<PAGE>
SEI DAILY
INCOME TRUST
HOW TO READ THIS PROSPECTUS
- ------------------------------------------------------------------------
SEI Daily Income Trust is a mutual fund family that offers different classes of
shares in separate investment portfolios (Funds). The Funds have individual
investment goals and strategies. This prospectus gives you important information
about the Sweep Class Shares of the Funds that you should know before investing.
Please read this prospectus and keep it for future reference.
This prospectus has been arranged into different sections so that you can easily
review this important information. On the next page, there is some general
information you should know about the Funds. For more detailed information about
the Funds, please see:
MONEY MARKET FUND....................................................2
GOVERNMENT FUND......................................................4
THE FUNDS' OTHER INVESTMENTS.........................................6
THE INVESTMENT ADVISER...............................................6
PURCHASING AND SELLING FUND SHARES...................................7
DIVIDENDS, DISTRIBUTIONS AND TAXES...................................9
FINANCIAL HIGHLIGHTS................................................10
HOW TO OBTAIN MORE INFORMATION ABOUT SEI DAILY INCOME TRUST.......Back
Cover
<PAGE>
PROSPECTUS 1
INTRODUCTION - INFORMATION COMMON TO ALL FUNDS
Each Fund is a mutual fund. A mutual fund pools shareholders' money and, using
professional investment managers, invests it in securities.
Each Fund has its own investment goal and strategies for reaching that goal.
Each Fund's assets are managed under the direction of its Adviser. The Adviser
invests each Fund's assets in a way it believes will help each Fund achieve its
goals. Still, investing in the Funds involves risks, and there is no guarantee
that a Fund will achieve its goal. In fact, no matter how good a job the Adviser
does, you could lose money on your investment in a Fund, just as you could with
other investments. A Fund share is not a bank deposit, and it is not insured or
guaranteed by the FDIC or any government agency.
ALTHOUGH EACH FUND IS MANAGED TO MAINTAIN A CONSTANT PRICE PER SHARE OF $1.00,
IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUNDS.
- --------------------------------------------------------------------------------
YEAR 2000 RISKS
Like other mutual funds (and most organizations around the world), the Funds
could be affected by computer problems related to the transition to the year
2000. While no one knows if these problems will have any impact on the Funds or
on the financial markets in general, the Funds are taking steps to protect Fund
investors. These include efforts to ensure that the Funds' own systems are
prepared to make the transition to the year 2000, and to determine that the
problem will not affect the systems used by the Funds' mission-critical service
providers. The Funds have sought and received assurances from these service
providers that they are devoting significant resources to prevent material
adverse consequences to the Funds. Whether these steps will be effective can
only be known for certain in the year 2000. While such assurances have been
received, year 2000 problems may ultimately negatively affect the companies and
governments whose securities the Funds purchase, which may have an impact on the
value of the Funds' shares. There is additional information on these risks in
the Statement of Additional Information.
<PAGE>
2 PROSPECTUS
MONEY MARKET FUND
FUND SUMMARY
<TABLE>
<S> <C>
INVESTMENT GOAL Preserving principal and maintaining liquidity
while providing current income
- ------------------------------------------------------------------------------------------------------
SHARE PRICE VOLATILITY Very low
- ------------------------------------------------------------------------------------------------------
PRINCIPAL INVESTMENT STRATEGY The Fund is professionally managed to provide
liquidity, diversification and a competitive yield
by investing in high quality, short-term money
market instruments
</TABLE>
- ------------------------------------------------------------------------
INVESTMENT STRATEGY
The Money Market Fund is comprised of short-term U.S. dollar denominated debt
obligations that are rated in one of the two highest rating categories by
nationally recognized statistical rating organizations or that the Adviser
determines are of comparable quality. The Fund invests in: (i) commercial paper
and other short-term corporate obligations of U.S. and foreign issuers,
including asset-backed securities, rated in the highest rating category; (ii)
certificates of deposit, time deposits, bankers' acceptances, bank notes and
other obligations of U.S. savings and loan institutions, U.S. commercial banks
(including foreign branches of such banks), and U.S. and London branches of
foreign banks, that meet certain asset requirements; (iii) short-term
obligations issued by state and local governments; (iv) obligations of foreign
governments (including Canadian and Provincial Government and Crown Agency
obligations); and (v) U.S. Treasury obligations and obligations issued or
guaranteed as to principal and interest by agencies or intrumentalities of the
U.S. government. The Fund may also enter into fully-collateralized repurchase
agreements.
Using a top-down strategy and bottom-up security selection, the Adviser seeks
securities with an acceptable maturity, that are marketable and liquid, offer
competitive yields, and are issued by issuers that are on a sound financial
footing. The Adviser also considers factors such as the anticipated level of
interest rates and the maturity of individual securities relative to the
maturity of the Fund as a whole. The Fund follows strict Investment Company Act
rules about the credit quality, maturity and diversification of its investments.
WHAT ARE THE RISKS OF INVESTING IN THE MONEY MARKET FUND?
An investment in the Fund is subject to income risk, which is the possibility
that the Fund's yield will decline due to falling interest rates.
Although the Fund's U.S. government securities are considered to be among the
safest investments, they are not guaranteed against price movements due to
changing interest rates. Obligations issued by some U.S. government agencies are
backed by the U.S. Treasury, while others are backed solely by the ability of
the agency to borrow from the U.S. Treasury or by the agency's own resources.
An investment in the Fund is not a bank deposit. Although the Fund seeks to
maintain a constant price per share of $1.00, you may lose money by investing in
the Fund.
<PAGE>
PROSPECTUS 3
MONEY MARKET FUND
PERFORMANCE INFORMATION
The bar chart and the performance table below illustrate the risks and
volatility of an investment in the Fund. Of course, the Fund's past performance
does not necessarily indicate how the Fund will perform in the future.
This bar chart shows changes in the performance of the Fund's Class A Shares
from year to year for ten years. Since Class A Shares are invested in the same
portfolio of securities, returns for Sweep Class Shares will be substantially
similar to those of the Class A Shares, shown here, and will differ only to the
extent that each class has different expenses.*
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
1989 9.30%
1990 8.26%
1991 6.02%
1992 3.71%
1993 3.00%
1994 4.30%
1995 6.01%
1996 5.45%
1997 5.63%
1998 5.55%
</TABLE>
<TABLE>
<S> <C>
BEST QUARTER WORST QUARTER
2.03% 0.72%
(6/30/90) (6/30/93)
</TABLE>
* THE PERFORMANCE INFORMATION SHOWN ABOVE IS BASED ON A CALENDAR YEAR. THE
FUND'S CLASS A TOTAL RETURN FROM JANUARY 1, 1999, TO MARCH 31, 1999, WAS 1.21%.
This table shows the Fund's average annual total returns for Class A Shares for
the periods ending December 31, 1998.
<TABLE>
<CAPTION>
SINCE
1 YEAR 5 YEARS 10 YEARS INCEPTION
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------
MONEY MARKET FUND - CLASS A
SHARES 5.55% 5.39% 5.71% 6.52%*
- ----------------------------------------------------------------------
</TABLE>
* THE INCEPTION DATE FOR CLASS A SHARES OF THE FUND IS NOVEMBER 15, 1983. THE
INCEPTION DATE FOR SWEEP CLASS SHARES OF THE FUND IS JULY 15, 1998.
Please call 1-800-DIAL-SEI to obtain the Fund's current yield.
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------
FUND FEES AND EXPENSES
This table describes the highest fees and expenses that you may currently pay if
you buy and hold shares of the Fund.
<TABLE>
<CAPTION>
ANNUAL FUND OPERATING EXPENSES
(EXPENSES DEDUCTED FROM FUND ASSETS) SWEEP CLASS SHARES
<S> <C>
Investment Advisory Fees 0.02%
Distribution (12b-1) Fees 0.50%
Other Expenses 0.62%
-------
Total Annual Fund Operating Expenses 1.14%*
</TABLE>
* THE FUND'S TOTAL ACTUAL ANNUAL FUND OPERATING EXPENSES FOR THE MOST RECENT
FISCAL YEAR WERE LESS THAN THE AMOUNT SHOWN ABOVE BECAUSE THE ADVISER,
ADMINISTRATOR AND/OR DISTRIBUTOR ARE WAIVING A PORTION OF THEIR FEES IN ORDER TO
KEEP TOTAL OPERATING EXPENSES AT A SPECIFIED LEVEL. THE ADVISER, ADMINISTRATOR
AND OR DISTRIBUTOR MAY DISCONTINUE ALL OR PART OF THEIR WAIVERS AT ANY TIME.
WITH THESE FEE WAIVERS THE FUND'S ACTUAL TOTAL OPERATING EXPENSES ARE AS
FOLLOWS:
<TABLE>
<S> <C>
MONEY MARKET FUND - SWEEP CLASS SHARES 0.93%
</TABLE>
FOR MORE INFORMATION ABOUT THESE FEES, SEE "INVESTMENT ADVISER" AND
"DISTRIBUTION OF FUND SHARES."
EXAMPLE
This Example is intended to help you compare the cost of investing in the Fund
with the cost of investing in other mutual funds. The Example assumes that you
invest $10,000 in the Fund for the time periods indicated and that you sell your
shares at the end of the period. The Example also assumes that each year your
investment has a 5% return and Fund expenses remain the same. Although your
actual costs and returns might be different, your approximate costs of investing
$10,000 in the Fund would be:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
<S> <C> <C> <C> <C>
Money Market Fund - Sweep
Class Shares $116 $362 $628 $1,386
</TABLE>
<PAGE>
4 PROSPECTUS
GOVERNMENT FUND
FUND SUMMARY
<TABLE>
<S> <C>
INVESTMENT GOAL Preserving principal and maintaining liquidity
while providing current income
- ------------------------------------------------------------------------------------------------------
SHARE PRICE VOLATILITY Very low
- ------------------------------------------------------------------------------------------------------
PRINCIPAL INVESTMENT STRATEGY The Fund is professionally managed to provide
liquidity, diversification and a competitive yield
by investing in U.S. Government securities
</TABLE>
- ------------------------------------------------------------------------
INVESTMENT STRATEGY
The Fund invests exclusively in U.S. Treasury obligations, obligations issued or
guaranteed as to principal and interest by agencies or instrumentalities of the
U.S. government, and repurchase agreements fully-collateralized by such
obligations.
Using a top-down strategy and bottom-up security selection, the Adviser seeks
securities with an acceptable maturity that are marketable and liquid and offer
competitive yields. The Adviser also considers factors such as the anticipated
level of interest rates and the maturity of individual securities relative to
the maturity of the Fund as a whole. The Fund follows strict Investment Company
Act rules about the credit quality, maturity and diversification of its
investments.
WHAT ARE THE RISKS OF INVESTING IN THE GOVERNMENT FUND?
An investment in the Fund is subject to income risk, which is the possibility
that the Fund's yield will decline due to falling interest rates.
Although the Fund's U.S. government securities are considered to be among the
safest investments, they are not guaranteed against price movements due to
changing interest rates. Obligations issued by some U.S. government agencies are
backed by the U.S. Treasury, while others are backed solely by the ability of
the agency to borrow from the U.S. Treasury or by the agency's own resources.
An investment in the Fund is not a bank deposit. Although the Fund seeks to
maintain a constant price per share of $1.00, you may lose money by investing in
the Fund.
<PAGE>
PROSPECTUS 5
GOVERNMENT FUND
PERFORMANCE INFORMATION
The bar chart and the performance table below illustrate the risks and
volatility of an investment in the Fund. Of course, the Fund's past performance
does not necessarily indicate how the Fund will perform in the future.
This bar chart shows changes in the performance of the Fund's Class A Shares
from year to year for three years. Since Class A Shares are invested in the same
portfolio of securities, returns for Sweep Class Shares will be substantially
similar to those of the Class A Shares, shown here, and will differ only to the
extent that each class has different expenses.*
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
1996 5.35%
1997 5.49%
1998 5.45%
</TABLE>
<TABLE>
<CAPTION>
BEST QUARTER WORST QUARTER
<S> <C>
1.38% 1.26%
(12/31/97) (12/31/98)
</TABLE>
* THE PERFORMANCE INFORMATION SHOWN ABOVE IS BASED ON A CALENDAR YEAR. THE
FUND'S CLASS A TOTAL RETURN FROM JANUARY 1, 1999, TO MARCH 31, 1999, WAS 1.19%.
This table shows the Fund's average annual total returns for Class A Shares for
the periods ending December 31, 1998.
<TABLE>
<CAPTION>
1 YEAR SINCE INCEPTION
<S> <C> <C>
- -----------------------------------------------------------------
GOVERNMENT FUND - CLASS A SHARES 5.45% 5.46%*
- -----------------------------------------------------------------
</TABLE>
* THE INCEPTION DATE FOR CLASS A SHARES OF THE FUND IS OCTOBER 27, 1995. THE
INCEPTION DATE FOR SWEEP CLASS SHARES OF THE FUND IS JUNE 4, 1998.
Please call 1-800-DIAL-SEI to obtain the Fund's current yield.
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------
FUND FEES AND EXPENSES
This table describes the highest fees and expenses that you may currently pay if
you buy and hold shares of the Fund.
<TABLE>
<CAPTION>
ANNUAL FUND OPERATING EXPENSES
(EXPENSES DEDUCTED FROM FUND ASSETS) SWEEP CLASS SHARES
<S> <C>
Investment Advisory Fees 0.02%
Distribution (12b-1) Fees 0.50%
Other Expenses 0.53%
-------
Total Annual Fund Operating Expenses 1.05%*
</TABLE>
* THE FUND'S TOTAL ACTUAL ANNUAL FUND OPERATING EXPENSES FOR THE MOST RECENT
FISCAL YEAR WERE LESS THAN THE AMOUNT SHOWN ABOVE BECAUSE THE ADVISER,
ADMINISTRATOR AND/OR DISTRIBUTOR ARE WAIVING A PORTION OF THEIR FEES IN ORDER TO
KEEP TOTAL OPERATING EXPENSES AT A SPECIFIED LEVEL. THE ADVISER, ADMINISTRATOR
AND OR DISTRIBUTOR MAY DISCONTINUE ALL OR PART OF THEIR WAIVERS AT ANY TIME.
WITH THESE FEE WAIVERS THE FUND'S ACTUAL TOTAL OPERATING EXPENSES ARE AS
FOLLOWS:
<TABLE>
<S> <C>
GOVERNMENT FUND - SWEEP CLASS SHARES 0.95%
</TABLE>
FOR MORE INFORMATION ABOUT THESE FEES, SEE "INVESTMENT ADVISER" AND
"DISTRIBUTION OF FUND SHARES."
EXAMPLE
This Example is intended to help you compare the cost of investing in the Fund
with the cost of investing in other mutual funds. The Example assumes that you
invest $10,000 in the Fund for the time periods indicated and that you sell your
shares at the end of the period. The Example also assumes that each year your
investment has a 5% return and Fund expenses remain the same. Although your
actual costs and returns might be different, your approximate costs of investing
$10,000 in the Fund would be:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
<S> <C> <C> <C> <C>
Government Fund - Sweep Class
Shares $107 $334 $579 $1,283
</TABLE>
<PAGE>
6 PROSPECTUS
MORE INFORMATION ABOUT THE FUNDS' INVESTMENTS
THE FUNDS' OTHER INVESTMENTS
This prospectus describes the Funds' primary investment strategies. The Funds
are required to invest at least 80% of their assets, but normally will invest
100% of their assets, in the types of securities described in this prospectus.
However, the Funds also may invest in other securities, use other strategies and
engage in other investment practices, which are described in detail in the
Funds' Statement of Additional Information (SAI). Of course, there is no
guarantee that any Fund will achieve its investment goal.
The investments and strategies described in this prospectus are those that the
Funds use under normal conditions. During unusual economic or market conditions,
or for temporary defensive or liquidity purposes, each Fund may hold up to 100%
of its assets in cash or cash equivalents that would not ordinarily be
consistent with the Fund's objective.
INVESTMENT ADVISER
The Investment Adviser makes investment decisions for the Funds and continuously
reviews, supervises and administers each Fund's respective investment program.
The Board of Trustees supervises the Adviser and establishes policies that the
Adviser must follow in its management activities.
Wellington Management Company, LLP ("Wellington"), serves as the Adviser for the
Funds. As of March 31, 1999, Wellington had approximately $215 billion in assets
under management. For the fiscal year ended January 31, 1999, each Fund paid
Wellington advisory fees of 0.01% of its average daily net assets.
Timothy E. Smith is the portfolio manager of each Fund. Mr. Smith has been an
investment professional with Wellington since 1992.
<PAGE>
PROSPECTUS 7
PURCHASING AND SELLING FUND SHARES
This section tells you how to buy or sell (sometimes called "redeem") shares of
the Funds. The Funds offer Sweep Class Shares only to financial institutions for
their own or their customers' accounts. For information on how to open an
account and set up procedures for placing transactions, please call
1-800-DIAL-SEI.
HOW TO PURCHASE FUND SHARES
You may purchase shares on any day that the New York Stock Exchange is open for
business (a Business Day). However, Fund shares cannot be purchased by Federal
Reserve wire on Federal Reserve holidays on which wire transfers are restricted.
Financial institutions and intermediaries may purchase Sweep Class Shares by
placing orders with the Funds' transfer agent (or its authorized agent).
Institutions and intermediaries that use certain SEI proprietary systems may
place orders electronically through those systems. Cash investments must be
transmitted or delivered in federal funds to the Funds' wire agent by the close
of business on the same day the order is placed. The Funds may reject any
purchase order if they determine that accepting the order would not be in the
best interests of the Funds or their shareholders.
When you purchase or sell Fund shares through certain financial institutions
(rather than directly from the Funds), you may have to transmit your purchase
and sale requests to these financial institutions at an earlier time for your
transaction to become effective that day. This allows these financial
institutions time to process your requests and transmit them to the Funds.
Certain other intermediaries, including certain broker-dealers and shareholder
organizations, are authorized to accept purchase, redemption and exchange
requests for Fund shares. These requests are normally executed at the NAV next
determined after the intermediary receives the request. These authorized
intermediaries are responsible for transmitting requests and delivering funds on
a timely basis.
Investors who deal directly with a financial institution or financial
intermediary will have to follow the institution's or intermediary's procedures
for transacting with the Funds. For more information about how to purchase or
sell Fund shares through your financial institution, you should contact your
financial institution directly. Investors may be charged a fee for purchase
and/or redemption transactions effectuated through certain of these
broker-dealers or other financial intermediaries.
Each Fund's net asset value (NAV) is calculated once each Business Day at 4:30
p.m., Eastern time. So, for you to be eligible to receive dividends declared on
the day you submit your purchase order, generally the Funds must receive your
purchase order and federal funds (readily available funds) before each Fund
calculates its NAV.
HOW THE FUNDS CALCULATE NAV
NAV for one Fund share is the value of that share's portion of all of the net
assets in the Fund. The Funds value their securities by utilizing the amortized
cost valuation method (as described in the SAI). If the Funds think amortized
cost is unreliable, fair value prices may be determined in good faith using
methods approved by the Board of Trustees. Each Fund expects its NAV to remain
constant at $1.00 per share, although there is no guarantee that any Fund can
accomplish this.
HOW TO SELL YOUR FUND SHARES
Holders of Sweep Class Shares may sell shares by following procedures
established when they opened their account or accounts with financial
institution or intermediary. You may also sell your shares by contacting your
financial institution or financial intermediary by telephone. The sale price of
each share will be the next NAV determined after the Funds (or their authorized
intermediaries) receive your request.
<PAGE>
8 PROSPECTUS
PURCHASING AND SELLING FUND SHARES
RECEIVING YOUR MONEY
Normally, the Funds will make payment on your sale as promptly as possible after
they receive your request, but it will take up to three Business Days. Your
proceeds will be wired to your bank account.
REDEMPTIONS IN KIND
The Funds generally pay sale (redemption) proceeds in cash. However, under
unusual conditions that make the payment of cash unwise (and for the protection
of the Funds' remaining shareholders) the Funds might pay all or part of your
redemption proceeds in liquid securities with a market value equal to the
redemption price (redemption in kind). It is highly unlikely that your shares
would ever be redeemed in kind, but if they were, you might have to pay
transaction costs to sell the securities distributed to you, as well as taxes on
any capital gains from the sale as with any redemption.
SUSPENSION OF YOUR RIGHT TO SELL YOUR SHARES
A Fund may suspend your right to sell your shares if the NYSE restricts trading,
the SEC declares an emergency or for other reasons. More information about this
is in the SAI.
DISTRIBUTION OF FUND SHARES
SEI Investments Distribution Co. (SIDCo.) is the distributor of the shares of
the Funds. SIDCo. receives compensation, pursuant to a Rule 12b-1 Plan, for
distributing the Funds' Sweep Class Shares. The distribution fee for Sweep Class
Shares, as a percentage of daily net assets, may be up to 0.50%.
For Sweep Class Shares, shareholder servicing fees, as a percentage of average
daily net assets, may be up to 0.25%.
<PAGE>
PROSPECTUS 9
DIVIDENDS, DISTRIBUTIONS, AND TAXES
DIVIDENDS AND DISTRIBUTIONS
Each Fund declares dividends daily and distributes its income monthly. Each Fund
makes distributions of capital gains, if any, at least annually.
You will receive dividends and distributions in cash unless otherwise stated.
TAXES
PLEASE CONSULT YOUR TAX ADVISOR REGARDING YOUR SPECIFIC QUESTIONS ABOUT FEDERAL,
STATE AND LOCAL INCOME TAXES. Below the Funds have summarized some important tax
issues that affect the Funds and their shareholders. This summary is based on
current tax laws, which may change.
Each Fund will distribute substantially all of its income and capital gains, if
any. The dividends and distributions you receive may be subject to federal,
state and local taxation, depending upon your tax situation. If so, they are
taxable whether or not you reinvest them. Income distributions are generally
taxable at ordinary income tax rates. Capital gains distributions are generally
taxable at the rates applicable to long-term capital gains. EACH SALE OF SHARES
IS A TAXABLE EVENT.
MORE INFORMATION ABOUT TAXES IS IN THE FUNDS' SAI.
<PAGE>
10 PROSPECTUS
FINANCIAL HIGHLIGHTS
The tables that follow present performance information about the Sweep Class
Shares of each Fund. This information is intended to help you understand each
Fund's financial performance for the past five years, or, if shorter, the period
of the Funds' operations. Some of this information reflects financial
information for a single Fund share. The total returns in the table represent
the rate that you would have earned (or lost) on an investment in a Fund,
assuming you reinvested all of your dividends and distributions.
This information has been audited by Arthur Andersen LLP, independent public
accountants. Their report, along with each Fund's financial statements, appears
in the annual report that accompanies the Funds' Statement of Additional
Information. You can obtain the annual report, which contains more performance
information, at no charge by calling 1-800-DIAL-SEI.
SEI DAILY INCOME TRUST - FOR THE YEARS ENDED JANUARY 31
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
DISTRIBUTIONS
NET ASSET NET REALIZED AND DISTRIBUTIONS FROM
VALUE NET UNREALIZED FROM NET REALIZED NET ASSET
BEGINNING INVESTMENT GAINS (LOSSES) INVESTMENT CAPITAL VALUE END TOTAL
OF PERIOD INCOME ON SECURITIES INCOME GAINS OF PERIOD RETURN
--------- ---------- ------------------ -------------- -------------- ---------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
- --------------------
MONEY MARKET FUND
- ------------------
Sweep Class
1999(1).................... $ 1.00 $ 0.02 $ -- $ (0.02) $ -- $ 1.00 4.56%
- ------------------
GOVERNMENT FUND
- ---------------
Sweep Class
1999(2).................... $ 1.00 $ 0.03 $ -- $ (0.03) $ -- $ 1.00 4.49%
<CAPTION>
RATIO OF
NET
RATIO OF RATIO OF INVESTMENT
NET EXPENSES INCOME
RATIO OF INVESTMENT TO AVERAGE TO AVERAGE
NET ASSETS EXPENSES INCOME NET ASSETS NET ASSETS
END OF TO AVERAGE TO AVERAGE (EXCLUDING (EXCLUDING
PERIOD (000) NET ASSETS NET ASSETS WAIVERS) WAIVERS)
------------ ----------- ----------- ----------- ---------------
<S> <C> <C> <C> <C> <C>
- --------------------
MONEY MARKET FUND
- ------------------
Sweep Class
1999(1).................... $ 6,669 0.93% 4.36% 1.14% 4.15%
- ------------------
GOVERNMENT FUND
- ---------------
Sweep Class
1999(2).................... $ 3,248 0.95% 4.37% 1.05% 4.27%
</TABLE>
(1) Money Market Sweep Class shares were offered beginning July 15, 1998. All
ratios and total return for that period have been annualized.
(2) Government Sweep Class shares were offered beginning June 4, 1998. All
ratios and total return for that period have been annualized.
<PAGE>
SEI
INVESTMENTS
The Art of People. The Science of Results.
More information about the Funds are available without charge through the
following:
STATEMENT OF ADDITIONAL INFORMATION (SAI)
The SAI dated May 31, 1999, includes more detailed information
about SEI Daily Income Trust. The SAI is on file with the SEC and
is incorporated by reference into this prospectus. This means that
the SAI, for legal purposes, is part of this prospectus.
ANNUAL AND SEMI-ANNUAL REPORTS
These reports typically list the Funds holdings and contain information from
the Funds managers about fund strategies and market conditions and trends.
The reports also contain detailed financial information about the Funds.
TO OBTAIN MORE INFORMATION:
By Telephone: Call 1-8OO-DIAL-SEI
By Mail: Write to the Funds at:
One Freedom Valley Drive
Oaks, PA 19456
By Internet: http://www.seic.com
From the SEC: You can obtain the SAI or the Annual and Semi-Annual Reports,
as well as other information about the SEI Daily Income Trust, from the SECs
website (http://www.sec.gov). You may review and copy documents at the SEC
Public Reference Room in Washington, DC (for information call
1-800-SEC-0330). You may request documents by mail from the SEC, upon payment
of a duplicating fee, by writing to: Securities and Exchange Commission,
Public Reference Section, Washington, DC 20549-6009.
The Trusts Investment Company Act registration number is 811-3451.
INV-374
SEI
INVESTMENTS
PROSPECTUS AS OF OCTOBER 1, 1999
MONEY
MARKET
-----------------
Money Market Fund
-----------------
Government Fund
SWEEP CLASS
The Securities and Exchange
Commission has not approved
or disapproved any Fund shares
or determined whether this
prospectus is accurate or
complete. It is a crime for anyone
to tell you otherwise.
<PAGE>
SEI DAILY
INCOME TRUST
HOW TO READ THIS PROSPECTUS
- ------------------------------------------------------------------------
SEI Daily Income Trust is a mutual fund family that offers different classes of
shares in separate investment portfolios (Funds). The Funds have individual
investment goals and strategies, and are designed primarily for institutional
investors. This prospectus gives you important information about the Class B and
Class C Shares of the Funds that you should know before investing. Please read
this prospectus and keep it for future reference.
This prospectus has been arranged into different sections so that you can easily
review this important information. On the next page, there is some general
information you should know about the Funds. For more detailed information about
the Funds, please see:
MONEY MARKET FUND....................................................2
GOVERNMENT FUND......................................................4
THE FUNDS' OTHER INVESTMENTS.........................................6
THE INVESTMENT ADVISER...............................................6
PURCHASING AND SELLING FUND SHARES...................................7
DIVIDENDS, DISTRIBUTIONS AND TAXES...................................9
FINANCIAL HIGHLIGHTS................................................10
HOW TO OBTAIN MORE INFORMATION ABOUT
SEI DAILY INCOME TRUST......................................Back Cover
<PAGE>
PROSPECTUS 1
INTRODUCTION - INFORMATION COMMON TO ALL FUNDS
Each Fund is a mutual fund. A mutual fund pools shareholders' money and, using
professional investment managers, invests it in securities.
Each Fund has its own investment goal and strategies for reaching that goal.
Each Fund's assets are managed under the direction of its Adviser. The Adviser
invests each Fund's assets in a way it believes will help each Fund achieve its
goal. Still, investing in the Funds involves risk, and there is no guarantee
that a Fund will achieve its goal. In fact, no matter how good a job the Adviser
does, you could lose money on your investment in a Fund, just as you could with
other investments. A Fund share is not a bank deposit and it is not insured or
guaranteed by the FDIC or any other government agency.
ALTHOUGH EACH FUND IS MANAGED TO MAINTAIN A CONSTANT PRICE PER SHARE OF $1.00,
IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUNDS.
- --------------------------------------------------------------------------------
YEAR 2000 RISKS
Like other mutual funds (and most organizations around the world), the Funds
could be affected by computer problems related to the transition to the year
2000. While no one knows if these problems will have any impact on the Funds or
on the financial markets in general, the Funds are taking steps to protect Fund
investors. These include efforts to ensure that the Funds' own systems are
prepared to make the transition to the year 2000, and to determine that the
problem will not affect the systems used by the Funds' mission-critical service
providers. The Funds have sought and received assurances from these service
providers that they are devoting significant resources to prevent material
adverse consequences to the Funds. Whether these steps will be effective can
only be known for certain in the year 2000. While such assurances have been
received, year 2000 problems may ultimately negatively affect the companies and
governments whose securities the Funds purchase, which may have an impact on the
value of the Funds' shares. There is additional information on these risks in
the Statement of Additional Information.
<PAGE>
2 PROSPECTUS
MONEY MARKET FUND
FUND SUMMARY
<TABLE>
<S> <C>
INVESTMENT GOAL Preserving principal and maintaining liquidity
while providing current income
- ------------------------------------------------------------------------------------------------------
SHARE PRICE VOLATILITY Very low
- ------------------------------------------------------------------------------------------------------
PRINCIPAL INVESTMENT STRATEGY The Fund is professionally managed to provide
liquidity, diversification and a competitive yield
by investing in high quality, short-term money
market instruments
</TABLE>
- ------------------------------------------------------------------------
INVESTMENT STRATEGY
The Money Market Fund is comprised of short-term U.S. dollar denominated debt
obligations that are rated in one of the two highest rating categories by
nationally recognized statistical rating organizations or that the Adviser
determines are of comparable quality. The Fund invests in: (i) commercial paper
and other short-term corporate obligations of U.S. and foreign issuers,
including asset-backed securities, rated in the highest rating category; (ii)
certificates of deposit, time deposits, bankers' acceptances, bank notes and
other obligations of U.S. savings and loan institutions, U.S. commercial banks
(including foreign branches of such banks), and U.S. and London branches of
foreign banks, that meet certain asset requirements; (iii) short-term
obligations issued by state and local governments; (iv) obligations of foreign
governments (including Canadian and Provincial Government and Crown Agency
obligations); and (v) U.S. Treasury obligations and obligations issued or
guaranteed as to principal and interest by agencies or instrumentalities of the
U.S. government. The Fund may also enter into fully-collateralized repurchase
agreements.
Using a top-down strategy and bottom-up security selection, the Adviser seeks
securities with an acceptable maturity, that are marketable and liquid, offer
competitive yields, and are issued by issuers that are on a sound financial
footing. The Adviser also considers factors such as the anticipated level of
interest rates and the maturity of individual securities relative to the
maturity of the Fund as a whole. The Fund follows strict Investment Company Act
rules about the credit quality, maturity and diversification of its investments.
WHAT ARE THE RISKS OF INVESTING IN THE MONEY MARKET FUND?
An investment in the Fund is subject to income risk, which is the possibility
that the Fund's yield will decline due to falling interest rates.
Although the Fund's U.S. government securities are considered to be among the
safest investments, they are not guaranteed against price movements due to
changing interest rates. Obligations issued by some U.S. government agencies are
backed by the U.S. Treasury, while others are backed solely by the ability of
the agency to borrow from the U.S. Treasury or by the agency's own resources.
An investment in the Fund is not a bank deposit. Although the Fund seeks to
maintain a constant price per share of $1.00, you may lose money by investing in
the Fund.
<PAGE>
PROSPECTUS 3
MONEY MARKET FUND
PERFORMANCE INFORMATION
The bar chart and the performance table below illustrate the risks and
volatility of an investment in the Fund. Of course, the Fund's past performance
does not necessarily indicate how the Fund will perform in the future.
This bar chart shows changes in the performance of the Fund's Class C Shares for
three years.* Since Class C Shares are invested in the same portfolio of
securities, returns for Class B Shares will be substantially similar to those of
the Class C Shares, shown here, and will differ only to the extent that each
class has different expenses.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
1996 4.92%
1997 5.11%
1998 5.03%
</TABLE>
<TABLE>
<S> <C>
BEST QUARTER WORST QUARTER
1.28% 1.18%
(12/31/97) (12/31/98)
</TABLE>
* THE PERFORMANCE INFORMATION SHOWN ABOVE IS BASED ON A CALENDAR YEAR. THE
FUND'S CLASS C TOTAL RETURN FROM JANUARY 1, 1999 TO MARCH 31, 1999 WAS 1.09%.
This table shows the Fund's average annual total returns for Class B and Class C
Shares for the periods ending December 31, 1998.
<TABLE>
<CAPTION>
1 YEAR SINCE INCEPTION
<S> <C> <C>
- -----------------------------------------------------------------
MONEY MARKET FUND - CLASS B SHARES 5.24% 5.28%*
- -----------------------------------------------------------------
MONEY MARKET FUND - CLASS C SHARES 5.03% 5.09%**
- -----------------------------------------------------------------
</TABLE>
* THE INCEPTION DATE FOR CLASS B SHARES OF THE FUND IS AUGUST 4, 1997.
** THE INCEPTION DATE FOR CLASS C SHARES OF THE FUND IS MAY 17, 1995.
Please call 1-800-DIAL-SEI to obtain the Fund's current yield.
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------
FUND FEES AND EXPENSES
This table describes the highest fees and expenses that you may currently pay if
you buy and hold shares of the Fund.
<TABLE>
<CAPTION>
ANNUAL FUND OPERATING EXPENSES
(EXPENSES DEDUCTED FROM FUND ASSETS) CLASS B SHARES CLASS C SHARES
<S> <C> <C>
Investment Advisory Fees 0.02% 0.02%
Distribution (12b-1) Fees None None
Other Expenses 0.67% 0.87%
------- -------
Total Annual Fund Operating Expenses 0.69%* 0.89%*
</TABLE>
* THE FUND'S TOTAL ACTUAL ANNUAL FUND OPERATING EXPENSES FOR THE MOST RECENT
FISCAL YEAR WERE LESS THAN THE AMOUNT SHOWN ABOVE BECAUSE THE ADVISER,
ADMINISTRATOR AND/OR DISTRIBUTOR ARE EACH WAIVING A PORTION OF THEIR FEES IN
ORDER TO KEEP TOTAL OPERATING EXPENSES AT A SPECIFIED LEVEL. THE ADVISER,
ADMINISTRATOR AND/OR DISTRIBUTOR MAY EACH DISCONTINUE ALL OR PART OF THEIR
WAIVER AT ANY TIME. WITH THIS FEE WAIVER, THE FUND'S ACTUAL TOTAL OPERATING
EXPENSES ARE AS FOLLOWS:
<TABLE>
<S> <C>
MONEY MARKET FUND - CLASS B SHARES 0.48%
MONEY MARKET FUND - CLASS C SHARES 0.68%
</TABLE>
FOR MORE INFORMATION ABOUT THESE FEES, SEE "INVESTMENT ADVISER" AND
"DISTRIBUTION OF FUND SHARES."
EXAMPLE
This Example is intended to help you compare the cost of investing in the Fund
with the cost of investing in other mutual funds. The Example assumes that you
invest $10,000 in the Fund for the time periods indicated and that you sell your
shares at the end of the period. The Example also assumes that each year your
investment has a 5% return and Fund expenses remain the same. Although your
actual costs and returns might be different, your approximate costs of investing
$10,000 in the Fund would be:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
<S> <C> <C> <C> <C>
Money Market Fund - Class B
Shares $70 $221 $384 $ 859
Money Market Fund - Class C
Shares $91 $284 $493 $1,096
</TABLE>
<PAGE>
4 PROSPECTUS
GOVERNMENT FUND
FUND SUMMARY
<TABLE>
<S> <C>
INVESTMENT GOAL Preserving principal and maintaining liquidity
while providing current income
- ------------------------------------------------------------------------------------------------------
SHARE PRICE VOLATILITY Very low
- ------------------------------------------------------------------------------------------------------
PRINCIPAL INVESTMENT STRATEGY The Fund is professionally managed to provide
liquidity, diversification and a competitive yield
by investing in U.S. Government securities
</TABLE>
- ------------------------------------------------------------------------
INVESTMENT STRATEGY
The Fund invests exclusively in U.S. Treasury obligations, obligations issued or
guaranteed as to principal and interest by agencies or instrumentalities of the
U.S. government, and repurchase agreements fully-collateralized by such
obligations.
Using a top-down strategy and bottom-up security selection, the Adviser seeks
securities with an acceptable maturity that are marketable and liquid and offer
competitive yields. The Adviser also considers factors such as the anticipated
level of interest rates and the maturity of individual securities relative to
the maturity of the Fund as a whole. The Fund follows strict Investment Company
Act rules about the credit quality, maturity and diversification of its
investments.
WHAT ARE THE RISKS OF INVESTING IN THE GOVERNMENT FUND?
An investment in the Fund is subject to income risk, which is the possibility
that the Fund's yield will decline due to falling interest rates.
Although the Fund's U.S. government securities are considered to be among the
safest investments, they are not guaranteed against price movements due to
changing interest rates. Obligations issued by some U.S. government agencies are
backed by the U.S. Treasury, while others are backed solely by the ability of
the agency to borrow from the U.S. Treasury or by the agency's own resources.
An investment in the Fund is not a bank deposit. Although the Fund seeks to
maintain a constant price per share of $1.00, you may lose money by investing in
the Fund.
<PAGE>
PROSPECTUS 5
GOVERNMENT FUND
PERFORMANCE INFORMATION
The bar chart and the performance table below illustrate the risks and
volatility of an investment in the Fund. Of course, the Fund's past performance
does not necessarily indicate how the Fund will perform in the future.
This bar chart shows changes in the performance of the Fund's Class B Shares
from year to year for three years.* Since Class B Shares are invested in the
same portfolio of securities, returns for Class C Shares will be substantially
similar to those of the Class B Shares, shown here, and will differ only to the
extent that each Class has different expenses.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
1996 5.04%
1997 5.18%
1998 5.13%
</TABLE>
<TABLE>
<S> <C>
BEST QUARTER WORST QUARTER
1.30% 1.18%
(12/31/97) (12/31/98)
</TABLE>
* THE PERFORMANCE INFORMATION SHOWN ABOVE IS BASED ON A CALENDAR YEAR. THE
FUND'S CLASS B TOTAL RETURN FROM JANUARY 1, 1999 TO MARCH 31, 1999 WAS 1.12%.
This table shows the Fund's average annual total returns for Class B and Class C
Shares for the periods ending December 31, 1998.
<TABLE>
<CAPTION>
1 YEAR SINCE INCEPTION
<S> <C> <C>
- -----------------------------------------------------------------
GOVERNMENT FUND - CLASS B SHARES 5.13% 5.16%*
- -----------------------------------------------------------------
GOVERNMENT FUND - CLASS C SHARES 4.92% 4.96%**
- -----------------------------------------------------------------
</TABLE>
* THE INCEPTION DATE FOR CLASS B SHARES OF THE FUND IS AUGUST 22, 1995.
** THE INCEPTION DATE FOR CLASS C SHARES OF THE FUND IS JULY 1, 1997.
Please call 1-800-DIAL-SEI to obtain the Fund's current yield.
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------
FUND FEES AND EXPENSES
This table describes the highest fees and expenses that you may currently pay if
you buy and hold shares of the Fund.
<TABLE>
<CAPTION>
ANNUAL FUND OPERATING EXPENSES
(EXPENSES DEDUCTED FROM FUND ASSETS) CLASS B SHARES CLASS C SHARES
<S> <C> <C>
Investment Advisory Fees 0.02% 0.02%
Distribution (12b-1) Fees None None
Other Expenses 0.58% 0.78%
------- -------
TOTAL ANNUAL FUND OPERATING EXPENSES 0.60% 0.80%
Fee Waivers and Expense Reimbursements 0.05% 0.05%
NET EXPENSES 0.55%* 0.75%*
</TABLE>
* SEI INVESTMENTS FUND MANAGEMENT HAS CONTRACTUALLY AGREED TO WAIVE FEES AND TO
REIMBURSE EXPENSES IN ORDER TO KEEP TOTAL OPERATING EXPENSES OF CLASS B AND
CLASS C SHARES OF THE FUND FROM EXCEEDING 0.55% AND 0.75%, RESPECTIVELY. THE
FUND'S TOTAL ACTUAL ANNUAL FUND OPERATING EXPENSES FOR THE MOST RECENT FISCAL
YEAR WERE LESS THAN THE AMOUNT SHOWN ABOVE BECAUSE THE ADVISER, ADMINISTRATOR
AND/OR DISTRIBUTOR ARE EACH WAIVING A PORTION OF THEIR FEES IN ORDER TO KEEP
TOTAL OPERATING EXPENSES AT A SPECIFIED LEVEL. THE ADVISER, ADMINISTRATOR AND/OR
DISTRIBUTOR MAY EACH DISCONTINUE ALL OR PART OF THEIR WAIVERS AT ANY TIME. WITH
THESE FEE WAIVERS, THE FUND'S ACTUAL TOTAL OPERATING EXPENSES ARE AS FOLLOWS:
<TABLE>
<S> <C>
GOVERNMENT FUND - CLASS B SHARES 0.50%
GOVERNMENT FUND - CLASS C SHARES 0.70%
</TABLE>
FOR MORE INFORMATION ABOUT THESE FEES, SEE "INVESTMENT ADVISER" AND
"DISTRIBUTION OF FUND SHARES."
EXAMPLE
This Example is intended to help you compare the cost of investing in the Fund
with the cost of investing in other mutual funds. The Example assumes that you
invest $10,000 in the Fund for the time periods indicated and that you sell your
shares at the end of the period. The Example also assumes that each year your
investment has a 5% return and Fund expenses remain the same. Although your
actual costs and returns might be different, your approximate costs of investing
$10,000 in the Fund would be:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
<S> <C> <C> <C> <C>
Government Fund - Class B
Shares $56 $176 $307 $689
Government Fund - Class C
Shares $77 $240 $417 $930
</TABLE>
<PAGE>
6 PROSPECTUS
MORE INFORMATION ABOUT THE FUNDS' INVESTMENTS
THE FUNDS' OTHER INVESTMENTS
This prospectus describes the Funds' primary investment strategies. The Funds
are required to invest at least 80% of their assets, but normally will invest
100% of their assets, in the types of securities described in this prospectus.
However, the Funds also may invest in other securities, use other strategies and
engage in other investment practices, which are described in detail in the
Funds' Statement of Additional Information (SAI). Of course, there is no
guarantee that any Fund will achieve its investment goal.
The investments and strategies described in this prospectus are those that the
Funds use under normal conditions. During unusual economic or market conditions,
or for temporary defensive or liquidity purposes, each Fund may invest up to
100% of its assets in cash or cash equivalents that would not ordinarily be
consistent with the Fund's objectives.
INVESTMENT ADVISER
The Investment Adviser makes investment decisions for the Funds and continuously
reviews, supervises and administers each Fund's investment program. The Board of
Trustees supervises the Adviser and establishes policies that the Adviser must
follow in its management activities.
Wellington Management Company, LLP ("Wellington"), serves as the Adviser to the
Funds. As of March 31, 1999, Wellington had approximately $215 billion in assets
under management. For the fiscal year ended January 31, 1999, each Fund paid
Wellington advisory fees of 0.01% of its average daily net assets.
Timothy E. Smith is the portfolio manager of each Fund. Mr. Smith has been an
investment professional with Wellington since 1992.
<PAGE>
PROSPECTUS 7
PURCHASING AND SELLING FUND SHARES
This section tells you how to buy or sell (sometimes called "redeem") shares of
the Funds. The Funds offer Class B and Class C Shares only to financial
institutions for their own or their customers' accounts. For information on how
to open an account and set up procedures for placing transactions, please call
1-800-DIAL-SEI.
HOW TO PURCHASE FUND SHARES
You may purchase shares on any day that the New York Stock Exchange is open for
business (a Business Day). However, Fund shares cannot be purchased by Federal
Reserve wire on Federal holidays on which wire transfers are restricted.
Financial institutions and intermediaries may purchase Class B and Class C
Shares by placing orders with the Funds' Transfer Agent (or its authorized
agent). Institutions and intermediaries that use certain SEI proprietary systems
may place orders electronically through those systems. Cash investments must be
transmitted or delivered in federal funds to the Funds' wire agent by the close
of business on the same day the order is placed. The Funds may reject any
purchase order if they determine that accepting the order would not be in the
best interests of the Funds or their shareholders.
When you purchase or sell Fund shares through certain financial institutions
(rather than directly from the Funds), you may have to transmit your purchase
and sale requests to these financial institutions at an earlier time for your
transaction to become effective that day. This allows these financial
institutions time to process your requests and transmit them to the Funds.
Certain other intermediaries, including certain broker-dealers and shareholder
organizations, are authorized to accept purchase, redemption and exchange
requests for Fund shares. These requests are normally executed at the NAV next
determined after the intermediary receives the request. These authorized
intermediaries are responsible for transmitting requests and delivering funds on
a timely basis.
Investors who deal directly with a financial institution or financial
intermediary will have to follow the institution's or intermediary's procedures
for transacting with the Funds. For more information about how to purchase or
sell Fund shares through your financial institution, you should contact your
financial institution directly. Investors may be charged a fee for purchase
and/or redemption transactions effectuated through certain of these
broker-dealers or other financial intermediaries.
Each Fund's net asset value (NAV) is calculated once each Business Day at 4:30
p.m., Eastern time. So, for you to be eligible to receive dividends declared on
the day you submit your purchase order, generally the Funds must receive your
purchase order and federal funds (readily available funds) before each Fund
calculates its NAV.
HOW THE FUNDS CALCULATE NAV
NAV for one Fund share is the value of that share's portion of all of the net
assets in the Fund.
The Funds value their securities by utilizing the amortized cost valuation
method (as described in the SAI). If the Funds think amortized cost is
unreliable, fair value prices may be determined in good faith using methods
approved by the Board of Trustees. Each Fund expects its NAV to remain constant
at $1.00 per share, although there is no guarantee that any Fund can accomplish
this.
HOW TO SELL YOUR FUND SHARES
Holders of Class B and Class C Shares may sell shares by following procedures
established when they opened their account or accounts with their financial
institution or intermediary. You may also sell your shares by contacting your
financial institution or financial intermediary by telephone. The sale price of
each share will be the next NAV determined after the Funds (or their authorized
intermediaries) receive your request.
<PAGE>
8 PROSPECTUS
PURCHASING AND SELLING FUND SHARES
RECEIVING YOUR MONEY
Normally, the Funds will make payment on your sale as promptly as possible after
they receive your request, but it may take up to three Business Days. Your
proceeds will be wired to your bank account.
REDEMPTIONS IN KIND
The Funds generally pay sale (redemption) proceeds in cash. However, under
unusual conditions that make the payment of cash unwise (and for the protection
of the Funds' remaining shareholders) the Funds might pay all or part of your
redemption proceeds in liquid securities with a market value equal to the
redemption price (redemption in kind). It is highly unlikely that your shares
would ever be redeemed in kind, but if they were, you might have to pay
transaction costs to sell the securities distributed to you, as well as taxes on
any capital gains from the sale as with any redemption.
SUSPENSION OF YOUR RIGHT TO SELL YOUR SHARES
The Funds may suspend your right to sell your shares if the NYSE restricts
trading, the SEC declares an emergency or for other reasons. More information
about this is in the SAI.
DISTRIBUTION OF FUND SHARES
SEI Investments Distribution Co. (SIDCo.) is the distributor of the shares of
the Funds. SIDCo. receives no compensation for distributing the Funds' Class B
or Class C Shares.
For Class B and Class C Shares, shareholder servicing fees, as a percentage of
average daily net assets, may be up to 0.25%.
For Class B and Class C Shares, administrative service fees, as a percentage of
average daily net assets, may be up to 0.05% and 0.25%, respectively.
<PAGE>
PROSPECTUS 9
DIVIDENDS, DISTRIBUTIONS, AND TAXES
DIVIDENDS AND DISTRIBUTIONS
Each Fund declares dividends daily and distributes its income monthly. Each Fund
makes distributions of capital gains, if any, at least annually.
You will receive dividends and distributions in cash unless otherwise stated.
TAXES
PLEASE CONSULT YOUR TAX ADVISOR REGARDING YOUR SPECIFIC QUESTIONS ABOUT FEDERAL,
STATE AND LOCAL INCOME TAXES. Below the Funds have summarized some important tax
issues that affect the Funds and their shareholders. This summary is based on
current tax laws, which may change.
Each Fund will distribute substantially all of its income and capital gains, if
any. The dividends and distributions you receive may be subject to federal,
state and local taxation, depending upon your tax situation. If so, they are
taxable whether or not you reinvest them. Income distributions are generally
taxable at ordinary income tax rates. Capital gains distributions are generally
taxable at the rates applicable to long-term capital gains. EACH SALE OF SHARES
IS A TAXABLE EVENT.
MORE INFORMATION ABOUT TAXES IS IN THE FUNDS' SAI.
<PAGE>
10 PROSPECTUS
FINANCIAL HIGHLIGHTS
The tables that follow present performance information about Class B and Class C
Shares of each Fund. This information is intended to help you understand each
Fund's financial performance for the past five years, or, if shorter, the period
of the Funds' operations. Some of this information reflects financial
information for a single Fund share. The total returns in the table represent
the rate that you would have earned (or lost) on an investment in a Fund,
assuming you reinvested all of your dividends and distributions.
This information has been audited by Arthur Andersen LLP, independent public
accountants. Their report, along with each Fund's financial statements, appears
in the annual report that accompanies the Funds' Statement of Additional
Information. You can obtain the annual report, which contains more performance
information, at no charge by calling 1-800-DIAL-SEI.
SEI DAILY INCOME TRUST -- FOR THE YEARS ENDED JANUARY 31
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
DISTRIBUTIONS
NET ASSET NET REALIZED AND DISTRIBUTIONS FROM
VALUE NET UNREALIZED FROM NET REALIZED NET ASSET
BEGINNING INVESTMENT GAINS (LOSSES) INVESTMENT CAPITAL VALUE END TOTAL
OF PERIOD INCOME ON SECURITIES INCOME GAINS OF PERIOD RETURN
--------- ---------- ------------------ -------------- -------------- ---------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
- --------------------
MONEY MARKET FUND
- --------------------
Class B
1999....................... $ 1.00 $ 0.05 $ -- $ (0.05) $ -- $ 1.00 5.18%
1998(1).................... 1.00 0.03 -- (0.03) -- 1.00 5.29
1997....................... 1.00 0.05 -- (0.05) -- 1.00 5.13
1996....................... 1.00 0.06 -- (0.06) -- 1.00 5.67
1995....................... 1.00 0.04 -- (0.04) -- 1.00 4.24
Class C
1999....................... $ 1.00 $ 0.05 $ -- $ (0.05) $ -- $ 1.00 4.97%
1998....................... 1.00 0.05 -- (0.05) -- 1.00 5.12
1997....................... 1.00 0.05 -- (0.05) -- 1.00 4.92
1996(2).................... 1.00 0.04 -- (0.04) -- 1.00 3.79+
- ------------------
GOVERNMENT FUND
- ---------------
Class B
1999....................... $ 1.00 $ 0.05 $ -- $ (0.05) $ -- $ 1.00 5.08%
1998....................... 1.00 0.05 -- (0.05) -- 1.00 5.21
1997....................... 1.00 0.05 -- (0.05) -- 1.00 5.02
1996(3).................... 1.00 0.02 -- (0.02) -- 1.00 2.39+
Class C
1999....................... $ 1.00 $ 0.05 $ -- $ (0.05) $ -- $ 1.00 4.87%
1998(4).................... 1.00 0.03 -- (0.03) -- 1.00 5.01
<CAPTION>
RATIO OF
NET
RATIO OF RATIO OF INVESTMENT
NET EXPENSES INCOME
RATIO OF INVESTMENT TO AVERAGE TO AVERAGE
NET ASSETS EXPENSES INCOME NET ASSETS NET ASSETS
END OF TO AVERAGE TO AVERAGE (EXCLUDING (EXCLUDING
PERIOD (000) NET ASSETS NET ASSETS WAIVERS) WAIVERS)
------------ ----------- ----------- ----------- ---------------
<S> <C> <C> <C> <C> <C> <C>
- --------------------
MONEY MARKET FUND
- --------------------
Class B
1999....................... $ 7,875 0.48% 5.08% 0.69% 4.87%
1998(1).................... 7,383 0.48 5.26 0.72 5.02
1997....................... 770 0.50 4.96 0.76 4.70
1996....................... 6,616 0.50 5.53 0.75 5.28
1995....................... 6,314 0.51 4.49 0.75 4.25
Class C
1999....................... $ 132,831 0.68% 4.84% 0.89% 4.63%
1998....................... 86,922 0.68 5.02 0.92 4.78
1997....................... 30,528 0.66 4.84 0.92 4.58
1996(2).................... 2,460 0.70 5.17 0.96 4.91
- ------------------
GOVERNMENT FUND
- ---------------
Class B
1999....................... $ 34,676 0.50% 4.92% 0.60% 4.82%
1998....................... 29,102 0.50 5.06 0.61 4.95
1997....................... 53,144 0.50 4.91 0.62 4.79
1996(3).................... 14,997 0.50 5.27 0.63 5.14
Class C
1999....................... $ 39,881 0.70% 4.70% 0.80% 4.60%
1998(4).................... 25,341 0.70 4.94 0.81 4.83
</TABLE>
+ Returns are for the period indicated and have not been annualized.
(1) Money Market Class B shares were fully liquidated March 12, 1997 and
re-offered beginning August 12, 1997. All ratios and total return for that
period have been annualized.
(2) Money Market Class C Shares were offered beginning May 17, 1995. All ratios
for that period have been annualized.
(3) Government Class B shares were re-offered beginning August 22, 1995. All
ratios for that period have been annualized.
(4) Government Class C Shares were offered beginning July 1, 1997. All ratios
and total return for that period have been annualized.
<PAGE>
SEI
INVESTMENTS
The Art of People. The Science of Results.
More information about the Funds are available without charge through the
following:
STATEMENT OF ADDITIONAL INFORMATION (SAI)
The SAI dated May 31, 1999, includes more detailed information about SEI
Daily Income Trust. The SAI is on file with the SEC and is incorporated by
reference into this prospectus. This means that the SAI, for legal purposes,
is part of this prospectus.
ANNUAL AND SEMI-ANNUAL REPORTS
These reports typically list the Funds' holdings and contain information from
the Funds' managers about fund strategies and market conditions and trends.
The reports also contain detailed financial information about the Funds.
TO OBTAIN MORE INFORMATION:
By Telephone: Call 1-8OO-DIAL-SEI
By Mail: Write to the Funds at:
One Freedom Valley Drive
Oaks, PA 19456
By Internet: http://www.seic.com
From the SEC: You can obtain the SAI or the Annual and Semi-Annual Reports,
as well as other information about the SEI Daily Income Trust, from the SEC's
website (http://www.sec.gov). You may review and copy documents at the SEC
Public Reference Room in Washington, DC (for information call
1-800-SEC-0330). You may request documents by mail from the SEC, upon payment
of a duplicating fee, by writing to: Securities and Exchange Commission,
Public Reference Section, Washington, DC 20549-6009.
The Trust's Investment Company Act registration number is 811-3451.
INV-376
SEI
INVESTMENTS
PROSPECTUS AS OF OCTOBER 1, 1999
MONEY
MARKET
-----------------
Money Market Fund
-----------------
Government Fund
CLASS B & C
The Securities and Exchange
Commission has not approved
or disapproved any Fund shares
or determined whether this
prospectus is accurate or
complete. It is a crime for anyone
to tell you otherwise.
