C)
3.400%, 09/09/97 200 200
Emmaus, General Authority, Local
Government, Ser H-5, VRDN,
RB (A) (B) (C)
3.350%, 09/09/97 600 600
Emmaus, General Authority,
Revenue Credit Enhancement,
VRDN, RB (A) (B) (C)
3.350%, 09/09/97 250 250
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
26
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Emmaus, General Authority, Ser H,
VRDN, RB (A) (B) (C)
3.350%, 09/09/97 $ 500 $ 500
Higher Education Facility, Allegheny
College Project, VRDN,
RB (A) (B) (C)
3.300%, 09/09/97 1,900 1,900
Langhorne Hospital Revenue
Authority, Franciscan Health
Systems Project, Ser C,
VRDN, RB (A) (B) (C)
3.650%, 09/02/97 120 120
McCandless, Industrial Development
Authority, Bradford Foundation
Project, Ser A, VRDN, RB
(A) (B) (C)
3.450%, 09/09/97 1,730 1,730
McDonald Tax-Exempt Mortgage
Trust #1, VRDN (A) (B) (C)
4.500%, 02/15/98 467 467
Montgomery County, Higher Education
& Health Authority, Ser A,
VRDN, RB (A)(B) (C)
3.500%, 09/09/97 11,560 11,560
Montgomery County, Higher Education
& Health Authority, William Penn
Charter School Project, VRDN,
RB (A) (B) (C)
3.450%, 09/09/97 2,800 2,800
Montgomery County, Industrial
Development Authority, Ikea
Property Project, VRDN, RB (A) (B)
3.450%, 09/09/97 1,500 1,500
Northwest Mutual Life Tax-Exempt
Mortgage Trust,VRDN,
RB (A) (B) (C)
4.500%, 02/15/98 70 70
Pennsylvania State Higher Education,
Facilities Authority, Thomas
Jefferson University Project,
RB (A) (B) (C)
3.850%, 09/23/97 8,000 8,000
Philadelphia, Authority for Industrial
Development Revenue, City Line
Holiday Inn Project, Ser 96,
VRDN, RB (A) (B)
3.450%, 09/09/97 5,500 5,500
Philadelphia, Industrial Development
Authority, Harbor View Towers
Project, VRDN, RB (A) (B) (C)
3.600%, 09/09/97 780 780
Philadelphia, Industrial Revenue
Authority, Inglis Housing Project,
VRDN, RB (A) (B) (C)
3.450%, 09/09/97 13,000 13,000
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Sayre, Health Care Facilities
Authority, Pennsylvania Capital
Finance Project, Ser F,
VRDN, RB, AMBAC (A) (B)
3.300%, 09/09/97 $ 2,200 $ 2,200
Schuylkill County, Industrial
Development Authority, Gilberton
Power Project, VRDN,
RB (A) (B) (C)
3.300%, 09/09/97 10,500 10,500
--------
94,857
--------
SOUTH CAROLINA -- 3.0%
Anderson County, School District
Authority, GO
5.125%, 05/01/98 1,000 1,008
Charleston Center Tax Exempt
Bond Grantor Trust #1, VRDN,
RB (A) (B) (C)
3.850%, 02/01/98 7,262 7,263
Charleston Center Tax Exempt
Bond Grantor Trust #2, VRDN,
RB (A) (B) (C)
3.900%, 11/01/97 4,000 4,000
Charleston Center Tax Exempt
Bond Grantor Trust #5, VRDN,
RB (A) (B) (C)
3.700%, 12/01/97 4,035 4,035
Charleston Center Tax-Exempt
Bond Grantor Trust #4, VRDN,
RB (A) (B) (C)
3.850%, 12/01/97 7,267 7,268
Lexington, Water and Sewer
Revenue, Bond Anticipation
Notes Project, GO
4.750%, 10/01/97 7,435 7,438
--------
31,012
--------
SOUTH DAKOTA -- 0.1%
Watertown, Industrial Development
Authority, Ramkota Project, Ser 93,
VRDN, RB (A) (B) (C)
3.450%, 09/09/97 1,280 1,280
--------
TENNESSEE -- 1.1%
GAF Tax-Exempt Bond Grantor Trust,
Ser A, VRDN, RB (A) (B) (C)
4.250%, 09/02/97 4,480 4,480
Montgomery County, Public Building
Authority Pooled Financing
Government Revenue, Tennessee
County Loan Pool Project,
VRDN, RB (A) (B) (C)
3.400%, 09/09/97 3,000 3,000
27
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
SEI TAX EXEMPT TRUST -- AUGUST 31, 1997
INSTITUTIONAL TAX FREE PORTFOLIO--CONTINUED
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Nashville Metropolitan Government,
Toys "R" Us Project, Ser 84,
VRDN, RB (A) (B) (C)
3.600%, 09/09/97 $1,030 $ 1,030
Shelby County, Health Education
& Housing Facilities, Metropolitan
Government Industrial Development,
Rhodes College Project, VRDN,
RB (A) (B) (C)
3.800%, 09/02/97 2,900 2,900
--------
11,410
--------
TEXAS -- 6.8%
Arlington, Industrial Development
Revenue, Dallas-Fort Worth
Newspaper, Ser 85, VRDN,
RB (A) (B) (C)
3.850%, 09/09/97 6,200 6,200
Brazo River, Hoffman-Laroche
Project, Ser 85, VRDN,
RB (A) (B) (C)
3.475%, 09/09/97 1,000 1,000
Corpus Christi, Industrial
Development Committee,
Texas-Air Project, VRDN,
RB (A) (B) (C)
3.900%, 02/01/98 4,620 4,620
Gulf Coast, Industrial Development
Authority, Petrounited Project, VRDN,
RB (A) (B) (C)
3.450%, 09/09/97 3,800 3,800
Harris County Health Facilities,
Development Corporate Revenue,
Buckner Retirement Services
Project, VRDN, RB (A) (B) (C)
3.350%, 09/09/97 15,000 15,000
Harris County Multi-Family Housing,
Glenhollow Project, VRDN,
RB (A) (B) (C)
3.725%, 09/09/97 1,900 1,900
Harris County Multi-Family Housing,
Greenhouse Project, VRDN,
RB (A) (B) (C)
3.725%, 09/09/97 2,300 2,300
Harris County, Health Facility
Development Corporate Hospital
Revenue, St. Luke's Episcopal
Project, Ser D, VRDN, RB (A) (B)
3.700%, 09/02/97 5,300 5,300
Montgomery County, Municipal
Utility, GO (D)
Pre-Refunded @ 100
10.500%, 10/01/97 200 201
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Nacogdocles Health Finance
Development Committee,
South Central Health Services
Project, VRDN, RB (A) (B) (C)
3.750%, 09/02/97 $ 2,700 $ 2,700
North Carolina National Bank Tax-
Exempt Trust, Texas, Ser 90-B,
VRDN, (A) (B) (C)
4.250%, 09/09/97 2,865 2,865
Richardson, Independent School
District, Ser A, GO (A) (B) (C)
3.620%, 09/04/97 12,000 12,000
San Angelo, Independent School
District, GO (B) (C)
3.900%, 04/09/98 11,050 11,057
Trinity River, Industrial Development
Authority, Trinity River Project,
VRDN, RB (A) (B)
3.475%, 09/09/97 2,000 2,000
--------
70,943
--------
UTAH -- 0.9%
Carbon County, Pollution Control
Revenue, Pacificorp Project,
VRDN, RB (A) (B)
3.750%, 09/02/97 1,700 1,700
Northwest Mutual Life Tax-Exempt
Mortgage Trust, VRDN,
RB (A) (B) (C)
4.500%, 02/15/98 80 80
Salt Lake City, Industrial
Development Authority, Deveraux
Partners Project, VRDN,
RB (A) (B) (C)
3.500%, 09/09/97 2,500 2,500
Sandy City, Industrial Development
Authority, Boyer 106 S Project,
VRDN, RB (A) (B) (C)
3.400%, 09/09/97 2,820 2,820
Sandy City, Industrial Development
Revenue, Boyer Alta View Project,
VRDN, RB (A) (B) (C)
3.400%, 09/09/97 1,660 1,660
West Valley, Industrial Development
Authority, Johnson Matthey Project,
VRDN, RB (A) (B) (C)
3.800%, 09/02/97 1,000 1,000
--------
9,760
--------
VIRGINIA -- 1.5%
Harrison Multi-Family Housing,
Rolling Brook Village Apartment,
VRDN, RB (A) (B) (C)
3.700%, 02/02/98 7,000 7,000
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
28
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Norfolk Industrial Development
Authority, Toys "R" Us Project,
Ser 1984, VRDN, RB (A) (B) (C)
3.475%, 09/09/97 $ 1,425 $ 1,425
Northwest Mutual Life Tax-Exempt
Mortgage Trust, VRDN,
RB (A) (B) (C)
4.500%, 02/15/98 54 54
Richmond, Public Utility Authority,
Ser A (A) (B) (C)
3.450%, 09/09/97 7,500 7,500
--------
15,979
--------
WASHINGTON -- 0.5%
Housing Finance Community,
Pioneer Human Services Project,
Ser 91, VRDN, RB (A) (B) (C)
3.400%, 09/09/97 1,775 1,775
Kent Economic Development
Revenue, Northwest Aluminum
Products, VRDN, RB (A) (B) (C)
3.950%, 09/02/97 1,500 1,500
Redmond Public Corporation
Industrial Development Revenue,
Integrated Circuit Project, Ser 88,
VRDN, RB (A) (B) (C)
4.100%, 09/02/97 390 390
Student Loan Finance Association
Project, Second Series, VRDN,
RB (A) (B) (C)
3.600%, 09/09/97 1,605 1,605
--------
5,270
--------
WEST VIRGINIA -- 2.0%
Charleston Building Common
Parking Facility Revenue,
Charlestown Town Center,
Ser A (A) (B) (C)
3.380%, 09/09/97 13,300 13,300
Parkersburg, Industrial Development
Revenue, B-H Associates Project,
VRDN, RB (A) (B) (C)
3.725%, 09/09/97 3,500 3,500
West Virginia State Hospital, Finance
Authority Hospital Revenue,
St. Joseph's Hospital Project,
VRDN, RB (A) (B) (C)
3.400%, 09/09/97 2,500 2,500
Wood County, Industrial
Development Revenue, Aga
Gas Project, VRDN, RB (A) (B) (C)
3.750%, 09/02/97 1,500 1,500
--------
20,800
--------
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
WISCONSIN -- 6.4%
Beloit, School District, TRAN
3.940%, 10/30/97 $ 2,010 $ 2,010
Delavan Darein, School
District, BAN (B)
4.150%, 04/15/98 2,000 2,003
Eau Claire, School District, TRAN
3.920%, 09/29/97 5,000 5,000
Elkhorn, School District, BAN, GO
4.250%, 04/01/98 2,500 2,500
Green Bay Area Public School
District Anticipation Note,
Fed Tax Exempt - State Taxable
3.840%, 02/02/98 7,000 7,001
Hartford Industrial Development
Revenue, IC Products Company
Project, VRDN, RB (A) (B) (C)
3.800%, 09/02/97 5,000 5,000
Hartland-Lakeside, School
District, TRAN
4.270%, 09/19/97 1,000 1,000
Janesville School District, TRAN
3.910%, 09/25/97 3,000 3,000
Kaukauna, School District, BAN
4.350%, 02/26/98 3,500 3,504
Kenosha School District, TRAN
4.250%, 09/26/97 8,100 8,102
Menasha Joint School District, TRAN
4.500%, 10/06/97 2,400 2,401
Mequon & Thiensville School
District, TRAN
4.250%, 09/10/97 2,250 2,250
Merrill Area Community Public
School, BAN
4.400%, 04/01/98 7,500 7,506
Northwest Mutual Life Tax-Exempt
Mortgage Trust, VRDN,
RB (A) (B) (C)
4.500%, 02/15/98 83 83
Oregon County School District, TRAN
4.240%, 09/17/97 2,300 2,300
Village of Menomonee Industrial
Development Revenue, Maysteel
Corporation, VRDN,
RB (A) (B) (C)
3.485%, 09/09/97 3,000 3,000
Wausau Industrial Development
Revenue, Venture Partnership
Project, VRDN, RB (A) (B) (C)
3.450%, 09/09/97 10,000 10,000
--------
66,660
--------
29
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
SEI TAX EXEMPT TRUST -- AUGUST 31, 1997
INSTITUTIONAL TAX FREE PORTFOLIO--CONCLUDED
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
WYOMING -- 0.5%
Cheyenne County, Revenue
Refunding, Holiday Inn Project,
VRDN, RB (A) (B) (C)
3.800%, 10/01/97 $1,300 $ 1,300
Evanston, Industrial Development
Revenue, Safeway Incorporated
Project, VRDN, RB (A) (B) (C)
3.900%, 12/01/97 3,700 3,700
Northwest Mutual Life Tax-Exempt
Mortgage Trust, VRDN,
RB (A) (B) (C)
4.500%, 02/15/98 61 61
---------
5,061
---------
Total Municipal Bonds
(Cost $1,053,710) 1,053,710
---------
Total Investments -- 100.9%
(Cost $1,053,710) 1,053,710
----------
OTHER ASSETS AND LIABILITIES, NET -- (0.9%) (9,599)
---------
NET ASSETS:
Portfolio Shares of Class A (unlimited
authorization -- no par value) based on
1,000,018,751 outstanding shares
of beneficial interest 999,850
Portfolio Shares of Class B (unlimited
authorization -- no par value) based on
34,773,966 outstanding shares of
beneficial interest 34,774
Portfolio Shares of Class C (unlimited
authorization -- no par value) based on
9,379,416 outstanding shares of
beneficial interest 9,379
Undistributed net investment income 119
Accumulated net realized loss
on investments (11)
----------
TOTAL NET ASSETS -- 100.0% $1,044,111
==========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE -- CLASS A $ 1.00
==========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE -- CLASS B $ 1.00
==========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE -- CLASS C $ 1.00
==========
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
AMBAC AMERICAN MUNICIPAL BOND ASSURANCE COMPANY
BAN BOND ANTICIPATION NOTE
FGIC FINANCIAL GUARANTY INSURANCE CORPORATION
FSA FINANCIAL SECURITY ASSURANCE
GO GENERAL OBLIGATION
RAN REVENUE ANTICIPATION NOTE
RB REVENUE BOND SER SERIES
TAN TAX ANTICIPATION NOTE
TAW TAX ANTICIPATION WARRANT
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, 1997.
(B) PUT AND DEMAND FEATURE--THE DATE REPORTED ON THE STATEMENT OF NET ASSETS IS
THE LESSER OF THE MATURITY DATE OR PUT/DEMAND 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 -- 101.4%
PENNSYLVANIA -- 101.4%
Allegheny County Education
Building Authority, University
of Pittsburgh Project, Ser 85 B,
VRDN, RB (A) (B) (C)
3.250%, 09/09/97 $ 250 $ 250
Allegheny County, Pennsylvania
Industrial Development Authority,
Longwood At Oakmont Project,
Ser D, VRDN, RB (A) (B) (C)
3.750%, 09/02/97 1,000 1,000
Allegheny County, Pennsylvania
Industrial Development Authority,
Longwood At Oakmont Project,
Ser B, VRDN, RB (A) (B) (C)
3.750%, 09/02/97 800 800
Berks County Industrial Development
Authority, Rilsan Industrial Project,
VRDN, RB (A) (B) (C)
3.475%, 09/09/97 1,000 1,000
Bradford County Industrial
Development Authority, Guthrie
Project, VRDN, RB (A) (B) (C)
3.750%, 09/02/97 1,300 1,300
Butler County Industrial
Development Authority, Pennzoil
Project, VRDN, RB (A) (B) (C)
3.700%, 09/09/97 600 600
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
30
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Chartiers Valley Industrial &
Commercial Development
Authority, Commercial
Development Revenue, Parkay
Center West Project, Ser A,
VRDN, RB (A) (B) (C)
3.450%, 09/09/97 $1,415 $ 1,415
Chester County Health & Education
Facilities Authority, Barclay
Friends Project, Ser A, VRDN,
RB (A) (B) (C)
3.300%, 09/09/97 650 650
Clarion County, Pennsylvania
Industrial Development Authority
Meritcare, Ser A, VRDN,
RB (A) (B) (C)
3.450%, 09/09/97 1,600 1,600
Cumberland Valley School District,
Ser A, GO
6.150%, 09/02/97 95 95
Cumberland Valley School District,
Ser B, GO
5.750%, 09/02/97 385 385
Dauphin County, General Hospital
Authority, Reading Hospital and
Medical Center Project, Ser A
VRDN, RB (A) (B)
3.300%, 09/09/97 1,200 1,200
Delaware County, Industrial
Development Authority, Henderson/
Radnor Joint Venture Project,
VRDN, RB (A) (B) (C)
3.600%, 09/09/97 1,095 1,095
Delaware County, Industrial
Development Authority, Kimberly
Clark, Ser A, VRDN, RB (A) (B)
3.250%, 09/09/97 900 900
Emmaus General Authority,
VRDN, RB (A) (B) FSA Insured
3.400%, 09/09/97 1,550 1,550
Lancaster County, Higher Education
Authority, Franklin & Marshall
College Project, VRDN,
RB (A) (B) (C)
3.400%, 09/09/97 1,715 1,715
Lebanon County, Industrial
Development Authority, Aluminum
Company of America Project,
Ser 92, VRDN, RB (A) (B) (C)
3.400%, 09/09/97 1,020 1,020
Lebanon County, Industrial
Development Authority, Aluminum
Company of America Project,
Ser 1992, VRDN, RB (A) (B)
3.400%, 09/09/97 1,000 1,000
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Lehigh County, General Purpose
Authority, Lehigh Valley Hospital
Project, Ser A, VRDN, RB,
AMBAC (A) (B) (C)
3.650%, 09/02/97 $1,900 $ 1,900
Lehigh County Water Authority,
VRDN, RB, FGIC (A) (B) (C)
3.250%, 09/09/97 735 735
Lewisburg School District, TRAN
4.230%, 06/30/98 1,500 1,502
Montgomery County, Industrial
Development Authority, Ikea
Property Project, VRDN, RB
(A) (B) (C)
3.450%, 09/09/97 1,000 1,000
Montgomery County, Industrial
Development Authority, Valley
Square Project, VRDN,
RB (A) (B) (C)
3.300%, 09/09/97 755 755
Norristown, TRAN
3.900%, 12/31/97 1,250 1,250
Northumberland County, Industrial
Development Authority, Atlas
Development Association Project,
VRDN, RB (A) (B) (C)
3.450%, 09/09/97 95 95
Northumerberland County, Merck
Corporation, Atlas Development
Association Project, VRDN,
RB (A) (B)
3.600%, 09/09/97 1,300 1,300
Northeastern Hospital & Education
Authority, Allhealth Pooled
Financing Program, VRDN,
RB (A) (B) (C)
3.450%, 09/09/97 500 500
Pennsylvania Infrastructure
Investment Authority, Pennvest
Project, Ser B, RB
5.350%, 09/02/97 400 400
Pennsylvania State Higher Education
Authority, Council Independent
Colleges Project, Ser A6,
VRDN, RB (A) (B) (C)
3.450%, 09/02/97 1,200 1,200
Pennsylvania State Higher Education
Facility, Allegheny College Project,
VRDN, RB (A) (B) (C)
3.300%, 09/09/97 100 100
Pennsylvania State Higher Education
Facilities Authority, Carnegie
Mellon University Project, Ser B
VRDN RB (A) (B) (C)
3.700%, 09/02/97 1,500 1,500
31
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
SEI TAX EXEMPT TRUST -- AUGUST 31, 1997
PENNSYLVANIA TAX FREE PORTFOLIO--CONCLUDED
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Pennsylvania State, Second Ser A, GO,
MBIA Insured
6.000%, 11/01/97 $ 1,000 $ 1,004
Pennsylvania State, First Ser A, GO
6.500%, 06/01/98 200 204
Pennsylvania State, Temple
University Funding, GO
4.750%, 05/18/98 1,250 1,257
Pennsylvania State, Thomas
Jefferson University Project,
Ser B, VRDN, RB (A) (B) (C)
3.850%, 09/23/97 1,250 1,250
Philadelphia Hospital and Higher
Education Facilities Authority,
Childrens Hospital Project, Ser A,
VRDN, RB (A) (B) (C)
3.700%, 09/02/97 1,700 1,700
Philadelphia Industrial
Development Authority, Multi-
Family Housing, Harbor View
Towers Project, VRDN,
RB (A) (B) (C)
3.600%, 09/09/97 1,065 1,065
Philadelphia Redevelopment
Authority, Rivers Edge Project,
VRDN, RB (A) (B) (C)
3.600%, 09/09/97 1,400 1,400
Philadelphia Industrial Development
Revenue, City Line Holiday Inn
Project, Ser 96 (A) (B) (C)
3.450%, 09/09/97 1,500 1,500
Philadelphia Revenue Authority,
Inglis Housing Project, VRDN,
RB (A) (B) (C)
3.450%, 09/09/97 1,000 1,000
Philadelphia, PA School District
Authority, TRAN (C)
4.500%, 06/30/98 1,500 1,507
Sayre Health Care Facilities Authority,
Pennsylvania Capital Finance
Project, Ser F, VRDN, RB,
AMBAC Insured (A) (B)
3.300%, 09/09/97 200 200
Sayre, Pa Health Care Facility
Authority, Pennsylvania Capital
Financing Project, Ser 85A, VRDN,
RB, AMBAC Insured (A) (B)
3.300%, 09/09/97 500 500
Schuylkill County, Industrial
Development Authority, Gilberton
Power Project, VRDN,
RB (A) (B) (C)
3.300%, 09/09/97 1,000 1,000
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Schuylkill County, Resource Recovery
Revenue Authority, Northeastern
Power Project, Ser A, VRDN,
RB (A) (B)
3.750%, 09/02/97 $2,000 $ 2,000
Scranton-Lackawana Health &
Welfare Authority, University of
Scranton Project, VRDN,
RB (A) (B) (C)
4.000%, 11/01/97 670 670
Shaler Township, TRAN
3.950%, 12/31/97 800 800
Somerset County, PA Hospital
Authority, Somerset Community
Hospital Project, Ser A, VRDN,
RB (A) (B) (C)
4.250%, 03/01/98 1,000 1,001
Union County, PA Hospital
Authority Revenue, United
Care Methodist Continuing
Care Services Project, VRDN,
RB (A) (B) (C)
3.500%, 09/09/97 1,400 1,400
York General Authority, Pooled
Financing Revenue, VRDN,
RB (A) (B) (C)
3.350%, 09/09/97 1,000 1,000
--------
50,270
--------
Total Municipal Bonds
(Cost $50,270) 50,270
--------
Total Investments -- 101.4%
(Cost $50,270) 50,270
--------
OTHER ASSETS AND LIABILITIES, NET -- (1.4%) (707)
--------
NET ASSETS:
Portfolio Shares of Class A (unlimited
authorization -- no par value) based on
49,581,287 outstanding shares of
beneficial interest 49,581
Overdistributed net investment income (4)
Accumulated net realized loss
on investments (14)
--------
TOTAL NET ASSETS -- 100.0% $49,563
========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE -- CLASS A $ 1.00
========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
32
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
AMBAC AMERICAN MUNICIPAL BOND ASSURANCE COMPANY
GO GENERAL OBLIGATION
MBIA MUNICIPAL BOND INSURANCE ASSOCIATION
RB REVENUE BOND
SER SERIES
TAN TAX ANTICIPATION NOTE
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, 1997. (B) PUT & DEMAND FEATURE--THE
DATE REPORTED ON THE STATEMENT OF NET ASSETS IS THE LESSER OF THE MATURITY
DATE OR THE PUT/DEMAND DATE. (C) SECURITIES ARE HELD IN CONNECTION WITH
A LETTER OF CREDIT FROM A MAJOR COMMERCIAL BANK OR FINANCIAL INSTITUTION.
INTERMEDIATE-TERM
MUNICIPAL PORTFOLIO
MUNICIPAL BONDS -- 100.3%
ALABAMA -- 0.7%
State Private Colleges & Tuskegee
University Project, Ser A, RB
5.700%, 09/01/10 $ 825 $ 839
5.700%, 09/01/11 870 882
--------
1,721
--------
ALASKA -- 1.5%
Anchorage Electric Utility, RB,
MBIA
8.000%, 12/01/06 1,775 2,201
8.000%, 12/01/07 1,310 1,646
--------
3,847
--------
ARIZONA -- 0.7%
Tempe, GO
8.000%, 07/01/01 735 826
Yuma County, Arizona Jail Revenue,
RB AMBAC
6.000%, 07/01/03 1,025 1,103
--------
1,929
--------
CALIFORNIA -- 17.9%
Anaheim Public Finance Authority,
Electric Utility Project, RB, MBIA
Callable 04/01/03 @ 102
5.400%, 10/01/08 2,000 2,067
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Anaheim Public Finance Authority,
Public Improvements Project,
Ser C, RB, FSA
6.000%, 09/01/13 $2,325 $ 2,531
Bakersfield, Convention Center
Expansion Project,
COP, MBIA
5.200%, 04/01/05 1,000 1,040
California State, GO
6.600%, 02/01/09 1,000 1,149
Contra Costa County, Merrithew
Memorial Hospital Project,
COP, MBIA
5.250%, 11/01/05 2,000 2,085
Education Facility Authority,
University of San Francisco,
RB, MBIA
6.000%, 10/01/08 1,000 1,105
Elk Grove, Unified School District
Special Tax, Community Facilities
District #1, GO, AMBAC
6.500%, 12/01/07 1,000 1,146
Health Facilities Finance Authority,
Presbyterian Hospital Project,
RB, MBIA
5.250%, 05/01/06 2,080 2,138
Health Facilities Finance Authority,
Sisters of Providence, RB
5.500%, 10/01/05 1,100 1,147
Health Facilities Finance Authority,
Summit Medical Center, Ser A,
RB, FSA
5.250%, 05/01/04 1,500 1,562
Housing Finance Agency, Ser A,
RB, MBIA
5.300%, 08/01/14 430 436
Housing Finance Agency, Ser G, RB,
Callable 08/01/04 @ 102
7.250%, 08/01/17 1,250 1,355
Irvine Special Assessment, District
89-10, VRDN, GO (A) (E)
3.500%, 09/02/15 100 100
Los Angeles County Public Works
Financing Authority, Ser A,
RB, MBIA
5.125%, 09/01/08 1,380 1,416
Los Angeles, Department of Water &
Power Electric Plant, RB
9.000%, 10/15/02 2,000 2,412
Los Angeles, Unified School District,
Multiple Property Project, Ser A,
COP, FSA
5.100%, 10/01/06 1,050 1,083
33
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
SEI TAX EXEMPT TRUST -- AUGUST 31, 1997
INTERMEDIATE-TERM
MUNICIPAL PORTFOLIO--CONTINUED
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Los Angeles, Unified School District,
Ser A, GO, FGIC
6.000%, 07/01/12 $1,880 $ 2,047
Modesto, Irrigation District Finance
Authority, Ser A, RB, MBIA
5.150%, 10/01/04 1,000 1,044
Mojave Water Agency, GO, FGIC
Callable 09/01/06 @ 102
5.600%, 09/01/12 1,000 1,030
Oakland Health Facilities Authority,
Childrens Hospital Project,
Ser A, RB
5.000%, 07/01/01 1,175 1,203
Orange County, Local Transportation
Authority, First Ser-Measure M, RB
5.400%, 02/15/00 1,000 1,029
Orange County, Ser A, COP, MBIA
Callable 07/01/06 @ 102
5.800%, 07/01/16 1,000 1,034
Oxnard, California School District,
GO, MBIA
5.375%, 08/01/09 1,080 1,122
Pomona, Unified School District,
Ser A, GO, MBIA
5.600%, 08/01/07 1,040 1,110
Public Works, California State
University Project, Ser A, RB
5.500%, 10/01/07 2,000 2,110
Rancho Mirage, Joint Powers Finance
Authority, Eisenhower Med
Center Project, Ser A, COP, MBIA
Callable 07/01/07 @ 102
5.125%, 07/01/09 2,150 2,171
San Bernardo County, Medical
Center Financing Project,
COP, MBIA
5.000%, 08/01/03 1,500 1,532
Stanislaus, Waste to Energy Finance
Authority, Ogden Martin Systems
Project, RB,
Callable 01/01/00 @ 102
7.625%, 01/01/10 1,000 1,072
State Educational Facilities,
University of Southern California,
Ser A, RB
5.600%, 10/01/05 1,140 1,213
State, GO, Callable 06/01/06 @ 101
5.250%, 06/01/12 2,645 2,655
Statewide Communities
Development Authority,
San Gabriel Valley-A, RB, COP
6.000%, 09/01/06 1,000 1,074
University of California, Board of
Regents, Ser B, RB
6.500%, 09/01/02 1,995 2,162
--------
46,380
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
COLORADO -- 1.8%
Health Facilities Authority, Rocky
Mountain Adventist, RB
6.250%, 02/01/04 $1,500 $ 1,573
Highlands Ranch, Met Dist 1,
GO, AMBAC
5.500%, 09/01/06 1,000 1,059
Obligation Board Authority, Student
Loan Project, Ser L, RB
6.100%, 09/01/02 1,835 1,922
--------
4,554
--------
CONNECTICUT -- 1.0%
Haddam, GO, AMBAC
5.000%, 07/15/01 1,000 1,021
Mashantucket, Western Pequot
Tribe, Ser A-144A, RB
6.250%, 09/01/03 1,000 1,061
State Development Authority,
Pollution Control, Frito-Lay/
Pepsi Project
6.375%, 07/01/04 560 571
--------
2,653
--------
DELAWARE -- 0.4%
Wilmington Hospital, Franciscan
Health Systems, Project, Ser A,
VRDN, RB (A) (E)
3.750%, 07/01/11 900 900
Wilmington Hospital, Franciscan
Health Systems, Ser B, RB (A) (E)
3.750%, 07/01/11 100 100
--------
1,000
--------
DISTRICT OF COLUMBIA -- 1.0%
District of Columbia Hospital
Revenue, Washington Hospital
Center, RB, MBIA
Callable 08/05/02 @ 102
7.000%, 08/15/05 1,500 1,674
District of Columbia, Ser A, GO
5.125%, 06/01/99 1,000 1,011
--------
2,685
--------
FLORIDA -- 4.7%
Dade County, Ser CC-Rmktd, GO,
AMBAC
6.900%, 10/01/04 1,125 1,271
6.900%, 10/01/05 1,025 1,171
7.125%, 10/01/08 1,470 1,744
Dade County, Ser DD-Rmktd, GO,
AMBAC
7.600%, 10/01/05 1,070 1,272
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
34
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Florida Housing Finance Authority,
Capital Appreciation, Single
Family Mortgage, RB
Callable 01/15/10 @ 45.469
0.000%, 07/15/16 $1,950 $ 236
Fort Meyers, Improvement
Authority, Ser A, RB,
AMBAC Insured
5.100%, 12/01/01 1,010 1,040
Hillsborough County Utility
Authority, RB, MBIA (D)
9.750%, 12/01/03 1,425 1,719
Palm Beach County, Solid Waste
Authority, Ser A, RB,
AMBAC Insured
6.000%, 10/01/08 3,300 3,613
--------
12,066
--------
GEORGIA -- 1.8%
College Park, Business & Industrial
Development Authority, Civic
Center Project, Ser A,
RB, FSA
5.100%, 09/01/03 1,050 1,080
5.200%, 09/01/04 1,105 1,141
5.800%, 09/01/05 1,165 1,247
Gwinette County, School District
Authority, GO
Callable 02/01/01 @ 102
9.500%, 02/01/02 1,000 1,177
--------
4,645
--------
HAWAII -- 0.8%
Hawaii State, Ser CM,
GO, FGIC
5.500%, 12/01/03 1,835 1,931
--------
IDAHO -- 0.0%
Power County, Pollution Control
Revenue, FMC Corporation
Project, VRDN, RB (A) (E)
3.750%, 12/01/10 100 100
--------
ILLINOIS -- 4.6%
Cook County, GO, MBIA
7.250%, 11/01/07 2,000 2,372
Development Finance Authority,
Community Rehab Providers,
Ser A, RB
5.600%, 07/01/05 2,235 2,266
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Health Facility Authority,
RB, MBIA
7.900%, 08/15/03 $ 463 $ 475
Hospital Facilities, Metropolitan
Pier & State Exposition Authority,
McCormick Plaza Convention, RB
6.250%, 07/01/17 450 470
Housing Development Authority,
Ser A, RB, Callable 02/01/06 @ 102
5.650%, 02/01/16 1,000 1,020
Kane & DeKalb County, Unified
School District #301,
GO, AMBAC
6.300%, 12/01/04 2,640 2,911
McClean County Public Building
Commission, Lease Receipts,
Law & Justice Center, GO
7.300%, 11/01/02 1,280 1,437
State GO, Callable 08/01/99 @ 102
6.375%, 08/01/00 1,000 1,054
--------
12,005
--------
INDIANA -- 0.7%
Health Facilities Finance Authority,
Sisters of Saint Francis Health
Systems, RB,
Pre-Refunded @ 100 (C)
7.100%, 09/01/00 1,555 1,676
Rockport Pollution Control Revenue,
AEP Generating Company,
Project B, VRDN, RB (A)
3.750%, 07/01/25 100 100
--------
1,776
--------
IOWA -- 0.4%
Eddyville Pollution Control,
Cargill Inc. Project, RB
5.400%, 10/01/06 1,000 1,047
--------
KENTUCKY -- 1.2%
Kentucky State Property and
Buildings Commission,
Project Number 55, RB
6.000%, 09/01/08 2,500 2,706
State Turnpike Authority, Toll Road
Project, Ser A, RB
8.500%, 07/01/04 410 419
--------
3,125
--------
LOUISIANA -- 0.2%
Housing Finance Agency, Single
Family Housing Project,
RB, MBIA
5.125%, 12/01/10 405 411
--------
35
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
SEI TAX EXEMPT TRUST -- AUGUST 31, 1997
INTERMEDIATE-TERM
MUNICIPAL PORTFOLIO--CONTINUED
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
MARYLAND -- 0.8%
Federick County, Ser B, GO,
Pre-Refunded @ 102 (C)
6.300%, 07/01/02 $1,000 $ 1,097
University of Maryland, System
Auxiliary Facility and Tuition,
Ser A, RB
5.000%, 04/01/05 1,000 1,025
--------
2,122
--------
MASSACHUSETTS -- 12.7%
Holyoke, GO, FSA Insured
5.500%, 06/15/03 1,640 1,718
Industrial Financing Agency, RB
Mandatory Put 05/01/02 @ 100 (B) (E)
5.000%, 05/01/02 1,000 1,009
Lowell, GO, FSA Insured,
Callable 02/15/01 @ 103
8.300%, 02/15/05 1,855 2,112
Massachusetts Bay Transportation
Authority, General Transportation
System, Ser A, RB
7.000%, 03/01/07 3,000 3,484
Massachusetts Bay Transportation
Authority, General Transportation
System, Ser A, RB
5.300%, 03/01/05 1,000 1,034
5.500%, 03/01/09 1,230 1,288
Massachusetts Bay Transportation
Authority, General Transportation
System, Ser A, RB,
5.625%, 03/01/26 2,000 2,015
Massachusetts State Housing
Finance Agency, Residential
Development, RB
Callable 05/15/02 @ 102
6.875%, 11/15/11 1,935 2,092
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 10 6
8.750%, 07/01/02 5 6
8.750%, 01/01/03 5 6
8.750%, 07/01/03 10 6
8.750%, 01/01/04 5 6
8.750%, 07/01/04 5 12
8.750%, 07/01/05 5 6
New England Education Loan
Marketing Corporation,
Issue A, RB
5.800%, 03/01/02 1,475 1,541
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
State Housing Finance Agency,
Single Family Housing Project,
Ser 14, RB, FSA
Callable 06/01/00 @ 102
7.600%, 12/01/14 $ 980 $ 1,046
Springfield, GO, AMBAC
6.375%, 08/01/04 1,000 1,105
State, GO, Ser A
6.250%, 07/01/02 1,155 1,240
State, Ser E, VRDN, GO (A)
2.200%, 12/01/97 1,280 1,280
State, Ser B, VRDN, GO (A)
3.650%, 12/01/97 8,000 8,000
State Health & Education Facilities
Authority, Faulkner Hospital,
Ser C, RB
5.500%, 07/01/01 1,325 1,337
State Health & Education Facility
Agency, Lowell General Hospital,
Ser B, RB, FSA
Callable 06/01/07 @ 102
5.250%, 06/01/11 1,585 1,605
State Water Resource Authority,
Ser B, RB
5.250%, 03/01/13 1,000 994
--------
32,969
--------
MICHIGAN -- 3.0%
Battle Creek, Downtown
Development Authority,
Callable 05/01/04 @ 102
7.300%, 05/01/10 1,195 1,346
Greater Detroit Resource Recovery
Authority, Ser A, RB,
AMBAC Insured
5.500%, 12/13/03 1,525 1,601
Jackson County, Hospital Finance
Authority, Foote Memorial
Hospital, Ser A, RB, AMBAC
5.000%, 06/01/06 1,970 1,992
Kent Hospital Financing Authority,
Blodgett Memorial Medical Center,
Ser A, RB,
7.000%, 07/01/01 1,000 1,059
State Building Authority, Ser I, RB,
AMBAC Insured
5.500%, 10/01/05 1,500 1,579
State Housing Development
Authority, RB
0.000%, 04/01/15 1,300 175
--------
7,752
--------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
36
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
FACE
AMOUNT (000 VALUE (000)
- --------------------------------------------------------------------------------
MINNESOTA -- 0.7%
Maplewood, Health Care Facilities,
Health East Project, RB
Callable 11/15/01 @ 102
5.700%, 11/15/02 $1,740 $ 1,782
--------
MISSISSIPPI -- 1.0%
Hospital Equipment & Facilities
Authority, Rush Medical Foundation
Project, Ser A, GO
5.400%, 01/01/07 1,000 999
Mississippi Home Corporation,
Single Family Home Project,
Ser D, VRDN, RB (A) (E)
5.250%, 07/01/12 1,475 1,615
--------
2,614
--------
NEW JERSEY -- 0.4%
Camden County, Improvements
Authority, Cooper Health Care
Redevelopment Project, RB
5.500%, 02/15/02 1,000 1,015
--------
NEW MEXICO -- 1.2%
Farmington, New Mexico Hospital,
San Juan Regional Medical Center,
Ser A, RB, AMBAC
5.000%, 06/01/05 1,110 1,122
Mortgage Finance Authority, Single
Family Mortgage, Ser A-1, RB,
Callable 07/01/02 @ 102 (E)
6.850%, 07/01/10 1,190 1,258
Santa Fe, Saint Vincent's Hospital
Project, RB, FGIC
Pre-Refunded @ 100 (C)
7.500%, 07/01/02 720 801
--------
3,181
--------
NEW YORK -- 13.3%
Municipal Assistance Corporation,
City of New York, Ser G, RB
6.000%, 07/01/07 1,500 1,648
Municipal Assistance Corporation,
City of New York, Ser H, RB
6.250%, 07/01/07 2,300 2,570
New York, NY, Ser B, GO
MBIA Insured
5.600%, 08/15/06 4,150 4,394
New York, NY, Ser I, GO
AMBAC Insured
5.750%, 03/15/07 1,000 1,066
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
State Dormitory Authority, Beth
Israel Medical Center, Ser A,
RB MBIA Insured
5.000%, 11/01/07 $1,065 $ 1,076
State Dormitory Authority,
Department of Health, RB
5.500%, 07/01/03 1,000 1,037
State Dormitory Authority,
Mental Hospital, Ser E, RB,
AMBAC Insured
6.000%, 08/15/05 2,000 2,157
State Dormitory Authority, State
University Educational
Facility, Ser A, RB
5.500%, 05/15/09 4,400 4,499
State Energy Research &
Development Authority, Pollution
Control Project, VRDN, RB (A)
3.650%, 06/01/29 8,505 8,505
State Medical Care Facility Finance
Agency, Adult Day Care, Ser C, RB
5.350%, 11/15/05 820 853
State Medical Care Facility Finance
Agency, Ser C, RB, FHA Insured
5.200%, 08/15/05 500 522
State Medical Care Facility Finance
Agency, St Lukes, Ser A, RB,
Callable 08/15/03 @ 102
FHA Insured
5.600%, 08/15/13 2,005 2,040
State Urban Development
Corporation, Center for
Individual Innovation Project, RB
6.250%, 01/01/09 1,325 1,436
State Urban Development
Corporation, Correctional
Facilities, Ser G, RB,
Callable 01/01/00 @ 102
7.100%, 01/01/03 2,500 2,669
--------
34,472
--------
NORTH CAROLINA -- 0.4%
Eastern Municipal Power Agency,
Ser A, RB, MBIA Insured
5.500%, 01/01/04 1,000 1,043
--------
OHIO -- 3.4%
Cincinnati, City School District,
Ser C, TRAN, AMBAC Insured
5.000%, 12/01/01 1,000 1,016
Dayton, Special Facilities, Air
Freight Project, RB
6.050%, 10/01/09 1,000 1,039
37
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
SEI TAX EXEMPT TRUST -- AUGUST 31, 1997
INTERMEDIATE-TERM
MUNICIPAL--CONTINUED
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
State Building Authority,
Correctional Facilities, Ser A, RB
5.000%, 10/01/03 $2,000 $ 2,058
State Building Authority,
Administration Building Fund,
Ser A, RB
5.500%, 10/01/07 1,700 1,796
State Elementary & Secondary
Education Cap Facility, RB
5.100%, 12/01/05 1,790 1,839
Strongsville, City School District,
GO, MBIA
5.300%, 12/01/10 1,050 1,083
--------
8,831
--------
OKLAHOMA -- 1.6%
Central Oklahoma Transportation
& Parking Authority,
Ser 1973, RB (D)
6.000%, 07/01/03 150 157
McAlester Public Works Authority,
RB, FSA
8.100%, 12/01/08 875 1,100
State Industrial Development
Authority, Integris Health,
RB, AMBAC
5.250%, 08/15/06 1,255 1,299
Tulsa Industrial Development
Authority, St Johns Medical
Center, RB (D)
6.875%, 01/01/02 420 446
Tulsa Port, Industrial Development
Authority, Cargill Inc. Project, RB
5.350%, 09/01/06 1,000 1,038
--------
4,040
--------
OREGON -- 0.3%
Umatilla County, Hospital Facility
Authority, Franciscan Health
Systems Project, Ser A, VRDN,
RB (A) (E)
3.750%, 12/01/24 300 300
Umatilla County, Hospital Facility
Authority, Franciscan Health
Systems, Ser B, VRDN, RB (A) (E)
3.750%, 12/01/24 400 400
--------
700
--------
PENNSYLVANIA -- 3.8%
Easton Joint School Authority, RB (D)
5.350%, 04/15/02 210 216
Neshaminy School District,
GO, FGIC
5.250%, 02/15/07 2,075 2,153
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Newcastle Hospital Authority,
Jameson Memorial Hospital,
RB, MBIA
5.500%, 07/01/08 $1,605 $ 1,681
Pittsburgh, Water & Sewer
Authority, Ser A, RB, Pre-Refunded
@ 100, FGIC
6.000%, 09/01/16 2,000 2,120
State Industrial Development
Authority, RB, AMBAC
7.000%, 07/01/07 1,000 1,168
State Higher Education Facility
Authority, Allegheny/Delaware
Valley, Ser A, RB, MBIA
5.500%, 11/15/08 2,000 2,098
Westmoreland County, Municipal
Authority, Special Obligation (D)
9.125%, 07/01/10 445 536
--------
9,972
--------
PUERTO RICO -- 1.3%
Electric Power Authority, Ser AA,
RB, MBIA
5.000%, 07/01/07 2,160 2,195
Municipal Finance Agency, Ser A,
RB, FSA
6.000%, 07/01/05 1,000 1,086
--------
3,281
--------
SOUTH CAROLINA -- 1.4%
Jobs Economic Development
Authority, St. Francis Hospital,
VRDN, RB (A) (E)
3.450%, 07/01/22 1,400 1,400
Public Service Authority, Ser B, RB,
Callable 07/01/01 @ 102
6.700%, 07/01/02 1,220 1,333
Spartanburg County, School
District #5, COP, MBIA
5.400%, 07/01/08 1,000 1,036
--------
3,769
--------
SOUTH DAKOTA -- 0.9%
Health & Educational Facilities
Authority, RB, MBIA
6.000%, 07/01/08 1,025 1,112
Housing Development Authority,
Homeownership Mortgage,
Ser A, RB
5.500%, 05/01/10 985 1,001
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
38
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Student Loan Assistance
Corporation, Ser A, RB
7.000%, 08/01/98 $ 180 $ 185
--------
2,298
--------
TENNESSEE -- 0.6%
Hendersonville, Industrial
Development Authority,
Ashford 83 Association Project, RB
5.950%, 12/15/08 1,500 1,543
--------
TEXAS -- 7.1%
Austin Independent School
District, GO (D)
9.000%, 07/01/99 645 700
Austin Utility Systems, Ser B, RB,
Callable 11/15/98 @ 102
7.250%, 11/15/03 1,175 1,235
7.750%, 11/15/08 600 637
Cedar Hill, Independent School
District, RB (E)
6.450%, 08/15/03 2,225 2,448
Department of Housing &
Community Affairs, Single
Family, Ser B-CL2, RB
Callable 09/01/06 @ 102
5.550%, 09/01/11 2,000 2,078
Harris County, GO
10.000%, 10/01/00 1,850 2,144
7.000%, 10/01/01 2,000 2,193
Harris County, Health Facilities
Development Authority, Memorial
Hospital Systems Project, Ser A, RB
6.000%, 06/01/09 1,825 1,989
Houston Housing Finance Corporation,
Single Family Mortgage, Ser B-1,
RB, Callable 12/01/06 @ 102
8.000%, 06/01/14 1,000 1,095
Lone Star Airport Improvement
Authority, VRDN, RB (A) (E)
3.750%, 12/01/14 400 400
Plano, GO
5.625%, 09/01/06 1,020 1,086
State Department of Housing &
Community Affairs, Single Family
Mortgage, Zero Coupon, RB
Callable 09/01/04 @ 49.528
0.000%, 03/01/15 1,170 363
Texas State Public Finance Authority,
Ser A, RB, AMBAC
6.000%, 08/01/02 1,000 1,069
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Tyler Health Facilities Development
Corporation, East Texas Medical
Center Project, Ser C,
RB, FSA
5.000%, 11/01/07 $1,000 $ 1,010
--------
18,447
--------
UTAH -- 0.7%
Salt Lake City Airport, RB,
FGIC Insured
7.400%, 06/01/00 815 857
State Housing Finance Agency,
Single Family Mortgage, Issue B,
RB, FHA
Callable 07/01/03 @ 102
5.125%, 07/01/24 955 963
--------
1,820
--------
VIRGINIA -- 1.3%
Hampton, Sentara Health System,
Ser A, RB
5.375%, 11/01/10 1,000 1,013
State Housing Development
Authority, Multi-Family
Housing, Ser H, RB
5.250%, 05/01/03 685 709
State Housing Development
Authority, Ser A, RB
Callable 01/01/02 @ 102
7.100%, 01/01/22 1,250 1,328
State Housing Development
Authority, Zero Coupon, RB
Callable 05/01/97 @ 17.158
0.000%, 11/01/17 2,200 402
--------
3,452
--------
WASHINGTON -- 2.4%
Clark County, Public Utility
District # 001, RB, FGIC
6.000%, 01/01/04 2,525 2,705
Grant County, Public Utility
District #2, RB
5.625%, 01/01/07 2,470 2,590
King County, Ser D, GO
5.250%, 12/01/04 1,000 1,039
--------
6,334
--------
WEST VIRGINIA -- 0.8%
State Building Community Lottery,
Ser A, RB MBIA
5.500%, 07/01/05 2,100 2,200
--------
39
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
SEI TAX EXEMPT TRUST -- AUGUST 31, 1997
INTERMEDIATE-TERM
MUNICIPAL--CONCLUDED
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
WISCONSIN -- 1.4%
Housing & Economic Development
Authority, Home Ownership,
Ser 1, RB, FHA Insured,
Callable 07/01/02 @ 102
6.600%, 09/01/07 $1,300 $ 1,378
Public Power Inc., Power Supply
Systems, Ser A, RB,
Pre-Refunded @ 102,
AMBAC Insured (C)
6.875%, 07/01/01 2,000 2,210
--------
3,588
--------
WYOMING -- 0.4%
Wyoming Student Loan
Corporation, RB
6.250%, 12/01/99 1,000 1,033
--------
Total Municipal Bonds
(Cost $255,260) 260,133
--------
Total Investments -- 100.3%
(Cost $255,260) 260,133
--------
OTHER ASSETS AND LIABILITIES, NET -- (0.3%) (895)
--------
NET ASSETS:
Portfolio Shares of Class A (unlimited
authorization -- no par value) based on
24,067,536 outstanding shares of
beneficial interest 255,233
Undistributed net investment income 29
Accumulated net realized loss
on investments (897)
Net unrealized appreciation on investments 4,873
--------
TOTAL NET ASSETS -- 100.0% $259,238
========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE -- CLASS A $ 10.77
========
AMBAC AMERICAN MUNICIPAL BOND ASSURANCE COMPANY
COP CERTIFICATE OF PARTICIPATION
FGIC FINANCIAL GUARANTY INSURANCE CORPORATION
FHA FEDERAL HOUSING AGENCY
FSA FINANCIAL SECURITY ASSURANCE
GO GENERAL OBLIGATION
MBIA MUNICIPAL BOND INSURANCE ASSOCIATION
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, 1997. (B) MANDATORY REDEMPTION--THE
DATE REPORTED ON THE STATEMENT OF NET ASSETS IS THE MANDATORY
REDEMPTION DATE.
(C) PRE-REFUNDED SECURITY--THE 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
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
MUNICIPAL BONDS -- 97.9%
PENNSYLVANIA -- 97.9%
Allegheny County Hospital
Development Authority, RB (C)
7.250%, 07/01/03 $305 $ 330
6.750%, 05/01/04 130 139
Allegheny County Hospital
Development Authority, RB
Callable 08/01/00 @ 102
7.750%, 08/01/20 80 84
Allegheny County Hospital
Development Authority,
Harmarville Rehabilitation
Center, RB (C)
6.000%, 10/01/08 85 90
Allegheny County Hospital
Development Authority, Montefiore
Hospital, RB (C)
6.875%, 07/01/09 620 684
Allegheny County Hospital
Development Authority, North
Hills Passavant, RB (C)
6.750%, 07/01/05 25 27
Allegheny County Hospital
Development Authority, St.Margaret
Memorial, RB (C)
6.750%, 07/01/10 565 633
Allegheny County Industrial
Development Authority,
Mandatory Put 12/01/00, RB (B) (E)
5.250%, 12/01/00 25 26
Allegheny County Industrial
Development Authority, RB, AMT (B)
6.000%, 10/01/04 150 150
Allegheny County Sanitation
Authority, RB (C)
6.800%, 07/01/03 110 120
Allentown Hospital Authority,
Sacred Heart Hospital, RB (C)
8.000%, 03/01/09 130 153
Altoona Area School District
Authority, Blair County, Ser 78,
RB (A) Pre-Refunded @ 100
6.500%, 07/01/08 195 211
Altoona School District, RB (C)
6.250%, 01/01/03 5 5
Altoona Area School District, GO (C)
6.500%, 07/01/04 50 55
Armstrong School District,
GO, MBIA (C)
7.750%, 12/01/04 50 56
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
40
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Baldwin Whitehall School District,
RB (A) Partially Pre-Refunded
11/15/03 @ 100
6.699%, 11/15/07 $ 90 $ 102
Baldwin Whitehall School Building
Revenue, RB (C)
6.625%, 11/15/02 55 55
Bensalem Township Water &
Sewer Authority, RB (C)
6.750%, 12/01/14 100 118
Berks County, Industrial
Development Authority,
Construction Fasteners Project,
RB (B), AMT
5.400%, 12/01/03 25 25
Blair County Hospital
Authority, RB (C)
6.900%, 07/01/08 1,175 1,307
Blairsville-Saltsburg School
District, GO, AMBAC Insured (C)
9.000%, 05/15/03 50 58
Borough of Tarentum, Electric
Revenue, Ser-A, Asset Guaranty
Insured, RB
5.500%, 09/01/08 645 655
Bucks County Industrial
Development Authority, RB (C)
8.750%, 09/01/04 80 92
Bucks County Redevelopment
Authority, Warminster Heights,
Section 8, RB, FHA Insured
6.250%, 08/01/02 315 329
Butler Area Sewer Authority, Sewer
Revenue, RB (A)
Pre-Refunded @ 100
7.250%, 01/01/04 155 172
Butler County Industrial Development
Authority, RB (B)
4.900%, 11/01/03 700 705
Cambria County Hospital Authority,
Conemaugh Valley Memorial
Hospital, RB (C)
7.625%, 09/01/11 255 299
Chester County Hospital Authority,
Brandywine Hospital, RB (B)
7.000%, 07/01/10 105 107
Chester County Hospital Authority,
Paoli Memorial Hospital, RB (C)
5.500%, 02/01/03 160 164
City of Aliquippa, Beaver County,
RB, Asset Guaranty Insured
8.250%, 09/15/01 1,090 1,162
Cresswell Heights, Joint Water
Authority Revenue, RB (C)
7.375%, 03/01/07 90 101
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Cumberland Valley, School Project,
RB, MBIA Insured (C)
6.400%, 11/15/01 $ 40 $ 42
Dauphin County General
Authority, Phoenixville Hospital
PJ-A, RB, FGIC Insured
5.900%, 07/01/05 845 899
Dauphin County General School
Authority, Penncrest School
Project, RB Mandatory
Put 6/2/03 @ 100
6.600%, 06/02/03 915 986
Dauphin County General School
Authority, Mandatory
Put 6/4/98 @ 100, RB
6.000%, 06/01/98 50 51
Dauphin County General School
Authority, Mandatory
Put 6/1/04 @ 100, RB
6.700%, 06/01/26 1,220 1,315
Dauphin County General Authority,
Mandatory Put 06/01/98 @ 100,
VRDN, RB
6.600%, 06/01/26 50 50
Delaware County Authority,
Crozer-Chester Medical
Center, RB (C)
7.250%, 12/15/10 280 318
Delaware County Authority,
University Revenue, Villanova
University, RB (C)
9.625%, 08/01/02 195 221
Delaware County Revenue
Authority, Elwyn Project,
Connie Lee Insured, RB
6.000%, 06/01/11 3,250 3,449
Delaware River Port Authority,
PA & NJ River Bridges, RB (B) (C)
6.500%, 01/15/11 35 39
Delaware River Port Authority, RB (C)
6.000%, 01/15/10 105 111
Derry Township Sanitation Sewer
Authority, RB (C)
6.250%, 08/01/12 60 63
Easton Area School Authority (C)
6.250%, 04/15/02 75 81
Economy Municipal Authority,
Sewer Revenue, RB
6.000%, 12/15/03 55 56
Erie County Hospital Authority,
Erie County Geriatric, RB (C)
6.750%, 07/01/11 505 568
41
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
SEI TAX EXEMPT TRUST -- AUGUST 31, 1997
PENNSYLVANIA MUNICIPAL PORTFOLIO--CONTINUED
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Erie County Higher Education
Authority, Mercyhurst College
Project, RB
5.650%, 03/15/10 $ 180 $ 182
5.700%, 03/15/11 85 86
Erie County Hospital Authority,
Geriatric, RB (C)
6.250%, 07/01/11 50 54
Erie County Hospital Authority,
Hamot Health Systems, RB,
AMBAC Insured
6.700%, 02/15/02 500 544
Erie County Hospital Authority,
Hamot Medical Center
Project, RB (C)
6.900%, 01/01/05 190 206
Fayette County Hospital Authority,
Uniontown Hospital, Connie
Lee Insured, RB
4.850%, 06/15/01 1,000 1,005
5.000%, 06/15/02 300 302
5.100%, 06/15/03 1,065 1,080
5.200%, 06/15/04 100 101
5.300%, 06/15/05 1,000 1,015
5.450%, 06/15/07 740 756
Financing Authority, Municipal
Capital Improvements Program, RB
Callable 11/01/03 @ 102
6.600%, 11/01/09 700 756
Fort Le Boeuf School District,
Ser 93-A, GO, MBIA Insured
5.150%, 01/01/02 500 516
Fox Chapel Sanitation Sewer
Authority, RB
5.900%, 05/01/05 245 245
Franklin Hospital, Special
Obligation, RB (C)
7.125%, 10/01/08 85 95
Greene County Industrial
Development Authority,
Monogahela Power-Hatfield
Ferry, Ser A, RB
6.300%, 02/01/02 485 488
Hampton Township, GO
6.300%, 06/01/02 775 829
Harrisburg Authority, Lease Revenue,
RB (A) CGIC
Pre-Refunded @ 101
6.250%, 06/01/01 1,000 1,066
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Harrisburg, GO (C)
7.400%, 06/15/04 $ 165 $ 184
Harrisburg, GO, Ser A,
MBIA Insured (C)
9.750%, 04/15/04 40 49
Hickory Township Municipal
Authority, Sewer Revenue, RB (C)
6.250%, 02/01/14 325 350
Higher Education Assistance
Agency, Ser A, RB, AMT,
AMBAC Insured
7.050%, 10/01/16 3,500 3,692
Higher Education Assistance
Agency, Ser C, RB, AMT,
AMBAC Insured
7.150%, 09/01/21 500 527
Higher Education Authority,
Ser 95, RB, Asset Guaranty
4.750%, 09/15/02 270 271
4.850%, 09/15/03 250 251
4.950%, 09/15/04 515 517
5.150%, 09/15/06 345 348
Higher Education Facilities
Authority, College & University
Revenue, Ser 10, RB (C)
6.900%, 07/01/07 75 82
Higher Education Facilities
Authority, Hahnemann University
Project, Ser 91, RB, MBIA
Insured (A) Pre-Refunded @ 102
6.400%, 07/01/01 570 612
6.600%, 07/01/01 535 587
Higher Education Facilities
Authority, College of Textile
& Science, RB
5.450%, 02/01/07 200 199
Higher Education, College &
University, RB (C)
9.375%, 07/01/10 210 268
Higher Education, College of
Textiles & Science, Ser 96, RB
5.900%, 04/01/02 225 231
6.050%, 04/01/03 240 248
6.150%, 04/01/04 250 260
6.250%, 04/01/05 265 277
6.350%, 04/01/06 285 299
6.450%, 04/01/07 295 310
6.550%, 04/01/08 320 338
6.600%, 04/01/09 340 359
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
42
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Housing Finance Agency, Single
Family Mortgage, AMT, RB
Callable 10/01/00 @ 102
7.800%, 10/01/20 $ 100 $ 106
Housing Finance Agency, RB (C)
7.750%, 12/01/07 90 101
Housing Finance Agency, Rental
Housing, Ser 91, FHA
Callable 07/01/03 @ 102
5.450%, 07/01/06 2,000 2,070
Housing Finance Agency, Ser
1991-31A, AMT, RB (B)
6.800%, 10/01/17 600 633
Housing Finance Agency, Single
Family Mortgage, Ser 92-33, RB
5.700%, 04/01/98 195 196
Housing Finance Authority, Single
Family Mortgage, Ser N, RB
Callable 12/22/97 @ 102
7.500%, 10/01/99 200 205
Hummelstown Municipal Authority,
RB (A) Pre-Refunded @ 100
5.700%, 01/01/02 40 42
Jefferson County Municipal Authority,
RB, MBIA Insured (C)
7.000%, 12/01/02 25 27
Jersey Shore Area School District, GO,
MBIA Insured (C)
9.375%, 03/01/03 170 197
Lancaster Sewer Authority, RB (C)
6.000%, 04/01/12 100 105
Lehigh County Community College,
School Lease Revenue, RB
5.750%, 01/15/02 1,090 1,094
Lehigh County General Purpose
Authority, Muhlenberg Medical
Center Project, RB (C)
7.000%, 07/01/04 60 65
Lehigh County Industrial
Development Authority, Strawbridge
Project, RB (C)
7.200%, 12/15/01 1,015 1,101
Lower Pottsgrove Township Sewer
Authority, RB (C)
6.250%, 05/01/12 100 107
Luzerne County, Ser 91, GO,
FGIC Insured
Callable 09/13/01 @ 100
6.800%, 09/15/02 500 544
Lycoming County Hospital
Authority, Williamsport Hospital,
Connie Lee Insured, RB
5.250%, 11/15/06 1,300 1,331
McCandless Township Sanitation
Authority, Sewer Revenue, RB (C)
6.750%, 11/15/05 155 171
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
McCandless Township Sanitation
Authority, Sewer Project, RB (C)
6.500%, 09/01/05 $ 70 $ 75
Monroeville Hospital Authority,
East Suburban Health Center
Program, RB (A) Pre-Refunded @ 100
7.600%, 07/01/04 535 601
Monroeville Water Authority,
Water Authority, RB (C)
7.250%, 12/01/08 40 45
Montgomery County Higher
Education & Health Authority,
Abington Memorial Hospital,
Ser 91-A, RB, AMBAC Insured
6.200%, 06/01/00 800 839
Montgomery County Industrial
Development Authority, Health
Facilities, Ecri Project, RB
6.850%, 06/01/13 2,115 2,168
Montgomery County, GO (C)
9.000%, 08/15/04 295 337
Moon School District, Building
Revenue, RB, MBIA Insured (C)
6.375%, 11/15/98 15 15
Mount Lebanon Hospital
Authority, RB (C)
7.000%, 07/01/06 495 548
New Brighton Area School Authority,
RB, MBIA Insured (C)
5.850%, 11/15/02 25 26
Norristown Area School District,
Ser 91, Bank Qualified, GO (A)
Pre-Refunded @ 100
6.650%, 09/01/01 100 108
Northampton County Industrial
Development Authority, Moravian
Hall Square Project, Ser A, Asset
Guaranty Insured, RB
5.350%, 07/01/10 1,370 1,358
Northampton County Industrial
Development Authority, Moravian
Hall Square Project, Ser B, Asset
Guaranty Insured, RB
5.350%, 07/01/10 100 99
Northeast Allegheny County, RB (C)
6.000%, 05/01/02 50 52
Northeastern Hospital Authority,
Hospital Revenue, RB (C)
7.000%, 06/01/06 325 356
6.375%, 09/15/07 120 130
Pennsylvania Owen J. Roberts
School District, Ser-A, GO,
MBIA Insured
5.150%, 05/15/11 100 99
43
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
SEI TAX EXEMPT TRUST -- AUGUST 31, 1997
PENNSYLVANIA MUNICIPAL PORTFOLIO--CONTINUED
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Pennsylvania Intergovernmental
Coop Authority, Funding Program,
RB, FGIC
5.500%, 06/15/11 $ 740 $ 755
Pennsylvania State Higher Education
Authority, Drexel University
Project, MBIA (C)
10.250%, 05/01/03 40 48
Pennsylvania State Higher
Education Facilities Authority,
College and University, RB (C)
7.625%, 07/01/15 65 78
Pennsylvania State Higher Education
Authority, Thomas Jefferson
University, Ser-A, RB
6.875%, 07/01/99 420 440
Perkiomen Valley School District,
RB, MBIA (C)
6.500%, 12/01/07 80 91
Peters Township School District, GO,
MBIA (C)
0.000%, 11/15/07 100 60
Philadelphia Gas Works, Fourteenth
Series, RB, FSA
6.250%, 07/01/08 1,000 1,088
Philadelphia Hospital & Higher
Education Authority, Presbyterian
Medical Center, RB (C)
6.100%, 12/01/03 410 443
Philadelphia Hospital & Higher
Education Facilities, MR
Project, RB
5.500%, 08/01/01 1,175 1,196
Philadelphia Hospital, Graduate
Hospital Project, RB (C)
7.000%, 07/01/10 640 718
Philadelphia Industrial Development
Authority, Convention Project,
Ser 89, RB, AMBAC (C)
7.000%, 07/01/99 610 631
Philadelphia Industrial Development
Authority, National Board of
Medical Examiners Project, RB
Callable 05/01/02 @ 102
6.750%, 05/01/12 950 1,026
Philadelphia Industrial Development
Authority, Commercial Development
Red Lion Association, Optional
Put 12/01/01 @ 100, AMT, RB
5.000%, 12/01/16 1,200 1,200
Philadelphia Municipal Authority,
Justice Lease Revenue, Ser 92-B,
RB, FGIC
6.700%, 11/15/01 1,000 1,089
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Philadelphia Redevelopment
Authority, Home Improvement,
Ser 95A, RB, Subject to AMT
5.100%, 06/01/01 $ 140 $ 141
Philadelphia Redevelopment
Authority, Home Improvement
Loan, Ser 95-A, RB, Subject to AMT
5.100%, 12/01/01 110 111
5.250%, 06/01/02 200 202
5.250%, 12/01/02 220 223
5.400%, 06/01/03 160 162
5.400%, 12/01/03 185 188
5.550%, 06/01/04 65 66
5.650%, 12/01/05 70 71
6.100%, 12/01/10 1,000 1,024
Philadelphia Redevelopment
Authority, West Philadelphia
Project, FNMA, RB
6.750%, 05/15/04 695 736
Philadelphia School District,
Ser 91-B, GO, MBIA,
Partially Pre-Refunded
07/01/01 @ 101
7.000%, 07/01/05 250 275
Philadelphia United Hospitals
Project, RB (A) Pre-Refunded @ 100
10.875%, 07/01/05 890 1,154
Philadelphia Water & Sewer
Authority, Ser 10, RB (C)
7.350%, 09/01/04 5,480 6,247
Philadelphia Hospital, Thomas
Jefferson University, RB (C)
7.000%, 07/01/08 55 61
Pittsburgh Parking Authority,
Ser 92-A, RB, FGIC
Callable 12/01/02 @ 102
5.750%, 12/01/05 500 528
Pittsburgh Stadium Authority,
Lease Revenue, RB (C)
6.500%, 04/01/11 1,075 1,192
Pittsburgh Urban Redevelopment
Authority, Mortgage Revenue,
Ser 96 C, AMT, RB
5.700%, 10/01/05 240 247
Pittsburgh Urban Redevelopment
Authority, Mortgage Revenue,
Ser 96 D, RB
5.900%, 04/01/08 285 296
5.900%, 10/01/08 290 302
6.000%, 10/01/09 310 324
6.100%, 10/01/10 330 344
Pittsburgh Urban Redevelopment
Authority, Home Improvement
Loans, RB, FHA
Callable 02/01/98 @ 102
7.125%, 08/01/04 755 774
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
44
<PAGE>
================================================================================
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Pittsburgh Urban Redevelopment
Authority, Mortgage Revenue,
Ser A, RB, Subject to AMT
5.750%, 10/01/10 $ 55 $ 55
Pittsburgh Urban Redevelopment
Authority, Ser B, RB
Callable 04/01/01 @ 102
6.700%, 04/01/10 30 31
5.700%, 10/01/11 110 110
Pittsburgh Urban Redevelopment
Center, Triangle Tax Increment,
Ser A, RB (B)
5.750%, 12/01/06 1,980 2,054
Pittsburgh Urban Redevelopment
Center, Triangle Tax Increment,
Ser B, RB (B)
5.750%, 03/15/06 1,185 1,229
Pittsburgh, GO (C)
9.125%, 03/01/04 45 54
Pittsburgh Water and Sewer
Authority, RB, FGIC (B) (C)
7.625%, 09/01/04 100 115
Pocono Mountain School District,
GO, MBIA Insured (C)
9.200%, 03/01/06 80 105
Potter County Hospital Authority,
Charles Cole Memorial, Asset
Guaranty Insured, RB
4.750%, 08/01/99 260 260
4.850%, 08/01/00 270 271
5.100%, 08/01/02 290 293
5.200%, 08/01/03 245 248
5.300%, 08/01/04 325 330
5.400%, 08/01/05 320 326
5.500%, 08/01/06 160 164
Pottsville Hospital Authority,
Hospital & Warner Clinic, RB
6.400%, 07/01/03 930 973
Quakertown Hospital Authority,
Community Hospital, RB (C)
7.125%, 01/01/11 40 43
Robinson Township Water
Authority, RB (C)
5.625%, 05/01/06 37 39
Sayre Health Facilities Authority,
Guthrie Health Care, Ser 91-A,
RB, AMBAC
6.800%, 03/01/03 1,000 1,089
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Scranton Lackawanna Health &
Welfare Authority, Community
Medical Center, RB, FGIC
7.000%, 07/01/99 $ 250 $ 262
Scranton Lackawanna Health &
Welfare Authority, RB, BIGI
7.250%, 07/01/99 535 559
Scranton Lackawanna Health &
Welfare Authority, Moses Taylor
Hospital, RB (C)
6.625%, 07/01/09 520 573
Scranton Lackawanna Health &
Welfare Authority, Moses
Taylor Hospital, RB
5.550%, 07/01/04 955 962
5.650%, 07/01/05 1,000 1,008
6.000%, 07/01/09 940 954
Shaler School District, RB (C)
6.250%, 04/15/08 70 75
Shaler Township, GO (C)
6.400%, 08/01/01 25 26
South Side Area School District,
Ser 91, GO, AMBAC Insured (A)
Pre-Refunded @ 100
6.550%, 04/15/98 260 264
Southeastern Greene School
District, GO (C)
9.375%, 07/01/03 155 179
Steel Valley School District, GO (C)
6.250%, 11/01/06 85 91
Susquehanna Township Sewer
Authority, RB (C)
6.000%, 11/15/13 35 39
Swissvale Area School District, GO (C)
6.300%, 12/01/03 65 71
University Area Joint Authority,
Sewer Revenue, Ser 90, RB,
MBIA Insured (A)
Pre-Refunded @ 101
7.000%, 09/01/00 750 813
Upper Allegheny Joint Sanitation
Authority, RB, AMBAC Insured (C)
9.000%, 09/01/00 130 145
Upper Allen Township Sewer
Authority, RB (C)
5.750%, 04/01/13 90 93
Upper Gwynedd-Towamencin
Sewer Authority, RB, MBIA
Insured (C)
5.850%, 10/15/06 30 31
45
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
SEI TAX EXEMPT TRUST -- AUGUST 31, 1997
PENNSYLVANIA MUNICIPAL PORTFOLIO--CONCLUDED
- --------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Upper Perkiomen School
District, GO (C)
6.000%, 05/01/04 $ 35 $ 37
Upper St. Clair Township, School
Building Revenue Authority,
RB (A) Pre-Refunded @ 100
6.625%, 05/15/06 165 186
Washington County Hospital
Authority, Shadyside Project,
Ser 92, RB, AMBAC
Callable 12/15/02 @ 102
5.875%, 12/15/04 1,000 1,069
Westmoreland County Industrial
Development Authority, Henry
Clay Frick Hospital, RB
7.000%, 12/01/05 765 768
Westmoreland County Industrial
Development Authority, Hospital
Revenue, Ser 92-A, RB,
AMBAC Insured
5.900%, 07/01/05 595 634
Westmoreland County Industrial
Development Authority, Hospital
Revenue, Ser 99-A, RB,
AMBAC Insured
5.800%, 07/01/04 565 598
Westmoreland County Municipal
Authority, Special Obligation (C)
9.125%, 07/01/10 20 24
Wilkes-Barre General Municipal
Authority, Misericordia College
Revenue, RB
7.750%, 12/01/12 1,955 2,080
Windber Area Authority, Hospital
Revenue, RB, FHA Insured (B),
Pre-Refunded 08/01/05 @ 102
5.900%, 02/01/10 355 389
Wyoming County Hospital Authority,
Tyler Memorial, RB (C)
7.400%, 01/01/05 100 110
Wyoming Valley Sanitation
Authority, RB (C)
5.125%, 07/01/07 50 50
York County Hospital Authority,
Lutheran Social Services, RB
5.400%, 04/01/04 500 503
5.600%, 04/01/05 500 504
5.800%, 04/01/06 500 504
York Township Water & Sewer
Authority, RB (C)
5.900%, 08/01/13 40 43
--------
95,963
--------
Total Municipal Bonds
(Cost $94,659) 95,963
--------
- --------------------------------------------------------------------------------
FACE
AMOUNT (000)VALUE (000)
- --------------------------------------------------------------------------------
CASH EQUIVALENTS -- 1.2%
Provident Money Market $514 $ 514
Vanguard Pennsylvania
Tax Free Money Market Fund 696 696
--------
1,210
--------
Total Cash Equivalents
(Cost $1,210) 1,210
--------
Total Investments -- 99.1%
(Cost $94,659) 97,173
--------
OTHER ASSETS AND LIABILITIES, NET -- 0.9% 906
--------
NET ASSETS:
Portfolio Shares of Class A (unlimited
authorization -- no par value) based on
9,274,177 outstanding shares of
beneficial interest 95,226
Undistributed net
investment income 8
Accumulated net realized gain
on investments 330
Net unrealized appreciation
on investments 2,515
--------
TOTAL NET ASSETS -- 100.0% $98,079
========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE -- CLASS A $ 10.58
========
AMBAC AMERICAN MUNICIPAL BOND ASSURANCE COMPANY
AMT ALTERNATIVE MINIMUM TAX
BIGI BOND INVESTORS GUARANTY INSURANCE CORPORATION
CGIC CAPITAL GUARANTY INSURANCE CORPORATION
COP CERTIFICATE OF PARTICIPATION
FGIC FINANCIAL GUARANTY INSURANCE CORPORATION
FHA FEDERAL HOUSING AGENCY
FNMA FEDERAL NATIONAL MORTGAGE ASSOCIATION
FSA FINANCIAL SECURITY ASSURANCE
GO GENERAL OBLIGATION
MBIA MUNICIPAL BOND INSURANCE ASSOCIATION
RB REVENUE BOND
SER SERIES
(A) PRE-REFUNDED SECURITY--THE MATURITY DATE SHOWN 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.
46
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS (000)
====================================================================================================================================
SEI TAX EXEMPT TRUST -- FOR THE YEAR ENDED AUGUST 31, 1997
------------- ---------------- ---------------
CALIFORNIA
TAX INSTITUTIONAL
TAX FREE EXEMPT TAX FREE
PORTFOLIO PORTFOLIO PORTFOLIO
------------- ---------------- ----------------
INVESTMENT INCOME:
<S> <C> <C> <C>
Interest Income $14,658 $15,458 $36,706
------- ------- -------
EXPENSES:
Management Fees 1,420 1,006 3,552
Waiver of Management Fees -- (158) (1,080)
Investment Advisory Fees 153 170 384
Waiver of Investment Advisory Fees -- -- --
Custodian/Wire Agent Fees 43 47 109
Professional Fees 24 24 43
Pricing Fees 6 6 15
Registration Fees 41 72 110
Trustee Fees 11 12 31
Shareholder Servicing Fees (1) 987 3,042 2,498
Shareholder Servicing Fee Waivers (952) (1,097) (2,402)
Printing Fees 30 33 70
Insurance Fees 4 4 9
Other Expenses 9 9 16
------- ------- -------
Total Expenses 1,776 3,170 3,355
------- ------- -------
NET INVESTMENT INCOME 12,882 12,288 33,351
------- ------- -------
NET REALIZED AND UNREALIZED GAIN ON
INVESTMENTS
Net Realized Gain on Investments (3) -- (4)
Net Change in Unrealized Appreciation
of Investments -- -- --
------- ------- -------
Net Realized and Unrealized Gain (Loss)
on Investments (3) -- (4)
------- ------- -------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $12,879 $12,288 $33,347
======= ======= =======
<FN>
(1) INCLUDES CLASS SPECIFIC DISTRIBUTION EXPENSES.
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
</FN>
</TABLE>
47
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS (000) (concluded)
===========================================================================================================================
SEI TAX EXEMPT TRUST -- FOR THE YEAR ENDED AUGUST 31, 1997
------------- ---------------- ---------------
INTERMEDIATE-
PENNSYLVANIA TERM PENNSYLVANIA
TAX FREE MUNICIPAL MUNICIPAL
PORTFOLIO PORTFOLIO PORTFOLIO
------------- ---------------- ---------------
INVESTMENT INCOME:
<S> <C> <C> <C>
Interest Income $ 1,396 $ 9,666 $ 5,406
------- ------- -------
EXPENSES:
Management Fees 136 452 340
Waiver of Management Fees (43) (40) (140)
Investment Advisory Fees 15 622 195
Waiver of Investment Advisory Fees -- -- --
Custodian/Wire Agent Fees 5 17 14
Professional Fees 8 11 9
Pricing Fees -- 20 15
Registration Fees 6 27 10
Trustee Fees 1 4 3
Shareholder Servicing Fees (1) 95 471 243
Shareholder Servicing Fee Waivers (95) (471) (243)
Printing Fees 3 11 9
Insurance Fees -- 1 1
Other Expenses 2 4 2
------- ------- -------
Total Expenses 133 1,129 458
------- ------- -------
NET INVESTMENT INCOME 1,263 8,537 4,948
------- ------- -------
NET REALIZED AND UNREALIZED GAIN ON
INVESTMENTS
Net Realized Gain on Investments -- 267 378
Net Change in Unrealized Appreciation
of Investments -- 5,042 2,274
------- ------- -------
Net Realized and Unrealized Gain (Loss)
on Investments -- 5,309 2,652
------- ------- -------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $ 1,263 $13,846 $ 7,600
======= ======= =======
<FN>
(1) INCLUDES CLASS SPECIFIC DISTRIBUTION EXPENSES.
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS
</FN>
</TABLE>
48
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS (000)
====================================================================================================================================
SEI TAX EXEMPT TRUST -- FOR THE YEAR ENDED AUGUST 31, 1997
---------------------- -------------------- --------------------
INSTITUTIONAL
TAX CALIFORNIA TAX
FREE TAX EXEMPT FREE
PORTFOLIO PORTFOLIO PORTFOLIO
---------------------- -------------------- --------------------
1997 1996 1997 1996 1997 1996
---------- ---------- -------- -------- ---------- ----------
INVESTMENT ACTIVITIES:
<S> <C> <C> <C> <C> <C> <C>
Net Investment Income $ 12,882 $ 11,520 $ 12,288 $ 11,164 $ 33,351 $ 28,462
Net Realized Gain (Loss) on Investments (3) 18 -- (5) (4) 39
Net Change in Unrealized Appreciation
(Depreciation) of Investments -- -- -- -- -- --
---------- ---------- -------- -------- ---------- ----------
Net Increase in Net Assets Resulting
from Operations 12,879 11,538 12,288 11,159 33,347 28,501
---------- ---------- -------- -------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net Investment Income
Class A (12,895) (11,513) (1,562) (1,471) (32,434) (27,624)
Class B -- -- -- -- (575) (596)
Class C -- -- -- -- (227) (248)
Class D -- (4) -- -- -- --
Class G (1) -- -- (10,684) (9,727) -- --
Net Capital Gains
Class A -- -- -- -- (42) --
Class B -- -- -- -- (1) --
---------- ---------- -------- -------- ---------- ----------
Total Distributions (12,895) (11,517) (12,246) (11,198) (33,279) (28,468)
---------- ---------- -------- -------- ---------- ----------
TRANSACTIONS (2):
Class A:
Proceeds from Shares Issued 1,929,474 1,426,417 378,414 232,581 5,109,226 4,958,411
Reinvestment of Cash Distributions 1,321 357 63 55 547 776
Cost of Shares Redeemed (1,839,669) (1,464,041) (371,901) (218,860) (4,945,279)(4,912,703)
---------- ---------- -------- -------- ---------- ----------
Total Class A Share Transactions 91,126 (37,267) 6,576 13,776 164,494 46,484
---------- ---------- -------- -------- ---------- ----------
Class B:
Proceeds from Shares Issued -- -- -- -- 74,602 69,063
Reinvestment of Cash Distributions -- -- -- -- 73 58
Cost of Shares Redeemed -- -- -- -- (54,051) (70,053)
---------- ---------- -------- -------- ---------- ----------
Total Class B Share Transactions -- -- -- -- 20,624 (932)
---------- ---------- -------- -------- ---------- ----------
Class C:
Proceeds from Shares Issued -- -- -- -- 66,525 82,543
Reinvestment of Cash Distributions -- -- -- -- -- --
Cost of Shares Redeemed -- -- -- -- (76,352) (63,337)
---------- ---------- -------- -------- ---------- ----------
Total Class C Share Transactions -- -- -- -- (9,827) 19,206
---------- ---------- -------- -------- ---------- ----------
Class D (3):
Proceeds from Shares Issued 1 1,615 -- -- -- --
Reinvestment of Cash Distributions -- -- -- -- -- --
Cost of Shares Redeemed (6) (1,881) -- -- -- --
---------- ---------- -------- -------- ---------- ----------
Total Class D Share Transactions (5) (266) -- -- -- --
---------- ---------- -------- -------- ---------- ----------
Class G (1):
Proceeds from Shares Issued -- -- 817,088 744,985 -- --
Reinvestment of Cash Distributions -- -- 9,680 8,087 -- --
Cost of Shares Redeemed -- -- (765,343) (730,352) -- --
---------- ---------- -------- -------- ---------- ----------
Total Class G Share Transactions -- -- 61,425 22,720 -- --
---------- ---------- -------- -------- ---------- ----------
Increase (Decrease) in Net Assets
from Share Transactions 91,121 (37,533) 68,001 36,496 175,291 64,758
---------- ---------- -------- -------- ---------- ----------
Total Increase (Decrease) in Net Assets 91,105 (37,512) 68,043 36,457 175,359 64,791
---------- ---------- -------- -------- ---------- ----------
NET ASSETS:
Beginning of period 339,912 377,424 395,413 358,956 868,752 803,961
---------- ---------- -------- -------- ---------- ----------
End of period $ 431,017 $ 339,912 $463,456 $395,413 $1,044,111 $ 868,752
========== ========== ======== ======== ========== ==========
<FN>
1. ON MAY 1, 1996, THE CALIFORNIA TAX EXEMPT PORTFOLIO CLASS C SHARES WERE REDESIGNATED CLASS G SHARES.
2. FOR CAPITAL SHARE TRANSACTIONS SEE FOOTNOTE 9 IN THE NOTES TO THE FINANCIAL STATEMENTS.
3. ON JUNE 30, 1996, INTERMEDIATE-TERM MUNICIPAL PORTFOLIO CLASS D CLOSED.
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
</FN>
</TABLE>
49
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS (000) (concluded)
====================================================================================================================================
SEI TAX EXEMPT TRUST -- FOR THE YEAR ENDED AUGUST 31, 1997
---------------------- -------------------- --------------------
PENNSYLVANIA INTERMEDIATE-
TAX TERM PENNSYLVANIA
FREE MUNICIPAL MUNICIPAL
PORTFOLIO PORTFOLIO PORTFOLIO
---------------------- -------------------- --------------------
1997 1996 1997 1996 1997 1996
---------- ---------- -------- -------- ---------- ----------
INVESTMENT ACTIVITIES:
<S> <C> <C> <C> <C> <C> <C>
Net Investment Income $ 1,263 $ 1,014 $ 8,537 $ 4,964 $ 4,948 $ 5,237
Net Realized Gain (Loss) on Investments -- (14) 267 1,014 378 2,349
Net Change in Unrealized Appreciation
(Depreciation) of Investments -- -- 5,042 (1,920) 2,274 (3,618)
--------- --------- -------- -------- --------- --------
Net Increase in Net Assets Resulting
from Operations 1,263 1,000 13,846 4,058 7,600 3,968
--------- --------- -------- -------- --------- --------
DISTRIBUTIONS TO SHAREHOLDERS:
Net Investment Income
Class A (1,267) (1,013) (8,535) (5,335) (4,941) (5,686)
Class B -- -- -- -- -- --
Class C -- -- -- -- -- --
Class D -- -- -- (17) -- --
Class G (1) -- -- -- -- -- --
Net Capital Gains
Class A -- -- -- -- (1,769) --
Class B -- -- -- -- -- --
--------- --------- -------- -------- --------- --------
Total Distributions (1,267) (1,013) (8,535) (5,352) (6,710) (5,686)
--------- --------- -------- -------- --------- --------
TRANSACTIONS (2):
Class A:
Proceeds from Shares Issued 244,606 209,781 163,672 73,397 21,575 14,469
Reinvestment of Cash Distributions 42 60 4,353 1,360 569 171
Cost of Shares Redeemed (238,052) (192,915) (48,661) (34,549) (22,183) (19,788)
--------- --------- -------- -------- --------- --------
Total Class A Share Transactions 6,596 16,926 119,364 40,208 (39) (5,148)
--------- --------- -------- -------- --------- --------
Class B:
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 -- --
Reinvestment of Cash Distributions -- -- -- 11 -- --
Cost of Shares Redeemed -- -- -- (586) -- --
--------- --------- -------- -------- --------- --------
Total Class D Share Transactions -- -- -- (574) -- --
--------- --------- -------- -------- --------- --------
Class G (1):
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 6,596 16,926 119,364 39,634 (39) (5,148)
--------- --------- -------- -------- --------- --------
Total Increase (Decrease) in Net Assets 6,592 16,913 124,675 38,340 851 (6,866)
--------- --------- -------- -------- --------- --------
NET ASSETS:
Beginning of period 42,971 26,058 134,563 96,223 97,228 104,094
--------- --------- -------- -------- --------- --------
End of period $ 49,563 $ 42,971 $259,238 $134,563 $ 98,079 $ 97,228
========= ========= ======== ======== ========= ========
<FN>
1. ON MAY 1, 1996, THE CALIFORNIA TAX EXEMPT PORTFOLIO CLASS C SHARES WERE REDESIGNATED CLASS G SHARES.
2. FOR CAPITAL SHARE TRANSACTIONS SEE FOOTNOTE 9 IN THE NOTES TO THE FINANCIAL STATEMENTS.
3. ON JUNE 30, 1996, INTERMEDIATE-TERM MUNICIPAL PORTFOLIO CLASS D CLOSED.
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
</FN>
</TABLE>
50
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
====================================================================================================================================
SEI TAX EXEMPT TRUST
FOR A SHARE OUTSTANDING THROUGHOUT THE YEAR
NET REALIZED RATIO
INVESTMENT AND OF EXPENSES
NET ACTIVITIES DISTRIBUTIONS UNREALIZED TO AVERAGE
ASSET --------- ------------------------------ GAIN (LOSS)ON NET NET RATIO OF NET ASSETS
VALUE, NET NET NET INVESTMENTS ASSET VALUE, ASSETS, END EXPENSES EXCLUDING
BEGINNING INVESTMENT INVESTMENT REALIZED TOTAL AND CAPITAL END TOTAL OF PERIOD TO AVERAGE FEE
OF PERIOD INCOME INCOME GAIN DISTRIBUTIONS TRANSACTIONS OF PERIOD RETURN (000) NET ASSETS WAIVERS
- ----------------------------------------------------------------------------------------------------------------------------------
- ------------------
TAX FREE PORTFOLIO
- ------------------
CLASS A
FOR THE YEARS ENDED AUGUST 31,:
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1997 $1.00 $0.033 $(0.033) -- $(0.033) -- $1.00 3.31% $431,016 0.45% 0.69%
1996 1.00 0.033 (0.033) -- (0.033) -- 1.00 3.35% 339,906 0.45% 0.50%
1995 1.00 0.034 (0.034) -- (0.034) -- 1.00 3.48% 377,152 0.45% 0.51%
1994 1.00 0.022 (0.022) -- (0.022) -- 1.00 2.20% 358,299 0.45% 0.53%
1993 1.00 0.022 (0.023) -- (0.023) -- 1.00 2.29% 414,975 0.45% 0.53%
1992 1.00 0.033 (0.033) -- (0.033) -- 1.00 3.32% 293,982 0.45% 0.55%
1991 1.00 0.047 (0.047) -- (0.047) -- 1.00 4.81% 343,300 0.37% 0.55%
1990 (1) 1.00 0.032 (0.032) -- (0.032) -- 1.00 3.20%+ 356,814 0.45%* 0.56%*
FOR THE YEARS ENDED JANUARY 31,:
1990 $1.00 $0.059 $(0.059) -- $(0.059) -- $1.00 5.97% $464,389 0.54% 0.59%
1989 1.00 0.049 (0.049) -- (0.049) -- 1.00 4.98% 790,629 0.46% 0.58%
1988 1.00 0.042 (0.042) -- (0.042) -- 1.00 4.34% 938,484 0.53% 0.54%
1987 1.00 0.041 (0.041) -- (0.041) -- 1.00 4.31% 1,143,083 0.56% 0.56%
1986 1.00 0.051 (0.051) -- (0.051) -- 1.00 5.21% 503,891 0.57% 0.57%
1985 1.00 0.058 (0.058) -- (0.058) -- 1.00 5.86% 263,325 0.58% 0.60%
CLASS D
FOR THE YEARS ENDED AUGUST 31,:
1997 $1.00 $0.028 $(0.028) -- $(0.028) -- $1.00 2.86%$ 1 0.74% 0.74%
1996 1.00 0.030 (0.030) -- (0.030) -- 1.00 2.99% 6 0.80% 0.88%
1995 (2) 1.00 0.026 (0.026) -- (0.026) -- 1.00 2.68%+ 272 0.80%* 0.86%*
- -------------------------------
CALIFORNIA TAX EXEMPT PORTFOLIO
- -------------------------------
CLASS A
FOR THE YEARS ENDED AUGUST 31,:
1997 $1.00 $0.033 $(0.033) -- $(0.033) -- $1.00 3.30% $51,314 0.28% 0.57%
1996 1.00 0.034 (0.034) -- (0.034) -- 1.00 3.41% 44,729 0.28% 0.36%
1995 1.00 0.033 (0.033) -- (0.033) -- 1.00 3.49% 30,921 0.28% 0.42%
1994 1.00 0.023 (0.023) -- (0.023) -- 1.00 2.32% 32,015 0.27% 0.38%
1993 1.00 0.024 (0.024) -- (0.024) -- 1.00 2.41% 540,285 0.28% 0.37%
1992 1.00 0.034 (0.034) -- (0.034) -- 1.00 3.44% 445,936 0.28% 0.38%
1991 1.00 0.047 (0.047) -- (0.047) -- 1.00 4.92% 376,653 0.28% 0.40%
1990 (3) 1.00 0.016 (0.016) -- (0.016) -- 1.00 1.81%+ 275,095 0.28% 0.51%
CLASS G***
FOR THE YEARS ENDED AUGUST 31,:
1997 $1.00 $0.028 $(0.028) -- $(0.028) -- $1.00 2.79% $412,142 0.78% 1.06%
1996 1.00 0.028 (0.028) -- (0.028) -- 1.00 2.90% 350,684 0.78% 0.86%
1995 1.00 0.029 (0.029) -- (0.029) -- 1.00 2.97% 328,035 0.78% 0.93%
1994 (4) 1.00 0.006 (0.006) -- (0.006) -- 1.00 2.14%* 318,122 0.67%* 0.87%*
</TABLE>
<TABLE>
<CAPTION>
RATIO OF
NET
INVESTMENT
RATIO OF INCOME TO
NET AVERAGE
INVESTMENT NET ASSETS
INCOME TO EXCLUDING PORTFOLIO
AVERAGE FEE TURNOVER
NET ASSETS WAIVERS RATE
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------
TAX FREE PORTFOLIO
- ------------------
CLASS A
FOR THE YEARS ENDED AUGUST 31,:
<S> <C> <C> <C>
1997 3.26% 3.02% --
1996 3.30% 3.25% --
1995 3.43% 3.37% --
1994 2.17% 2.09% --
1993 2.24% 2.16% --
1992 3.30% 3.20% --
1991 4.70% 4.52% --
1990 (1) 5.46%* 5.35%* --
FOR THE YEARS ENDED JANUARY 31,:
1990 5.90% 5.85% --
1989 4.90% 4.78% --
1988 4.20% 4.19% --
1987 4.10% 4.10% --
1986 5.10% 5.10% --
1985 5.80% 5.78% --
CLASS D
FOR THE YEARS ENDED AUGUST 31,:
1997 3.04% 3.04% --
1996 3.18% 3.10% --
1995 (2) 3.13%* 3.07%* --
- -------------------------------
CALIFORNIA TAX EXEMPT PORTFOLIO
- -------------------------------
CLASS A
FOR THE YEARS ENDED AUGUST 31,:
1997 3.26% 2.97% --
1996 3.33% 3.25% --
1995 3.43% 3.29% --
1994 2.28% 2.17% --
1993 2.37% 2.28% --
1992 3.34% 3.24% --
1991 4.74% 4.62% --
1990 (3) 5.27% 5.04% --
CLASS G***
FOR THE YEARS ENDED AUGUST 31,:
1997 2.75% 2.47% --
1996 2.84% 2.76% --
1995 2.93% 2.78% --
1994 (4) 2.06%* 1.86%* --
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
</TABLE>
51
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS (concluded)
====================================================================================================================================
SEI TAX EXEMPT TRUST
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD OR YEAR
NET REALIZED RATIO
INVESTMENT AND OF EXPENSES
NET ACTIVITIES DISTRIBUTIONS UNREALIZED TO AVERAGE
ASSET --------- ------------------------------ GAIN (LOSS)ON NET NET RATIO OF NET ASSETS
VALUE, NET NET NET INVESTMENTS ASSET VALUE, ASSETS, END EXPENSES EXCLUDING
BEGINNING INVESTMENT INVESTMENT REALIZED TOTAL AND CAPITAL END TOTAL OF PERIOD TO AVERAGE FEE
OF PERIOD INCOME INCOME GAIN DISTRIBUTIONS TRANSACTIONS OF PERIOD RETURN (000) NET ASSETS WAIVERS
- ------------------------------------------------------------------------------------------------------------------------------------
- --------------------------------
INSTITUTIONAL TAX FREE PORTFOLIO
- --------------------------------
CLASS A
FOR THE YEARS ENDED AUGUST 31,:
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1997 $1.00 $0.034 $(0.034) -- $(0.034) -- $1.00 3.44% $999,946 0.33% 0.69%
1996 1.00 0.035 (0.035) -- (0.035) -- 1.00 3.52% 835,388 0.33% 0.49%
1995 1.00 0.036 (0.036) -- (0.036) -- 1.00 3.70% 788,877 0.33% 0.52%
1994 1.00 0.025 (0.025) -- (0.025) -- 1.00 2.51% 835,516 0.33% 0.50%
1993 1.00 0.026 (0.026) -- (0.026) -- 1.00 2.59% 763,040 0.33% 0.49%
1992 1.00 0.036 (0.036) -- (0.036) -- 1.00 3.66% 623,689 0.33% 0.51%
1991 1.00 0.049 (0.049) -- (0.049) -- 1.00 5.20% 448,390 0.33% 0.53%
1990 (1) 1.00 0.033 (0.033) -- (0.033) -- 1.00 3.32%+ 226,658 0.33%* 0.56%*
FOR THE YEARS ENDED JANUARY 31,:
1990 $1.00 $0.059 $(0.059) -- $(0.059) -- $1.00 6.11% $177,342 0.52% 0.60%
1989 1.00 0.048 (0.048) -- (0.048) -- 1.00 5.05% 99,774 0.55% 0.57%
1988 1.00 0.042 (0.042) -- (0.042) -- 1.00 4.28% 223,653 0.55% 0.56%
1987 1.00 0.041 (0.041) -- (0.041) -- 1.00 4.23% 255,147 0.55% 0.56%
1986 1.00 0.050 (0.050) -- (0.050) -- 1.00 5.11% 198,761 0.57% 0.57%
1985 1.00 0.056 (0.056) -- (0.056) -- 1.00 5.71% 162,676 0.57% 0.59%
CLASS B
FOR THE YEARS ENDED AUGUST 31,:
1997 $1.00 $0.031 $(0.031) -- $(0.031) -- $1.00 3.13% $34,783 0.63% 0.73%
1996 1.00 0.032 (0.032) -- (0.032) -- 1.00 3.21% 14,156 0.63% 0.80%
1995 1.00 0.033 (0.033) -- (0.033) -- 1.00 3.39% 15,084 0.63% 0.82%
1994 1.00 0.022 (0.022) -- (0.022) -- 1.00 2.21% 21,725 0.63% 0.81%
1993 1.00 0.023 (0.023) -- (0.023) -- 1.00 2.29% 3,040 0.63% 0.79%
1992 1.00 0.033 (0.033) -- (0.033) -- 1.00 3.35% 686 0.63% 0.81%
1991 (5) 1.00 0.038 (0.038) -- (0.038) -- 1.00 3.89%+ 1,515 0.63%* 0.84%*
CLASS C
FOR THE YEAR ENDED AUGUST 31,:
1997 $1.00 $0.029 $(0.029) -- $(0.029) -- $1.00 2.93%$ 9,382 0.83% 0.95%
1996 (6) 1.00 0.029 (0.029) -- (0.029) -- 1.00 2.92%+ 19,208 0.83%* 0.96%*
- -------------------------------
PENNSYLVANIA TAX FREE PORTFOLIO
- -------------------------------
CLASS A
FOR THE YEARS ENDED AUGUST 31,:
1997 $1.00 $0.033 $(0.033) -- $(0.033) -- $1.00 3.39% $ 49,563 0.35% 0.71%
1996 1.00 0.034 (0.034) -- (0.034) -- 1.00 3.40% 42,971 0.35% 0.49%
1995 1.00 0.035 (0.035) -- (0.035) -- 1.00 3.60% 26,058 0.35% 0.51%
1994 (7) 1.00 0.014 (0.014) -- (0.014) -- 1.00 2.37%* 18,712 0.35%* 0.65%*
- -------------------------------------
INTERMEDIATE-TERM MUNICIPAL PORTFOLIO
- -------------------------------------
CLASS A
FOR THE YEARS ENDED AUGUST 31,:
1997 $10.45 $0.48 $(0.48) -- $(0.48) $0.32 $10.77 7.93% $259,238 0.60% 0.88%
1996 10.59 0.49 (0.53) -- (0.53) (0.10) 10.45 3.76% 134,563 0.59% 0.66%
1995 10.36 0.52 (0.52) -- (0.52) 0.23 10.59 7.53% 95,675 0.55% 0.72%
1994 10.84 0.49 (0.49) $(0.06) (0.55) (0.42) 10.36 0.65% 127,509 0.53% 0.71%
1993 10.49 0.49 (0.50) (0.02) (0.52) 0.38 10.84 8.62% 122,649 0.55% 0.69%
1992 10.20 0.56 (0.54) (0.01) (0.55) 0.28 10.49 8.56% 63,210 0.55% 0.71%
1991 9.98 0.61 (0.63) -- (0.63) 0.24 10.20 8.82% 36,699 0.55% 0.78%
1990 (1) 10.01 0.38 (0.37) -- (0.37) (0.04) 9.98 3.44%+ 12,781 0.55%* 0.90%*
FOR THE YEAR ENDED JANUARY 31,:
1990 (8) $10.00 $0.21 $(0.16) $(0.002) $(0.16) $(0.04) $10.01 1.72%+ $ 9,106 0.56%* 1.36%*
</TABLE>
RATIO OF
NET
INVESTMENT
RATIO OF INCOME TO
NET AVERAGE
INVESTMENT NET ASSETS
INCOME TO EXCLUDING PORTFOLIO
AVERAGE FEE TURNOVER
NET ASSETS WAIVERS RATE
- -------------------------------------------------------------------------------
- --------------------------------
INSTITUTIONAL TAX FREE PORTFOLIO
- --------------------------------
CLASS A
FOR THE YEARS ENDED AUGUST 31,:
1997 3.39% 3.03% --
1996 3.46% 3.30% --
1995 3.64% 3.45% --
1994 2.48% 2.31% --
1993 2.55% 2.39% --
1992 3.54% 3.36% --
1991 4.91% 4.71% --
1990 (1) 5.64%* 5.41%* --
FOR THE YEARS ENDED JANUARY 31,:
1990 5.90% 5.82% --
1989 4.80% 4.78% --
1988 4.20% 4.19% --
1987 4.10% 4.09% --
1986 5.00% 5.00% --
1985 5.60% 5.58% --
CLASS B
FOR THE YEARS ENDED AUGUST 31,:
1997 3.10% 3.00% --
1996 3.16% 2.99% --
1995 3.32% 3.13% --
1994 2.31% 2.13% --
1993 2.22% 2.06% --
1992 3.22% 3.04% --
1991 (5) 4.34%* 4.13%* --
CLASS C
FOR THE YEAR ENDED AUGUST 31,:
1997 2.85% 2.73% --
1996 (6) 2.89%* 2.76%* --
- -------------------------------
PENNSYLVANIA TAX FREE PORTFOLIO
- -------------------------------
CLASS A
FOR THE YEARS ENDED AUGUST 31,:
1997 3.33% 2.97% --
1996 3.33% 3.19% --
1995 3.54% 3.38% --
1994 (7) 2.37%* 2.07%* --
- -------------------------------------
INTERMEDIATE-TERM MUNICIPAL PORTFOLIO
- -------------------------------------
CLASS A
FOR THE YEARS ENDED AUGUST 31,:
1997 4.53% 4.25% 16.02%
1996 4.66% 4.59% 40.66%
1995 4.96% 4.79% 36.05%
1994 4.65% 4.47% 58.39%
1993 4.79% 4.65% 63.04%
1992 5.56% 5.40% 61.56%
1991 6.18% 5.95% 111.82%
1990 (1) 6.63%* 6.28%* 63.45%
FOR THE YEAR ENDED JANUARY 31,:
1990 (8) 5.80%* 5.00%* 352.00%
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
52
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================================
NET REALIZED RATIO
INVESTMENT AND OF EXPENSES
NET ACTIVITIES DISTRIBUTIONS UNREALIZED TO AVERAGE
ASSET --------- ------------------------------ GAIN (LOSS)ON NET NET RATIO OF NET ASSETS
VALUE, NET NET NET INVESTMENTS ASSET VALUE, ASSETS, END EXPENSES EXCLUDING
BEGINNING INVESTMENT INVESTMENT REALIZED TOTAL AND CAPITAL END TOTAL OF PERIOD TO AVERAGE FEE
OF PERIOD INCOME INCOME GAIN DISTRIBUTIONS TRANSACTIONS OF PERIOD RETURN (000) NET ASSETS WAIVERS
- ------------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------
INTERMEDIATE-TERM MUNICIPAL PORTFOLIO (CONTINUED)
- -------------------------------------------------
CLASS D
FOR THE YEARS ENDED AUGUST 31,:
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996 (11) $10.59 $0.38 $(0.41) -- $(0.41) $(0.10) $10.46 3.22%* -- 0.98%* 1.08%*
1995 10.36 0.48 (0.48) -- (0.48) 0.23 10.59 7.11% $ 548 0.95% 1.12%
1994 (9)** 10.90 0.45 (0.42) $(0.06) (0.48) (0.51) 10.36 (0.93%)* 1,105 0.93%* 1.07%*
- --------------------------------
PENNSYLVANIA MUNICIPAL PORTFOLIO
- --------------------------------
CLASS A
FOR THE YEARS ENDED AUGUST 31,:
1997 $10.48 $0.53 $(0.53) $(0.19) $(0.72) $ 0.29 $10.58 8.08% $ 98,079 0.48% 0.86%
1996 10.66 0.55 (0.59) -- (0.59) (0.14) 10.48 3.96% 97,228 0.48% 0.65%
1995 10.52 0.55 (0.55) -- (0.55) 0.14 10.66 6.81% 104,094 0.48% 0.72%
1994 10.94 0.53 (0.53) -- (0.53) (0.42) 10.52 1.14% 125,081 0.47% 0.71%
1993 10.59 0.55 (0.55) (0.01) (0.56) 0.36 10.94 8.91% 153,808 0.48% 0.70%
1992 10.29 0.57 (0.57) (0.01) (0.58) 0.31 10.59 8.89% 114,461 0.48% 0.72%
1991 9.95 0.60 (0.60) (0.003) (0.60) 0.34 10.29 9.80% 83,054 0.50% 0.73%
1990 (1) 9.98 0.34 (0.34) -- (0.34) (0.03) 9.95 3.12%+ 64,531 0.60%* 0.80%*
FOR THE YEARS ENDED JANUARY 31,:
1990 (10) $10.00 $0.28 $(0.23) $(0.001) $(0.23) $(0.07) $ 9.98 2.11%+ $ 53,042 0.60%* 0.86%*
</TABLE>
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
<TABLE>
<CAPTION>
====================================================================================================================================
RATIO OF
NET
INVESTMENT
RATIO OF INCOME TO
NET AVERAGE
INVESTMENT NET ASSETS
INCOME TO EXCLUDING PORTFOLIO
AVERAGE FEE TURNOVER
NET ASSETS WAIVERS RATE
- ------------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------
INTERMEDIATE-TERM MUNICIPAL PORTFOLIO (CONTINUED)
- -------------------------------------------------
CLASS D
FOR THE YEARS ENDED AUGUST 31,:
<S> <C> <C> <C>
1996 4.26%* 4.16%* 40.66%
1995 4.57% 4.40% 36.05%
1994 4.34%* 4.20%* 58.39%
- --------------------------------
PENNSYLVANIA MUNICIPAL PORTFOLIO
- --------------------------------
CLASS A
FOR THE YEARS ENDED AUGUST 31,:
1997 5.08% 4.70% 34.48%
1996 5.15% 4.98% 65.75%
1995 5.21% 4.97% 22.62%
1994 4.90% 4.66% 25.13%
1993 5.15% 4.93% 15.26%
1992 5.52% 5.28% 10.54%
1991 5.98% 5.75% 19.17%
1990 (1) 5.88%* 5.68%* 20.35%
FOR THE YEARS ENDED JANUARY 31,:
1990 (10)6.05%* 5.79%* 10.00%
<FN>
* ANNUALIZED.
** TOTAL RETURN DOES NOT REFLECT THE SALES CHARGE ON THE CLASS D SHARES.
*** 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 G COMMENCED OPERATIONS ON MAY 11, 1994.
5. THE INSTITUTIONAL TAX FREE PORTFOLIO--CLASS B COMMENCED OPERATIONS ON OCTOBER 15, 1990.
6. THE INSTITUTIONAL TAX FREE PORTFOLIO--CLASS C COMMENCED OPERATIONS ON SEPTEMBER 11, 1995.
7. THE PENNSYLVANIA TAX FREE PORTFOLIO--CLASS A COMMENCED OPERATIONS ON JANUARY 21, 1994.
8. THE INTERMEDIATE-TERM MUNICIPAL PORTFOLIO--CLASS A COMMENCED OPERATIONS ON SEPTEMBER 5, 1989.
9. THE INTERMEDIATE-TERM MUNICIPAL PORTFOLIO--CLASS D COMMENCED OPERATIONS ON SEPTEMBER 28, 1993.
10. THE PENNSYLVANIA MUNICIPAL PORTFOLIO--CLASS A COMMENCED OPERATIONS ON AUGUST 14, 1989.
11. 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.
53
<PAGE>
NOTES TO FINANCIAL STATEMENTS
================================================================================
SEI TAX EXEMPT TRUST -- AUGUST 31, 1997
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 eight 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 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, 1997. 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.
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.
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 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. Any net realized capital gain on sales of
securities after capital loss carryovers is distributed to the shareholders of
the Portfolios at least annually.
54
<PAGE>
================================================================================
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% of the average
daily net asset value of the Pennsylvania Municipal 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 Investments
Distribution Co. ("the Distributor"), 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 certain distribution-related expenses incurred by the Distributor.
Effective May 1, 1996, SEI Investments Distribution Co. 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 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 plan 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 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
55
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
================================================================================
SEI TAX EXEMPT TRUST -- AUGUST 31, 1997
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.
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, 1997, were as
follows:
INTERMEDIATE-
TERM PENNSYLVANIA
MUNICIPAL MUNICIPAL
PORTFOLIO PORTFOLIO
(000) (000)
---------- ----------
Purchases... $132,944 $31,659
Sales....... 28,591 34,217
Subsequent to October 31, 1996, 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, 1997, as follows:
CAPITAL
LOSS
CARRYOVER
AUGUST 31, EXPIRES EXPIRES EXPIRES EXPIRES
PORTFOLIO 1997 2002 2003 2004 2005
- -------- ---------- ---------- ---------- ------------ ------------
Tax Free
Portfolio $20,390 $17,408 $ 93 $ -- $ 2,889
California
Tax Exempt
Portfolio 5,381 231 -- 5,150 --
Intermediate-
Term
Municipal
Portfolio 897,108 -- 661,051 236,057 --
Pennsylvania
Tax Free
Portfolio 14,343 -- 341 374 13,628
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, 1997, for
each Portfolio are as follows:
INTERMEDIATE-
TERM PENNSYLVANIA
MUNICIPAL MUNICIPAL
PORTFOLIO PORTFOLIO
(000) (000)
-------- --------
Aggregate gross unrealized
appreciation $5,360 $2,570
Aggregate gross unrealized
depreciation (487) (55)
-------- --------
Net unrealized appreciation $4,873 $2,515
======== ========
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 110% 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.
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).
56
<PAGE>
================================================================================
8. REORGANIZATION
On September 16, 1996 the Board of Trustees of the SEI Trust approved the
reorganization of the SEI Kansas Tax Free Income Portfolio (SEI Kansas
Portfolio). All of the assets and stated liabilities of the SEI Kansas Portfolio
transferred to the INTRUST Kansas Tax Exempt Bond Fund in a tax free
reorganization on May 16, 1997. The expenses incurred in connection with
entering into and carrying out the provisions of the Reorganization Agreement
were paid by INTRUST.
57
<PAGE>
<TABLE>
<CAPTION>
NOTES TO FINANCIAL STATEMENTS (concluded)
================================================================================
SEI TAX EXEMPT TRUST -- AUGUST 31, 1997
9. SHARE TRANSACTIONS (000):
------------------------- ------------------------- -------------------------
INSTITUTIONAL
TAX CALIFORNIA TAX
FREE TAX EXEMPT FREE
PORTFOLIO PORTFOLIO PORTFOLIO
------------------------- ------------------------- -------------------------
1997 1996 1997 1996 1997 1996
------------ ------------ ------------ ------------ ------------ ------------
SHARES ISSUED AND REDEEMED:
Class A:
<S> <C> <C> <C> <C> <C> <C>
Shares Issued 1,929,474 1,426,417 378,414 232,581 5,109,226 4,958,411
Shares Issued in Lieu of Cash Distributions 1,321 357 63 55 547 776
Shares Redeemed (1,839,669) (1,464,041) (371,901) (218,860) (4,945,279) (4,912,703)
------------ ------------ ------------ ------------ ------------ ------------
Total Class A Transactions 91,126 (37,267) 6,576 13,776 164,494 46,484
------------ ------------ ------------ ------------ ------------ ------------
Class B:
Shares Issued -- -- -- -- 74,602 69,063
Shares Issued in Lieu of Cash Distributions -- -- -- -- 73 58
Shares Redeemed -- -- -- -- (54,051) (70,053)
------------ ------------ ------------ ------------ ------------ ------------
Total Class B Transactions -- -- -- -- 20,624 (932
------------ ------------ ------------ ------------ ------------ ------------
Class C:
Shares Issued -- -- -- -- 66,525 82,543
Shares Issued in Lieu of Cash Distributions -- -- -- -- -- --
Shares Redeemed -- -- -- -- (76,352) (63,337)
------------ ------------ ------------ ------------ ------------ ------------
Total Class C Transactions -- -- -- -- (9,827) 19,206
------------ ------------ ------------ ------------ ------------ ------------
Class D (1):
Shares Issued 1 1,615 -- -- -- --
Shares Issued in Lieu of Cash Distributions -- -- -- -- -- --
Shares Redeemed (6) (1,881) -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Total Class D Transactions (5) (266) -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Class G (2):
Shares Issued -- -- 817,088 744,985 -- --
Shares Issued in Lieu of Cash Distributions -- -- 9,680 8,087 -- --
Shares Redeemed -- -- (765,343) (730,352) -- --
------------ ------------ ------------ ------------ ------------ ------------
Total Class G Transactions -- -- 61,425 22,720 -- --
------------ ------------ ------------ ------------ ------------ ------------
Increase (Decrease) in Capital Shares 91,121 (37,533) 68,001 36,496 175,291 64,758
============ ============ ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
------------------------- ------------------------- -------------------------
PENNSYLVANIA INTERMEDIATE-
TAX TERM PENNSYLVANIA
FREE MUNICIPAL MUNICIPAL
PORTFOLIO PORTFOLIO PORTFOLIO
------------------------- ------------------------- -------------------------
1997 1996 1997 1996 1997 1996
------------ ------------ ------------ ------------ ------------ ------------
SHARES ISSUED AND REDEEMED:
Class A:
<S> <C> <C> <C> <C> <C> <C>
Shares Issued 244,606 209,781 15,354 6,976 2,057 1,365
Shares Issued in Lieu of Cash Distributions 42 60 408 129 54 16
Shares Redeemed (238,052) (192,915) (4,565) (3,269) (2,112) (1,869)
------------ ------------ ------------ ------------ ------------ ------------
Total Class A Transactions 6,596 16,926 11,197 3,836 (1) (488)
------------ ------------ ------------ ------------ ------------ ------------
Class B:
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 (1):
Shares Issued -- -- -- -- -- --
Shares Issued in Lieu of Cash Distributions -- -- -- 1 -- --
Shares Redeemed -- -- -- (53) -- --
------------ ------------ ------------ ------------ ------------ ------------
Total Class D Transactions -- -- -- (52) -- --
------------ ------------ ------------ ------------ ------------ ------------
Class G (2):
Shares Issued -- -- -- -- -- --
Shares Issued in Lieu of Cash Distributions -- -- -- -- -- --
Shares Redeemed -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Total Class G Transactions -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Increase (Decrease) in Capital Shares 6,596 16,926 11,197 3,784 (1) (488)
============ ============ ============ ============ ============ ============
<FN>
(1) ON JUNE 30, 1996, INTERMEDIATE-TERM MUNICIPAL PORTFOLIO CLASS D CLOSED.
(2) ON MAY 1, 1996, 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.
58 & 59
<PAGE>
<TABLE>
NOTICE TO SHAREHOLDERS (Unaudited)
====================================================================================================================================
SEI TAX EXEMPT TRUST -- AUGUST 31, 1997
For shareholders that do not have an August 31, 1997 taxable year end, this
notice is for informational purposes only. For shareholders with an August 31,
1997 taxable year end, please consult your tax advisor as to the pertinence of
this notice.
For the fiscal year ended August 31, 1997 each fund is designating the following
items with regard to distributions paid during the year as follows:
<CAPTION>
(A) (B) (C)
LONG TERM ORDINARY (A+B)
CAPITAL GAINS INCOME TOTAL
DISTRIBUTIONS DISTRIBUTIONS DISTRIBUTIONS
PORTFOLIO (TAX BASIS) (TAX BASIS) (TAX BASIS)
- ---------- ---------------- ---------------- ----------------
<S> <C> <C> <C>
Tax Free Portfolio 0% 100% 100%
California Tax Exempt Portfolio 0% 100% 100%
Institutional Tax Free Portfolio .06% 99.94% 100%
Pennsylvania Tax Free Portfolio 0% 100% 100%
Intermediate-Term Municipal Portfolio 26% 74% 100%
Pennsylvania Municipal Portfolio 0% 100% 100%
(D) (E) (F)
QUALIFYING TAX-EXEMPT FOREIGN
PORTFOLIO DIVIDENDS(1) INTEREST TAX CREDIT
- ---------- ---------------- ---------------- ----------------
Tax Free Portfolio 0% 100% 0%
California 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% 100% 0%
Pennsylvania Municipal Portfolio 0% 100% 0%
<FN>
(1) QUALIFYING DIVIDENDS REPRESENT DIVIDENDS WHICH QUALIFY FOR THE CORPORATE DIVIDENDS RECEIVED DEDUCTION.
* ITEMS (A) AND (B) ARE BASED ON A PERCENTAGE OF EACH FUND'S TOTAL DISTRIBUTIONS.
** ITEMS (D) AND (E) ARE BASED ON A PERCENTAGE OF ORDINARY INCOME DISTRIBUTIONS OF EACH FUND.
</FN>
</TABLE>
60
<PAGE>
================================================================================
SEI TAX EXEMPT TRUST
================================================================================
ANNUAL REPORT
================================================================================
AUGUST 31, 1997
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
Mark Nagle
CONTROLLER, CHIEF FINANCIAL OFFICER
Richard W. Grant
SECRETARY
John H. Grady, Jr.
ASSISTANT SECRETARY
INVESTMENT ADVISERS
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 Investments Distribution Co.
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*800*DIAL*SEI/1*800*342*5734
<PAGE>
<PAGE>
[Logo Omitted]
INVESTMENTS
DISTRIBUTION
CO.
Oaks, PA 19456
800-DIAL-SEI/800-342-5734
SEI-F-024-08
<PAGE>
