ANNUAL REPORT AS OF
AUGUST 31, 1998
SEI TAX EXEMPT
TRUST
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Tax Free Portfolio
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California Tax Exempt Portfolio
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Institutional Tax Free Portfolio
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Pennsylvania Tax Free Portfolio
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Intermediate-Term Municipal Portfolio
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Pennsylvania Municipal Bond Portfolio
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Massachusetts Municipal Bond Portfolio
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New Jersey Municipal Bond Portfolio
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New York Municipal Bond Portfolio
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California Municipal Bond Portfolio
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[LOGO OMITTED]
<PAGE>
TABLE OF CONTENTS
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SEI TAX EXEMPT TRUST -- AUGUST 31, 1998
LETTER TO SHAREHOLDERS .............................................. 1
MUNICIPAL BOND MARKET OVERVIEW ...................................... 2
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FUND PERFORMANCE ............................................ 3
STATEMENT OF NET ASSETS/SCHEDULE OF INVESTMENTS...................... 5
STATEMENT OF ASSETS & LIABILITIES.................................... 59
STATEMENT OF OPERATIONS.............................................. 60
STATEMENT OF CHANGES IN NET ASSETS................................... 63
FINANCIAL HIGHLIGHTS................................................. 66
NOTES TO FINANCIAL STATEMENTS........................................ 68
NOTICE TO SHAREHOLDERS .............................................. 74
REPORT OF INDEPENDENT ACCOUNTANTS ................................... 76
<PAGE>
LETTER TO SHAREHOLDERS
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SEI TAX EXEMPT TRUST -- AUGUST 31, 1998
TO OUR SHAREHOLDERS:
In the fiscal year ending August 31, 1998, yields in the municipal markets
started the year on the right foot as they fell in September 1997 and continued
to do so through December. Yields in the Treasury market also fell through
calendar year end as the markets began to unravel in Asia and investors bought
Treasuries for security.
The Federal Reserve, specifically Chairman Greenspan, made comments in January
1998 regarding the effects of Asia's turmoil on U.S. markets. Greenspan believed
that it would slow economic growth in the United States. However, the
flight-to-quality buying began in late 1997 and continued through second quarter
of 1998 which resulted in decreasing Treasury yields.
The Federal Reserve did not raise or lower interest rates during the past fiscal
year. Interest rates have remained at 5.50% since April of 1997. The Federal
Reserve continues to monitor the events in the Far East and Russia and their
effects on the U.S. markets. Chairman Greenspan continually reminds the markets
of these events. The advisors will review the information available and position
the portfolios accordingly, while keeping in mind each fund's investment
objective.
Thank you for your continued confidence in the SEI Tax Exempt Trust.
Sincerely,
/ s / [signature omitted]
Edward D. Loughlin
PRESIDENT
1
<PAGE>
MUNICIPAL BOND MARKET OVERVIEW
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SEI TAX EXEMPT TRUST -- AUGUST 31, 1998
The broad domestic fixed income markets started the fiscal year on a positive
note as September of 1997 was characterized by falling yields. In general, the
Treasury market responded favorably to a slew of `bond positive' economic data.
With both CPI and PPI reports coming in at below expectations, bond prices rose
on the expectations for controlled inflation pressures. Municipals meanwhile,
rallied as well, yet underperformed their taxable counterparts due to robust new
issue supply. For the rest of calendar 1997, the Treasury market continued its
march higher as yields fell due to another raft of benign inflation data. In
December, the market was further propelled by flight-to-quality buying in lieu
of turmoil in Asia. As events unfolded in the Far East, many investors bought
Treasuries for safety reasons. As one might expect, the municipal bond market
likewise moved higher in the face of low inflation data. However, tax-exempt
bonds underperformed Treasuries due to continued large bond issuance by
municipalities. In addition, municipals remained insulated from the
flight-to-quality trading experienced in the Treasury market.
Despite much volatility, Treasuries moved higher during the next three month
period. Most of the positive momentum occurred in January as comments by Fed
Chairman Greenspan caused Treasury prices to skyrocket. Essentially, Greenspan
indicated that events in Asia could have a dampening effect upon U.S. economic
growth and therefore, inflation. In contrast, the municipal market was mixed
during the period, with yields falling along the 1- to 3-year portion of the
maturity spectrum. Yields rose across the remainder of the curve. Furthermore,
the performance of municipals was once again eclipsed by Treasuries. The
underperformance was again a function of technical pressures as municipalities
rushed to take advantage of the low interest rate environment to either issue
new bonds or refinance older, higher cost debt.
The aforementioned themes of subdued inflation, lower than expected economic
data, and flight-to-quality buying extended through April, May, and June. As a
result, yields on Treasury securities fell once again. The performance of the
tax-exempt market was mixed as strong new issuance served to partially offset
the positive impact of subdued economic data. Nevertheless, the U.S. fixed
income market rounded out the remaining two months of the fiscal year in grand
fashion. Lower than expected CPI and PPI reports, flight-to-quality in the
Treasury market, and comments by Fed Chairman Greenspan combined to send bond
prices to even greater heights. In like manner, municipal bonds rose due to
economic data and Fed comments. However, municipals remained largely insulated
from international flight-to-quality buying. Naturally, without this demand
component, the tax-exempt market underperformed treasuries during the last two
months of the fiscal year.
For the complete fiscal year, the Treasury market posted solid performance with
yields falling by 71 to 143 basis points across all maturities. In contrast,
municipals underperformed the taxable market with yields falling by only 38 to
48 basis points across the AAA-rated general obligation yield curve.
2
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FUND PERFORMANCE
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SEI TAX EXEMPT TRUST -- AUGUST 31, 1998
INTERMEDIATE-TERM
MUNICIPAL PORTFOLIO
OBJECTIVES. The Intermediate-Term Municipal Portfolio seeks the
highest level of income exempt from Federal income taxes that can be obtained,
consistent with the preservation of capital, from a diversified portfolio of
investment grade 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, 1998, the SEI
Intermediate-Term Municipal Portfolio, Class A (the "Fund") posted a total
return of 7.20% versus a total return of 6.82% for the Lehman Brothers 5-Year
G.O. Municipal Bond Index (the "Benchmark") and 7.18% for the Lehman 3- to
10-Year Blend Municipal Index.
The primary driver of outperformance versus the Lehman 5-Year G.O.
Municipal Bond Index was the Fund's longer duration posture. With interest rates
falling throughout the fiscal year, the longer duration positioning allowed the
Fund to more fully participate in the market rally. In addition, the portfolio's
sizable exposure to California bonds further enhanced relative performance.
California issues performed well compared to the broad municipal market during
the period due to improving credit fundamentals. Overall, the Fund maintained a
yield advantage over the index through investment in sectors such as hospitals
and housing bonds.
In like manner, a longer relative duration posture explained much of the
Fund's outperformance versus the Lehman 3- to 10-year Blend Municipal Index. The
Fund's relative performance was further enhanced by its moderate exposure to
BBB-rated securities. This sector of the market performed well primarily due to
technical forces. With interest rates steadily declining throughout the fiscal
year, many municipal investors flocked to the BBB sector in an attempt to garner
excess yield. This increased demand caused the sector to outperform the broad
municipal market. The Fund also benefited from credit upgrades within the
sector. Furthermore, for reasons stated above, the Fund's investment in
California paper also aided performance for the 12-month period.
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INTERMEDIATE-TERM
MUNICIPAL
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AVERAGE ANNUAL TOTAL RETURN1
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One Annualized Annualized Annualized Cumulative
Year 3-Year 5-Year Inception Inception
Return Return Return to Date to Date
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Intermediate-Term
Municipal 7.20% 6.28% 5.38% 6.45% 75.43%
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COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN THE
SEI TAX EXEMPT TRUST INTERMEDIATE-TERM MUNICIPAL PORTFOLIO, VERSUS
THE LEHMAN BROTHERS 5-YEAR G.O. INDEX
[LINE CHART OMITTED]
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
8/98 17538 18266
1 FOR THE PERIODS ENDED AUGUST 31, 1998. PAST PERFORMANCE IS NO INDICATION OF
FUTURE PERFORMANCE.
3
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FUND PERFORMANCE
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SEI TAX EXEMPT TRUST -- AUGUST 31, 1998
PENNSYLVANIA MUNICIPAL BOND PORTFOLIO
OBJECTIVES. The Pennsylvania Municipal Bond Portfolio seeks to provide
current income exempt from both Federal and Pennsylvania state income taxes
while preserving capital by investing primarily in municipal securities.
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 Bond Portfolio (the "Fund")
posted a total return of 7.24% compared to a total return of 6.82% for the
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 7.65%.
Given the falling interest rate environment over the last 12 months, the
Fund's longer duration posture versus the Lehman 5-Year G.O. Municipal Bond
Index was the main contributor to positive relative performance. In addition,
the Fund's exposure to bonds maturing in more than 6 years served to further
bolster performance. In broad terms, the Fund's yield advantage versus the
Benchmark served to enhance results.
In contrast, the slight underperformance versus the Lehman M.F.
Pennsylvania Intermediate Municipal Index was mainly the result of the Fund's
shorter relative duration posture. Nevertheless, the underperformance for the
the fiscal year was mitigated by the Fund's exposure to BBB-rated securities.
BBB's outperformed the broad market due to strong investor demand with the
sector. In addition, the Fund's performance was supported by investment in the
hospital sector. Many hospitals performed well during the year due to merger and
acquisition forces in the healthcare industry. Therefore, the Fund's investment
in stronger financially sound hospital credits, served to bolster relative
returns during the period.
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PENNSYLVANIA MUNICIPAL BOND
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AVERAGE ANNUAL TOTAL RETURN1
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One Annualized Annualized Annualized Cumulative
Year 3-Year 5-Year Inception Inception
Return Return Return to Date to Date
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Pennsylvania
Municipal Bond 7.24% 6.41% 5.42% 6.61% 78.50%
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COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN THE
SEI TAX EXEMPT TRUST PENNSYLVANIA MUNICIPAL BOND PORTFOLIO, VERSUS
THE LEHMAN BROTHERS 5-YEAR G.O. INDEX
[LINE CHART OMITTED]
Tax Exempt Lehman
8/31/89 10000 10000
8/90 10527 10675
8/91 11559 11752
8/92 12584 12918
8/93 13706 14060
8/94 13862 14290
8/95 14806 15449
8/96 15392 16036
8/97 16636 17108
8/98 17840 18275
1 FOR THE PERIODS ENDED AUGUST 31, 1998. PAST PERFORMANCE IS NO INDICATION OF
FUTURE PERFORMANCE.
4
<PAGE>
STATEMENT OF NET ASSETS
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SEI TAX EXEMPT TRUST -- AUGUST 31, 1998
TAX FREE PORTFOLIO
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FACE
AMOUNT (000) VALUE (000)
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MUNICIPAL BONDS -- 105.6%
ALABAMA -- 1.0%
Alabama State, Multi-Family
Housing Revenue Authority,
Rime Village Hoover Project,
Ser A, RB (A) (B) (C)
3.300%, 09/10/98 $4,565 $ 4,565
Tuscaloosa County, Industrial
Development Authority,
Field Container Corporation
Project, RB (A) (B) (C)
3.250%, 09/10/98 850 850
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5,415
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ARIZONA -- 1.8%
Chandler Industrial Development
Authority, Parsons Municipal
Services Project, RB (A) (B) (C)
3.550%, 09/01/98 4,900 4,900
Phoenix, GO
Pre-Refunded @ 102 (D)
6.600%, 07/01/99 1,000 1,044
Tuscon, Industrial Development
Authority, Tuscon City Center
Parking Project, Ser A,
RB (A) (B) (C)
3.425%, 09/10/98 3,800 3,800
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9,744
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ARKANSAS -- 0.2%
Greystone, Tax Exempt Certificate
Trust Authority, Senior Certificate
of Beneficial Ownership
Project, RB (A) (B) (C)
3.400%, 09/10/98 1,203 1,203
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CALIFORNIA -- 2.4%
California State, Higher Education
Loan Authority, Student Loan
Revenue Project, RB (A) (B) (C)
3.800%, 12/01/98 2,500 2,500
California State, Higher Education
Loan Authority, Student Loan
Revenue, Ser 87-A, RB (A) (B) (C)
3.650%, 01/01/99 4,500 4,500
Kern, Community College
District, COP (A) (B) (C)
3.550%, 09/10/98 3,000 3,000
Los Angeles, Community
Redevelopment Authority,
Central Business District I
Project, TA
5.000%, 11/15/98 3,000 3,007
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13,007
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FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
COLORADO -- 2.2%
Colorado State, Housing Finance
Authority, Multi-Family Housing,
Cambray Park Project, RB
(A) (B) (C)
3.400%, 09/10/98 $3,400 $ 3,400
Colorado State, Housing Finance
Authority, Multi-Family Housing,
Grants Plaza Project, Ser A,
RB (A) (B) (C)
3.325%, 09/10/98 1,500 1,500
Colorado State, Housing Finance
Authority, Multi-Family
Housing, Woodstream Project,
RB (A) (B) (C)
3.400%, 09/10/98 2,500 2,500
Fraser, Industrial Development
Authority, Safeway Project,
RB (A) (B) (C)
3.800%, 12/01/98 1,405 1,405
Jefferson County, School District
Ser A, GO
4.000%, 12/15/98 1,500 1,501
Panorama Metropolitan District,
Ser B, RB (A) (B) (C)
4.000%, 12/01/98 1,000 1,000
Stonegate Village, Stonegate
Village Metropolitan District,
Refunding & Improvements
Project, Ser A, GO
5.600%, 12/01/98 770 773
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12,079
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CONNECTICUT -- 0.1%
Connecticut State, GO
6.700%, 12/01/98 400 403
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DELAWARE -- 0.7%
Delaware State, Multi-Family
Economic Development
Authority, School House
Project, RB (A) (B) (C)
3.300%, 09/10/98 4,000 4,000
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DISTRICT OF COLUMBIA -- 0.7%
District of Columbia, General
Fund Recovery Project,
Ser B-2, GO (A) (B) (C)
3.400%, 09/01/98 1,000 1,000
District of Columbia, Ser A, GO,
AMBAC, Pre-Refunded @ 102,
(C) (D)
7.500%, 06/01/99 2,500 2,614
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3,614
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THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
5
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
SEI TAX EXEMPT TRUST -- AUGUST 31, 1998
TAX FREE PORTFOLIO--CONTINUED
- ------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
FLORIDA -- 6.6%
Boca Raton, Industrial
Development Authority,
Parking Garage Project,
Ser 84-A, RB (A) (B) (C)
3.675%, 09/10/98 $ 3,125 $ 3,125
Greystone, Tax Exempt Certificate
Trust Authority, Senior Certificate
of Beneficial Ownership
Project, RB (A) (B) (C)
3.400%, 09/10/98 1,825 1,825
Highlands County, Health Facility
Authority, Adventist/
Sunbelt Project, Ser A,
RB (A) (B) (C)
3.300%, 09/10/98 10,000 10,000
Housing Finance Agency,
Multi-Family Housing, Lakeside
Project, RB (A) (B) (C)
3.325%, 09/10/98 1,130 1,130
Jacksonville, Industrial
Development Authority,
Trailer Marine Project,
RB (A) (B) (C)
3.600%, 09/10/98 1,200 1,200
Lee County, Industrial
Development Authority,
Christian & Missionary
Project, RB (A) (B) (C)
3.325%, 09/10/98 2,790 2,790
Orange County, Educational
Facilities Authority, Rollins
College Project, RB (A) (B) (C)
3.350%, 09/10/98 3,400 3,400
Orange County, Industrial
Development Revenue
Authority, Central Florida YMCA
Project, RB (A) (B) (C)
3.350%, 09/10/98 4,825 4,825
Orange County, Multi-Family
Housing Authority, Post Lake
Apartments Project, RB (A) (B) (C)
3.300%, 09/10/98 1,925 1,925
Palm Beach County, Health
Facilities Authority, RB
Pre-Refunded @ 102 (D)
8.875%, 12/01/98 500 516
Pasco County, Multi-Family
Housing Authority,
Carlton Arms Magnolia Project,
RB (A) (B) (C)
3.425%, 09/10/98 1,000 1,000
- ------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Putnam County, Development
Authority, Seminole Electric
Project, Ser H-2, RB (A) (B)
3.450%, 09/10/98 $2,400 $ 2,400
Sarasota, Education Facilities
Authority, Ringling School of
Art & Design, RB (A) (B) (C)
3.350%, 09/10/98 1,500 1,500
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35,636
-------
GEORGIA -- 9.8%
Catoosa County, Industrial
Development Authority, Galaxy
Carpet Project, RB (A) (B) (C)
3.350%, 09/10/98 6,500 6,500
Clayton County, Multi-Family
Housing Authority, Rainwood
Development Project,
RB (A) (B) (C)
3.325%, 09/10/98 2,000 2,000
Cobb County, Health Care
Facilities for the Elderly,
Presbyterian Village Project,
RB (A) (B) (C)
3.350%, 09/10/98 2,000 2,000
Cobb County, Multi-Family
Housing Authority, Post Bridge
Project, RB (A) (B) (C) (E)
3.300%, 09/10/98 1,000 1,000
Conyers-Rockdale-Big Haynes,
Impoundment Authority, RB
4.000%, 12/01/98 3,000 3,003
DeKalb County, Industrial
Development Authority, Dart
Container Project, RB (A) (B) (C)
3.750%, 09/10/98 1,000 1,000
Fulton County, Development
Authority, Robert W. Woodruff
Arts Center Project,
RB (A) (B) (C)
3.350%, 09/10/98 2,200 2,200
Fulton County, Development
Authority, Woodward Academy
Project, RB (A) (B) (C)
3.350%, 09/10/98 6,000 6,000
Garden County, Hospital
Authority, Adventist Health
System Project, Ser A,
RAN (A) (B) (C)
3.300%, 09/10/98 1,325 1,325
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
6
<PAGE>
- --------------------------------------------------------------------------------
- ------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Gordon, Industrial Development
Authority, Federal Paper
Board Incorporated Project,
Ser 92, RB (A) (B) (C)
3.300%, 09/10/98 $ 2,000 $ 2,000
Greystone, Tax Exempt Certificate
Trust Authority, Senior Certificate
of Beneficial Ownership Project,
RB (A) (B) (C)
3.400%, 09/10/98 6,097 6,097
Gwinnett County, Development
Authority, Wesleyan School
Project, RB (A) (B) (C)
3.350%, 09/10/98 1,400 1,400
Gwinnett County, Multi-Family
Housing Authority, Post Chase
Project, RB (A) (B)
3.300%, 09/10/98 1,500 1,500
Marietta, Multi-Family Housing
Authority, Falls at Bells Ferry
Project, RB (A) (B) (C)
3.950%, 01/15/99 4,500 4,504
Newton, Industrial Development
Authority, H.B. Fuller Project,
Ser 84, RB (A) (B) (C)
3.450%, 09/10/98 3,100 3,100
Richmond County, Industrial
Development Authority, Federal
Paper Board Project, Ser 92,
RB (A) (B) (C)
3.300%, 09/10/98 1,000 1,000
Savannah Housing Authority,
Somerset Wharf Project, Ser B,
RB (A) (B)
3.300%, 09/10/98 1,800 1,800
Smyrna, Multi-Family Housing
Authority, F&M Villages Project,
RB (A) (B)
3.300%, 09/10/98 1,000 1,000
Smyrna, Multi-Family Housing
Authority, Gardens Post Village
Project, RB (A) (B)
3.300%, 09/10/98 4,100 4,100
Whitfield County, Residential Care
Facility Authority, Royal Oaks
Senior Living Community
Project, RB (A) (B) (C)
3.300%, 09/10/98 1,700 1,700
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53,229
-------
- ------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
HAWAII -- 0.3%
Hawaii State, Department of
Budget & Finance Authority,
Kuakini Medical Center Project,
RB (A) (B) (C)
3.550%, 09/10/98 $1,460 $ 1,460
-------
ILLINOIS -- 13.6%
Cook County, Ser C, GO, FGIC
5.000%, 11/15/98 1,220 1,223
Cook County, Catholic
Charities Project, Ser A-1,
RB (A) (B) (C)
3.250%, 09/10/98 3,700 3,700
East Peoria, Multi-Family Housing
Authority, Radnor East Project,
RB (A) (B) (C)
3.550%, 09/10/98 1,495 1,495
Health Facilities Authority,
Pekin Memorial Hospital
Project, Ser C, RB (A) (B) (C)
3.330%, 09/10/98 3,100 3,100
Illinois State, Development Finance
Authority, Catholic Charities
Project, Ser B, RB (A) (B) (C)
3.250%, 09/10/98 10,655 10,655
Illinois State, Development Financing
Authority, Dart Container
Project, RB (A) (B) (C)
3.400%, 09/10/98 1,300 1,300
Illinois State, Development
Finance Authority, Decatur
Mental Health Center
Project, RB (A) (B) (C)
3.350%, 09/10/98 3,390 3,390
Illinois State, Development
Financial Authority, Glenwood
School for Boys Project,
RB (A) (B) (C)
3.250%, 09/10/98 9,000 9,000
Illinois State, Educational
Facilities Authority,
Northwestern Project,
RB (A) (B) (C)
3.300%, 09/10/98 4,200 4,200
Illinois State, Health Facilities
Authority, Gottlieb Health
Residence Project, RB (A) (B) (C)
3.250%, 09/10/98 2,500 2,500
Illinois State, Health Facilities
Authority, Lifelink Corporation
Project, Ser A, RB (A) (B) (C)
3.350%, 09/10/98 7,300 7,300
7
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
SEI TAX EXEMPT TRUST -- AUGUST 31, 1998
TAX FREE PORTFOLIO--CONTINUED
- ------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Illinois State, Health Facilities
Authority, Pekin Memorial
Hospital Project, RB (A) (B) (C)
3.330%, 09/10/98 $ 1,500 $ 1,500
Illinois State, Health Facilities
Authority, Revolving Fund
Pooled Project, Ser C,
RB (A) (B) (C)
3.250%, 09/10/98 1,000 1,000
Illinois State, Health Facilities
Authority, Riverside Health
Systems Project, RB (A) (B) (C)
3.300%, 09/10/98 1,900 1,900
Illinois State, Health Facilities
Authority, Rockford Health
System Project, RB, AMBAC (C)
4.150%, 08/15/99 1,380 1,387
Illinois State, Health Facilities
Authority, Streeterville
Corporation, Ser A, RB
(A) (B)
3.250%, 09/10/98 1,000 1,000
Illinois State, Multi-Family
Housing Authority, Park Plaza
Center Project, RB (A) (B) (C)
3.250%, 09/10/98 2,000 2,000
Illinois State, Rural Board
Banking Authority, Public
Construction Project, RB
4.500%, 03/15/99 7,000 7,031
Kane County, School District
No. 131, Aurora East Side, TAW
4.150%, 09/30/98 1,000 1,000
Peoria, Economic Development,
Authority North Point Shopping
Center Project, RB (A) (B) (C)
3.800%, 12/01/98 2,130 2,130
Skokie, Industrial Development
Authority, Fashion Square
Project, RB (A) (B) (C)
3.675%, 09/10/98 4,350 4,350
Saint Clair County, Industrial
Building Authority, Winchester
Apartments Project, Ser 94,
RB (A) (B)
3.500%, 09/10/98 3,000 3,000
-------
74,161
-------
INDIANA -- 13.7%
Carmel Clay, TAW
4.100%, 12/31/98 4,200 4,203
- ------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Concord, Community Schools
Project, TAW
4.150%, 12/31/98 $1,100 $ 1,101
East Allen County,
Schools, TAW
3.800%, 12/31/98 2,600 2,601
East Chicago, City Schools,
Center High School Building,
RB Pre-Refunded @ 100 (D)
11.750%, 02/01/99 1,815 1,873
Gary, Environmental Improvement,
U.S. Steel Corporation Project,
RB (A) (B) (C)
3.550%, 09/10/98 9,800 9,800
Goshen, Community Schools
Project, TAW
4.100%, 12/31/98 2,105 2,107
Hammond, Local Public
Improvement Board, Advance
Funding Project, Ser A-2, RB
4.300%, 01/07/99 2,500 2,504
Indiana, Development Finance
Authority, Industrial
Development Revenue,
Goodwill Industries Center
Project, RB (A) (B) (C)
3.300%, 09/10/98 1,600 1,600
Indiana, Health Facilities Finance
Authority, Lutherwood Project,
RB (A) (B) (C)
3.350%, 09/10/98 900 900
Indiana State, GO
4.000%, 09/10/98 7,000 7,005
Indiana State, Health Facilities
Authority, Hartsfield Village
Project, Ser B, RB (A) (B) (C)
3.300%, 09/10/98 5,000 5,000
Kankakee Valley, School Building
Corporation, TAN
3.900%, 12/31/98 2,633 2,635
Lake Central, School
Authority, TAW
3.750%, 12/31/98 2,000 2,000
Lawrence Township, Metropolitan
School District, TAW
3.800%, 12/31/98 2,250 2,251
Michigan City, Indiana Area
Schools, TAW
4.250%, 12/31/98 1,400 1,401
Muncie, Community
Schools, TAW
4.000%, 12/31/98 1,500 1,501
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
8
<PAGE>
- --------------------------------------------------------------------------------
- ------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Northwest Allen County,
Indiana Schools Project, TAW
4.000%, 12/31/98 $1,500 $ 1,501
Penn Harris, Madison School
Corporation, TAW
4.000%, 12/31/98 3,904 3,907
Portage Township,
Schools Project, TAN
4.150%, 12/31/98 1,000 1,001
Portage, Economic Development
Authority, RB (A) (B) (C)
3.450%, 09/10/98 610 610
Residential Apartments, Portfolio
Certificates of Trust, Ser 96A,
RB (A) (B) (C)
3.400%, 09/10/98 5,850 5,850
Richmond, Community
Schools, TAW
4.100%, 12/31/98 1,525 1,527
Southwest Allen County,
Metropolitan School
District, TAW
4.000%, 12/31/98 3,000 3,003
State, Development Financial
Authority, Culver Educational
Facilities, RB (A) (B) (C)
3.250%, 09/10/98 1,000 1,000
Wayne Township, Metropolitan
School District, TAW
3.900%, 12/31/98 2,710 2,711
Whiting, Indiana School
City, TRAN
4.100%, 12/31/98 2,500 2,503
Whitley County, Indiana
Schools, TAW
4.000%, 12/31/98 2,260 2,261
-------
74,356
-------
IOWA -- 1.0%
Chillicothe, Pollution Control
Authority, Iowa-Illinois Gas
and Electric Project,
RB (A) (B)
3.300%, 09/10/98 5,000 5,000
Chillicothe, Pollution Control
Authority, Midwest Power
Systems Project, Ser A,
RB (A) (B)
3.300%, 09/10/98 200 200
Iowa State, Higher Education
Authority, St. Ambrose University
Project, RB (A) (B) (C)
3.400%, 09/10/98 500 500
-------
5,700
-------
- ------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
KANSAS -- 0.6%
City of Manhattan, Ser 2, TAN
3.750%, 01/15/99 $1,230 $ 1,230
Greystone, Tax Exempt Certificate
Trust Authority, Senior Certificate
of Beneficial Ownership Project,
RB (A) (B) (C)
3.400%, 09/10/98 902 902
Salina, Central Mall Dillard,
Ser 84, RB (A) (B) (C)
3.550%, 09/10/98 495 495
Wichita, Ser 698, GO, ETM
7.250%, 12/01/98 500 504
-------
3,131
-------
KENTUCKY -- 3.5%
Jefferson County, Industrial
Development Authority,
BelKnap Project, RB (A) (B) (C)
3.550%, 09/10/98 1,282 1,282
Kentucky State, Economic
Development Finance Authority,
Adventist Health Systems,
Ser A, RB (A) (B) (C)
3.300%, 09/10/98 1,480 1,480
Kentucky State, Economic
Development Finance Authority,
Pooled Hospital Loan Project,
RB (A) (B)
3.450%, 09/10/98 6,400 6,400
Kentucky State, TRAN
3.660%, 06/30/99 10,000 10,000
-------
19,162
-------
LOUISIANA -- 0.7%
Louisiana, Public Facilities
Authority, Health and
Education Capital Facilities, RB
8.200%, 12/01/98 3,530 3,640
-------
MARYLAND -- 1.5%
Anne Arundel County, Kellington
Association Project, RB (A) (B) (C)
3.600%, 09/15/98 1,250 1,250
Anne Arundel County, Pollution
Control Revenue Authority,
Baltimore Gas & Electric
Project, Ser 84, RB (A) (B)
3.650%, 01/01/99 1,380 1,380
9
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
SEI TAX EXEMPT TRUST -- AUGUST 31, 1998
TAX FREE PORTFOLIO--CONTINUED
- ------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Health & Higher Education
Facilities Authority, Greater
Baltimore Medical Center,
RB (A) (B)
3.350%, 09/10/98 $3,805 $ 3,805
Howard County, Multi-Family
Housing Authority, Sherwood
Crossing Project, RB (A) (B) (C)
3.850%, 12/01/98 1,500 1,500
-------
7,935
-------
MASSACHUSETTS -- 0.4%
Clinton, BAN
4.250%, 11/20/98 2,025 2,027
-------
MICHIGAN -- 1.8%
Ingham County, Economic
Development Authority,
Martin Luther Memorial
Home Project, RB (A) (B) (C)
3.250%, 09/10/98 4,150 4,150
Jackson County, Economic
Development Authority,
Limited Thrifty Leoni
Project, RB (A) (B) (C)
3.425%, 12/01/14 800 800
Michigan State, Job Development
Authority, East Lansing
Residential Project,
RB (A) (B) (C)
3.600%, 09/10/98 1,000 1,000
Northville Township, Economic
Development Authority, Thrifty
Northville Project, RB (A) (B) (C)
3.325%, 09/10/98 1,000 1,000
Sterling Heights, Economic
Development Authority, Sterling
Shopping Center Project , RB
(A) (B) (C)
3.500%, 09/10/98 2,600 2,600
-------
9,550
-------
MINNESOTA -- 1.1%
Burnsville, Multi-Family Housing
Authority, Ser A, RB (A) (B)
3.300%, 09/10/98 5,000 5,000
Eagan County, Yankee Square Inn
Project, RB (A) (B) (C)
3.400%, 09/10/98 925 925
-------
5,925
-------
- ------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
MISSISSIPPI -- 0.7%
Jackson, Redevelopment Authority,
Central Business District
Development Project, RB, MBIA
4.000%, 11/01/98 $ 470 $ 470
Mississippi State, College
Project, RB (A) (B) (C)
3.300%, 09/10/98 3,400 3,400
-------
3,870
-------
MISSOURI -- 1.6%
Missouri State, Environmental
Improvement & Energy Pollution
Control Authority, RB (A) (B)
3.750%, 12/01/98 5,500 5,500
Saint Louis, Grantor Trust,
Ser 96-A, COP (A) (B) (C)
3.500%, 09/10/98 2,955 2,955
-------
8,455
-------
MONTANA -- 0.1%
Montana State, Department of
Transportation Highway
Authority, RB
4.700%, 07/01/99 700 706
-------
NEBRASKA -- 0.4%
Nebraska State, Public Power
Distribution Authority,
Ser A, RB
4.500%, 01/01/99 2,000 2,005
-------
NEW HAMPSHIRE -- 0.4%
Education & Health Facilities
Authority, Dartmouth
Education Loan Project,
RB (A) (B)
3.950%, 06/01/99 1,150 1,150
Strafford County, TAN
3.920%, 12/31/98 1,300 1,301
-------
2,451
-------
NEW JERSEY -- 0.5%
Economic Development
Authority, Industrial and
Economic Revenue, Carolina
Freight Project, RB (A) (B) (C)
3.400%, 09/10/98 1,440 1,440
New Jersey, Economic
Development Authority,
Cincinnati Gear Company,
RB (A) (B) (C)
4.000%, 10/01/98 520 520
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
10
<PAGE>
- --------------------------------------------------------------------------------
- ------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
New Jersey State, Industrial and
Economic Development
Authority, Dates Toys "R" Us
Urban Renewal Corporation
Project, RB (A) (B) (C)
3.600%, 09/10/98 $1,000 $ 1,000
-------
2,960
-------
NEW MEXICO -- 1.1%
Albuquerque, Industrial Development
Authority, Plastech Project,
Ser 94-B, RB (A) (B) (C)
3.400%, 09/10/98 1,855 1,855
Finance Authority, Administration
Fee Trims Project, Ser A, RB
(A) (B) (C)
3.300%, 09/10/98 4,200 4,200
-------
6,055
-------
NEW YORK -- 1.3%
North Hempstead, BAN
4.000%, 07/29/99 3,320 3,326
Utica, City School District, TRAN
4.000%, 06/30/99 3,500 3,504
-------
6,830
-------
NORTH CAROLINA -- 0.2%
Beaufort Industrial Facility, Pollution
Control Revenue, Texas Gulf
Corporation, RB (A) (B) (C)
3.400%, 09/10/98 375 375
Durham, New Public Housing
Authority, RB
5.750%, 10/01/98 1,000 1,002
-------
1,377
-------
NORTH DAKOTA -- 0.5%
Fargo Commercial Development
Revenue, Cass Oil Project,
RB (A) (B) (C)
3.400%, 09/10/98 2,500 2,500
-------
OHIO -- 3.1%
Canton, GO Pre-Refunded @ 103 (D)
7.875%, 12/01/98 1,000 1,038
Cincinnati & Hamilton County
Port Authority, CEI Realty Project,
RB (A) (B) (C)
3.750%, 09/01/98 290 290
Crawford County, BAN
4.000%, 02/12/99 1,500 1,501
- ------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Highland County, Industrial
Development Revenue, Lancaster
Colony Corporation Project,
RB (A) (B) (C)
3.650%, 09/01/98 $ 900 $ 900
Lima Hospital Revenue, Refunding
and Improvement, Lima Memorial
Hospital Project, RB (A) (B) (C)
3.300%, 09/10/98 2,000 2,000
Lorain County, Hospital Facilities
Financing Authority, Catholic
Health Care Project, Ser A,
RB (A) (B) (C)
3.550%, 09/10/98 5,000 5,000
Lorain County, Hospital Authority,
Elyria United Methodist Village
Project, Ser 1996B, RB (A) (B) (C)
3.350%, 09/10/98 1,100 1,100
Perry, Local School District, Lake
County, GO (C)
4.250%, 12/01/98 750 751
Southwest, Regional Water
District, BAN
4.100%, 08/19/99 2,300 2,306
Summit County, Industrial
Development Authority, Arlington
Plaza Project, RB (A) (B) (C)
3.600%, 09/01/98 2,195 2,195
-------
17,081
-------
OKLAHOMA -- 1.6%
Bartlesville Development Authority,
Heritage Villa Nursing Center,
RB (A) (B) (C)
3.350%, 09/10/98 3,000 3,000
Tulsa City, Industrial Health Care
Authority, Laureate Psychiatric
Project, RB (A) (B)
3.800%, 12/15/98 3,500 3,500
Tulsa Parking Authority, Refunding
First Mortgage Williams Project 84,
Ser A, RB (A) (B) (C)
3.750%, 11/15/98 2,020 2,020
-------
8,520
-------
OREGON -- 0.5%
Oregon State, Department of General
Services, Ser E, COP, AMBAC
6.600%, 09/01/98 500 500
Portland, Multi-Family Housing
Authority, University Park
Apartments Project, RB (A) (B) (C)
3.250%, 09/10/98 2,400 2,400
-------
2,900
-------
11
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
SEI TAX EXEMPT TRUST -- AUGUST 31, 1998
TAX FREE PORTFOLIO--CONTINUED
- ------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
PENNSYLVANIA -- 11.9%
Allegheny County, Industrial
Development Authority, Watson
Rhenania Project, RB (A) (B) (C)
3.500%, 09/10/98 $1,440 $ 1,440
Blair County, Hospital Authority,
First Mortgage-Mercy
Hospital Project, RB
Pre-Refunded @ 102 (D)
8.125%, 02/01/99 1,250 1,297
Chester County, Health & Education
Facilities Authority, Barclay Friends
Project, Ser A, RB (A) (B) (C)
3.200%, 09/10/98 1,000 1,000
Clarion County, Industrial
Development Authority,
Meritcare Project, Ser A, RB
(A) (B) (C)
3.350%, 09/10/98 900 900
Dauphin County, General Hospital
Authority, Reading Hospital and
Medical Center Project, Ser A,
RB (A) (B)
3.250%, 09/10/98 600 600
Dauphin County, General Authority,
Allhealth Pooled Finance Program,
Ser B, RB (A) (B)
3.350%, 09/10/98 8,500 8,500
Emmaus General Authority,
RB, FSA (A) (B)
3.250%, 09/10/98 1,500 1,500
Erie County, Hospital Authority,
Union City Memorial Hospital,
RB (A) (B) (C)
3.350%, 09/10/98 500 500
Lancaster County, Higher Education
Authority, Franklin & Marshall
College Project, RB (A) (B) (C)
3.350%, 09/10/98 1,835 1,835
Lebanon County, Health Facility
Center Authority, United Church
Christ Homes Project,
RB (A) (B) (C)
3.300%, 09/10/98 3,900 3,900
Lebanon County, Redevelopment
Authority, First Mortgage
Cornwell Manor, Ser S, RB
8.625%, 06/01/99 1,570 1,657
Montgomery County, Higher
Education & Health Authority,
Ser A, RB (A) (B) (C)
3.300%, 09/10/98 1,500 1,500
- ------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Montgomery County, Higher
Education & Health Authority,
Higher Education & Health Loan,
Ser 96-A, RB (A) (B) (C)
3.300%, 09/10/98 $ 7,400 $ 7,400
Montgomery County, Higher
Education & Health Authority,
Holy Redeemer Hospital Project,
RB, AMBAC (A) (B)
3.150%, 09/10/98 100 100
Montgomery County, Industrial
Development Authority, IKEA
Property Project,
RB (A) (B) (C)
3.350%, 09/10/98 3,500 3,500
Moon Township, Industrial
Development Authority, Executive
Office Association Project,
RB (A) (B) (C)
3.350%, 09/10/98 2,700 2,700
North Cumberland County,
Industrial Development
Authority, Atlas Development,
Project, RB (A) (B) (C)
3.350%, 09/10/98 630 630
Pennsylvania State, Ser A, GO
6.800%, 05/01/99 1,000 1,019
Philadelphia, Industrial
Development Authority,
Inglis House Project,
RB (A) (B) (C)
3.550%, 09/01/98 14,000 14,000
Scranton-Lackawana, Health &
Welfare Authority, University of
Scranton Project, RB (A) (B) (C)
3.850%, 11/01/98 545 545
Somerset County, Hospital Authority,
Somerset Community Hospital
Project, Ser A, RB (A) (B) (C)
3.625%, 09/01/98 1,600 1,600
Union County, Hospital Authority
Revenue, United Care Methodist
Continuing Care Services Project,
RB (A) (B) (C)
3.350%, 09/10/98 1,375 1,375
Washington County, Lease Revenue
Authority, RB (A) (B) (C)
3.300%, 09/10/98 1,300 1,300
York, General Pooled Finance
Authority, City of Reading
Project, Ser 96-A, RB,
AMBAC (A) (B)
3.250%, 09/10/98 5,700 5,700
-------
64,498
-------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
12
<PAGE>
- --------------------------------------------------------------------------------
- ------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
RHODE ISLAND -- 0.6%
Cranston, BAN
4.500%, 06/28/99 $3,000 $ 3,017
-------
SOUTH CAROLINA -- 1.4%
Charleston Center Tax Exempt
Bond Grantor Trust #5,
RB (A) (B) (C)
3.600%, 09/01/98 1,000 1,000
Florence County, Industrial
Development Revenue, La-Z-Boy
Chair Project, RB (A) (B)
3.400%, 09/10/98 5,000 5,000
Spartanburg County, Hospital
Facility Authority, Mary Black
Memorial Hospital Project,
RB Pre-Refunded @ 102 (D)
8.250%, 10/01/98 1,500 1,535
-------
7,535
-------
TENNESSEE -- 2.8%
Greystone, Tax Exempt Certificate
Trust Authority, Senior Certificate
of Beneficial Ownership Project,
RB (A) (B) (C)
3.400%, 09/10/98 6,819 6,819
Knox County, Industrial
Development Board, Professional
Plaza Project, RB (A) (B) (C)
3.500%, 09/10/98 2,300 2,300
Nashville & Davidson County,
Health & Education Facilities
Authority, Adventist/Sunbelt
Project, Ser A,
RB (A) (B) (C)
3.300%, 09/10/98 1,900 1,900
Tennessee State, Retirement System,
BAN (A) (B)
3.150%, 09/10/98 4,000 4,000
-------
15,019
-------
TEXAS -- 3.1%
Brazo River, Hoffman-LaRoche
Project, Ser 85, RB (A) (B) (C)
3.325%, 09/10/98 1,000 1,000
Dallas Fort Worth, Regional Airport
Authority, Dallas Fort Worth
International Airport Project,
RB, MBIA
4.300%, 11/01/98 500 501
Garland, GO
8.000%, 02/15/99 810 825
Harris County, Multi-Family
Housing, Woodgate Project,
RB (A) (B) (C)
3.575%, 09/10/98 1,900 1,900
- ------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Harris County, Toll Road Project,
Ser G, RB (A) (B) (C)
3.250%, 09/10/98 $ 750 $ 750
Houston, Health Facilities
Development Authority,
Memorial Northwest Pavilion
Project, RB (A) (B) (C)
3.350%, 09/10/98 845 845
Lower Colorado River, Lower
Colorado River Authority,
RB, MBIA
7.200%, 01/01/99 1,000 1,011
Tarrant County, Health Facility
Development Corporation,
Adventist Health System
Project, Ser A, RB (A) (B) (C)
3.300%, 09/10/98 3,000 3,000
Texas State, Dallas Northway
Turnpike Authority, RB
Pre-Refunded @ 102 (D)
AMBAC
7.125%, 01/01/99 1,015 1,046
Texas State, Department of
Housing Authority, Ser E, RB
4.200%, 09/01/98 925 925
Texas State, Municipal Power
Agency, RB, FGIC
6.750%, 09/01/98 2,000 2,000
Trinity River, Industrial
Development Authority,
Trinity River Project,
RB (A) (B) (C)
3.325%, 09/10/98 2,900 2,900
-------
16,703
-------
UTAH -- 0.7%
Castle Dale, Industrial
Development Authority,
Safeway Project, RB (A) (B) (C)
3.650%, 02/01/99 1,325 1,325
Nephi, Industrial Development
Authority, Safeway Project,
RB (A) (B) (C)
3.650%, 10/01/98 1,890 1,890
Tremonton City, Industrial
Development Authority, Safeway
Project, RB (A) (B) (C)
3.800%, 12/01/98 840 840
-------
4,055
-------
VERMONT -- 1.0%
Student Assistance Student Loan
Bonds, Ser 85, RB (A) (B) (C)
3.550%, 09/10/98 5,225 5,225
-------
13
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
SEI TAX EXEMPT TRUST -- AUGUST 31, 1998
TAX FREE PORTFOLIO--CONCLUDED
- ------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
VIRGINIA -- 1.4%
Greystone, Tax Exempt Certificate
Trust Authority, Senior Certificate
of Beneficial Ownership Project,
RB (A) (B) (C)
3.400%, 09/10/98 $3,209 $ 3,209
Harrisonburg, Multi-Family
Housing Authority, Rolling
Brook Village Apartment
Project, RB (A) (B) (C)
3.750%, 09/10/98 2,000 2,000
Richmond, BAN
3.300%, 09/10/98 (A) (B) 1,100 1,100
Stafford County, Industrial
Development Authority, Safeway
Project, RB (A) (B) (C)
3.800%, 12/01/98 1,585 1,585
-------
7,894
-------
WASHINGTON -- 1.0%
Clark County, Public Utility Electric
Power, District No. 1, RB, ETM
10.250%, 01/01/99 1,255 1,281
Housing Finance Community,
Pioneer Human Services Project,
Ser 91, RB (A) (B) (C)
3.300%, 09/10/98 965 965
Washington State, Ser 89B, GO
Pre-Refunded @ 100 (D)
7.200%, 09/01/98 1,600 1,600
Washington State, Health Care
Facilities Authority, Sisters of
Providence Project, RB
5.000%, 10/01/98 1,295 1,296
Washington State, Non-Profit
Housing Authority, Panorama
City Project, RB (A) (B) (C)
3.750%, 09/01/98 500 500
-------
5,642
-------
WEST VIRGINIA -- 1.6%
West Virginia State, Building
Commission, Regional Jail Project,
Ser A, RB, AMBAC
4.500%, 07/01/99 1,635 1,646
West Virginia State, Hospital
Finance Authority, St. Joseph's
Hospital Project, RB (A) (B) (C)
3.350%, 09/10/98 2,400 2,400
West Virginia State, Hospital
Finance Authority, Cabell
Huntington Hospital Project,
Ser B, RB Pre-Refunded @ 102 (D)
7.700%, 01/01/99 750 775
- ------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Wood County, Industrial
Development Revenue, Gas
Project, RB (A) (B) (C)
3.550%, 09/10/98 $4,000 $ 4,000
-------
8,821
-------
WISCONSIN -- 4.4%
Beaver Dam, USD, TRAN
3.800%, 08/24/99 2,000 2,001
De Forest, Area School
District, TRAN
4.080%, 09/18/98 1,200 1,200
Delavan Darien, School
District, TRAN
3.900%, 08/27/99 3,500 3,503
Grafton, School District, TRAN
4.150%, 09/30/98 1,550 1,550
Hortonville, BAN
4.250%, 12/15/98 1,000 1,001
Jefferson, School District, TRAN
3.850%, 09/08/99 1,600 1,601
LaCrosse, Industrial Development
Authority, LaCrosse Properties
Project, RB (A) (B) (C)
3.400%, 09/10/98 5,045 5,045
Two Rivers, Public School
District, BAN
4.050%, 01/11/99 1,000 1,000
Village of Menomonee,
Industrial Development Authority,
Maysteel Corporation Project,
RB (A) (B) (C)
3.400%, 09/10/98 1,900 1,900
West Salem, School District, TRAN
3.870%, 08/26/99 2,100 2,101
Whitehall, School District, TRAN
4.100%, 09/28/98 1,000 1,000
Wisconsin State, Health & Elderly
Facilities Authority, Cedar Crest
Project, RB (A) (B) (C)
3.350%, 09/10/98 1,000 1,000
Wisconsin State, Ser 3, GO
4.125%, 11/01/98 1,000 1,001
-------
23,903
-------
Total Municipal Bonds
(Cost $573,399) 573,399
-------
Total Investments -- 105.6%
(Cost $573,399) 573,399
-------
Other Assets and Liabilities, Net -- (5.6%) (30,122)
-------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
14
<PAGE>
- --------------------------------------------------------------------------------
- ------------------------------------------------------------
VALUE (000)
- ------------------------------------------------------------
NET ASSETS:
Portfolio Shares of Class A (unlimited
authorization -- no par value) based
on 543,457,127 outstanding shares
of beneficial interest $543,325
Portfolio Shares of Class D (unlimited
authorization -- no par value) based
on 1,292 outstanding shares of
beneficial interest 1
Distribution in excess of net
investment income (20)
Accumulated net realized loss
on investments (29)
--------
TOTAL NET ASSETS -- 100.0% $543,277
========
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 COMPANY
BAN BOND ANTICIPATION NOTE
COP CERTIFICATE OF PARTICIPATION
ETM ESCROWED TO MATURITY
FGIC FINANCIAL GUARANTY INSURANCE COMPANY
FNMA FEDERAL NATIONAL MORTGAGE ASSOCIATION
FSA FINANCIAL SECURITY ASSISTANCE
GO GENERAL OBLIGATION
MBIA MUNICIPAL BOND INSURANCE ASSOCIATION
RAN REVENUE ANTICIPATION NOTE
RB REVENUE BOND
TA TAX ALLOCATION
TAN TAX ANTICIPATION NOTE
TAW TAX ANTICIPATION WARRANT
TRAN TAX & REVENUE ANTICIPATION NOTE
USD UNIFIED SCHOOL DISTRICT
(A) FLOATING RATE SECURITY -- THE RATE REFLECTED ON THE STATEMENT OF NET ASSETS
IS THE RATE IN EFFECT ON AUGUST 31, 1998.
(B) PUT AND DEMAND FEATURE -- THE DATE REPORTED ON THE STATEMENT OF NET ASSETS
IS THE EARLIER OF THE MATURITY DATE OR THE PUT 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.
(E) SECURITIES ARE COLLATERALIZED UNDER AN AGREEMENT FROM FNMA.
- --------------------------------------------------------------------------------
CALIFORNIA TAX EXEMPT
PORTFOLIO
- ------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
MUNICIPAL BONDS -- 102.0%
CALIFORNIA -- 101.7%
Abag Finance Authority, Bentley
School Project, COP (A) (B) (C)
2.900%, 09/10/98 $1,500 $ 1,500
Alameda County, Contra-Costa
Schools Financing Authority,
Improvements Financing Project,
Ser B, COP (A) (B) (C)
2.500%, 09/10/98 4,900 4,900
Alameda County, Contra-Costa
Schools Financing Authority,
Improvements Financing Project,
Ser C, COP (A) (B) (C)
2.500%, 09/10/98 5,260 5,260
Alameda County, TRAN
4.250%, 07/07/99 4,000 4,029
Alhambra, Industrial Development
Authority, Sunclipse Project,
RB (A) (B) (C)
3.400%, 09/10/98 800 800
Brawley, Water Systems
Improvement Project, COP, MBIA
4.500%, 12/01/98 670 672
California School Facility Financing,
Capital Improvement Financing
Project, Ser A, RB (A) (B) (C)
2.550%, 09/10/98 2,800 2,800
California State
Transportation Financial
Authority, RB (A) (B)
2.600%, 09/10/98 20,000 20,000
California Statewide, Community
Development Authority, Covenant
Retirement Communities Project,
COP (A) (B) (C)
2.650%, 09/10/98 5,100 5,100
Chowchilla, Unified High School
District, TRAN
3.850%, 06/30/99 1,300 1,302
City of El Cerrito, RB
3.875%, 06/30/99 2,000 2,003
Community Development Authority,
North California Retirement
Project, RB, (A) (B) (C)
3.100%, 09/01/98 300 300
Conejo Valley, USD, GO, TRAN
3.750%, 07/01/99 10,000 10,006
Contra Costa County, Multi-Family
Mortgage Authority, Bay
Apartment Communities Project,
Ser B, RB (A) (B)
2.300%, 09/10/98 1,000 1,000
15
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
SEI TAX EXEMPT TRUST -- AUGUST 31, 1998
CALIFORNIA TAX EXEMPT PORTFOLIO--CONTINUED
- ------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Contra Costa County, Multi-Family
Housing Authority, Delta Square
Project, Ser A, RB (A) (B) (C)
3.200%, 09/10/98 $ 3,400 $ 3,400
Corona, Multi-Family Housing
Authority, County Hills Project,
Ser B, RB (A) (B) (C)
2.600%, 09/10/98 855 855
Corona, Redevelopment Agency
Authority, Crown Point Project,
Ser 85, RB (A) (B) (C)
3.800%, 05/01/99 7,405 7,405
Education Facility Authority,
Pomona College Project,
RB (A) (B)
2.500%, 09/10/98 10,200 10,200
Escondido, Community
Development Authority,
Heritage Park Apartment
Project, Ser A, RB (A) (B) (C)
2.350%, 09/10/98 6,150 6,150
Fontana, Apartment Development
Authority, Citrus Avenue
Apartments Project,
Ser A, RB (A) (B) (C)
2.400%, 09/10/98 1,100 1,100
Fontana, GAF Tax Exempt Bond
Grantor Trust, Ser GA-7, RB
(A) (B) (C)
3.900%, 09/10/98 6,325 6,325
Foothill/Eastern Corridor Agency,
Toll Road Project,
Ser B, RB (A) (B) (C)
2.350%, 09/10/98 1,000 1,000
Foothill/Eastern Corridor Agency,
Toll Road Revenue Authority,
Ser E, RB (A) (B) (C)
2.300%, 09/10/98 7,000 7,000
Freemont, TRAN
4.000%, 07/01/99 7,500 7,518
Fresno, Multi-Family Housing
Authority, Heron Pointe
Project, Ser A, RB (A) (B) (C)
2.550%, 09/10/98 10,225 10,225
Gardenia, TRAN
4.250%, 06/30/99 5,875 5,891
Health Facilities Finance Authority,
Catholic Health Care Project,
Ser A, RB, MBIA (A) (B)
2.350%, 09/10/98 2,800 2,800
- ------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Health Facilities Finance Authority,
Catholic Health Care Project,
Ser B, RB, MBIA (A) (B)
2.350%, 09/10/98 $ 2,000 $ 2,000
Health Facilities Finance Authority,
Catholic Health Care Project,
Ser C, RB, MBIA (A) (B)
2.350%, 09/10/98 1,600 1,600
Health Facilities Finance Authority,
Memorial Health Services
Project, RB (A) (B)
2.600%, 09/10/98 6,500 6,500
Huntington Park, Public Financing
Authority Lease, Parking Project,
Ser A, RB (A) (B) (C)
4.250%, 09/01/99 4,795 4,819
Irvine, Public Facilities &
Infrastructure Authority, Capital
Improvements Project, RB
(A) (B) (C)
2.500%, 09/10/98 2,400 2,400
Irwindale, Industrial Development
Authority, Toys "R" Us Project,
RB (A) (B) (C)
3.425%, 09/10/98 500 500
Kern, Community College
District, COP (A) (B)(C)
3.550%, 12/01/98 26,010 26,010
Kern County, Public Facilities
Project, Ser D, COP (A) (B) (C)
2.350%, 09/10/98 2,400 2,400
Lancaster, Redevelopment Agency
Multi-Family Housing,
Westwood PK Apartments
Project, Ser K, RB (A) (B) (C)
2.250%, 09/10/98 1,000 1,000
Lancaster, Multi-Family Housing
Authority, Household Bank
Project, Ser A, RB (A) (B) (C)
2.750%, 09/10/98 2,700 2,700
Lancaster, Multi-Family Housing
Authority, 20 Street Apartments
Project, Ser C, RB (A) (B) (C)
2.650%, 09/10/98 3,250 3,250
Lancaster, Multi-Family Housing
Authority, The Willow Project,
Ser A, RB (A) (B) (C)
2.750%, 09/10/98 6,000 6,000
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
16
<PAGE>
- --------------------------------------------------------------------------------
- ------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Long Beach, Health Facilities
Authority, Memorial Health
Services Project, RB (A) (B)
2.600%, 09/10/98 $ 7,250 $ 7,250
Los Angeles, Community
Redevelopment Authority,
Central Business District I
Project, TA
5.000%, 11/15/98 12,000 12,028
Los Angeles County, Capital Asset
Leasing Corporation, Equipment
Program, Ser A, RB
5.250%, 12/01/98 4,330 4,345
5.000%, 06/01/99 4,825 4,869
Los Angeles County, COP
Pre-Refunded @ 102 (D)
6.900%, 06/01/99 2,660 2,773
Los Angeles County, Metropolitan
Transportation Authority, Ser A,
RB, MBIA (A) (B)
2.350%, 09/10/98 11,695 11,695
Los Angeles County, Multi-Family
Housing Authority, Malibu
Canyon Apartments, Ser B,
RB (A) (B)
2.600%, 09/10/98 400 400
Los Angeles County, Pension
Obligation, Ser B, RB,
AMBAC (A) (B)
2.250%, 09/10/98 6,700 6,700
Los Angeles County,
Transportation Commission
Authority, RB (C)
3.550%, 02/11/99 5,000 5,000
Los Angeles, Department of Water
& Power Electric Plant, RB
9.000%, 11/15/98 1,270 1,284
Los Angeles, Multi-Family
Housing Authority,
Ser K, RB (A) (B) (C)
2.750%, 09/10/98 22,670 22,670
Los Angeles, Multi-Family
Housing Revenue, Promonade
Towers, RB (A) (B) (C)
2.600%, 09/10/98 2,900 2,900
Los Angeles Redevelopment
Agency, Baldwin Hills Public
Park, RB (A) (B) (C)
2.600%, 09/10/98 7,900 7,900
Los Angeles, Ser A, GO
4.800%, 09/01/98 100 100
- ------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Los Angeles, Ser A, TRAN
4.500%, 06/30/99 $ 5,000 $ 5,033
Los Angeles, Unified School
District Authority, Belmont
Learning Complex Project,
Ser A, RB (A) (B) (C)
2.500%, 09/10/98 10,500 10,500
Los Angeles, Waste Water System,
Ser A, RB Pre-Refunded @ 102 (D)
7.100%, 02/01/99 2,500 2,584
Metropolitan Water District,
Waterworks Project, Ser C,
RB (A) (B)
2.350%, 09/10/98 300 300
Mountain View Los Altos, TRAN
4.000%, 07/01/99 3,000 3,007
Mountain View Santa Clara, GO,
Unified School District, TRAN
4.000%, 07/01/99 2,000 2,005
M-S-R Public Power, San Juan
Project, RB, Ser D (A) (B)
2.600%, 09/10/98 5,000 5,000
Newport Beach, Health Facilities,
Hoag Memorial Presbyterian
Hospital Project, RB (A) (B) (C)
3.250%, 09/01/98 3,000 3,000
Newport Beach, Water Services,
Capital Improvement Project,
RB, AMBAC
3.600%, 08/01/99 1,025 1,025
Oakland, Children Hospital
Medical Center Project,
Ser B, RB (A) (B) (C)
2.300%, 09/10/98 1,600 1,600
Oakland, Liquidity Facilities
Authority, Revenue Assessment
Bay Area Government Project,
RB (A) (B) (C)
3.200%, 09/10/98 2,070 2,070
Ontario, Multi-Family Housing
Authority, Residential Central
Park Project, Ser A, RB (A) (B) (C)
2.250%, 09/10/98 8,100 8,100
Orange County, Apartment
Development, Harbor Pointe
Project, Ser D, RB (A) (B) (C)
2.600%, 09/10/98 4,000 4,000
Orange County, Apartment
Development, Villas La Paz,
Ser F, RB, FNMA (A) (B) (E)
2.550%, 09/10/98 3,000 3,000
17
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
SEI TAX EXEMPT TRUST -- AUGUST 31, 1998
CALIFORNIA TAX EXEMPT PORTFOLIO--CONTINUED
- ------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Orange County, Apartment
Development Authority,
Radnor/Aragon Corporation
Project, RB (A) (B) (C)
3.325%, 09/10/98 $3,400 $ 3,400
Oxnard, Community
Redevelopment Agency
Authority, Channel Islands
Business Project, RB (A) (B) (C)
3.575%, 09/01/98 4,685 4,685
Palm Springs, Community
Redevelopment Agency Authority,
Headquarters Hotel-1 Project,
COP (A) (B) (C)
2.600%, 09/01/98 2,070 2,070
Palm Springs, Community
Redevelopment Agency Authority,
Headquarters Hotel-4 Project,
COP (A) (B) (C)
2.600%, 09/10/98 2,800 2,800
Palm Springs, Community
Redevelopment Agency Authority,
Headquarters Hotel-6 Project,
COP (A) (B) (C)
2.600%, 09/10/98 2,100 2,100
Panama-Buena Vista, Union School
District Authority, Capital
Improvements Finance Project,
COP (A) (B) (C)
3.450%, 09/10/98 4,500 4,500
Pasadena, Historical Rehabilitation
Authority, Dodsworth Building
Project, RB (A) (B) (C)
2.800%, 09/10/98 4,000 4,000
Pasadena, Rose Bowl Improvements
Project, COP (A) (B) (C)
2.500%, 09/10/98 9,780 9,780
Pico Riveria, Redevelopment Agency,
Crossroads Plaza Project,
RB (A) (B) (C)
2.750%, 09/10/98 7,000 7,000
Riverside County, Housing
Authority, Mountain View
Apartments Project, Ser A,
RB (A) (B) (C)
2.350%, 09/10/98 3,775 3,775
Riverside County, Multi-Family
Housing Authority, Countrywood
& IA Apartments Project, Ser E,
RB (A) (B) (C)
2.750%, 09/10/98 2,750 2,750
- ------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Riverside County, Multi-Family
Housing Authority, De Anza
Villas Project, RB (A) (B) (C)
2.850%, 09/10/98 $3,080 $ 3,080
Riverside County, Multi-Family
Housing Authority, Polk
Apartments Project, Ser O,
RB (A) (B) (C)
3.000%, 09/10/98 4,890 4,890
Riverside County, Multi-Family
Housing Authority, Woodcreek
Project, Ser D, RB (A) (B)
2.200%, 09/10/98 2,600 2,600
Riverside County, Public Facilities
Authority, Ser B, RB (A) (B)(C)
2.250%, 09/01/98 1,900 1,900
San Bernadino County, County
Center Refunding Project,
COP (A) (B) (C)
2.300%, 09/10/98 6,000 6,000
San Bernadino County, Industrial
Development Authority,
Sandpiper Investments Project,
RB (A) (B) (C)
3.950%, 09/10/98 3,100 3,100
San Bernadino County, Multi-Family
Housing, Alta Loma Heritage
Project, Ser A, RB (A) (B) (C)
2.650%, 09/10/98 2,264 2,264
San Bernadino County, Multi-Family
Housing Authority, Mountain
View Project, RB (A) (B) (C)
2.650%, 09/10/98 1,010 1,010
San Bernadino County, Multi-Family
Housing, Gold West Apartments
Project, Ser A, RB (A) (B) (C)
2.650%, 09/10/98 500 500
San Bernadino County, Multi-Family
Housing, Indian Knoll Apartment
Project, Ser A, RB (A) (B) (C)
2.500%, 09/10/98 3,300 3,300
San Bernadino County, Multi-Family
Housing, Mountain View
Apartments, RB (A) (B) (C)
2.650%, 09/10/98 1,100 1,100
San Bernadino County, Multi-Family
Housing, Parkview Place,
Ser A, RB (A) (B) (C)
2.650%, 09/10/98 5,220 5,220
San Bernadino, Multi-Family
Housing, Village Crossing Project,
Ser A, RB (A) (B) (C)
2.650%, 09/10/98 3,700 3,700
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
18
<PAGE>
- --------------------------------------------------------------------------------
- ------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
San Diego, Multi-Family Housing
Authority, La Serena Apartments
Project, RB (A) (B) (C)
2.250%, 09/10/98 $ 3,400 $ 3,400
San Diego, Multi-Family Housing
Authority, La Jolla Point Apartment
Project, RB (A) (B) (C)
2.250%, 09/10/98 3,500 3,500
San Diego, Multi-Family Housing
Authority, University Town
Center Apartments Project,
RB (A) (B) (C)
2.550%, 09/10/98 1,000 1,000
San Diego, Multi-Family Housing,
La Cima Apartments Project,
Ser K, RB (A) (B) (C)
2.400%, 09/10/98 1,550 1,550
San Dimas, Industrial Development
Authority, French Company
Project, RB (A) (B) (C)
2.400%, 09/10/98 3,000 3,000
San Francisco, City and County
Multi-Family Housing Authority,
737 Post Project, Ser D,
RB (A) (B) (C)
2.600%, 09/10/98 10,000 10,000
San Francisco, City and County
Redevelopment Authority, Fillmore
Housing Center Project,
Ser A-1, RB (A) (B) (C)
2.700%, 09/10/98 4,500 4,500
San Jose, Multi-Family Housing
Authority, Kimberly Woods
Apartments Project, RB (A) (B) (C)
2.250%, 09/10/98 1,000 1,000
San Jose, Multi-Family Housing
Authority, Timberwood
Apartments Project, RB (A) (B) (C)
2.550%, 09/10/98 3,060 3,060
San Leandro, Multi-Family Housing
Authority, Parkside Common
Apartments Project,
RB (A) (B)
2.200%, 09/10/98 3,000 3,000
San Marcos, Industrial Development
Authority, Amistar Project,
RB (A) (B) (C)
3.950%, 09/10/98 4,500 4,500
- ------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Santa Anna, Multi-Family Housing
Authority, Harbor Pointe
Apartments Project, Ser A,
RB (A) (B) (C)
2.250%, 09/10/98 $ 1,620 $ 1,620
Santa Clara County, Financing
Lease Authority, Replacement
Project, Ser B, RB (A) (B) (C)
2.550%, 09/10/98 5,400 5,400
Santa Clara County, Multi-Family
Housing Authority, Briarwood
Apartments Project,
Ser B, RB (A) (B)
2.550%, 09/10/98 2,000 2,000
Santa Clara County, TRAN
4.750%, 10/01/98 1,000 1,001
Santa Clara, Electric Revenue,
Ser A, RB (A) (B) (C)
2.300%, 09/10/98 760 760
Santa Clara, Electric Revenue,
Ser B, RB (A) (B) (C)
2.300%, 09/10/98 900 900
Santa Paula, Santa Paula
School District, TRAN
4.000%, 07/01/99 2,000 2,005
Simi Valley, Community
Development Agency Multi-Family
Housing, Casden Indian Oaks
Project, Ser A, RB (A) (B) (C)
2.600%, 09/10/98 1,000 1,000
Simi Valley, Industrial & Economic
Development Authority,
Wambold Furniture Project,
RB (A) (B) (C)
3.650%, 09/10/98 2,400 2,400
Simi Valley, Multi-Family Housing
Authority, Lincoln Wood Ranch
Project, RB (A) (B) (C)
2.500%, 09/10/98 15,500 15,500
Simi Valley, Multi-Family Housing
Authority, Ser A, RB (A) (B) (C)
2.600%, 09/10/98 2,300 2,300
Southern California, Public Power
Authority, Palo Verde Project C,
RB, AMBAC (A) (B)
2.250%, 09/10/98 6,000 6,000
State Educational Facility Authority,
Claremont McKenna Project,
RB (A) (B)
2.500%, 09/10/98 10,000 10,000
19
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
SEI TAX EXEMPT TRUST -- AUGUST 31, 1998
CALIFORNIA TAX EXEMPT PORTFOLIO--CONCLUDED
- ------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Statewide, Community
Development Authority,
Memorial Health Services
Project, RB (A) (B)
2.600%, 09/01/98 $6,400 $ 6,400
University Resh Facilities,
Ser B, RB
7.500%, 09/01/98 1,465 1,465
Vallejo, Unified School
District, TRAN
4.250%, 10/22/98 5,750 5,753
Westminster, Redevelopment
Authority, Commercial
Redevelopment Project,
Number 1, RB, AMBAC (A) (B)
2.700%, 09/10/98 3,900 3,900
-------
522,296
-------
PUERTO RICO -- 0.3%
Puerto Rico, Industrial Medicine &
Environmental Pollution Control
Financing Authority, Intel
Project, Ser A, RB (A) (B) (C)
4.000%, 09/01/13 1,455 1,455
Puerto Rico, Pollution Control
Financing Authority, Intel
Project, Ser B, RB (A) (B)
3.700%, 12/01/98 100 100
-------
1,555
-------
Total Municipal Bonds
(Cost $523,851) 523,851
-------
Total Investments -- 102.0%
(Cost $523,851) 523,851
-------
Other Assets and Liabilities, Net -- (2.0%) (10,303)
-------
- ------------------------------------------------------------
VALUE (000)
- ------------------------------------------------------------
NET ASSETS:
Portfolio Shares of Class A (unlimited
authorization -- no par value) based
on 39,496,151 outstanding shares of
beneficial interest $ 39,497
Portfolio Shares of CNI Class (unlimited
authorization -- no par value) based
on 474,103,943 outstanding shares of
beneficial interest 474,103
Distribution in excess of net
investment income (2)
Accumulated net realized loss
on investments (50)
--------
TOTAL NET ASSETS -- 100.0% $513,548
========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE -- CLASS A $1.00
========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE --
CNI CLASS $1.00
========
AMBAC AMERICAN MUNICIPAL BOND ASSURANCE COMPANY
BAN BOND ANTICIPATION NOTE
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
TA TAX ALLOCATION
TRAN TAX & REVENUE ANTICIPATION NOTE
USD UNIFIED SCHOOL DISTRICT
(A) FLOATING RATE SECURITY -- THE RATE REFLECTED ON THE STATEMENT OF NET ASSETS
IS THE RATE IN EFFECT ON AUGUST 31, 1998.
(B) PUT AND DEMAND FEATURE -- THE DATE REPORTED ON THE STATEMENT OF NET ASSETS
IS THE EARLIER OF THE MATURITY DATE OR THE PUT 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.
(E) SECURITIES COLLATERALIZED UNDER AN AGREEMENT FROM FNMA.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
20
<PAGE>
- --------------------------------------------------------------------------------
INSTITUTIONAL TAX FREE PORTFOLIO
- ------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
MUNICIPAL BONDS -- 105.6%
ALABAMA -- 1.2%
Birmingham Medical Clinic Revenue,
St. Martins In The Pines Project,
Ser 89, RB (A) (B) (C)
3.350%, 09/10/98 $2,795 $ 2,795
Indian Springs Village, Educational
Building Authority, Indian Springs
School Project, RB (A) (B) (C)
3.420%, 09/10/98 5,000 5,000
Greystone, Tax Exempt Certificate
Trust Authority, Senior Certificate
of Beneficial Ownership
Project, RB (A) (B) (C)
3.400%, 09/10/98 2,135 2,135
Russelville Industrial Development
Revenue, Clark Pulley Project,
Ser 94, RB (A) (B) (C)
3.350%, 09/10/98 1,675 1,675
-------
11,605
-------
ALASKA -- 0.4%
Alaska Industrial Development
Authority, Safeway Project,
RB (A) (B) (C)
3.800%, 12/01/98 4,130 4,130
-------
ARIZONA -- 1.4%
Chandler County, Industrial
Development Authority, Parsons
Municipal Service Inc., RB
(A) (B) (C)
3.550%, 09/10/98 4,225 4,225
Maricopa County, Industrial
Development Authority, Arcadia
Vista Apartments Project,
Ser A, RB (A) (B) (C)
3.410%, 09/10/98 4,750 4,750
Maricopa County, Industrial
Development Authority, McLane
Company Project, RB (A) (B) (C)
3.700%, 09/10/98 720 720
Tuscon, Industrial Development
Authority, Tuscon City Center
Parking Project, Ser A, RB
(A) (B) (C)
3.425%, 09/10/98 3,500 3,500
-------
13,195
-------
ARKANSAS -- 0.0%
Greystone, Tax Exempt Certificate
Trust Authority, Senior Certificate
of Beneficial Ownership
Project, RB (A) (B) (C)
3.400%, 09/10/98 90 90
-------
- ------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
CALIFORNIA -- 2.4%
California State, Higher Education
Loan Authority, Student Loan
Refunding, RB (A)(B)(C)
3.800%, 06/01/99 $3,325 $ 3,325
California State, Higher Education
Loan Authority, Student Loan
Revenue, Ser 87-A, RB (A) (B)
3.650%, 07/01/99 7,500 7,500
Kern, Community College
District, COP (A) (B) (C)
3.550%, 09/10/98 5,700 5,700
Los Angeles, Community
Redevelopment Authority, Central
Business District I Project, TA
5.000%, 11/15/98 5,625 5,637
-------
22,162
-------
COLORADO -- 2.4%
City of Idaho Springs, Safeway
Project, Ser 93, RB (A) (B) (C)
3.800%, 12/01/98 1,950 1,950
Colorado State, Housing Finance
Authority, Cambray Park Project,
RB (A) (B) (C)
3.400%, 09/10/98 1,050 1,050
Colorado State, Housing Finance
Authority, Greenwood Project,
Ser D, RB (A) (B)
3.300%, 09/10/98 1,700 1,700
Colorado State, Housing Finance
Authority, Woodstream Project,
RB (A) (B) (C)
3.400%, 09/10/98 1,860 1,860
Colorado State, Master Lease
Purchase Agreement, COP, MBIA
5.000%, 11/01/98 1,005 1,007
El Paso, USA Hockey, Ser 96,
RB (A) (B) (C)
3.350%, 09/10/98 3,225 3,225
Englewood, Industrial Development
Revenue, Safeway Incorporated
Project, RB (A) (B) (C)
3.800%, 12/01/98 2,315 2,315
Jefferson County, Industrial
Development Revenue, Kinder
Care Centers Project,
Ser C, RB (A) (B)
3.350%, 09/10/98 1,700 1,700
Panorama Metropolitan District,
Ser B, RB (A) (B) (C)
4.000%, 12/01/98 2,425 2,425
State Health Facilities Authority,
Rocky Mountain Project,
RB (A) (B) (C)
3.350%, 09/10/98 1,875 1,875
21
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
SEI TAX EXEMPT TRUST -- AUGUST 31, 1998
INSTITUTIONAL TAX FREE PORTFOLIO--CONTINUED
- ------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Summit County, Recreational
Facilities Authority, Copper
Mountain Project, RB (A) (B) (C)
3.650%, 09/10/98 $ 3,000 $ 3,000
-------
22,107
-------
DELAWARE -- 0.8%
Economic Development Authority,
Commercial Development,
Congoleum Project,
RB (A) (B) (C)
3.400%, 02/01/99 1,000 1,000
Sussex County, Economic
Development Authority, Route
113 Limited Partnership
Project, RB (A) (B) (C)
3.600%, 09/01/98 6,000 6,000
-------
7,000
-------
DISTRICT OF COLUMBIA -- 0.7%
District of Columbia, Abraham
and Laura Lisner Project,
RB (A) (B) (C)
3.300%, 07/01/22 800 800
District of Columbia, Ser A, GO,
AMBAC, Pre-Refunded @ 102 (D)
7.500%, 06/01/99 5,000 5,227
District of Columbia, Ser B-3,
RB (A) (B) (C)
3.400%, 09/01/98 100 100
-------
6,127
-------
FLORIDA -- 5.6%
Boca Raton, Industrial Development
Authority, Parking Garage Project,
Ser 84-A, RB (A) (B) (C)
3.675%, 09/10/98 7,950 7,950
Broward County, Multi-Family
Housing, Bond Sanctuary
Apartments Project, RB (A) (B) (C)
3.500%, 09/10/98 15,900 15,900
Greystone, Tax Exempt Certificate
Trust, Senior Certificate
of Beneficial Ownership
Project, RB (A) (B) (C)
3.400%, 09/10/98 136 136
Highlands County, Health Facility
Authority, Adventist/Sunbelt
Project, Ser A, RB (A) (B)
3.300%, 09/10/98 15,000 15,000
- ------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Housing Finance Agency, Falls of
Venice Project, RB (A) (B) (C)
3.300%, 09/10/98 $3,300 $ 3,300
Jacksonville, Industrial Development,
University of Florida Health
Science Center Project,
Ser 89, RB (A) (B) (C)
3.450%, 09/10/98 1,000 1,000
Lake Bernadette Community
Development, Special
Assessment Revenue Project,
Ser B, RB (A) (B) (C)
3.400%, 09/10/98 955 955
Lee County, Industrial Development
Authority, Christian &
Missionary-Shell Point Village
Project, RB (A) (B) (C)
3.370%, 09/10/98 450 450
Orange County, Education
Facilities Authority, Rollins
College Project, RB (A) (B) (C)
3.350%, 09/10/98 4,000 4,000
Orange County, Multi-Family
Housing Authority, Post Fountains
Project, RB, FNMA (A) (B) (E)
3.300%, 09/10/98 1,900 1,900
Pasco City, Multi-Family Housing
Finance Authority, Carlton Arms
of Magnolin Valley Project, Ser 85,
RB (A) (B) (C)
3.470%, 09/10/98 2,000 2,000
-------
52,591
-------
GEORGIA -- 11.2%
Albany-Dougherty County, Hospital
Authority Revenue, Phoebe Putney
Memorial Hospital Project,
Ser 1996, RB, AMBAC (A) (B) (C)
3.350%, 09/10/98 1,900 1,900
Athens, Multi-Family Housing
Authority, Georgian Apartments
Project, RB (A) (B) (C)
3.625%, 09/10/98 1,400 1,400
Brooks County, Development
Revenue Authority, Presbyterian
Home Quitman Inc. Project,
RB (A) (B) (C)
3.350%, 09/10/98 5,000 5,000
Cherokee County, Industrial
Development Revenue Authority,
Seaboard Farms Project,
RB (A) (B) (C)
3.450%, 09/10/98 3,000 3,000
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
22
<PAGE>
- --------------------------------------------------------------------------------
- ------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Clayton County, Hospital Revenue
Authority, Southern Regional
Medical Center Project,
Ser B, RB (A) (B) (C)
3.350%, 09/10/98 $3,875 $ 3,875
Clayton County, Multi-Family
Housing Authority, Rainwood
Development Project,
RB (A) (B) (C)
3.370%, 09/10/98 2,700 2,700
Cobb County, Industrial
Development Authority,
Institute Nuclear Power
Operations Project, RB (A) (B) (C)
3.350%, 09/10/98 2,805 2,805
Cobb County, Multi-Family Housing
Authority, Tibairen Associates
Project, Ser 85-D, RB (A) (B) (C)
3.400%, 09/10/98 8,600 8,600
Cobb County, Rhodes Home
Project, Multi-Family Housing
Authority, RB (A) (B) (C)
3.350%, 09/10/98 915 915
Conyers-Rockdale-Big Haynes
Impoundment Authority,
RB (A) (B) (C)
4.000%, 12/01/98 5,400 5,406
De Kalb County, Industrial
Development Authority, Dart
Container Corporation,
RB (A) (B) (C)
3.750%, 11/15/98 900 900
DeKalb County, Industrial
Development Authority,
Weyerhaeuser Project,
RB (A) (B)
3.358%, 09/10/98 3,500 3,500
De Kalb County, Multi-Family
Housing Authority, Post Walk
Project, RB (A) (B) (C)
3.300%, 09/10/98 1,700 1,700
De Kalb County, Multi-Family
Housing Authority,
Terrace Club Project,
Ser A, RB (A) (B) (C)
3.400%, 09/10/98 1,000 1,000
De Kalb County, Multi-Family
Housing Authority, Terrace Club
Project, Ser 93-B, RB,
FNMA (A) (B) (C) (E)
3.473%, 09/10/98 4,430 4,430
Downtown Athens, Housing
Development Authority, Georgian
Apartments Association,
RB (A) (B) (C)
3.751%, 09/10/98 1,000 1,000
- ------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Federal Paper Board, Tax Exempt
Bond Grantor Trust, RB (A) (B) (C)
4.150%, 09/10/98 $7,200 $ 7,200
Fulton County, Arthritis Foundation
Project, RB (A) (B) (C)
3.350%, 09/10/98 2,000 2,000
Fulton County, Development
Revenue Authority, Epstein
School Project, RB (A) (B) (C)
3.350%, 09/10/98 2,000 2,000
Fulton County, Development
Revenue Authority, Holy Innocents
School Project, RB (A) (B) (C)
3.350%, 09/10/98 2,500 2,500
Fulton County, Development Revenue
Authority, Morehouse School of
Medicine Project, RB (A) (B) (C)
3.350%, 09/10/98 2,400 2,400
Fulton County, Industrial
Development Authority, ADP
Corporation Project, RB (A) (B)
3.550%, 09/10/98 2,765 2,765
Georgia State, GO
6.750%, 09/01/98 1,000 1,000
Greystone, Tax Exempt Certificate
Trust Authority, Senior
Certificate of Beneficial Ownership
Project, RB (A) (B) (C)
3.400%, 09/10/98 456 456
Gwinnett County, Development
Authority, Wesleyan School
Project, RB (A) (B) (C)
3.350%, 09/10/98 800 800
Gwinnett County, Development
Revenue Authority, Greater
Atlanta Christian School Inc.
Project, RB (A) (B) (C)
3.350%, 09/10/98 6,500 6,500
Gwinnett County, Multi-Family
Housing Authority, Post Chase
Project, RB, FNMA (A) (B) (C)
3.300%, 09/10/98 2,700 2,700
Marietta, Housing Finance Authority,
Multi-Family Housing, Falls at
Bells Ferry Project, RB (A) (B)
3.950%, 01/15/99 5,560 5,565
Marietta, Housing Finance Authority,
Multi-Family Housing, Franklin
Walk Apartments Project,
RB (A) (B) (C)
3.325%, 09/10/98 3,540 3,540
Roswell, Multi-Family Housing
Revenue, Belcourt Limited Project,
RB (A) (B) (C)
3.550%, 09/10/98 9,000 9,000
23
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
SEI TAX EXEMPT TRUST -- AUGUST 31, 1998
INSTITUTIONAL TAX FREE PORTFOLIO--CONTINUED
- ------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Smyrna, Multi-Family Housing
Authority, F&M Villages Project,
RB (A) (B)
3.300%, 09/10/98 $3,800 $ 3,800
Smyrna, Multi-Family Housing
Authority, Gardens Post Village
Project, RB (A) (B)
3.300%, 09/10/98 2,700 2,700
Thomasville, Hospital Revenue
Authority, J.D. Archbold Project,
RB (A) (B) (C)
3.350%, 09/10/98 1,200 1,200
--------
104,257
--------
HAWAII -- 0.1%
Hawaii State, Department of Budget
& Finance Authority, Kuakini
Medical Center Project,
RB (A) (B) (C)
3.501%, 09/01/98 800 800
--------
IDAHO -- 1.3%
Boise States, University Revenue
Authority, Engineering
Technology Project, RB (A) (B) (C)
3.550%, 09/10/98 3,500 3,500
Nez Pierce County, Pollution
Control Revenue, Potlatch
Project, RB, (A) (B) (C)
3.250%, 09/10/98 1,000 1,000
Twin Falls, Urban Renewal Agency
Tax Increment Authority,
Allocation Project, Ser A,
RB (A) (B) (C)
3.500%, 09/10/98 7,675 7,675
--------
12,175
--------
ILLINOIS -- 6.7%
Cook County, Ser C, GO, FGIC
5.000%, 11/15/98 4,000 4,011
Development Finance Authority,
La Salle Foundation Project,
RB (A) (B) (C)
3.250%, 09/10/98 1,440 1,440
Development Finance Authority,
Wbez Alliance Project, RB (A) (B)
3.250%, 09/10/98 1,000 1,000
Department of Finance Revenue
Authority, Casa Central Padres
Project, RB (A) (B) (C)
3.450%, 09/10/98 3,000 3,000
Greystone, Tax Exempt Certificate
Trust, Senior Certificate
of Beneficial Ownership
Project, RB (A) (B) (C)
3.400%, 09/10/98 5,250 5,250
- ------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Illinois State, Development Finance
Authority, Catholic Charities
Housing Project, Ser A,
RB (A) (B) (C)
3.250%, 09/10/98 $ 6,000 $ 6,000
Illinois State, Development Finance
Authority, Rest Haven Illinan
Project, RB (A) (B) (C)
3.250%, 09/10/98 2,000 2,000
Illinois State, Health Facilities
Authority, Pekin Memorial
Hospital Project, RB (A) (B) (C)
3.330%, 09/10/98 3,500 3,500
Illinois State, Health Facilities
Authority, Pekin Memorial
Hospital Project, Ser C,
RB (A) (B) (C)
3.330%, 09/10/98 3,400 3,400
Kane County, School District
No. 131, Aurora East Side
Project, TAW
4.150%, 09/30/98 2,000 2,001
Mundelein, Industrial Development
Authority, 1200 Town Line Road
Project, RB (A) (B) (C)
3.250%, 09/10/98 1,300 1,300
Northwest Mutual Life Tax Exempt
Mortgage Trust, RB (A) (B) (C)
4.402%, 02/15/99 210 210
Orland Hills Mortgage Authority,
Multi-Family Housing,
Ser 88-A, RB (A) (B) (C)
3.250%, 09/10/98 2,000 2,000
Paxton, Industrial Development
Authority, Merck & Aircoil
Project, RB (A) (B) (C)
3.750%, 09/10/98 900 900
Rural Board Banking Authority,
Public Projects, Construction
Notes, RB
4.500%, 03/15/99 13,000 13,057
Saint Clair County, Industrial
Building Authority, Winchester
Apartments Project, Ser 94,
RB (A) (B)
3.500%, 09/10/98 8,000 8,000
Springfield, Multi-Family Housing
Authority, Oak Center Limited
Project, RB (A) (B)
3.450%, 09/10/98 4,900 4,900
-------
61,969
-------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
24
<PAGE>
- --------------------------------------------------------------------------------
- ------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
INDIANA -- 12.0%
Carmel Clay, TAW
4.100%, 12/31/98 $ 9,000 $ 9,006
Clark-Pleasant, TAN
4.000%, 12/31/98 3,800 3,802
Concord, Community Schools
Project, TAW
4.250%, 12/31/98 4,355 4,359
East Allen County Schools, TAW
3.800%, 12/31/98 4,000 4,001
East Chicago City Schools Authority,
Center High School Building
Project, Pre-Refunded @ 100 (D)
11.750%, 02/01/99 1,955 2,018
Fort Wayne, Industrial Economic
Development Authority, Avery
International Project,
RB (A) (B) (C)
3.475%, 09/10/98 3,750 3,750
GAF Tax Exempt Bond Grantor Trust,
Ser A, RB (A) (B) (C)
4.350%, 10/01/98 2,520 2,520
Gary, Environmental Improvement
Authority, U.S. Steel Corporation
Project, RB (A) (B) (C)
3.550%, 09/15/98 3,400 3,400
Greystone, Tax Exempt Certificate
Trust, Senior Certificate
of Beneficial Ownership
Project, RB (A) (B) (C)
3.400%, 09/10/98 5,530 5,530
Hammond Advance Funding
Project Notes, Ser A-2, GO
4.300%, 01/07/99 6,500 6,511
Indiana State, GO
4.000%, 01/20/99 11,000 11,008
Lake Central, School Authority,
TAW
3.750%, 12/31/98 3,000 3,000
Lawrence Township, Metropolitan
School District, TAW
3.800%, 12/31/98 4,750 4,752
Michigan City, Economic
Development Authority, Marley
Company Project, Ser 84,
RB (A) (B) (C)
3.473%, 09/10/98 2,750 2,750
Michigan City, TAW
4.250%, 12/31/98 3,000 3,003
Middlebury, TAW
4.000%, 12/31/98 1,700 1,701
Muncie, Community Schools, TAW
4.000%, 12/31/98 3,000 3,003
Northwest Mutual Life Tax Exempt
Mortgage Trust, Project, RB (A) (B) (C)
4.500%, 02/15/99 24 24
- ------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Penn Harris, Madison School
Corporation, TAW
4.000%, 12/31/98 $5,000 $ 5,003
Portage Township Schools
Project, TAN
4.150%, 12/31/98 2,500 2,504
Residential Apartments, Portfolio
Certificate Trust Ser 96A,
Ser A, RB (A) (B) (C)
3.400%, 09/10/98 12,000 12,000
Richmond, Community Schools
Authority, TAW
4.100%, 12/31/98 3,000 3,003
South Bend, Waterworks Revenue
Authority, RB, FSA
4.350%, 01/01/99 1,120 1,123
Southwest Allen County,
Metropolitan School
District, TAW
4.000%, 12/31/98 5,870 5,876
St. Joseph County, Industrial
Economic Development, South
Bend Medical Foundation,
RB (A) (B) (C)
3.400%, 09/10/98 3,600 3,600
Wayne Township, Metropolitan
School District, TAN
3.900%, 12/31/98 4,000 4,001
--------
111,248
--------
IOWA -- 1.5%
Cedar Rapids, Pollution Control
Revenue, Electric and Power
Project, RB (A) (B)
3.300%, 09/10/98 1,000 1,000
Chillicothe, Pollution Control
Authority, Electric Light and
Power Project, RB (A) (B) (C)
3.300%, 09/10/98 3,100 3,100
Iowa State, Finance Authority
Health Care Revenue, Wesley
Retirement Services Project,
RB (A) (B) (C)
3.400%, 09/10/98 1,000 1,000
Iowa State, Financial Revenue
Authority, Burlington Medical
Center Project, RB (A) (B)
3.400%, 09/10/98 7,500 7,500
Iowa State, Higher Education
Authority, St. Ambrose University
Project, RB (A) (B) (C)
3.400%, 09/10/98 1,075 1,075
--------
13,675
--------
25
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
SEI TAX EXEMPT TRUST -- AUGUST 31, 1998
INSTITUTIONAL TAX FREE PORTFOLIO--CONTINUED
- ------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
KANSAS -- 0.7%
City of Manhattan, Ser 2, TAN
3.750%, 01/15/99 $ 2,900 $ 2,899
Greystone, Tax Exempt Certificate
Trust, Senior Certificate
of Beneficial Ownership
Project, RB (A) (B) (C)
3.400%, 09/10/98 68 68
Wamego, Pollution Control Revenue
Authority, Utilicorp United
Project, RB (A) (B) (C)
3.205%, 09/10/98 2,200 2,200
Wichita, Pollution Control, CIC
Industries Incorporated,
RB (A) (B) (C)
3.726%, 09/10/98 1,590 1,590
-------
6,757
-------
KENTUCKY -- 4.5%
Covington, Industrial Building
Revenue, Atkins & Pearce
Incorporated, Ser 95,
RB (A) (B) (C)
3.300%, 09/10/98 1,850 1,850
Georgetown, Educational
Institution Improvement,
Georgetown College Project,
RB (A) (B) (C)
3.350%, 09/10/98 900 900
Hardin County, Water Revenue
Authority, Water District No.
001 Project, RB (A) (B) (C)
3.350%, 09/10/98 3,200 3,200
Kentucky State, Economic
Development Finance
Authority, Pooled Hospital Loan
Project, RB (A) (B)
3.450%, 09/10/98 12,000 12,000
Kentucky State, Economic
Development Financial Authority,
Goodwill Industry Kentucky
Center Inc. Project, RB (A) (B) (C)
3.350%, 09/10/98 1,800 1,800
Kentucky State, TRAN
3.660%, 06/30/99 19,999 19,999
Newport City, Multi-Family
Housing Revenue, RB (A) (B)
3.900%, 12/01/98 1,710 1,710
-------
41,459
-------
LOUISIANA -- 0.3%
Greystone, Tax Exempt Certificate
Trust, Senior Certificate
of Beneficial Ownership
Project, RB (A) (B) (C)
3.400%, 09/10/98 3,220 3,220
-------
- ------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
MAINE -- 0.1%
Portland, Industrial Development
Revenue, W.W. Grainger Project,
Ser 85, RB (A) (B)
3.200%, 09/10/98 $1,315 $ 1,315
-------
MARYLAND -- 1.6%
Annapolis Forest Gemini Facilities,
RB (A) (B) (C)
3.550%, 09/10/98 2,300 2,300
Anne Arundel County, Pollution
Control Revenue Authority,
Baltimore Gas & Electric Project,
Ser 84, RB (A) (B)
3.650%, 07/01/99 2,500 2,500
Greystone, Tax Exempt Certificate
Trust, Senior Certificate
of Beneficial Ownership
Project, RB (A) (B) (C)
3.400%, 09/10/98 3,325 3,325
Health & Higher Education
Facilities Authority, Kennedy
Krieger, RB (A) (B) (C)
3.300%, 09/10/98 1,100 1,100
Howard County, Multi-Family
Housing Authority, Sherwood
Crossing Project, RB (A) (B) (C)
3.850%, 12/01/98 3,300 3,300
Hyattsville, Industrial Development
Authority, Safeway Incorporated
Project, RB (A) (B) (C)
3.800%, 12/01/98 2,170 2,170
-------
14,695
-------
MASSACHUSETTS -- 0.7%
Clinton, GO
4.150%, 11/20/98 5,000 5,005
New England, Student Loan
Revenue Authority, Senior Issue
Project, Ser A, RB
6.000%, 09/01/98 1,900 1,900
-------
6,905
-------
MICHIGAN -- 1.1%
Birmingham, Economic
Development Corporation,
Brown Street Project,
Ser 83, RB (A) (B) (C)
3.726%, 09/10/98 1,160 1,160
Farmington Hills, Economic
Development Authority,
Brookfield Building Association
Project, RB (A) (B) (C)
3.550%, 09/10/98 1,915 1,915
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
26
<PAGE>
- --------------------------------------------------------------------------------
- ------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
McDonald Tax-Exempt Mortgage
Trust #1, RB (A) (B) (C)
4.100%, 04/15/99 $ 442 $ 442
Michigan State, Job Development
Authority Kentwood Residence,
RB (A) (B) (C)
3.600%, 09/01/98 2,400 2,400
Northville Township, Economic
Development Authority, Thrifty
Northville Project, RB (A) (B) (C)
3.325%, 09/10/98 1,500 1,500
Northwest Mutual Life Tax-Exempt
Mortgage Trust, RB (A) (B) (C)
4.402%, 02/15/99 59 59
Plymouth Township, Economic
Development Revenue, Key
International Project,
RB (A) (B) (C)
3.550%, 09/10/98 2,500 2,500
--------
9,976
--------
MINNESOTA -- 4.8%
Bloomington Commercial
Development, ATS II Project,
RB (A) (B) (C)
3.740%, 09/10/98 3,730 3,730
Bloomington, Multi-Family
Housing, Revenue Refunding,
Hampshire Apartments Project,
RB (A) (B)
3.300%, 09/10/98 15,000 15,000
Brooklyn, Center Development
Project, Brookdale Office Park,
Ser 84, RB (A) (B) (C)
3.410%, 09/10/98 2,860 2,860
Minneapolis, Ser A, RB (A) (B) (C)
3.300%, 09/10/98 12,300 12,300
Minneapolis, Various Purpose,
Ser 95-B, GO (A) (B) (C)
3.300%, 09/10/98 2,125 2,125
New Brighton, Commercial
Development Revenue,
Business Center, RB (A) (B)
3.560%, 09/10/98 2,675 2,675
New Brighton, Commercial
Revenue, Venture I Project,
Ser A, RB (A) (B)
3.560%, 09/10/98 1,655 1,655
Plymouth, Industrial Development
Revenue, Banner Engineering
Project, RB (A) (B) (C)
3.400%, 09/10/98 1,800 1,800
- ------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Roseville, Multi-Family Housing
Revenue, Rosepointe II Project,
RB (A) (B) (C)
3.410%, 09/10/98 $ 1,530 $ 1,530
Saint Paul, Housing &
Redevelopment Authority,
Lutheran Social Service Project,
RB (A) (B) (C)
3.378%, 09/10/98 625 625
--------
44,300
--------
MISSISSIPPI -- 0.1%
Desoto County, Industrial
Development Revenue,
American Soap Company Project,
RB (A) (B) (C)
5.015%, 09/10/98 900 900
--------
MISSOURI -- 5.2%
Howell County, Industrial
Development Authority,
Safeway Incorporated Project,
RB (A) (B) (C)
3.700%, 02/01/99 3,565 3,565
Jackson County, Industrial
Development Authority,
YMCA Greater Kansas Project,
Ser A, RB (A) (B) (C)
3.450%, 09/01/98 3,100 3,100
Macon City, Industrial
Development Authority,
Health Care Realty Macon
Project, RB (A) (B) (C)
3.680%, 09/10/98 2,140 2,140
Missouri State, Import & Energy
Resources Authority, Pollution
Control Resources Union Electric
Co. Project, RB (A) (B) (C)
3.750%, 06/01/99 9,000 9,000
Osage Beach, Industrial
Development Authority, Health
Care Realty Project, RB (A) (B) (C)
3.680%, 09/10/98 2,065 2,065
Saint Louis County, Industrial
Development Authority, Schnuck
Markets Kirkwood Incorporated,
RB (A) (B) (C)
3.473%, 09/10/98 3,350 3,350
Saint Louis, Grantor Trust,
Ser 96-A, COP, RB (A) (B) (C)
3.473%, 09/10/98 13,835 13,835
27
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
SEI TAX EXEMPT TRUST -- AUGUST 31, 1998
INSTITUTIONAL TAX FREE PORTFOLIO--CONTINUED
- ------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Saint Charles County, Industrial
Development Authority, Sun River
Village Project, RB (A) (B) (C)
3.360%, 09/10/98 $11,300 $ 11,300
--------
48,355
--------
MONTANA -- 0.2%
Great Falls, Industrial Development
Revenue, Safeway Project,
RB (A) (B) (C)
3.800%, 12/01/98 1,955 1,955
--------
NEBRASKA -- 0.3%
Nebraska State, Public Power
Distribution Authority,
Ser A, RB
4.500%, 01/01/99 3,000 3,008
Northwest Mutual Life, Tax Exempt
Mortgage Trust, RB (A) (B) (C)
4.500%, 02/15/99 19 19
--------
3,027
--------
NEW HAMPSHIRE -- 1.5%
Education & Health Facilities
Authority, Dartmouth Education
Loan Project, RB (A) (B)
3.950%, 06/01/99 3,850 3,850
State Business Financial Authority,
Foundation For Seacoast Health
Project, Ser A, RB (A) (B) (C)
3.350%, 09/10/98 6,155 6,155
Strafford County, TAN
3.920%, 12/31/98 4,000 4,002
--------
14,007
--------
NEW JERSEY -- 0.2%
New Jersey State, Industrial and
Economic Development Authority,
Dates Toys "R" Us Urban Renewal
Corporation Project, RB (A) (B)
3.600%, 09/10/98 2,000 2,000
Northwest Mutual Life, Tax Exempt
Mortgage Trust, RB (A) (B) (C)
4.402%, 02/15/99 105 105
--------
2,105
--------
NEW MEXICO -- 0.5%
Albuquerque, Educational Facility
Authority, Menaul School
Project, RB (A) (B)(C)
3.400%, 09/01/98 1,700 1,700
- ------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Albuquerque, Metropolitan
Redevelopment Authority,
Springer Square Project,
RB (A) (B) (C)
3.649%, 09/10/98 $ 3,000 $ 3,000
--------
4,700
--------
NEW YORK -- 0.9%
Monroe County, Industrial
Development Authority, Rochester
District Heating Corporation
Project, RB (A) (B) (C)
3.450%, 09/01/98 2,250 2,250
North Hempstead, BAN
4.000%, 07/29/99 6,123 6,130
--------
8,380
--------
NORTH CAROLINA -- 0.1%
Beaufort Industrial Facility,
Pollution Control Revenue
Project, Texas Gulf Corporation,
RB (A) (B) (C)
3.400%, 09/10/98 1,025 1,025
--------
NORTH DAKOTA -- 0.1%
Fargo Kelly Inn, Fargo Project,
Ser 93, RB (A) (B) (C)
3.400%, 09/10/98 1,155 1,155
--------
OHIO -- 5.7%
Crawford County, BAN
4.000%, 02/12/99 3,500 3,503
Franklin County, Hospital Authority,
United States Health Project,
Ser C, RB (A) (B) (C)
3.300%, 09/10/98 15,335 15,335
Franklin County, Industrial
Development Revenue, Leveque
& Associates Project,
RB (A) (B) (C)
3.800%, 12/01/98 1,370 1,370
Greystone, Tax Exempt Certificate
Trust Authority, Senior Certificate
of Beneficial Ownership
Project, Ser 2, RB (A) (B) (C)
3.400%, 02/15/99 8,715 8,715
Highland County, Industrial
Development Revenue, Lancaster
Colony Corporation Project,
RB (A) (B) (C)
3.650%, 09/01/98 1,700 1,700
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
28
<PAGE>
- --------------------------------------------------------------------------------
- ------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Lorain County, Independent Living
Facilities Revenue, Elyria United
Methodist Project, Ser A,
RB (A) (B) (C)
3.350%, 09/10/98 $5,700 $ 5,700
Lorain County, Living & Hospital
Facilities, Elyria United Methodist
Village Project, Ser 1996B,
RB (A) (B) (C)
3.350%, 09/10/98 5,300 5,300
Marion County, Hospital Revenue,
Pooled Lease Program, Ser 91,
RB (A) (B) (C)
3.350%, 09/10/98 1,235 1,235
McDonald Tax-Exempt Mortgage
Trust #1, RB (A) (B) (C)
4.100%, 04/15/99 2,062 2,062
Scioto County, Health Care
Facilities, Hill View Retirement,
RB (A) (B) (C)
3.850%, 12/01/98 1,820 1,820
Southwest, Regional Water District,
BAN
4.100%, 08/19/99 3,000 3,008
Stark County, Health Care Facility,
Canton Christian Home Project,
Ser 90, RB (A) (B) (C)
3.600%, 09/01/98 1,300 1,300
Stark County, Health Care Facility,
Christian Home, RB (A) (B) (C)
3.600%, 09/15/98 1,540 1,540
Trumbull County, Industrial
Revenue Authority, Howland
Association Project, RB (A) (B) (C)
3.300%, 09/10/98 465 465
--------
53,053
--------
OKLAHOMA -- 1.4%
Claremore, Industrial and
Redevelopment Authority,
Worthington Cylinder Project,
RB (A) (B) (C)
3.400%, 09/10/98 1,100 1,100
Oklahoma, Mid-West Tax-Exempt
Mortgage Bond Trust,
RB (A) (B)
3.600%, 09/10/98 228 228
Tulsa City, Industrial Health Care,
Authority Laureate Psychiatric
Project, RB (A) (B) (C)
3.850%, 12/15/98 8,500 8,500
Tulsa Parking Authority, Refunding
First Mortgage Williams Project 84,
Ser A, RB (A) (B) (C)
3.750%, 11/15/98 2,735 2,735
--------
12,563
--------
- ------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
OREGON -- 1.4%
Lane County, Industrial
Development Revenue,
Weyerhaeuser Project, RB (A) (B)
3.358%, 09/10/98 $1,000 $ 1,000
Medford, Hospital Facility Authority,
Rogue Valley Manor Continued
Care Retirement Project,
RB (A) (B) (C)
3.400%, 09/10/98 4,200 4,200
Portland, Multi-Family Housing
Authority, South Park Block
Project, Ser A, RB (A) (B) (C)
3.350%, 09/10/98 7,950 7,950
--------
13,150
--------
PENNSYLVANIA -- 6.8%
Berks County, Industrial
Development Authority, Rilsan
Industrial Project, RB (A) (B) (C)
3.473%, 09/10/98 1,600 1,600
Blair County, Hospital Authority, First
Mortgage-Mercy Hospital Project,
RB Pre-Refunded @ 102 (D)
8.125%, 02/01/99 2,750 2,853
Clarion County, Industrial
Development Authority,
Meritcare Project, Ser A,
RB (A) (B) (C)
3.350%, 09/10/98 2,100 2,100
Dauphin County, General Authority,
Ser G, RB, AMBAC
5.000%, 12/01/98 4,750 4,766
East Hempfield Township,
Industrial Revenue Authority,
Mennonite Home Project,
RB (A) (B) (C)
3.450%, 09/10/98 2,500 2,500
Greystone, Tax Exempt Certificate
Trust, Senior Certificate
of Beneficial Ownership
Project, RB (A) (B) (C)
3.400%, 09/10/98 2,450 2,450
Lancaster County, Higher
Education Authority, Franklin &
Marshall College Project,
RB (A) (B) (C)
3.350%, 09/10/98 3,920 3,920
Lebanon County, Health Facility
Center Authority, United
Church Christ Homes Project,
RB (A) (B) (C)
3.300%, 09/10/98 3,800 3,800
29
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
SEI TAX EXEMPT TRUST -- AUGUST 31, 1998
INSTITUTIONAL TAX FREE PORTFOLIO--CONTINUED
- ------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
McCandless, Industrial
Development Authority,
Bradford Foundation Project,
Ser A, RB (A) (B) (C)
3.350%, 09/10/98 $ 1,730 $ 1,730
McDonald Tax-Exempt Mortgage
Trust #1, RB (A) (B) (C)
4.100%, 04/15/99 441 441
Montgomery County, Higher
Education & Health Authority,
William Penn Charter School
Project, RB (A) (B) (C)
3.350%, 09/10/98 2,700 2,700
North Cumberland County,
Industrial Development
Authority, Atlas Development
Project, RB (A) (B) (C)
3.350%, 09/10/98 1,085 1,085
Northwest Mutual Life Tax-Exempt
Mortgage Trust, RB (A) (B) (C)
4.402%, 02/15/99 43 43
Pennsylvania State Higher
Education, University of
Pennsylvania State Project,
Ser B, RB (A) (B)
3.400%, 09/10/98 5,000 5,000
Philadelphia, Industrial Development
Authority, Inglis House
Project, RB (A) (B) (C)
3.550%, 09/01/98 26,000 26,000
William Penn, School District
Authority, TRAN
3.940%, 06/30/99 2,095 2,097
York, General Authority, Pooled
Finance, RB (A) (B) (C)
3.300%, 09/10/98 625 625
--------
63,710
--------
SOUTH CAROLINA -- 3.2%
Charleston Center Tax Exempt
Bond Grantor Trust #1,
RB (A) (B) (C)
3.650%, 02/01/99 7,263 7,263
Charleston Center Tax Exempt
Bond Grantor Trust #2,
RB (A) (B) (C)
3.700%, 11/01/98 4,000 4,000
Charleston Center Tax Exempt
Bond Grantor Trust #4,
RB (A) (B) (C)
3.850%, 12/01/98 7,265 7,268
- ------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Charleston Center Tax Exempt
Bond Grantor Trust #5,
RB (A) (B) (C)
3.650%, 09/01/98 $ 4,035 $ 4,035
Educational Facilities Authority,
Morris College Project,
RB (A) (B) (C)
3.350%, 09/10/98 3,000 3,000
Spartanburg County, Hospital
Facility Authority, Mary Black
Memorial Hospital Project, RB
Pre-Refunded @ 102 (D)
8.250%, 10/01/98 3,500 3,583
Walhalla, Revenue Authority,
Avondale Mills Project,
RB (A) (B) (C)
3.304%, 09/10/98 1,100 1,100
--------
30,249
--------
SOUTH DAKOTA -- 0.1%
Watertown, Industrial
Development Authority,
Ramkota Project, Ser 93,
RB (A) (B) (C)
3.400%, 09/10/98 1,240 1,240
--------
TENNESSEE -- 3.2%
GAF Tax-Exempt Bond Grantor
Trust, Ser A, RB (A) (B) (C)
4.350%, 09/10/98 4,480 4,480
Greystone, Tax Exempt Certificate
Trust, Senior Certificate
of Beneficial Ownership
Project, RB (A) (B) (C)
3.400%, 09/10/989 3,170 3,170
Knox County, Industrial
Development Authority, Center
Square II Limited Project,
RB (A) (B) (C)
3.500%, 09/10/98 5,000 5,000
Knox County, Industrial
Development Authority,
Weisgarber Partners
Project, RB (A) (B) (C)
4.500%, 09/10/98 1,800 1,800
Nashville & Davidson County, Health
& Education Facilities Authority,
Adventist Health Systems
Project, Ser A, RB (A) (B) (C)
3.300%, 09/10/98 5,960 5,960
Nashville & Davidson County,
Health & Education Facilities
Authority, Adventist/Sunbelt
Project, Ser A, RB
(A) (B) (C)
3.300%, 09/10/98 3,495 3,495
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
30
<PAGE>
- --------------------------------------------------------------------------------
- ------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Nashville & Davidson County,
Health & Education Facilities
Authority, Board Revenue Belmont
University Project, RB (A) (B) (C)
3.350%, 09/10/98 $1,825 $ 1,825
Nashville Metropolitan
Government, Toys "R" Us
Project, Ser 84, RB (A) (B) (C)
3.450%, 09/10/98 1,030 1,030
Shelby County, Health Education &
Housing Facilities, Saint Peter
Villa Project, RB (A) (B) (C)
3.350%, 09/10/98 3,105 3,105
--------
29,865
--------
TEXAS -- 4.4%
Austin, Utility System Revenue,
Ser A, GO
5.300%, 11/15/98 4,585 4,600
Brazo River, Industrial
Development Authority,
Hoffman-LaRoche Project,
Ser 85, RB (A) (B) (C)
3.325%, 09/10/98 1,000 1,000
Corpus Christi, Industrial
Development Authority, Air
Inventory Project, RB (A) (B) (C)
3.720%, 02/01/99 4,565 4,565
Corpus Christi, Industrial
Development Authority,
Lantana Project, RB (A) (B) (C)
3.350%, 09/10/98 2,110 2,110
Harris County, Multi-Family
Housing, Glenhollow Project,
RB (A) (B) (C)
3.625%, 09/10/98 1,600 1,600
Harris County, Multi-Family
Housing, Greenhouse Project,
RB (A) (B) (C)
3.625%, 09/10/98 1,985 1,985
Nacogdoches, Health Finance
Development Committee,
South Central Health Services
Project, RB (A) (B) (C)
3.700%, 09/10/98 2,400 2,400
North Carolina National Bank
Tax-Exempt Trust,
Ser 90-B, RB (A) (B) (C)
4.250%, 09/10/98 1,200 1,200
Red River, Pollution Control
Authority, Southwestern Public
Service Project, RB (A) (B) (C)
3.500%, 09/10/98 5,000 5,000
- ------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Tarrant County, Health Facility
Development Authority,
Adventist Health System
Project, Ser A, RB (A) (B) (C)
3.300%, 09/10/98 $6,000 $ 6,000
Tarrant County, Health Facility
Development Authority,
Adventist/Sunbelt Project,
Ser A, RB (A) (B) (C)
3.300%, 09/10/98 8,655 8,655
Trinity River, Industrial
Development Authority, Trinity
River Project, RB (A) (B)
3.325%, 09/10/98 2,000 2,000
-------
41,115
-------
UTAH -- 0.5%
Northwest Mutual Life Tax-Exempt
Mortgage Trust, RB (A) (B) (C)
4.402%, 02/15/99 49 49
Sandy City, Industrial Development
Authority, Boyer 106 S Project,
RB (A) (B) (C)
3.350%, 09/10/98 2,675 2,675
Sandy City, Industrial Development
Revenue, Boyer Alta View
Project, RB (A) (B) (C)
3.350%, 09/10/98 1,590 1,590
West Valley, Industrial Development
Johnson Matthey Project,
RB (A) (B) (C)
3.401%, 09/01/98 200 200
-------
4,514
-------
VERMONT -- 0.3%
Educational & Health Financing
Authority, Capital Asset
Financing Program Project,
Ser 2, RB (A) (B) (C)
3.205%, 09/10/98 500 500
Student Loan Revenue, RB (A) (B) (C)
3.501%, 09/10/98 2,250 2,250
-------
2,750
-------
VIRGINIA -- 1.5%
Alexandria, Industrial Development
Authority, Pooled Loan Project,
Subseries A, RB (A) (B) (C)
3.300%, 09/10/98 3,540 3,540
Greystone, Tax Exempt Certificate
Trust, Senior Certificate
of Beneficial Ownership
Project, RB (A) (B) (C)
3.400%, 09/10/98 1,955 1,955
31
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
SEI TAX EXEMPT TRUST -- AUGUST 31, 1998
INSTITUTIONAL TAX FREE
PORTFOLIO--CONCLUDED
- ------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Harrisonburg, Multi-Family
Housing, Rolling Brook Village
Apartment, RB (A) (B)
3.800%, 02/01/99 $7,000 $ 7,000
Norfolk, Industrial Development
Authority, Toys "R" Us Project,
Ser 1984, RB (A) (B) (C)
3.473%, 09/10/98 1,425 1,425
Northwest Mutual Life Tax Exempt
Mortgage Trust, RB (A) (B) (C)
4.500%, 02/15/99 33 33
--------
13,953
--------
WASHINGTON -- 0.7%
Housing Finance Commission,
Mill Plains Crossing Project,
RB (A) (B) (C)
3.400%, 09/10/98 3,300 3,300
Kent, Economic Development
Revenue, Northwest Aluminum
Products, RB (A) (B) (C)
3.750%, 09/10/98 1,400 1,400
Non-Profit Housing Finance
Authority, Emerald Heights
Project, RB (A) (B) (C)
3.649%, 09/01/98 200 200
Spokane, Regional Solid Waste
Management Authority, Ser B,
RB Pre-Refunded @ 102 (D)
7.625%, 01/01/99 1,500 1,556
--------
6,456
--------
WEST VIRGINIA -- 2.0%
Charleston, Building Common
Parking Facility Revenue,
Charlestown Town Center,
Ser A, RB (A) (B) (C)
3.300%, 09/10/98 12,935 12,935
Parkersburg, Industrial
Development Revenue, B-H
Associates Project,
RB (A) (B) (C)
3.575%, 09/10/98 3,500 3,500
Putnam County, Industrial
Development Revenue,
Bond for FMC Corporation
Project, RB (A) (B) (C)
3.550%, 09/10/98 1,800 1,800
Wood County, Industrial
Development Revenue,
Aga Gas Project, RB (A) (B) (C)
3.500%, 09/10/98 820 820
--------
19,055
--------
- ------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
WISCONSIN -- 3.2%
Augusta, Industrial Development
Authority, Ball Corporation
Project, RB (A) (B) (C)
3.350%, 09/10/98 $ 2,650 $ 2,650
Beaver Dam, Unified School
District, TRAN
3.800%, 08/24/99 3,000 3,001
De Forest, Area School
District TRAN
4.080%, 09/18/98 2,800 2,800
Glendale, BAN
4.500%, 09/01/98 1,155 1,155
Hortonville, BAN
4.250%, 12/15/98 1,200 1,201
Northwest Mutual Life Tax-Exempt
Mortgage Trust, RB (A) (B) (C)
4.402%, 02/15/99 51 51
Ozaukee County, GO
4.250%, 09/01/98 1,000 1,000
Two Rivers, Public School
District, BAN
4.050%, 01/11/99 1,065 1,065
Village of Menomonee, Industrial
Development Authority, Maysteel
Corporation Project, RB (A) (B) (C)
3.400%, 09/10/98 3,000 3,000
Wausau, Industrial Development
Revenue, Venture Partnership
Project, RB (A) (B) (C)
3.400%, 09/10/98 10,000 10,000
Westby, TRAN
3.900%, 10/30/98 1,700 1,700
Whitehall, TRAN
4.100%, 09/28/98 1,700 1,700
--------
29,323
--------
WYOMING -- 0.6%
Cheyenne County, Revenue
Refunding, Holiday Inn Project,
RB (A) (B) (C)
3.800%, 10/01/98 1,245 1,245
Evanston, Industrial Development
Revenue, Safeway Incorporated
Project, RB (A) (B) (C)
3.800%, 12/01/98 3,700 3,700
Northwest Mutual Life Tax-Exempt
Mortgage Trust, RB (A) (B) (C)
4.402%, 02/15/99 37 37
--------
4,982
--------
Total Municipal Bonds
(Cost $983,345) 983,345
--------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
32
<PAGE>
- --------------------------------------------------------------------------------
- ------------------------------------------------------------
VALUE (000)
- ------------------------------------------------------------
Total Investments -- 105.6%
(Cost $983,345) $983,345
--------
Other Assets and Liabilities, Net -- (5.6%) (52,404)
--------
NET ASSETS:
Portfolio Shares of Class A (unlimited
authorization -- no par value) based
on 813,455,926 outstanding shares
of beneficial interest 813,280
Portfolio Shares of Class B (unlimited
authorization -- no par value) based
on 94,998,018 outstanding shares of
beneficial interest 94,998
Portfolio Shares of Class C (unlimited
authorization -- no par value) based
on 22,681,341 outstanding shares of
beneficial interest 22,681
Undistributed net investment income 1
Accumulated net realized loss
on investments (19)
--------
TOTAL NET ASSETS -- 100.0% $930,941
========
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
========
AMBAC AMERICAN MUNICIPAL BOND ASSURANCE COMPANY
BAN BOND ANTICIPATION NOTE
COP CERTIFICATE OF PARTICIPATION
FNMA FEDERAL NATIONAL MORTGAGE ASSOCIATION
FSA FINANCIAL SECURITY ASSURANCE
GO GENERAL OBLIGATION
MBIA MUNICIPAL BOND INVESTORS ASSURANCE
RB REVENUE BOND
TAN TAX ANTICIPATION NOTE
TAW TAX ANTICIPATION WARRANT
TRAN TAX & REVENUE ANTICIPATION NOTE
(A) FLOATING RATE SECURITY -- THE RATE REFLECTED ON THE STATEMENT OF NET ASSETS
IS THE RATE IN EFFECT ON AUGUST 31, 1998.
(B) PUT AND DEMAND FEATURE -- THE DATE REPORTED ON THE STATEMENT OF NET ASSETS
IS THE EARLIER OF THE MATURITY DATE OR PUT DATE.
(C) SECURITIES ARE HELD IN CONJUNCTION WITH A LETTER OF CREDIT FROM A
MAJOR COMMERCIAL BANK OR FINANCIAL INSTITUTION.
(D) PRE-REFUNDED SECURITY -- THE MATURITY DATE SHOWN IS THE PRE-REFUNDED DATE.
(E) SECURITIES ARE COLLATERALIZED UNDER AN AGREEMENT FROM FNMA.
- --------------------------------------------------------------------------------
PENNSYLVANIA TAX FREE
PORTFOLIO
- ------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
MUNICIPAL BONDS -- 102.8%
PENNSYLVANIA -- 102.8%
Allegheny County, Sanitation and
Sewer Authority, Ser B, RB,
Pre-Refunded @ 100 (D) FGIC
7.250%, 06/01/99 $ 590 $ 605
Berks County, Industrial
Development Authority, Rilsan
Industrial Project, RB (A) (B) (C)
3.473%, 09/10/98 2,150 2,150
Blair County, Hospital Authority,
Altoona Hospital Project,
Ser A, RB, AMBAC
3.746%, 07/01/99 1,165 1,165
Bucks County, Industrial
Development Authority,
CPC International Incorporated
Project, Ser 85, RB (A) (B)
3.910%, 09/01/98 2,000 2,000
Butler County, Industrial
Development Authority,
Pennzoil Project, RB (A) (B) (C)
3.700%, 09/10/98 600 600
Chartiers Valley, Industrial &
Commercial Development
Authority, Parkay Center West
Project, Ser A, RB (A) (B) (C)
3.350%, 09/10/98 1,785 1,785
Chester County, Health & Education
Facilities Authority, Barclay
Friends Project, Ser A,
RB (A) (B) (C)
3.200%, 09/10/98 1,550 1,550
Clarion County, Industrial
Development Authority, Meritcare
Project, Ser A, RB (A) (B) (C)
3.350%, 09/10/98 700 700
Dauphin County, General Hospital
Authority, Allhealth Pooled
Finance Program, Ser B,
RB (A) (B)
3.350%, 09/10/98 1,500 1,500
Dauphin County, General Hospital
Authority, Reading Hospital
and Medical Center Project,
Ser A , RB (A) (B)
3.250%, 09/10/98 1,600 1,600
Delaware County, Industrial
Development Authority,
Henderson/Radnor Joint Venture
Project, RB (A) (B) (C)
3.450%, 09/10/98 1,040 1,040
33
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
SEI TAX EXEMPT TRUST -- AUGUST 31, 1998
PENNSYLVANIA TAX FREE PORTFOLIO--CONCLUDED
- ------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Delaware County, Industrial
Development Authority, Solid
Waste, Scott Paper Project,
Ser B, RB (A) (B)
3.250%, 09/10/98 $2,000 $ 2,000
Easton, City School District
Authority, GO (A) (B)
3.300%, 09/10/98 1,600 1,600
Emmaus, General Authority,
RB, FSA (A) (B)
3.250%, 09/10/98 1,000 1,000
Erie County, Higher Educational
Building Authority, Ser A, RB
Pre-Refunded @ 102 (D)
8.500%, 06/01/99 1,000 1,053
Erie County, Hospital Authority,
Union City Memorial Hospital
Project, RB (A) (B) (C)
3.350%, 09/10/98 1,400 1,400
Geisinger Authority, Health
Systems Authority, Ser B,
RB Pre-Refunded @ 102 (D)
7.375%, 09/10/98 830 867
Gettysburg Area, Industrial
Development Authority, Brethren
Home Community Project,
Ser A, RB, MBIA
3.850%, 06/01/99 535 535
Lancaster County, Higher Education
Authority, Franklin & Marshall
College Project, RB (A) (B) (C)
3.350%, 09/10/98 715 715
Lebanon County, Health Facility
Center Authority, United Church
Christ Homes Project,
RB (A) (B) (C)
3.300%, 09/10/98 1,500 1,500
Lebanon County, Industrial
Development Authority,
Aluminum Company of America
Project, Ser 92, RB (A) (B)
3.350%, 09/10/98 1,000 1,000
Lebanon County, Industrial
Development Authority,
Aluminum Company of America
Project, Ser 92, RB (A) (B) (C)
3.350%, 09/10/98 1,020 1,020
Lebanon County, Redevelopment
Authority, First Mortgage
Cornwell Manor Project, Ser S,
RB Pre-Refunded @ 102 (D) (A) (B)
8.625%, 06/01/99 1,000 1,055
- ------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Lehigh County, Industrial
Development Authority Pollution
Control, Allegheny Electric
Corporation Project, RB
(A) (B) (C)
3.550%, 09/01/98 $ 100 $ 100
Lehigh County, Water and Sewer
Authority, Ser B, FGIC (A) (B) (C)
3.150%, 09/10/98 330 330
Lehigh County, Water Authority,
RB, FGIC (A) (B)
3.150%, 09/10/98 635 635
Mercersburg Boro, Educational
Facility Authority, Mercersburg
College Project, RB (A) (B) (C)
3.300%, 09/10/98 1,000 1,000
Montgomery County, Industrial
Development Authority, IKEA
Property Project, RB (A) (B)
3.350%, 09/10/98 2,400 2,400
Moon Township, Industrial
Development Authority,
Executive Office Association
Project, Ser 91-A, RB (A) (B) (C)
3.350%, 09/10/98 100 100
Norristown, TRAN
4.050%, 12/31/98 1,250 1,250
Northumerberland County, Merck
Corporation, Atlas Development
Association Project, RB (A) (B)
3.450%, 09/10/98 1,300 1,300
Pennsylvania State, Higher
Education Facilities Authority,
Thomas Jefferson University,
RB, MBIA
5.800%, 08/15/99 600 612
Pennsylvania State, Public School
Building Authority, Harrisburg
Area Community College Project,
Ser D, RB, MBIA
6.100%, 04/01/99 445 451
Pennsylvania State University, RB
Pre-Refunded @ 102 (D)
6.750%, 07/01/99 1,000 1,045
Philadelphia, GO, FGIC
11.500%, 08/01/99 100 107
Philadelphia, Housing Authority,
Inglis Housing Project,
RB (A) (B)
3.550%, 09/01/98 1,000 1,000
Philadelphia, Industrial
Development Authority, City Line
Holiday Inn Project,
Ser 96, RB (A) (B) (C)
3.350%, 09/10/98 1,500 1,500
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
34
<PAGE>
- --------------------------------------------------------------------------------
- ------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Philadelphia, Redevelopment
Authority, Rivers Edge Project,
RB (A) (B) (C)
3.450%, 09/10/98 $1,400 $ 1,400
Radnor Township, GO
3.700%, 10/01/98 200 200
Scranton-Lackawana, Health &
Welfare Authority, University of
Scranton Project, RB (A) (B) (C)
3.903%, 09/10/98 655 655
Somerset County, Hospital
Authority, Somerset Community
Hospital Project, Ser A,
RB (A) (B) (C)
3.675%, 09/10/98 1,300 1,300
Union County, Hospital Authority
Revenue, United Care Methodist
Continuing Care Services Project,
RB (A) (B) (C)
3.350%, 09/10/98 1,400 1,400
Upper Moreland Township, School
District, Ser A, GO, FSA
3.600%, 12/01/98 695 695
West Allegheny, School
District Authority, GO,
Pre-Refunded @ 102 (D)
6.600%, 02/01/99 600 607
Westmoreland County, Industrial
Development Authority, Kinder
Care Project, Ser D, RB (A) (B) (C)
3.350%, 09/10/98 755 755
William Penn, School District
Authority, TRAN
3.940%, 06/30/99 1,000 1,001
Wissahickon, School District, GO
4.500%, 05/15/99 1,250 1,256
York County, General Authority,
Pooled Finance, RB (A) (B) (C)
3.300%, 09/10/98 1,925 1,925
-------
51,464
-------
Total Municipal Bonds
(Cost $51,464) 51,464
-------
Total Investments -- 102.8%
(Cost $51,464) 51,464
-------
Other Assets and Liabilities, Net -- (2.8%) (1,396)
-------
- ------------------------------------------------------------
VALUE (000)
- ------------------------------------------------------------
NET ASSETS:
Portfolio Shares of Class A (unlimited
authorization -- no par value) based
on 50,085,240 outstanding shares of
beneficial interest $ 50,085
Undistributed net investment income 1
Accumulated net realized loss
on investments (18)
--------
TOTAL NET ASSETS -- 100.0% $ 50,068
========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE -- CLASS A $1.00
========
AMBAC AMERICAN MUNICIPAL BOND ASSURANCE COMPANY
FGIC FINANCIAL GUARANTY INSURANCE CORPORATION
GO GENERAL OBLIGATION
RB REVENUE BOND
TRAN TAX & REVENUE ANTICIPATION NOTE
(A) FLOATING RATE SECURITY -- THE RATE REFLECTED ON THE STATEMENT OF NET ASSETS
IS THE RATE IN EFFECT ON AUGUST 31, 1998.
(B) PUT & DEMAND FEATURE -- THE DATE REPORTED ON THE STATEMENT OF NET ASSETS IS
THE EARLIER OF THE MATURITY DATE OR THE PUT DATE.
(C) SECURITIES ARE HELD IN CONNECTION 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.
35
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
SEI TAX EXEMPT TRUST -- AUGUST 31, 1998
INTERMEDIATE-TERM MUNICIPAL PORTFOLIO
- ------------------------------------------------------------
FACE MARKET
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
MUNICIPAL BONDS -- 102.6%
ALABAMA -- 2.2%
Alabama State, Agricultural &
Mechanical University Project,
RB, MBIA
5.000%, 11/01/04 $1,700 $ 1,783
5.000%, 11/01/07 2,075 2,187
5.000%, 11/01/08 1,140 1,203
Alabama State, Docks Department
Docks Facility, RB, MBIA
5.250%, 10/01/01 1,000 1,041
6.000%, 10/01/08 1,000 1,137
Alabama, Water Pollution Control
Authority, Revolving Flood Line
Ser A, RB, AMBAC
4.750%, 08/15/08 1,105 1,141
Baldwin County, Eastern Shore
Health Care Authority,
RB, AMBAC
5.000%, 04/01/06 1,025 1,071
State Private Colleges & Tuskegee
University Project, Ser A, RB
5.700%, 09/01/10 825 895
5.700%, 09/01/11 870 941
-------
11,399
-------
ALASKA -- 0.8%
Anchorage Electric Utility,
RB, MBIA
8.000%, 12/01/06 1,775 2,221
8.000%, 12/01/07 1,310 1,667
-------
3,888
-------
ARIZONA -- 0.4%
Tempe, GO
8.000%, 07/01/01 735 817
Yuma County, Jail Revenue,
RB, AMBAC
6.000%, 07/01/03 1,025 1,113
-------
1,930
-------
CALIFORNIA -- 17.8%
Abag, Finance Authority for
Nonprofit Corporations,
Financial Authority Episcopal
Homes Foundation Project, COP
5.000%, 07/01/07 1,000 1,026
- ------------------------------------------------------------
FACE MARKET
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Anaheim, Public Financing
Authority, Electric Systems
Disaster Facility Project,
RB, MBIA
5.000%, 10/01/07 $1,025 $ 1,090
Anaheim, Public Finance Authority,
Public Improvements Project,
Ser C, RB, FSA
6.000%, 09/01/13 2,325 2,677
Anaheim, Public Finance Authority,
Utility Project, RB, MBIA
Callable 04/01/03 @ 102
5.400%, 10/01/08 2,000 2,125
Bakersfield, Convention Center
Expansion Project, COP, MBIA
5.200%, 04/01/05 1,000 1,067
California State, GO
5.500%, 10/01/05 2,000 2,182
7.000%, 08/01/06 1,525 1,815
5.500%, 10/01/06 2,000 2,190
California State, Health Facilities
Financial Authority, Kaiser
Permanente Project,
Ser A, RB, FSA
5.000%, 06/01/06 5,325 5,618
California State, Health Facilities
Financial Authority, Stanford
Health Care Project, Ser B, RB
5.000%, 11/15/05 1,245 1,318
California State, Housing Financial
Agency, Single-Family Mortgage,
Ser C, RB, FHA
5.050%, 02/01/17 2,735 2,776
California State, Public Works Board
Authority, Regents University
Project, Ser A, RB
5.250%, 12/01/07 1,000 1,084
California Statewide, Communities
Development Authority, Irvine
Apartment Communities Project,
Ser A, RB (E)
4.900%, 05/15/25 4,300 4,364
California State, GO
6.600%, 02/01/09 1,000 1,186
California Statewide, Communities
Development Authority,
COP, MBIA
5.250%, 04/01/06 1,805 1,927
California Statewide, Communities
Development Authority, St. Joseph
Health System, COP
5.000%, 07/01/05 2,765 2,886
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
36
<PAGE>
- --------------------------------------------------------------------------------
- ------------------------------------------------------------
FACE MARKET
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
California Statewide, Statewide
Communities Development
Authority, John Muir/Mount
Diablo Health Project,
COP, AMBAC (A) (E)
3.200%, 09/01/98 $1,000 $ 1,000
Coachella Valley, California Water
District No. 71, Flood Control
Project, COP, AMBAC
5.000%, 10/01/08 1,100 1,166
Compton, Civic Center &
Capital Improvement,
Ser A, COP
5.000%, 09/01/00 1,000 1,017
Contra Costa County, Merrithew
Memorial Hospital Project,
COP, MBIA
5.250%, 11/01/05 2,000 2,147
Education Facility Authority,
University of San Francisco,
RB, MBIA
6.000%, 10/01/08 1,000 1,141
Elk Grove, Unified School District
Special Tax, Community Facilities
District No. 1, GO, AMBAC
6.500%, 12/01/07 1,000 1,179
Health Facilities Finance Authority,
Presbyterian Hospital Project,
RB, MBIA
5.250%, 05/01/06 2,080 2,228
Health Facilities Finance Authority,
Sisters of Providence, RB
5.500%, 10/01/05 1,100 1,176
Health Facilities Finance Authority,
Summit Medical Center, Ser A,
RB, FSA
5.250%, 05/01/04 1,500 1,594
Housing Finance Agency, Ser A,
RB, MBIA
5.300%, 08/01/14 340 344
Housing Finance Agency, Ser G, RB,
Callable 08/01/04 @ 102
7.250%, 08/01/17 1,250 1,375
Irvine Special Assessment,
District 89-10, GO (A) (E)
3.150%, 09/01/98 95 95
Los Angeles County, Capital Asset
Leasing Corporation,
RB, AMBAC
6.000%, 12/01/06 1,000 1,131
- ------------------------------------------------------------
FACE MARKET
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Los Angeles County, Community
Redevelopment Agency, Central
Business District Project I, TA
4.700%, 11/15/03 $ 500 $ 500
Los Angeles County, Public Works
Financing Authority, Regional Park
& Open Space District, Ser A, RB,
5.000%, 10/01/00 1,900 1,952
Los Angeles County, Public Works
Financing Authority, Ser A,
RB, MBIA
5.125%, 09/01/08 1,380 1,477
Los Angeles, Department of Water
& Power Electric Plant, RB
9.000%, 10/15/02 2,000 2,382
Los Angeles, Unified School
District, Multiple Property
Project, Ser A, COP, FSA
5.100%, 10/01/06 1,050 1,117
Los Angeles, Unified School
District, Ser A, GO, FGIC
6.000%, 07/01/12 1,880 2,160
Los Angeles, Community
Redevelopment Agency, Central
Business District Project, TA
5.000%, 11/15/00 500 510
Mojave Water Agency, GO, FGIC
Callable 09/01/06 @ 102
5.600%, 09/01/12 1,000 1,085
Oakland, Health Facilities Authority,
Childrens Hospital Project,
Ser A, RB
5.000%, 07/01/01 1,175 1,212
Orange County, Local
Transportation Authority,
First Ser-Measure M, RB
5.400%, 02/15/00 1,000 1,024
Orange County, Ser A, COP, MBIA
Callable 07/01/06 @ 102
5.800%, 07/01/16 1,000 1,084
Orville Hospital, Ser A , RB
5.500%, 12/01/06 1,000 1,079
Oxnard, Unified School District,
GO, MBIA
5.375%, 08/01/09 1,080 1,174
Pomona, Unified School District,
Ser A, GO, MBIA
5.600%, 08/01/07 1,040 1,150
37
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
SEI TAX EXEMPT TRUST -- AUGUST 31, 1998
INTERMEDIATE-TERM MUNICIPAL PORTFOLIO--CONTINUED
- ------------------------------------------------------------
FACE MARKET
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Public Works, State University
Project, Ser A, RB
5.500%, 10/01/07 $2,000 $ 2,185
Rancho Mirage, Joint Powers
Finance Authority, Eisenhower
Medical Center Project, Ser A, COP,
MBIA Callable 07/01/07 @ 102
5.125%, 07/01/09 2,150 2,274
Riverside, Riverside Electric,
RB, AMBAC
5.000%, 10/01/05 1,000 1,060
San Bernardo County, Medical
Center Financing Project,
COP, MBIA
5.000%, 08/01/03 1,500 1,571
Santa Ana, Financing Authority,
South Harbor Boulevard Project,
Ser A, RB, MBIA
5.000%, 09/01/04 1,080 1,137
Stanislaus, Waste to Energy Finance
Authority, Ogden Martin Systems
Project, RB
Callable 01/01/00 @ 102
7.625%, 01/01/10 3,880 4,103
State Educational Facilities,
University of Southern California,
Ser A, RB
5.600%, 10/01/05 1,140 1,247
State, GO Callable 06/01/06 @ 101
5.250%, 06/01/12 2,645 2,761
Statewide Communities
Development Authority,
San Gabriel Valley, Ser A, RB, COP
6.000%, 09/01/06 1,000 1,102
Torrance, Redevelopment Agency,
Senior Lien, Ser C, TA, MBIA
5.000%, 09/01/08 2,980 3,084
University of California, Board of
Regents, Ser B, RB
6.500%, 09/01/02 1,995 2,175
-------
91,529
-------
COLORADO -- 4.4%
Colorado, Housing Finance Agency,
Single-Family Housing
Project, Ser A, RB
6.500%, 11/01/29 1,000 1,119
Colorado , Housing Finance
Authority, RB, Ser A-3, RB
Callable 05/01/08 @ 105
6.500%, 05/01/16 1,000 1,110
- ------------------------------------------------------------
FACE MARKET
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Colorado, Housing Finance
Authority, Single-Family Housing
Project, Ser C-3, RB
4.800%, 11/01/16 $1,400 $ 1,410
6.750%, 05/01/17 1,000 1,124
Colorado State, Health Facilities
Authority, Catholic Health
Initiatives Project, Ser A, RB
5.500%, 12/01/06 1,000 1,075
5.500%, 12/01/07 1,000 1,079
Colorado State, Housing Financial
Authority, Single-Family Housing
Project, Ser A-3, RB
Callable 05/01/07 @ 105
7.000%, 11/01/16 1,750 1,984
Colorado State, Housing Financial
Authority, Single-Family Housing
Project, Ser B-3, RB
Callable 05/01/08 @ 105
6.550%, 05/01/25 2,000 2,212
Colorado State, Housing Financial
Authority, Single-Family
Project, Ser A-3, RB
Callable 05/01/03 @ 102
4.600%, 11/01/16 1,350 1,365
Health Facilities Authority, Rocky
Mountain Adventist, RB
6.250%, 02/01/04 1,700 1,802
Highlands Ranch, Metropolitan
District No. 3, Ser B, GO (E)
5.000%, 12/01/06 1,345 1,395
Larimer County, Courthouse and
Jail Facilities Project, COP, FSA
5.000%, 12/15/07 3,455 3,628
Larimar County, School
District No. R 1, GO (E)
5.500%, 12/15/06 1,285 1,402
Obligation Board Authority, Student
Loan Project, Ser L, RB
6.100%, 09/01/02 1,790 1,879
-------
22,584
-------
CONNECTICUT -- 0.3%
Mashantucket, Western Pequot Tribe
Project, Ser A, RB (D) (E)
6.250%, 09/01/03 490 537
Mashantucket, Western Pequot Tribe
Project, Ser A, RB
6.250%, 09/01/03 510 554
State Development Authority,
Pollution Control, Frito-Lay/
Pepsi Project, RB
6.375%, 07/01/04 560 568
-------
1,659
-------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
38
<PAGE>
- --------------------------------------------------------------------------------
- ------------------------------------------------------------
FACE MARKET
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
DISTRICT OF COLUMBIA -- 0.5%
District of Columbia, Hospital
Revenue, Washington Hospital
Center, RB, MBIA
Callable 08/05/02 @ 102
7.000%, 08/15/05 $1,500 $ 1,667
District of Columbia, Ser A, GO
5.125%, 06/01/99 1,000 1,006
-------
2,673
-------
FLORIDA -- 2.6%
Dade County, Ser CC,
GO, AMBAC
6.900%, 10/01/04 1,125 1,299
6.900%, 10/01/05 1,025 1,203
7.125%, 10/01/08 1,470 1,830
Dade County, Ser DD,
GO, AMBAC
7.600%, 10/01/05 1,070 1,301
Florida Housing Finance Authority,
Capital Appreciation, Single-
Family Mortgage, RB
Callable 01/15/10 @ 45.469
0.000%, 07/15/16 1,185 163
Hillsborough County, Utility
Authority, RB, MBIA (D)
9.750%, 12/01/03 1,425 1,705
Palm Beach County, Solid Waste
Authority, Ser A, RB,
AMBAC
6.000%, 10/01/08 3,300 3,766
Tampa, Health Systems Authority,
Catholic Health Project,
Ser A-2, RB
5.500%, 11/15/08 1,000 1,011
Tampa, Health Systems Authority,
Catholic Health Project,
Ser A-3, RB
5.500%, 11/15/05 1,230 1,333
-------
13,611
-------
GEORGIA -- 1.4%
Cobb County & Marietta, Water
Authority, RB
5.000%, 11/01/04 1,075 1,075
College Park, Business & Industrial
Development Authority, Civic
Center Project, Ser A, RB, FSA
5.800%, 09/01/05 1,165 1,277
- ------------------------------------------------------------
FACE MARKET
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
College Park, Business & Industrial
Development Authority, Civic
Center Project, Ser A, RB, FSA
5.200%, 09/01/04 $1,105 $ 1,170
Gwinnett County, School District
Authority, GO Callable
02/01/01 @ 102
9.500%, 02/01/02 1,000 1,146
Hall County, School
District, GO
5.000%, 11/01/00 1,230 1,262
5.000%, 11/01/01 1,180 1,221
-------
7,151
-------
GUAM -- 0.2%
Guam, Government Limited
Obligation, Infrastructure
Improvement, Ser A,
GO, AMBAC
5.250%, 11/01/03 1,000 1,064
-------
HAWAII -- 1.0%
Hawaii State, Housing Finance &
Development, Single-Family
Housing Project, Ser B, RB, FNMA (F)
Callable 07/01/01 @ 102
6.900%, 07/01/16 3,040 3,264
Hawaii State, Ser CM, GO, FGIC
5.500%, 12/01/03 1,835 1,959
-------
5,223
-------
IDAHO -- 0.2%
Idaho State, Health Facilities
Authority, Holy Cross Health
Systems Project, RB, MBIA
5.000%, 12/01/06 1,050 1,104
Power County, Pollution Control
Revenue, FMC Corporation
Project, RB (A)
3.300%, 09/01/98 100 100
-------
1,204
-------
ILLINOIS -- 3.9%
Cook County, GO, MBIA
7.250%, 11/01/07 2,000 2,432
Development Finance Authority,
Community Rehab Providers,
Ser A, RB
5.600%, 07/01/05 2,235 2,322
Health Facility Authority,
RB, MBIA
7.900%, 08/15/03 400 405
39
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
SEI TAX EXEMPT TRUST -- AUGUST 31, 1998
INTERMEDIATE-TERM MUNICIPAL PORTFOLIO--CONTINUED
- ------------------------------------------------------------
FACE MARKET
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Hospital Facilities, Metropolitan
Pier & State Exposition Authority,
McCormick Plaza Convention, RB
6.250%, 07/01/17 $ 450 $ 490
Housing Development Authority,
Ser A, RB Callable
02/01/06 @ 102
5.650%, 02/01/16 630 640
Illinois State, Educational Facility
Authority, Northwestern
University Project, RB
Callable 11/01/12 @ 100
5.150%, 11/01/12 2,000 2,077
Illinois State, Health Facilities
Authority, Centegra Health
Systems Project, RB
5.500%, 09/01/06 2,375 2,491
Illinois State, Health Facilities
Authority, Edgewater Medical
Center Project, Ser A, RB (E)
4.700%, 07/01/31 3,995 3,995
Kane & DeKalb County, Unified
School District No. 301,
GO, AMBAC
6.300%, 12/01/04 2,640 2,953
McClean County, Public Building
Commission, Lease Receipts,
Law & Justice Center, GO
7.300%, 11/01/02 1,280 1,442
State, GO Callable 08/01/99 @ 102
6.375%, 08/01/00 1,000 1,043
-------
20,290
-------
INDIANA -- 0.3%
Health Facilities Finance Authority,
Sisters of Saint Francis
Health Systems, RB
Pre-Refunded @ 100 (C)
7.100%, 09/01/03 1,555 1,656
Rockport, Pollution Control Revenue,
AEP Generating Company,
Project B, RB (A)
3.300%, 09/01/98 100 100
-------
1,756
-------
IOWA -- 0.6%
Cedar Rapids, GO
5.000%, 06/01/05 2,090 2,205
Eddyville Pollution Control,
Cargill Inc. Project, RB
5.400%, 10/01/06 1,000 1,082
-------
3,287
-------
- ------------------------------------------------------------
FACE MARKET
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
KANSAS -- 1.5%
Johnson County, Unified School
District No. 232, GO, FSA
5.000%, 03/01/05 $1,000 $ 1,052
5.000%, 09/01/06 1,000 1,055
Johnson County, Unified School
District No. 233, GO, FGIC
5.250%, 09/01/05 2,585 2,766
Kansas State, Turnpike Authority,
RB, AMBAC
5.500%, 09/01/06 1,500 1,627
Shawnee County, Ser A, GO
5.250%, 09/01/09 1,000 1,076
-------
7,576
-------
KENTUCKY -- 1.3%
Kentucky, Infrastructure Authority,
Revolving Funding, Ser L, RB
5.500%, 06/01/07 1,000 1,085
Kentucky State, Economic
Development Financial Authority,
Ashland Hospital Corporation
Project, RB
5.250%, 02/01/07 2,155 2,279
Kentucky State, Property and
Buildings Commission, RB
6.000%, 09/01/08 2,500 2,834
State Turnpike Authority, Toll Road
Project, Ser A, RB
8.500%, 07/01/04 410 412
-------
6,610
-------
LOUISIANA -- 0.7%
Housing Finance Agency, Single-
Family Housing Project,
RB, MBIA
5.125%, 12/01/10 1,320 1,346
Jefferson Parish, Drain Sales Tax,
RB, AMBAC
5.000%, 11/01/09 1,300 1,370
Louisiana State, Housing Financial
Authority, Single-Family Housing
Project, RB, GNMA/FNMA (F)
Callable 12/01/07 @ 104
6.650%, 06/01/15 1,000 1,112
------
3,828
------
MAINE -- 1.1%
Maine, Health & Higher Educational
Facility Authority, RB
5.250%, 07/01/07 2,270 2,418
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
40
<PAGE>
- --------------------------------------------------------------------------------
- ------------------------------------------------------------
FACE MARKET
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Maine State, Financial Authority
Electric Rate Stabilization
Project, Ser A, RB, FSA
5.000%, 07/01/05 $1,220 $ 1,281
5.000%, 07/01/07 1,975 2,074
-------
5,773
-------
MARYLAND -- 1.6%
Federick County, Ser B, GO
Pre-Refunded @ 102 (C)
6.300%, 07/01/02 1,000 1,103
Howard County, Public
Improvement, Ser A, GO
5.000%, 02/15/07 2,000 2,123
Maryland State, Health & Higher
Education Facility Authority, RB
4.600%, 11/01/26 2,000 2,040
Maryland State, Health and Higher
Education Facility Authority,
John Hopkins University
Project, RB
5.500%, 07/01/02 1,815 1,906
University of Maryland, System
Auxiliary Facility and Tuition,
Ser A, RB
5.000%, 04/01/05 1,000 1,044
-------
8,216
-------
MASSACHUSETTS -- 4.2%
Industrial Financing Agency, RB
Mandatory Put 05/01/02 @ 100 (B)
5.000%, 05/01/26 1,350 1,384
Lowell, GO, FSA
Callable 02/15/01 @ 103
8.300%, 02/15/05 1,855 2,085
Massachusetts Bay, Transportation
Authority, General Transportation
System, Ser A, RB
5.300%, 03/01/05 1,000 1,066
7.000%, 03/01/07 3,000 3,578
Massachusetts Bay, Transportation
Authority, General Transportation
System, Ser A, RB (E)
5.500%, 03/01/09 1,230 1,342
Massachusetts, Municipal Wholesale
Electric Power Supply Systems,
Ser B, RB Pre-Refunded @ 102 (C)
6.750%, 07/01/02 1,000 1,119
Massachusetts State, Grant
Anticipation Notes, Ser A, RB
5.000%, 12/15/05 1,270 1,335
- ------------------------------------------------------------
FACE MARKET
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Massachusetts State, Health and
Educational Facilities Authority,
Southcoast Health Systems
Project, Ser A, RB, MBIA
5.500%, 07/01/07 $1,385 $ 1,489
Massachusetts State, Housing
Finance Agency, Residential
Development, RB
Callable 05/15/02 @ 102
6.875%, 11/15/11 1,935 2,121
Springfield, GO, AMBAC
6.375%, 08/01/04 1,000 1,121
State Health & Education Facilities
Authority, Faulkner Hospital,
Ser C, RB
5.500%, 07/01/01 1,325 1,371
State Health & Education Facility
Agency, Lowell General Hospital,
Ser B, RB, FSA
Callable 06/01/07 @ 102
5.250%, 06/01/11 1,585 1,656
State Housing Finance Agency,
Single-Family Housing Project,
Ser 14, RB, FSA
Callable 06/01/00 @ 102
7.600%, 12/01/14 980 1,035
State Water Resource Authority,
Ser B, RB
5.250%, 03/01/13 1,000 1,030
-------
21,732
-------
MICHIGAN -- 3.0%
Battle Creek, Downtown
Development Authority, RB
Pre-Refunded @ 102 (C)
7.300%, 05/01/04 1,195 1,406
Greater Detroit, Resource Recovery
Authority, Ser A, RB, AMBAC
5.500%, 12/13/03 1,525 1,624
Jackson County, Hospital Finance
Authority, Foote Memorial
Hospital, Ser A, RB, AMBAC
5.000%, 06/01/06 1,970 2,051
Kent, Hospital Finance Authority,
Blodgett Memorial Medical
Center, Ser A, RB
7.000%, 07/01/01 1,000 1,048
Kent, Hospital Finance Authority,
Spectrun Health Project, Ser A, RB
5.250%, 01/15/07 1,975 2,089
Michigan State, Hospital Finance
Authority, Hospital Charity
Project, Ser D, RB Mandatory
Put 11/01/04 @ 100 (B)
4.800%, 11/01/17 4,225 4,310
41
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
SEI TAX EXEMPT TRUST -- AUGUST 31, 1998
INTERMEDIATE-TERM MUNICIPAL PORTFOLIO--CONTINUED
- ------------------------------------------------------------
FACE MARKET
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Michigan State, Housing
Development Authority,
Ser A, RB Callable
06/01/02 @ 102 (E)
6.800%, 12/01/12 $1,000 $ 1,069
State Building Authority, Ser I, RB,
AMBAC
5.500%, 10/01/05 1,500 1,622
State Housing Development
Authority, RB
0.000%, 04/01/15 2,550 363
-------
15,582
-------
MINNESOTA -- 0.4%
Maplewood, Health Care Facilities,
Health East Project, RB
Callable 11/15/01 @ 102
5.700%, 11/15/02 1,740 1,825
-------
MISSISSIPPI -- 0.8%
Mississippi Home Corporation,
Single-Family Home Project,
Ser D, RB (A) (E)
5.178%, 07/01/12 1,450 1,647
Mississippi State, Hospital
Equipment & Facility Authority,
Rush Medical Foundation
Project, RB (E)
5.400%, 01/01/07 1,630 1,707
Mississippi State, Single-Family
Housing Authority, Ser A, RB,
GNMA/FNMA (F)
5.125%, 12/01/17 905 923
-------
4,277
-------
MISSOURI -- 0.5%
University, Health Facility,
University Missouri Health
Systems Project, Ser A, RB,
AMBAC
5.000%, 11/01/07 2,305 2,420
-------
NEBRASKA -- 0.4%
Nebraska State, Public Power District
Authority, Ser B, RB, MBIA
5.250%, 01/01/08 2,070 2,215
-------
NEW JERSEY -- 1.8%
Camden County, Improvements
Authority, Cooper Health Care
Redevelopment Project, RB
5.500%, 02/15/02 1,000 1,033
- ------------------------------------------------------------
FACE MARKET
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Hudson County, Improvement
Authority, Hudson County
Lease Project, RB, FGIC (E)
5.000%, 10/01/04 $2,150 $ 2,247
Jersey City, State Operated School
Districts, COP, MBIA
5.000%, 06/01/02 3,925 4,057
New Jersey, Economic Development
Authority, United Water NJ Inc.
Project, Ser B, RB, AMBAC (A)
3.050%, 09/01/98 1,000 1,000
New Jersey State, Housing and
Mortgage Finance Home Buyer,
Ser C, RB, MBIA
Callable 10/01/99 @ 102
7.375%, 10/01/17 1,000 1,044
-------
9,381
-------
NEW MEXICO -- 0.5%
Farmington, Hospital,
San Juan Regional Medical
Center, Ser A, RB, AMBAC
5.000%, 06/01/05 1,110 1,154
Mortgage Finance Authority, Single
Family Mortgage, Ser A-1, RB
Callable 07/01/02 @ 102 (E)
6.850%, 07/01/10 870 930
Santa Fe, Saint Vincent's Hospital
Project, RB, FGIC
Pre-Refunded @ 100 (C)
7.500%, 07/01/02 655 722
-------
2,806
-------
NEW YORK -- 15.3%
Long Island, Power Authority,
Electric Systems Project,
Sub Series 6, RB (A)
3.300%, 09/01/98 5,300 5,300
Metropolitan Transportation
Authority, Commuter Facilities
Project, Ser A, RB
5.000%, 07/01/06 2,000 2,078
Metropolitan Transportation
Authority, Commuter Facilities
Project, Ser O, RB
5.750%, 07/01/06 4,150 4,513
Municipal Assistance Corporation,
City of New York, Ser G, RB
6.000%, 07/01/07 1,500 1,695
Municipal Assistance Corporation,
City of New York, Ser H, RB
6.250%, 07/01/07 2,300 2,642
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
42
<PAGE>
- --------------------------------------------------------------------------------
- ------------------------------------------------------------
FACE MARKET
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Municipal Assistance Corporation,
City of New York, Ser I, RB
6.250%, 07/01/06 $3,925 $ 4,465
Municipal Assistance Corporation,
City of New York, Ser M, RB
5.250%, 07/01/05 5,000 5,350
New York City,
Sub Series E5, GO (A) (E)
3.300%, 09/01/98 2,100 2,100
New York State, Dormitory
Authority, Bronx & Lebanon
Hospital Center Project,
Ser E, RB
5.125%, 02/15/06 3,650 3,773
New York State, Dormitory
Authority, Hospital and
Nursing Home Project,
Ser A, RB, AMBAC
5.000%, 08/15/06 1,315 1,374
New York State, Dormitory
Authority, Mental Health
Services Project, Ser B, RB
5.000%, 02/15/06 1,000 1,038
New York State, Dormitory
Authority, Mental Health
Services Project, Ser C, RB
Callable 02/15/08 @ 102
5.375%, 08/15/08 1,150 1,223
New York State, Dormitory
Authority, New York & Presbyterian
Hospital Project, RB, AMBAC
5.500%, 08/01/08 1,510 1,646
New York State, Dormitory
Authority, North Shore
University Hospital Authority
Project, RB, MBIA
5.000%, 11/01/08 1,250 1,311
New York State, Ser F, GO
5.000%, 09/15/04 1,900 1,993
New York State, Dormitory
Authority, Sound Shore
Project, RB, MBIA FHA
4.350%, 02/01/08 5,000 5,000
New York State, Dormitory
Authority, Staten Island
University Hospital Project,
RB, AMBAC
5.250%, 07/01/06 2,695 2,867
5.250%, 07/01/07 1,200 1,281
4.400%, 08/01/13 2,070 2,132
New York, Sub Series E4, GO (A)
3.300%, 09/01/98 400 400
- ------------------------------------------------------------
FACE MARKET
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
New York, Ser A, GO, FGIC
5.250%, 08/01/08 $3,300 $ 3,531
New York, Ser B, GO, MBIA
5.600%, 08/15/06 4,150 4,518
New York, Ser I, GO, AMBAC
5.750%, 03/15/07 1,000 1,101
New York, Sub Series E6, GO
FGIC (A)
3.300%, 09/01/98 900 900
State Dormitory Authority,
Department of Health, RB
5.500%, 07/01/03 1,000 1,060
State Dormitory Authority,
Mental Hospital, Ser E, RB,
AMBAC
6.000%, 08/15/05 2,000 2,210
State Dormitory Authority, Beth
Israel Medical Center, Ser A,
RB, MBIA
5.000%, 11/01/07 1,065 1,118
State Dormitory Authority, State
University Educational
Facility, Ser A, RB
5.500%, 05/15/09 4,400 4,747
State Medical Care Facility Finance
Agency, Adult Day Care,
Ser C, RB
5.350%, 11/15/05 805 856
State Medical Care Facility Finance
Agency, Ser C, RB, FHA
5.200%, 08/15/05 375 394
State Medical Care Facility Finance
Agency, St. Lukes, Ser A, RB
Callable 08/15/03 @ 102 FHA
5.600%, 08/15/13 1,975 2,076
State Urban Development
Corporation, Center for
Individual Innovation Project, RB
6.250%, 01/01/09 1,325 1,502
State Urban Development
Corporation, Correctional
Facilities, Ser G, RB
Pre-Refunded @ 102(C)
7.100%, 01/01/00 2,500 2,656
-------
78,850
-------
NORTH CAROLINA -- 1.4%
Charlotte, GO
5.250%, 02/01/04 1,830 1,944
Eastern Municipal Power Agency,
Ser A, RB, MBIA
5.500%, 01/01/04 1,000 1,059
43
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
SEI TAX EXEMPT TRUST -- AUGUST 31, 1998
INTERMEDIATE-TERM MUNICIPAL PORTFOLIO--CONTINUED
- ------------------------------------------------------------
FACE MARKET
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
North Carolina, Medical Care
Community Hospital, Bond
Pitt County Memorial Hospital,
Ser A, RB
5.000%, 12/01/06 $4,100 $ 4,268
-------
7,271
-------
OHIO -- 5.3%
Cincinnati, City School District,
Ser C, TRAN, AMBAC
5.000%, 12/01/01 1,000 1,036
Columbus, Ser B, GO
5.250%, 05/15/07 3,000 3,240
Dayton, Special Facilities, Air
Freight Project, RB
6.050%, 10/01/09 1,000 1,081
Lucas County, GO
5.300%, 12/01/05 2,100 2,242
Ohio State, Building Authority,
Adult Correctional Building
Project, Ser A, RB
5.500%, 04/01/07 4,345 4,714
Ohio State, Building Authority,
Das Data Center Project,
Ser A, RB
5.125%, 10/01/02 1,055 1,099
Ohio State, Building Authority,
State Administration Building
Project, Ser A, RB
5.125%, 10/01/07 2,305 2,446
Ohio State, Building Authority,
State Correctional Facility,
Ser A, RB
5.125%, 10/01/01 2,110 2,184
Ohio State, Highway Capital
Improvements Project, Ser B, GO
4.250%, 05/01/99 1,950 1,960
State Building Authority,
Administration Building Fund,
Ser A, RB
5.500%, 10/01/07 1,700 1,851
State Building Authority,
Correctional Facilities, Ser A, RB
5.000%, 10/01/03 2,000 2,088
State Elementary & Secondary
Education Facility, RB
5.100%, 12/01/05 1,790 1,904
Strongsville, City School District,
GO, MBIA
5.300%, 12/01/10 1,050 1,135
-------
26,980
-------
- ------------------------------------------------------------
FACE MARKET
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
OKLAHOMA -- 2.3%
Central Oklahoma Transportation
& Parking Authority,
Ser 1973, RB (D)
6.000%, 07/01/03 $ 130 $ 137
McAlester Public Works Authority,
RB, FSA
8.100%, 12/01/08 875 1,147
Oklahoma State, Capital
Improvements Authority,
Highway Capital Improvements
Project, RB, MBIA
5.000%, 06/01/06 5,260 5,569
Oklahoma State, Turnpike
Authority, Turnpike Project,
Ser A, RB, FGIC
5.500%, 01/01/07 2,000 2,188
State Industrial Development
Authority, Integris Health,
RB, AMBAC
5.250%, 08/15/06 1,255 1,343
Tulsa, Industrial Development
Authority, St. Johns Medical
Center, RB (D)
6.875%, 01/01/02 340 357
Tulsa Port, Industrial Development
Authority, Cargill Inc. Project, RB
5.350%, 09/01/06 1,000 1,076
-------
11,817
-------
OREGON -- 0.4%
Cow Creek Band, Umpqua Tribe of
Indians, Ser B, RB, AMBAC
Callable 07/01/03 @ 103
5.100%, 07/01/12 2,000 2,013
-------
PENNSYLVANIA -- 4.1%
Allegheny County, Hospital
Development Authority, UPMC
Health System Project, RB, MBIA
5.000%, 11/01/06 2,145 2,250
Allegheny County, University
Pennsylvania Medical Center
Project, Ser B, RB, MBIA
5.250%, 07/01/07 1,760 1,870
Delaware County, Health Systems
Authority, Catholic Health East
Project, Ser A, RB, AMBAC
5.500%, 11/15/07 1,635 1,772
Easton Joint School
Authority, RB (D)
5.350%, 04/15/02 150 153
Erie County, Ser A, GO, FGIC
6.600%, 09/01/05 1,000 1,078
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
44
<PAGE>
- --------------------------------------------------------------------------------
- ------------------------------------------------------------
FACE MARKET
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Lehigh County, General Purpose
Authority, Kidspeace Obligation
Group Project, RB
Callable 11/01/08 @ 102 (E)
5.700%, 11/01/09 $ 1,000 $ 1,089
Lehigh County, General Purpose
Authority, Lehigh Valley Hospital
Project, Ser A, RB, AMBAC (A)
3.250%, 09/01/98 900 900
Montgomery County, Higher
Education & Health Authority,
Abington Memorial Hospital
Project, Ser A, RB, AMBAC
5.000%, 06/01/08 1,000 1,041
Newcastle Hospital Authority,
Jameson Memorial Hospital,
RB, MBIA
5.500%, 07/01/08 1,605 1,735
Pennsylvania, Housing Financial
Authority, Single-Family Mortgage
Project, Ser 34A, RB, FHA
Callable 04/01/02 @ 102
6.850%, 04/01/16 1,000 1,065
Pittsburgh, Water & Sewer Authority,
Ser A, RB Pre-Refunded @ 100,
FGIC (C)
6.000%, 09/01/01 2,000 2,123
Scranton-Lackawanna, Health &
Welfare Authority, Hospital
Community Medical Center
Project, RB, MBIA
5.500%, 07/01/07 2,585 2,795
State Higher Education Facility
Authority, Allegheny/Delaware
Valley, Ser A, RB, MBIA
5.500%, 11/15/08 1,500 1,560
State Industrial Development
Authority, RB, AMBAC
7.000%, 07/01/07 1,000 1,190
Westmoreland County, Municipal
Authority, Special Obligation,
GO (D)
9.125%, 07/01/10 390 466
-------
21,087
-------
PUERTO RICO -- 0.2%
Municipal Finance Agency,
Ser A, RB, FSA
6.000%, 07/01/05 1,000 1,111
-------
- ------------------------------------------------------------
FACE MARKET
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
RHODE ISLAND -- 0.5%
Rhode Island, Housing & Mortgage
Financial Corporation,
Homeownership Opportunity
Project, Ser 25A, RB
Callable 10/01/07 @ 101.5
4.950%, 10/01/16 $2,750 $ 2,808
-------
SOUTH CAROLINA -- 0.8%
Jobs Economic Development
Authority, St. Francis Hospital,
RB (A) (E)
3.375%, 09/01/98 1,760 1,760
Public Service Authority, Ser B,
RB Callable 07/01/01 @ 102
6.700%, 07/01/02 1,220 1,330
Spartanburg County, School
District No. 5, COP, MBIA
5.400%, 07/01/08 1,000 1,078
-------
4,168
-------
SOUTH DAKOTA -- 0.4%
Health & Educational Facilities
Authority, RB, MBIA
6.000%, 07/01/08 1,025 1,156
Housing Development Authority,
Homeownership Mortgage,
Ser A, RB
5.500%, 05/01/10 920 952
-------
2,108
-------
TENNESSEE -- 1.8%
Chattanooga, Health Educational
& Housing Facilities Board,
Catholic Health Initiatives
Project, Ser A, RB
5.000%, 12/01/00 1,070 1,095
5.000%, 12/01/01 1,000 1,031
Hendersonville, Industrial
Development Authority,
Ashford 83 Association
Project, RB
5.950%, 12/15/08 1,430 1,537
Metropolitan Government Nashville
and Davidson County, Health &
Education Facilities Board,
Baptist Hospital Inc. Project,
Ser A, RB, MBIA
5.500%, 11/01/07 2,000 2,175
45
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
SEI TAX EXEMPT TRUST -- AUGUST 31, 1998
INTERMEDIATE-TERM MUNICIPAL PORTFOLIO--CONTINUED
- ------------------------------------------------------------
FACE MARKET
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Metropolitan Government Nashville
and Davidson County, Health &
Education Facilities Board,
Vanderbilt University Project,
Ser A, RB
5.500%, 05/01/06 $ 500 $ 538
6.000%, 05/01/07 1,200 1,340
Metropolitan Nashville, Airport
Special Facilities, American
Airlines Project, Ser B, RB (A) (E)
3.375%, 09/01/98 300 300
Tennessee, Housing Development
Agency, Homeownership
Program, RB
5.800%, 07/01/00 1,020 1,048
------
9,064
------
TEXAS -- 8.0%
Austin, Independent School
District, GO (D)
9.000%, 07/01/99 645 674
Austin, Utility Systems Authority,
Combination Project,
Ser A, RB, FSA
5.750%, 11/15/03 3,295 3,563
Austin, Utility Systems, Ser B, RB
Callable 11/15/98 @ 102
7.250%, 11/15/03 1,175 1,206
7.750%, 11/15/08 600 617
Brazos, River Authority, Houston
Industries Project, Ser C, RB
Callable 05/01/08 @ 102
5.125%, 05/01/19 1,500 1,506
Cedar Hill, Independent School
District, RB (E)
6.450%, 08/15/03 2,225 2,470
Deer Park, Independent School
District, GO (E)
6.000%, 02/15/06 1,500 1,673
5.875%, 02/15/08 1,500 1,676
Department of Housing &
Community Affairs, Single-
Family, Ser B-CL2, RB
Callable 09/01/06 @ 102
5.550%, 09/01/11 4,170 4,316
Donna, Independent School
District, GO (E)
5.250%, 02/15/05 1,135 1,206
5.500%, 02/15/06 1,180 1,279
- ------------------------------------------------------------
FACE MARKET
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Fort Worth, Water and Sewer
Improvement, RB
5.500%, 02/15/06 $1,080 $ 1,164
Grapevine, Industrial Development
Authority, American Airlines
Project, Ser A2, RB (A) (E)
3.375%, 09/01/98 500 500
Harris County, GO
10.000%, 10/01/00 1,850 2,077
7.000%, 10/01/01 2,000 2,180
Harris County, Health Facilities
Development Authority, Memorial
Hospital Systems Project,
Ser A, RB
6.000%, 06/01/09 1,825 2,065
Houston, Housing Finance
Corporation, Single-Family
Mortgage, Ser B-1, RB
Callable 12/01/06 @ 102
8.000%, 06/01/14 1,000 1,105
La Porte, Independent School
District, GO (E)
6.000%, 02/15/03 1,000 1,081
Lone Star, Airport Authority,
Ser A, RB (A) (E)
3.375%, 09/01/98 430 430
Lone Star, Airport Improvement
Authority, RB (A)
3.375%, 09/01/98 900 900
Lone Star, Airport Improvement
Authority, RB (A) (E)
3.375%, 09/01/98 400 400
Lone Star, Airport Improvement
Authority, Ser A1,
RB (A) (C)
3.375%, 09/01/98 300 300
Mission, Independent School
District, GO (E)
6.500%, 02/15/03 1,215 1,338
North Central, Health Facility
Development Corporation,
Presbyterian Medical Center
Project, Ser D, RB, MBIA (A) (E)
3.375%, 09/01/98 200 200
North Texas, Health Facility
Development Corporation,
United Regional Health Care
System Inc. Project, RB
5.250%, 09/01/05 2,225 2,356
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
46
<PAGE>
- --------------------------------------------------------------------------------
- ------------------------------------------------------------
FACE MARKET
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
State Department of Housing &
Community Affairs, Single-
Family Mortgage, Zero Coupon,
RB Callable 09/01/04 @ 49.528
0.000%, 03/01/15 $1,010 $ 335
Texas State, Department Housing
and Community Affairs,
Ser E, RB, MBIA
4.500%, 03/01/07 860 871
Texas State, Public Finance
Authority, Ser A, RB, AMBAC
6.000%, 08/01/02 1,000 1,075
Texas State, Ser B, GO
5.000%, 10/01/01 1,000 1,035
Tyler, Health Facilities Development
Corporation, East Texas Medical
Center Project, Ser C, RB, FSA
5.000%, 11/01/07 1,000 1,049
------
40,647
------
UTAH -- 0.5%
Salt Lake City Airport, RB,
FGIC
7.400%, 06/01/00 535 559
State Housing Finance Agency,
Single-Family Mortgage, Issue B,
RB, FHA Callable 07/01/03 @ 102
5.125%, 07/01/24 735 752
Utah State, Board Regents Authority,
University of Utah Hospital
Project, RB
5.250%, 08/01/07 1,360 1,440
------
2,751
------
VIRGIN ISLANDS -- 0.5%
Virgin Islands, Public Financial
Authority, Federal Lein Notes,
Ser C, RB
5.500%, 10/01/06 2,375 2,488
------
VIRGINIA -- 1.1%
Hampton, Sentara Health System,
Ser A, RB
5.375%, 11/01/10 1,000 1,073
Kanawha County, Industrial
Development Authority,
Topvalco Inc. Project
(Kroger Co.), RB
7.125%, 11/02/12 1,160 1,315
- ------------------------------------------------------------
FACE MARKET
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
State Housing Development
Authority, Multi-Family
Housing, Ser H, RB
5.250%, 05/01/03 $ 685 $ 719
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 05/01/99 @ 19.155
0.000%, 11/01/17 2,200 401
Virginia State, Housing
Development Authority,
Commonwealth Mortgage
Project, Sub Series C, RB
Callable 01/01/02 @ 102
6.500%, 07/01/07 500 536
Virginia State, Peninsula Port
Authority, Dominion Terminal
Project, Ser 1987C, RB (A) (E)
3.375%, 09/01/98 400 400
------
5,772
------
WASHINGTON -- 2.3%
Clark County, Public Utility
District No. 001, RB, FGIC
6.000%, 01/01/04 2,525 2,749
Grant County, Public Utility
District No. 2, RB
5.625%, 01/01/07 2,470 2,671
King County, Ser D, GO
5.250%, 12/01/04 1,000 1,069
Washington State, Health Care
Facilities Authority, Virginia
Mason Medical Center
Project, Ser B, RB, MBIA
3.375%, 09/01/98 700 700
Washington State, Public Power
Supply Authority, Nuclear
Power Project, Ser A, RB
6.000%, 07/01/07 1,450 1,620
Washington State, Public Power
Supply Authority, Nuclear
Project, Ser A, RB
5.000%, 07/01/05 3,000 3,135
------
11,944
------
47
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
SEI TAX EXEMPT TRUST -- AUGUST 31, 1998
INTERMEDIATE-TERM MUNICIPAL PORTFOLIO--CONCLUDED
- ------------------------------------------------------------
FACE MARKET
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
WEST VIRGINIA -- 0.4%
State Building Community Lottery,
Ser A, RB, MBIA
5.500%, 07/01/05 $2,100 $ 2,260
--------
WISCONSIN -- 2.7%
Housing & Economic Development
Authority, Homeownership,
Ser 1, RB, FHA
Callable 07/01/02 @ 102
6.600%, 09/01/07 1,300 1,391
Public Power Inc., Power Supply
Systems, Ser A, RB,
Pre-Refunded @ 102,
AMBAC (C)
6.875%, 07/01/21 2,000 2,198
Wisconsin State, Housing and
Economic Development
Authority, Homeownership
Project, Ser B, RB
Callable 09/01/99 @ 102
7.600%, 03/01/15 2,465 2,592
Wisconsin State, Transportation
Authority, Ser A, RB
5.000%, 07/01/05 4,040 4,224
5.000%, 07/01/06 3,500 3,656
--------
14,061
--------
WYOMING -- 0.2%
Wyoming Student Loan
Corporation, RB
6.250%, 12/01/99 1,000 1,023
--------
Total Municipal Bonds
(Cost $514,769) 529,712
--------
Total Investments -- 102.6%
(Cost $514,769) 529,712
--------
Other Assets and Liabilities, Net -- (2.6%) (13,388)
--------
- ------------------------------------------------------------
FACE MARKET
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
NET ASSETS:
Portfolio Shares of Class A (unlimited
authorization -- no par value) based
on 46,598,393 outstanding shares
of beneficial interest $501,743
Undistributed net investment income 71
Accumulated net realized loss
on investments (433)
Net unrealized appreciation
on investments 14,943
--------
TOTAL NET ASSETS -- 100.0% $516,324
========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE -- CLASS A $11.08
========
AMBAC AMERICAN MUNICIPAL BOND ASSURANCE COMPANY
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
TA TAX ALLOCATION
TRAN TAX & REVENUE ANTICIPATION NOTE
(A) FLOATING RATE SECURITY -- THE RATE REFLECTED ON THE STATEMENT OF NET ASSETS
IS THE RATE IN EFFECT ON AUGUST 31, 1998.
(B) MANDATORY REDEMPTION -- THE DATE REPORTED ON THE STATEMENT OF NET ASSETS
IS THE MANDATORY REDEMPTION DATE.
(C) PRE-REFUNDED SECURITY -- THE MATURITY DATE SHOWN 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.
(F) SECURITIES ARE COLLATERALIZED UNDER AN AGREEMENT FROM FNMA/GNMA.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
48
<PAGE>
- --------------------------------------------------------------------------------
PENNSYLVANIA MUNICIPAL BOND PORTFOLIO
- ------------------------------------------------------------
FACE MARKET
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
MUNICIPAL BONDS -- 98.9%
PENNSYLVANIA -- 98.9%
Allegheny County, Hospital
Development Authority,
Harmarville Rehabilitation
Center, RB (C)
6.000%, 10/01/08 $ 190 $ 205
Allegheny County, Hospital
Development Authority,
Montefiore Hospital, RB (C)
6.875%, 07/01/09 645 725
Allegheny County, Hospital
Development Authority, North
Hills Passavant, RB (C)
6.750%, 07/01/05 80 88
Allegheny County, Hospital
Development Authority,
St. Margaret Memorial, RB (C)
6.750%, 07/01/10 1,350 1,529
Allegheny County, Hospital
Development Authority,
Allegheny General Hospital,
RB (C)
6.750%, 05/01/04 120 129
Allegheny County, Industrial
Development Authority, RB
Mandatory Put 12/01/00 (B)
5.250%, 12/01/14 25 26
Allegheny County, Industrial
Development Authority,
RB, AMT (B)
6.000%, 10/01/04 150 150
Allegheny County, Residential
Financial Authority Mortgage
Revenue, Single-Family,
Ser CC-1, RB, GNMA (D)*
4.950%, 05/01/10 280 280
4.950%, 11/01/10 285 285
Allegheny County, Sanitation
Authority, RB (C)
6.800%, 07/01/03 145 158
Allentown, Hospital Authority,
Sacred Heart Hospital, RB (C)
8.000%, 03/01/09 275 326
Altoona, Area School District
Authority, Blair County, Ser 78,
RB, Pre-Refunded @ 100 (A)
6.500%, 07/01/06 245 273
Altoona, Area School District, GO (C)
6.500%, 07/01/04 105 118
- ------------------------------------------------------------
FACE MARKET
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Altoona, School District, RB (C)
6.250%, 01/01/03 $ 5 $ 5
Armstrong School District, GO,
MBIA (C)
7.750%, 12/01/04 70 79
Baldwin, Whitehall School Building
Revenue, RB (C)
6.625%, 11/15/02 55 55
Baldwin, Whitehall School
District, RB Partially
Pre-Refunded @ 100 (A)
6.700%, 11/15/03 105 122
Bensalem Township Water &
Sewer Authority, RB (C)
6.750%, 12/01/14 280 322
Berks County, Industrial
Development Authority,
Construction Fasteners Project,
RB, AMT (B)
5.400%, 12/01/03 25 25
Blair County, Hospital
Authority, RB (C)
6.900%, 07/01/08 1,235 1,391
Blairsville-Saltsburg, School
District, GO, AMBAC (C)
9.000%, 05/15/03 50 57
Borough of Tarentum, Electric
Revenue, Ser-A, RB, Asset Guaranty
5.500%, 09/01/08 645 668
Bucks County, Industrial
Development Authority, RB (C)
8.750%, 09/01/04 85 98
Bucks County, Redevelopment
Authority, Warminster Heights,
Section 8, RB, FHA
6.250%, 08/01/02 255 266
Butler Area Sewer Authority,
Sewer Revenue, RB
Pre-Refunded @ 100 (A)
7.250%, 01/01/04 265 294
Butler County, Industrial
Development Authority, RB (B)
4.900%, 11/01/03 700 725
Cambria County, Hospital Authority,
Conemaugh Valley Memorial
Hospital, RB (C)
7.625%, 09/01/11 245 294
Cambria County, GO, FGIC
5.000%, 08/15/08 475 500
4.600%, 08/15/09 180 182
Chester County, Hospital Authority,
Paoli Memorial Hospital, RB (C)
5.500%, 02/01/03 140 145
49
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
SEI TAX EXEMPT TRUST -- AUGUST 31, 1998
PENNSYLVANIA MUNICIPAL BOND PORTFOLIO--CONTINUED
- ------------------------------------------------------------
FACE MARKET
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Chester County, Health and
Educational Facility Authority,
Immaculata College Project, RB
5.000%, 10/15/06 $ 325 $ 327
5.250%, 10/15/10 345 347
Chester County, Health and Education
Facility Authority, Jefferson
Health Systems Project, Ser B,
RB, AMBAC
4.700%, 05/15/05 275 283
Cresswell Heights, Joint Water
Authority Revenue, RB (C)
7.375%, 03/01/07 85 97
Cumberland Valley, School Project,
RB, MBIA (C)
6.400%, 11/15/01 30 31
Dauphin County, General
Authority, Phoenixville Hospital
Project, Ser A, RB, FGIC
5.900%, 07/01/05 845 932
Dauphin County, General
Authority, RB, Mandatory
Put 06/03/02 @ 100
6.600%, 06/01/26 50 50
Dauphin County, General School
Authority, Penncrest School
Project, RB Mandatory
Put 06/02/03 @ 100
6.600%, 06/02/26 915 992
Dauphin County, General Authority
School District, Ser QQQ2, RB
Mandatory Put 06/02/03 @ 100
AMBAC
4.625%, 06/01/26 1,015 1,015
Dauphin County, General School
Authority, RB Mandatory
Put 06/01/04 @ 100
6.700%, 06/01/26 1,220 1,322
Delaware County, Authority
Hospital, Crozer-Chester Medical
Center Project, RB, ACA Insured (C)
4.850%, 12/01/07 645 653
4.900%, 12/01/08 550 558
Delaware County, Revenue
Authority, Elwyn Project, RB
Connie Lee
6.000%, 06/01/11 3,250 3,591
Delaware County, University
Revenue Authority, Villanova
University, RB (C)
9.625%, 08/01/02 185 207
- ------------------------------------------------------------
FACE MARKET
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Delaware River, Port Authority of
Pennsylvania and New Jersey,
Delaware Bridges, RB (C)
6.000%, 01/15/10 $ 70 $ 76
6.500%, 01/15/11 145 163
Delaware River Port Authority,
RB (C)
6.000%, 01/15/10 105 114
Derry Township, Sanitation Sewer
Authority, RB (C)
6.250%, 08/01/12 55 60
Downingtown, Municipal Water
Authority, RB, FSA
4.750%, 09/01/10 325 329
Easton, Area School Authority, GO (C)
6.250%, 04/15/02 85 92
Economy Municipal Authority,
Sewer Revenue, RB
6.000%, 12/15/03 55 56
Erie County, Higher Education
Authority, Mercyhurst College
Project, RB
5.700%, 03/15/11 85 89
Erie County, Hospital Authority,
Erie County Geriatric, RB (C)
6.750%, 07/01/11 600 693
Erie County, Hospital Authority,
Geriatric, RB (C)
6.250%, 07/01/11 120 134
Erie County, Hospital Authority,
Hamot Health Project, RB,
AMBAC
5.000%, 05/15/07 1,890 1,973
Erie County, Hospital Authority,
Hamot Medical Center
Project, RB (C)
6.900%, 01/01/05 285 312
Erie, Higher Education Building
Authority, Mercyhurst College
Project, RB
5.650%, 03/15/10 180 189
5.750%, 03/15/13 3,000 3,098
Fayette County, Hospital Authority,
Uniontown Hospital, RB,
Connie Lee
5.100%, 06/15/03 1,065 1,113
5.200%, 06/15/04 100 105
5.300%, 06/15/05 1,000 1,065
5.450%, 06/15/07 740 796
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
50
<PAGE>
- --------------------------------------------------------------------------------
- ------------------------------------------------------------
FACE MARKET
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Financing Authority, Municipal
Capital Improvements Program, RB
6.600%, 11/01/09 $1,320 $1,455
Franklin Hospital, Special
Obligation, RB (C)
7.125%, 10/01/08 85 97
Greene County, Industrial
Development Authority,
Monongahela Power Company
Project, Ser B, RB
4.750%, 02/01/07 935 946
Greene County, Industrial
Development Authority, West
Penn Power Company, RB
4.750%, 02/01/07 1,900 1,921
Harrisburg, GO (C)
7.400%, 06/15/04 215 240
Harrisburg, Ser A, GO, MBIA (C)
9.750%, 04/15/04 110 133
Hazleton, Area School District
Authority, Ser B, GO, FGIC
4.550%, 03/01/06 155 158
4.750%, 03/01/08 175 180
4.900%, 03/01/09 175 181
Hazleton, Area School District
Authority, Ser C, GO, FGIC
4.650%, 03/01/07 100 103
Hickory Township, Municipal
Authority, Sewer Revenue, RB (C)
6.250%, 02/01/14 320 357
Higher Education Assistance
Agency, Ser A, RB, AMT, AMBAC
7.050%, 10/01/16 3,500 3,697
Higher Education Authority,
Ser 1995, RB, Asset Guaranty
4.750%, 09/15/02 270 276
4.850%, 09/15/03 250 257
4.950%, 09/15/04 515 533
5.150%, 09/15/06 345 360
Higher Education Facilities
Authority, College & University
Revenue, Ser 10, RB (C)
6.900%, 07/01/07 125 138
Higher Education Facilities
Authority, College of Textiles
& Science, RB
5.450%, 02/01/07 200 207
- ------------------------------------------------------------
FACE MARKET
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Higher Education, College of
Textiles & Science, Ser 1996, RB
6.050%, 04/01/03 $ 240 $ 254
6.150%, 04/01/04 250 268
6.250%, 04/01/05 265 287
6.350%, 04/01/06 285 311
6.450%, 04/01/07 295 322
6.550%, 04/01/08 320 350
6.600%, 04/01/09 340 371
Housing Finance Agency, RB (C)
7.750%, 12/01/07 85 97
Housing Finance Agency, Rental
Housing, Ser 91, RB,
FHA/FNMA (D)
5.450%, 07/01/06 2,000 2,120
Housing Finance Agency,
Ser 1991-31A, RB, AMT
6.800%, 10/01/17 485 515
Housing Finance Agency, Single-
Family Mortgage, RB, AMT
7.800%, 10/01/20 80 84
Hummelstown, Municipal Authority,
RB Pre-Refunded @ 100 (A)
5.700%, 01/01/02 40 42
Jefferson County, Municipal
Authority, RB, MBIA (C)
7.000%, 12/01/02 20 22
Jersey Shore, Area School
District, GO, MBIA (C)
9.375%, 03/01/03 185 213
Lancaster, Sewer Authority, RB (C)
6.000%, 04/01/12 140 152
Lehigh County, General Purpose
Authority, Muhlenberg Medical
Center Project, RB (C)
7.000%, 07/01/04 100 110
Lehigh County, General Purpose
Authority, Kidspeace Corporation
Project, RB, ACA Insured
5.800%, 11/01/12 1,265 1,376
Lehigh County, General Purpose
Authority Revenue, Saint Lukes
Hospital Bethlehem Project,
RB, AMBAC
5.300%, 11/15/07 450 475
Lehigh County, GO, FGIC
5.100%, 11/15/07 200 209
Lower Pottsgrove Township, Sewer
Authority, RB (C)
6.250%, 05/01/12 130 144
51
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
SEI TAX EXEMPT TRUST -- AUGUST 31, 1998
PENNSYLVANIA MUNICIPAL BOND PORTFOLIO--CONTINUED
- ------------------------------------------------------------
FACE MARKET
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Luzerne County, Ser 91, GO, FGIC
6.800%, 09/15/02 $ 500 $ 541
Lycoming County, Hospital
Authority, Williamsport Hospital,
RB, Connie Lee
5.250%, 11/15/06 1,300 1,381
McCandless Township, Sanitation
Authority, Sewer Project, RB (C)
6.500%, 09/01/05 95 104
6.750%, 11/15/05 315 351
Monroeville, Water Authority,
RB (C)
7.250%, 12/01/08 40 45
Montgomery County, Industrial
Development Authority, Health
Facilities, Ecri Project, RB
6.850%, 06/01/13 2,115 2,252
Montgomery County, GO (C)
9.000%, 08/15/04 30 34
Moon, Area School District, GO,
MBIA (C)
10.000%, 05/15/99 20 21
Mount Lebanon, Hospital Authority,
RB (C)
7.000%, 07/01/06 561 625
New Brighton, Area School
Authority, RB, MBIA (C)
5.850%, 11/15/02 25 26
New Castle, Hospital Authority,
Jameson Memorial Hospital
Project, RB, MBIA
6.000%, 07/01/10 315 354
Northampton County, Industrial
Development Authority, Moravian
Hall Square Project, Ser B, RB,
Asset Guaranty
5.350%, 07/01/10 1,370 1,420
Northampton County, Industrial
Development Authority, Moravian
Hall Square Project, Ser A, RB,
Asset Guaranty
5.350%, 07/01/10 100 104
Northampton, Bucks County
Municipal Authority Water, RB, (C)
6.750%, 11/01/13 55 61
Northeast Allegheny County, RB (C)
6.000%, 05/01/02 40 41
Northeastern Hospital Authority,
Hospital Revenue, RB (C)
7.000%, 06/01/06 380 422
6.375%, 09/01/07 195 215
- ------------------------------------------------------------
FACE MARKET
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Northgate, School Authority School
Building, RB, MBIA (C)
6.375%, 02/15/07 $ 95 $ 109
Owen J. Roberts School District,
Ser-A, GO, MBIA
5.150%, 05/15/11 100 104
Pennsylvania Intergovernmental
Co-op Authority, Funding
Program, RB, FGIC
5.500%, 06/15/11 740 785
Pennsylvania State, COP, AMBAC
5.400%, 07/01/09 1,045 1,086
Pennsylvania State, Higher Education
Authority, Drexel University
Project, RB, MBIA (C)
10.250%, 05/01/03 90 105
Pennsylvania State, Higher
Education Authority, Drexel
University Project, Second
Ser, RB, MBIA
4.500%, 05/01/06 870 884
Pennsylvania State, Higher Education
Facilities Authority, College
and University Project, RB (C)
7.625%, 07/01/15 65 80
Pennsylvania State, Higher
Education Facilities Authority,
Health Services Allegheny
Delaware Valley, Ser A, RB, MBIA
5.600%, 11/15/09 250 261
5.600%, 11/15/10 1,000 1,038
Pennsylvania State, Higher
Education Facilities Authority,
Ursinus College Project, RB
5.850%, 01/01/17 1,480 1,536
Pennsylvania State, Housing Finance
Agency, Single-Family Mortgage,
Ser 49, RB, AMT
5.800%, 10/01/07 205 216
Perkiomen, Valley School District,
RB, MBIA (C)
6.500%, 12/01/07 80 93
Peters Township School District, GO,
MBIA (C)
0.000%, 11/15/07 100 66
Philadelphia Gas Works, Fourteenth
Series, RB, FSA
6.250%, 07/01/08 1,000 1,114
Philadelphia, Hospital & Higher
Education Authority, Presbyterian
Medical Center, RB (C)
6.000%, 12/01/03 410 451
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
52
- --------------------------------------------------------------------------------
- ------------------------------------------------------------
FACE MARKET
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Philadelphia Hospital & Higher
Education Facilities, MR
Project, RB
5.500%, 08/01/01 $1,175 $1,206
Philadelphia Hospital, Graduate
Hospital Project, RB (C)
7.000%, 07/01/10 935 1,075
Philadelphia, Industrial Development
Authority, Commercial
Development Red Lion
Association, RB, Optional
Put 12/01/01 @ 100, AMT (B)
5.000%, 12/01/16 1,200 1,200
Philadelphia, Industrial
Development Authority, National
Board of Medical Examiners
Project, RB
6.750%, 05/01/12 950 1,037
Philadelphia, Redevelopment
Authority, Home Improvement
Loan, Ser 95-A, RB, AMT
5.100%, 12/01/01 110 112
Philadelphia, Redevelopment
Authority, Home Improvement,
Ser 95A, RB, AMT
5.100%, 06/01/01 140 143
Philadelphia, Redevelopment
Authority, West Philadelphia
Project, RB, FNMA (D)
6.750%, 05/15/04 620 660
Philadelphia, Redevelopment
Authority, Home Improvement
Loan, Ser 1995A, RB, AMT
5.250%, 06/01/02 200 205
5.250%, 12/01/02 220 226
5.400%, 06/01/03 160 165
5.400%, 12/01/03 185 191
5.550%, 06/01/04 65 68
5.650%, 12/01/05 70 73
6.100%, 12/01/10 1,000 1,056
Philadelphia School District,
Ser 91-B, GO, MBIA
Partially Pre-Refunded @ 101 (A)
7.000%, 07/01/01 250 273
Philadelphia, Water & Sewer
Authority, Ser 10, RB (C)
7.350%, 09/01/04 5,455 6,191
Pittsburgh, Parking Authority,
Ser 92-A, RB, FGIC
5.750%, 12/01/05 500 539
- ------------------------------------------------------------
FACE MARKET
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Pittsburgh, Urban Redevelopment
Authority, Home Improvement
Loans, RB
7.125%, 08/01/04 $ 480 $ 489
Pittsburgh, Urban Redevelopment
Authority, Mortgage Revenue,
Ser 96 D, RB
5.900%, 04/01/08 285 307
Pittsburgh, Urban Redevelopment
Authority, Mortgage Revenue,
Ser A, RB, AMT
5.750%, 10/01/10 55 57
Pittsburgh, Urban Redevelopment
Authority, Ser B, RB
6.700%, 04/01/10 30 31
Pittsburgh, Urban Redevelopment
Center, Triangle Tax Increment,
Ser A, RB (B)
5.750%, 12/01/06 1,980 2,129
Pittsburgh, Urban Redevelopment
Center, Triangle Tax Increment,
Ser B, RB (B)
5.750%, 03/15/06 1,185 1,269
Pittsburgh, Urban Redevelopment
Authority Mortgage Revenue,
Ser 1996C, RB, AMT
5.700%, 10/01/05 240 254
Pittsburgh, Urban Redevelopment
Authority, Mortgage Revenue,
Ser 1996D, RB
5.900%, 10/01/08 290 312
6.000%, 10/01/09 310 333
6.100%, 10/01/10 330 354
Pittsburgh, Urban Redevelopment
Authority, Ser B, RB
5.700%, 10/01/11 110 114
Pittsburgh, Water and Sewer
Authority, RB, FGIC (C)
7.625%, 09/01/04 160 185
Potter County, Hospital Authority,
Charles Cole Memorial, RB,
Asset Guaranty
5.200%, 08/01/03 245 255
5.300%, 08/01/04 325 341
5.400%, 08/01/05 320 339
5.500%, 08/01/06 160 171
Pottsville Hospital Authority,
Hospital & Warner Clinic, RB
6.400%, 07/01/03 930 1,025
53
<PAGE>
STATEMENT OF NET ASSETS/SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
SEI TAX EXEMPT TRUST -- AUGUST 31, 1998
PENNSYLVANIA MUNICIPAL BOND
PORTFOLIO--CONCLUDED
- ------------------------------------------------------------
FACE MARKET
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Quakertown, Hospital Authority,
Community Hospital, RB (C)
7.125%, 01/01/11 $ 100 $ 116
Radnor Township, School Authority,
Ser A, RB (C)
9.000%, 10/15/03 25 28
Robinson Township Water
Authority, RB (C)
5.625%, 05/01/06 33 35
Scranton-Lackawanna, Health &
Welfare Authority, Moses
Taylor Hospital, RB
5.500%, 07/01/04 955 991
5.750%, 07/01/05 1,000 1,043
6.100%, 07/01/09 940 1,002
Scranton-Lackawanna, Health &
Welfare Authority, RB (C)
6.625%, 07/01/09 655 739
Seneca Valley School District,
Ser A, GO, FGIC
5.250%, 07/01/07 200 215
Shaler School District, RB (C)
6.250%, 04/15/08 75 82
Shaler Township, GO (C)
6.400%, 08/01/01 20 21
Somerset County, Hospital
Authority, Somerset Community
Hospital Project, Ser B, RB,
Asset Guaranty
5.300%, 03/01/11 500 516
Southeastern Greene School
District, GO (C)
9.375%, 07/01/03 140 159
Steel Valley School District, GO (C)
6.250%, 11/01/06 110 120
Susquehanna Township Sewer
Authority, RB (C)
6.000%, 11/15/13 50 58
Swissvale Area School District,
GO (C)
6.300%, 12/01/03 85 94
Upper Allegheny, Joint Sanitation
Authority, RB, AMBAC (C)
9.000%, 09/01/00 110 117
Upper Allen Township Sewer
Authority, RB (C)
5.750%, 04/01/13 165 184
Upper Gwynedd-Towamencin
Sewer Authority, RB, MBIA (C)
5.850%, 10/15/06 55 58
- ------------------------------------------------------------
FACE MARKET
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Upper Perkiomen School
District, GO (C)
6.000%, 05/01/04 $ 30 $ 32
Upper St. Clair Township, School
Building Revenue Authority,
RB Pre-Refunded @ 100 (A)
6.625%, 05/15/06 165 190
Washington County, Hospital
Authority, Shadyside Project,
Ser 92, RB, AMBAC
5.875%, 12/15/04 1,000 1,081
Westmoreland County, Industrial
Development Authority, Hospital
Revenue, RB, AMBAC
5.800%, 07/01/04 565 612
Westmoreland County, Industrial
Development Authority, Hospital
Revenue, Ser 92-A, RB, AMBAC
5.900%, 07/01/05 595 647
Westmoreland County, Municipal
Authority, Special Obligation,
GO (C)**
9.125%, 07/01/10 305 364
Wilkes-Barre General Municipal
Authority, Misericordia
College, RB
7.750%, 12/01/12 1,775 1,906
Windber Area Authority, Hospital
Revenue, RB, FHA Pre-Refunded
08/01/05 @ 102 (A)**
5.900%, 08/01/05 350 392
Wyoming County, Hospital
Authority, Tyler Memorial, RB (C)
7.400%, 01/01/05 90 100
Wyoming Valley Sanitation
Authority, RB (C)
5.125%, 07/01/07 100 103
York County, Hospital Authority,
Lutheran Social Services, RB
5.400%, 04/01/04 500 514
5.600%, 04/01/05 500 518
5.800%, 04/01/06 500 523
York Township, Water & Sewer
Authority, RB (C)
5.900%, 08/01/13 50 57
--------
Total Municipal Bonds
(Cost $96,290) 100,270
--------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
54
<PAGE>
- ------------------------------------------------------------
FACE MARKET
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
CASH EQUIVALENT -- 0.4%
Provident Money Market
3.050%, 09/01/98 $427 $ 427
--------
Total Cash Equivalent
(Cost $427) 427
--------
Total Investments -- 99.3%
(Cost $96,717) 100,697
--------
Other Assets and Liabilities, Net -- 0.7% 665
--------
NET ASSETS:
Portfolio Shares of Class A (unlimited
authorization -- no par value) based
on 30,964 outstanding shares of
beneficial interest 332
Portfolio Shares of Class B (unlimited
authorization -- no par value) based
on 9,393,648 outstanding shares of
beneficial interest 96,482
Undistributed net investment income 20
Accumulated net realized gain
on investments 548
Net unrealized appreciation
on investments 3,980
--------
TOTAL NET ASSETS -- 100.0% $101,362
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- CLASS A $10.75
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- CLASS B $10.76
========
*WHEN-ISSUED SECURITY
**SECURITIES SEGREGATED BY CUSTODIAN FOR WHEN-ISSUED SECURITY
AMBAC AMERICAN MUNICIPAL BOND ASSURANCE COMPANY
AMT ALTERNATE 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
GNMA GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
GO GENERAL OBLIGATION
MBIA MUNICIPAL BOND INSURANCE ASSOCIATION
RB REVENUE BOND
(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.
(D) SECURITIES ARE COLLATERALIZED BY GNMA.
- --------------------------------------------------------------------------------
MASSACHUSETTS MUNICIPAL
BOND PORTFOLIO
- ------------------------------------------------------------
FACE MARKET
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
MUNICIPAL BONDS -- 84.1%
MASSACHUSETTS -- 84.1%
Cambridge, GO Callable
08/01/08 @ 101
4.800%, 08/01/12 $ 45 $ 46
Holyoke, GO, FSA
5.500%, 06/15/03 40 43
Lynn, Water & Sewer Community
General, Ser A, RB, FSA
5.875%, 12/01/06 40 44
Malden, GO, MBIA, Callable
08/01/07 @ 101
5.000%, 08/01/10 45 47
Mashpee, GO, MBIA
6.250%, 02/01/07 155 177
Massachusetts Bay Transportation
Authority, General Transportation
System Project, Ser A, RB
5.400%, 03/01/07 45 48
Massachusetts State, Grant
Anticipation Notes, Ser A, RB
5.250%, 12/15/06 45 48
Massachusetts State, Health &
Education Facilities Authority,
Cape Cod Healthcare Project,
Ser B, RB
5.000%, 11/15/07 200 203
Massachusetts State, Health &
Education Facilities Authority,
Daughters-Carney Project,
RB, MBIA, Pre-Refunded @ 102 (A)
7.750%, 07/01/00 40 44
Massachusetts State, Health &
Education Facilities Authority,
Harvard Pilgrim Health Project,
Ser A, RB, FSA
5.250%, 07/01/06 40 42
Massachusetts State, Industrial
Finance Agency, Tufts University
Project, Ser H, RB
5.000%, 02/15/01 45 46
Massachusetts State, Industrial
Finance Agency, Museum of
Fine Arts Boston Project, RB, MBIA
5.375%, 01/01/07 45 48
Worcester, GO, MBIA
5.750%, 08/01/07 35 39
------
875
------
Total Municipal Bonds
(Cost $870) 875
------
55
<PAGE>
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
SEI TAX EXEMPT TRUST -- AUGUST 31, 1998
MASSACHUSETTS MUNICIPAL
BOND PORTFOLIO--CONCLUDED
- ------------------------------------------------------------
FACE MARKET
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Total Investments -- 84.1%
(Cost $870) $ 875
------
Other Assets and Liabilities, Net -- 15.9% 165
------
FSA FINANCIAL SECURITY ASSURANCE
GO GENERAL OBLIGATION
MBIA MUNICIPAL BOND INVESTORS ASSURANCE
RB REVENUE BOND
SER SERIES
(A) PRE-REFUNDED SECURITY -- THE MATURITY DATE SHOWN ON THE STATEMENT OF NET
ASSETS IS THE PRE-REFUNDED DATE.
NEW JERSEY MUNICIPAL
BOND PORTFOLIO
MUNICIPAL BONDS -- 109.8%
NEW JERSEY -- 109.8%
Atlantic City, GO, AMBAC
4.750%, 08/15/04 $ 50 $ 52
Delaware River Port Authority of
Pennsylvania & New Jersey, Port
District Project, Ser B, RB, MBIA
4.000%, 01/01/03 50 50
Edison Township, GO, AMBAC
Callable 01/01/04 @ 102
5.000%, 01/01/07 50 53
Essex County, General Improvement,
GO, AMBAC
4.875%, 11/15/02 50 52
Essex County, Improvement
Authority Lease, County Jail and
Youth House Project, RB, AMBAC
Callable 12/01/06 @ 102
4.850%, 12/01/07 50 52
Longport, GO, FSA
4.350%, 08/15/02 50 51
Lower Township Municipality,
Utilities Authority, RB, MBIA
4.200%, 12/01/08 50 49
Mercer County, Improvement
Authority, County Golf Course
Project, RB, FGIC
4.300%, 12/01/06 50 50
- ------------------------------------------------------------
FACE MARKET
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
New Jersey Health Care Facilities,
Financing Authority, Carrier
Foundation, Ser C, RB, FGIC (A) (B)
3.250%, 09/01/98 $300 $ 300
New Jersey Health Care Facilities,
Financing Authority, Saint Barnabas
Medical Center Project,
Ser A, RB, MBIA
4.500%, 07/01/08 50 50
New Jersey State, GO
4.000%, 04/01/01 50 50
New Jersey State Transportation
Authority, Transportation Systems
Project, Ser B, RB
4.750%, 06/15/02 50 51
Ocean County, GO
3.950%, 10/01/02 50 50
Pleasantville, School District,
GO, MBIA
4.750%, 02/15/05 50 52
Port Authority of New York &
New Jersey, RB
3.875%, 08/01/01 200 201
Somerset Raritan Valley, Sewer
Authority, Ser A, RB, MBIA
4.500%, 07/01/03 50 50
------
1,213
------
Total Municipal Bonds
(Cost $1,209) 1,213
------
Total Investments -- 109.8%
(Cost $1,209) 1,213
------
Other Assets and Liabilities, Net -- (9.8%) (108)
------
AMBAC AMERICAN MUNICIPAL BOND ASSURANCE COMPANY
FGIC FEDERAL GUARANTY INSURANCE COMPANY
FSA FINANCIAL SECURITY ASSURANCE
GO GENERAL OBLIGATION
MBIA MUNICIPAL BOND INVESTORS ASSURANCE
RB REVENUE BOND
SER SERIES
(A) FLOATING RATE SECURITY -- THE RATE REFLECTED ON THE STATEMENT OF NET ASSETS
IS THE RATE IN EFFECT ON AUGUST 31, 1998.
(B) PUT AND DEMAND FEATURE -- THE DATE REPORTED ON THE STATEMENT OF NET ASSETS
IS THE EARLIER OF THE MATURITY DATE OR THE PUT DATE.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
56
<PAGE>
- --------------------------------------------------------------------------------
NEW YORK MUNICIPAL
BOND PORTFOLIO
- ------------------------------------------------------------
FACE MARKET
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
MUNICIPAL BONDS -- 89.0%
NEW YORK -- 89.0%
Long Island Power Authority,
New York Electric System
Project, Ser A, RB, AMBAC
6.000%, 12/01/07 $ 50 $ 56
Municipal Assistance Corporation,
City of New York, Ser G, RB
6.000%, 07/01/07 125 141
Nassau County, GO, Ser A, FGIC
5.500%, 07/01/06 60 65
New York City Health and Hospital
Corporation, Ser A, RB
Callable 02/15/03 @ 102
6.000%, 02/15/05 45 49
New York, GO
5.250%, 08/01/07 190 203
New York State, Battery Park City
Authority, Ser A, RB
5.000%, 11/01/08 60 62
New York State, Environment Facility
Corporation, Pollution Control
Revenue, State Water, Revolving
Fund Pooled, Lien B, RB
Callable 5/15/04 @ 102
5.300%, 11/15/05 50 54
New York State, GO
Callable 07/15/06 @ 101
5.200%, 07/15/07 100 107
New York State, Local Government
Assistance Corporation, Ser A, RB
6.000%, 04/01/06 50 55
New York State, Medical Care
Facilities, Finance Agency, Mental
Health Services Project, Ser F, RB
6.000%, 02/15/02 60 64
New York State, Thruway Authority,
Highway and Bridge Transportation
Trust Funding, Ser A, RB, MBIA
6.250%, 04/01/04 45 50
New York City Transitional Finance
Authority, Future Tax, Ser A, RB
5.500%, 08/15/07 45 49
Port Jervis, Industrial Development
Authority, Franscican Health
Partnership, RB
5.250%, 11/01/06 25 26
Riverhead, Individual Development
Agency, Free Library Facility,
RB, MBIA
5.000%, 09/15/08 50 52
- ------------------------------------------------------------
FACE MARKET
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Triborough Bridge and Tunnel
Authority, General Purpose
Revenue, Ser Y, RB
5.800%, 01/01/06 $ 175 $ 191
------
1,224
------
Total Municipal Bonds
(Cost $1,217) 1,224
------
Total Investments -- 89.0%
(Cost $1,217) 1,224
------
Other Assets and Liabilities, Net -- 11.0% 151
------
AMBAC AMERICAN MUNICIPAL BOND ASSURANCE COMPANY
GO GENERAL OBLIGATION
MBIA MUNICIPAL BOND INVESTORS ASSURANCE
RB REVENUE BOND
SER SERIES
CALIFORNIA MUNICIPAL
BOND PORTFOLIO
MUNICIPAL BONDS -- 90.2%
CALIFORNIA -- 90.2%
Aneheim, Public Financing
Authority Lease, Public
Improvements Project,
Ser C, RB, FSA
4.800%, 09/01/06 $ 50 $ 52
California Health Facilities
Finance Authority, St. Joseph's
Health Systems Project,
Ser A, RB (A) (B)
3.100%, 09/10/98 400 400
California Health Facilities
Finance Authority, Summit
Medical Center Project,
Ser A, RB, FSA
5.250%, 05/01/03 50 53
California Health Facilities
Finance Authority, Sutter
Health Project, Ser A, RB (A) (B)
3.150%, 09/10/98 500 500
California Statewide, Community
Development Authority,
Community Hospital Monterey
Peninsula Project, COP, MBIA
5.250%, 08/15/08 50 54
57
<PAGE>
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
SEI TAX EXEMPT TRUST -- AUGUST 31, 1998
CALIFORNIA MUNICIPAL BOND PORTFOLIO--CONCLUDED
- ------------------------------------------------------------
FACE MARKET
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
California State, Public Works
Board Lease, Department of
Corrections Project, Ser D, RB
5.750%, 09/01/07 $ 60 $ 67
California State, University
Revenue and Colleges
Authority, Housing Systems
Project, RB, FGIC
4.700%, 11/01/01 50 51
Dinuba, Water Systems and
Wastewater Systems Project,
Ser A, COP, MBIA
4.100%, 08/01/04 50 50
Duarte, Unified School District,
GO, Ser A, FSA
4.150%, 11/01/06 50 50
Fontana, GO, Community
Facilities District No. 2-A,
Special Tax, MBIA
4.300%, 09/01/07 50 51
Los Angeles, GO, Ser A
4.000%, 09/01/02 50 50
Los Angeles, Regional Airports
Improvement Corporation
Lease, Sublease Los Angeles
International Airport (LAX),
RB, Societe General (A) (B)
3.375%, 09/01/98 100 100
Los Angeles, Unified School
District, GO, Ser B, FGIC
4.400%, 07/01/08 50 51
Madera County, Valley Childrens
Hospital Project, COP, MBIA
6.250%, 03/15/07 50 57
Northern, Public Power Agency,
Geothermal Project Number 3,
Ser A, RB, AMBAC
5.000%, 07/01/04 50 53
Orange County, Local
Transportation Authority,
Second Project, Ser A,
Sales Tax Revenue, RB, MBIA
5.000%, 02/15/03 50 52
Palmdale, Community
Redevelopment Agency,
Merged Redevelopment
Project, TA, MBIA
3.900%, 09/01/02 50 50
Pasadena, Electric Power,
RB, MBIA
4.250%, 08/01/01 50 51
- ------------------------------------------------------------
FACE MARKET
AMOUNT (000) VALUE (000)
- ------------------------------------------------------------
Sacramento County, Airport
Systems Authority,
Ser A, RB, FGIC
4.300%, 07/01/07 $ 50 $ 51
South Whittier, Elementary
School District, GO,
Ser A, FGIC
4.050%, 08/01/05 50 50
Southern California, Public
Power Authority, Power
Project (San Juan Unit 3),
Ser A, RB, MBIA
Callable 01/01/03 @ 102
5.125%, 01/01/05 50 53
------
1,946
------
Total Municipal Bonds
(Cost $1,938) 1,946
------
Total Investments -- 90.2%
(Cost $1,938) 1,946
------
Other Assets and Liabilities, Net -- 9.8% 212
------
AMBAC AMERICAN MUNICIPAL BOND ASSURANCE COMPANY
COP CERTIFICATE OF PARTICIPATION
FGIC FINANCIAL GUARANTY INSURANCE CORPORATION
FSA FINANCIAL SECURITY ASSURANCE
GO GENERAL OBLIGATION
MBIA MUNICIPAL BOND INVESTORS ASSURANCE
RB REVENUE BOND
SER SERIES
TA TAX ALLOCATION
(A) FLOATING RATE SECURITY -- THE RATE REFLECTED ON THE STATEMENT OF NET ASSETS
IS THE RATE IN EFFECT ON AUGUST 31, 1998.
(B) PUT AND DEMAND FEATURE-- THE DATE REPORTED ON THE STATEMENT OF NET ASSETS
IS THE EARLIER OF THE MATURITY DATE OR THE PUT DATE.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
58
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES (000)
- --------------------------------------------------------------------------------
SEI TAX EXEMPT TRUST -- FOR THE PERIOD ENDED AUGUST 31, 1998
<TABLE>
------------- ---------- --------- ----------
<S> <C> <C> <C> <C>
MASSACHUSETTS NEW JERSEY NEW YORK CALIFORNIA
MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
BOND BOND BOND BOND
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------- ---------- --------- -----------
ASSETS:
Investments at value
(Cost $870, $1,209, $1,217
and $1,938, respectively) $ 875 $1,213 $1,224 $1,946
Cash 346 87 270 428
Accrued Income 8 6 14 10
Receivable from Fund Shares Sold -- -- -- 178
Investment Securities Sold 99 -- 11 --
------ ------ ------ ------
Total Assets 1,328 1,306 1,519 2,562
------ ------ ------ ------
LIABILITIES:
Investment Securities Purchased 286 201 142 403
Accrued Expenses 2 -- 2 1
------ ------ ------ ------
Total Liabilities 288 201 144 404
------ ------ ------ ------
Net Assets: 1,040 1,105 1,375 2,158
------ ------ ------ ------
NET ASSETS:
Portfolio Shares of Class A (unlimited
authorization -- no par value) based
on 103,388, 109,957, 136,772 and 214,354,
respectively,of outstanding shares of
beneficial interest 1,034 1,101 1,368 2,150
Accumulated Net Realized Gain on Investments 1 -- -- --
Net Unrealized Appreciation on Investments 5 4 7 8
------ ------ ------ ------
TOTAL NET ASSETS $1,040 $1,105 $1,375 $2,158
====== ====== ====== ======
Net Asset Value, Offering and Redemption
Price Per Share -- Class A $10.05 $10.05 $10.05 $10.07
====== ====== ====== ======
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
59
<PAGE>
STATEMENT OF OPERATIONS (000)
- --------------------------------------------------------------------------------
SEI TAX EXEMPT TRUST -- FOR THE YEAR ENDED AUGUST 31, 1998
<TABLE>
--------- ---------- -------------
<S> <C> <C> <C>
CALIFORNIA INSTITUTIONAL
TAX FREE TAX EXEMPT TAX FREE
PORTFOLIO PORTFOLIO PORTFOLIO
--------- ---------- -------------
INVESTMENT INCOME:
Interest Income $19,032 $17,647 $38,579
------- ------- -------
EXPENSES:
Management Fees 1,852 1,186 3,738
Waiver of Management Fees -- (101) (1,032)
Investment Advisory Fees 200 201 404
Waiver of Investment Advisory Fees -- -- --
Custodian/Wire Agent Fees 37 46 89
Professional Fees 11 16 37
Pricing Fees 4 4 8
Registration Fees 77 45 119
Trustee Fees 8 10 13
Shareholder Servicing Fees (1) 1,286 2,447 2,690
Shareholder Servicing Fee Waivers (1,173) (130) (2,353)
Printing Fees 8 28 28
Insurance Fees 2 5 8
Other Expenses 3 4 14
------- ------- -------
Total Expenses 2,315 3,761 3,763
------- ------- -------
NET INVESTMENT INCOME 16,717 13,886 34,816
------- ------- -------
NET REALIZED AND UNREALIZED LOSS ON
INVESTMENTS
Net Realized Loss on Investments (8) (45) (15)
------- ------- -------
Net Realized and Unrealized Loss
on Investments (8) (45) (15)
------- ------- -------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $16,709 $13,841 $34,801
======= ======= =======
<FN>
(1) INCLUDES CLASS SPECIFIC DISTRIBUTION EXPENSES.
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
</FN>
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
60
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
------------ --------------- --------------
<S> <C> <C> <C>
PENNSYLVANIA INTERMEDIATE- PENNSYLVANIA
TAX FREE TERM MUNICIPAL MUNICIPAL
PORTFOLIO PORTFOLIO BOND PORTFOLIO
------------ -------------- --------------
INVESTMENT INCOME:
Interest Income $1,505 $17,876 $5,284
------ ------- ------
EXPENSES:
Management Fees 146 888 345
Waiver of Management Fees (34) (95) (124)
Investment Advisory Fees 16 1,221 198
Waiver of Investment Advisory Fees -- -- --
Custodian/Wire Agent Fees 3 45 8
Professional Fees 3 14 6
Pricing Fees -- 22 13
Registration Fees 2 74 11
Trustee Fees 1 7 1
Shareholder Servicing Fees (1) 102 925 247
Shareholder Servicing Fee Waivers (102) (925) (247)
Printing Fees 3 43 14
Insurance Fees -- 3 1
Other Expenses 2 3 1
------ ------- ------
Total Expenses 142 2,225 474
------ ------- ------
NET INVESTMENT INCOME 1,363 15,651 4,810
------ ------- ------
NET REALIZED AND UNREALIZED GAIN ON
INVESTMENTS
Net Realized Gain (Loss) on Investments (4) 464 583
Net Change in Unrealized Appreciation
of Investments -- 10,070 1,465
------ ------- ------
Net Realized and Unrealized Gain (Loss)
on Investments (4) 10,534 2,048
------ ------- ------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $1,359 $26,185 $6,858
====== ======= ======
<FN>
(1) INCLUDES CLASS SPECIFIC DISTRIBUTION EXPENSES.
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
</FN>
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
61
<PAGE>
STATEMENT OF OPERATIONS (000) (concluded)
- --------------------------------------------------------------------------------
SEI TAX EXEMPT TRUST -- FOR THE PERIOD ENDED AUGUST 31, 1998
<TABLE>
-------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
MASSACHUSETTS NEW JERSEY NEW YORK CALIFORNIA
MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
BOND BOND BOND BOND
PORTFOLIO (2) PORTFOLIO (3) PORTFOLIO (3) PORTFOLIO (2)
-------------- ------------- ------------- -------------
INVESTMENT INCOME:
Interest Income $ -- $ 1 $ 1 $ 1
---- ---- ---- ----
EXPENSES:
Management Fees -- -- -- --
Waiver of Management Fees -- -- -- --
Investment Advisory Fees -- -- -- --
Waiver of Investment Advisory Fees -- -- -- --
Custodian/Wire Agent Fees -- -- -- --
Professional Fees -- -- -- --
Pricing Fees -- -- -- --
Registration Fees -- -- -- --
Trustee Fees -- -- -- --
Shareholder Servicing Fees (1) -- -- -- --
Shareholder Servicing Fee Waivers -- -- -- --
Printing Fees -- -- -- --
Insurance Fees -- -- -- --
Other Expenses -- -- -- --
---- ---- ---- ----
Total Expenses -- -- -- --
---- ---- ---- ----
NET INVESTMENT INCOME -- 1 1 1
---- ---- ---- ----
NET REALIZED AND UNREALIZED GAIN ON
INVESTMENTS
Net Realized Gain on Investments 1 -- -- --
Net Change in Unrealized Appreciation
of Investments 5 4 7 8
---- ---- ---- ----
Net Realized and Unrealized Gain
on Investments 6 4 7 8
---- ---- ---- ----
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $ 6 $ 5 $ 8 $ 9
==== ==== ==== ====
<FN>
(1) INCLUDES CLASS SPECIFIC DISTRIBUTION EXPENSES.
(2) COMMENCED OPERATIONS ON AUGUST 19, 1998.
(3) COMMENCED OPERATIONS ON AUGUST 18, 1998.
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
</FN>
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
62
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (000)
- --------------------------------------------------------------------------------
SEI TAX EXEMPT TRUST -- FOR THE YEAR ENDED AUGUST 31, 1998
<TABLE>
------------------------- ------------------------- -------------------------
<S> <C> <C> <C> <C> <C> <C>
CALIFORNIA INSTITUTIONAL
TAX FREE TAX EXEMPT TAX FREE
PORTFOLIO PORTFOLIO PORTFOLIO
------------------------- ------------------------- -------------------------
1998 1997 1998 1997 1998 1997
---------- ---------- ---------- ---------- ---------- ----------
INVESTMENT ACTIVITIES:
Net Investment Income $ 16,717 $ 12,882 $ 13,886 $ 12,288 $ 34,816 $ 33,351
Net Realized Gain (Loss) on Investments (8) (3) (45) -- (15) (4)
---------- ---------- ---------- ---------- ---------- ----------
Net Increase in Net Assets Resulting
from Operations 16,709 12,879 13,841 12,288 34,801 33,347
---------- ---------- ---------- ---------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net Investment Income
Class A (16,717) (12,895) (1,653) (1,562) (31,995) (32,434)
Class B -- -- -- -- (2,287) (575)
Class C -- -- -- -- (652) (227)
Class D -- -- -- -- -- --
Class CNI (1) -- -- (12,243) (10,684) -- --
Net Capital Gains
Class A -- -- -- -- -- (42)
Class B -- -- -- -- -- (1)
---------- ---------- ---------- ---------- ---------- ----------
Total Distributions (16,717) (12,895) (13,896) (12,246) (34,934) (33,279)
---------- ---------- ---------- ---------- ---------- ----------
TRANSACTIONS (2):
Class A:
Proceeds from Shares Issued 2,868,542 1,929,474 471,131 378,414 4,812,267 5,109,226
Reinvestment of Cash Distributions 2,527 1,321 76 63 1,150 547
Cost of Shares Redeemed (2,758,801) (1,839,669) (483,007) (371,901) (4,999,980) (4,945,279)
---------- ---------- ---------- ---------- ---------- ----------
Total Class A Share Transactions 112,268 91,126 (11,800) 6,576 (186,563) 164,494
---------- ---------- ---------- ---------- ---------- ----------
Class B:
Proceeds from Shares Issued -- -- -- -- 404,501 74,602
Reinvestment of Cash Distributions -- -- -- -- 857 73
Cost of Shares Redeemed -- -- -- -- (345,134) (54,051)
---------- ---------- ---------- ---------- ---------- ----------
Total Class B Share Transactions -- -- -- -- 60,224 20,624
---------- ---------- ---------- ---------- ---------- ----------
Class C:
Proceeds from Shares Issued -- -- -- -- 169,692 66,525
Reinvestment of Cash Distributions -- -- -- -- -- --
Cost of Shares Redeemed -- -- -- -- (156,390) (76,352)
---------- ---------- ---------- ---------- ---------- ----------
Total Class C Share Transactions -- -- -- -- 13,302 (9,827)
---------- ---------- ---------- ---------- ---------- ----------
Class D (3):
Proceeds from Shares Issued -- 1 -- -- -- --
Reinvestment of Cash Distributions -- -- -- -- -- --
Cost of Shares Redeemed -- (6) -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Total Class D Share Transactions -- (5) -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Class CNI (1):
Proceeds from Shares Issued -- -- 1,076,760 817,088 -- --
Reinvestment of Cash Distributions -- -- 9,619 9,680 -- --
Cost of Shares Redeemed -- -- (1,024,432) (765,343) -- --
---------- ---------- ---------- ---------- ---------- ----------
Total Class G Share Transactions -- -- 61,947 61,425 -- --
---------- ---------- ---------- ---------- ---------- ----------
Increase (Decrease) in Net Assets
from Share Transaction 112,268 91,121 50,147 68,001 (113,037) 175,291
---------- ---------- ---------- ---------- ----------- ----------
Total Increase (Decrease) in Net Assets 112,260 91,105 50,092 68,043 (113,170) 175,359
---------- ---------- ---------- ---------- ---------- ----------
NET ASSETS:
Beginning of period 431,017 339,912 463,456 395,413 1,044,111 868,752
---------- ---------- ---------- ---------- ---------- ----------
End of period $ 543,277 $ 431,017 $ 513,548 $ 463,456 $ 930,941 $1,044,111
========== ========== ========== ========== ========== ==========
<FN>
(1) FORMERLY CLASS G SHARES
(2) FOR CAPITAL SHARE TRANSACTIONS SEE FOOTNOTE 8 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.
</FN>
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
63
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (000) (concluded)
- --------------------------------------------------------------------------------
SEI TAX EXEMPT TRUST -- FOR THE YEAR ENDED AUGUST 31, 1998
<TABLE>
------------------ --------------------- --------------------
<S> <C> <C> <C>
PENNSYLVANIA INTERMEDIATE-TERM PENNSYLVANIA
TAX FREE MUNICIPAL MUNICIPAL BOND
PORTFOLIO (2) PORTFOLIO PORTFOLIO
-------------------- -------------------- --------------------
1998 1997 1998 1997 1998 1997
-------- -------- -------- -------- -------- --------
INVESTMENT ACTIVITIES:
Net Investment Income $ 1,363 $ 1,263 $ 15,651 $ 8,537 $ 4,810 $ 4,948
Net Realized Gain (Loss) on Investments (4) -- 464 267 583 378
Net Change in Unrealized Appreciation
of Investments -- -- 10,070 5,042 1,465 2,274
-------- -------- -------- -------- -------- --------
Net Increase in Net Assets
Resulting from Operations 1,359 1,263 26,185 13,846 6,858 7,600
-------- -------- -------- -------- -------- --------
DISTRIBUTIONS TO SHAREHOLDERS:
Net Investment Income
Class A (1,358) (1,267) (15,609) (8,535) -- (4,941)
Class B -- -- -- -- (4,798) --
Net Capital Gains
Class A -- -- -- -- -- (1,769)
Class B -- -- -- -- (365) --
-------- -------- -------- -------- -------- --------
Total Distributions (1,358) (1,267) (15,609) (8,535) (5,163) (6,710)
-------- -------- -------- -------- -------- --------
TRANSACTIONS (1):
Class A:
Proceeds from Shares Issued 322,613 244,606 327,207 163,672 332 21,575
Reinvestment of Cash Distributions 77 42 10,973 4,353 -- 569
Cost of Shares Redeemed (322,186) (238,052) (91,670) (48,661) -- (22,183)
-------- -------- -------- -------- -------- --------
Total Class A Share Transactions 504 6,596 246,510 119,364 332 (39)
-------- -------- -------- -------- -------- --------
Class B:
Proceeds from Shares Issued -- -- -- -- 19,813 --
Reinvestment of Cash Distributions -- -- -- -- 469 --
Cost of Shares Redeemed -- -- -- -- (19,026) --
-------- -------- -------- -------- -------- --------
Total Class B Share Transactions -- -- -- -- 1,256 --
-------- -------- -------- -------- -------- --------
Increase (Decrease) in Net Assets
from Share Transactions 504 6,596 246,510 119,364 1,588 (39)
-------- -------- -------- -------- -------- --------
Total Increase in Net Assets 505 6,592 257,086 124,675 3,283 851
-------- -------- -------- -------- -------- --------
NET ASSETS:
Beginning of period 49,563 42,971 259,238 134,563 98,079 97,228
-------- -------- -------- -------- -------- --------
End of period $ 50,068 $ 49,563 $516,324 $259,238 $101,362 $ 98,079
======== ======== ======== ======== ======== ========
<FN>
(1) FOR CAPITAL SHARE TRANSACTIONS SEE FOOTNOTE 8 IN THE NOTES TO THE
FINANCIAL STATEMENTS.
(2) THE PENNSYLVANIA TAX FREE PORTFOLIO -- CLASS B COMMENCED OPERATIONS ON
AUGUST 25, 1998.
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
</FN>
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
64
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
MASSACHUSETTS NEW JERSEY NEW YORK CALIFORNIA
MUNICIPAL BOND MUNICIPAL BOND MUNICIPAL BOND MUNICIPAL BOND
PORTFOLIO (2) PORTFOLIO (3) PORTFOLIO (3) PORTFOLIO (2)
-------------- -------------- -------------- --------------
1998 1998 1998 1998
-------- -------- -------- --------
INVESTMENT ACTIVITIES:
Net Investment Income $ -- $ 1 $ 1 $ 1
Net Realized Gain on Investments 1 -- -- --
Net Change in Unrealized Appreciation
of Investments 5 4 7 8
------ ------ ----- ------
Net Increase in Net Assets
Resulting from Operations 6 5 8 9
------ ------ ----- ------
DISTRIBUTIONS TO SHAREHOLDERS:
Net Investment Income
Class A -- (1) (1) (1)
Net Capital Gains
Class A -- -- -- --
------ ------ ----- ------
Total Distributions -- (1) (1) (1)
------ ------ ----- ------
TRANSACTIONS (1):
Class A:
Proceeds from Shares Issued 1,034 1,100 1,367 2,161
Reinvestment of Cash Distributions -- 1 1 1
Cost of Shares Redeemed -- -- -- (12)
------ ------ ------ ------
Total Class A Share Transactions 1,034 1,101 1,368 2,150
------ ------ ------ ------
Increase in Net Assets from Share Transactions 1,034 1,101 1,368 2,150
------ ------ ------ ------
Total Increase in Net Assets 1,040 1,105 1,375 2,158
------ ------ ------ ------
NET ASSETS:
Beginning of period -- -- -- --
------ ------ ------ ------
End of period $1,040 $1,105 $1,375 $2,158
====== ====== ====== ======
<FN>
(1) FOR CAPITAL SHARE TRANSACTIONS SEE FOOTNOTE 8 IN THE NOTES TO THE
FINANCIAL STATEMENTS.
(2) COMMENCED OPERATIONS ON AUGUST 19, 1998.
(3) COMMENCED OPERATIONS ON AUGUST 18, 1998.
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
</FN>
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
65
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
- ------------------------------------------------------------------------------------------------------------------------------------
SEI TAX EXEMPT TRUST
FOR A SHARE OUTSTANDING THROUGHOUT THE YEAR
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET RATIO
REAL- OF
IZED NET
AND RATIO RATIO INVEST-
UNREAL- OF EX- OF MENT
INVEST- IZED PENSES NET INCOME
MENT GAIN TO INVEST- TO
NET ACTIVI- (LOSS) AVERAGE MENT AVERAGE
ASSET TIES DISTRIBUTIONS ON RATIO OF NET INCOME NET
VALUE ------ ----------------------- INVEST- NET NET EXPENSES ASSETS TO ASSETS
BEGIN- NET NET NET TOTAL MENTS ASSET ASSETS, TO EXCLUD- AVER- EXCLUD-
NING INVEST- INVEST- REAL- DIS- AND CAP- VALUE, END OF AVERAGE ING AGE ING PORTFOLIO
OF MENT MENT IZED TRIBU- ITAL TRANS- END OF TOTAL PERIOD NET FEE NET FEE TURNOVER
PERIOD INCOME INCOME GAIN TIONS ACTIONS PERIOD RETURN (000) ASSETS WAIVERS ASSETS WAIVERS RATE
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------
TAX FREE PORTFOLIO
- ------------------
CLASS A
1998 $1.00 $0.033 $(0.033) -- $(0.033) -- $1.00 3.30% $543,276 0.45% 0.68% 3.25% 3.02% --
1997 1.00 0.033 (0.033) -- (0.033) -- 1.00 3.31 431,016 0.45 0.69 3.26 3.02 --
1996 1.00 0.033 (0.033) -- (0.033) -- 1.00 3.35 339,906 0.45 0.50 3.30 3.25 --
1995 1.00 0.034 (0.034) -- (0.034) -- 1.00 3.48 377,152 0.45 0.51 3.43 3.37 --
1994 1.00 0.022 (0.022) -- (0.022) -- 1.00 2.20 358,299 0.45 0.53 2.17 2.09 --
CLASS D
1998 $1.00 $0.029 $(0.029) -- $(0.029) -- $1.00 2.91% $ 1 0.59% 0.59% 3.13% 3.13% --
1997 1.00 0.028 (0.028) -- (0.028) -- 1.00 2.86 1 0.74 0.74 3.04 3.04 --
1996 1.00 0.030 (0.030) -- (0.030) -- 1.00 2.99 6 0.80 0.88 3.18 3.10 --
1995 (1) 1.00 0.026 (0.026) -- (0.026) -- 1.00 2.68 272 0.80* 0.86* 3.13* 3.07* --
- -------------------------------
CALIFORNIA TAX EXEMPT PORTFOLIO
- -------------------------------
CLASS A
1998 $1.00 $0.032 $(0.032) -- $(0.032) -- $1.00 3.20% $ 39,508 0.28% 0.55% 3.17% 2.90% --
1997 1.00 0.033 (0.033) -- (0.033) -- 1.00 3.30 51,314 0.28 0.57 3.26 2.97 --
1996 1.00 0.034 (0.034) -- (0.034) -- 1.00 3.41 44,729 0.28 0.36 3.33 3.25 --
1995 1.00 0.033 (0.033) -- (0.033) -- 1.00 3.49 30,921 0.28 0.42 3.43 3.29 --
1994 1.00 0.023 (0.023) -- (0.023) -- 1.00 2.32 32,015 0.27 0.38 2.28 2.17 --
CLASS CNI***
1998 $1.00 $0.027 $(0.027) -- $(0.027) -- $1.00 2.69% $474,040 0.78% 0.80% 2.64% 2.62% --
1997 1.00 0.028 (0.028) -- (0.028) -- 1.00 2.79 412,142 0.78 1.06 2.75 2.47 --
1996 1.00 0.028 (0.028) -- (0.028) -- 1.00 2.90 350,684 0.78 0.86 2.84 2.76 --
1995 1.00 0.029 (0.029) -- (0.029) -- 1.00 2.97 328,035 0.78 0.93 2.93 2.78 --
1994 (2) 1.00 0.006 (0.006) -- (0.006) -- 1.00 2.14* 318,122 0.67* 0.87* 2.06* 1.86* --
- --------------------------------
INSTITUTIONAL TAX FREE PORTFOLIO
- --------------------------------
CLASS A
1998 $1.00 $0.034 $(0.034) -- $(0.034) -- $1.00 3.46% $813,261 0.33% 0.68% 3.39% 3.04% --
1997 1.00 0.034 (0.034) -- (0.034) -- 1.00 3.44 999,946 0.33 0.69 3.39 3.03 --
1996 1.00 0.035 (0.035) -- (0.035) -- 1.00 3.52 835,388 0.33 0.49 3.46 3.30 --
1995 1.00 0.036 (0.036) -- (0.036) -- 1.00 3.70 788,877 0.33 0.52 3.64 3.45 --
1994 1.00 0.025 (0.025) -- (0.025) -- 1.00 2.51 835,516 0.33 0.50 2.48 2.31 --
CLASS B
1998 $1.00 $0.031 $(0.031) -- $(0.031) -- $1.00 3.15% $ 95,004 0.63% 0.73% 3.06% 2.96% --
1997 1.00 0.031 (0.031) -- (0.031) -- 1.00 3.13 34,783 0.63 0.73 3.10 3.00 --
1996 1.00 0.032 (0.032) -- (0.032) -- 1.00 3.21 14,156 0.63 0.80 3.16 2.99 --
1995 1.00 0.033 (0.033) -- (0.033) -- 1.00 3.39 15,084 0.63 0.82 3.32 3.13 --
1994 1.00 0.022 (0.022) -- (0.022) -- 1.00 2.21 21,725 0.63 0.81 2.31 2.13 --
CLASS C
1998 $1.00 $0.029 $(0.029) -- $(0.029) -- $1.00 2.94% $ 22,676 0.83% 0.93% 2.89% 2.79% --
1997 1.00 0.029 (0.029) -- (0.029) -- 1.00 2.93 9,382 0.83 0.95 2.85 2.73 --
1996 (3) 1.00 0.029 (0.029) -- (0.029) -- 1.00 2.92 19,208 0.83* 0.96* 2.89* 2.76* --
- -------------------------------
PENNSYLVANIA TAX FREE PORTFOLIO
- -------------------------------
CLASS A
1998 $1.00 $0.034 $(0.034) -- $(0.034) -- $1.00 3.41% $ 50,068 0.35% 0.68% 3.36% 3.03% --
1997 1.00 0.033 (0.033) -- (0.033) -- 1.00 3.39 49,563 0.35 0.71 3.33 2.97 --
1996 1.00 0.034 (0.034) -- (0.034) -- 1.00 3.40 42,971 0.35 0.49 3.33 3.19 --
1995 1.00 0.035 (0.035) -- (0.035) -- 1.00 3.60 26,058 0.35 0.51 3.54 3.38 --
1994 (4) 1.00 0.014 (0.014) -- (0.014) -- 1.00 2.37* 18,712 0.35* 0.65* 2.37* 2.07* --
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
66
<PAGE>
<TABLE>
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET RATIO
REAL- OF
IZED NET
AND RATIO RATIO INVEST-
UNREAL- OF EX- OF MENT
INVEST- IZED PENSES NET INCOME
MENT GAIN TO INVEST- TO
NET ACTIVI- (LOSS) AVERAGE MENT AVERAGE
ASSET TIES DISTRIBUTIONS ON RATIO OF NET INCOME NET
VALUE ------ ----------------------- INVEST- NET NET EXPENSES ASSETS TO ASSETS
BEGIN- NET NET NET TOTAL MENTS ASSET ASSETS, TO EXCLUD- AVER- EXCLUD-
NING INVEST- INVEST- REAL- DIS- AND CAP- VALUE, END OF AVERAGE ING AGE ING PORTFOLIO
OF MENT MENT IZED TRIBU- ITAL TRANS- END OF TOTAL PERIOD NET FEE NET FEE TURNOVER
PERIOD INCOME INCOME GAIN TIONS ACTIONS PERIOD RETURN (000) ASSETS WAIVERS ASSETS WAIVERS RATE
- ------------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------
INTERMEDIATE-TERM MUNICIPAL PORTFOLIO
- -------------------------------------
CLASS A
1998 $10.77 $0.46 $(0.46) -- $(0.46) $ 0.31 $11.08 7.20% $516,324 0.60% 0.88% 4.23% 3.95% 8.98%
1997 10.45 0.48 (0.48) -- (0.48) 0.32 10.77 7.93 259,238 0.60 0.88 4.53 4.25 16.02
1996 10.59 0.49 (0.53) -- (0.53) (0.10) 10.45 3.76 134,563 0.59 0.66 4.66 4.59 40.66
1995 10.36 0.52 (0.52) -- (0.52) 0.23 10.59 7.53 95,675 0.55 0.72 4.96 4.79 36.05
1994 10.84 0.49 (0.49) $(0.06) (0.55) (0.42) 10.36 0.65 127,509 0.53 0.71 4.65 4.47 58.9
CLASS D**
1996 (5) $10.59 $0.38 $(0.41) -- $(0.41) $(0.10) $10.46 3.22%* -- 0.98%* 1.08%* 4.26%* 4.16%* 40.66%
1995 10.36 0.48 (0.48) -- (0.48) 0.23 10.59 7.11 $ 548 0.95 1.12 4.57 4.40 36.05
1994 (6) 10.90 0.45 (0.42) $(0.06) (0.48) (0.51) 10.36 (0.93)* 1,105 0.93* 1.07* 4.34* 4.20* 58.39
- -------------------------------------
PENNSYLVANIA MUNICIPAL BOND PORTFOLIO
- -------------------------------------
CLASS A
1998 (7) $10.72 $0.01 $(0.01) -- $(0.01) $ 0.03 $10.75 0.26% $ 333 0.60%* 0.79%* 4.56%* 4.25%* 26.85%
CLASS B
1998 $10.58 $0.52 $(0.52) $(0.04) $(0.56) $ 0.22 $10.76 7.24% $101,029 0.48% 0.86% 4.87% 4.49% 26.85%
1997 10.48 0.53 (0.53) (0.19) (0.72) 0.29 10.58 8.08 98,079 0.48 0.86 5.08 4.70 34.48
1996 10.66 0.55 (0.59) -- (0.59) (0.14) 10.48 3.96 97,228 0.48 0.65 5.15 4.98 65.75
1995 10.52 0.55 (0.55) -- (0.55) 0.14 10.66 6.81 104,094 0.48 0.72 5.21 4.97 22.62
1994 10.94 0.53 (0.53) -- (0.53) (0.42) 10.52 1.14 125,081 0.47 0.71 4.90 4.66 25.13
- --------------------------------------
MASSACHUSETTS MUNICIPAL BOND PORTFOLIO
- --------------------------------------
CLASS A
1998 (8) $10.00 -- -- -- -- $ 0.05 $10.05 0.53% $ 1,040 0.60%* 0.87%* 1.13%* 0.86%* 11.35%*
- -----------------------------------
NEW JERSEY MUNICIPAL BOND PORTFOLIO
- -----------------------------------
CLASS A
1998 (9) $10.00 $0.01 $(0.01) -- $(0.01) $ 0.05 $10.05 0.58% $ 1,105 0.60%* 0.87%* 2.93%* 2.66%* 0.00%*
- ---------------------------------
NEW YORK MUNICIPAL BOND PORTFOLIO
- ---------------------------------
CLASS A
1998 (10) $10.00 -- -- -- -- $ 0.05 $10.05 0.55% $ 1,375 0.60%* 0.87%* 2.27%* 2.00%* 0.92%*
- -----------------------------------
CALIFORNIA MUNICIPAL BOND PORTFOLIO
- -----------------------------------
CLASS A
1998 (11) $10.00 $0.01 $(0.01) -- $(0.01) $ 0.07 $10.07 0.78% $ 2,158 0.60%* 0.87%* 2.73%* 2.46%* 0.00%*
<FN>
* ANNUALIZED.
** TOTAL RETURN DOES NOT REFLECT THE SALES CHARGE ON THE CLASS D SHARES.
*** FORMERLY CLASS G SHARES.
(1) THE TAX FREE PORTFOLIO--CLASS D COMMENCED OPERATIONS ON NOVEMBER 1, 1994.
(2) THE CALIFORNIA TAX EXEMPT PORTFOLIO--CLASS G COMMENCED OPERATIONS ON
MAY 11, 1994.
(3) THE INSTITUTIONAL TAX FREE PORTFOLIO--CLASS C COMMENCED OPERATIONS ON
SEPTEMBER 11, 1995.
(4) THE PENNSYLVANIA TAX FREE PORTFOLIO--CLASS A COMMENCED
OPERATIONS ON JANUARY 21, 1994.
(5) THE INTERMEDIATE-TERM MUNICIPAL PORTFOLIO CLASS D CLOSED ON
JUNE 30, 1996.
(6) THE INTERMEDIATE-TERM MUNICIPAL PORTFOLIO--CLASS D COMMENCED
OPERATIONS ON SEPTEMBER 28, 1993.
(7) THE PENNSYLVANIA MUNICIPAL BOND PORTFOLIO--CLASS A COMMENCED OPERATIONS ON
AUGUST 25, 1998.
(8) THE MASSACHUSETTS MUNICIPAL BOND PORTFOLIO--CLASS A COMMENCED OPERATIONS
ON AUGUST 19, 1998.
(9) THE NEW JERSEY MUNICIPAL BOND PORTFOLIO--CLASS A COMMENCED OPERATIONS ON
AUGUST 18, 1998.
(10) THE NEW YORK MUNICIPAL BOND PORTFOLIO--CLASS A COMMENCED OPERATIONS ON
AUGUST 18, 1998.
(11) THE CALIFORNIA MUNICIPAL BOND PORTFOLIO--CLASS A COMMENCED
OPERATIONS ON AUGUST 19, 1998.
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
</FN>
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
67
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
SEI TAX EXEMPT TRUST -- AUGUST 31, 1998
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 eleven portfolios:
the Tax Free Portfolio, the California Tax Exempt Portfolio, the Institutional
Tax Free Portfolio, the Pennsylvania Tax Free Portfolio, Ohio Tax Free Portfolio
(collectively "the Money Market Portfolios"), the Intermediate-Term Municipal
Portfolio, the Pennsylvania Municipal Bond Portfolio, the Massachusetts
Municipal Bond Portfolio, the New Jersey Municipal Bond Portfolio, the New York
Municipal Bond Portfolio, and the California Municipal Bond Portfolio
(collectively "the Fixed Income Portfolios"). The Ohio Tax Free Portfolio had
not commenced operations as of August 31, 1998. The Trust is registered to offer
five classes of shares: Class A, Class B, Class C, Class D and Class CNI. 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.
RECLASSIFICATION OF COMPONENTS OF NET ASSETS -- The timing and
characterization of certain income and capital gains distributions are
determined annually in accordance with federal tax regulations which may differ
from generally accepted accounting principles. As a result, net investment
income (loss) and net realized gain (loss) on investment transactions for the
reporting period may differ significantly from distributions during such period.
These book/tax differences may be temporary or permanent in nature. To the
extent these differences are permanent, they are charged or credited to
paid-in-capital or accumulated net realized gain, as appropriate, in the period
that the differences arise. Accordingly, the following permanent differences,
have been reclassified to/from the following accounts:
ACCUMULATED
PAID-IN-CAPITAL REALIZED GAIN
PORTFOLIO (000) (000)
-------------- -------------- --------------
Institutional Tax Free (7) 7
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.
68
<PAGE>
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 Bond 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.
3. TRANSACTIONS WITH AFFILIATES
The Trust and SEI Investments 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 Massachusetts
Municipal Bond, New Jersey Municipal Bond, New York Municipal Bond, and
California Municipal Bond Portfolios, .35% of the average daily net asset value
of the Pennsylvania Municipal Bond 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
Investments 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 CNI 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 CNI, 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 CNI 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 CNI Class 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
69
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
SEI TAX EXEMPT TRUST -- AUGUST 31, 1998
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 Portfolio. Commencing April 16,
1996, SEI Investments Management Corporation ("SIMC") was appointed as the
Investment Adviser of the Intermediate-Term Municipal Portfolio. For its
services, SIMC is entitled to a fee, which is calculated daily and paid monthly,
at an annual rate of .33% of the Portfolio's average daily net assets.
Sub-Advisory services are provided to SIMC for the Intermediate-Term Municipal
Portfolio by SAW pursuant to a sub-advisory agreement dated April 16, 1996.
SIMC 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 Bond 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.
SIMC acts as the Investment Adviser to the New York, New Jersey,
Massachusetts and California Municipal Bond Portfolios. For its services,
SIMC receives a monthly fee equal to an annual rate of .33% of the average
daily net assets of the Portfolios.
Van Kampen Management Inc. ("Van Kampen"), acts as investment sub-adviser
on behalf of the New Jersey and the California Municipal Bond Portfolios and
is party to an investment sub-advisory agreement with the Trust and SIMC
dated June 25, 1998.
SAW acts as an investment sub-adviser on behalf of the New York and
Massachusetts Municipal Bond Portfolios and is party to an investment
sub-advisory agreement with the Trust and SIMC dated June 25, 1998.
SIMC is responsible for the supervision of, and payment of fees, to Van
Kampen and SAW in connection with their services to these Portfolios.
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, 1998, were as
follows:
INTERMEDIATE-
TERM PENNSYLVANIA MASSACHUSETTS
MUNICIPAL MUNICIPAL MUNICIPAL
PORTFOLIO BOND PORTFOLIO BOND PORTFOLIO
(000) (000) (000)
------------- -------------- --------------
Purchases $292,688 $28,496 $968
Sales 31,911 25,822 99
NEW JERSEY NEW YORK CALIFORNIA
MUNICIPAL MUNICIPAL MUNICIPAL
BOND PORTFOLIO BOND PORTFOLIO BOND PORTFOLIO
(000) (000) (000)
------------- -------------- --------------
Purchases $909 $1,229 $938
Sales 99 11 --
Subsequent to October 31, 1997, 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, 1998. The Portfolios also had capital loss
carryforwards at August 31, 1998, as follows:
TOTAL
CAPITAL
LOSS
CARRYOVER
AUGUST 31, EXPIRES EXPIRES EXPIRES EXPIRES EXPIRES
PORTFOLIO 1998 2002 2003 2004 2005 2006
- -------------- --------- ------- -------- --------- ------- -------
Tax Free
Portfolio $ 21,748 $17,406 $ 93 $ -- $2,889 $1,360
California
Tax Exempt
Portfolio 6,636 -- -- -- 6,636 --
Institutional
Tax Free
Portfolio 4,408 -- -- -- 4,407 1
Intermediate-
Term
Municipal
Portfolio 433,012 -- 196,956 236,056 -- --
Pennsylvania
Tax Free
Portfolio 11,751 -- -- -- 11,751 --
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.
70
<PAGE>
- --------------------------------------------------------------------------------
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, 1998, for
each Portfolio are as follows:
INTERMEDIATE-
TERM PENNSYLVANIA MASSACHUSETTS
MUNICIPAL MUNICIPAL MUNICIPAL
PORTFOLIO BOND PORTFOLIO BOND PORTFOLIO
(000) (000) (000)
------------- -------------- --------------
Aggregate gross
unrealized
appreciation $15,203 $4,005 $ 5
Aggregate gross
unrealized
depreciation (260) (25) --
------- ------ ----
Net unrealized
appreciation $14,943 $3,980 $ 5
======= ====== ====
NEW JERSEY NEW YORK CALIFORNIA
MUNICIPAL MUNICIPAL MUNICIPAL
BOND BOND BOND
PORTFOLIO PORTFOLIO PORTFOLIO
(000) (000) (000)
------------- -------------- --------------
Aggregate gross
unrealized
appreciation $ 5 $ 7 $ 8
Aggregate gross
unrealized
depreciation (1) -- --
--- --- ---
Net unrealized
appreciation $ 4 $ 7 $ 8
=== ==== ===
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 for the year
ended August 31, 1998. As of August 31, 1998 the portfolio did not have any
borrowings under this facility.
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).
71
<PAGE>
NOTES TO FINANCIAL STATEMENTS (concluded)
- --------------------------------------------------------------------------------
SEI TAX EXEMPT TRUST -- AUGUST 31, 1998
8. SHARE TRANSACTIONS (000):
<TABLE>
--------------------- -------------------- -----------------------
<S> <C> <C> <C>
CALIFORNIA INSTITUTIONAL
TAX FREE TAX EXEMPT TAX FREE
PORTFOLIO PORTFOLIO PORTFOLIO
--------------------- -------------------- -----------------------
1998 1997 1998 1997 1998 1997
--------- --------- -------- -------- -------- --------
SHARES ISSUED AND REDEEMED:
Class A:
Shares Issued 2,868,542 1,929,474 471,131 378,414 4,812,268 5,109,226
Shares Issued in Lieu of Cash Distributions 2,527 1,321 76 63 1,150 547
Shares Redeemed (2,758,801) (1,839,669) (483,007) (371,901) (4,999,980) (4,945,279)
--------- --------- ------------ ------- --------- ---------
Total Class A Transactions 112,268 91,126 (11,800) 6,576 (186,563) 164,494
--------- --------- ------------ ------- --------- ---------
Class B:
Shares Issued -- -- -- -- 404,501 74,602
Shares Issued in Lieu of Cash Distributions -- -- -- -- 857 73
Shares Redeemed -- -- -- -- (345,134) (54,051)
--------- --------- ------------ ------- --------- ---------
Total Class B Transactions -- -- -- -- 60,224 20,624
--------- --------- ------------ ------- --------- ---------
Class C:
Shares Issued -- -- -- -- 169,692 66,525
Shares Issued in Lieu of Cash Distributions -- -- -- -- -- --
Shares Redeemed -- -- -- -- (156,390) (76,352)
--------- --------- ------------ ------- --------- ---------
Total Class C Transactions -- -- -- -- 13,302 (9,827)
--------- --------- ------------ ------- --------- ---------
Class D:
Shares Issued -- 1 -- -- -- --
Shares Issued in Lieu of Cash Distributions -- -- -- -- -- --
Shares Redeemed -- (6) -- -- -- --
--------- --------- ------------ ------- --------- ---------
Total Class D Transactions -- (5) -- -- -- --
--------- --------- ------------ ------- --------- ---------
Class CNI (1):
Shares Issued -- -- 1,076,760 817,088 -- --
Shares Issued in Lieu of Cash Distributions -- -- 9,619 9,680 -- --
Shares Redeemed -- -- (1,024,432) (765,343) -- --
--------- --------- ------------ -------- --------- ---------
Total CNI Class Transactions -- -- 61,947 61,425 -- --
--------- --------- ------------ -------- --------- ---------
Increase (Decrease) in Capital Shares 112,268 91,121 50,147 68,001 (113,037) 175,291
========= ========= ============ ======== ========= =========
</TABLE>
(1) FORMERLY CLASS G SHARES.
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
72
<PAGE>
----------------- ----------------- ----------------
PENNSYLVANIA INTERMEDIATE-TERM PENNSYLVANIA
TAX FREE MUNICIPAL MUNICIPAL BOND
PORTFOLIO PORTFOLIO PORTFOLIO
------------------ ---------------- ----------------
1998 1997 1998 1997 1998 1997
------- ------- ------ ------ ------ ------
322,613 244,606 29,899 15,354 31 --
77 42 1,001 408 -- --
(322,186) (238,052) (8,369) (4,565) -- --
- -------- ------- ------ ------ ------ ------
504 6,596 22,531 11,197 31 --
------- ------- ------ ------ ------ ------
-- -- -- -- 1,858 2,057
-- -- -- -- 44 54
-- -- -- -- (1,783) (2,112)
------- ------- ------ ------ ------ ------
-- -- -- -- 119 (1)
------- ------- ------ ------ ------ ------
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
------- ------- ------ ------ ------ ------
-- -- -- -- -- --
------- ------- ------ ------ ------ ------
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
------- ------- ------ ------ ------ ------
-- -- -- -- -- --
------- ------- ------ ------ ------ ------
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
------- ------- ------ ------ ------ ------
-- -- -- -- -- --
------ ------- ------ ------ ------ ------
504 6,596 22,531 11,197 150 (1)
======== ======= ====== ====== ====== ======
----------------- ----------------- ----------------- ----------------
MASSACHUSETTS NEW JERSEY NEW YORK CALIFORNIA
MUNICIPAL BOND MUNICIPAL BOND MUNICIPAL BOND MUNICIPAL BOND
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------------- ----------------- ----------------- ----------------
1997 1998 1998 1998
----------------- ----------------- ----------------- ----------------
103 110 137 215
-- -- -- --
-- -- -- 1
--- --- --- ---
103 110 137 214
--- --- --- ---
-- -- -- --
-- -- -- --
-- -- -- --
--- --- --- ---
-- -- -- --
--- --- --- ---
-- -- -- --
-- -- -- --
-- -- -- --
--- --- --- ---
-- -- -- --
--- --- --- ---
-- -- -- --
-- -- -- --
-- -- -- --
--- --- --- ---
-- -- -- --
--- --- --- ---
-- -- -- --
-- -- -- --
-- -- -- --
--- --- --- ---
-- -- -- --
--- --- --- ---
103 110 137 214
=== === === ===
73
<PAGE>
NOTICE TO SHAREHOLDERS (Unaudited)
- --------------------------------------------------------------------------------
SEI TAX EXEMPT TRUST -- AUGUST 31, 1998
SHAREHOLDER VOTING RESULTS
- --------------------------
There were special meetings of shareholders of the Tax Free Portfolio, the
Institutional Tax Free Portfolio, the California Tax Exempt Portfolio, and the
Pennsylvania Tax Free Portfolio on July 29, 1998 to approve new advisory
agreements between the Trust, on behalf of the aforementioned Portfolios, and
Weiss, Peck & Greer, L.L.C. relating to the management of the assets of these
Portfolios. The results were as follows:
- ------------------
TAX FREE PORTFOLIO
- ------------------
<TABLE>
<S> <C> <C> <C>
FOR QUORUM: FOR PROPOSALS
Record Date Share Positions: 532,529,999.00 273,409,994.00 Shares 51.34% of Total Shares
Total Proxies: 4,957 1,253 Proxies 25.28% of Total Proxies
SHARES VOTED % OF VOTED % OF TOTAL
-------------- ------------ ------------
For 273,137,826.00 99.90% 51.29%
Against 155,650.00 0.06% 0.03%
Abstain 116,517.00 0.04% 0.02%
-------------- ------------ ------------
TOTAL 273,409,993.00 100.00% 51.34%
INSTITUTIONAL TAX FREE PORTFOLIO
- --------------------------------
FOR QUORUM: FOR PROPOSALS
Record Date Share Positions 1,029,363,101.00 537,735,003.00 Shares 52.24% of Total Shares
Total Proxies: 767 214 Proxies 27.90% of Total Proxies
SHARES VOTED % OF VOTED % OF TOTAL
-------------- ------------ ------------
For 537,540,218.00 99.96% 52.22%
Against 0.00 0.00% 0.00%
Abstain 194,784.00 0.04% 0.02%
-------------- ------------ ------------
TOTAL 537,735,002.00 100.00% 52.24%
CALIFORNIA TAX EXEMPT PORTFOLIO
- -------------------------------
FOR QUORUM: FOR PROPOSALS
Record Date Share Positions: 502,595,059.00 376,495,175.83 Shares 74.91% of Total Shares
Total Proxies: 2,927 277 Proxies 9.46% of Total Proxies
SHARES VOTED % OF VOTED % OF TOTAL
-------------- ------------ ------------
For 374,966,127.83 99.59% 74.61%
Against 568,699.00 0.15% 0.11%
Abstain 960,349.00 0.26% 0.19%
-------------- ------------ ------------
TOTAL 376,495,175.83 100.00% 74.91%
PENNSYLVANIA TAX FREE PORTFOLIO
- -------------------------------
FOR QUORUM: FOR PROPOSALS
Record Date Share Positions: 43,448,909.00 29,560,985.00 Shares 68.04% of Total Shares
Total Proxies: 40 23 Proxies 57.50% of Total Proxies
SHARES VOTED % OF VOTED % OF TOTAL
-------------- ------------ ------------
For 29,560,985.00 100.00% 68.04%
Against 0.00 0.00% 0.00%
Abstain 0.00 0.00% 0.00%
-------------- ------------ ------------
TOTAL 29,560,985.00 100.00% 68.04%
</TABLE>
74
<PAGE>
- --------------------------------------------------------------------------------
For shareholders that do not have an August 31, 1998 taxable year end, this
notice is for informational purposes only. For shareholders with an August 31,
1998 taxable year end, please consult your tax advisor as to the pertinence of
this notice.
For the fiscal year ended August 31, 1998 each fund is designating the following
items with regard to distributions paid during the year as follows:
<TABLE>
<S> <C> <C> <C>
(A) (B) (C)
LONG TERM ORDINARY (A+B)
CAPITAL GAINS INCOME TOTAL
DISTRIBUTIONS DISTRIBUTIONS DISTRIBUTIONS
PORTFOLIO (TAX BASIS) (TAX BASIS) (TAX BASIS)
- ---------- ------------- ------------- -------------
Tax Free Portfolio 0% 100% 100%
California Tax Exempt Portfolio 0% 100% 100%
Institutional Tax Free Portfolio 0% 100% 100%
Pennsylvania Tax Free Portfolio 0% 100% 100%
Intermediate-Term Municipal Portfolio 0% 100% 100%
Pennsylvania Municipal Bond Portfolio 5% 95% 100%
Massachusetts Municipal Bond Portfolio 0% 100% 100%
New Jersey Municipal Bond Portfolio 0% 100% 100%
New York Municipal Bond Portfolio 0% 100% 100%
California Municipal Bond Portfolio 0% 100% 100%
(D) (E) (F)
QUALIFYING TAX-EXEMPT FOREIGN
PORTFOLIO DIVIDENDS(1) INTEREST TAX CREDIT
- ---------- ------------- ------------- -------------
Tax Free Portfolio 0% 99% 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 Bond Portfolio 0% 98% 0%
Massachusetts Municipal Bond Portfolio 0% 100% 0%
New Jersey Municipal Bond Portfolio 0% 100% 0%
New York Municipal Bond Portfolio 0% 100% 0%
California Municipal Bond 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>
75
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
- --------------------------------------------------------------------------------
TO THE SHAREHOLDERS AND BOARD OF TRUSTEES
OF SEI TAX EXEMPT TRUST:
We have audited the accompanying statements of net assets of the Tax Free,
California Tax Exempt, Institutional Tax Free, Pennsylvania Tax Free,
Intermediate-Term Municipal, Pennsylvania Municipal Bond, and the
statements of assets and liabilities, including the schedules of investments, of
the Massachusetts Municipal Bond, New Jersey Municipal Bond, New York Municipal
Bond, and California Municipal Bond Portfolios of SEI Tax Exempt Trust (the
"Trust") as of August 31, 1998, 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, 1998, 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, Pennsylvania Municipal Bond, Massachusetts
Municipal Bond, New Jersey Municipal Bond, New York Municipal Bond, and
California Municipal Bond Portfolios of SEI Tax Exempt Trust as of August 31,
1998, 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, Pennsylvania
October 12, 1998
76
<PAGE>
- ---------------------
SEI TAX EXEMPT TRUST
- ---------------------
ANNUAL REPORT
- ---------------------
AUGUST 31, 1998
Robert A. Nesher
CHAIRMAN
TRUSTEES
William M. Doran
F. Wendell Gooch
Frank E. Morris
James M. Storey
George J. Sullivan, Jr.
OFFICERS
Edward D. Loughlin
PRESIDENT AND CHIEF EXECUTIVE OFFICER
Mark Nagle
CONTROLLER, CHIEF FINANCIAL OFFICER
Todd Cipperman
VICE PRESIDENT, ASSISTANT SECRETARY
Kathy Heilig
VICE PRESIDENT, ASSISTANT SECRETARY
Joseph M. O'Donnell
VICE PRESIDENT, ASSISTANT SECRETARY
Sandra K. Orlow
VICE PRESIDENT, ASSISTANT SECRETARY
Cynthia M. Parrish
VICE PRESIDENT, ASSISTANT SECRETARY
Kevin P. Robins
VICE PRESIDENT, ASSISTANT SECRETARY
Kathryn L. Stanton
VICE PRESIDENT, ASSISTANT SECRETARY
Richard W. Grant
SECRETARY
INVESTMENT ADVISERS
Morgan Grenfell Capital Management Incorporated
PENNSYLVANIA MUNICIPAL BOND PORTFOLIO
SEI Investments Management Corporation:
INTERMEDIATE-TERM MUNICIPAL PORTFOLIO
MASSACHUSETTS MUNICIPAL BOND PORTFOLIO
NEW JERSEY MUNICIPAL BOND PORTFOLIO
NEW YORK MUNICIPAL BOND PORTFOLIO
CALIFORNIA MUNICIPAL BOND PORTFOLIO
Weiss, Peck & Greer L.L.C.:
TAX FREE PORTFOLIO
CALIFORNIA TAX EXEMPT PORTFOLIO
INSTITUTIONAL TAX FREE PORTFOLIO
PENNSYLVANIA TAX FREE PORTFOLIO
SUB-ADVISERS
Standish, Ayer & Woods, Inc.
INTERMEDIATE-TERM MUNICIPAL PORTFOLIO
MASSACHUSETTS MUNICIPAL BOND PORTFOLIO
NEW YORK MUNICIPAL BOND PORTFOLIO
Van Kampen Management Inc.
CALIFORNIA MUNICIPAL BOND PORTFOLIO
NEW JERSEY MUNICIPAL BOND PORTFOLIO
MANAGER AND SHAREHOLDER SERVICING AGENT
SEI Investments 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 INVESTMENTS
DISTRIBUTION CO., THE DISTRIBUTOR OF THE SEI FUNDS, IS NOT AFFILIATED WITH ANY
BANK.
FOR MORE INFORMATION CALL
1[BULLET]800[BULLET]DIAL[BULLET]SEI/1[BULLET]800[BULLET]342[BULLET]5734
[LOGO OMITTED] INVESTMENTS
DISTRIBUTION
CO.
Oaks, PA 19456
800-DIAL-SEI/800-342-5734
SEI-F-024-09
