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SEI TAX EXEMPT TRUST
PENNSYLVANIA MUNICIPAL BOND FUND
SUPPLEMENT DATED SEPTEMBER 20, 2000
TO THE PROSPECTUS DATED DECEMBER 31, 1999
THIS SUPPLEMENT PROVIDES NEW AND ADDITIONAL INFORMATION BEYOND THAT CONTAINED IN
THE PROSPECTUS, AND SHOULD BE READ IN CONJUNCTION WITH THE PROSPECTUS.
At the Special Meeting of Shareholders held on August 29, 2000, shareholders of
the Pennsylvania Municipal Bond Fund (the "Fund") voted on proposals relating to
the implementation of a "Manager of Managers" structure. In connection with the
"Manager of Managers" structure, shareholders approved the selection of SEI
Investments Management Corporation ("SIMC"), as investment adviser to the Fund.
Under the "Manager of Managers" structure, SIMC, as investment adviser to the
Fund, will, subject to the supervision and approval of the Board of Trustees of
SEI Tax Exempt Trust, hire, terminate or replace investment sub-advisers for the
Fund without shareholder approval. Further information about the "Manager of
Managers" structure is set forth in the Statement of Additional Information.
Deutsche Asset Management, Inc. ("DeAM"), formerly Morgan Grenfell Capital
Management Incorporated, will act as investment sub-adviser to the Fund. In
accordance with the Fund's investment objectives and policies, and under the
supervision of SIMC and the Board of Trustees, DeAM will be responsible for the
day-to-day investment management of all or a discrete portion of the assets of
the Fund.
IN CONNECTION WITH THE CHANGE OF INVESTMENT ADVISER TO THE FUND, THE "INVESTMENT
ADVISER" SECTION OF THE PROSPECTUS IS AMENDED BY REPLACING THE DISCLOSURE
CONCERNING DEAM WITH THE FOLLOWING DISCLOSURE:
SEI INVESTMENTS MANAGEMENT CORPORATION ("SIMC") ACTS AS THE MANAGER OF MANAGERS
OF THE FUND, AND IS RESPONSIBLE FOR THE INVESTMENT PERFORMANCE OF THE FUND SINCE
IT ALLOCATES THE FUND'S ASSETS TO ONE OR MORE SUB-ADVISERS AND RECOMMENDS HIRING
OR CHANGING SUB-ADVISERS TO THE BOARD OF TRUSTEES.
The Sub-Adviser makes investment decisions for the assets it manages and
continuously reviews, supervises and administers its investment program. SIMC
oversees the Sub-Adviser to ensure compliance with the Fund's investment
policies and guidelines, and monitors the Sub-Adviser's adherence to its
investment style. The Board of Trustees supervises SIMC and the Sub-Adviser;
establishes policies that it must follow in its management activities; and
oversees the hiring and termination of Sub-Advisers recommended by SIMC. SIMC
pays the Sub-Adviser out of the investment advisory fees it receives. As a
percentage of average net assets, SIMC's fee is 0.35%
IN CONNECTION WITH THE APPROVAL OF DEAM AS SUB-ADVISER TO THE FUND, THE
FOLLOWING DISCLOSURE IS ADDED AFTER THE SECTION "INVESTMENT ADVISER":
Sub-Adviser and Portfolio Managers
David W. Baldt is a Director and Executive Vice President of DeAM. Mr. Baldt has
been with DeAM since 1989. He has managed the Pennsylvania Municipal Bond Fund
since July, 1995. He has more than 28 years of investment experience
IN CONNECTION WITH THE CHANGE OF INVESTMENT ADVISER TO THE FUND, THE "FUND FEES
AND EXPENSES" SECTION OF THE PROSPECTUS IS AMENDED BY REPLACING THE CURRENT
DISCLOSURE WITH THE FOLLOWING DISCLOSURE:
FUND FEES AND EXPENSES
This table describes the fees and expenses that you may pay if you buy and hold
Fund shares.
<TABLE>
<CAPTION>
ANNUAL FUND OPERATING EXPENSES CLASS A SHARES CLASS B SHARES
(EXPENSES DEDUCTED FROM FUND ASSETS)
<S> <C> <C>
Investment Advisory Fees 0.35% 0.35%
Distribution (12b-1) Fees None None
Other Expenses 0.48% 0.52%
---- ----
Total Fund Operating Expenses 0.83%* 0.87%*
</TABLE>
* THE FUND'S TOTAL ACTUAL ANNUAL FUND OPERATING EXPENSES ARE EXPECTED TO BE LESS
THAN THE AMOUNT SHOWN ABOVE BECAUSE THE ADMINISTRATOR AND DISTRIBUTOR WILL WAIVE
A PORTION OF THEIR FEES IN ORDER TO KEEP TOTAL OPERATING EXPENSES AT A SPECIFIED
LEVEL. THE
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ADMINISTRATOR AND DISTRIBUTOR MAY DISCONTINUE ALL OR PART OF THEIR WAIVERS AT
ANY TIME. WITH THIS FEE WAIVER, THE FUND'S ACTUAL TOTAL OPERATING EXPENSES ARE
EXPECTED TO BE AS FOLLOWS:
<TABLE>
<S> <C>
PENNSYLVANIA MUNICIPAL BOND FUND -- CLASS A SHARES 0.60%
PENNSYLVANIA MUNICIPAL BOND FUND -- CLASS B SHARES 0.48%
</TABLE>
The information described in this section of the Prospectus under "Example"
continues to be effective.
