<PAGE> 1
SEI INDEX FUNDS
S&P 500 INDEX PORTFOLIO
BOND INDEX PORTFOLIO
SUPPLEMENT DATED MAY 1, 1996 TO
THE CLASS A PROSPECTUS
DATED JULY 31, 1995
THIS SUPPLEMENT TO THE PROSPECTUS SUPERSEDES AND REPLACES ANY EXISTING
SUPPLEMENTS TO THE PROSPECTUS. THIS SUPPLEMENT PROVIDES NEW AND ADDITIONAL
INFORMATION BEYOND THAT CONTAINED IN THE PROSPECTUS, AND SHOULD BE READ IN
CONJUNCTION WITH SUCH PROSPECTUS.
At a meeting held on March 18, 1996, the Trustees eliminated the Trust's Rule
12b-1 Distribution Plan for Class A shares, and approved a Class A shareholder
servicing plan that provides for shareholder servicing fees payable to the
Distributor of up to .25% of average net assets. These new arrangements are to
be effective as of May 1, 1996. Under this new plan, the Distributor may
provide a broad range of shareholder and administrative services itself, or may
enter into arrangements under which third parties provide such services and are
compensated by the Distributor. As a result of this change, effective May 1,
1996, the following "Annual Operating Expenses" table replaces the table on
page 2 of the Prospectus:
<TABLE>
<CAPTION>
ANNUAL OPERATING EXPENSES (as a percentage of average net assets)
- ---------------------------------------------------------------------------------------------------------------
S&P 500 INDEX PORTFOLIO BOND INDEX PORTFOLIO
----------------------- --------------------
<S> <C> <C>
Management/Advisory Fees (after fee waiver)(1) .18% .31%
12b-1 Fees None None
Total Other Expenses .07% .07%
Shareholder Servicing Expenses (after fee waiver)(2) .00% .00%
- ---------------------------------------------------------------------------------------------------------------
Total Operating Expenses (after fee waivers)(3) .25% .38%
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The Manager has waived, on a voluntary basis, a portion of its fee, and the
management/advisory fees shown reflect this voluntary waiver. The Manager
reserves the right to terminate its waiver at any time in its sole
discretion. Absent such fee waiver, management/advisory fees would be .25%
for the S&P 500 Index Portfolio and .42% for the Bond Index Portfolio. The
Portfolios' Management/Advisory fees have been restated to reflect
reductions in fee waivers.
(2) The Distributor has waived, on a voluntary basis, all or a portion of its
shareholder servicing fee, and the Shareholder Servicing Fees shown reflect
this waiver. The Distributor reserves the right to terminate its waiver at
any time in its sole discretion. Absent such waiver, Shareholder Servicing
Fees would be .25% for each of the Portfolios.
(3) Absent these fee waivers, total operating expenses would be .57% for the S&P
500 Index Portfolio and .74% for the Bond Index Portfolio. Additional
information may be found under "The Adviser" and "The Manager and
Shareholder Servicing Agent."
<TABLE>
<CAPTION>
EXAMPLE
- ---------------------------------------------------------------------------------------------------------------
An investor in a Portfolio would pay the following expenses on a
$1,000 investment assuming (1) a 5% annual return and
(2) redemption at the end of each time period:
1 YR. 3 YRS. 5 YRS. 10 YRS.
----- ------ ------ -------
<S> <C> <C> <C> <C>
S&P 500 Index $3 $ 8 $14 $32
Bond Index $4 $12 $21 $48
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
THE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE
EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.
The purpose of the expense table and example is to assist the investor in
understanding the various costs and expenses that may be directly or indirectly
borne by investors in Class A shares of the Portfolios. The S&P 500 Index
Portfolio also offers Class E shares which are subject to the same expenses,
except that there are different distribution costs. A person who purchases
shares through a financial institution may be charged separate fees by that
institution. Additional information may be found under "The Manager and
Shareholder Servicing Agent," "The Adviser" and "Distribution."
<PAGE> 2
____________
In connection with the elimination of the Portfolios' Class A Distribution
Plan, the "Distribution" section on pages 11 and 12 is replaced with the
following:
DISTRIBUTION AND SHAREHOLDER SERVICES.
SEI Financial Services Company (the "Distributor"), a wholly-owned subsidiary
of SEI, serves as each Portfolio's distributor pursuant to a distribution
agreement with the Trust. The S&P 500 Index Portfolio has adopted a
distribution plan for its Class E shares (the "Class E Plan") pursuant to Rule
12b-1 under the Investment Company Act of 1940, as amended (the "1940 Act").
The Portfolios have adopted a shareholder servicing plan for Class A shares
(the "Service Plan") under which a shareholder servicing fee of up to .25% of
average daily net assets attributable to Class A shares will be paid to the
Distributor. Under the Service Plan, the Distributor may perform, or may
compensate other service providers for performing, the following shareholder
and administrative services: maintaining client accounts; arranging for bank
wires; responding to client inquiries concerning services provided on
investments; assisting clients in changing dividend options, account
designations and addresses; sub-accounting; providing information on share
positions to clients; forwarding shareholder communications to clients;
processing purchase, exchange and redemption orders; and processing dividend
payments. Under the Service Plan, the Distributor may retain as a profit any
difference between the fee it receives and the amount it pays to third parties.
It is possible that an institution may offer different classes of shares to its
customers and thus receive different compensation with respect to different
classes. These financial institutions may also charge separate fees to their
customers.
The Trust may also execute brokerage or other agency transactions through the
Distributor for which the Distributor may receive usual and customary
compensation.
In addition, the Distributor may, from time to time in its sole discretion,
institute one or more promotional incentive programs, which will be paid by the
Distributor from the sales charge it receives or from any other source
available to it. Under any such program, the Distributor will provide
promotional incentives, in the form of cash or other compensation, including
merchandise, airline vouchers, trips and vacation packages, to all dealers
selling shares of the Portfolios. Such promotional incentives will be offered
uniformly to all dealers and predicated upon the amount of shares of the
Portfolios sold by the dealer.
____________
The second sentence of the "Description of Permitted Investments and Risk
Factors - Mortgage-Backed Securities" section on page 18 of the Prospectus is
replaced with the following sentence:
The mortgages backing these securities include conventional fifteen and
thirty-year fixed rate mortgages, graduated payment mortgages, balloon
mortgages and adjustable rate mortgages.
____________
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
<PAGE> 3
SEI INDEX FUNDS
S&P 500 INDEX PORTFOLIO
SUPPLEMENT DATED MAY 1, 1996 TO
THE CLASS E PROSPECTUS
DATED FEBRUARY 26, 1996
THIS SUPPLEMENT TO THE PROSPECTUS SUPERSEDES AND REPLACES ANY EXISTING
SUPPLEMENTS TO THE PROSPECTUS. THIS SUPPLEMENT PROVIDES NEW AND ADDITIONAL
INFORMATION BEYOND THAT CONTAINED IN THE PROSPECTUS, AND SHOULD BE READ IN
CONJUNCTION WITH SUCH PROSPECTUS.
At a meeting held on March 18, 1996, the Trustees reduced the payments
available under the existing Rule 12b-1 Distribution Plan to an amount not to
exceed .15% by eliminating the reimbursement component of the Plan. These new
arrangements are to be effective as of May 1, 1996. Payments made under the
Plan are characterized as compensation, and are not directly tied to
distribution expenses incurred by the Distributor. As a result of this change,
effective May 1, 1996, the following "Annual Operating Expenses" table replaces
the table on page 2 of the Prospectus.
ANNUAL OPERATING EXPENSES (as a percentage of average net assets)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------------
S&P 500 INDEX
-------------
<S> <C>
Management/Advisory Fees (after fee waiver)1 .18%
12b-1 Fees .15%
Other Expenses .07%
- --------------------------------------------------------------------------------------------------------------------------------
Total Operating Expenses (after fee waiver)2 .40%
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
1. The Manager has waived, on a voluntary basis, a portion of its fee,
and the management/advisory fees shown reflect this voluntary waiver.
The Manager reserves the right to terminate its waiver at any time in
its sole discretion. Absent such fee waiver, management/advisory fees
for the Portfolio would be .25%. The Portfolio's Management/Advisory
fees have been restated to reflect reductions in fee waivers.
2. Absent the Manager's fee waiver, total operating expenses for the
Portfolio would be .47% Additional information may be found under
"The Adviser" and "The Manager and Shareholder Servicing Agent."
EXAMPLE
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------------
An investor in a Portfolio would pay the following expenses on a $1,000 investment
assuming (1) a 5% annual return and (2) redemption at the end of each time period:
1 YR. 3YRS. 5 YRS. 10 YRS.
----- ----- ------ -------
<S> <C> <C> <C> <C>
$4 $13 $22 $51
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
THE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE
EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.
The purpose of the expense table and example is to assist the investor in
understanding the various costs and expenses that may be directly or indirectly
borne by investors in shares of the Portfolio. The information set forth in
the foregoing table and example relates only to the Class E shares. The
Portfolio also offers Class A shares, which are subject to the same expenses,
except that there are different distribution costs. A person who purchases
shares through an account with a financial institution may be charged separate
fees by that institution. Additional information may be found under "The
Manager and Shareholder Servicing Agent," "The Adviser" and "Distribution."
____________________________________
<PAGE> 4
In connection with the elimination of the reimbursement component of the Class
E Rule 12b-1 Plan and the elimination of the Class A Plan, the "Distribution"
section on pages 8 and 9 is amended as follows:
The second sentence of the first paragraph is amended to delete the reference
to the Class A Plan.
The following sentence is inserted at the end of the first paragraph:
The Portfolio has adopted a shareholder servicing plan for its Class A
shares (the "Class A Service Plan").
The second and third paragraphs are deleted.
The first sentence of the fourth paragraph is deleted and the following
sentence is inserted:
The Class E Plan provides for payments to the Distributor at an annual
rate of .15% of the Portfolio's average daily net assets attributable
to Class E shares.
__________________________________
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
