<PAGE>
SCHEDULE 14A INFORMATION
PROXY STATEMENT PURSUANT TO SECTION 14(A) OF THE SECURITIES EXCHANGE ACT OF 1934
(AMENDMENT NO. )
Filed by the Registrant [X]
Filed by a Party other than the Registrant [_]
Check the appropriate box:
[X] Preliminary Proxy Statement [_] CONFIDENTIAL, FOR USE OF THE
COMMISSION ONLY (AS PERMITTED BY
[_] Definitive Proxy Statement RULE 14C-5(D)(2))
[_] Definitive Additional Materials
[_] Soliciting Material Pursuant to (S)240.14a-11(c) or (S)240.14a-12
SEI INSTITUTIONAL MANAGED TRUST
------------------------------------------------------------------------
(Name of Registrant as Specified In Its Charter)
SEI INSTITUTIONAL MANAGED TRUST
------------------------------------------------------------------------
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
[X] $125 per Exchange Act Rules 0-11(c)(1)(ii), 14a-6(i)(1), 14a-6(i)(2) or
Item 22(a)(2) of Schedule 14A.
[_] $500 per each party to the controversy pursuant to Exchange Act Rule 14a-
6(i)(3).
[_] Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11.
(1) Title of each class of securities to which transaction applies:
(2) Aggregate number of securities to which transaction applies:
(3) Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-11 (Set forth the amount on which the
filing fee is calculated and state how it was determined):
(4) Proposed maximum aggregate value of transaction:
(5) Total fee paid:
[_] Fee paid previously with preliminary materials.
[_] Check box if any part of the fee is offset as provided by Exchange Act Rule
0-11(a)(2) and identify the filing for which the offsetting fee was paid
previously. Identify the previous filing by registration statement number,
or the Form or Schedule and the date of its filing.
(1) Amount Previously Paid:
(2) Form, Schedule or Registration Statement No.:
(3) Filing Party:
(4) Date Filed:
Notes:
<PAGE>
PRELIMINARY PROXY
SEI INSTITUTIONAL MANAGED TRUST
2 OLIVER STREET
BOSTON, MA 02109
NOTICE OF SPECIAL MEETING OF SHAREHOLDERS
JUNE 16, 1995
Notice is hereby given that a Special Meeting of Shareholders of certain
Portfolios (each a "Portfolio" and, together, the "Portfolios") of SEI
Institutional Managed Trust (the "Trust") will be held at the offices of SEI
Financial Management Company ("SFM"), 680 East Swedesford Road, Wayne,
Pennsylvania 19087-1658, on Friday, June 16, 1995, at 10:00 a.m.
At the meeting, Shareholders will be asked to consider and act on proposed
amendments to the Portfolios' investment limitations, a new management
structure, new advisory and sub-advisory agreements, and other matters detailed
below (the "Proposals"). The enclosed proxy card permits Shareholders of each
Portfolio either to vote for or against all Proposals that apply to that
Portfolio by checking a single box, or to vote on each applicable Proposal
separately.
SECTION I.
Proposals 1 through 14 are interrelated in that they reflect a determination
by the Trust's Board of Trustees to recommend that the Portfolios' various
investment limitations be updated and restructured to the extent permitted by
applicable law to provide management efficiency and investment flexibility, and
to minimize the need for Shareholder meetings to change certain investment
limitations in the future, as described in the accompanying Proxy Statement.
These investment limitations apply in nearly all cases to each Portfolio and
govern the activities of each Portfolio on a stand-alone basis. Each
Portfolio's Shareholders will vote separately (i.e., by Portfolio) on these
Proposals. The specifics of these 14 Proposals are as follows:
1. Proposal to combine each Portfolio's fundamental limitation
concerning diversification with each Portfolio's fundamental limitation
concerning the acquisition of more than 10% of the outstanding voting
securities of any one issuer, and to amend certain other language.
2. Proposal to amend each Portfolio's fundamental limitation concerning
borrowing.
3. Proposal to amend each Portfolio's fundamental limitation concerning
making loans.
4. Proposal to reclassify each Portfolio's fundamental limitation
concerning pledging assets as non-fundamental, and to amend certain
language.
5. Proposal to reclassify each Portfolio's fundamental limitation
concerning investment in securities for the purpose of exercising control
as non-fundamental.
6. Proposal to amend each Portfolio's fundamental limitation concerning
investment in real estate and commodities.
7. Proposal to reclassify each Portfolio's fundamental limitation
concerning short sales and margins sales as non-fundamental, and to amend
certain language.
<PAGE>
8. Proposal to reclassify each Portfolio's fundamental limitation
concerning investment in securities of investment companies as non-
fundamental, and to amend certain language.
9. Proposal to amend each Portfolio's fundamental limitation concerning
the issuance of senior securities.
10. Proposal to reclassify each Portfolio's fundamental limitation
concerning investment in securities of an issuer whose securities are owned
by officers and trustees of the Trust as non-fundamental.
11. Proposal to reclassify each Portfolio's fundamental limitation
concerning investment of more than 5% of the total assets in securities of
companies with less than three years of operating history as non-
fundamental.
12. Proposal to eliminate each Portfolio's fundamental limitation
concerning investment in warrants, puts, calls, straddles, spreads or
combinations thereof.
13. Proposal to eliminate the Bond Portfolio's fundamental limitation
concerning investment in convertible securities.
14. Proposal to eliminate the Bond Portfolio's fundamental limitation
requiring it to invest solely in securities listed as "appropriate
investments."
SECTION II.
Proposals 15 through 18 relate to a new management structure approved by the
Trust's Board of Trustees wherein SFM, which already acts as investment adviser
to four Portfolios of the Trust, will act as investment adviser for certain
other Portfolios of the Trust, and subject to approval by the Board of
Trustees, will appoint and replace investment sub-advisers for such Portfolios,
if such structure is approved by vote of the Shareholders of each Portfolio
voting on these Proposals. This structure requires an order of exemption from
the SEC before becoming operative. The specifics of these Proposals are as
follows:
15. Proposal to authorize the Board of Trustees to appoint additional or
replacement investment sub-advisers for the Capital Appreciation Portfolio
without seeking approval of the Portfolio's Shareholders of the contracts
pursuant to which such sub-advisers serve.
16. Proposal to authorize the Board of Trustees to appoint additional or
replacement investment sub-advisers for the Equity Income Portfolio without
seeking approval of the Portfolio's Shareholders of the contracts pursuant
to which such sub-advisers serve.
17. Proposal to authorize the Board of Trustees to appoint additional or
replacement investment sub-advisers for the Balanced Portfolio without
seeking approval of the Portfolio's Shareholders of the contracts pursuant
to which such sub-advisers serve.
18. Proposal to authorize the Board of Trustees to appoint additional or
replacement investment sub-advisers for the Bond Portfolio without seeking
approval of the Portfolio's Shareholders of the contracts pursuant to which
such sub-advisers serve.
SECTION III.
Proposals 19 through 22 relate to approval by Shareholders of the selection
of SFM as Investment Adviser to certain Portfolios and the approval of a form
of investment advisory agreement for these
<PAGE>
Portfolios, as described in the accompanying Proxy Statement. A copy of the
general form of Investment Advisory Agreement is attached as Exhibit A to the
Proxy Statement. The specifics of these Proposals are as follows:
19. Proposal to approve the selection of SFM as the Investment Adviser
for the Trust's Capital Appreciation Portfolio, and to approve the
Investment Advisory Agreement between the Trust, on behalf of the Capital
Appreciation Portfolio, and SFM.
20. Proposal to approve the selection of SFM as the Investment Adviser
for the Trust's Equity Income Portfolio, and to approve the Investment
Advisory Agreement between the Trust, on behalf of the Equity Income
Portfolio, and SFM.
21. Proposal to approve the selection of SFM as the Investment Adviser
for the Trust's Balanced Portfolio, and to approve the Investment Advisory
Agreement between the Trust, on behalf of the Balanced Portfolio, and SFM.
22. Proposal to approve the selection of SFM as the Investment Adviser
for the Trust's Bond Portfolio, and to approve the Investment Advisory
Agreement between the Trust, on behalf of the Bond Portfolio, and SFM.
SECTION IV.
In connection with the approval of SFM as Investment Adviser, Proposals 23
through 26 solicit Shareholder approval of the selection of the current
investment advisers for the Portfolios voting on these Proposals as investment
sub-advisers for those Portfolios and of a form of investment sub-advisory
agreement for each of those Portfolios. A copy of the general form of
investment sub-advisory agreement is attached as Exhibit B to the Proxy
Statement. If the management structure discussed in Sections II and III of the
attached Proxy Statement is approved and an SEC order is obtained, the Trustees
would be able, without Shareholder approval, to replace these sub-advisers
and/or appoint additional sub-advisers, and to approve new investment sub-
advisory agreements whose terms are different from those of the form of
investment sub-advisory agreement attached as Exhibit B to the Proxy Statement.
The specifics of these Proposals are as follows:
23. Proposal to approve the selection of SunBank Capital Management, N.A.
("SunBank") as an investment sub-adviser for the Capital Appreciation
Portfolio, and to approve the form of investment sub-advisory agreement
between SFM and SunBank.
24. Proposal to approve the selection of Merus Capital Management ("MCM")
as an Investment sub-adviser for the Equity Income Portfolio, and to
approve the form of investment sub-advisory agreement between SFM and MCM.
25. Proposal to approve the selection of SunBank as an investment sub-
adviser for the Balanced Portfolio, and to approve the form of investment
sub-advisory agreement between SFM and SunBank.
26. Proposal to approve the selection of Boatmen's Trust Company
("Boatmen's") as an investment sub-adviser for the Bond Portfolio, and to
approve the form of investment sub-advisory agreement between SFM and
Boatmen's.
<PAGE>
SECTION V.
27. Such other business as may properly come before the Meeting or any
adjourned session thereof.
By Order of the Board of Trustees
Richard W. Grant, Secretary
All Shareholders are cordially invited to attend the Meeting. However, if you
are unable to be present at the Meeting, you are requested to mark, sign, and
date the enclosed Proxy and return it promptly in the enclosed envelope so that
the Meeting may be held and a maximum number of shares may be voted.
Shareholders of record at the close of business on April 20, 1995 are
entitled to notice of and to vote at the Meeting or any adjournment thereof.
, 1995
<PAGE>
PRELIMINARY PROXY
SEI INSTITUTIONAL MANAGED TRUST
2 OLIVER STREET
BOSTON, MA 02109
-----------------
PROXY STATEMENT
This Proxy Statement is furnished in connection with the solicitation of
proxies by the Board of Trustees of SEI Institutional Managed Trust (the
"Trust") for use at the Special Meeting of Shareholders to be held on June 16,
1995 at 10:00 a.m. at the offices of SEI Financial Management Company ("SFM"),
680 East Swedesford Road, Wayne, Pennsylvania 19087-1658, and at any adjourned
session thereof (such meeting and any adjournment thereof are hereinafter
referred to as the "Meeting"). Shareholders of certain Portfolios (each a
"Portfolio" and, together, the "Portfolios") of the Trust ("Shareholders") of
record at the close of business on April 20, 1995 are entitled to vote at the
Meeting. The table below sets forth the approximate number of units of
beneficial interest ("shares") issued and outstanding for each Portfolio of the
Trust being solicited by this Proxy Statement:
<TABLE>
<CAPTION>
NET ASSETS SHARES OUTSTANDING
PORTFOLIO AS OF APRIL 20, 1995 AS OF APRIL 20, 1995
--------- -------------------- --------------------
<S> <C> <C>
Large Cap Growth
Large Cap Value
Capital Growth
Capital Appreciation
Equity Income
Balanced
Bond
</TABLE>
Each share is entitled to one vote and each fractional share is entitled to a
proportionate fractional vote on each matter as to which such shares are to be
voted at the Meeting.
In addition to the solicitation of proxies by mail, Trustees and officers of
the Trust and officers and employees of SFM, the current Manager and
Shareholder Servicing Agent for the Trust, may solicit proxies in person or by
telephone. Persons holding shares as nominees will, upon request, be reimbursed
for their reasonable expenses incurred in sending soliciting materials to their
principals. [THE COST OF SOLICITATION WILL BE BORNE BY .] The proxy and
this Proxy Statement are being mailed to Shareholders on or about May 8, 1995.
Shares represented by duly executed proxies will be voted in accordance with
the instructions given. Proxies may be revoked at any time before they are
exercised by a written revocation received by the President of the Trust at 680
East Swedesford Road, Wayne, Pennsylvania 19087-1658, by properly executing a
later-dated proxy, or by attending the Meeting and voting in person.
FOR THOSE SHAREHOLDERS WHO WISH TO VOTE FOR OR AGAINST ALL OF THE PROPOSALS
TO WHICH HIS OR HER SHARES RELATE, EACH PROXY CARD MAY BE COMPLETED BY CHECKING
A SINGLE BOX. HOWEVER, EACH PROXY CARD ALSO SETS FORTH EACH APPLICABLE
PROPOSAL, WHICH CAN BE VOTED ON SEPARATELY.
1
<PAGE>
INTRODUCTION
The Trust is organized as a Massachusetts business trust and is not required
to hold annual meetings of Shareholders. The Meeting is being called in order
to permit the Shareholders of certain Portfolios of the Trust to vote on a
number of issues related to the investment limitations of the Portfolios of the
Trust, as well as to vote on a new management structure, approve the selection
of a new investment adviser and new sub-advisers for certain Portfolios, and
adopt new investment advisory and sub-advisory agreements in connection with
the approval of those new relationships.
The Proposals contained in Section I of this Proxy Statement (Proposals 1
through 14) must be acted upon by the Shareholders of each Portfolio of the
Trust being solicited by this Proxy Statement, except Proposals 13 and 14,
which apply only to the Bond Portfolio. Shareholders of the Large Cap Growth
and Large Cap Value Portfolios (the "SFM-Advised Portfolios"), are not required
to act upon the Proposals contained in Sections II, III and IV of this Proxy
Statement, since those Portfolios are already set up to operate under the
management structure discussed in those Sections. Shareholders of the Capital
Growth Portfolio of the Trust are not required to act on the Proposals
contained in Sections II, III and IV of the Proxy Statement since that
Portfolio will not operate under the management structure described in those
Sections. In addition, the Real Estate Securities Portfolio is not yet being
offered publicly, and its sole Shareholder, SFM, will be solicited separately.
It is anticipated that the Trustees will recommend that the remaining
Portfolios of the Trust adopt the management structure discussed in Sections
II, III, and IV of this Proxy Statement. In the event that the Trustees make
such a recommendation, the remaining Portfolios of the Trust will be solicited
by a later proxy statement containing substantially the same information and
proposals as this Proxy Statement. Accordingly, Shareholders of the SFM-Advised
Portfolios, and the Capital Growth Portfolio need only consider the information
contained in Sections I and V of this Proxy Statement.
The Proposals contained in Sections II and III of this Proxy Statement
(Proposals 15 through 22) require action by the Shareholders of the Capital
Appreciation, Equity Income, Balanced, and Bond Portfolios of the Trust (the
"Non-SFM-Advised Portfolios") voting separately. Before becoming operative, the
new management structure discussed in these Sections requires an order of
exemption from the Securities and Exchange Commission (the "SEC"). The summary
voting tables below set forth the action required by the Shareholders of the
Non-SFM-Advised Portfolios of the Trust on each of the Proposals contained in
Sections II and III:
APPROVAL OF PROPOSALS AUTHORIZING THE
BOARD OF TRUSTEES TO APPOINT ADDITIONAL
OR REPLACEMENT INVESTMENT SUB-ADVISERS
WITHOUT SHAREHOLDER APPROVAL.
<TABLE>
<CAPTION>
PROPOSAL NUMBER PORTFOLIO
--------------- ---------
<S> <C>
15 Capital Appreciation
16 Equity Income
17 Balanced
18 Bond
</TABLE>
2
<PAGE>
APPROVAL OF SFM AS INVESTMENT ADVISER
FOR THE NON-SFM-ADVISED PORTFOLIOS AND
APPROVAL OF THE PROPOSED INVESTMENT ADVISORY AGREEMENT.
<TABLE>
<CAPTION>
PROPOSAL NUMBER PORTFOLIO
--------------- ---------
<S> <C>
19 Capital Appreciation
20 Equity Income
21 Balanced
22 Bond
</TABLE>
The Proposals contained in Section IV of this Proxy Statement (Proposals 23
through 26) require the Shareholders of the Non-SFM-Advised Portfolios to
approve the selection of the current investment adviser for each Portfolio
voting on these Proposals as investment sub-advisers for those Portfolios and
the new form of investment sub-advisory agreements for the Non-SFM-Advised
Portfolios. The summary voting table below sets forth the action required by
the Shareholders of the Non-SFM-Advised Portfolios of the Trust on each of the
Proposals in Section IV of this Proxy Statement:
APPROVAL OF NEW SUB-ADVISERS FOR THE NON-SFM-ADVISED PORTFOLIOS AND APPROVAL OF
THE PROPOSED INVESTMENT SUB-ADVISORY AGREEMENTS:
<TABLE>
<CAPTION>
PROPOSAL NUMBER PORTFOLIO PROPOSED SUB-ADVISER
--------------- --------- --------------------
<S> <C> <C>
23 Capital Appreciation SunBank Capital Management, N.A.
24 Equity Income Merus Capital Management
25 Balanced SunBank Capital Management, N.A.
26 Bond Boatmen's Trust Company
</TABLE>
SECTION I.
The Proposals in Section I relate to certain changes to the fundamental
investment limitations of certain Portfolios of the Trust. Essentially, the
Proposals regarding the Trust's investment limitations are designed to
establish a new set of fundamental investment limitations and non-fundamental
investment limitations for each of the Portfolios being solicited by this Proxy
Statement by amending certain of the existing fundamental investment
limitations and reclassifying some of them as non-fundamental. The Investment
Company Act of 1940 (the "1940 Act") and the securities laws of certain states
require investment companies to adopt certain investment policies, including
investment limitations that can be changed only by a Shareholder vote.
Investment companies may also elect to designate other policies as policies
that may be changed only by a Shareholder vote. Both types of policies are
referred to as "fundamental" policies. In addition, investment companies may
elect to designate other policies as policies that may be changed by the Board
of Trustees, without a Shareholder vote, and such policies are referred to as
non-fundamental policies. For purposes of fundamental and non-fundamental
policies, each separate series of an investment company is treated as a
separate investment company and each adopts its own fundamental and non-
fundamental policies and limitations.
3
<PAGE>
The Portfolios' fundamental investment policies and limitations are set forth
in the prospectuses and statement of additional information. The Trustees have
elected to reclassify some limitations as non-fundamental and/or modify other
fundamental limitations as set forth in order to: (1) update the policies and
limitations to reflect regulatory developments; (2) improve the Portfolios'
ability to adapt to developments in the securities markets; and (3) improve
management efficiency by making the Portfolios' limitations as consistent as
possible. In some cases, the Portfolios adopted fundamental limitations to
comply with federal or state regulatory requirements that have changed. The
Trustees do not think it is in the Portfolios' interest to have Shareholders
vote whenever regulatory changes require or permit the Portfolios to change
their investment limitations. In addition, securities markets are evolving
rapidly and the Trustees believe that the Portfolios' advisers need
flexibility, subject to Trustee oversight and general considerations of
prudence, to keep up with developments. Finally, it is more efficient from a
management and compliance point of view if each Portfolio has the same
limitations to the extent feasible. For this reason, the Trustees believe that
investment limitations should only be fundamental where specifically required
by law. THE FUNDAMENTAL NATURE OF EACH PORTFOLIO'S INVESTMENT OBJECTIVE, AS
DISTINGUISHED FROM ITS INVESTMENT LIMITATIONS, WILL NOT BE CHANGED.
The amendments to a Portfolio's fundamental limitations will become effective
immediately upon Shareholder approval. For each Portfolio, if a Proposal is not
approved by vote of the Shareholders of the Portfolio, the current limitation
as applied to the Portfolio will remain unchanged.
1. PROPOSAL TO COMBINE EACH PORTFOLIO'S FUNDAMENTAL LIMITATION CONCERNING
DIVERSIFICATION WITH EACH PORTFOLIO'S FUNDAMENTAL LIMITATION CONCERNING THE
ACQUISITION OF MORE THAN 10% OF THE OUTSTANDING VOTING SECURITIES OF ANY ONE
ISSUER, AND TO AMEND CERTAIN OTHER LANGUAGE.
At the Meeting, Shareholders of each Portfolio will vote separately regarding
the combination of each Portfolio's fundamental limitation on diversification
with its fundamental limitation on acquiring more than 10% of the voting
securities of an issuer, which are currently stated as follows:
No Portfolio may purchase securities of any issuer (except securities
issued or guaranteed by the United States Government, its agencies or
instrumentalities) if, as a result, more than 5% of the total assets of the
Portfolio would be invested in the securities of such issuer. This
restriction applies to 75% of each Portfolio's total assets. This
restriction does not apply to the Real Estate Securities Portfolio.
No Portfolio may acquire more than 10% of the voting securities of any
one issuer.
Subject to Shareholder approval, the Trustees intend to replace each
Portfolio's current fundamental limitations with the following fundamental
limitation concerning diversification:
With respect to 75% of its total assets, no Portfolio other than the Real
Estate Securities Portfolio may (i) purchase securities of any issuer
(except securities issued or guaranteed by the United States Government,
its agencies or instrumentalities) if, as a result, more than 5% of its
4
<PAGE>
total assets would be invested in the securities of such issuer; or (ii)
acquire more than 10% of the outstanding voting securities of any one
issuer.
As revised, this single limitation will conform to the diversification
requirements of the 1940 Act.
If the Proposal is approved, each Portfolio would be required to invest 75%
of its total assets so that no more than 5% of total assets would be invested
in any one issuer, and so that each Portfolio owned no more than 10% of the
voting securities of any such issuer. As to the remaining 25% of total assets,
there would be no direct limitation on the amount of assets each Portfolio
could invest in any single issuer or the amount of voting securities of a
single issuer that each Portfolio could hold, so long as such position did not
contravene each Portfolio's policy regarding investment for the purpose of
exercising control over an issuer. This would permit each Portfolio, for
example, to invest 25% of its total assets in a single issuer's securities, or
to invest 10% of its total assets in securities of one issuer and 15% in
securities of another issuer. The Trustees believe that having increased
flexibility to acquire larger positions in the securities of individual issuers
may provide opportunities to enhance each Portfolio's performance. At the same
time, investing a larger percentage of a Portfolio's assets in a single
issuer's securities increases the Portfolio's exposure to credit and other
risks associated with that issuer's financial condition and business
operations, including market risk and the risk of bankruptcy or default.
Despite these amendments to each Portfolio's fundamental limitation on
diversification, the Portfolios will continue to conform to the
"diversification" requirements for regulated investment companies under the
Internal Revenue Code of 1986, as amended (the "Code").
If the Proposal is approved, the new fundamental diversification limitation
may not be changed with respect to a Portfolio without a vote of Shareholders
of that Portfolio. Adoption of the proposed limitation regarding
diversification is not expected to affect the way in which the Portfolios are
managed, the investment performance of the Portfolios, or the instruments in
which they invest.
THE TRUSTEES RECOMMEND THAT THE SHAREHOLDERS VOTE FOR PROPOSAL 1.
2. PROPOSAL TO AMEND EACH PORTFOLIO'S FUNDAMENTAL LIMITATION CONCERNING
BORROWING.
At the Meeting, the Shareholders of each Portfolio will vote separately
regarding the amendment of each Portfolio's fundamental limitation regarding
borrowing, which currently is stated as follows:
No Portfolio may borrow money, except for temporary or emergency purposes
and then only in an amount not exceeding 10% of the value of total assets
provided further that the Large Cap Growth, Small Cap Value, and High Yield
Bond Portfolios will not purchase securities while borrowings exceed 5% of
total assets. This borrowing provision is included solely to facilitate the
orderly sale of portfolio securities to accommodate heavy redemption
requests if they should occur and is not for investment purposes. All
borrowing will be repaid before making additional investments and any
interest paid on such borrowing will reduce income.
Subject to Shareholder approval, the Trustees intend to replace each
Portfolio's current fundamental limitation with the following amended
fundamental limitation concerning borrowing:
5
<PAGE>
No Portfolio may borrow money in an amount exceeding 33 1/3% of the value
of its total assets, provided that, for purposes of this limitation,
investment strategies which either obligate a Portfolio to purchase
securities or require a Portfolio to segregate assets are not considered to
be borrowings. To the extent that its borrowings exceed 5% of its assets,
(i) all borrowings will be repaid before making additional investments and
any interest paid on such borrowings will reduce income, and (ii) asset
coverage of at least 300% is required.
The primary purpose of this Proposal is to amend and update each Portfolio's
limitation on borrowing to clarify its application in light of current law and
interpretations thereof by regulatory authorities. As amended, the limitation
will afford each Portfolio increased flexibility in making investment
decisions, and may enable the Portfolios to take advantage of changing market
conditions.
Nevertheless, adoption of the proposed limitation is not expected to have a
material impact in the foreseeable future on the management of the Portfolios,
the investment performance of the Portfolios, or the securities or instruments
in which each of the Portfolios may invest. If the Proposal is approved, the
amended fundamental limitation regarding borrowing cannot be changed with
respect to a Portfolio without the vote of the Shareholders of that Portfolio.
THE TRUSTEES RECOMMEND THAT THE SHAREHOLDERS VOTE FOR PROPOSAL 2.
3. PROPOSAL TO AMEND EACH PORTFOLIO'S FUNDAMENTAL LIMITATION CONCERNING MAKING
LOANS.
At the Meeting, Shareholders of each Portfolio will vote separately regarding
the amendment of each Portfolio's fundamental limitation concerning loans,
which is currently stated as follows:
No Portfolio may make loans, except that (i) each Portfolio may purchase
or hold debt instruments in accordance with its investment objective and
policies; (ii) each Portfolio may enter into repurchase agreements,
provided that repurchase agreements maturing in more than seven days,
restricted securities and other securities which are not readily marketable
are not to exceed, in the aggregate, 10% of the Portfolio's total assets,
except for the Mid-Cap Growth and Real Estate Securities Portfolios, which
cannot exceed 15% of such Portfolio's total assets; and (iii) the Large Cap
Growth, Large Cap Value, Small Cap Value, Small Cap Growth, Capital
Appreciation, Equity Income, Balanced, Capital Growth, Real Estate
Securities and High Yield Bond Portfolios may engage in securities lending
as described in the Prospectuses and the Statement of Additional
Information.
Subject to Shareholder approval, the Trustees intend to replace each
Portfolio's current limitation with the following fundamental investment
limitation governing lending:
No Portfolio may make loans if, as a result, more than 33 1/3% of its
total assets would be lent to other parties, except that each Portfolio may
(i) purchase or hold debt instruments in accordance with its investment
objective and policies; (ii) enter into repurchase agreements; and (iii)
lend its securities.
The primary purpose of this Proposal is to amend and update each Portfolio's
limitation on lending to clarify its application in light of current law and
interpretations thereof by regulatory authorities. As
6
<PAGE>
amended, the limitation will afford each Portfolio increased flexibility in
making investment decisions, and may enable the Portfolios to take advantage of
changing market conditions. With respect to investments in illiquid and
restricted securities, the new limitation will not include any restrictions.
Instead, the Trustees have adopted separate non-fundamental limitations
concerning investment in illiquid and restricted securities which are detailed
below.
Nevertheless, adoption of the proposed limitation on lending is not expected
to affect in the foreseeable future the way in which the Portfolios are
managed, the investment performance of the Portfolios, or the instruments in
which they invest. If the Proposal is approved, the new fundamental lending
limitation cannot be changed without a future vote of Shareholders.
THE TRUSTEES RECOMMEND THAT THE SHAREHOLDERS VOTE FOR PROPOSAL 3.
4. PROPOSAL TO RECLASSIFY EACH PORTFOLIO'S FUNDAMENTAL LIMITATION CONCERNING
PLEDGING ASSETS AS NON-FUNDAMENTAL, AND TO AMEND CERTAIN LANGUAGE.
At the Meeting, the Shareholders of each Portfolio will vote separately to
reclassify as non-fundamental each Portfolio's fundamental limitation
concerning pledging, mortgaging or hypothecating its assets, which currently is
stated as follows:
No Portfolio may pledge, mortgage or hypothecate assets except to secure
temporary borrowing permitted by [the Portfolio's fundamental limitation on
borrowing] in aggregate amounts not to exceed 10% of total assets of such
Portfolio taken at current value at the time of the incurrence of such
loan.
Subject to Shareholder approval, the Trustees intend to amend this limitation
concerning pledging, mortgaging or hypothecating its assets to read as follows:
No Portfolio may pledge, mortgage or hypothecate assets except to secure
borrowings permitted by the Portfolio's fundamental limitation on
borrowing.
The Trustees recommend that the Shareholders vote to reclassify this
limitation since it is not legally required to be fundamental. The proposed
non-fundamental limitation on pledging assets, when considered in conjunction
with the amended fundamental limitation on lending, will afford the Portfolios
greater flexibility and may allow the Portfolios to take advantage of changing
market conditions.
Nonetheless if approved, this Proposal is not expected to have a material
impact on the management of any of the Portfolios, the investment performance
of the Portfolios, or the securities or instruments in which each of the
Portfolios may invest, for the Trustees do not expect that the Portfolios'
overall policy with respect to pledging assets will change in the near future.
If the Proposal is approved, the non-fundamental limitation concerning
pledging, mortgaging or hypothecating can be changed with respect to a
Portfolio without the vote of the Shareholders of that Portfolio.
THE TRUSTEES RECOMMEND THAT THE SHAREHOLDERS VOTE FOR PROPOSAL 4.
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5. PROPOSAL TO RECLASSIFY EACH PORTFOLIO'S FUNDAMENTAL LIMITATION CONCERNING
INVESTMENT IN SECURITIES FOR THE PURPOSE OF EXERCISING CONTROL AS NON-
FUNDAMENTAL.
At the Meeting, the Shareholders of each Portfolio will vote separately
regarding the reclassification as non-fundamental each Portfolio's fundamental
limitation concerning investment in securities for the purpose of exercising
control over management of any company, which currently is stated as follows:
No Portfolio may invest in companies for the purpose of exercising
control.
Reclassification of the fundamental limitation as non-fundamental will not
affect the current management of the Portfolios, the investment performance of
the Portfolios, or the securities or instruments in which each of the
Portfolios may invest. The Portfolios have no present intention to invest in
companies for the purpose of exercising control, for the Trustees do not expect
that the Portfolios' policy with respect to investing in companies for the
purpose of exercising control will change in the near future. However, if the
Proposal is approved, the non-fundamental limitation regarding investing for
the purpose of exercising control over management of any company can be changed
with respect to a Portfolio without the vote of the Shareholders of that
Portfolio so that, in the future, the Portfolios may invest in companies in
order to exercise control over management.
THE TRUSTEES RECOMMEND THAT THE SHAREHOLDERS VOTE FOR PROPOSAL 5.
6. PROPOSAL TO AMEND EACH PORTFOLIO'S FUNDAMENTAL LIMITATION CONCERNING
INVESTMENT IN REAL ESTATE AND COMMODITIES.
At the Meeting, Shareholders of each Portfolio will vote separately regarding
the amendment of each Portfolio's fundamental limitation with respect to
investing in real estate and commodities, which is currently stated as follows:
No Portfolio may purchase or sell real estate, real estate limited
partnership interests, commodities or commodities contracts. However,
subject to the permitted investments, the Portfolios may purchase
obligations issued by companies which invest in real estate, commodities or
commodities contracts.
Subject to Shareholder approval, the Trustees intend to replace each
Portfolio's current fundamental limitation with the following amended
fundamental limitation concerning investment in real estate and commodities:
No Portfolio may purchase or sell real estate, physical commodities, or
commodities contracts, except that each Portfolio may purchase (i)
marketable securities issued by companies which own or invest in real
estate (including real estate investment trusts), commodities, or
commodities contracts, and (ii) commodities contracts relating to financial
instruments, such as financial futures contracts and options on such
contracts.
The primary purpose of this Proposal is to amend and update each Portfolio's
limitation on investing in real estate and commodities to clarify its
application in light of current law and
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interpretations thereof by regulatory authorities. If the Proposal is approved,
the amended fundamental limitation regarding investment in real estate and
commodities cannot be changed with respect to a Portfolio without the vote of
the Shareholders of that Portfolio.
Adoption of the proposed limitation concerning real estate is not expected to
significantly affect the way in which the Portfolios are managed or the way in
which securities or instruments are selected for the Portfolios. The Portfolios
will not acquire real estate. However, the proposed limitation would clarify
several points. First, the proposed limitation would make it explicit that the
Portfolios may acquire a security or other instrument that is secured by a
mortgage or other right to foreclose on real estate, in the event of a default.
Second, the proposed limitation would clarify the fact that the Portfolios may
invest in securities issued or guaranteed by companies engaged in acquiring,
constructing, financing, developing, or operating real estate projects (e.g.,
securities of issuers that develop various industrial, commercial, or
residential real estate projects such as factories, office buildings, or
apartments). Any investments in these securities or other instruments are, of
course, subject to each Portfolio's investment objective and policies, as well
as to other limitations regarding diversification and concentration in
particular industries. Moreover, to the extent that the Portfolios invest to a
greater degree in real estate related securities, they will be subject to the
risks of the real estate market.
Adoption of the proposed limitation regarding commodities and commodities
contracts is intended to allow the Portfolios to engage to the extent permitted
by law in transactions involving commodities contracts relating to financial
instruments (i.e., financial futures contracts and options on such contracts).
Thus, while no Portfolio may acquire physical commodities or futures contracts
thereon, a Portfolio may, if approved by the Board of Trustees and disclosed in
its Prospectus, invest in financial futures and options. At present, the
Trustees have not approved the use of financial futures and options with
respect to any of the Portfolios other than the Large Cap Growth Portfolio, but
may do so in the future.
Futures contracts provide for the future sale by one party and purchase by
another party of a specified amount of a specific security at a specified
future time and at a specified price. An option on a futures contract gives the
purchaser the right, in exchange for a premium, to assume a position in a
futures contract at a specified exercise price during the term of the option.
To the extent approved by the Board of Trustees, each Portfolio may use futures
contracts and related options for bona fide hedging purposes, to offset changes
in the value of securities held or expected to be acquired or be disposed of,
to minimize fluctuations in foreign currencies, or to gain exposure to a
particular market or instrument. Similarly, each Portfolio may buy and sell
futures contracts and related options to manage its exposure to changing
interest rates and securities prices. Each Portfolio that engages in futures
transactions will minimize the risk that it will be unable to close out a
futures contract by only entering into futures contracts which are traded on
national futures exchanges. Further, each such Portfolio will limit its use of
futures to the extent necessary to qualify for exemption from regulation by the
Commodities Futures Trading Commission.
THE TRUSTEES RECOMMEND THAT THE SHAREHOLDERS VOTE FOR PROPOSAL 6.
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7. PROPOSAL TO RECLASSIFY EACH PORTFOLIO'S FUNDAMENTAL LIMITATION CONCERNING
SHORT SALES AND MARGIN SALES AS NON-FUNDAMENTAL, AND TO AMEND CERTAIN
LANGUAGE.
At the Meeting, Shareholders of each Portfolio will vote separately to
reclassify the limitation with respect to purchases on margin and short sales
as non-fundamental and to amend certain language in the limitation. The
limitation is currently stated as follows:
No Portfolio may make short sales of securities, maintain a short
position or purchase securities on margin, except that each Portfolio may
obtain short-term credits as necessary for the clearance of security
transactions.
Subject to Shareholder approval, the Trustees intend to replace each
Portfolio's current fundamental investment limitation with the following non-
fundamental limitation that conforms with legal requirements imposed by
applicable law:
No Portfolio may purchase securities on margin or effect short sales,
except that each Portfolio may (i) obtain short-term credits as necessary
for the clearance of security transactions, (ii) provide initial and
variation margin payments in connection with transactions involving futures
contracts and options on such contracts, and (iii) make short sales
"against the box" or in compliance with the SEC's position regarding the
asset segregation requirements imposed by section 18 of the 1940 Act.
The primary purpose of reclassifying the Proposal is to remove any
unnecessary fundamental limitation that is not required to be fundamental. In a
short sale, an investor sells a borrowed security and has a corresponding
obligation to the lender to return the identical security. In an investment
technique known as a short sale "against the box," an investor sells securities
short while owning the same securities in the same amount, or having the right
to obtain equivalent securities. The investor could have the right to obtain
equivalent securities, for example, through its ownership of warrants, options,
or convertible bonds. The proposed non-fundamental limitation would clarify
that short sales against the box are not deemed to constitute short sales of
securities.
Certain state regulations currently prohibit mutual funds from entering into
any short sales other than short sales against the box. If the proposal is
approved, however, the Board of Trustees would be able to change each
Portfolio's proposed non-fundamental limitation in the future, without a vote
of Shareholders, if state regulations were to change to permit other types of
short sales, or if waivers from existing requirements were available, subject
to appropriate disclosure to investors. Pursuant to this limitation, each
Portfolio may make short sales in accordance with asset segregation
requirements imposed by the SEC staff. However, until certain state regulations
are changed to permit otherwise, the Portfolios will only sell short against
the box. In the event that these state regulations are eliminated, and upon
appropriate disclosure by a Portfolio, the Portfolios may engage in other types
of short sales.
Margin purchases involve the purchase of securities with money borrowed from
a broker. "Margin" is the cash or eligible securities that the borrower places
with a broker as collateral against the loan. Each Portfolio's current
fundamental limitation prohibits the Portfolio from purchasing securities on
margin, except that each Portfolio may purchase securities on margin to obtain
such short-term credits as may be necessary for the clearance of transactions,
and may make initial and variation
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margin payments in connection with the purchase and sale of futures contracts
and options on futures contracts.
Reclassification of this fundamental limitation on short selling is unlikely
to affect each Portfolio's investment techniques at this time. Similarly,
although reclassification of each Portfolio's fundamental limitation on margin
purchases is unlikely to affect the Portfolio's investment techniques at this
time, in the event of a change in federal regulatory requirements, each
Portfolio may alter its investment practices in the future. Any substantial
change in a Portfolio's investment strategies will be disclosed to
Shareholders.
The Board of Trustees believes that efforts to standardize this investment
limitation will facilitate investment compliance efforts and are in the best
interests of Shareholders. If the Proposal is approved, the non-fundamental
limitation concerning short sales and purchases on margin can be changed with
respect to a Portfolio without the vote of the Shareholders of that Portfolio.
THE TRUSTEES RECOMMEND THAT THE SHAREHOLDERS VOTE FOR PROPOSAL 7.
8. PROPOSAL TO RECLASSIFY EACH PORTFOLIO'S FUNDAMENTAL LIMITATION CONCERNING
INVESTMENT IN SECURITIES OF INVESTMENT COMPANIES AS NON-FUNDAMENTAL, AND TO
AMEND CERTAIN LANGUAGE.
At the Meeting, the Shareholders of each Portfolio will vote separately to
approve certain amended language and to reclassify as non-fundamental the
Portfolio's fundamental limitation concerning investment in securities of any
investment company, which currently is stated as follows:
No Portfolio may purchase securities of other investment companies except
as permitted by the 1940 Act, and the rules and regulations thereunder, and
may only purchase money market open-end investment companies. Under these
rules and regulations, a Portfolio is prohibited from acquiring the
securities of other investment companies if, as a result of such
acquisition, the Portfolio owns more than 3% of the total voting stock of
the company; securities issued by any one investment company represent more
than 5% of the total Portfolio assets; or securities (other than treasury
stock) issued by all investment companies represent more than 10% of the
total assets of the Portfolio. A Portfolio's purchase of such investment
company securities results in the bearing of expenses such that
shareholders would indirectly bear a proportionate share of the operating
expenses of such investment companies, including advisory fees.
Subject to Shareholder approval, the Trustees intend to replace each
Portfolio's current fundamental limitation with the following non-fundamental
limitation concerning investment in securities of investment companies:
No Portfolio may invest its assets in securities of any investment
company, except (i) by purchase in the open market involving only customary
brokers' commissions, (ii) in connection with mergers, acquisitions of
assets, or consolidations, or (iii) as otherwise permitted by the 1940 Act.
The primary purpose of this Proposal is to amend and update each Portfolio's
limitation on investing in investment companies to clarify its application in
light of current law and interpretations
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thereof by regulatory authorities. If the Proposal is approved, each
Portfolio's policy regarding investment in securities of investment companies
can be changed with respect to a Portfolio without the vote of the Shareholders
of that Portfolio.
The ability of mutual funds to invest in other investment companies is
restricted by the 1940 Act and by some state blue sky laws. Each Portfolio's
current fundamental limitation recites certain of federal and state
restrictions. The federal restrictions will remain applicable to each Portfolio
whether or not they are recited in a fundamental limitation. In addition, the
Portfolios will comply with all currently applicable state regulations.
However, should such state regulations be relaxed or eliminated in the future,
having the limitation as non-fundamental will allow the Trustees to change the
limitation without the vote of the Shareholders. This will afford the
Portfolios increased flexibility in making investment decisions, and may allow
the Portfolios to respond rapidly to changing market conditions.
Reclassification of the above fundamental limitation as non-fundamental is
not expected to have any current impact on each Portfolio's investment
practices or the securities or instruments in which each Portfolio invests, for
the Trustees do not expect that the Portfolios' policy with regard to investing
in other investment companies will change in the near future.
THE TRUSTEES RECOMMEND THAT THE SHAREHOLDERS VOTE FOR PROPOSAL 8.
9. PROPOSAL TO AMEND EACH PORTFOLIO'S FUNDAMENTAL LIMITATION CONCERNING THE
ISSUANCE OF SENIOR SECURITIES.
At the Meeting, Shareholders of each Portfolio will vote separately regarding
the amendment of each Portfolio's fundamental limitation with respect to the
issuance of senior securities, which is currently stated as follows:
No Portfolio may issue senior securities (as defined in the 1940 Act)
except in connection with permitted borrowing as described in the
Prospectuses and the Statement of Additional Information or as permitted by
rule, regulation or order of the Securities and Exchange Commission (the
"SEC").
Subject to Shareholder approval, the Trustees intend to replace each
Portfolio's current fundamental limitation with the following amended
fundamental limitation concerning the issuance of senior securities:
No Portfolio may issue senior securities (as defined in the 1940 Act)
except as permitted by rule, regulation or order of the Securities and
Exchange Commission (the "SEC").
The primary purpose of this Proposal is to amend and update each Portfolio's
limitation on senior securities to clarify its application in light of current
law and interpretations thereof by regulatory authorities. In addition, the
amended fundamental limitation will conform to the limitations of other
investment companies managed by SFM.
Although the definition of a "senior security" involves complex statutory and
regulatory concepts, a senior security is generally thought of as an obligation
of a fund which has a claim to the fund's assets
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or earnings that takes precedence over the claims of the fund's shareholders.
The 1940 Act generally prohibits mutual funds from issuing senior securities;
however, as long as certain conditions are satisfied, mutual funds are
permitted to engage in certain types of transactions that might be considered
to result in the issuance of "senior securities." For example, a transaction
which obligates a fund to pay money at a future date (e.g., the purchase of
securities to be settled on a date that is further away than the normal
settlement period) may be considered a "senior security." A mutual fund,
however, is permitted to enter into this type of transaction if it maintains a
segregated account containing liquid securities in an amount equal to its
obligation to pay cash for the securities at a future date. Each Portfolio will
utilize transactions that may be considered "senior securities" only in
accordance with applicable regulatory requirements under the 1940 Act. In
addition, the Trust may issue additional classes of shares in accordance with
Rule 18f-3 under the 1940 Act.
If the Proposal is approved, the amended fundamental limitation regarding the
issuance of senior securities cannot be changed with respect to a Portfolio
without the vote of the Shareholders of that Portfolio. Adoption of the
proposed limitation on senior securities is not expected to affect the way in
which each Portfolio is managed, the investment performance of each Portfolio,
or the securities or instruments in which each Portfolio invests.
THE TRUSTEES RECOMMEND THAT THE SHAREHOLDERS VOTE FOR PROPOSAL 9.
10. PROPOSAL TO RECLASSIFY EACH PORTFOLIO'S FUNDAMENTAL LIMITATION CONCERNING
INVESTMENT IN SECURITIES OF AN ISSUER WHOSE SECURITIES ARE OWNED BY
OFFICERS AND TRUSTEES OF THE TRUST AS NON-FUNDAMENTAL.
At the Meeting, the Shareholders of each Portfolio will vote separately
regarding reclassifying as a non-fundamental policy the Portfolio's fundamental
limitation concerning investment in securities of an issuer if those officers
and Trustees of the Trust or its investment adviser owning more than 1/2 of 1%
of such securities together own more than 5% of such securities. This
limitation is currently stated as follows:
No Portfolio may purchase or retain securities of an issuer if, to the
knowledge of the Trust, an officer, trustee, partner or director of the
Trust or any investment adviser of the Trust owns beneficially more than
1/2 of the 1% of the shares or securities of such issuer and all such
officers, trustees, partners and directors owning more than 1/2 of 1% of
such shares or securities together own more than 5% of such shares or
securities.
The purpose of this Proposal is to reclassify the limitation as non-
fundamental. This investment limitation was originally adopted to address state
blue sky regulations in connection with the registration of shares of the
Portfolios for sale. Only one state currently requires such a limitation. The
Trustees believe that this fundamental investment limitation should be
eliminated since, while it has not precluded investments in the past, its
elimination potentially will increase each Portfolio's flexibility when
choosing investments in the future.
If the Proposal is approved, each Portfolio's non-fundamental limitation
regarding investment in securities of an issuer whose securities are owned to a
certain extent by officers and Trustees of the
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Trust can be changed with respect to a Portfolio without the vote of the
Shareholders of that Portfolio, as any such changes may be necessary or
desirable in response to regulatory, market, legal, or other developments.
Nonetheless, reclassification of the fundamental limitation as a non-
fundamental limitation is not expected to affect the management of the
Portfolios, the investment performance of the Portfolios, or the securities or
instruments in which each of the Portfolios may invest, for the Trustees do not
expect that the Portfolios' policy with regard to securities owned by officers
and Trustees of the Trust will change in the near future.
THE TRUSTEES RECOMMEND THAT THE SHAREHOLDERS VOTE FOR PROPOSAL 10.
11. PROPOSAL TO RECLASSIFY EACH PORTFOLIO'S FUNDAMENTAL LIMITATION CONCERNING
INVESTMENT OF MORE THAN 5% OF ITS TOTAL ASSETS IN SECURITIES OF COMPANIES
WITH LESS THAN THREE YEARS OF OPERATING HISTORY AS NON-FUNDAMENTAL.
At the Meeting, the Shareholders of each Portfolio will vote separately
regarding reclassifying as a non-fundamental policy each Portfolio's
fundamental limitation concerning investment of more than 5% of its total
assets in securities of companies which have (with predecessors) a record of
less than three years' continuous operation, which currently is stated as
follows:
No Portfolio may purchase securities of any company which has (with
predecessors) a record of less than three years continuing operations if,
as a result, more than 5% of the total assets (taken at fair market value)
would be invested in such securities.
The purpose of this Proposal is to reclassify the limitation as non-
fundamental. Newly formed issuers or "unseasoned issuers" are issuers with less
than three years' continuous operation. The purpose of the fundamental
limitation on investments in unseasoned issuers is to comply with state blue
sky laws and limit the risks associated with investing in companies that have
no proven track record in business and whose prospects are uncertain. The
proposed non-fundamental investment limitation will clarify that each
Portfolio's unseasoned issuers limitation is applicable only to securities
issued by newly-formed entities engaged in a trade or business with a prior
history of operations of less than three years, and not to U.S. government and
foreign government securities. The adoption of a standard non-fundamental
limitation will facilitate compliance efforts and will enable the Portfolios to
respond more promptly if applicable state laws change in the future.
If the Proposal is approved, each Portfolio's non-fundamental limitation
regarding investment of more than 5% of total assets in securities of companies
with less than three years of operating history can be changed with respect to
a Portfolio without the vote of the Shareholders of that Portfolio.
Nonetheless, reclassification of the limitation as a non-fundamental limitation
is not expected to affect the management of the Portfolios, the investment
performance of the Portfolios, or the securities or instruments in which each
of the Portfolios may invest, for the Trustees do not expect that the
Portfolios' policy with regard to the purchase of securities of companies with
less than three years operating history will change in the near future.
THE TRUSTEES RECOMMEND THAT THE SHAREHOLDERS VOTE FOR PROPOSAL 11.
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12. PROPOSAL TO ELIMINATE EACH PORTFOLIO'S FUNDAMENTAL LIMITATION CONCERNING
INVESTMENT IN WARRANTS, PUTS, CALLS, STRADDLES, SPREADS OR COMBINATIONS
THEREOF.
At the Meeting, Shareholders of each Portfolio will vote separately to
eliminate each Portfolio's fundamental limitation concerning investment in
warrants, puts, calls, straddles, spreads, or combinations thereof, which is
currently stated as follows:
No Portfolio may purchase warrants, puts, calls, straddles, spreads or
combinations thereof except that the Core Fixed Income, Bond, and High
Yield Bond Portfolios may purchase investments with put features as
described in the Prospectus and the Statement of Additional Information and
the Large Cap Growth, Small Cap Value, Small Cap Growth, Mid-Cap Growth,
Real Estate Securities, Core Fixed Income, and High Yield Bond Portfolios
may invest in warrants and options as described in their Prospectuses and
in the Statement of Additional Information.
Subject to Shareholder approval, the Trustees intend to eliminate each
Portfolio's fundamental limitation concerning investment in warrants, puts,
calls, straddles, spreads, or combinations thereof.
If the Proposal is approved, each Portfolio may invest in warrants, puts,
calls, straddles, spreads, or combinations thereof to the extent consistent
with the 1940 Act, state blue sky regulations, each Portfolio's investment
objectives and policies, and disclosure. Currently, the Large Cap Growth, Small
Cap Value, Small Cap Growth, Mid-Cap Growth, Real Estate Securities and High
Yield Bond Portfolios each have a non-fundamental limitation concerning the
purchase of warrants that provides that so long as shares of those Portfolios
are registered in Texas and such restrictions are required as a consequence of
such registration, those Portfolios will not invest more than 5% of the
Portfolios net assets in warrants; provided that, of this, no more than 2% will
be invested in warrants that are not listed in the New York Stock Exchange. The
Portfolios have no present intention to substantially alter their investment
strategies in this regard. However, to the extent that regulatory or market
developments make these investments more appropriate or necessary, this policy
can be changed with respect to a Portfolio without the vote of the Shareholders
of that Portfolio.
A put option gives the purchaser of the option the right to sell, and the
writer of the option the obligation to buy, the underlying security at any time
during the option period. A call option gives the purchaser of the option the
right to buy, and the writer of the option the obligation to sell, the
underlying security at any time during the option period.
Each Portfolio may purchase put and call options to protect against a decline
in the market value of the securities in its portfolio or to anticipate an
increase in the market value of securities that the Portfolio may seek to
purchase in the future. Each Portfolio purchasing put and call options pays a
premium therefor. If price movements in the underlying securities are such that
exercise of the options would not be profitable for the Portfolios, loss of the
premium paid may be offset by an increase in the value of the Portfolios'
securities or by a decrease in the cost of acquisition of securities by the
Portfolios.
THE TRUSTEES RECOMMEND THAT THE SHAREHOLDERS VOTE FOR PROPOSAL 12.
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13. PROPOSAL TO ELIMINATE THE BOND PORTFOLIO'S FUNDAMENTAL LIMITATION
CONCERNING INVESTMENT IN CONVERTIBLE SECURITIES.
At the meeting, Shareholders of the Bond Portfolio will be asked to eliminate
the Portfolio's current fundamental limitation with respect to investment in
convertible securities, which is currently stated as follows:
Although it has no present intention to do so, the Bond Portfolio may
invest up to 20% of its total net assets in convertible securities (i.e.,
debt securities convertible into common stock) and preferred stock rated as
investment grade or of comparable quality at the time of purchase as
determined by the adviser.
The primary purpose of this Proposal is to eliminate the Portfolio's
limitation regarding investment in convertible securities. If the Proposal is
approved, the Portfolio would have no explicit limitation on investment in
convertible securities. Nonetheless, elimination of the limitation is not
expected to affect the management of the Portfolio, the investment performance
of the Portfolio, or the securities or instruments in which the Portfolio may
invest, for the Trustees do not expect that the Portfolios' policy with regard
to convertible securities will change in the near future.
THE TRUSTEES RECOMMEND THAT THE SHAREHOLDERS VOTE FOR PROPOSAL 13.
14. PROPOSAL TO ELIMINATE THE BOND PORTFOLIO'S FUNDAMENTAL LIMITATION REQUIRING
IT TO INVEST SOLELY IN SECURITIES LISTED AS "APPROPRIATE INVESTMENTS."
At the meeting, Shareholders of the Bond Portfolio will be asked to eliminate
the Portfolio's fundamental limitation with respect to investment solely in
securities listed as "appropriate" investments, which is currently stated as
follows:
It is a fundamental policy of the Bond Portfolio to invest its assets
solely in securities listed as appropriate investments.
Elimination of the limitation is not expected to affect the management of the
Portfolio, the investment performance of the Portfolio, or the securities or
instruments in which the Portfolio may invest. The primary purpose of this
Proposal is to allow the Trustees to change the Portfolio's policies with
regard to "appropriate" investments without a Shareholder vote. Of course, the
Portfolio will continue to invest solely in securities that the Trustees and
the Portfolio's investment adviser deem appropriate, and the Portfolio will
continue to disclose all of its investment policies and strategies in its
prospectus.
THE TRUSTEES RECOMMEND THAT THE SHAREHOLDERS VOTE FOR PROPOSAL 14.
In addition to the foregoing fundamental and non-fundamental limitations, the
Trustees have adopted two additional non-fundamental limitations for each
Portfolio of the Trust. The new non-fundamental limitations, which relate to
investments in illiquid and restricted securities, are consistent with the
current regulatory requirements for investments in these types of securities.
The non-fundamental limitation on illiquid securities provides that:
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No Portfolio may purchase illiquid securities, i.e., securities that
cannot be disposed of for their approximate carrying value in seven days or
less (which term includes repurchase agreements and time deposits maturing
in more than seven days) if, in the aggregate, more than 15% of its total
assets would be invested in illiquid securities. Notwithstanding the
foregoing, securities eligible to be re-sold under Rule 144A of the 1933
Act may be treated as liquid securities under procedures adopted by the
Board of Trustees.
The non-fundamental limitation on restricted securities provides that:
No Portfolio may purchase securities which are not readily marketable or
which must be registered under the 1933 Act, as amended, before they may be
sold to the public, if, in the aggregate, more than 15% of its total assets
would be invested in such restricted securities.
Since the Portfolios currently have a similar fundamental limitation on
investing in illiquid securities, which is contained in their fundamental
limitation on making loans, it is not expected that this new limitation, or the
new limitation on restricted securities, will have any impact on the
Portfolios' investment techniques, performance, or management. However, as non-
fundamental limitations, the Trustees can change these limitations with respect
to a Portfolio without the vote of the Shareholders of that Portfolio.
SECTION II.
Section 15(a) of the 1940 Act requires that all contracts pursuant to which
persons serve as investment advisers to investment companies be approved by
shareholders. As interpreted, this requirement would apply to appointment of
sub-advisers to any Portfolio of the Trust for which SFM will act as investment
adviser. However, in certain cases, the SEC has granted conditional exemptions
from the shareholder approval requirements and the Trust has applied for such
an exemption. If the exemption is granted, and if these Proposals are approved,
the Board of Trustees would, without Shareholder approval, be able to appoint
additional or replacement sub-advisers (herein, "Managers"). The Board would
not, however, be able to replace SFM as investment adviser to each Portfolio of
the Trust without complying with the 1940 Act and applicable regulations
governing Shareholder approval of advisory contracts.
The Proposals contained in Sections II and III of this Proxy Statement are
intended to facilitate the efficient operation of the "Manager of Managers"
structure. Assuming SFM, which currently serves as Investment Adviser and
Manager of Managers for each of the SFM-Advised Portfolios, is approved as
investment adviser to the Non-SFM-Advised Portfolios, it will continuously
monitor the performance of the Managers and may from time to time recommend
that the Board of Trustees replace one or more Managers or appoint additional
Managers, depending on SFM's assessment of what combination of Managers it
believes will optimize each Portfolio's chances of achieving its investment
objective. Accordingly, while there is no way of knowing exactly how often SFM
may recommend, and the Board approve, the selection of an additional Manager,
or the replacement of an existing Manager, both of which would typically
require a Shareholder meeting, it is not unlikely that the Manager of Managers
structure would result in more frequent Shareholder meetings than would
otherwise be the case. Shareholder meetings entail substantial costs which
could reduce the hoped for benefits of the Manager
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of Managers structure. These costs must be weighed against the benefits of
Shareholder scrutiny of proposed contracts with additional or replacement
Managers; however, even in the absence of Shareholder approval, any proposal to
add or replace Managers would receive careful review. First, SFM would assess
each Portfolio's needs and, if it believed additional or replacement Managers
could benefit the Portfolio, would systematically search the relevant universe
of available investment Managers. Second, any recommendations made by SFM would
have to be approved by a majority of the Trustees, including a majority of the
Trustees who are not "interested persons" within the meaning of the 1940 Act.
Finally, any selections of additional or replacement Managers would have to
comply with conditions contained in the SEC exemption, if it is granted.
15. AUTHORIZATION FOR THE BOARD OF TRUSTEES TO APPOINT INVESTMENT SUB-ADVISERS
FOR THE CAPITAL APPRECIATION PORTFOLIO OF THE TRUST WITHOUT SEEKING
APPROVAL BY THE PORTFOLIO'S SHAREHOLDERS OF THE CONTRACTS PURSUANT TO WHICH
SUCH SUB-ADVISERS SERVE.
This Proposal will facilitate the appointment of additional and replacement
sub-advisers without a Shareholder vote if SFM serves as Manager of Managers
for the Capital Appreciation Portfolio of the Trust. This arrangement requires
the SEC's approval of SFM's application to implement the Manager of Managers
structure.
THE TRUSTEES RECOMMEND THAT THE SHAREHOLDERS VOTE FOR PROPOSAL 15.
16. AUTHORIZATION FOR THE BOARD OF TRUSTEES TO APPOINT INVESTMENT SUB-ADVISERS
FOR THE EQUITY INCOME PORTFOLIO OF THE TRUST WITHOUT SEEKING APPROVAL BY
THE PORTFOLIO'S SHAREHOLDERS OF THE CONTRACTS PURSUANT TO WHICH SUCH SUB-
ADVISERS SERVE.
This Proposal will facilitate the appointment of additional and replacement
sub-advisers without a Shareholder vote if SFM serves as Manager of Managers
for the Equity Income Portfolio of the Trust. This arrangement requires the
SEC's approval of SFM's application to implement the Manager of Managers
structure.
THE TRUSTEES RECOMMEND THAT THE SHAREHOLDERS VOTE FOR PROPOSAL 16.
17. AUTHORIZATION FOR THE BOARD OF TRUSTEES TO APPOINT INVESTMENT SUB-ADVISERS
FOR THE BALANCED PORTFOLIO OF THE TRUST WITHOUT SEEKING APPROVAL BY THE
PORTFOLIO'S SHAREHOLDERS OF THE CONTRACTS PURSUANT TO WHICH SUCH SUB-
ADVISERS SERVE.
This Proposal will facilitate the appointment of additional and replacement
sub-advisers without a Shareholder vote if SFM serves as Manager of Managers
for the Balanced Portfolio of the Trust. This arrangement requires the SEC's
approval of SFM's application to implement the Manager of Managers structure.
THE TRUSTEES RECOMMEND THAT THE SHAREHOLDERS VOTE FOR PROPOSAL 17.
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<PAGE>
18. AUTHORIZATION FOR THE BOARD OF TRUSTEES TO APPOINT INVESTMENT SUB-ADVISERS
FOR THE BOND PORTFOLIO OF THE TRUST WITHOUT SEEKING APPROVAL BY THE
PORTFOLIO'S SHAREHOLDERS OF THE CONTRACTS PURSUANT TO WHICH SUCH SUB-
ADVISERS SERVE.
This Proposal will facilitate the appointment of additional and replacement
sub-advisers without a Shareholder vote if SFM serves as Manager of Managers
for the Bond Portfolio of the Trust. This arrangement requires the SEC's
approval of SFM's application to implement the Manager of Managers structure.
THE TRUSTEES RECOMMEND THAT THE SHAREHOLDERS VOTE FOR PROPOSAL 18.
SECTION III.
The Board of Trustees is recommending that Shareholders of the Non-SFM-
Advised Portfolios of the Trust approve SFM as the investment adviser of the
Non-SFM-Advised Portfolios and approve the form of investment advisory
agreement (the "Investment Advisory Agreement") between the Trust and SFM
relating to the Non-SFM-Advised Portfolios (which is attached as Exhibit A to
this Proxy Statement). The Trustees of the Trust, including all of the Trustees
who are not "interested persons" of the Trust, approved the Investment Advisory
Agreement with respect to the Non-SFM-Advised Portfolios at a meeting held on
March 6, 1995. SFM already serves as investment adviser to the SFM-Advised
Portfolios pursuant to an Investment Advisory Agreement dated December 16,
1994, between SFM and the Trust, on behalf of each of the SFM-Advised
Portfolios.
Other than the identity of the investment adviser, there are no material
differences between the Investment Advisory Agreement and the existing
investment advisory agreements of the Non-SFM-Advised Portfolios of the Trust.
In particular, the aggregate compensation to SFM and any sub-advisers will not
exceed that which the current adviser(s) would have received under their
respective agreements. While the level of compensation paid to SFM by each
Portfolio for advisory services will be .15% higher than that paid to the
current advisers, SFM's contractual management fee will be reduced by .15% for
each Portfolio. As a result, the compensation received by SFM under the
Investment Advisory Agreement and the Management Agreement will not increase
from the level currently received by SFM for its management services, and the
overall cost to each Portfolio of advisory and management services will not be
increased. (See "Description of the Investment Adviser," below.)
Duties Under the Investment Advisory Agreement. Under the Investment Advisory
Agreement, SFM will serve as investment adviser to the Non-SFM-Advised
Portfolios and will provide its proprietary investment adviser selection,
monitoring, and asset allocation services to the Non-SFM-Advised Portfolios.
Subject to Board approval, SFM, in turn, will enter into investment sub-
advisory agreements with one or more sub-advisers (each a "Manager" and,
collectively, the "Managers") to exercise investment discretion over the assets
(or a portion of the assets) of each Portfolio. Consistent with its goal of
using multiple Managers to carry out each Portfolio's investment objective and
policies, SFM in the future may provide specific portfolio security advice with
respect to all or some portion of each Portfolio's assets.
19
<PAGE>
SFM will perform internal due diligence on prospective Managers for each
Portfolio and monitor Manager performance using its proprietary investment
adviser selection and monitoring process. SFM will be responsible for
communicating performance targets and evaluations to Managers, supervising each
Manager's compliance with each Portfolio's fundamental investment objectives
and policies, authorizing Managers to engage in certain investment techniques
for each Portfolio, and recommending to the Board of Trustees whether sub-
advisory agreements should be renewed, modified or terminated. SFM also will
recommend to the Board the addition of new Managers as it deems appropriate.
(See Section II, above.)
For its services, SFM will receive an advisory fee from each Portfolio based
on the Portfolio's assets. SFM will then pay the Managers out of this fee.
Under this structure, the Trust will operate in a manner that is distinctly
different from virtually all other investment companies. Most investment
companies operate under a structure in which a single related group of
companies provide investment advisory, administrative, and distribution
services. Typically, the investment company pays the advisory fee to its
investment adviser which, in turn, compensates internal portfolio Managers who
make specific securities selections. In contrast, the Trust will offer
investors an opportunity to access, on a pooled investment basis, the core
elements of SFM's investment adviser selection, monitoring, and asset
allocation services. Under this "Manager of Managers" approach, SFM will
recommend and, if the Trustees approve the recommendation, monitor for each
Portfolio one or more managers using a range of investment styles. (See Section
II, above.)
Duration and Termination. Unless terminated earlier, the Investment Advisory
Agreement shall continue in effect as to each Portfolio until on or about
December 16, 1996, and thereafter, for periods of one year for so long as such
continuance is specifically approved with respect to a Portfolio at least
annually (i) by the vote of the holders of a majority of the outstanding shares
of such Portfolio or by the Trustees of the Trust, and (ii) by the vote of a
majority of those Trustees of the Trust who are not parties to the Investment
Advisory Agreement or "interested persons" (as that term is defined in the 1940
Act, as amended) of any party thereto, cast in person at a meeting called for
the purpose of voting on such approval. The Investment Advisory Agreement will
terminate automatically in the event of its assignment. It is terminable at any
time without penalty by the Trustees of the Trust or with respect to each
Portfolio by a vote of a majority of the outstanding shares of such Portfolio
on not less than 30 days nor more than 60 days written notice to SFM. In
addition, it is terminable by SFM upon 90 days written notice to the Trust.
SFM will discharge its responsibilities subject to the supervision of, and
policies set by, the Trustees of the Trust. The Investment Advisory Agreement
provides that SFM shall not be protected against any liability to the Trust or
its Shareholders by reason of willful misfeasance, bad faith, or gross
negligence on its part in the performance of its duties or from reckless
disregard by SFM of its obligations or duties thereunder.
Description of the Investment Adviser. SFM is a wholly-owned subsidiary of
SEI Corporation ("SEI"), a financial services company located in Wayne,
Pennsylvania. The principal business address of SFM is 680 East Swedesford
Road, Wayne, Pennsylvania 19087-1658. SEI was founded in 1968 and is a leading
provider of investment solutions to banks, institutional investors, investment
advisers, and
20
<PAGE>
insurance companies. Affiliates of SFM have provided consulting advice to
institutional investors for more than 20 years, including advice regarding
selection and evaluation of investment advisers. As of March 31, 1995, SFM
acted in a similar "manager of managers" role with respect to $[ ] million of
client assets, which includes the SFM-Advised Portfolios of the Trust. SFM has
served as Manager of Managers of the Small Cap Value and Large Cap Growth
Portfolios since their inception on December 19, 1994, and of the High Yield
Bond Portfolio since its inception on January 11, 1995. In addition, SFM has
served as Manager of Managers of the Large Cap Value Portfolio since that
management structure was approved by the Shareholders of that Portfolio on
December 16, 1994.
SFM currently serves as investment adviser, manager and/or administrator to
more than 26 investment companies, including more than 220 portfolios, which
investment companies had more than $48 billion in assets as of March 31, 1995.
In addition to serving as investment adviser to the SFM-Advised Portfolios,
SFM serves as Manager of the Trust, pursuant to a Management Agreement dated
January 22, 1987. In connection with its role as Manager, SFM provides the
Trust with overall management services, regulatory reporting, all necessary
office space, equipment, personnel and facilities, and acts as transfer agent,
dividend disbursing agent, and shareholder servicing agent.
For its management services under the current management arrangements, SFM is
entitled to a fee which is calculated daily and paid monthly at an annual rate
of .50% of the average daily net assets of the Capital Appreciation, Equity
Income, and Balanced Portfolios, and .43% of the average daily net assets of
the Bond Portfolio. SFM and the Managers may waive all or a portion of their
respective fees in order to limit the operating expenses of a Portfolio. Any
such waiver is voluntary and may be terminated at any time in their sole
discretion.
For the fiscal year ended September 30, 1994, the Trust paid to SFM the
following management fees:
<TABLE>
<CAPTION>
PORTFOLIO FEES PAID (000) FEE WAIVERS (000)
--------- --------------- -----------------
<S> <C> <C>
Large Cap Value $ 799 $ 0
Capital Growth $ 0 $787
Small Cap Growth $1,023 $259
Capital Appreciation $3,649 $377
Equity Income $1,801 $149
Balanced $ 173 $ 82
Mid-Cap Growth $ 329 $115
Core Fixed Income $1,031 $297
Bond $ 337 $131
</TABLE>
- --------
The Real Estate Securities, Small Cap Value, Large Cap Growth, and High Yield
Bond Portfolios of the Trust had not commenced operations as of September 30,
1994.
Once the Manager of Managers structure is in place, SFM will reduce its
management fee by .15% for each Portfolio operating under that structure in
order to compensate for the increased advisory and sub-advisory fees payable
under that structure.
21
<PAGE>
The table below sets forth information about the proposed level of fees
payable to SFM both as Adviser and Manager, and to the Managers, assuming that
the Shareholders approve the Manager of Managers structure:
<TABLE>
<CAPTION>
ADVISORY FEE
ADVISORY FEE PAID PAID
TO SUB-ADVISER TO SFM UNDER SUB-ADVISORY ADMINISTRATION
UNDER FORMER ADVISORY NEW ADVISORY FEE FEE PAID TO
PORTFOLIO SUB-ADVISER AGREEMENT AGREEMENT PAID BY SFM SFM *
--------- ---------------- --------------------- ------------ ------------ --------------
<S> <C> <C> <C> <C> <C>
Capital Appreciation SunBank Capital .25% .40% .25% .35%
Management, N.A.
Balanced SunBank Capital .25% .40% .25% .35%
Management, N.A.
Equity Income Merus Capital .25% .40% .25% .35%
Management
Bond Boatmen's Trust .125% .275% .125% .28%
Company
</TABLE>
- --------
* In each case, the contractual administration fee payable to SFM has been
lowered by .15% in order to compensate for the increased level of advisory
and sub-advisory fees payable under the Manager of Managers structure.
However, the total level of fees payable to SFM, as well as the overall level
of expenses for each Portfolio, will remain the same.
Listed below are the names and principal occupations of each of the directors
and the principal executive officers of SFM. The principal business address of
each director and the principal executive officers, as it relates to their
duties at SFM, is 680 East Swedesford Road, Wayne, Pennsylvania 19087-1658.
<TABLE>
<CAPTION>
NAME TITLE
---- -----
<C> <S>
Alfred P. West, Jr. Director, Chairman & Chief Executive Officer
Henry H. Greer Director, President & Chief Operating Officer
Carmen V. Romeo Director, Executive Vice President & Treasurer
Richard B. Lieb Executive Vice President
Edward Loughlin Executive Vice President, President--Insurance Asset
Services Division & Asset Management Services
Division
Charles A. Marsh Executive Vice President
Carl A. Guarino Senior Vice President
Chris Brookmeyer Controller
Kevin P. Robins Senior Vice President, General Counsel & Secretary
</TABLE>
At a meeting held on March 6, 1995, the Board of Trustees reviewed SFM's
qualifications to act as investment adviser for the Non-SFM-Advised Portfolios
of the Trust, placing particular emphasis on its proposed role in recommending,
monitoring and terminating Managers, subject to Board of Trustee oversight, and
its performance as investment adviser for the SFM-Advised Portfolios of the
Trust. The Trustees received written and oral information regarding SFM's key
personnel, its experience in selection and evaluation of investment Managers
and research performed by SFM and others that had led SFM to recommend a
"Manager of Managers" structure (i.e., one in which SFM
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<PAGE>
would act as the investment adviser and one or more Managers would assume
substantial day-to-day investment responsibilities; see Section II, above). In
recommending that the Shareholders approve the Investment Advisory Agreement,
the Trustees carefully evaluated the experience of SFM's key personnel in
institutional investing and the quality of services SFM is expected to provide
to the Portfolios, including, but not limited to: (1) the fee and expense
ratios of comparable mutual funds; (2) the performance of the Portfolios since
commencement of operations; (3) the nature and quality of the services expected
to be rendered to the Portfolios by SFM; (4) the distinct investment objective
and policies of the Portfolios; (5) that the compensation payable to SFM by the
Portfolios under the proposed Investment Advisory Agreement and the Management
Agreement will be at the same rate as the compensation payable to SFM and the
proposed Sub-Advisers under the existing Investment Advisory Agreement; (6) the
history, reputation, qualification and background of SFM as well as the
qualifications of its personnel and its financial condition; (7) its
performance record; (8) the benefits expected to be realized as a result of the
Manager of Managers structure; and (9) other factors deemed relevant. The
Trustees also reviewed the fees to be paid to SFM in comparison to those being
charged in the relevant segment of the mutual fund business, including any
benefits received by SFM or its affiliates in connection with soft dollars
payments.
In the event Shareholders of a Portfolio do not approve the selection of SFM
as investment adviser and the Investment Advisory Agreement between the Trust,
on behalf of the Non-SFM-Advised Portfolios, and SFM, or if the Shareholders of
a Portfolio do not approve the Manager of Managers structure discussed in
Section II of the Proxy Statement, at the Special Meeting to which this Proxy
Statement relates, or any adjournment thereof, the Trustees will consider the
appropriate course of action.
19. APPROVAL OF THE INVESTMENT ADVISER AND THE INVESTMENT ADVISORY AGREEMENT
FOR THE CAPITAL APPRECIATION PORTFOLIO OF THE TRUST.
Description of the Portfolio. The investment objective of the Capital
Appreciation Portfolio is capital appreciation. The Portfolio invests primarily
in a diversified portfolio of common stocks (and securities convertible into
common stock) which, in the adviser's opinion, are undervalued in the
marketplace at the time of purchase. Dividend income is an incidental
consideration compared to growth of capital.
Termination of the Current Investment Advisory Agreement. SunBank Capital
Management, N.A. ("SunBank") currently serves as investment adviser to the
Capital Appreciation Portfolio pursuant to an investment advisory agreement.
The Board of Trustees voted on March 6, 1995 to terminate this agreement based
upon the Board's determination that the selection of SFM to provide investment
advisory services as described herein will be in the best interests of the
Capital Appreciation Portfolio. The Board also approved SFM as the new
investment adviser, and SunBank as the new sub-adviser, effective upon approval
by Shareholders.
Compensation. Under the proposed Investment Advisory Agreement, the Trust
would pay SFM a fee, which is calculated daily and paid monthly, at an annual
rate of .40% of the average daily net assets of the Capital Appreciation
Portfolio. As SFM did not previously serve as investment adviser to the Capital
Appreciation Portfolio, the aggregate investment advisory fee paid to SFM
during the last fiscal year was $0. SunBank received $2,016,000.
23
<PAGE>
THE TRUSTEES RECOMMEND THAT THE SHAREHOLDERS VOTE FOR PROPOSAL 19.
20. APPROVAL OF THE INVESTMENT ADVISER AND THE INVESTMENT ADVISORY AGREEMENT
FOR THE EQUITY INCOME PORTFOLIO OF THE TRUST.
Description of the Portfolio. The investment objective of the Equity Income
Portfolio is to provide current income and, as a secondary objective, moderate
capital appreciation. The Portfolio invests primarily in a diversified
portfolio of common stocks. The investment approach employed by the adviser
emphasizes income-producing common stocks which, in general, have above-average
dividend yields relative to the stock market as measured by the S&P 500 Index.
Termination of the Current Investment Advisory Agreement. Merus Capital
Management ("MCM") currently serves as investment adviser to the Equity Income
Portfolio pursuant to an investment advisory agreement. The Board of Trustees
voted on March 6, 1995 to terminate this agreement based upon the Board's
determination that the selection of SFM to provide investment advisory services
as described herein will be in the best interests of the Equity Income
Portfolio. The Board also approved SFM as the new investment adviser, and MCM
as the new sub-adviser, effective upon approval by Shareholders.
Compensation. Under the proposed Investment Advisory Agreement, the Trust
would pay SFM a fee, which is calculated daily and paid monthly, at an annual
rate of .40% of the average daily net assets of the Equity Income Portfolio. As
SFM did not previously serve as investment adviser to the Equity Income
Portfolio, the aggregate investment advisory fee paid to SFM during the last
fiscal year was $0. MCM received $900,000. In addition, MCM waived fees
totalling $75,000.
THE TRUSTEES RECOMMEND THAT THE SHAREHOLDERS VOTE FOR PROPOSAL 20.
21. APPROVAL OF THE INVESTMENT ADVISER AND THE INVESTMENT ADVISORY AGREEMENT
FOR THE BALANCED PORTFOLIO OF THE TRUST.
Description of the Portfolio. The investment objective of the Balanced
Portfolio is total return consistent with the preservation of capital. The
Portfolio invests in a combination of undervalued common stocks and fixed
income securities. The Portfolio seeks strong total return in all market
conditions, with a special emphasis on minimizing interim declines during
falling equity markets. The Portfolio primarily invests in large capitalization
equity securities, intermediate-maturity fixed income securities, and money
market instruments.
Termination of the Current Investment Advisory Agreement. SunBank currently
serves as investment adviser to the Balanced Portfolio pursuant to an
investment advisory agreement. The Board of Trustees voted on March 6, 1995 to
terminate this agreement based upon the Board's determination that the
selection of SFM to provide investment advisory services as described herein
will be in the best interests of the Balanced Portfolio. The Board also
approved SFM as the new investment adviser, and SunBank as the new sub-adviser,
effective upon approval by Shareholders.
24
<PAGE>
Compensation. Under the proposed Investment Advisory Agreement, the Trust
would pay SFM a fee, which is calculated daily and paid monthly, at an annual
rate of .40% of the average daily net assets of the Balanced Portfolio. As SFM
did not previously serve as investment adviser to the Balanced Portfolio, the
aggregate investment advisory fee paid to SFM during the last fiscal year was
$0. SunBank received $127,000.
THE TRUSTEES RECOMMEND THAT THE SHAREHOLDERS VOTE FOR PROPOSAL 21.
22. APPROVAL OF THE INVESTMENT ADVISER AND THE INVESTMENT ADVISORY AGREEMENT
FOR THE BOND PORTFOLIO OF THE TRUST.
Description of the Portfolio. The investment objective of the Bond Portfolio
is current income consistent with preservation of capital. The Portfolio seeks
to achieve its objective by investing in corporate bonds and debentures,
obligations issued by the United States Government, its agencies and
instrumentalities, and receipts involving U.S. Treasury obligations. There are
no restrictions on the Portfolio's maturity, but the average maturity is
expected to be greater than ten years.
Termination of the Current Investment Advisory Agreement. Boatmen's Trust
Company ("Boatmen's") currently serves as investment adviser to the Bond
Portfolio pursuant to an investment advisory agreement. The Board of Trustees
voted on March 6, 1995 to terminate this agreement based upon the Board's
determination that the selection of SFM to provide investment advisory services
as described herein will be in the best interests of the Bond Portfolio. The
Board also approved SFM as the new investment adviser, and Boatmen's as the new
sub-adviser, effective upon approval by Shareholders.
Compensation. Under the proposed Investment Advisory Agreement, the Trust
would pay SFM a fee, which is calculated daily and paid monthly, at an annual
rate of .275% of the average daily net assets of the Bond Portfolio. As SFM did
not previously serve as investment adviser to the Bond Portfolio the aggregate
investment advisory fee paid to SFM during the last fiscal year was $0.
Boatmen's received $133,000.
THE TRUSTEES RECOMMEND THAT THE SHAREHOLDERS VOTE FOR PROPOSAL 22.
SECTION IV.
The Board of Trustees is recommending that Shareholders of the Non-SFM-
Advised Portfolios of the Trust approve each investment sub-adviser recommended
in Proposals 23 through 26 as investment sub-advisers of the Non-SFM-Advised
Portfolios and approve the form of investment sub-advisory agreement (the
"Investment Sub-Advisory Agreement") between SFM and the proposed investment
sub-adviser (which is attached as Exhibit B to this Proxy Statement).
The Sub-Advisers. The entities described in Proposals 23 through 26 will
serve as investment sub-advisers (each, a "Sub-Adviser," and, collectively, the
"Sub-Advisers") to the Non-SFM-Advised Portfolios. Under the Manager of
Managers structure, SFM will have general oversight responsibility for the
investment advisory services provided to the Portfolios, including formulating
the Portfolios'
25
<PAGE>
investment policies and analyzing economic trends affecting the Portfolios. In
addition, SFM will be responsible for managing the allocation of assets among
the Portfolio's Sub-Advisers and directing and evaluating the investment
services provided by the Sub-Advisers, including their adherence to each
Portfolio's respective investment objectives and policies and each Portfolio's
investment performance. In accordance with each Portfolio's investment
objectives and policies, and under the supervision of SFM and the Trust's Board
of Trustees, each Sub-Adviser will be responsible for the day-to-day investment
management of all or a discrete portion of the assets of a Portfolio. The Sub-
Advisers are authorized to make investment decisions for the Portfolios and
place orders on behalf of the Portfolios to effect the investment decisions
made.
The Glass-Steagall Act restricts the securities activities of banks such as
the Bank of California, Sun Trust Banks, Inc., and Boatmen's Bancshares, Inc.,
parents of MCM, SunBank, and Boatmen's, respectively, but federal regulatory
authorities permit such banks to provide investment advisory and other services
to mutual funds. Should this position be challenged successfully in court or
reversed by legislation, the Trust might have to make other investment advisory
arrangements.
In addition, SFM will monitor the compliance of each Sub-Adviser with
regulatory and tax regulations, such as those relating to portfolio
concentration and diversification. For the most part, compliance with these
requirements by each Sub-Adviser with respect to its portion of a Portfolio
will assure compliance by the Portfolio as a whole. In addition, SFM will
monitor positions taken by each Sub-Adviser and will notify Sub-Advisers of any
developing situations to help ensure that investments do not run afoul of the
short-short test or the wash sale rules. To the extent that having multiple
Sub-Advisers responsible for investing separate portions of a Portfolio's
assets creates the need for coordination among the Sub-Advisers, there is an
increased risk that the Portfolio will not comply with these regulatory and tax
requirements.
It is possible that different Sub-Advisers for the same Portfolio could take
opposite actions within a short period of time with respect to a particular
security. For example, one Sub-Adviser could buy a security for a Portfolio and
shortly thereafter another Sub-Adviser could sell the same security from the
portion of the Portfolio's assets allocated to it. If in these circumstances
the securities could be transferred from one Sub-Adviser's portion of the
Portfolio to another, the Portfolio could avoid transaction costs and could
avoid creating possible wash sales and short-short gains under the Code. Such
transfers are not practicable, but the Sub-Advisers and SFM do not believe that
there will be material adverse effects on a Portfolio as a result. First, it
does not appear likely that there will be substantial overlap in the securities
acquired for a Portfolio by the various Sub-Advisers. Moreover, the Sub-
Advisers would probably only rarely engage in the types of offsetting
transactions described above, especially within a short time period. Therefore,
it is a matter of speculation whether offsetting transactions would result in
any significant increases in transaction costs or have significant tax
consequences. With respect to the latter, SFM and the Sub-Advisers will
establish procedures with respect to the short-short test which are designed to
prevent realization of short-short gains in excess of Code limits. It is true
that wash sales could occur in spite of the efforts of SFM, but the Board of
Trustees believes that the benefits of using multiple managers outweighs the
consequences of any wash sales.
26
<PAGE>
SFM is currently seeking an exemptive order from the SEC that would permit
SFM, with the approval of the Trust's Board of Trustees, to retain Sub-Advisers
for a Portfolio without submitting the accompanying sub-advisory agreement to a
vote of the Portfolio's shareholders. If granted, the exemptive relief will
permit the non-disclosure of amounts payable by SFM under such sub-advisory
agreements. The Trust will notify shareholders in the event of any change in
the identity of the Sub-Adviser for a Portfolio. Until or unless this exemptive
order is granted, if one of the Sub-Advisers is terminated or departs from a
Portfolio with multiple Sub-Advisers, the Portfolio will handle such
termination or departure in one of two ways. First, the Portfolio may propose
that a new investment adviser be appointed to manage that portion of the
Portfolio's assets managed by the departing adviser. In this case, the
Portfolio would be required to submit to the vote of the Portfolio's
shareholders the approval of a investment advisory contract with the new
adviser. In the alternative, the Portfolio may decide to allocate the departing
Sub-Adviser's assets among the remaining Sub-Advisers. This allocation would
not require new investment advisory contracts with the remaining Sub-Advisers,
and consequently no shareholder approval would be necessary. If the Manager of
Managers structure is approved, the Trustees will be able to instruct SFM to
add or replace Sub-Advisers without Shareholder approval.
The Trustees of the Trust, including all of the Trustees who are not
"interested persons" of the Trust, approved the general form of the Investment
Sub-Advisory Agreement with respect to the Non-SFM-Advised Portfolios on March
6, 1995. The Trustees received written and oral information from both SFM and
the proposed Sub-Advisers. SFM recommended the selection of the proposed Sub-
Advisers and reviewed the considerations and the search process that had led to
the recommendation. The Trustees also met with representatives of the proposed
Sub-Advisers and considered information about key personnel, investment
philosophy and process and performance track record, among other factors. In
recommending that the Shareholders approve the Investment Sub-Advisory
Agreements, the Trustees carefully evaluated the investing experience of each
proposed Sub-Adviser's key personnel and the quality of services each proposed
Sub-Adviser can be expected to provide to the Portfolios, including, but not
limited to: (1) the fee and expense ratios of comparable mutual funds; (2) the
performance of the Portfolios since commencement of operations; (3) the nature
and quality of the services expected to be rendered to the Portfolios by each
proposed Sub-Adviser; (4) the distinct investment objective and policies of the
Portfolios; (5) the fact that the compensation payable to each proposed Sub-
Adviser by the Portfolios under the proposed Investment Sub-Advisory Agreements
will be at the same rate as the compensation payable to the proposed Sub-
Advisers under the existing Investment Advisory Agreements; (6) the history,
reputation, qualification and background of each proposed Sub-Adviser as well
as the qualifications of their personnel and their respective financial
conditions; (7) their performance records; (8) the benefits expected to be
realized as a result of the Manager of Managers structure; and (9) other
factors deemed relevant. The Trustees also reviewed the fees to be paid to each
Sub-Adviser in comparison to those being charged in the relevant segment of the
mutual fund business, including any benefits received by any Sub-Adviser or its
affiliates in connection with soft dollar payments.
Duties Under each Investment Sub-Advisory Agreement. Under each Investment
Sub-Advisory Agreement, the Sub-Adviser makes the investment decisions for the
assets of the Portfolio allocated to it by SFM (if such Portfolio has more than
one Sub-Adviser), and continuously reviews, supervises,
27
<PAGE>
and administers the Portfolio's investment program with respect to these
assets. See "General Information About the Trust and Other Matters--Portfolio
Transactions." Each Sub-Adviser is independent of SFM and discharges its
responsibilities subject to the supervision of SFM and the Trustees of the
Trust and in a manner consistent with each Portfolio's investment objectives,
policies and limitations. Each Investment Sub-Advisory Agreement provides that
each Sub-Adviser shall not be protected against any liability to the Trust, its
shareholders, or SFM by reason of willful misfeasance, bad faith, or negligence
on its part in the performance of its duties or from reckless disregard by such
Sub-Adviser of its obligations or duties thereunder.
Duration and Termination. Unless terminated earlier, each Investment Sub-
Advisory Agreement shall continue in effect as to each Portfolio through June
1997, and thereafter, for periods of one year for so long as such continuance
is specifically approved at least annually (i) by the vote of the holders of a
majority of the outstanding shares of such Portfolio or by the Trustees of the
Trust, and (ii) by the vote of a majority of those Trustees of the Trust who
are not parties to the Investment Advisory Agreement or Investment Sub-Advisory
Agreement or who are not "interested persons" (as that term is defined in the
1940 Act, as amended) of any party thereto, cast in person at a meeting called
for the purpose of voting on such approval. If the Manager of Managers
structure is approved by the Shareholders of a Portfolio, the Trustees may add
and replace Sub-Advisers without Shareholder approval. This structure requires
an order of exemption from the SEC before becoming operative. If SFM obtains
exemptive relief from the SEC permitting it to engage a Sub-Adviser without
first obtaining approval of the Investment Sub-Advisory Agreement from a
majority of the outstanding voting securities of the Portfolio(s) involved, the
Investment Sub-Advisory Agreement shall become effective upon its approval by
the Trust's Board of Trustees. Any Sub-Adviser so selected and approved shall
be without the protection accorded by shareholder approval of an investment
adviser's receipt of compensation under Section 36(b) of the 1940 Act.
Each Investment Sub-Advisory Agreement will terminate automatically in the
event of its assignment or in the event that SFM's Investment Advisory
Agreement is terminated. Each Investment Sub-Advisory Agreement is terminable
at any time without penalty by the Trustees of the Trust, or, with respect to
each Portfolio, by a vote of a majority of the outstanding shares of such
Portfolio on not less than 30 days nor more than 60 days written notice to such
Portfolio's Sub-Adviser. In addition, each Portfolio's Investment Sub-Advisory
Agreement is terminable by such Portfolio's Sub-Adviser upon 90 days written
notice to the Trust or SFM.
In the event Shareholders of a Portfolio do not approve the adoption of an
Investment Sub-Advisory Agreement at the Special Meeting to which this Proxy
Statement relates, or any adjournment thereof, the Trustees will consider the
appropriate course of action.
23. APPROVAL OF AN INVESTMENT SUB-ADVISER AND THE INVESTMENT SUB-ADVISORY
AGREEMENT FOR CAPITAL APPRECIATION PORTFOLIO.
The Board of Trustees is recommending that Shareholders of the Capital
Appreciation Portfolio approve SunBank as an Investment Sub-Adviser of the
Portfolio and approve the form of Investment Sub-Advisory Agreement between SFM
and SunBank.
28
<PAGE>
Compensation. Under the Investment Sub-Advisory Agreement, SFM pays SunBank a
fee, which is calculated and paid monthly, based on an annual percentage rate
of the month-end market value of assets of the Capital Appreciation Portfolio
managed by SunBank. This rate is set at .25% of the average daily net assets of
the Portfolio. For the fiscal year ended September 30, 1994, the Portfolio paid
SunBank an investment advisory fee of .25% of the average daily net assets of
the Portfolio.
Description of SunBank. SunBank currently acts as the Investment Sub-Adviser
for the Capital Appreciation, Balanced and Capital Growth Portfolios of the
Trust. SunBank was established in 1934 and is owned by SunBank, Inc., a wholly-
owned subsidiary of Sun Trust Banks, Inc., a bank holding company. As of March
31, 1995, SunBank had discretionary management authority with respect to
approximately $[ ] billion of assets. The principal business address of
SunBank is P.O. Box 3808, Orlando, Florida 32802.
[SUNBANK ALSO SERVES AS INVESTMENT ADVISER TO SEVERAL OTHER REGISTERED
INVESTMENT COMPANIES WITH INVESTMENT OBJECTIVES SIMILAR TO THOSE OF THE
PORTFOLIO. THE APPROXIMATE NET ASSETS OF SUCH FUNDS OR PORTFOLIOS AND THE FEE
PAYABLE BY EACH ARE SET FORTH BELOW:]
Anthony R. Gray has been Chairman and Chief Investment Officer of SunBank
since 1987, and has managed the Capital Appreciation and Balanced Portfolios
since their inception. Mr. Gray joined SunBank in 1979 as Director of Research
of the Trust Investment Division.
John D. Race is President of SunBank and has managed the Balanced Portfolio
since its inception. Thomas Edgar has been Senior Vice President of SunBank
since 1990, and has managed the Capital Growth Portfolio since its inception.
Prior to joining SunBank, Mr. Edgar served as Senior Vice President of First
Union Bank from 1988 to 1990.
Listed below are the names and principal occupations of each of the directors
and the principal executive officer of SunBank. The principal business address
of each director and the principal executive officer, as it relates to their
duties at SunBank is P.O. Box 3808, Orlando, Florida 32802.
<TABLE>
<CAPTION>
NAME TITLE
---- -----
<C> <S>
Anthony R. Gray Chairman & Chief Investment Officer
John D. Race President & Chief Administrative Officer
Victor A. Zollo, Jr. Executive Vice President, Director of Marketing
Robert Buhrmann Senior Vice President
L. Earl Denney Senior Vice President
Gregory M. DePrince Senior Vice President
Thomas A. Edgar Senior Vice President
Stuart F. Van Arsdale Senior Vice President
</TABLE>
THE TRUSTEES RECOMMEND THAT THE SHAREHOLDERS VOTE FOR PROPOSAL 23.
24. APPROVAL OF AN INVESTMENT SUB-ADVISER AND THE INVESTMENT SUB-ADVISORY
AGREEMENT FOR THE EQUITY INCOME PORTFOLIO.
The Board of Trustees is recommending that Shareholders of the Equity Income
Portfolio approve MCM as an Investment Sub-Adviser of the Portfolio and approve
the form of Investment Sub-Advisory Agreement between SFM and MCM.
29
<PAGE>
Compensation. Under the Investment Sub-Advisory Agreement, SFM pays MCM a
fee, which is calculated and paid monthly, based on an annual percentage rate
of the month-end market value of assets of the Equity Income Portfolio managed
by MCM. This rate is set at .25% of the average daily net assets of the
Portfolio. For the fiscal year ended September 30, 1994, the Portfolio paid MCM
an investment advisory fee of .25% of the average daily net assets of the
Portfolio. In addition, MCM serves as an Investment Sub-Adviser for the Large
Cap Value Portfolio of the Trust. For its services to the Large Cap Value
Portfolio, MCM receives a fee of .20% of the average daily net assets of the
portion of the Portfolio's assets it manages.
Description of Merus Capital Management. MCM is a division of the Bank of
California, N.A. and provides equity and fixed income management services to a
broad array of corporate and municipal clients. As of March 31, 1995, MCM had
discretionary management authority with respect to approximately $6.2 billion
of assets. The principal business address of MCM is 475 Sansome Street, San
Francisco, California 94111. The principal business address of MCM's parent,
Bank of California, N.A., is 400 California Street, San Francisco, California
94104. Bank of California is a wholly owned subsidiary of The Mitsubishi Bank,
Limited, 7-1 Mitsubishi 2-Chome, Chiyoda-ku, Tokyo, 100, Japan.
MCM also serves as the investment adviser to several other registered
investment companies. The approximate net assets of such fund or portfolio and
the fee payable by each, are set forth below:
<TABLE>
<CAPTION>
ASSET SIZE FEE RECEIVED
FUND (AS OF 3/31/95) (MOST RECENT FISCAL YEAR)
---- --------------- -------------------------
<S> <C> <C>
High Mark Income Equity 213,457,589 $117,000
</TABLE>
Listed below are the names and principal occupations of each of the directors
and the principal executive officer of MCM. The principal business address of
each director and the principal executive officer, as it relates to their
duties at MCM, is 475 Sansome Street, San Francisco, California 94111.
<TABLE>
<CAPTION>
NAME TITLE
---- -----
<S> <C>
Hiroo Nozawa Chairman, & CEO
Luke Mazur President and Chief Investment Officer
Stanley F. Farrar, Esq. Director
Roy A. Henderson Director
Yasuyuki Hirai Director
Kazui Ibuki Director
Professor Raymond E. Miles Director
J. Fernando Niebla Director
Minoru Noda Director
Carl W. Robertson, Esq. Director
Charles R. Scott Director
Paul W. Steere, Esq. Director
Takejiro Sueyoshi Director
Henry T. Swigert Director
</TABLE>
30
<PAGE>
THE TRUSTEES RECOMMEND THAT THE SHAREHOLDERS VOTE FOR PROPOSAL 24.
25. APPROVAL OF AN INVESTMENT SUB-ADVISER AND THE INVESTMENT SUB-ADVISORY
AGREEMENT FOR THE BALANCED PORTFOLIO.
The Board of Trustees is recommending that Shareholders of the Balanced
Portfolio approve SunBank as an Investment Sub-Adviser of the Portfolio and
approve the form of Investment Sub-Advisory Agreement between SFM and SunBank.
Compensation. Under the Investment Sub-Advisory Agreement, SFM pays SunBank a
fee, which is calculated and paid monthly, based on an annual percentage rate
of the month-end market value of assets of the Balanced Portfolio managed by
SunBank. This rate is set at .25% of the average daily net assets of the
Portfolio. For the fiscal year ended September 30, 1994, the Portfolio paid
SunBank an investment advisory fee of .25% of the average daily net assets of
the Portfolio.
Description of Sunbank. Sunbank currently serves as Investment Sub-Adviser
for this Portfolio, as well as the Balanced and Capital Growth Portfolios of
the Trust. (See the description of SunBank in the text that accompanies
Proposal 23, above.)
THE TRUSTEES RECOMMEND THAT THE SHAREHOLDERS VOTE FOR PROPOSAL 25.
26. APPROVAL OF AN INVESTMENT SUB-ADVISER AND THE INVESTMENT SUB-ADVISORY
AGREEMENT FOR THE BOND PORTFOLIO.
The Board of Trustees is recommending that Shareholders of the Bond Portfolio
approve Boatmen's as an Investment Sub-Adviser of the Portfolio and approve the
form of Investment Sub-Advisory Agreement between SFM and Boatmen's.
Compensation. Under the Investment Sub-Advisory Agreement, SFM pays Boatmen's
a fee, which is calculated and paid monthly, based on an annual percentage rate
of the month-end market value of assets of the Bond Portfolio managed by
Boatmen's. This rate is set at .125% of the average daily net assets of the
Portfolio. For the fiscal year ended September 30, 1994, the Portfolio paid
Boatmen's an investment advisory fee of .125% of the average daily net assets
of the Portfolio.
Description of Boatmen's. Boatmen's currently acts as the Investment Sub-
Adviser for the Bond Portfolio. Boatmen's is a subsidiary of Boatmen's
Bancshares, Inc., a multi-bank holding company. Boatmen's provides trust and
investment advisory services to a broad array of individual and institutional
clients. As of March 31, 1995, Boatmen's total assets under management were
approximately $[ ] billion for a broad spectrum of taxable and tax-exempt
clients. The principal business address of Boatmen's is 100 N. Broadway, St.
Louis, Missouri 63102.
[BOATMEN'S ALSO SERVES AS INVESTMENT ADVISER TO SEVERAL OTHER REGISTERED
INVESTMENT COMPANIES WITH INVESTMENT OBJECTIVES SIMILAR TO THOSE OF THE
PORTFOLIO. THE APPROXIMATE NET ASSETS OF SUCH FUNDS OR PORTFOLIOS AND THE FEE
PAYABLE BY EACH ARE SET FORTH BELOW:]
The Portfolio has been managed by a committee since its inception.
31
<PAGE>
Listed below are the names and principal occupations of each of the directors
and the principal executive officer of Boatmen's. The principal business
address of each director and the principal executive officer, as it relates to
their duties at Boatmen's is 100 N. Broadway, St. Louis, Missouri 63102.
<TABLE>
<CAPTION>
NAME TITLE
---- -----
<S> <C>
Clarence C. Barksdale Director
John F. Biggs, Jr. Director
Gerald D. Blatherwick Director
Stephen F. Brauer Director
Mary Leyhe Burke, Ph.D. Director
George K. Conant Director
Andrew B. Craig III Director
Donald Danforth, Jr. Director
Martin E. Gait, III Director
A. William Hager Director
Samuel E. Hayes, III Director
Edwin S. Jones Director
Robert E. Kresko Director
Stanley L. Lopata Director
John Peters MacCarthy Director
James S. McDonnell III Director
John B. McKinney Director
Reuben M. Morriss, III Director
Dolor P. Murray Director
William C. Nelson Director
Edward L. O'Neill Director
Spencer T. Olin Director
William A. Peck, M.D. Director
W.R. Persons Director
Jerry E. Ritter Director
Lawrence K. Roos Director
Louis S. Sachs Director
Hugh Scott, III Director
Warren M. Shapleigh Director
Robert H. Shoenberg Director
Sydney M. Shoenberg, Jr. Director
Richard W. Shomaker Director
Brice R. Smith, Jr. Director
William D. Stamper Director
Harold E. Thayer Director
Janet M. Weakley Director
Gordon E. Wells Director
Eugene F. Williams, Jr. Director
</TABLE>
32
<PAGE>
THE TRUSTEES RECOMMEND THAT THE SHAREHOLDERS VOTE FOR PROPOSAL 26.
SECTION V.
GENERAL INFORMATION ABOUT THE TRUST AND OTHER MATTERS
Distribution. SEI Financial Services Company ("SFS"), a wholly-owned
subsidiary of SEI Corporation, 680 East Swedesford Road, Wayne, Pennsylvania
19087-1658 ("SEI"), acts as the Distributor of the Trust's shares pursuant to a
Distribution Agreement dated January 22, 1987 between the Trust and SFS. Alfred
P. West, Jr. serves as Chairman of the Board and Chief Executive Officer of SFS
and SEI, and Henry H. Greer serves as Director, President and Chief Operating
Officer of SFS and SEI. William M. Doran, a Trustee of the Trust, is a Director
and Secretary of SEI.
Portfolio Transactions. [IDENTIFY EACH BROKER AFFILIATED WITH ANY SUB-ADVISER
AND DESCRIBE THE RELATIONSHIP THAT CAUSED THE BROKER TO BE AN AFFILIATED
BROKER.]
For the Trust's fiscal year ended September 30, 1994, the Portfolios of the
Trust paid the following amounts in (i) brokerage commissions to affiliates of
the Portfolio, and (ii) fees to the Distributor in connection with repurchase
transactions:
<TABLE>
<CAPTION>
AMOUNT PAID % PAID TO
TOTAL BROKERAGE TO [AFFILIATED [AFFILIATED
PORTFOLIO COMMISSION BROKER] BROKER]
--------- --------------- -------------- -----------
<S> <C> <C> <C>
Large Cap Value $ 267,632 $ 10,375 4%
Capital Growth $ 331,813 $ 29,306 9%
Small Cap Growth $ 447,356 $ 47,550 11%
Capital Appreciation $1,611,243 $173,127 11%
Equity Income $ 490,073 $ 38,830 8%
Balanced $ 101,709 $ 20,376 20%
Mid-Cap Growth $ 264,405 $ 18,120 7%
Core Fixed Income $ 1,840 $ 0 0%
Bond $ 0 $ 0 0%
</TABLE>
- --------
The Real Estate Securities, Small Cap Value, Large Cap Growth, and High Yield
Bond Portfolios of the Trust had not commenced operations as of September 30,
1994.
5% Shareholders. As of April 20, 1995, the following persons were the only
persons who were record owners or, to the knowledge of the Trust, were
beneficial owners of 5% or more of shares of the Portfolios of the Trust. The
Trust believes that most of the shares referred to above were held by the below
persons in accounts for their fiduciary, agency, or custodial customers.
<TABLE>
<CAPTION>
NUMBER
SHARE OWNERSHIP OF SHARES PERCENT
--------------- --------- -------
<S> <C> <C>
</TABLE>
The Trust's Trustees and officers do not beneficially own any shares of the
Trust.
33
<PAGE>
Adjournment. In the event that sufficient votes in favor of a Proposal set
forth in the Notice of the Special Meeting are not received by the time
scheduled for the meeting, the persons named as proxies may propose one or more
adjournments of the meeting for a period or periods of not more than 60 days in
the aggregate to permit further solicitation of proxies with respect to any of
such Proposal. Any such adjournment will require the affirmative vote of a
majority of the votes cast on the question in person or by proxy at the session
of the meeting to be adjourned. The persons named as proxies will vote in favor
of such adjournment those proxies which they are entitled to vote in favor of
such Proposals. They will vote against any such adjournment those proxies
required to be voted against any such Proposals. The costs of any such
additional solicitation and of any adjourned session will be borne by the
Trust.
Required Vote. Approval of the Proposals with respect to a Portfolio requires
the affirmative vote of a majority of the outstanding shares of a Portfolio. As
defined in the 1940 Act, "majority of the outstanding shares" means the vote of
(i) 67% or more of a Portfolio's or the Trust's outstanding shares present at a
meeting, if the holders of more than 50% of the outstanding shares of a
Portfolio or the Trust are present or represented by proxy, or (ii) more than
50% of a Portfolio's or the Trust's outstanding shares, whichever is less.
Abstentions and "broker non-votes" will not be counted for or against any
Proposal to which it relates, but will be counted for purposes of determining
whether a quorum is present. Abstentions will be counted as votes present for
purposes of determining a "majority of the outstanding voting securities"
present at the Meeting and will therefore have the effect of counting against
the Proposal to which it relates.
Shareholder Proposals. The Trust does not hold annual Shareholder Meetings.
Shareholders wishing to submit proposals for inclusion in a proxy statement for
a subsequent meeting should send their written proposals to the Secretary of
the Trust c/o SEI Corporation, Legal Department, 680 East Swedesford Road,
Wayne, Pennsylvania 19087-1658.
Reports to Shareholders. The Trust will furnish, without charge, a copy of
the most recent Annual Report to Shareholders of the Trust and the most recent
Semi-Annual Report succeeding such Annual Report, if any, on request. Requests
should be directed to the Trust at 680 East Swedesford Road, Wayne, PA 19087-
1658, or by calling 1-800-342-5734.
Other Matters. The Trustees know of no other business to be brought before
the meeting. However, if any other matters properly come before the meeting, it
is their intention that proxies which do not contain specific restrictions to
the contrary will be voted on such matters in accordance with the judgment of
the persons named in the enclosed form of proxy.
-----------------
SHAREHOLDERS ARE URGED TO COMPLETE, SIGN AND DATE THE ENCLOSED PROXY AND
RETURN IT PROMPTLY.
34
<PAGE>
EXHIBIT A
INVESTMENT ADVISORY AGREEMENT
SEI INSTITUTIONAL MANAGED TRUST
AGREEMENT made this 16th day of December, 1994, by and between SEI
Institutional Managed Trust, a Massachusetts business trust (the "Trust"), and
SEI Financial Management Corporation, (the "Adviser").
WHEREAS, the Trust is an open-end management investment company registered
under the Investment Company Act of 1940, as amended (the "1940 Act"),
consisting of several portfolios of shares, each having its own investment
policies; and
WHEREAS, the Trust desires to retain the Adviser to render investment
management services with respect to its Large Cap Growth, Small Cap Value, High
Yield Bond Portfolios and such other portfolios as the Trust and the Adviser
may agree upon (the "Portfolios"), and the Adviser is willing to render such
services:
NOW, THEREFORE, in consideration of mutual covenants herein contained, the
parties hereto agree as follows:
1. DUTIES OF THE ADVISER. The Trust employs the Adviser to manage the
investment and reinvestment of the assets, to hire (subject to the approval of
the Trust's Board of Trustees and, except as otherwise permitted under the
terms of any exemptive relief obtained by the Adviser from the Securities and
Exchange Commission, or by rule or regulation, a majority of the outstanding
voting securities of any affected Portfolio(s)) and thereafter supervise the
investment activities of one or more sub-advisers deemed necessary to carry out
the investment program of any Portfolios of the Trust, and to continuously
review, supervise and (where appropriate) administer the investment program of
the Portfolios, to determine in its discretion (where appropriate) the
securities to be purchased or sold, to provide the Administrator and the Trust
with records concerning the Adviser's activities which the Trust is required to
maintain, and to render regular reports to the Administrator and to the Trust's
officers and Trustees concerning the Adviser's discharge of the foregoing
responsibilities. The retention of a sub-adviser by the Adviser shall not
relieve the Adviser of its responsibilities under this Agreement.
The Adviser shall discharge the foregoing responsibilities subject to the
control of the Board of Trustees of the Trust and in compliance with such
policies as the Trustees may from time to time establish, and in compliance
with the objectives, policies, and limitations for each such Portfolio set
forth in the Trust's prospectus and statement of additional information, as
amended from time to time (referred to collectively as the "Prospectus"), and
applicable laws and regulations. The Trust will furnish the Adviser from time
to time with copies of all amendments or supplements to the Prospectus, if any.
The Adviser accepts such employment and agrees, at its own expense, to render
the services and to provide the office space, furnishings and equipment and the
personnel (including any sub-advisers) required by it to perform the services
on the terms and for the compensation provided herein. The
A-1
<PAGE>
Adviser will not, however, pay for the cost of securities, commodities, and
other investments (including brokerage commissions and other transaction
charges, if any) purchased or sold for the Trust.
2. DELIVERY OF DOCUMENTS. The Trust has furnished Adviser with copies
properly certified or authenticated of each of the following:
(a) The Trust's Agreement and Declaration of Trust, as filed with the
Secretary of State of the Commonwealth of Massachusetts (such Agreement and
Declaration of Trust, as presently in effect and as it shall from time to
time be amended, is herein called the "Declaration of Trust");
(b) By-Laws of the Trust (such By-Laws, as in effect on the date of this
Agreement and as amended from time to time, are herein called the "By-
Laws");
(c) Prospectus(es) of the Portfolio(s).
3. OTHER COVENANTS. The Adviser agrees that it:
(a) will comply with all applicable Rules and Regulations of the
Securities and Exchange Commission and will in addition conduct its
activities under this Agreement in accordance with other applicable law;
(b) will place orders pursuant to its investment determinations for the
Portfolios either directly with the issuer or with any broker or dealer. In
executing Portfolio transactions and selecting brokers or dealers, the
Adviser will use its best efforts to seek on behalf of the Portfolio the
best overall terms available. In assessing the best overall terms available
for any transaction, the Adviser shall consider all factors that it deems
relevant, including the breadth of the market in the security, the price of
the security, the financial condition and execution capability of the
broker or dealer, and the reasonableness of the commission, if any, both
for the specific transaction and on a continuing basis. In evaluating the
best overall terms available, and in selecting the broker-dealer to execute
a particular transaction the Adviser may also consider the brokerage and
research services (as those terms are defined in Section 28(e) of the
Securities Exchange Act of 1934) provided to the Portfolio and/or other
accounts over which the Adviser or an affiliate of the Adviser may exercise
investment discretion. The Adviser is authorized, subject to the prior
approval of the Trust's Board of Trustees, to pay to a broker or dealer who
provides such brokerage and research services a commission for executing a
portfolio transaction for any of the Portfolios which is in excess of the
amount of commission another broker or dealer would have charged for
effecting that transaction if, but only if, the Adviser determines in good
faith that such commission was reasonable in relation to the value of the
brokerage and research services provided by such broker or dealer--viewed
in terms of that particular transaction or terms of the overall
responsibilities of the Adviser to the Portfolio. In addition, the Adviser
if authorized to allocate purchase and sale orders for portfolio securities
to brokers or dealers (including brokers and dealers that are affiliated
with the Adviser or the Trust's principal underwriter) to take into account
the sale of shares of the Trust if the Adviser believes that the quality of
the transaction and the commission are comparable to what they would be
with other qualified firms. In no instance, however, will any Portfolio's
securities be purchased from or sold to the Adviser, any sub-adviser
engaged with respect to that Portfolio, the Trust's principal underwriter,
or any affiliated person of either the Trust, the Adviser, and sub-adviser
or the principal underwriter, acting as principal
A-2
<PAGE>
in the transaction, except to the extent permitted by the Securities and
Exchange Commission and the 1940 Act.
4. COMPENSATION OF THE ADVISER. For the services to be rendered by the
Adviser as provided in Sections 1 and 2 of this Agreement, the Trust shall pay
to the Adviser compensation at the rate(s) specified in the Schedule(s) which
are attached hereto and made a part of this Agreement. Such compensation shall
be paid to the Adviser at the end of each month, and calculated by applying a
daily rate, based on the annual percentage rates as specified in the attached
Schedule(s), to the assets of the Portfolio. The fee shall be based on the
average daily net assets for the month involved. The Adviser may, in its
discretion and from time to time, waive a portion of its fee.
All rights of compensation under this Agreement for services performed as of
the termination date shall survive the termination of this Agreement.
5. EXCESS EXPENSES. If the expenses for any Portfolio for any fiscal year
(including fees and other amounts payable to the Adviser, but excluding
interest, taxes, brokerage costs, litigation, and other extraordinary costs) as
calculated every business day would exceed the expense limitations imposed on
investment companies by any applicable statute or regulatory authority of any
jurisdiction in which Shares are qualified for offer and sale, the Adviser
shall bear such excess cost.
However, the Adviser will not bear expenses of the Trust or any Portfolio
which would result in the Trust's inability to qualify as a regulated
investment company under provisions of the Internal Revenue Code. Payment of
expenses by the Adviser pursuant to this Section 5 shall be settled on a
monthly basis (subject to fiscal year end reconciliation) by a waiver of the
Adviser's fees provided for hereunder, and such waiver shall be treated as a
reduction in the purchase price of the Adviser's services.
6. REPORTS. The Trust and the Adviser agree to furnish to each other, if
applicable, current prospectuses, proxy statements, reports to shareholders,
certified copies of their financial statements, and such other information with
regard to their affairs as each may reasonably request. The Adviser further
agrees to furnish to the Trust, if applicable, the same such documents and
information pertaining to any sub-adviser as the Trust may reasonably request.
7. STATUS OF THE ADVISER. The services of the Adviser to the Trust are not to
be deemed exclusive, and the Adviser shall be free to render similar services
to others so long as its services to the Trust are not impaired thereby. The
Adviser shall be deemed to be an independent contractor and shall, unless
otherwise expressly provided or authorized, have no authority to act for or
represent the Trust in any way or otherwise be deemed an agent of the Trust. To
the extent that the purchase or sale of securities or other investments of any
issuer may be deemed by the Adviser to be suitable for two or more accounts
managed by the Adviser, the available securities or investments may be
allocated in a manner believed by the Adviser to be equitable to each account.
It is recognized that in some cases this may adversely affect the price paid or
received by the Trust or the size or position obtainable for or disposed by the
Trust or any Portfolio.
A-3
<PAGE>
8. CERTAIN RECORDS. Any records required to be maintained and preserved
pursuant to the provisions of Rule 31a-1 and Rule 31a-2 promulgated under the
1940 Act which are prepared or maintained by the Adviser (or any sub-adviser)
on behalf of the Trust are the property of the Trust and will be surrendered
promptly to the Trust on request. The Adviser further agrees to preserve for
the periods prescribed in Rule 31a-2 under the 1940 Act the records required to
be maintained under Rule 31a-1 under the 1940 Act.
9. LIMITATION OF LIABILITY OF THE ADVISER. The duties of the Adviser shall be
confined to those expressly set forth herein, and no implied duties are assumed
by or may be asserted against the Adviser hereunder. The Adviser shall not be
liable for any error of judgment or mistake of law or for any loss arising out
of any investment or for any act or omission in carrying out its duties
hereunder, except a loss resulting from willful misfeasance, bad faith or gross
negligence in the performance of its duties, or by reason of reckless disregard
of its obligations and duties hereunder, except as may otherwise be provided
under provisions of applicable state law which cannot be waived or modified
hereby. (As used in this Section 9, the term "Adviser" shall include directors,
officers, employees and other corporate agents of the Adviser as well as that
corporation itself).
10. PERMISSIBLE INTERESTS. Trustees, agents, and shareholders of the Trust
are or may be interested in the Adviser (or any successor thereof) as
directors, partners, officers, or shareholders, or otherwise; directors,
partners, officers, agents, and shareholders of the Adviser are or may be
interested in the Trust as Trustees, officers, shareholders or otherwise; and
the Adviser (or any successor) is or may be interested in the Trust as a
shareholder or otherwise subject to the provisions of applicable law. All such
interests shall be fully disclosed between the parties on an ongoing basis and
in the Trust's Prospectus as required by law. In addition, brokerage
transactions for the Trust may be effected through affiliates of the Adviser or
any sub-adviser if approved by the Board of Trustees, subject to the rules and
regulations of the Securities and Exchange Commission.
11. DURATION AND TERMINATION. This Agreement, unless sooner terminated as
provided herein, shall remain in effect until two years from date of execution,
and thereafter, for periods of one year so long as such continuance thereafter
is specifically approved at least annually (a) by the vote of a majority of
those Trustees of the Trust who are not parties to this Agreement or interested
persons of any such party, cast in person at a meeting called for the purpose
of voting on such approval, and (b) by the Trustees of the Trust or by vote of
a majority of the outstanding voting securities of each Portfolio; provided,
however, that if the shareholders of any Portfolio fail to approve the
Agreement as provided herein, the Adviser may continue to serve hereunder in
the manner and to the extent permitted by the 1940 Act and rules and
regulations thereunder. The foregoing requirement that continuance of this
Agreement be "specifically approved at least annually" shall be construed in a
manner consistent with the 1940 Act and the rules and regulations thereunder.
This Agreement may be terminated as to any Portfolio at any time, without the
payment of any penalty by vote of a majority of the Trustees of the Trust or by
vote of a majority of the outstanding voting securities of the Portfolio on not
less than 30 days nor more than 60 days written notice to the Adviser, or by
the Adviser at any time without the payment of any penalty, on 90 days written
notice to the Trust. This Agreement will automatically and immediately
terminate in the event of its assignment.
A-4
<PAGE>
As used in this Section 11, the terms "assignment", "interested persons", and
a "vote of a majority of the outstanding voting securities" shall have the
respective meanings set forth in the 1940 Act and the rules and regulations
thereunder, subject to such exemptions as may be granted by the Securities and
Exchange Commission.
12. GOVERNING LAW. This Agreement shall be governed by the internal laws of
the Commonwealth of Massachusetts, without regard to conflict of law
principles; provided, however that nothing herein shall be construed as being
inconsistent with the 1940 Act.
13. NOTICE: Any notice, advice or report to be given pursuant to this
Agreement shall be deemed sufficient if delivered or mailed by registered,
certified or overnight mail, postage prepaid addressed by the party giving
notice to the other party at the last address furnished by the other party:
To the Adviser at: SEI Financial Management
Corporation
680 East Swedesford Road
Wayne, PA 19087
Attn: Legal Department
To the Trust at: SEI Financial Management
Corporation
680 East Swedesford Road
Wayne, PA 19087
Attn: Legal Department
14. SEVERABILITY. If any provision of this Agreement shall be held or made
invalid by a court decision, statute, rule or otherwise, the remainder of this
Agreement shall not be affected thereby.
15. ENTIRE AGREEMENT. This Agreement embodies the entire agreement and
understanding between the parties hereto, and supersedes all prior agreements
and understandings relating to this Agreement's subject matter. This Agreement
may be executed in any number of counterparts, each of which shall be deemed to
be an original, but such counterparts shall, together, constitute only one
instrument.
A copy of the Declaration of Trust of the Trust is on file with the Secretary
of State of the Commonwealth of Massachusetts, and notice is hereby given that
this instrument is executed on behalf of the Trustees of the Trust as Trustees,
and is not binding upon any of the Trustees, officers, or shareholders of the
Trust individually but binding only upon the assets and property of the Trust.
No Portfolio of the Trust shall be liable for the obligations of any other
Portfolio of the Trust. Without limiting the generality of the foregoing, the
Adviser shall look only to the assets of a particular Portfolio for payment of
fees for services rendered to that Portfolio.
Where the effect of a requirement of the 1940 Act reflected in any provision
of this Agreement is altered by a rule, regulation or order of the Commission,
whether of special or general application, such provision shall be deemed to
incorporate the effect of such rule, regulation or order.
A-5
<PAGE>
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as of the day and year first written above.
SEI Institutional Managed Trust SEI Financial Management
Corporation
By: ____________________________________
By: _______________________________
Attest: ________________________________
Attest: ___________________________
A-6
<PAGE>
SCHEDULE A
TO THE
INVESTMENT ADVISORY AGREEMENT
BETWEEN
SEI INSTITUTIONAL MANAGED TRUST
AND
SEI FINANCIAL MANAGEMENT CORPORATION
Pursuant to Article 4, the Trust shall pay the Adviser compensation at an
annual rate as follows:
<TABLE>
<S> <C>
Large Cap Growth .40%
Small Cap Value .65%
High Yield Bond .4875%
Large Cap Value .35%
</TABLE>
A-7
<PAGE>
SCHEDULE B
TO THE
INVESTMENT ADVISORY AGREEMENT
BETWEEN
SEI INSTITUTIONAL MANAGED TRUST
AND
SEI FINANCIAL MANAGEMENT CORPORATION
Pursuant to Article 4, the Trust shall pay the Adviser compensation at an
annual rate as follows:
<TABLE>
<S> <C>
Capital Appreciation .40%
Balanced .40%
Equity Income .40%
Bond .275%
</TABLE>
A-8
<PAGE>
EXHIBIT B
INVESTMENT SUB-ADVISORY AGREEMENT
SEI INSTITUTIONAL MANAGED TRUST
AGREEMENT made this day of , 1995, by and among SEI Financial
Management Corporation, (the "Adviser") and (the "Sub-Adviser").
WHEREAS, SEI Institutional Managed Trust, a Massachusetts business trust (the
"Trust") is registered as an open-end management investment company under the
Investment Company Act of 1940, as amended (the "1940 Act"); and
WHEREAS, the Adviser has entered into an Investment Advisory Agreement dated
(the "Advisory Agreement") with the Trust, pursuant to which the
Adviser will act as investment adviser to the Portfolio (the
"Portfolio"), which is a series of the Trust; and
WHEREAS, the Adviser, with the approval of the Trust, desires to retain the
Sub-Adviser to provide investment advisory services to the Adviser in
connection with the management of the Portfolio, and the Sub-Adviser is willing
to render such investment advisory services.
NOW, THEREFORE, the parties hereto agree as follows:
1. DUTIES OF THE SUB-ADVISER. Subject to supervision by the Adviser and the
Trust's Board of Trustees, the Sub-Adviser shall manage all of the securities
and other assets of the Portfolio entrusted to it hereunder (the "Assets"),
including the purchase, retention and disposition of the Assets, in accordance
with the Portfolio's investment objectives, policies and restrictions as stated
in the Portfolio's prospectus and statement of additional information, as
currently in effect and as amended or supplemented from time to time (referred
to collectively as the "Prospectus"), and subject to the following:
(a) The Sub-Adviser shall provide supervision of the Assets and determine
from time to time what Assets will be purchased, retained or sold by the
Portfolio, and what portion of the Assets will be invested or held
uninvested in cash.
(b) In the performance of its duties and obligations under this
Agreement, the Sub-Adviser shall act in conformity with the Trust's
Declaration of Trust (as defined herein) and the Prospectus and with the
instructions and directions of the Adviser and of the Board of Trustees of
the Trust and will conform to and comply with the requirements of the 1940
Act, the Internal Revenue Code of 1986, and all other applicable federal
and state laws and regulations, as each is amended from time to time.
(c) The Sub-Adviser shall determine the Assets to be purchased or sold by
the Portfolio and will place orders with or through such persons, brokers
or dealers to carry out the policy with respect to brokerage set forth in
the Portfolio's Registration Statement (as defined herein) and Prospectus
or as the Board of Trustees or the Adviser may direct from time to time, in
conformity with federal securities laws. In executing Portfolio
transactions and selecting brokers or dealers, the Sub-Adviser will use its
best efforts to seek on behalf of the Portfolio the best overall terms
B-1
<PAGE>
available. In assessing the best overall terms available for any
transaction, the Sub-Adviser shall consider all factors that it deems
relevant, including the breadth of the market in the security, the price of
the security, the financial condition and execution capability of the
broker or dealer, and the reasonableness of the commission, if any, both
for the specific transaction and on a continuing basis. In evaluating the
best overall terms available, and in selecting the broker-dealer to execute
a particular transaction the Sub-Adviser may also consider the brokerage
and research services (as those terms are defined in Section 28(e) of the
Securities Exchange Act of 1934) provided to the Portfolio and/or other
accounts over which the Sub-Adviser or an affiliate of the Sub-Adviser may
exercise investment discretion. The Sub-Adviser is authorized, subject to
the prior approval of the Trust's Board of Trustees, to pay to a broker or
dealer who provides such brokerage and research services a commission for
executing a portfolio transaction for the Portfolio which is in excess of
the amount of commission another broker or dealer would have charged for
effecting that transaction if, but only if, the Sub-Adviser determines in
good faith that such commission was reasonable in relation to the value of
the brokerage and research services provided by such broker or dealer--
viewed in terms of that particular transaction or terms of the overall
responsibilities of the Sub-Adviser to the Portfolio. In addition, the Sub-
Adviser if authorized to allocate purchase and sale orders for securities
to brokers or dealers (including brokers and dealers that are affiliated
with the Adviser, Sub-Adviser or the Trust's principal underwriter) to take
into account the sale of shares of the Trust if the Sub-Adviser believes
that the quality of the transaction and the commission are comparable to
what they would be with other qualified firms. In no instance, however,
will the Portfolio's Assets be purchased from or sold to the Adviser, Sub-
Adviser, the Trust's principal underwriter, or any affiliated person of
either the Trust, Adviser, the Sub-Adviser or the principal underwriter,
acting as principal in the transaction, except to the extent permitted by
the Securities and Exchange Commission and the 1940 Act.
(d) The Sub-Adviser shall maintain all books and records with respect to
transactions involving the Assets required by subparagraphs (b)(5), (6),
(7), (9), (10) and (11) and paragraph (f) of Rule 31a-1 under the 1940 Act
and shall render to the Adviser or Board of Trustees such periodic and
special reports as the Adviser or Board of Trustees may reasonably request.
The Sub-Adviser shall keep the books and records relating to the Assets
required to be maintained by the Sub-Adviser under this Agreement and shall
timely furnish to the Adviser all information relating to the Sub-Adviser's
services under this Agreement needed by the Adviser to keep the other books and
records of the Portfolio required by Rule 31a-1 under the 1940 Act. The Sub-
Adviser shall also furnish to the Adviser any other information relating to the
Assets that is required to be filled by the Adviser or the Trust with the
Securities and Exchange Commission ("SEC") or sent to shareholders under the
1940 Act (including the rules adopted thereunder) or any exemptive or other
relief that the Adviser or the Trust obtains from the SEC. The Sub-Adviser
agrees that all records that it maintains on behalf of the Portfolio are
property of the Portfolio and the Sub-Adviser will surrender promptly to the
Portfolio any of such records upon the Portfolio's request; provided, however,
that the Sub-Adviser may retain a copy of such records. In addition, for the
duration of this Agreement, the Sub-Adviser shall preserve for the periods
prescribed by Rule 31a-2 under the 1940 Act any such records as are required to
be maintained by it pursuant to this Agreement, and shall transfer said records
to any successor Sub-Adviser upon the termination of his Agreement (or, if
there is no successor Sub-Adviser, to the Adviser).
B-2
<PAGE>
(e) The Sub-Adviser shall provide the Portfolio's custodian on each
business day with information relating to all transactions concerning the
Portfolio's Assets and shall provide the Adviser with such information upon
request of the Adviser.
(f) The investment management services provided by the Sub-Adviser under
this Agreement are not to be deemed exclusive and the Sub-Adviser shall be
free to render similar services to others, as long as such services do not
impair the services rendered to the Adviser or the Trust.
(g) The Sub-Adviser shall promptly notify the Adviser of any financial
condition that is likely to impair the Sub-Adviser's ability to fulfill its
commitment under this Agreement.
(h) The Sub-Adviser shall review all proxy solicitation materials and be
responsible for voting and handling all proxies in relation to the
securities held in the Portfolio. The Adviser shall instruct the custodian
and other parties providing services to the Portfolio to promptly forward
misdirected proxies to the Sub-Adviser.
Services to be furnished by the Sub-Adviser under this Agreement may be
furnished through the medium of any of the Sub-Adviser's partners, officers or
employees.
2. DUTIES OF THE ADVISER. The Adviser shall continue to have responsibility
for all services to be provided to the Portfolio pursuant to the Advisory
Agreement and shall oversee and review the Sub-Adviser's performance of its
duties under this Agreement; provided, however, that nothing herein shall be
construed to relieve the Sub-Adviser of responsibility for compliance with the
Portfolio's investment objectives, policies, and restrictions, as provided in
Section 1 hereunder, in connection with its management of the Assets.
3. DELIVERY OF DOCUMENTS. The Adviser has furnished the Sub-Adviser with
copies properly certified or authenticated of each of the following documents:
(a) The Trust's Agreement and Declaration of Trust, as filed with the
Secretary of State of the Commonwealth of Massachusetts (such Agreement and
Declaration of Trust, as in effect on the date of this Agreement and as
amended from time to time, herein called the "Declaration of Trust");
(b) By-Laws of the Trust (such By-Laws, as in effect on the date of this
Agreement and as amended from time to time, are herein called the "By-
Laws");
(c) Prospectus(es) of the Portfolio.
4. COMPENSATION TO THE SUB-ADVISER. For the services to be provided by the
Sub-Adviser pursuant to this Agreement, the Adviser will pay the Sub-Adviser,
and the Sub-Adviser agrees to accept as full compensation therefor, a sub-
advisory fee at the rate specified in the Schedule(s) which is attached hereto
and made part of this Agreement. The fee will be calculated based on the
average monthly market value of the Assets under the Sub-Adviser's management
and will be paid to the Sub-Adviser monthly. Except as may otherwise be
prohibited by law or regulation (including any SEC staff current interpretation
thereon), the Sub-Adviser may, in its discretion and from time to time, waive a
portion of its fee.
B-3
<PAGE>
5. LIMITATION OF LIABILITY OF THE SUB-ADVISER. The Sub-Adviser shall not be
liable for any error of judgment or for any loss suffered by the Adviser in
connection with performance of its obligations under this Agreement, except a
loss resulting from a breach of fiduciary duty with respect to the receipt of
compensation for services (in which case any award of damages shall be limited
to the period and the amount set forth in Section 36(b)(3) of the 1940 Act), or
a loss resulting from willful misfeasance, bad faith or negligence on the Sub-
Adviser's part in the performance of its duties or from reckless disregard of
its obligations and duties under this Agreement, except as may otherwise be
provided under provisions of applicable state law which cannot be waived or
modified hereby.
6. REPORTS. During the term of this Agreement, the Adviser agrees to furnish
the Sub-Adviser at its principal office all prospectuses, proxy statements,
reports to stockholders, sales literature or other materials prepared for
distribution to stockholders of the Portfolios, the Trust or the public that
refer to the Sub-Adviser or its clients in any way prior to use thereof and not
to use material if the Sub-Adviser reasonably objects in writing within five
business days (or such other period as may be mutually agreed) after receipt
thereof. The Sub-Adviser's right to object to such materials is limited to the
portions of such materials that expressly relate to the Sub-Adviser, its
services and its clients. The Adviser agrees to use its reasonable best efforts
to ensure that materials prepared by its employees or agents or its affiliates
that refer to the Sub-Adviser or its clients in any way are consistent with
those materials previously approved by the Sub-Adviser as referenced in the
first sentence of this paragraph. Sales literature may be furnished to the Sub-
Adviser by first class or overnight mail, facsimile transmission equipment or
hand delivery.
7. INDEMNIFICATION. The Sub-Adviser shall indemnify and hold harmless the
Adviser from and against any and all claims, losses, liabilities or damages
(including reasonable attorney's fees and other related expenses) howsoever
arising from or in connection with this Agreement or the performance by the
Sub-Adviser of its duties hereunder; provided, however, that the Sub-Adviser
shall not be required to indemnify or otherwise hold the Adviser harmless under
this Section 7 where the claim against, or the loss, liability or damage
experienced by the Adviser, is caused by or is otherwise directly related to
the Adviser's own willful misfeasance, bad faith or negligence, or to the
reckless disregard of its duties under this Agreement.
8. DURATION AND TERMINATION. This Agreement shall become effective upon its
approval by the Trust's Board of Trustees and by the vote of a majority of the
outstanding voting securities of the Portfolio; provided, however, that at any
time the Adviser shall have obtained exemptive relief from the SEC permitting
it to engage a Sub-Adviser without first obtaining approval of the Agreement
from a majority of the outstanding voting securities of the Portfolio(s)
involved, the Agreement shall become effective upon its approval by the Trust's
Board of Trustees. Any Sub-Adviser so selected and approved shall be without
the protection accorded by shareholder approval of an investment adviser's
receipt of compensation under Section 36(b) of the 1940 Act.
This Agreement shall continue in effect for a period of more than two years
from the date hereof only so long as continuance is specifically approved at
least annually in conformance with the 1940 Act; provided, however, that this
Agreement may be terminated with respect to the Portfolio (a) by the
B-4
<PAGE>
Portfolio at any time, without the payment of any penalty, by the vote of a
majority of Trustees of the Trust or by the vote of a majority of the
outstanding voting securities of the Portfolio, (b) by the Adviser at any time,
without the payment of any penalty, on not more than 60 days' nor less than 30
days' written notice to the Sub-Adviser, or (c) by the Sub-Adviser at any time,
without the payment of any penalty, on 90 days' written notice to the Adviser.
This Agreement shall terminate automatically and immediately in the event of
its assignment, or in the event of a termination of the Adviser's agreement
with the Trust. As used in this Section 8, the terms "assignment" and "vote of
a majority of the outstanding voting securities" shall have the respective
meanings set forth in the 1940 Act and the rules and regulations thereunder,
subject to such exceptions as may be granted by the Commission under the 1940
Act.
9. GOVERNING LAW. This Agreement shall be governed by the internal laws of
the Commonwealth of Massachusetts, without regard to conflict of law
principles; provided, however, that nothing herein shall be construed as being
inconsistent with the 1940 Act.
10. SEVERABILITY. Should any part of this Agreement be held invalid by a
court decision, statute, rule or otherwise, the remainder of this Agreement
shall not be affected thereby. This Agreement shall be binding upon and shall
inure to the benefit of the parties hereto and their respective successors.
11. NOTICE: Any notice, advice or report to be given pursuant to this
Agreement shall be deemed sufficient if delivered or mailed by registered,
certified or overnight mail, postage prepaid addressed by the party giving
notice to the other party at the last address furnished by the other party:
To the Adviser at: SEI Financial Management
Corporation
680 East Swedesford Road
Wayne, PA 19087
Attention: Legal Department
To the Sub-Adviser at:
12. ENTIRE AGREEMENT. This Agreement embodies the entire agreement and
understanding between the parties hereto, and supersedes all prior agreements
and understandings relating to this Agreement's subject matter. This Agreement
may be executed in any number of counterparts, each of which shall be deemed to
be an original, but such counterparts shall, together, constitute only one
instrument.
A copy of the Declaration of Trust of the Trust is on file with the Secretary
of State of the Commonwealth of Massachusetts, and notice is hereby given that
the obligations of this instrument are not binding upon any of the Trustees,
officers or shareholders of the Portfolio or the Trust.
Where the effect of a requirement of the 1940 Act reflected in any provision
of this Agreement is altered by a rule, regulation or order of the Commission,
whether of special or general application, such provision shall be deemed to
incorporate the effect of such rule, regulation or order.
B-5
<PAGE>
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their officers designated below as of the day and year first
written above.
SEI Financial Management Corporation
By: ____________________________________ By: _______________________________
Name: Name:
Title: Title:
B-6
<PAGE>
SCHEDULE A
TO THE
SUB-ADVISORY AGREEMENT
BETWEEN
SEI FINANCIAL MANAGEMENT CORPORATION
AND
Pursuant to Article 4, the Adviser shall pay the Sub-Adviser compensation at an
annual rate as follows:
<TABLE>
<S> <C>
Portfolio . %
</TABLE>
B-7
<PAGE>
SEI INSTITUTIONAL MANAGED TRUST
Large Cap Growth Portfolio
Special Meeting of the Shareholders
THIS PROXY IS SOLICITED BY THE BOARD OF TRUSTEES
AND WILL BE VOTED "FOR" THE PROPOSALS
UNLESS OTHERWISE INDICATED
The undersigned Shareholder(s) of the Large Cap Growth Portfolio (the
"Portfolio") of SEI Institutional Managed Trust (the "Trust") hereby appoint
David G. Lee and Robert B. Carroll, and each of them, as proxies of the
undersigned, with full power of substitution, to vote at a Special Meeting of
Shareholders of the Trust, to be held in the offices of SEI Financial Management
Corporation ("SFM"), 680 E. Swedesford Road, Wayne, Pennsylvania 19087-1658, on
Friday, June 16, 1995 at 10:00 a.m., and at any and all adjournments thereof,
upon all shares of beneficial interest of said Trust in respect of which the
undersigned will be entitled to vote, with all powers the undersigned would
possess if personally present, and especially to vote with respect to:
THE BOARD OF TRUSTEES OF THE TRUST RECOMMENDS THAT SHAREHOLDERS VOTE "FOR" THE
APPROVAL OF THE FOLLOWING PROPOSALS:
If you wish to vote "For" or "Against" all of the Proposals relating to your
shares of the Portfolio of the Trust, or if you wish to "Abstain" from voting on
each such Proposal, please fill out the box below:
=======================================================================
The proxies are authorized to vote upon all of the Proposals relating
to the Large Cap Growth Portfolio of the Trust.
___For ___Against ___Abstain
=======================================================================
If you complete the box above, you do not need to vote on the individual
Proposals listed below. If you complete both the box and the Proposals below,
the proxies will use the voting instructions indicated below for each Proposal.
PROPOSAL 1. Proposal to combine the Portfolio's fundamental limitation
concerning diversification with the Portfolio's fundamental
limitation concerning the acquisition of more than 10% of the
outstanding voting securities of any one issuer, and to amend
certain other language.
____For ____Against ____Abstain
<PAGE>
PROPOSAL 2. Proposal to amend the Portfolio's fundamental limitation
concerning borrowing.
____For ____Against ____Abstain
PROPOSAL 3. Proposal to amend the Portfolio's fundamental limitation
concerning making loans.
____For ____Against ____Abstain
PROPOSAL 4. Proposal to reclassify the Portfolio's fundamental limitation
concerning pledging assets as non-fundamental, and to amend
certain language.
____For ____Against ____Abstain
PROPOSAL 5. Proposal to reclassify the Portfolio's fundamental limitation
concerning investment in securities for the purpose of exercising
control as non-fundamental.
____For ____Against ____Abstain
PROPOSAL 6. Proposal to amend the Portfolio's fundamental limitation
concerning investment in real estate and commodities.
____For ____Against ____Abstain
PROPOSAL 7. Proposal to reclassify the Portfolio's fundamental limitation
concerning short sales and margins sales as non-fundamental, and
to amend certain language.
____For ____Against ____Abstain
PROPOSAL 8. Proposal to reclassify the Portfolio's fundamental limitation
concerning investment in securities of investment companies as
non-fundamental, and to amend certain language.
2
<PAGE>
____For ____Against ____Abstain
PROPOSAL 9. Proposal to amend the Portfolio's fundamental limitation
concerning the issuance of senior securities.
____For ____Against ____Abstain
PROPOSAL 10. Proposal to reclassify the Portfolio's fundamental limitation
concerning investment in securities of an issuer whose securities
are owned by officers and trustees of the Trust as non-
fundamental.
____For ____Against ____Abstain
PROPOSAL 11. Proposal to reclassify the Portfolio's fundamental limitation
concerning investment of more than 5% of the total assets in
securities of companies with less than three years of operating
history as non-fundamental.
____For ____Against ____Abstain
PROPOSAL 12. Proposal to eliminate the Portfolio's fundamental limitation
concerning investment in warrants, puts, calls, straddles,
spreads or combinations thereof.
____For ____Against ____Abstain
PROPOSAL 27. In their discretion, the proxies are authorized to vote upon such
other business as may properly come before the meeting.
____For ____Against ____Abstain
This proxy, when properly executed, will be voted in the manner directed herein
by the undersigned Shareholder. Receipt of Notice of Special Meeting and Proxy
Statement is hereby acknowledged.
Dated:_________________, 1995 ____________________________
Signature of Shareholder
3
<PAGE>
____________________________
Signature (Joint owners)
Please sign name or names exactly as printed above to authorize the voting of
your shares as indicated above. Where shares are registered with joint owners,
all joint owners should sign. When signing as attorney, executor,
administrator, trustee or guardian, please give full title as such. If a
corporation, please sign in full corporate name by President or other authorized
officer and give your full title. If a partnership, please sign in partnership
name by authorized person.
If no direction is given when the duly executed proxy is returned, such shares
will be voted in accordance with the recommendations of the Board of Trustees
FOR the Proposals.
PLEASE COMPLETE, SIGN, DATE AND RETURN THIS PROXY PROMPTLY USING THE ENCLOSED
ENVELOPE.
4
<PAGE>
SEI INSTITUTIONAL MANAGED TRUST
Large Cap Value Portfolio
Special Meeting of the Shareholders
THIS PROXY IS SOLICITED BY THE BOARD OF TRUSTEES
AND WILL BE VOTED "FOR" THE PROPOSALS
UNLESS OTHERWISE INDICATED
The undersigned Shareholder(s) of the Large Cap Value Portfolio (the
"Portfolio") of SEI Institutional Managed Trust (the "Trust") hereby appoint
David G. Lee and Robert B. Carroll, and each of them, as proxies of the
undersigned, with full power of substitution, to vote at a Special Meeting of
Shareholders of the Trust, to be held in the offices of SEI Financial Management
Corporation ("SFM"), 680 E. Swedesford Road, Wayne, Pennsylvania 19087-1658, on
Friday, June 16, 1995 at 10:00 a.m., and at any and all adjournments thereof,
upon all shares of beneficial interest of said Trust in respect of which the
undersigned will be entitled to vote, with all powers the undersigned would
possess if personally present, and especially to vote with respect to:
THE BOARD OF TRUSTEES OF THE TRUST RECOMMENDS THAT SHAREHOLDERS VOTE "FOR" THE
APPROVAL OF THE FOLLOWING PROPOSALS:
If you wish to vote "For" or "Against" all of the Proposals relating to your
shares of the Portfolio of the Trust, or if you wish to "Abstain" from voting on
each such Proposal, please fill out the box below:
The proxies are authorized to vote upon all of the Proposals relating
to the Large Cap Value Portfolio of the Trust.
___For ___Against ___Abstain
If you complete the box above, you do not need to vote on the individual
Proposals listed below. If you complete both the box and the Proposals below,
the proxies will use the voting instructions indicated below for each Proposal.
PROPOSAL 1. Proposal to combine the Portfolio's fundamental limitation
concerning diversification with the Portfolio's fundamental
limitation concerning the acquisition of more than 10% of the
outstanding voting securities of any one issuer, and to amend
certain other language.
____For ____Against ____Abstain
5
<PAGE>
PROPOSAL 2. Proposal to amend the Portfolio's fundamental limitation
concerning borrowing.
____For ____Against ____Abstain
PROPOSAL 3. Proposal to amend the Portfolio's fundamental limitation
concerning making loans.
____For ____Against ____Abstain
PROPOSAL 4. Proposal to reclassify the Portfolio's fundamental limitation
concerning pledging assets as non-fundamental, and to amend
certain language.
____For ____Against ____Abstain
PROPOSAL 5. Proposal to reclassify the Portfolio's fundamental limitation
concerning investment in securities for the purpose of exercising
control as non-fundamental.
____For ____Against ____Abstain
PROPOSAL 6. Proposal to amend the Portfolio's fundamental limitation
concerning investment in real estate and commodities.
____For ____Against ____Abstain
PROPOSAL 7. Proposal to reclassify the Portfolio's fundamental limitation
concerning short sales and margins sales as non-fundamental, and
to amend certain language.
____For ____Against ____Abstain
PROPOSAL 8. Proposal to reclassify the Portfolio's fundamental limitation
concerning investment in securities of investment companies as
non-fundamental, and to amend certain language.
____For ____Against ____Abstain
6
<PAGE>
PROPOSAL 9. Proposal to amend the Portfolio's fundamental limitation
concerning the issuance of senior securities.
____For ____Against ____Abstain
PROPOSAL 10. Proposal to reclassify the Portfolio's fundamental limitation
concerning investment in securities of an issuer whose securities
are owned by officers and trustees of the Trust as non-
fundamental.
____For ____Against ____Abstain
PROPOSAL 11. Proposal to reclassify the Portfolio's fundamental limitation
concerning investment of more than 5% of the total assets in
securities of companies with less than three years of operating
history as non-fundamental.
____For ____Against ____Abstain
PROPOSAL 12. Proposal to eliminate the Portfolio's fundamental limitation
concerning investment in warrants, puts, calls, straddles,
spreads or combinations thereof.
____For ____Against ____Abstain
PROPOSAL 27. In their discretion, the proxies are authorized to vote upon such
other business as may properly come before the meeting.
____For ____Against ____Abstain
This proxy, when properly executed, will be voted in the manner directed herein
by the undersigned Shareholder. Receipt of Notice of Special Meeting and Proxy
Statement is hereby acknowledged.
Dated:_________________, 1995 ____________________________
Signature of Shareholder
____________________________
Signature (Joint owners)
7
<PAGE>
Please sign name or names exactly as printed above to authorize the voting of
your shares as indicated above. Where shares are registered with joint owners,
all joint owners should sign. When signing as attorney, executor,
administrator, trustee or guardian, please give full title as such. If a
corporation, please sign in full corporate name by President or other authorized
officer and give your full title. If a partnership, please sign in partnership
name - by authorized person.
If no direction is given when the duly executed proxy is returned, such shares
will be voted in accordance with the recommendations of the Board of Trustees
FOR the Proposals.
PLEASE COMPLETE, SIGN, DATE AND RETURN THIS PROXY PROMPTLY USING THE ENCLOSED
ENVELOPE.
8
<PAGE>
SEI INSTITUTIONAL MANAGED TRUST
Capital Growth Portfolio
Special Meeting of the Shareholders
THIS PROXY IS SOLICITED BY THE BOARD OF TRUSTEES
AND WILL BE VOTED "FOR" THE PROPOSALS
UNLESS OTHERWISE INDICATED
The undersigned Shareholder(s) of the Capital Growth Portfolio (the "Portfolio")
of SEI Institutional Managed Trust (the "Trust") hereby appoint David G. Lee and
Robert B. Carroll, and each of them, as proxies of the undersigned, with full
power of substitution, to vote at a Special Meeting of Shareholders of the
Trust, to be held in the offices of SEI Financial Management Corporation
("SFM"), 680 E. Swedesford Road, Wayne, Pennsylvania 19087-1658, on Friday,
June 16, 1995 at 10:00 a.m., and at any and all adjournments thereof, upon all
shares of beneficial interest of said Trust in respect of which the undersigned
will be entitled to vote, with all powers the undersigned would possess if
personally present, and especially to vote with respect to:
THE BOARD OF TRUSTEES OF THE TRUST RECOMMENDS THAT SHAREHOLDERS VOTE "FOR" THE
APPROVAL OF THE FOLLOWING PROPOSALS:
If you wish to vote "For" or "Against" all of the Proposals relating to your
shares of the Portfolio of the Trust, or if you wish to "Abstain" from voting on
each such Proposal, please fill out the box below:
The proxies are authorized to vote upon all of the Proposals relating
to the Capital Growth Portfolio of the Trust.
___For ___Against ___Abstain
If you complete the box above, you do not need to vote on the individual
Proposals listed below. If you complete both the box and the Proposals below,
the proxies will use the voting instructions indicated below for each Proposal.
PROPOSAL 1. Proposal to combine the Portfolio's fundamental limitation
concerning diversification with the Portfolio's fundamental
limitation concerning the acquisition of more than 10% of the
outstanding voting securities of any one issuer, and to amend
certain language.
____For ____Against ____Abstain
<PAGE>
PROPOSAL 2. Proposal to amend the Portfolio's fundamental limitation
concerning borrowing.
____For ____Against ____Abstain
PROPOSAL 3. Proposal to amend the Portfolio's fundamental limitation
concerning making loans.
____For ____Against ____Abstain
PROPOSAL 4. Proposal to reclassify the Portfolio's fundamental limitation
concerning pledging assets as non-fundamental, and to amend
certain language.
____For ____Against ____Abstain
PROPOSAL 5. Proposal to reclassify the Portfolio's fundamental limitation
concerning investment in securities for the purpose of exercising
control as non-fundamental.
____For ____Against ____Abstain
PROPOSAL 6. Proposal to amend the Portfolio's fundamental limitation
concerning investment in real estate and commodities.
____For ____Against ____Abstain
PROPOSAL 7. Proposal to reclassify the Portfolio's fundamental limitation
concerning short sales and margins sales as non-fundamental, and
to amend certain language.
____For ____Against ____Abstain
PROPOSAL 8. Proposal to reclassify the Portfolio's fundamental limitation
concerning investment in securities of investment companies as
non-fundamental, and to amend certain language.
____For ____Against ____Abstain
2
<PAGE>
PROPOSAL 9. Proposal to amend the Portfolio's fundamental limitation
concerning the issuance of senior securities.
____For ____Against ____Abstain
PROPOSAL 10. Proposal to reclassify the Portfolio's fundamental limitation
concerning investment in securities of an issuer whose securities
are owned by officers and trustees of the Trust as non-
fundamental.
____For ____Against ____Abstain
PROPOSAL 11. Proposal to reclassify the Portfolio's fundamental limitation
concerning investment of more than 5% of the total assets in
securities of companies with less than three years of operating
history as non-fundamental.
____For ____Against ____Abstain
PROPOSAL 12. Proposal to approve eliminate the Portfolio's fundamental
limitation concerning investment in warrants, puts, calls,
straddles, spreads or combinations thereof.
____For ____Against ____Abstain
PROPOSAL 27. In their discretion, the proxies are authorized to vote upon such
other business as may properly come before the meeting.
____For ____Against ____Abstain
This proxy, when properly executed, will be voted in the manner directed herein
by the undersigned Shareholder. Receipt of Notice of Special Meeting and Proxy
Statement is hereby acknowledged.
Dated:_________________, 1995 ____________________________
Signature of Shareholder
____________________________
Signature (Joint owners)
3
<PAGE>
Please sign name or names exactly as printed above to authorize the voting of
your shares as indicated above. Where shares are registered with joint owners,
all joint owners should sign. When signing as attorney, executor,
administrator, trustee or guardian, please give full title as such. If a
corporation, please sign in full corporate name by President or other authorized
officer and give your full title. If a partnership, please sign in partnership
name - by authorized person.
If no direction is given when the duly executed proxy is returned, such shares
will be voted in accordance with the recommendations of the Board of Trustees
FOR the Proposals.
PLEASE COMPLETE, SIGN, DATE AND RETURN THIS PROXY PROMPTLY USING THE ENCLOSED
ENVELOPE.
4
<PAGE>
SEI INSTITUTIONAL MANAGED TRUST
Capital Appreciation Portfolio
Special Meeting of the Shareholders
THIS PROXY IS SOLICITED BY THE BOARD OF TRUSTEES
AND WILL BE VOTED "FOR" THE PROPOSALS
UNLESS OTHERWISE INDICATED
The undersigned Shareholder(s) of the Capital Appreciation Portfolio (the
"Portfolio") of SEI Institutional Managed Trust (the "Trust") hereby appoint
David G. Lee and Robert B. Carroll, and each of them, as proxies of the
undersigned, with full power of substitution, to vote at a Special Meeting of
Shareholders of the Trust, to be held in the offices of SEI Financial Management
Corporation ("SFM"), 680 E. Swedesford Road, Wayne, Pennsylvania 19087-1658, on
Friday, June 16, 1995 at 10:00 a.m., and at any and all adjournments thereof,
upon all shares of beneficial interest of said Trust in respect of which the
undersigned will be entitled to vote, with all powers the undersigned would
possess if personally present, and especially to vote with respect to:
THE BOARD OF TRUSTEES OF THE TRUST RECOMMENDS THAT SHAREHOLDERS VOTE "FOR" THE
APPROVAL OF THE FOLLOWING PROPOSALS:
If you wish to vote "For" or "Against" all of the Proposals relating to your
shares of the Portfolio of the Trust, or if you wish to "Abstain" from voting on
each such Proposal, please fill out the box below:
The proxies are authorized to vote upon all of the Proposals relating
to the Capital Appreciation Portfolio of the Trust.
___For ___Against ___Abstain
If you complete the box above, you do not need to vote on the individual
Proposals listed below. If you complete both the box and the Proposals below,
the proxies will use the voting instructions indicated below for each Proposal.
PROPOSAL 1. Proposal to combine the Portfolio's fundamental limitation
concerning diversification with the Portfolio's fundamental
limitation concerning the acquisition of more than 10% of the
outstanding voting securities of any one issuer, and to amend
certain other language.
____For ____Against ____Abstain
<PAGE>
PROPOSAL 2. Proposal to amend the Portfolio's fundamental limitation
concerning borrowing.
____For ____Against ____Abstain
PROPOSAL 3. Proposal to amend the Portfolio's fundamental limitation
concerning making loans.
____For ____Against ____Abstain
PROPOSAL 4. Proposal to reclassify the Portfolio's fundamental limitation
concerning pledging assets as non-fundamental, and to amend
certain language.
____For ____Against ____Abstain
PROPOSAL 5. Proposal to reclassify the Portfolio's fundamental limitation
concerning investment in securities for the purpose of exercising
control as non-fundamental.
____For ____Against ____Abstain
PROPOSAL 6. Proposal to amend the Portfolio's fundamental limitation
concerning investment in real estate and commodities.
____For ____Against ____Abstain
PROPOSAL 7. Proposal to reclassify the Portfolio's fundamental limitation
concerning short sales and margins sales as non-fundamental, and
to amend certain language.
____For ____Against ____Abstain
PROPOSAL 8. Proposal to reclassify the Portfolio's fundamental limitation
concerning investment in securities of investment companies as
non-fundamental, and to amend certain language.
____For ____Against ____Abstain
2
<PAGE>
PROPOSAL 9. Proposal to amend the Portfolio's fundamental limitation
concerning the issuance of senior securities.
____For ____Against ____Abstain
PROPOSAL 10. Proposal to reclassify the Portfolio's fundamental limitation
concerning investment in securities of an issuer whose securities
are owned by officers and trustees of the Trust as non-
fundamental.
____For ____Against ____Abstain
PROPOSAL 11. Proposal to reclassify the Portfolio's fundamental limitation
concerning investment of more than 5% of the total assets in
securities of companies with less than three years of operating
history as non-fundamental.
____For ____Against ____Abstain
PROPOSAL 12. Proposal to eliminate the Portfolio's fundamental limitation
concerning investment in warrants, puts, calls, straddles,
spreads or combinations thereof.
____For ____Against ____Abstain
PROPOSAL 15. Proposal to authorize the Board of Trustees to appoint additional
or replacement investment sub-advisers for the Portfolio without
seeking approval of the Portfolio's Shareholders of the contracts
pursuant to which such sub-advisers serve.
____For ____Against ____Abstain
PROPOSAL 19. Proposal to approve the selection of SFM as the Investment
Adviser for the Trust, as described in the attached Proxy
Statement, and to approve the adoption of the Investment Advisory
Agreement between the Trust, on behalf of the Portfolio, and SFM.
____For ____Against ____Abstain
3
<PAGE>
PROPOSAL 23. Proposal to approve the selection of SunBank Capital Management,
N.A. ("SunBank") as an Investment Sub-Adviser for the Portfolio,
as described in the attached Proxy Statement, and to approve the
adoption of the Investment Sub-Advisory Agreement between SFM and
SunBank.
____For ____Against ____Abstain
PROPOSAL 27. In their discretion, the proxies are authorized to vote upon such
other business as may properly come before the meeting.
____For ____Against ____Abstain
This proxy, when properly executed, will be voted in the manner directed herein
by the undersigned Shareholder. Receipt of Notice of Special Meeting and Proxy
Statement is hereby acknowledged.
Dated:_________________, 1995 ____________________________
Signature of Shareholder
____________________________
Signature (Joint owners)
Please sign name or names exactly as printed above to authorize the voting of
your shares as indicated above. Where shares are registered with joint owners,
all joint owners should sign. When signing as attorney, executor,
administrator, trustee or guardian, please give full title as such. If a
corporation, please sign in full corporate name by President or other authorized
officer and give your full title. If a partnership, please sign in partnership
name - by authorized person.
If no direction is given when the duly executed proxy is returned, such shares
will be voted in accordance with the recommendations of the Board of Trustees
FOR the Proposals.
PLEASE COMPLETE, SIGN, DATE AND RETURN THIS PROXY PROMPTLY USING THE ENCLOSED
ENVELOPE.
4
<PAGE>
SEI INSTITUTIONAL MANAGED TRUST
Equity Income Portfolio
Special Meeting of the Shareholders
THIS PROXY IS SOLICITED BY THE BOARD OF TRUSTEES
AND WILL BE VOTED "FOR" THE PROPOSALS
UNLESS OTHERWISE INDICATED
The undersigned Shareholder(s) of the Equity Income Portfolio (the "Portfolio")
of SEI Institutional Managed Trust (the "Trust") hereby appoint David G. Lee and
Robert B. Carroll, and each of them, as proxies of the undersigned, with full
power of substitution, to vote at a Special Meeting of Shareholders of the
Trust, to be held in the offices of SEI Financial Management Corporation
("SFM"), 680 E. Swedesford Road, Wayne, Pennsylvania 19087-1658, on Friday,
June 16, 1995 at 10:00 a.m., and at any and all adjournments thereof, upon all
shares of beneficial interest of said Trust in respect of which the undersigned
will be entitled to vote, with all powers the undersigned would possess if
personally present, and especially to vote with respect to:
THE BOARD OF TRUSTEES OF THE TRUST RECOMMENDS THAT SHAREHOLDERS VOTE "FOR" THE
APPROVAL OF THE FOLLOWING PROPOSALS:
If you wish to vote "For" or "Against" all of the Proposals relating to your
shares of the Portfolio of the Trust, or if you wish to "Abstain" from voting on
each such Proposal, please fill out the box below:
=======================================================================
The proxies are authorized to vote upon all of the Proposals relating
to the Equity Income Portfolio of the Trust.
___For ___Against ___Abstain
=======================================================================
If you complete the box above, you do not need to vote on the individual
Proposals listed below. If you complete both the box and the Proposals below,
the proxies will use the voting instructions indicated below for each Proposal.
PROPOSAL 1. Proposal to combine the Portfolio's fundamental limitation
concerning diversification with the Portfolio's fundamental
limitation concerning the acquisition of more than 10% of the
outstanding voting securities of any one issuer, and to amend
certain other language.
____For ____Against ____Abstain
<PAGE>
PROPOSAL 2. Proposal to amend the Portfolio's fundamental limitation
concerning borrowing.
____For ____Against ____Abstain
PROPOSAL 3. Proposal to amend the Portfolio's fundamental limitation
concerning making loans.
____For ____Against ____Abstain
PROPOSAL 4. Proposal to reclassify the Portfolio's fundamental limitation
concerning pledging assets as non-fundamental, and to amend
certain language.
____For ____Against ____Abstain
PROPOSAL 5. Proposal to reclassify the Portfolio's fundamental limitation
concerning investment in securities for the purpose of exercising
control as non-fundamental.
____For ____Against ____Abstain
PROPOSAL 6. Proposal to amend the Portfolio's fundamental limitation
concerning investment in real estate and commodities.
____For ____Against ____Abstain
PROPOSAL 7. Proposal to reclassify the Portfolio's fundamental limitation
concerning short sales and margins sales as non-fundamental, and
to amend certain language.
____For ____Against ____Abstain
PROPOSAL 8. Proposal to reclassify the Portfolio's fundamental limitation
concerning investment in securities of investment companies as
non-fundamental, and to amend certain language.
____For ____Against ____Abstain
2
<PAGE>
PROPOSAL 9. Proposal to amend the Portfolio's fundamental limitation
concerning the issuance of senior securities.
____For ____Against ____Abstain
PROPOSAL 10. Proposal to reclassify the Portfolio's fundamental limitation
concerning investment in securities of an issuer whose securities
are owned by officers and trustees of the Trust as non-
fundamental.
____For ____Against ____Abstain
PROPOSAL 11. Proposal to reclassify the Portfolio's fundamental limitation
concerning investment of more than 5% of the total assets in
securities of companies with less than three years of operating
history as non-fundamental.
____For ____Against ____Abstain
PROPOSAL 12. Proposal to reclassify the Portfolio's fundamental limitation
concerning investment in interests in oil, gas, or other minerals
as non-fundamental.
____For ____Against ____Abstain
PROPOSAL 16. Proposal to authorize the Board of Trustees to appoint additional
or replacement investment sub-advisers for the Portfolio without
seeking approval of the Portfolio's Shareholders of the contracts
pursuant to which such sub-advisers serve.
____For ____Against ____Abstain
PROPOSAL 20. Proposal to approve the selection of SFM as the Investment
Adviser for the Trust, as described in the attached Proxy
Statement, and to approve the adoption of the Investment Advisory
Agreement between the Trust, on behalf of the Portfolio, and SFM.
____For ____Against ____Abstain
3
<PAGE>
PROPOSAL 24. Proposal to approve the selection of Merus Capital Management
("MCM") as an Investment Sub-Adviser for the Portfolio, as
described in the attached Proxy Statement, and to approve the
adoption of the Investment Sub-Advisory Agreement between SFM and
MCM.
____For ____Against ____Abstain
PROPOSAL 27. In their discretion, the proxies are authorized to vote upon such
other business as may properly come before the meeting.
____For ____Against ____Abstain
This proxy, when properly executed, will be voted in the manner directed herein
by the undersigned Shareholder. Receipt of Notice of Special Meeting and Proxy
Statement is hereby acknowledged.
Dated:_________________, 1995 ____________________________
Signature of Shareholder
____________________________
Signature (Joint owners)
Please sign name or names exactly as printed above to authorize the voting of
your shares as indicated above. Where shares are registered with joint owners,
all joint owners should sign. When signing as attorney, executor,
administrator, trustee or guardian, please give full title as such. If a
corporation, please sign in full corporate name by President or other authorized
officer and give your full title. If a partnership, please sign in partnership
name - by authorized person.
If no direction is given when the duly executed proxy is returned, such shares
will be voted in accordance with the recommendations of the Board of Trustees
FOR the Proposals.
PLEASE COMPLETE, SIGN, DATE AND RETURN THIS PROXY PROMPTLY USING THE ENCLOSED
ENVELOPE.
4
<PAGE>
SEI INSTITUTIONAL MANAGED TRUST
Balanced Portfolio
Special Meeting of the Shareholders
THIS PROXY IS SOLICITED BY THE BOARD OF TRUSTEES
AND WILL BE VOTED "FOR" THE PROPOSALS
UNLESS OTHERWISE INDICATED
The undersigned Shareholder(s) of the Balanced Portfolio (the "Portfolio") of
SEI Institutional Managed Trust (the "Trust") hereby appoint David G. Lee and
Robert B. Carroll, and each of them, as proxies of the undersigned, with full
power of substitution, to vote at a Special Meeting of Shareholders of the
Trust, to be held in the offices of SEI Financial Management Corporation
("SFM"), 680 E. Swedesford Road, Wayne, Pennsylvania 19087-1658, on Friday,
June 16, 1995 at 10:00 a.m., and at any and all adjournments thereof, upon all
shares of beneficial interest of said Trust in respect of which the undersigned
will be entitled to vote, with all powers the undersigned would possess if
personally present, and especially to vote with respect to:
THE BOARD OF TRUSTEES OF THE TRUST RECOMMENDS THAT SHAREHOLDERS VOTE "FOR" THE
APPROVAL OF THE FOLLOWING PROPOSALS:
If you wish to vote "For" or "Against" all of the Proposals relating to your
shares of the Portfolio of the Trust, or if you wish to "Abstain" from voting on
each such Proposal, please fill out the box below:
The proxies are authorized to vote upon all of the Proposals relating
to the Balanced Portfolio of the Trust.
___For ___Against ___Abstain
If you complete the box above, you do not need to vote on the individual
Proposals listed below. If you complete both the box and the Proposals below,
the proxies will use the voting instructions indicated below for each Proposal.
PROPOSAL 1. Proposal to combine the Portfolio's fundamental limitation
concerning diversification with the Portfolio's fundamental
limitation concerning the acquisition of more than 10% of the
outstanding voting securities of any one issuer, and to amend
certain other language.
____For ____Against ____Abstain
<PAGE>
PROPOSAL 2. Proposal to amend the Portfolio's fundamental limitation
concerning borrowing.
____For ____Against ____Abstain
PROPOSAL 3. Proposal to amend the Portfolio's fundamental limitation
concerning making loans.
____For ____Against ____Abstain
PROPOSAL 4. Proposal to reclassify the Portfolio's fundamental limitation
concerning pledging assets as non-fundamental, and to amend
certain language.
____For ____Against ____Abstain
PROPOSAL 5. Proposal to reclassify the Portfolio's fundamental limitation
concerning investment in securities for the purpose of exercising
control as non-fundamental.
____For ____Against ____Abstain
PROPOSAL 6. Proposal to amend the Portfolio's fundamental limitation
concerning investment in real estate and commodities.
____For ____Against ____Abstain
PROPOSAL 7. Proposal to reclassify the Portfolio's fundamental limitation
concerning short sales and margins sales as non-fundamental, and
to amend certain language.
____For ____Against ____Abstain
PROPOSAL 8. Proposal to reclassify the Portfolio's fundamental limitation
concerning investment in securities of investment companies as
non-fundamental, and to amend certain language.
____For ____Against ____Abstain
2
<PAGE>
PROPOSAL 9. Proposal to amend the Portfolio's fundamental limitation
concerning the issuance of senior securities.
____For ____Against ____Abstain
PROPOSAL 10. Proposal to reclassify the Portfolio's fundamental limitation
concerning investment in securities of an issuer whose securities
are owned by officers and trustees of the Trust as non-
fundamental.
____For ____Against ____Abstain
PROPOSAL 11. Proposal to reclassify the Portfolio's fundamental limitation
concerning investment of more than 5% of the total assets in
securities of companies with less than three years of operating
history as non-fundamental.
____For ____Against ____Abstain
PROPOSAL 12. Proposal to eliminate the Portfolio's fundamental limitation
concerning investment in warrants, puts, calls, straddles,
spreads or combinations thereof.
____For ____Against ____Abstain
PROPOSAL 17. Proposal to authorize the Board of Trustees to appoint additional
or replacement investment sub-advisers for the Portfolio without
seeking approval of the Portfolio's Shareholders of the contracts
pursuant to which such sub-advisers serve.
____For ____Against ____Abstain
PROPOSAL 21. Proposal to approve the selection of SFM as the Investment
Adviser for the Trust, as described in the attached Proxy
Statement, and to approve the adoption of the Investment Advisory
Agreement between the Trust, on behalf of the Portfolio, and SFM.
3
<PAGE>
____For ____Against ____Abstain
PROPOSAL 25. Proposal to approve the selection of SunBank Capital Management,
N.A. ("SunBank") as an Investment Sub-Adviser for the Portfolio,
as described in the attached Proxy Statement, and to approve the
adoption of the Investment Sub-Advisory Agreement between SFM and
SunBank.
____For ____Against ____Abstain
PROPOSAL 27. In their discretion, the proxies are authorized to vote upon such
other business as may properly come before the meeting.
____For ____Against ____Abstain
This proxy, when properly executed, will be voted in the manner directed herein
by the undersigned Shareholder. Receipt of Notice of Special Meeting and Proxy
Statement is hereby acknowledged.
Dated:_________________, 1995 ____________________________
Signature of Shareholder
____________________________
Signature (Joint owners)
Please sign name or names exactly as printed above to authorize the voting of
your shares as indicated above. Where shares are registered with joint owners,
all joint owners should sign. When signing as attorney, executor,
administrator, trustee or guardian, please give full title as such. If a
corporation, please sign in full corporate name by President or other authorized
officer and give your full title. If a partnership, please sign in partnership
name - by authorized person.
If no direction is given when the duly executed proxy is returned, such shares
will be voted in accordance with the recommendations of the Board of Trustees
FOR the Proposals.
PLEASE COMPLETE, SIGN, DATE AND RETURN THIS PROXY PROMPTLY USING THE ENCLOSED
ENVELOPE.
4
<PAGE>
SEI INSTITUTIONAL MANAGED TRUST
Bond Portfolio
Special Meeting of the Shareholders
THIS PROXY IS SOLICITED BY THE BOARD OF TRUSTEES
AND WILL BE VOTED "FOR" THE PROPOSALS
UNLESS OTHERWISE INDICATED
The undersigned Shareholder(s) of the Bond Portfolio (the "Portfolio") of SEI
Institutional Managed Trust (the "Trust") hereby appoint David G. Lee and Robert
B. Carroll, and each of them, as proxies of the undersigned, with full power of
substitution, to vote at a Special Meeting of Shareholders of the Trust, to be
held in the offices of SEI Financial Management Corporation ("SFM"), 680 E.
Swedesford Road, Wayne, Pennsylvania 19087-1658, on Friday, June 16, 1995 at
10:00 a.m., and at any and all adjournments thereof, upon all shares of
beneficial interest of said Trust in respect of which the undersigned will be
entitled to vote, with all powers the undersigned would possess if personally
present, and especially to vote with respect to:
THE BOARD OF TRUSTEES OF THE TRUST RECOMMENDS THAT SHAREHOLDERS VOTE "FOR" THE
APPROVAL OF THE FOLLOWING PROPOSALS:
If you wish to vote "For" or "Against" all of the Proposals relating to your
shares of the Portfolio of the Trust, or if you wish to "Abstain" from voting on
each such Proposal, please fill out the box below:
The proxies are authorized to vote upon all of the Proposals relating
to the Bond Portfolio of the Trust.
___For ___Against ___Abstain
If you complete the box above, you do not need to vote on the individual
Proposals listed below. If you complete both the box and the Proposals below,
the proxies will use the voting instructions indicated below for each Proposal.
PROPOSAL 1. Proposal to combine the Portfolio's fundamental limitation
concerning diversification with the Portfolio's fundamental
limitation concerning the acquisition of more than 10% of the
outstanding voting securities of any one issuer, and to amend
certain other language.
____For ____Against ____Abstain
<PAGE>
PROPOSAL 2. Proposal to amend the Portfolio's fundamental limitation
concerning borrowing.
____For ____Against ____Abstain
PROPOSAL 3. Proposal to amend the Portfolio's fundamental limitation
concerning making loans.
____For ____Against ____Abstain
PROPOSAL 4. Proposal to reclassify the Portfolio's fundamental limitation
concerning pledging assets as non-fundamental, and to amend
certain language.
____For ____Against ____Abstain
PROPOSAL 5. Proposal to reclassify the Portfolio's fundamental limitation
concerning investment in securities for the purpose of exercising
control as non-fundamental.
____For ____Against ____Abstain
PROPOSAL 6. Proposal to amend the Portfolio's fundamental limitation
concerning investment in real estate and commodities.
____For ____Against ____Abstain
PROPOSAL 7. Proposal to reclassify the Portfolio's fundamental limitation
concerning short sales and margins sales as non-fundamental, and
to amend certain language.
____For ____Against ____Abstain
PROPOSAL 8. Proposal to reclassify the Portfolio's fundamental limitation
concerning investment in securities of investment companies as
non-fundamental, and to amend certain language.
____For ____Against ____Abstain
2
<PAGE>
PROPOSAL 9. Proposal to amend the Portfolio's fundamental limitation
concerning the issuance of senior securities.
____For ____Against ____Abstain
PROPOSAL 10. Proposal to reclassify the Portfolio's fundamental limitation
concerning investment in securities of an issuer whose securities
are owned by officers and trustees of the Trust as non-
fundamental.
____For ____Against ____Abstain
PROPOSAL 11. Proposal to reclassify the Portfolio's fundamental limitation
concerning investment of more than 5% of the total assets in
securities of companies with less than three years of operating
history as non-fundamental.
____For ____Against ____Abstain
PROPOSAL 12. Proposal to eliminate the Portfolio's fundamental limitation
concerning investment in warrants, puts, calls, straddles,
spreads or combinations thereof.
____For ____Against ____Abstain
PROPOSAL 13. Proposal to eliminate the Portfolio's fundamental limitation
concerning investment in convertible securities.
____For ____Against ____Abstain
PROPOSAL 14. Proposal to eliminate the Portfolio's fundamental limitation
concerning investment solely in securities listed as "appropriate
investments."
____For ____Against ____Abstain
PROPOSAL 18. Proposal to authorize the Board of Trustees to appoint additional
or replacement investment sub-advisers for the Portfolio without
seeking approval of the Portfolio's Shareholders of the contracts
pursuant to which such sub-advisers serve.
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____For ____Against ____Abstain
PROPOSAL 22. Proposal to approve the selection of SFM as the Investment
Adviser for the Trust, as described in the attached Proxy
Statement, and to approve the adoption of the Investment Advisory
Agreement between the Trust, on behalf of the Portfolio, and SFM.
____For ____Against ____Abstain
PROPOSAL 26. Proposal to approve the selection of Boatmen's Trust Company
("Boatmen's") as an Investment Sub-Adviser for the Portfolio, as
described in the attached Proxy Statement, and to approve the
adoption of the Investment Sub-Advisory Agreement between SFM and
Boatmen's.
____For ____Against ____Abstain
PROPOSAL 27. In their discretion, the proxies are authorized to vote upon such
other business as may properly come before the meeting.
____For ____Against ____Abstain
This proxy, when properly executed, will be voted in the manner directed herein
by the undersigned Shareholder. Receipt of Notice of Special Meeting and Proxy
Statement is hereby acknowledged.
Dated:_________________, 1995 ____________________________
Signature of Shareholder
____________________________
Signature (Joint owners)
Please sign name or names exactly as printed above to authorize the voting of
your shares as indicated above. Where shares are registered with joint owners,
all joint owners should sign. When signing as attorney, executor,
administrator, trustee or guardian, please give full title as such. If a
corporation, please sign in full corporate name by President or other authorized
officer and give your full title. If a partnership, please sign in partnership
name - by authorized person.
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If no direction is given when the duly executed proxy is returned, such shares
will be voted in accordance with the recommendations of the Board of Trustees
FOR the Proposals.
PLEASE COMPLETE, SIGN, DATE AND RETURN THIS PROXY PROMPTLY USING THE ENCLOSED
ENVELOPE.
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