<PAGE>
SEI INSTITUTIONAL MANAGED TRUST
LARGE CAP GROWTH PORTFOLIO
LARGE CAP VALUE PORTFOLIO
CAPITAL GROWTH PORTFOLIO
CAPITAL APPRECIATION PORTFOLIO
EQUITY INCOME PORTFOLIO
BALANCED PORTFOLIO
SMALL CAP GROWTH PORTFOLIO
SMALL CAP VALUE PORTFOLIO
MID-CAP PORTFOLIO
REAL ESTATE SECURITIES PORTFOLIO
SUPPLEMENT DATED NOVEMBER 14, 1995 TO
THE INSTITUTIONAL CLASS PROSPECTUS
DATED JANUARY 31, 1995
THIS SUPPLEMENT TO THE PROSPECTUS SUPERSEDES AND REPLACES ANY EXISTING
SUPPLEMENTS TO THE PROSPECTUS. THIS SUPPLEMENT PROVIDES NEW AND ADDITIONAL
INFORMATION BEYOND THAT CONTAINED IN THE PROSPECTUS AND SHOULD BE RETAINED AND
READ IN CONJUNCTION WITH SUCH PROSPECTUS.
________________________________
The Prospectus is hereby amended and supplemented by the addition of the
following unaudited financial information for the Large Cap Growth and Small Cap
Value Portfolios for the period ended March 31, 1995.
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS SEI INSTITUTIONAL MANAGED TRUST
(UNAUDITED)
For a Class A Share Outstanding Throughout the Period
LARGE CAP GROWTH SMALL CAP VALUE
PORTFOLIO PORTFOLIO
FOR THE PERIOD ENDED MARCH 31, FOR THE PERIOD ENDED MARCH 31,
1995(1) 1995(2)
<S> <C> <C>
Net Asset Value,
Beginning of Period................... $ 10.00 $ 10.00
Income from Investment Operations:
Net Investment Income................. 0.05 0.01
Net Realized and Unrealized Gains
on Securities........................ 0.76 0.50
Total from Investment Operations...... $ 0.81 $ 0.51
Less Distributions:
Dividends from Net Investment Income.. (0.02) ---
Total Distributions................... $ (0.02) $---
Net Asset Value, End of Period............ $ 10.79 $ 10.51
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C>
Total Return.............................. 32.43% 19.69%
Ratios/Supplemental Data:
Net Assets, End of Period (000)........... $131,957 $47,608
Ratio of Expenses to Average Net Assets... 0.85% 1.10%
Ratio of Expenses to Average Net Assets
(Excluding Waivers)...................... 0.85% 1.11%
Ratio of Net Investment Income to
Average Net Assets....................... 1.98% 0.81%
Ratio of Net Investment Income to
Average Net Assets (Excluding Waivers)... 1.98% 0.80%
Portfolio Turnover Rate................... 16% 3%
</TABLE>
(1) Large Cap Growth shares were offered beginning December 20, 1994.
All ratios for that period have been annualized.
(2) Small Cap Value shares were offered beginning December 20, 1994.
All ratios for that period have been annualized.
________________________________
Effective October 30, 1995, SunBank Capital Management, N.A., the
investment adviser or sub-adviser to Capital Growth, Capital
Appreciation and Balanced Portfolios or SEI Institutional Managed
Trust, changed its name to STI Capital Management, N.A. This
prospectus is hereby amended to reflect this name change.
________________________________
Effective December 6, 1995, Investment Advisers, Inc. will no longer
serve as investment sub-adviser to the Small Cap Growth Portfolio. The
assets of the Portfolio will be reallocated amongst the Portfolio's
four remaining sub-advisers.
_________________________________
Effective September 1, 1995, SEI Financial Management Corporation
removed the expense cap in place for the Large Cap Value Portfolio. In
connection with this change, the "Annual Operating Expenses" tables on
page 2 of the Prospectus are deleted and the following "Annual
Operating Expenses" tables are inserted:
ANNUAL OPERATING EXPENSES (as a percentage of average net assets) Class A
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
LARGE CAP LARGE CAP SMALL CAP SMALL CAP CAPITAL EQUITY
VALUE GROWTH VALUE GROWTH MID-CAP APPRECIATION INCOME
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
-------- --------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Management Fee/Advisory Fees
(after Fee waiver) 0.70% 0.70% (2) 0.98% (2) 0.99% (2) 0.55% (2) 0.75% (2) 0.73% (2)
12b-1 Fees (after fee waiver
and reimbursements) (3) 0.06% 0.07% 0.07% 0.06% 0.13% 0.05% 0.06%
Other Expenses (after 0.06% 0.08% 0.05% 0.05% 0.09% 0.04% 0.03%
reimbursements) (4)
Total Operating Expenses 0.82% 0.85% 1.10% 1.10% 0.77% 0.84% 0.82%
(after fee waiver) (5)
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
ANNUAL OPERATING EXPENSES (as a percentage of average net assets) Class A
- ------------------------------------------------------------------------------------------------------------------------------------
BALANCED CAPITAL GROWTH REAL ESTATE
PORTFOLIO PORTFOLIO(1) SECURITIES PORTFOLIO(1)
--------- ------------ -----------------------
</TABLE>
2
<PAGE>
<TABLE>
<S> <C> <C> <C>
Management Fee/Advisory Fees (after fee waiver) 0.59% (2) 0.00% (2) 0.85% (2)
12b-1 Fees (after fee waiver and reimbursements) (3) 0.11% 0.00% 0.06%
Other Expenses (after reimbursements) (4) 0.05% 0.00% 0.04%
- ---------------------------------------------------------------------------------------------------------------
Total Operating Expenses (after fee waiver) (5) 0.75% 0.00% 0.95%
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The Capital Growth and Real Estate Securities Portfolios offer only Class A
shares.
(2) SEI Financial Management Corporation ("SFM"), in its capacity as Manager
for each Portfolio, and certain of the investment advisers and sub-advisers
(collectively "advisers") have agreed to waive, on a voluntary basis, a
portion of their fees, and the management/advisory fees shown reflect these
voluntary waivers. Such fee waivers are voluntary and may be terminated at
any time in the sole discretion of each entity that has agreed to waive a
portion of its fee. Absent such fee waivers, management/advisory fees
would be: Large Cap Growth Portfolio, .75%; Small Cap Value Portfolio,
1.00%; Small Cap Growth Portfolio, 1.00%; Capital Appreciation Portfolio,
.75%; Equity Income Portfolio, .75%; Balanced Portfolio, .75%; Capital
Growth Portfolio, .50%; and Real Estate Securities Portfolio, .95%. In
addition, absent fee waivers, the restated management/advisory fees for the
Mid-Cap Portfolio would be .75%.
(3) The 12b-1 fee shown refers to each Portfolio's current 12b-1 budget for
reimbursement of expenses and with respect to the Capital Growth Portfolio,
after reimbursement by SFM. SFM reserves the right to terminate its
reimbursement at any time in its sole discretion. Absent such
reimbursement, the 12b-1 fee would be .01% for the Capital Growth
Portfolio. The maximum 12b-1 fees payable by Class A shares of each
Portfolio is .30%.
(4) Other Expenses for the Large Cap Growth and Small Cap Value Portfolios are
based on estimated amounts for the current fiscal year. Absent SFM's
reimbursement of its management fee, other expenses for the Capital Growth
Portfolio would be .03%. SFM reserves the right to terminate its
reimbursement at any time in its sole discretion.
(5) Absent the voluntary fee waivers described above, total operating expenses
for the Class A shares of the Portfolios would be: Large Cap Growth
Portfolio, .90%; Small Cap Value Portfolio, 1.12%; Small Cap Growth
Portfolio, 1.11%; Capital Appreciation Portfolio, .84%; Equity Income
Portfolio, .84%; Balanced Portfolio, .91%; Capital Growth Portfolio, .54%;
and Real Estate Securities Portfolio, 1.05%. In addition, absent such
voluntary fee waivers, the restated total operating expenses for the Mid-
Cap Portfolio would by .97%. Additional information may be found under
"The Advisers and Sub-Advisers" and "The Manager and Shareholder Servicing
Agent."
EXAMPLE
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------------
1 YR. 3 YRS. 5 YRS. 10 YRS.
----- ------ ------ -------
<S> <C> <C> <C> <C>
An investor in a Portfolio would pay the following expenses on $1,000 investment
assuming (1) 5% annual return and (2) redemption at the end of each time period:
Large Cap Value Portfolio $ 8.00 $26.00 $46.00 $101.00
Large Cap Growth Portfolio $ 9.00 $27.00 $ -- $ --
Small Cap Value Portfolio $11.00 $35.00 $ -- $ --
Small Cap Growth Portfolio $11.00 $35.00 $61.00 $134.00
Mid-Cap Portfolio $ 8.00 $25.00 $43.00 $ 95.00
Capital Appreciation Portfolio $ 9.00 $27.00 $47.00 $104.00
Equity Income Portfolio $ 8.00 $26.00 $46.00 $101.00
Balanced Portfolio $ 8.00 $24.00 $42.00 $ 93.00
Capital Growth Portfolio $ 0.00 $ 0.00 $ 0.00 $ 0.00
Real Estate Securities Portfolio $10.00 $30.00 $53.00 $117.00
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
THE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE
EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.
The purpose of the expense table and example is to assist the investor in
understanding the various costs and expenses that may be directly or indirectly
borne by investors in Class A shares of the Portfolios. The information set
forth in the foregoing table and example relates only to each Portfolio's Class
A shares. Certain Portfolios also offer ProVantage Funds shares, which are
subject to the same expenses except that ProVantage Funds shares bear different
distribution costs and additional transfer agent costs and sales loads. A
person who purchases shares through a financial institution may be charged
separate fees by that institution. Additional information may be found under
"The Manager and Shareholder Servicing Agent," "The Advisers and Sub-Advisers"
and "Distribution."
Long-term shareholders may eventually pay more than the economic equivalent of
the maximum front-end sales charges otherwise permitted by the Rules of Fair
Practice (the "Rules") of the National Association of Securities Dealers, Inc.
("NASD").
3
<PAGE>
ANNUAL OPERATING EXPENSES (as a percentage of average net assets) Class B
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
LARGE CAP LARGE CAP SMALL CAP SMALL CAP CAPITAL EQUITY
VALUE GROWTH VALUE GROWTH MID-CAP APPRECIATION INCOME
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- --------- --------- --------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Management Fee/Advisory Fees
(after fee waiver) 0.70% 0.70% (1) 0.98% (1) 0.99% (1) 0.55% (1) 0.75% (1) 0.73% (1)
12b-1 Fees (2) 0.36% 0.37% 0.37% 0.36% 0.43% 0.35% 0.36%
Other Expenses (3) 0.06% 0.08% 0.05% 0.05% 0.09% 0.04% 0.03%
- ------------------------------------------------------------------------------------------------------------------------------------
Total Operating Expenses 1.12% 1.15% 1.40% 1.40% 1.07% 1.14% 1.12%
(after fee waiver) (4)
</TABLE>
ANNUAL OPERATING EXPENSES (as a percentage of average net assets) Class B
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BALANCED
PORTFOLIO
---------
<S> <C>
Management Fee/Advisory Fees (after fee waiver) 0.59% (1)
12b-1 Fees (2) 0.41%
Other Expenses (after reimbursements) (3) 0.05%
- --------------------------------------------------------------------------------
Total Operating Expenses (after fee waiver) (4) 1.05%
- --------------------------------------------------------------------------------
</TABLE>
(1) SEI Financial Management Corporation ("SFM"), in its capacity as Manager
for each Portfolio, and certain of the investment advisers and sub-advisers
(collectively, "advisers") have agreed to waive, on a voluntary basis, a
portion of their fees, and the management/advisory fees shown reflect these
voluntary waivers. Such fee waivers are voluntary and may be terminated at
any time in the sole discretion of each entity that has agreed to waive a
portion of its fee. Absent such fee waivers, management/advisory fees
would be: Large Cap Growth Portfolio, .75%; Small Cap Value Portfolio,
1.00%; Small Cap Growth Portfolio, 1.00%; Capital Appreciation Portfolio,
.75%; Equity Income Portfolio, .75%; and Balanced Portfolio, .75%. In
addition, absent fee waivers, the restated management/advisory fees for the
Mid-Cap Portfolio would be .75%.
(2) The 12b-1 fees shown include the Large Cap Value, Large Cap Growth, Small
Cap Value, Small Cap Growth, Mid-Cap, Capital Appreciation, Equity Income
and Balanced Portfolios' current 12b-1 budget. The maximum 12b-1 fees
payable by Class B shares of these Portfolios are .60%.
(3) Other Expenses for the Large Cap Growth and Small Cap Value Portfolios are
based on estimated amounts for the current fiscal year.
(4) Absent the voluntary fee waivers described above, total operating expenses
for the Class B Shares of the Portfolios would be: Large Cap Value
Portfolio, 1.12%; Large Cap Growth Portfolio, 1.20%; Small Cap Value
Portfolio, 1.42%; Small Cap Growth Portfolio, 1.41%; Capital Appreciation
Portfolio, 1.14%; Equity Income Portfolio, 1.14%; and Balanced Portfolio,
1.21%. In addition, absent such voluntary fee waivers, the restated total
operating expenses for the Mid-Cap Portfolio would be 1.27%. Additional
information may be found under "The Advisers and Sub-Advisers" and "The
Manager and Shareholder Servicing Agent."
- --------------------------------------------------------------------------------
EXAMPLE
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
1 YR. 3 YRS. 5 YRS. 10 YRS.
----- ------ ------ -------
<S> <C> <C> <C> <C>
An investor in a Portfolio would pay the following expenses on $1,000 investment
assuming (1) 5% annual return and (2) redemption at the end of each time period:
Large Cap Value Portfolio $11.00 $36.00 $62.00 $136.00
Large Cap Growth Portfolio $12.00 $37.00 $ -- $ --
Small Cap Value Portfolio $14.00 $44.00 $ -- $ --
Small Cap Growth Portfolio $14.00 $44.00 $77.00 $168.00
Mid-Cap Portfolio $11.00 $34.00 $59.00 $131.00
Capital Appreciation Portfolio $12.00 $36.00 $63.00 $139.00
Equity Income Portfolio $11.00 $36.00 $62.00 $136.00
Balanced Portfolio $11.00 $33.00 $58.00 $128.00
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
THE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE
EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.
The purpose of the expense table is to assist the investor in understanding the
various costs and expenses that may be directly or indirectly borne by investors
in Class B shares of the Portfolios. The information in the foregoing table and
example relates only to each Portfolio's Class B shares. Certain Portfolios
also offer ProVantage Funds shares, which are subject to the same expenses
except that ProVantage Funds shares bear different distribution costs and
additional transfer agent
4
<PAGE>
costs and sales loads. A person who purchases shares through a financial
institution may be charged separate fees by that institution. Additional
information may be found under "The Manager and Shareholder Servicing Agent,"
"The Advisers and Sub-Advisers" and "Distribution."
Long-term shareholders may eventually pay more than the economic equivalent of
the maximum front-end sales charges otherwise permitted by the Rules of Fair
Practice (the "Rules") of the National Association of Securities Dealers, Inc.
("NASD").
_________________________________
On June 5, 1995, the Trust's Board of Trustees voted to change the name of
the Mid-Cap Growth Portfolio to the Mid-Cap Portfolio to reflect a shift in
emphasis by the Portfolio from "growth" securities to a broader mid cap
benchmark. In connection with this change, the Trustees also approved a
change in investment adviser for the Portfolio. (See below for a
description of Martingale Asset Management, L.P.)
_________________________________
At meetings held on June 16, 1995 and adjourned until July 10, 1995, on
August 11, 1995, and adjourned until August 14, 1995, and on November 13,
1995, Shareholders of the Large Cap Value, Large Cap Growth, Capital
Growth, Capital Appreciation, Equity Income, Small Cap Growth, Small Cap
Value, Mid-Cap, and Balanced Portfolios voted to amend, reclassify or
eliminate certain of each Portfolio's fundamental investment policies. In
addition, the sole Shareholder of the Real Estate Securities Portfolio also
consented on July 10, 1995, to these same changes.
With respect to the Large Cap Value, Large Cap Growth, Capital Growth,
Capital Appreciation, Equity Income, Small Cap Growth, Small Cap Value,
Balanced, Mid-Cap, and Real Estate Portfolios, the following amended
fundamental investment policies are inserted on page 19 of the Prospectus
in place of the current fundamental investment policies:
1. 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
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.
2. No Portfolio may purchase any securities which would cause more than
25% of the total assets of the Portfolio to be invested in the securities
of one or more issuers conducting their principal business activities in
the same industry, provided that this limitation does not apply to
investments in obligations issued or guaranteed by the United States
Government or its agencies and instrumentalities; and provided further that
with respect to the Real Estate Securities Portfolio, that this limitation
does not apply to investments in securities of companies principally
engaged in the real estate industry.
The foregoing percentage limitations will apply at the time of the
purchase of a security. Additional investment limitations are set forth in
the Statement of Additional Information.
_________________________________
At the same meetings, Shareholders of the Capital Appreciation, Equity
Income, Small Cap Growth, Mid-Cap, and Balanced Portfolios approved a new
management structure wherein SFM will act as each Portfolio's Investment
Adviser. In connection with this change, the first sentence of the
description of SEI Financial Management Corporation on page 28 of the
Prospectus is amended and restated to read as follows:
SEI Financial Management Corporation ("SFM") serves as investment adviser
for the Large Cap Value, Large Cap Growth, Small Cap Value, Small Cap
Growth, Capital Appreciation, Equity Income, Mid-Cap, and Balanced
Portfolios.
5
<PAGE>
In addition, the first sentence of the second paragraph of the description
of SEI Financial Management Corporation is amended and restated to read as
follows:
For these advisory services, SFM is entitled to a fee, which is
calculated daily and paid monthly, at an annual rate of .35% of the Large
Cap Value Portfolio's average daily net assets, at an annual rate of .65%
of the Small Cap Value and Small Cap Growth Portfolios' average daily net
assets, and at an annual rate of .40% of the Capital Appreciation,
Balanced, Equity Income, Mid-Cap, and Large Cap Growth Portfolios' average
daily net assets.
_________________________________
At the same meeting, Shareholders of the Capital Appreciation, Equity
Income, Small Cap Growth, Mid-Cap, and Balanced Portfolios also approved
the "Manager of Managers" structure wherein, upon the recommendation of
SFM, and subject to receipt by the Trust of exemptive relief from the SEC,
the Board of Trustees will be able to appoint additional and replacement
sub-advisers for these Portfolios without Shareholder approval. In
connection with this change, Shareholders of these Portfolios approved the
selection of each of the current investment advisers for these Portfolios
as investment sub-advisers for these Portfolios. Accordingly, the following
sentences replace the corresponding sentences in the "Investment Objectives
and Policies" section beginning on page 11 of the Prospectus:
The Capital Appreciation Portfolio's investment adviser is SEI Financial
Management Corporation and its investment sub-adviser is STI Capital
Management, N.A.
The Equity Income Portfolio's investment adviser is SEI Financial
Management Corporation and its investment sub-adviser is Merus Capital
Management.
The Small Cap Growth Portfolio's investment adviser is SEI Financial
Management Corporation and its investment sub-advisers are Pilgrim Baxter &
Associates, Ltd., Nicholas-Applegate Capital Management, Apodaca-Johnston
Capital Management, and Wall Street Associates.
The Mid-Cap Portfolio's investment adviser is SEI Financial Management
Corporation and its investment sub-adviser is Martingale Asset Management,
L.P.
The Balanced Portfolio's investment adviser is SEI Financial Management
Corporation and its investment sub-adviser is STI Capital Management, N.A.
In addition, references in this Prospectus to SunBank Capital Management,
N.A., Investment Advisers, Inc., Pilgrim Baxter & Associates, Ltd.,
Nicholas-Applegate Capital Management, and Merus Capital Management in
connection with the Capital Appreciation, Equity Income, Small Cap Growth,
and Balanced Portfolios are changed from investment adviser to sub-adviser.
Furthermore, at a meeting held on November 13, 1995, Shareholders of the
Small Cap Value Portfolio approved Boston Partners Asset Management, L.P.
as an additional sub-adviser to the Portfolio. In connection with this
change, the following sentence replaces the corresponding sentence in the
"Investment Objectives and Policies" section beginning on page 11 of the
Prospectus:
The Small Cap Growth Portfolio's investment adviser is SEI Financial
Management Corporation and its investment sub-advisers are 1838 Investment
Advisers, L.P. and Boston Partners Asset Management, L.P.
For a description of the new investment sub-advisers for these Portfolios,
please read "The Advisers and Sub-Advisers" section of the Prospectus.
_________________________________
6
<PAGE>
As of the date of this supplement, "The Advisers and Sub-Advisers" section
of the Prospectus is amended and the following language is inserted:
APODACA-JOHNSTON CAPITAL MANAGEMENT. Apodaca-Johnston Capital Management
-----------------------------------
("Apodaca") is a California corporation with its principal address at 580
California Street, Suite 2200, San Francisco, CA 94104. Apodaca's
predecessor was founded in 1985, and as of June 30, 1995, Apodaca had
approximately $140 million in assets under management. Apodaca's clients
include individuals, pension and profit sharing plans, an endowment fund,
and an investment company portfolio.
The portion of the Portfolio's assets allocated to Apodaca will be managed
by Scott Johnston and Jerry C. Apodaca, Jr. Mr. Johnston, a principal and
1/3 owner of Apodaca, founded Apodaca's predecessor in 1985, and has 23
years of investment management experience. Jerry C. Apodaca, Jr. joined the
firm as a principal and 1/3 owner in 1991, and has 12 years investment
management experience. Before joining Apodaca, Mr. Apodaca was a Vice
President of Marketing at Newport First Investments, Inc.
COMPENSATION. Under the proposed Investment Sub-Advisory Agreement, SFM
------------
will pay Apodaca a fee, which is calculated and paid monthly, based on the
annual percentage rate of .50% of the average monthly market value of the
portion of the assets of the Small Cap Growth Portfolio managed by Apodaca.
BOSTON PARTNERS ASSET MANAGEMENT, L.P. Boston Partners Asset Management,
--------------------------------------
L.P. ("Boston"), a Delaware limited partnership, is a registered investment
adviser with its principal business address at One Financial Center, 43rd
Floor, Boston, Massachusetts 02111. Boston's general partner, Boston
Partners, Inc., One Financial Center, 43rd Floor, Boston, Massachusetts
02111, whose sole shareholder is Desmond J. Heathwood, Chief Investment
Officer of Boston, owns approximately 20% of Boston's partnership
interests. Boston was founded in April, 1995, and as of July 31, 1995, it
had approximately $3.7 billion in assets under management. Boston's clients
include corporations, endowments, foundations, pension and profit sharing
plans, and one other investment company.
The portion of the Small Cap Value Portfolio's assets allocated to Boston
are managed by Wayne J. Archambo, C.F.A. Mr. Archambo has been employed by
Boston since its organization, and has 10 years experience investing in
small capitalization stocks. Prior to joining Boston, Mr. Archambo was a
Vice President and Equity Policy Committee member at The Boston Company
Asset Management, Inc., where he created that firm's small capitalization
value product.
Boston, along with its general partner and several of its limited partners,
is a defendant in a civil action in Massachusetts brought by The Boston
Company Asset Management, Inc. ("TBCAM"), the former employer of certain
partners of Boston. TBCAM alleges various causes of action arising from the
unsuccessful effort by Desmond J. Heathwood, the sole shareholder of
Boston's general partner, and other former TBCAM officers, to purchase the
assets of TBCAM, and the resulting formation of Boston. The defendants have
filed an answer which denies all of TBCAM's allegations, and have asserted
counterclaims against TBCAM. The parties are currently engaged in discovery
proceedings, and no trial date has been set. Boston believes that TBCAM's
action is without merit, and will not have a material adverse effect on
Boston. The Trustees of the Trust consider information about the litigation
when they approve Boston as an investment sub-adviser for the Portfolio.
COMPENSATION. Under the Investment Sub-Advisory Agreement, SFM pays Boston
------------
a fee, which is calculated and paid monthly, based on the annual percentage
rate of .50% of the average monthly market value of the portion of the
assets of the Small Cap Value Portfolio managed by Boston.
WALL STREET ASSOCIATES. Wall Street Associates ("WSA") is organized as a
----------------------
corporation with its principal address at 1200 Prospect Street, Suite 100,
La Jolla, CA 92037. WSA was founded in 1987, and as of June 1, 1995, had
approximately $640 million in assets under management, none of which was
held by registered investment companies. WSA provides investment advisory
services for institutional clients, an investment partnership for which it
serves as general partner, a group trust for which it serves as sole
investment manager, and an offshore fund for foreign investors for which it
serves as the sole investment manager.
7
<PAGE>
William Jeffery, III, Kenneth F. McCain, and Richard S. Coons each of whom
own 1/3 of WSA, serve as Portfolio Managers for the portion of the
Portfolio's assets allocated to WSA. Each is a Principal of WSA and,
together, they have 73 years of investment management experience.
WSA has served as an investment sub-adviser to only one registered
investment company (since June 28, 1995), and, as such, does not have
extensive experience advising a highly regulated entity such as an
investment company. This may present additional risks for the Portfolio.
COMPENSATION. Under the proposed Investment Sub-Advisory Agreement, SFM
------------
will pay WSA a fee, which is calculated and paid monthly, based on the
annual percentage rate of .50% of the average monthly market value of the
portion of the assets of the Small Cap Growth Portfolio managed by WSA.
_________________________________
On June 5, 1995, the Trust's Board of Trustees voted to change the name of
the Mid-Cap Growth Portfolio to the Mid-Cap Portfolio to reflect a shift in
emphasis by the Portfolio from mid-sized "growth" companies to a broader
range of middle capitalization companies. In connection with this change,
the Board of Trustees approved a change in investment adviser for the
Portfolio from Nicholas-Applegate Capital Management to Martingale Asset
Management, L.P. ("Martingale") effective June 21, 1995. At a Shareholder
meeting scheduled for August 11, 1995, and adjourned until August 14, 1995,
Shareholders of the Mid-Cap Portfolio approved the selection of Martingale
as the Portfolio's new investment adviser.
As of the date of this Supplement, "The Advisers and Sub-Advisers" section
of the Prospectus is amended and the following language inserted:
MARTINGALE ASSET MANAGEMENT, L.P. Martingale is a Delaware limited
--------------------------------
partnership with its principal address at 222 Berkeley Street, Boston,
Massachusetts 02116. Commerz Asset Management USA Corporation ("CAM") is
the general partner with a controlling interest in Martingale. Commerz
International Capital Management GmbH ("CICM"), headquartered in Frankfurt,
Germany, is the asset management subsidiary of Commerz Bank, a German
financial institution. Martingale was established in 1987, and as of May
31, 1995, had assets of approximately $410 million under management.
Martingale's advisory clients include pension plans, endowments,
foundations, and investment company portfolios.
The assets of the Portfolio will be managed by John Freeman. Mr. Freeman
has 10 years of investment management experience, including 3 years of
experience investing in mid cap companies. Prior to joining Martingale, he
worked at BARRA, Inc. as a Manager of Consulting Services.
COMPENSATION. Under an Investment Advisory Agreement with the Trust, the
------------
Trust pays Martingale a fee, which is calculated daily and paid monthly, at
an annual rate of .25% of the average daily net assets of the Mid-Cap
Portfolio. For the fiscal year ended September 30, 1994, the Portfolio paid
Nicholas-Applegate Capital Management, the Portfolio's former investment
adviser, an investment advisory fee of .45% of the average daily net assets
of the Portfolio.
_________________________________
The following should be read in conjunction with the section of the
Prospectus entitled "Purchase and Redemption of Shares":
Because excessive trading (including short-term "market timing" trading)
can hurt a Portfolio's performance, each Portfolio may refuse purchase
orders from any shareholder account if the accountholder has been advised
that previous purchase and redemption transactions were considered
excessive in number or amount. Accounts under common control or ownership,
including those with the same taxpayer identification number and those
administered so as to redeem or purchase shares based upon certain
predetermined market indicators, will be considered one account for this
purpose.
8
<PAGE>
_________________________________
At a meeting held on April 24, 1995, Shareholders of the Small Cap Growth
Portfolio (the "Portfolio") approved an investment advisory agreement with
P.B. Newco, Inc. ("P.B. Newco"). A Shareholder vote was required as a
result of a transaction whereby United Asset Management ("UAM") acquired
all of the assets of Pilgrim Baxter Associates, Ltd. ("Pilgrim Baxter"),
the former adviser of the Portfolio. UAM then contributed Pilgrim Baxter's
assets to P.B. Newco which now carries on the business of Pilgrim Baxter
under the name Pilgrim Baxter.
The same persons responsible for the investment of the Portfolio's assets
continued to manage the Portfolio. There were no changes in Pilgrim
Baxter's method of operation or the location where it conducts its
business. The fees payable under the new advisory agreement are the same as
those charged under the previous agreement.
_________________________________
The second sentence of the second paragraph under the "Investment
Objectives and Policies - Large Cap Value Portfolio" section on page 11 of
the Prospectus is amended and restated to read as follows:
In general, the advisers characterize high quality securities as those
that have above-average reinvestment rates.
_________________________________
The last sentence of the "Investment Objectives and Policies - Mid-Cap
Growth Portfolio" section on page 14 of the Prospectus is amended and
restated to read as follows:
The Portfolio's investment adviser is Martingale Assessment Management,
L.P.
In addition, the fourth sentence of the second paragraph of the "Investment
Objectives and Policies - Mid-Cap Growth Portfolio" section of the
Prospectus is deleted.
_________________________________
The "General Investment Policies" section on page 18 of the Prospectus is
amended and restated and the following language is inserted:
BORROWING. Each Portfolio may borrow money. Interest paid on such
borrowings will reduce a Portfolio's income. A Portfolio will not purchase
securities while its borrowings exceed 5% of its total assets.
COMMON STOCKS. Each Portfolio will invest in common stocks; provided
however, that the Large Cap Value, Small Cap Growth, Capital Appreciation,
Equity Income and Capital Growth Portfolios may only invest in such
securities if they are listed on registered exchanges or actively traded in
the over-the-counter market.
INVESTMENT COMPANY SECURITIES. Each Portfolio may purchase investment
company securities, which will result in the layering of expenses. There
are legal limits on the amount of such securities that may be acquired by a
Portfolio.
OPTIONS AND FUTURES. Each Portfolio may purchase or write options, futures
and options on futures. Risks associated with investing in options and
futures may include lack of a liquid secondary market, trading restrictions
that may be imposed by an exchange and government regulations which may
restrict trading.
SECURITIES LENDING. Each Portfolio may lend assets to qualified investors
for the purpose of realizing additional income.
9
<PAGE>
_________________________________
The first sentence of the second paragraph of "The Manager and Shareholder
Servicing Agent" section on page 20 of the Prospectus is amended and
restated to read as follows:
For its management services, 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 Growth Portfolio, at an annual rate of .35% of the
average daily net assets of the Large Cap Growth, Large Cap Value, Small
Cap Value, Small Cap Growth, Capital Appreciation, Equity Income, Mid-Cap,
and Balanced Portfolios, and at an annual rate of .55% of the average daily
net assets of the Real Estate Securities Portfolio.
_________________________________
"The Advisers and Sub-Advisers - Nicholas-Applegate Capital Management"
section on page 27 of the Prospectus is amended to delete references to
Nicholas-Applegate acting as investment adviser for the Mid-Cap Portfolio.
_________________________________
The following should be read in conjunction with the information found
under "The Advisers and Sub-Advisers-SunBank Capital Management" section on
page 29 of the Prospectus:
Effective April 4, 1995, John Race no longer serves as a portfolio
manager to the Balanced Portfolio.
_________________________________
The following information is inserted under the "General Information - The
Trust" section on page 34 of the Prospectus:
Certain shareholders in one or more of the Portfolios may obtain asset
allocation services with respect to their investments in such Portfolios.
If a sufficient amount of a Portfolio's assets are subject to such asset
allocation services, the Portfolio may incur higher transaction costs and a
higher portfolio turnover rate that would otherwise be anticipated as a
result of redemptions and purchases of Portfolio shares pursuant to such
services.
_________________________________
The following should be inserted in place of the second paragraph of the
"Description of Permitted Investments and Risk Factors - Futures and
Options on Futures" section on page 37 of the Prospectus:
A stock index futures contract is a bilateral agreement pursuant to which
two parties agree to take or make delivery of an amount of cash equal to a
specified dollar amount times the difference between the stock index value
at the close of trading of the contract and the price at which the futures
contract is originally struck. No physical delivery of the stocks
comprising the Index is made; generally contracts are closed out prior to
the expiration date of the contract. No price is paid upon entering into
futures contracts. Instead, a Portfolio would be required to deposit an
amount of cash or U.S. Treasury securities known as "initial margin."
Subsequent payments, called "variation margin," to and from the broker,
would be made on a daily basis as the value of the futures position varies
(a process known as "marking to market"). The margin is in the nature of a
performance bond or good-faith deposit on a futures contract.
The following should be inserted as the third paragraph of the "Description
of Permitted Investments and Risk Factors - Futures and Options on Futures"
section on page 37 of the Prospectus:
In order to avoid leveraging and related risks, when a Portfolio
purchases futures contracts, it will collateralize its position by
depositing an amount of cash or cash equivalents, equal to the market value
of
10
<PAGE>
the futures positions held, less margin deposits, in a segregated account
with the Trust's custodian. Collateral equal to the current market value of
the futures position will be marked to market on a daily basis.
The last sentence of the "Description of Permitted Investments and Risk
Factors - Futures and Options on Futures" section on page 37 of the
Prospectus is amended and restated to read as follows:
Each Portfolio may invest in futures and options on futures.
The last sentence of the "Description of Permitted Investments and Risk
Factors - Illiquid Securities" section on page 38 of the Prospectus is
amended and restated as follows:
Each Portfolio may invest in illiquid securities.
The last sentence of the "Description of Permitted Investments and Risk
Factors - Options" section on page 40 of the Prospectus is amended and
restated to read as follows:
Each Portfolio may invest in options.
The last sentence of the "Description of Permitted Investments and Risk
Factors - Warrants" section on page 45 of the Prospectus is amended and
restated to read as follows:
Each Portfolio may invest in warrants.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
11
<PAGE>
SEI INSTITUTIONAL MANAGED TRUST
LARGE CAP GROWTH PORTFOLIO
LARGE CAP VALUE PORTFOLIO
CAPITAL APPRECIATION PORTFOLIO
EQUITY INCOME PORTFOLIO
BALANCED PORTFOLIO
SMALL CAP GROWTH PORTFOLIO
SMALL CAP VALUE PORTFOLIO
MID-CAP PORTFOLIO
SUPPLEMENT DATED NOVEMBER 14, 1995 TO
THE CLASS D PROSPECTUS
DATED JANUARY 31, 1995
THIS SUPPLEMENT TO THE PROSPECTUS SUPERSEDES AND REPLACES ANY EXISTING
SUPPLEMENTS TO THE PROSPECTUS. THIS SUPPLEMENT PROVIDES NEW AND ADDITIONAL
INFORMATION BEYOND THAT CONTAINED IN THE PROSPECTUS AND SHOULD BE RETAINED AND
READ IN CONJUNCTION WITH SUCH PROSPECTUS.
_________________________________________
EFFECTIVE MARCH 6, 1995, THE NAME OF THE PROVANTAGE FUNDS CLASS SHARES WAS
CHANGED TO CLASS D.
_________________________________________
On June 5, 1995, the Trust's Board of Trustees voted to change the name of the
Mid-Cap Growth Portfolio to the Mid-Cap Portfolio to reflect a shift in emphasis
by the Portfolio from "growth" securities to a broader mid cap benchmark. In
connection with this change, the Trustees also approved a change in investment
adviser for the Portfolio. (See below for a description of Martingale Asset
Management, L.P.)
_________________________________________
Effective October 30, 1995, SunBank Capital Management, N.A., the investment
adviser of sub-adviser to the Capital Appreciation and Balanced Portfolios of
SEI Institutional Managed Trust, changed its name to STI Capital Management,
N.A. This prospectus is hereby amended to reflect this name change.
_________________________________________
Effective December 6, 1995, Investment Advisers, Inc. will no longer serve as
investment sub-adviser to the Small Cap Growth Portfolio. The assets of the
Portfolio will be reallocated amongst the Portfolio's four remaining sub-
advisers.
_________________________________________
Effective September 1, 1995, SEI Financial Management Corporation removed the
expense cap in place for the Large Cap Value Portfolio. In connection with this
change, the "Shareholder Transaction Expenses" table on page 5 of the Prospectus
is deleted and the following "Shareholder Transaction Expenses" table is
inserted:
<PAGE>
SHAREHOLDER TRANSACTION EXPENSES (as a percentage of offering price)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
LARGE CAP LARGE CAP SMALL CAP SMALL CAP CAPITAL EQUITY
VALUE GROWTH VALUE GROWTH MID-CAP APPRECIATION INCOME BALANCED
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- --------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Maximum Sales Charge
Imposed on Purchases 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%
Maximum Sales Charge
Imposed on Reinvested None None None None None None None None
Dividends None None None None None None None None
Redemption Fees (1)
ANNUAL OPERATING EXPENSES (as a percentage of average net assets)
- -----------------------------------------------------------------------------------------------------------------------------------
Management/Advisory Fees
(after fee waiver) .70% .70% (2) .98% (2) .99% (2) .55% (2) .75% (2) .73% (2) .59%(2)
12-b Fees (3) .31% .32% .32% .31% .38% .30% .31% .36%
Other Expenses (4) .21% .23% .20% .20% .24% .19% .18% .20%
- -----------------------------------------------------------------------------------------------------------------------------------
Total Operating Expenses 1.22% 1.25% 1.50% 1.50% 1.17% 1.24% 1.22% 1.15%
(after fee waiver) (5)
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) A charge, currently $10.00, is imposed on wires of redemption proceeds of
the Portfolios' ProVantage Funds shares.
(2) SEI Financial Management Corporation ("SFM"), in its capacity as Manager
for each Portfolio, and certain of the investment advisers and sub-advisers
(collectively, "advisers") have agreed to waive, on a voluntary basis, a
portion of their fees, and the management/advisory fees shown reflect this
voluntary waiver. Such fees waivers are voluntary and may be terminated at
any time in the sole discretion of each entity that has agreed to waive a
portion of its fee. Absent such fee waiver, management/advisory fees would
be: Large Cap Growth Portfolio, .75%; Small Cap Value Portfolio, 1.00%;
Small Cap Growth Portfolio, 1.00%; Capital Appreciation Portfolio, .75%;
Equity Income Portfolio, .75%; and Balanced Portfolio, .75%. In addition,
absent fee waivers, the restated management/advisory fees for the Mid-Cap
Portfolio would be .75%.
(3) The 12b-1 fees shown include both the Portfolios' current 12b-1 budget for
reimbursement of expenses and the Distributor's voluntary waiver of a
portion of its compensatory fee. The Distributor reserves the right to
terminate its waiver at any time in its sole discretion. The maximum 12b-1
fees payable by the ProVantage Funds shares of each Portfolio are .60%.
(4) Other Expenses for the Large Cap Growth and Small Cap Value Portfolios are
based on estimated amounts for the current fiscal year.
(5) Absent the voluntary fee waivers described above, total operating expenses
for ProVantage Funds shares would be: Large Cap Value Portfolio 1.27%;
Large Cap Growth Portfolio, 1.35%; Small Cap Value Portfolio, 1.57%; Small
Cap Growth Portfolio, 1.51%; Capital Appreciation Portfolio, 1.24%; Equity
Income Portfolio, 1.24%; and Balanced Portfolio, 1.31%. In addition,
absent such voluntary fee waivers, the restated total operating expenses
for the Mid-Cap Portfolio would be 1.42%.
EXAMPLE
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
1 YR. 3 YRS. 5 YRS. 10 YRS.
----- ------ ------ -------
<S> <C> <C> <C> <C>
An investor in a Portfolio would pay the following expenses on
$1,000 investment assuming (1) the imposition of the maximum
sales load; (2) 5% annual return and (3) redemption at the end
of each time period:
Large Cap Value Portfolio $62.00 $87.00 $114.00 $190.00
Large Cap Growth Portfolio $62.00 $88.00 $ -- $ --
Small Cap Value Portfolio $65.00 $95.00 $ -- $ --
Small Cap Growth Portfolio $65.00 $95.00 $128.00 $220.00
Mid-Cap Portfolio $61.00 $85.00 $111.00 $185.00
Capital Appreciation Portfolio $62.00 $87.00 $115.00 $193.00
Equity Income Portfolio $62.00 $87.00 $114.00 $190.00
Balanced Portfolio $61.00 $85.00 $110.00 $183.00
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
THE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE
EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.
2
<PAGE>
The purpose of the expense table and example is to assist the investor in
understanding the various costs and expenses that may be directly or indirectly
borne by investors in ProVantage Funds shares of each Portfolio. A person who
purchases shares through an account with a financial institution may be charged
separate fees by that institution. The information set forth in the foregoing
table and example relates only to the ProVantage Funds shares. Each Portfolio
also offers Class A and Class B shares, which are subject to the same expenses,
except that there are no sales loads, different distribution costs and no
transfer agent costs. Additional information may be found under "The Manager
and Shareholder Servicing Agent," "The Advisers and Sub-Advisers" and
"Distribution."
The rules of the Securities and Exchange Commission require that the maximum
sales charge be reflected in the above table. However, certain investors may
qualify for reduced sales charges. See "Purchase of Shares". Long-term
shareholders may pay more than the economic equivalent of the maximum front-end
sales charges otherwise permitted by the Rules of Fair Practice (the "Rules") of
the National Association of Securities Dealers, Inc. ("NASD").
_________________________________
At meetings held on June 16, 1995 and adjourned until July 10, 1995, on
August 11, 1995 and adjourned until August 14, 1995, and on November 13,
1995, Shareholders of the Large Cap Value, Large Cap Growth, Capital
Appreciation, Equity Income, Small Cap Growth, Small Cap Value, Mid-Cap,
and Balanced Portfolios voted to amend, reclassify or eliminate certain of
each Portfolio's fundamental investment policies. With respect to the Large
Cap Value, Large Cap Growth, Capital Appreciation, Equity Income, Small Cap
Growth, Small Cap Value, Mid-Cap, and Balanced Portfolios, the following
amended fundamental investment policies are inserted on page 20 of the
Prospectus in place of the current fundamental investment policies:
1. With respect to 75% of its total assets, no 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 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.
2. No Portfolio may purchase any securities which would cause more
than 25% of the total assets of the Portfolio to be invested in the
securities of one or more issuers conducting their principal business
activities in the same industry, provided that this limitation does not
apply to investments in obligations issued or guaranteed by the United
States Government or its agencies and instrumentalities.
The foregoing percentage limitations will apply at the time of the
purchase of a security. Additional investment limitations are set forth in
the Statement of Additional Information.
_________________________________
At the same meetings, Shareholders of the Capital Appreciation, Equity
Income, Small Cap Growth, Mid-Cap, and Balanced Portfolios approved a new
management structure wherein SFM will act as each Portfolio's Investment
Adviser. In connection with this change, the first sentence of the
description of SEI Financial Management Corporation on page 29 of the
Prospectus is amended and restated to read as follows:
SEI Financial Management Corporation ("SFM") serves as investment
adviser for the Large Cap Value, Large Cap Growth, Small Cap Value, Small
Cap Growth, Capital Appreciation, Equity Income, Mid-Cap, and Balanced
Portfolios.
In addition, the first sentence of the second paragraph of the description
of SEI Financial Management Corporation is amended and restated to read as
follows:
For these advisory services, SFM is entitled to a fee, which is
calculated daily and paid monthly, at an annual rate of .35% of the Large
Cap Value Portfolio's average daily net assets, at an annual rate of .65%
of the
3
<PAGE>
Small Cap Value and Small Cap Growth Portfolios' average daily net assets, and
at an annual rate of .40% of the Capital Appreciation, Balanced, Equity Income,
Mid-Cap, and Large Cap Growth Portfolios' average daily net assets.
_________________________________
At the same meetings, Shareholders of the Capital Appreciation, Equity Income,
Small Cap Growth, Mid-Cap, and Balanced Portfolios also approved the "Manager of
Managers" structure wherein, upon the recommendation of SFM, and subject to
receipt by the Trust of exemptive relief from the SEC, the Board of Trustees
will be able to appoint additional and replacement sub-advisers for these
Portfolios without Shareholder approval. In connection with this change,
Shareholders of each of these Portfolios except the Mid-Cap Portfolio, approved
the selection of each of the current investment advisers for these Portfolios as
investment sub-advisers for these Portfolios. Accordingly, the following
sentences replace the corresponding sentences in the "Investment Objectives and
Policies" section beginning on page 13 of the Prospectus:
The Capital Appreciation Portfolio's investment adviser is SEI Financial
Management Corporation and its investment sub-adviser is STI Capital Management,
N.A.
The Equity Income Portfolio's investment adviser is SEI Financial
Management Corporation and its investment sub-adviser is Merus Capital
Management.
The Small Cap Growth Portfolio's investment adviser is SEI Financial
Management Corporation and its investment sub-advisers are Pilgrim Baxter &
Associates, Ltd., Nicholas-Applegate Capital Management, Apodaca-Johnston
Capital Management, and Wall Street Associates.
The Mid-Cap Portfolio's investment adviser is SEI Financial Management
Corporation and its investment sub-adviser is Martingale Asset Management, L.P.
The Balanced Portfolio's investment adviser is SEI Financial Management
Corporation and its investment sub-adviser is STI Capital Management, N.A.
In addition, references in this Prospectus to SunBank Capital Management, N.A.,
Investment Advisers, Inc., Pilgrim Baxter & Associates, Ltd., Nicholas-Applegate
Capital Management, and Merus Capital Management in connection with the Capital
Appreciation, Equity Income, Small Cap Growth, and Balanced Portfolios are
changed from investment adviser to sub-adviser.
Furthermore, at a meeting held on November 13, 1995, Shareholders of the
Small Cap Value Portfolio approved Boston Partners Asset Management, L.P. as an
additional sub-adviser to the Portfolio. In connection with this change, the
following sentence replaces the corresponding sentence in the "Investment
Objectives and Policies" section beginning on page 13 of the Prospectus:
The Small Cap Value Portfolio's investment adviser is SEI Financial
Management Corporation and its investment sub-advisers are 1838 Investment
Advisers, L.P. and Boston Partners Asset Management, L.P.
For a description of the new investment sub-advisers for these Portfolios,
please read "The Advisers and Sub-Advisers" section of the Prospectus.
_________________________________
As of the date of this supplement, "The Advisers and Sub-Advisers" section of
the Prospectus is amended and the following language is inserted:
4
<PAGE>
APODACA-JOHNSTON CAPITAL MANAGEMENT. Apodaca-Johnston Capital Management
- -----------------------------------
("Apodaca") is a California corporation with its principal address at 580
California Street, Suite 2200, San Francisco, CA 94104. Apodaca's predecessor
was founded in 1985, and as of June 30, 1995, Apodaca had approximately $140
million in assets under management. Apodaca's clients include individuals,
pension and profit sharing plans, an endowment fund, and an investment company
portfolio.
The portion of the Portfolio's assets allocated to Apodaca will be managed by
Scott Johnston and Jerry C. Apodaca, Jr. Scott Johnston, as a principal and 1/3
owner of Apodaca, founded Apodaca's predecessor in 1985, and has 23 years of
investment management experience. Jerry C. Apodaca, Jr. joined the firm as a
principal and 1/3 owner in 1991, and has 12 years investment management
experience. Before joining Apodaca, Mr. Apodaca was a Vice President of
Marketing at Newport First Investments, Inc.
COMPENSATION. Under the proposed Investment Sub-Advisory Agreement, SFM will
- ------------
pay Apodaca a fee, which is calculated and paid monthly, based on the annual
percentage rate of .50% of the average monthly market value of the portion of
the assets of the Small Cap Growth Portfolio managed by Apodaca.
BOSTON PARTNERS ASSET MANAGEMENT, L.P. Boston Partners Asset Management, L.P.
- --------------------------------------
("Boston"), a Delaware limited partnership, is a registered investment adviser
with its principal business address at One Financial Center, 43rd Floor, Boston,
Massachusetts 02111. Boston's general partner, Boston Partners, Inc., One
Financial Center, 43rd Floor, Boston, Massachusetts 02111, whose sole
shareholder is Desmond J. Heathwood, Chief Investment Officer of Boston, owns
approximately 20% of Boston's partnership interests. Boston was founded in
April, 1995, and as of July 31, 1995, it had approximately $3.7 billion in
assets under management. Boston's clients include corporations, endowments,
foundations, pension and profit sharing plans, and one other investment company.
The portion of the Small Cap Value Portfolio's assets allocated to Boston are
managed by Wayne J. Archambo, C.F.A. Mr. Archambo has been employed by Boston
since its organization, and has 10 years experience investing in small
capitalization stocks. Prior to joining Boston, Mr. Archambo was a Vice
President and Equity Policy Committee member at The Boston Company Asset
Management, Inc., where he created that firm's small capitalization value
product.
Boston, along with its general partner and several of its limited partners, is a
defendant in a civil action in Massachusetts brought by The Boston Company Asset
Management, Inc. ("TBCAM"), the former employer of certain partners of Boston.
TBCAM alleges various causes of action arising from the unsuccessful effort by
Desmond J. Heathwood, the sole shareholder of Boston's general partner, and
other former TBCAM officers, to purchase the assets of TBCAM, and the resulting
formation of Boston. The defendants have filed an answer which denies all of
TBCAM's allegations, and have asserted counterclaims against TBCAM. The parties
are currently engaged in discovery proceedings, and no trial date has been set.
Boston believes that TBCAM's action is without merit, and will not have a
material adverse effect on Boston. The Trustees of the Trust considered
information about the litigation when they approve Boston as an investment sub-
adviser for the Portfolio.
COMPENSATION. Under the Investment Sub-Advisory Agreement, SFM pays Boston a
- ------------
fee, which is calculated and paid monthly, based on the annual percentage rate
of .50% of the average monthly market value of the portion of the assets of the
Small Cap Value Portfolio managed by Boston.
WALL STREET ASSOCIATES. Wall Street Associates ("WSA") is organized as a
- ----------------------
corporation with its principal address at 1200 Prospect Street, Suite 100, La
Jolla, CA 92037. WSA was founded in 1987, and as of June 1, 1995, had
approximately $640 million in assets under management, none of which was held by
registered investment companies. WSA provides investment advisory services for
institutional clients, an investment partnership for which it serves as general
partner, a group trust for which it serves as sole investment manager, and an
offshore fund for foreign investors for which it serves as the sole investment
manager.
5
<PAGE>
William Jeffery, III, Kenneth F. McCain, and Richard S. Coons, each of whom own
1/3 of WSA, serve as Portfolio Managers for the portion of the Portfolio's
assets allocated to WSA. Each is a Principal of WSA and, together, they have 73
years of investment management experience.
WSA has served as an investment sub-adviser to only one registered investment
company (since June 28, 1995), and, as such, does not have extensive experience
advising a highly regulated entity such as an investment company. This may
present additional risks for the Portfolio.
COMPENSATION. Under the proposed Investment Sub-Advisory Agreement, SFM will
- ------------
pay WSA a fee, which is calculated and paid monthly, based on the annual
percentage rate of .50% of the average monthly market value of the portion of
the assets of the Small Cap Growth Portfolio managed by WSA.
_________________________________
On June 5, 1995, the Trust's Board of Trustees voted to change the name of the
Mid-Cap Growth Portfolio to the Mid-Cap Portfolio to reflect a shift in emphasis
by the Portfolio from mid-sized "growth" companies to a broader range of middle
capitalization companies. In connection with this change, the Board of Trustees
approved a change in investment adviser for the Portfolio from Nicholas-
Applegate Capital Management to Martingale Asset Management, L.P. ("Martingale")
effective June 21, 1995. At a Shareholder meeting scheduled for August 11,
1995, and adjourned until August 14, 1995, Shareholders of the Mid-Cap Portfolio
approved the selection of Martingale as the Portfolio's new investment adviser.
As of the date of this Supplement, "The Advisers and Sub-Advisers" section of
the Prospectus is amended and the following language inserted:
MARTINGALE ASSET MANAGEMENT, L.P. Martingale is a Delaware limited partnership
- --------------------------------
with its principal address at 222 Berkeley Street, Boston, Massachusetts 02116.
Commerz Asset Management USA Corporation ("CAM") is the general partner with a
controlling interest in Martingale. Commerz International Capital Management
GmbH ("CICM"), headquartered in Frankfurt, Germany, is the asset management
subsidiary of Commerz Bank, a German financial institution. Martingale was
established in 1987, and as of May 31, 1995, had assets of approximately $410
million under management. Martingale's advisory clients include pension plans,
endowments, foundations, and investment company portfolios.
The assets of the Portfolio will be managed by John Freeman. Mr. Freeman has 10
years of investment management experience, including 3 years of experience
investing in mid cap companies. Prior to joining Martingale, he worked at
BARRA, Inc. as a Manager of Consulting Services.
COMPENSATION. Under an Investment Advisory Agreement with the Trust, the Trust
- ------------
pays Martingale a fee, which is calculated daily and paid monthly, at an annual
rate of .25% of the average daily net assets of the Mid-Cap Portfolio. For the
fiscal year ended September 30, 1994, the Portfolio paid Nicholas-Applegate
Capital Management, the Portfolio's former investment adviser, an investment
advisory fee of .45% of the average daily net assets of the Portfolio.
_________________________________
The following should be read in conjunction with the section of the Prospectus
entitled "Your Account and Doing Business with ProVantage Funds - Exchanging
Shares":
Because excessive trading (including short-term "market timing" trading)
can hurt a Portfolio's performance, each Portfolio may refuse purchase orders
from any shareholder account if the accountholder has been advised that previous
purchase and redemption transactions were considered excessive in number or
amount. Accounts under common control or ownership, including those with the
same taxpayer identification number and
6
<PAGE>
those administered so as to redeem or purchase shares based upon certain
predetermined market indicators, will be considered one account for this
purpose.
_________________________________
At a meeting held on April 24, 1995, Shareholders of the Small Cap Growth
Portfolio (the "Portfolio") approved an investment advisory agreement with P.B.
Newco, Inc. ("P.B. Newco"). Shareholder vote was required as a result of a
transaction whereby United Asset Management ("UAM") acquired all of the assets
of Pilgrim Baxter Associates Ltd. ("Pilgrim Baxter"), the former adviser of the
Portfolio. UAM then contributed Pilgrim Baxter's assets to P.B. Newco which now
carries on the business of Pilgrim Baxter under the name Pilgrim Baxter.
The same persons responsible for the investment of the Portfolio's assets
continued to manage the Portfolio. There were no changes in Pilgrim Baxter's
method of operation or the location where it conducts its business. The fees
payable under the new advisory agreement are the same as those charged under the
previous agreement.
_________________________________
The sentence listing Nicholas-Applegate Capital Management as investment adviser
for the Mid-Cap Portfolio in the "Management Profile" section on page 3 of the
Prospectus is amended and restated and the following language is inserted:
MARTINGALE ASSET MANAGEMENT, L.P. serves as the investment adviser for the
Mid-Cap Portfolio.
In addition, the description of SEI Financial Management Corporation in the same
section is amended and restated as follows:
SEI FINANCIAL MANAGEMENT CORPORATION serves as the investment adviser of
the Large Cap Growth, Large Cap Value, Small Cap Value, Small Cap Growth,
Capital Appreciation, Equity Income, Mid-Cap, and Balanced Portfolios.
_________________________________
The second sentence of the second paragraph under the "Investment Objectives and
Policies - Large Cap Value Portfolio" section on page 13 of the Prospectus is
amended and restated to read as follows:
In general, the advisers characterize high quality securities as those that
have above-average reinvestment rates.
_________________________________
The last sentence of the second paragraph of the "Investment Objectives and
Policies - Mid-Cap Portfolio" section on page 16 of the Prospectus is deleted,
and the last sentence of the same section is amended and the following is
inserted:
The Portfolio's investment adviser is Martingale Asset Management, L.P.
_________________________________
The "General Investment Policies" section on page 19 of the Prospectus is
amended and restated to read as follows:
7
<PAGE>
COMMON STOCKS. Each Portfolio will invest in common stocks; provided however,
that the Large Cap Value, Small Cap Growth, Capital Appreciation, Equity Income
and Capital Growth Portfolio may only invest in such securities if they are
listed on registered exchanges or actively traded in the over-the-counter
market.
INVESTMENT COMPANY SECURITIES. The Large Cap Growth, Large Cap Value, Small Cap
Value, Small Cap Growth, Capital Appreciation, Equity Income, Mid-Cap, and
Balanced Portfolios may purchase investment company securities, which will
result in the layering of expenses. There are legal limits on the amount of
such securities that may be acquired by a Portfolio.
OPTIONS AND FUTURES. The Large Cap Growth, Large Cap Value, Small Cap Value,
Small Cap Growth, Capital Appreciation, Equity Income, Mid-Cap, and Balanced
Portfolios may purchase or write options, futures and options on futures. Risks
associated with investing in options and futures may include lack of a liquid
secondary market, trading restrictions that may be imposed by an exchange and
government regulations which may restrict trading.
SECURITIES LENDING. Each Portfolio may lend its assets to qualified investors
for the purpose of realizing additional income.
_________________________________
The first sentence of the second paragraph of "The Manager and Shareholder
Servicing Agent" section on page 21 of the Prospectus is amended and restated to
read as follows:
For its management services, SFM is entitled to a fee which is calculated
daily and paid monthly at an annual rate of .35% of the average daily net assets
of the Large Cap Growth, Large Cap Value, Small Cap Value, Small Cap Growth,
Capital Appreciation, Equity Income, Mid-Cap, and Balanced Portfolios.
_________________________________
"The Advisers and Sub-Advisers - Nicholas-Applegate Capital Management" section
on page 27 of the Prospectus is amended to delete references to Nicholas-
Applegate acting as investment adviser for the Mid-Cap Portfolio.
_________________________________
The following should be read in conjunction with the information found under
"The Advisers and Sub-Advisers -SunBank Capital Management" section on page 29
of the Prospectus:
Effective April 4, 1995, John Race no longer serves as a portfolio manager
to the Balanced Portfolio.
_________________________________
The following information is inserted under the "General Information - The
Trust" section on page 37 of the Prospectus:
Certain shareholders in one or more of the Portfolios may obtain asset
allocation services with respect to their investments in such Portfolios. If a
sufficient amount of a Portfolio's assets are subject to such asset allocation
services, the Portfolio may incur higher transaction costs and a higher
portfolio turnover rate that would otherwise be anticipated as a result of
redemptions and purchases of Portfolio shares pursuant to such services.
_________________________________
8
<PAGE>
Effective March 6, 1995, DST Systems, Inc. ("DST") will serve as transfer agent
and dividend disbursing agent to the Class D shares of the Trust.
FUND CORRESPONDENCE - All shareholder applications, checks, and general
correspondence (such as address changes or account maintenance issues) should be
directed to:
SIMT Class D Funds
c/o DST Systems, Inc.
P.O. Box 419240
Kansas City, MO 64141-6240
TRANSACTION PROCESSING - Shareholders may continue to conduct telephone
transactions (including purchases, redemptions and wires) by calling 1-800-437-
6016. Shareholders purchasing shares of the portfolio(s) by Fed wire must
request their bank to transmit the funds to:
United Missouri Bank of Kansas City, N.A.
ABA #10-10-00695
For Account #98-7060-100-1
Further Credit: [Portfolio Name]
Account Name
Account Number
GENERAL INQUIRIES - SEI Financial Management Corporation will continue to
respond to telephone inquiries regarding account balance and general
fund-related information. Services Representatives may be contacted by calling
1-800-437-6016.
_________________________________
The following should be inserted in place of the second paragraph of the
"Description of Permitted Investments and Risk Factors - Futures and Options on
Futures" section on page 41 of the Prospectus:
A stock index futures contract is a bilateral agreement pursuant to which
two parties agree to take or make delivery of an amount of cash equal to a
specified dollar amount times the difference between the stock index value at
the close of trading of the contract and the price at which the futures contract
is originally struck. No physical delivery of the stocks comprising the Index is
made; generally contracts are closed out prior to the expiration date of the
contract. No price is paid upon entering into futures contracts. Instead, a
Portfolio would be required to deposit an amount of cash or U.S. Treasury
securities known as "initial margin." Subsequent payments, called "variation
margin," to and from the broker, would be made on a daily basis as the value of
the futures position varies (a process known as "marking to market"). The margin
is in the nature of a performance bond or good-faith deposit on a futures
contract.
The following should be inserted as the third Paragraph of the "Description of
Permitted Investments and Risk Factors - Future and Options on Futures" section
on page 41 of the Prospectus:
In order to avoid leveraging and related risks, when a Portfolio purchases
futures contracts, it will collateralize its position by depositing an amount of
cash or cash equivalents, equal to the market value of the futures positions
held, less margin deposits, in a segregated account with the Trust's custodian.
Collateral equal to the current market value of the futures position will be
marked to market on a daily basis.
The last sentence of the "Description of Permitted Investments and Risk
Factors - Futures and Options on Futures" section on page 41 of the Prospectus
is amended and restated to read as follows:
9
<PAGE>
Each Portfolio may invest in futures and options on futures.
The following should be inserted immediately after the "Description of Permitted
Investments and Risk Factors - Futures and Options on Futures" section on page
41 of the Prospectus:
ILLIQUID SECURITIES. Illiquid securities are securities that cannot be disposed
of within seven business days at approximately the price at which they are being
carried on the Portfolio's books. An illiquid security includes a demand
instrument with a demand notice period exceeding seven days, where there is no
secondary market for such security, and repurchase agreements with duration over
7 days in length. Each Portfolio may invest in illiquid securities.
The last sentence of the "Description of Permitted Investments and Risk
Factors - Options" section on page 45 of the Prospectus is amended and restated
to read as follows:
Each Portfolio may invest in options.
The last sentence of the "Description of Permitted Investments and Risk Factors-
Warrants" section on page 48 of the Prospectus is amended and restated as
follows:
Each Portfolio may invest in warrants.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
10
<PAGE>
SEI INSTITUTIONAL MANAGED TRUST
HIGH YIELD BOND PORTFOLIO
CORE FIXED INCOME PORTFOLIO
BOND PORTFOLIO
SUPPLEMENT DATED NOVEMBER 14, 1995 TO
THE INSTITUTIONAL CLASS PROSPECTUS
DATED JANUARY 31, 1995
___________________________
THIS SUPPLEMENT TO THE PROSPECTUS SUPERSEDES AND REPLACES ANY EXISTING
SUPPLEMENTS TO THE PROSPECTUS. THIS SUPPLEMENT PROVIDES NEW AND ADDITIONAL
INFORMATION BEYOND THAT CONTAINED IN THE PROSPECTUS AND SHOULD BE RETAINED AND
READ IN CONJUNCTION WITH SUCH PROSPECTUS.
___________________________
The Prospectus is hereby amended and supplemented by the addition of the
following unaudited financial information for the period ended May 31, 1995.
FINANCIAL HIGHLIGHTS SEI INSTITUTIONAL MANAGED TRUST
UNAUDITED
For a Class A Share Outstanding Throughout the Period
<TABLE>
<CAPTION>
HIGH YIELD BOND PORTFOLIO
------------------------------------------
FOR THE PERIOD ENDED MAY 31,
------------------------------------------
1995(1)
<S> <C>
- --------------------------------------------------------------------------------
Net Asset Value,
Beginning of Period................... $ 10.00
- --------------------------------------------------------------------------------
Income from Investment Operations:
Net Investment Income................. 0.33
Net Realized and Unrealized Gains
on Securities........................ 0.52
- --------------------------------------------------------------------------------
Total from Investment Operations...... $ 0.85
- --------------------------------------------------------------------------------
Less Distributions:
Dividends from Net Investment Income.. (0.24)
- --------------------------------------------------------------------------------
Total Distributions................... $ (0.24)
- --------------------------------------------------------------------------------
Net Asset Value, End of Period............ $ 10.61
================================================================================
Total Return.............................. 8.58%
================================================================================
Ratios/Supplemental Data:
Net Assets, End of Period (000)........... $15,876
Ratio of Expenses to Average Net Assets... 0.69%*
</TABLE>
<PAGE>
<TABLE>
<S> <C>
Ratio of Expenses to Average Net Assets
(Excluding Waivers)...................... 0.82%*
Ratio of Net Investment Income to
Average Net Assets....................... 9.53%*
Ratio of Net Investment Income to
Average Net Assets (Excluding Waivers)... 9.40%*
Portfolio Turnover Rate................... 19%
================================================================================
</TABLE>
* Annualized
(1) High Yield Bond shares were offered beginning January 11, 1995.
__________________________
At meetings held on June 16, 1995 and adjourned until July 10, 1995, on August
11, 1995, and on November 13, 1995, Shareholders of the High Yield Bond, Bond
and Core Fixed Income Portfolios voted to amend, reclassify or eliminate certain
of the Portfolios' fundamental investment policies. With respect to the High
Yield Bond, Bond and Core Fixed Income Portfolios, the following amended
fundamental investment policies are inserted on page 11 of the Prospectus in
place of the current fundamental investment policies:
1. 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 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.
2. No Portfolio may purchase any securities which would cause more than 25%
of the total assets of the Portfolio to be invested in the securities of one or
more issuers conducting their principal business activities in the same
industry, provided that this limitation does not apply to investments in
obligations issued or guaranteed by the United States Government or its agencies
and instrumentalities; and provided further that with respect to the Real Estate
Securities Portfolio, that this limitation does not apply to investments in
securities of companies principally engaged in the real estate industry.
The foregoing percentage limitations will apply at the time of the purchase
of a security. Additional investment limitations are set forth in the Statement
of Additional Information.
__________________________
At the June/July and November meetings, Shareholders of the Bond and Core Fixed
Income Portfolios approved a new management structure wherein SFM will act as
the Portfolios' Investment Adviser. In connection with this change, the first
sentence of the description of SEI Financial Management Corporation on page 13
of the Prospectus is amended and restated to read as follows:
SEI Financial Management Corporation ("SFM") serves as investment adviser for
the Bond, High Yield Bond and Core Fixed Income Portfolios.
In addition, the first sentence of the second paragraph of the description of
SEI Financial Management Corporation is amended and restated to read as follows:
For these advisory services, SFM is entitled to a fee, which is calculated
daily and paid monthly, at an annual rate of .4875% of the High Yield Bond
Portfolio's average daily net assets, and at an annual rate of .275% of the Bond
and Core Fixed Income Portfolios' average daily net assets.
__________________________
2
<PAGE>
At the same meetings, Shareholders of the Bond and Core Fixed Income Portfolios
also approved the "Manager of Managers" structure wherein, upon the
recommendation of SFM, and subject to receipt by the Trust of exemptive relief
from the SEC, the Board of Trustees will be able to appoint additional and
replacement sub-advisers to the Portfolios without Shareholder approval. In
connection with this change, Shareholders of the Portfolios approved the
selection of the current investment adviser for the Portfolios as the investment
sub-adviser for the Portfolios. In addition, Shareholders of the Core Fixed
Income Portfolio approved the selection of two additional sub-advisers to the
Portfolio. Accordingly, the following sentences replace the corresponding
sentences in the "Investment Objectives and Policies" section of the Prospectus:
The Bond Portfolio's investment adviser is SEI Financial Management
Corporation and its investment sub-adviser is Boatmen's Trust Company.
The Core Fixed Income Portfolio's investment adviser is SEI Financial
Management Corporation and its investment sub-advisers are Western Asset
Management Company, BlackRock Financial Management, Inc. and Firstar Investment
Research and Management Company.
For a description of the new investment sub-adviser for the Bond Portfolio,
please read "The Advisers and Sub-Advisers" section of the Prospectus.
__________________________
At the meeting held on August 11, 1995, Shareholders of the High Yield Bond
Portfolio (the "Portfolio") approved an investment sub-advisory agreement with
BEA Associates ("BEA"). Shareholders were required to consider this investment
sub-advisory agreement as a result of a transaction whereby the U.S. operations
of CS First Boston Investment Management ("CSFBIM"), the former adviser of the
Portfolio, were transferred and integrated into BEA. This asset transfer
resulted in an assignment and termination of the investment sub-advisory
agreement between SEI Financial Management Corporation ("SFM") and CSFBIM.
The sub-advisory agreement with BEA has the same terms, including those relating
to fees and expenses payable to BEA, as the previous agreement with CSFBIM. BEA
was not compensated for its services to the Portfolio prior to Shareholder
approval. No changes to the high yield investment philosophy or process
employed in the Portfolio have been enacted as a result of this ownership
change.
References to CSFBIM as investment adviser are changed to reflect the fact that
BEA acts as the Portfolio's investment sub-adviser, and "The Advisers and Sub-
Advisers" section of the Prospectus is amended and the following language is
inserted in place of the description of CSFBIM:
BEA ASSOCIATES. BEA is a general partnership organized under the laws of the
- --------------
State of New York and, together with its predecessor firms, has been engaged in
the investment advisory business for over 50 years. CS Capital is an 80%
partner in BEA and Basic Appraisals, Inc., which is owned by members of BEA
management, is a 20% partner in BEA. CS Capital is a wholly-owned subsidiary of
Credit Suisse Investment Corporation, which is a wholly-owned subsidiary of
Credit Suisse. In turn, Credit Suisse is a subsidiary of CS Holding, 8
Paradeplatz, Zurich, Switzerland, a Swiss corporation, which is also the
ultimate parent of CSFBIM. No one person or entity possesses a controlling
interest in Basic Appraisals, Inc.
BEA is a diversified asset manager, handling global equity, balanced, fixed
income and derivative securities accounts for private individuals, as well as
corporate pension and profit-sharing plans, state pension funds, union funds,
endowments and other charitable institutions. As of December 31, 1994, BEA
managed approximately $21 billion in assets of which approximately $2.6 billion
are assets of fourteen registered investment companies.
The Portfolio's assets are managed by Richard J. Lindquist, C.F.A., the
Portfolio Manager. Mr. Lindquist has 11 years of investment management
experience, including 6 years of experience working with high yield bonds.
3
<PAGE>
COMPENSATION. Under the Investment Sub-Advisory Agreement, SFM pays BEA a fee,
- ------------
which is calculated and paid monthly, based on an annual percentage rate of
.3375% of the average monthly market value of assets of the High Yield Bond
Portfolio managed by BEA.
In addition, the last sentence of the "Investment Objectives and Policies - High
Yield Bond Portfolio" section on page 8 of the Prospectus is amended and the
following is inserted:
The Portfolio's investment adviser is SEI Financial Management Corporation
and its investment sub-adviser is BEA Associates.
As of the date of this supplement, "The Advisers and Sub-Advisers" section of
the Prospectus is amended and the following language is inserted:
__________________________
BLACKROCK FINANCIAL MANAGEMENT, INC. BlackRock Financial Management, Inc.
- ------------------------------------
("BlackRock"), a registered investment adviser, is a Delaware corporation with
its principal business address at 345 Park Avenue, 30th Floor, New York, New
York 10154. BlackRock's predecessor was founded in 1988, and as of July 31,
1995, BlackRock had $32.5 billion in assets under management. BlackRock is
wholly-owned by PNC Asset Management Group, Inc., a wholly-owned subsidiary of
PNC Bank, N.A. PNC Bank, N.A.'s ultimate parent is PNC Bank Corp., One PNC
Plaza, Pittsburgh, Pennsylvania 15265. BlackRock provides investment advice to
investment companies, trusts, charitable organizations, pension and profit
sharing plans and government entities.
The portion of the Core Fixed Income Portfolio's assets allocated to BlackRock
are managed by BlackRock's Portfolio Management Team. While all of BlackRock's
portfolios are team managed, the portfolio manager who has day-to-day
responsibility for the Portfolio is Keith Anderson. Mr. Anderson is a Managing
Director and Co-Head of Portfolio Management at BlackRock, and has 5 years
experience investing in fixed income securities.
COMPENSATION. Under the Investment Sub-Advisory Agreement, SFM pays BlackRock a
- ------------
fee, which is calculated and paid monthly, based on the annual percentage rate
of .15% of the average monthly market value of the portion of the assets of the
Core Fixed Income Portfolio managed by BlackRock.
FIRSTAR INVESTMENT RESEARCH AND MANAGEMENT COMPANY. Firstar Investment Research
- --------------------------------------------------
and Management Company ("FIRMCO"), is a registered investment adviser with its
principal business address at 777 East Wisconsin Avenue, Suite 800, Milwaukee,
Wisconsin 53202. FIRMCO was founded in 1986, and as of July 31, 1995, it had
approximately $14.7 billion in assets under management. FIRMCO is a wholly-
owned subsidiary of Firstar Corporation, a bank holding company located at 777
East Wisconsin Avenue, Milwaukee, Wisconsin 53202. FIRMCO's clients include
pension and profit sharing plans, trusts and estates and one other investment
company.
The portion of the Core Fixed Income Portfolio's assets allocated to FIRMCO are
managed by FIRMCO's Fixed Income Group. Mr. Charlie Groeschell manages the
portion of the Portfolio's assets allocated to FIRMCO on a day-to-day basis.
Mr. Groeschell, a Senior Vice President of FIRMCO, has been employed by FIRMCO
or its affiliates since 1983, and has 12 years experience in fixed income
investing.
COMPENSATION. Under the Investment Sub-Advisory Agreement, SFM pays FIRMCO a
- ------------
fee, which is calculated and paid monthly based on the annual percentage rate of
.10% of the average monthly market value of the portion of the assets of the
Core Fixed Income Portfolio managed by FIRMCO.
__________________________
The "General Investment Policies" section on page 9 of the Prospectus is amended
and restated and the following language is inserted:
4
<PAGE>
INVESTMENT COMPANY SECURITIES - The High Yield Bond, Bond and Core Fixed Income
Portfolios may purchase investment company securities, which will result in the
layering of expenses. There are legal limits on the amount of such securities
that may be acquired by a Portfolio.
OPTIONS AND FUTURES - The High Yield Bond, Bond and Core Fixed Income Portfolios
may purchase or write options, futures and options on futures.
SECURITIES LENDING - The High Yield Bond, Bond and Core Fixed Income Portfolios
may lend their securities in order to realize additional income.
WARRANTS - Consistent with any applicable state law limitations, each of the
Core Fixed Income, Bond and High Yield Bond Portfolios may purchase warrants in
order to increase the Portfolio's total return.
__________________________
The first sentence of the second paragraph of "The Manager and Shareholder
Servicing Agent" section on page 11 of the Prospectus is amended and restated to
read as follows:
For its management services, SFM is entitled to a fee which is calculated
daily and paid monthly at an annual rate of .28% of the average daily net assets
of the Bond and Core Fixed Income Portfolios, and at an annual rate of .35% of
the average daily net assets of the High Yield Bond Portfolio.
__________________________
The following should be read in conjunction with the section of the Prospectus
entitled "Purchase and Redemption of Shares":
Because excessive trading (including short-term "market timing" trading) can
hurt a Portfolio's performance, each Portfolio may refuse purchase orders from
any shareholder account if the accountholder has been advised that previous
purchase and redemption transactions were considered excessive in number or
amount. Accounts under common control or ownership, including those with the
same taxpayer identification number and those administered so as to redeem or
purchase shares based upon certain predetermined market indicators, will be
considered one account for this purpose.
__________________________
The following information is inserted under the "General Information - The
Trust" section on page 19 of the Prospectus:
Certain shareholders in one or more of the Portfolios may obtain asset
allocation services with respect to their investments in such Portfolios. If a
sufficient amount of a Portfolio's assets are subject to such asset allocation
services, the Portfolio may incur higher transaction costs and a higher
portfolio turnover rate that would otherwise be anticipated as a result of
redemptions and purchases of Portfolio shares pursuant to such services.
__________________________
The following paragraph should be inserted in place of the second paragraph of
the "Description of Permitted Investments and Risk Factors - Futures and Options
on Futures" section on page 23 of the Prospectus:
A stock index futures contract is a bilateral agreement pursuant to which two
parties agree to take or make delivery of an amount of cash equal to a specified
dollar amount times the difference between the stock index value at the close of
trading of the contract and the price at which the futures contract is
originally struck. No physical delivery of the stocks comprising the Index is
made; generally contracts are closed out prior to the expiration date of the
contract. No price is paid upon entering into futures contracts. Instead, a
Portfolio would be required to deposit an amount of cash or U.S. Treasury
securities known as "initial margin." Subsequent
5
<PAGE>
payments, called "variation margin," to and from the broker, would be made on a
daily basis as the value of the futures position varies (a process known as
"marking to market"). The margin is in the nature of a performance bond or
good-faith deposit on a futures contract.
The following should be inserted as the third paragraph of the "Description of
Permitted Investment and Risk Factors - Futures and Options on Futures" section
on page 23 of the Prospectus:
In order to avoid leveraging and related risks, when a Portfolio purchases
futures contracts, it will collateralize its position by depositing an amount of
cash or cash equivalents, equal to the market value of the futures positions
held, less margin deposits, in a segregated account with the Trust's custodian.
Collateral equal to the current market value of the futures position will be
marked to market on a daily basis.
The last sentence of the "Description of Permitted Investments and Risk Factors
- - Futures and Options on Futures" section on page 23 of the Prospectus is
amended and restated and the follow language is inserted:
Each Portfolio may invest in futures and options on futures.
The last sentence of the "Description of Permitted Investments and Risk Factors
- - Options" section on page 29 of the Prospectus is amended and restated to read
as follows:
Each Portfolio may invest in options.
The last sentence of the "Description of Permitted Investments and Risk Factors
- - Securities Lending" section on page 29 of the Prospectus is amended and
restated to read as follows:
Each Portfolio may lend their securities.
The last sentence of the "Description of Permitted Investments and Risk Factors
- - Warrants" section on page 31 of the Prospectus is amended and restated to read
as follows:
Each Portfolio may invest in warrants.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
6
<PAGE>
SEI INSTITUTIONAL MANAGED TRUST
HIGH YIELD BOND PORTFOLIO
CORE FIXED INCOME PORTFOLIO
BOND PORTFOLIO
SUPPLEMENT DATED NOVEMBER 14, 1995 TO
THE CLASS D PROSPECTUS
DATED JANUARY 31, 1995
THIS SUPPLEMENT TO THE PROSPECTUS SUPERSEDES AND REPLACES ANY EXISTING
SUPPLEMENTS TO THE PROSPECTUS. THIS SUPPLEMENT PROVIDES NEW AND ADDITIONAL
INFORMATION BEYOND THAT CONTAINED IN THE PROSPECTUS AND SHOULD BE RETAINED AND
READ IN CONJUNCTION WITH SUCH PROSPECTUS.
________________________________
EFFECTIVE MARCH 6, 1995, THE NAME OF THE PROVANTAGE CLASS OF SHARES WAS CHANGED
TO CLASS D.
________________________________
At meetings held on June 16, 1995 and adjourned until July 10, 1995, on August
11, 1995, and November 13, 1995, Shareholders of the High Yield Bond, Bond and
Core Fixed Income Portfolios voted to amend, reclassify or eliminate certain of
the Portfolios' fundamental investment policies. With respect to the High Yield
Bond, Bond and Core Fixed Income Portfolios, the following amended fundamental
investment policies are inserted on page 15 of the Prospectus in place of the
current fundamental investment policies:
1. 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 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.
2. No Portfolio may purchase any securities which would cause more than
25% of the total assets of the Portfolio to be invested in the securities of one
or more issuers conducting their principal business activities in the same
industry, provided that this limitation does not apply to investments in
obligations issued or guaranteed by the United States Government or its agencies
and instrumentalities; and provided further that with respect to the Real Estate
Securities Portfolio, that this limitation does not apply to investments in
securities of companies principally engaged in the real estate industry.
The foregoing percentage limitations will apply at the time of the purchase
of a security. Additional investment limitations are set forth in the Statement
of Additional Information.
________________________________
At the June/July and November meetings, Shareholders of the Bond and Core Fixed
Income Portfolios approved a new management structure wherein SFM will act as
the Portfolios' Investment Adviser. In connection with this change, the first
sentence of the description of SEI Financial Management Corporation on page 18
of the Prospectus is amended and restated to read as follows:
<PAGE>
SEI Financial Management Corporation ("SFM") serves as investment adviser
for the Bond, High Yield Bond and Core Fixed Income Portfolios.
In addition, the first sentence of the second paragraph of the description of
SEI Financial Management Corporation is amended and restated to read as follows:
For these advisory services, SFM is entitled to a fee, which is calculated
daily and paid monthly, at an annual rate of .4875% of the High Yield Bond
Portfolio's average daily net assets, and at an annual rate of .275% of the Bond
and Core Fixed Income Portfolios' average daily net assets.
________________________________
At the same meetings, Shareholders of the Bond and Core Fixed Income Portfolios
also approved the "Manager of Managers" structure wherein, upon the
recommendation of SFM, and subject to receipt by the Trust of exemptive relief
from the SEC, the Board of Trustees will be able to appoint additional and
replacement sub-advisers to the Portfolios without Shareholder approval. In
connection with this change, Shareholders of the Portfolios approved the
selection of the current investment adviser for the Portfolios as the investment
sub-adviser for the Portfolios. In addition, Shareholders of the Core Fixed
Income Portfolio approved the selection of two additional sub-advisers to the
Portfolio. Accordingly, the following sentences replace the corresponding
sentences in the "Investment Objectives and Policies" section of the Prospectus:
The Bond Portfolio's investment adviser is SEI Financial Management
Corporation and its investment sub-adviser is Boatmen's Trust Company.
The Core Fixed Income Portfolio's investment adviser is SEI Financial Management
Corporation and its investment sub-advisers are Western Asset Management
Company, BlackRock Financial Management, Inc. and Firstar Investment Research
and Management Company.
For a description of the new investment sub-adviser for the Bond Portfolio,
please read "The Advisers and Sub-Advisers" section of the Prospectus.
________________________________
At the meeting held on August 11, 1995, Shareholders of the High Yield Bond
Portfolio (the "Portfolio") approved an investment sub-advisory agreement with
BEA Associates ("BEA"). Shareholders were required to consider this investment
sub-advisory agreement as a result of a transaction whereby the U.S. operations
of CS First Boston Investment Management ("CSFBIM"), the former adviser of the
Portfolio, were transferred and integrated into BEA. This asset transfer
resulted in an assignment and termination of the investment sub-advisory
agreement between SEI Financial Management Corporation ("SFM") and CSFBIM.
The sub-advisory agreement with BEA has the same terms, including those relating
to fees and expenses payable to BEA, as the previous agreement with CSFBIM. BEA
was not compensated for its services to the Portfolio prior to Shareholder
approval. No changes to the high yield investment philosophy or process
employed in the Portfolio were enacted as a result of this ownership change.
"The Advisers and Sub-Advisers" section of the Prospectus is amended and the
following language is inserted in place of the description of CSFBIM:
BEA ASSOCIATES. BEA is a general partnership organized under the laws of the
- --------------
State of New York and, together with its predecessor firms, has been engaged in
the investment advisory business for over 50 years. CS Capital is an 80%
partner in BEA and Basic Appraisals, Inc., which is owned by members of BEA
Management, is a 20% partner in BEA. CS Capital is a wholly-owned subsidiary of
Credit Suisse Investment Corporation, which
2
<PAGE>
is a wholly-owned subsidiary of Credit Suisse. In turn, Credit Suisse is a
subsidiary of CS Holding, 8 Paradeplatz, Zurich, Switzerland, a Swiss
corporation, which is also the ultimate parent of CSFBIM. No one person or
entity possesses a controlling interest in Basic Appraisals, Inc.
BEA is a diversified asset manager, handling global equity, balanced, fixed
income and derivative securities accounts for private individuals, as well as
corporate pension and profit-sharing plans, state pension funds, union funds,
endowments and other charitable institutions. As of December 31, 1994, BEA
managed approximately $21 billion in assets of which approximately $2.6 billion
are assets of fourteen registered investment companies.
The Portfolio's assets are managed by Richard J. Lindquist, C.F.A., the
Portfolio Manager. Mr. Lindquist has 11 years of investment management
experience, including 6 years of experience working with high yield bonds.
COMPENSATION. Under the Investment Sub-Advisory Agreement, SFM pays BEA a fee,
- ------------
which is calculated and paid monthly, based on an annual percentage rate of
.3375% of the average monthly market value of assets of the High Yield Bond
Portfolio managed by BEA.
As of the date of this supplement, "The Advisers and Sub-Advisers" section of
the Prospectus is amended and the following language is inserted:
BLACKROCK FINANCIAL MANAGEMENT, INC. BlackRock Financial Management, Inc.
- ------------------------------------
("BlackRock"), a registered investment adviser, is a Delaware corporation with
its principal business address at 345 Park Avenue, 30th Floor, New York, New
York 10154. BlackRock's predecessor was founded in 1988, and as of July 31,
1995, BlackRock had $32.5 billion in assets under management. BlackRock is
wholly-owned by PNC Asset Management Group, Inc., a wholly-owned subsidiary of
PNC Bank, N.A. PNC Bank, N.A.'s ultimate parent is PNC Bank Corp., One PNC
Plaza, Pittsburgh, Pennsylvania 15265. BlackRock provides investment advice to
investment companies, trusts, charitable organizations, pension and profit
sharing plans and government entities.
The portion of the Core Fixed Income Portfolio's assets allocated to BlackRock
are managed by BlackRock's Portfolio Management Team. While all of BlackRock's
portfolios are team managed, the portfolio manager who has day-to-day
responsibility for the Portfolio is Keith Anderson. Mr. Anderson is a Managing
Director and Co-Head of Portfolio Management at BlackRock, and has 5 years
experience investing in fixed income securities.
COMPENSATION. Under the Investment Sub-Advisory Agreement, SFM pays BlackRock a
- ------------
fee, which is calculated and paid monthly, based on the annual percentage rate
of .15% of the average monthly market value of the portion of the assets of the
Core Fixed Income Portfolio managed by BlackRock.
FIRSTAR INVESTMENT RESEARCH AND MANAGEMENT COMPANY. Firstar Investment Research
- --------------------------------------------------
and Management Company ("FIRMCO"), is a registered investment adviser with its
principal business address at 777 East Wisconsin Avenue, Suite 800, Milwaukee,
Wisconsin 53202. FIRMCO was founded in 1986, and as of July 31, 1995, it had
approximately $14.7 billion in assets under management. FIRMCO is a wholly-
owned subsidiary of Firstar Corporation, a bank holding company located at 777
East Wisconsin Avenue, Milwaukee, Wisconsin 53202. FIRMCO's clients include
pension and profit sharing plans, trusts and estates and one other investment
company.
The portion of the Core Fixed Income Portfolio's assets allocated to FIRMCO are
managed by FIRMCO's Fixed Income Group. Mr. Charlie Groeschell manages the
portion of the Portfolio's assets allocated to FIRMCO on a day-to-day basis.
Mr. Groeschell, a Senior Vice President of FIRMCO, has been employed by FIRMCO
or its affiliates since 1983, and has 12 years experience in fixed income
investing.
3
<PAGE>
COMPENSATION. Under the Investment Sub-Advisory Agreement, SFM pays FIRMCO a
- ------------
fee, which is calculated and paid monthly based on the annual percentage rate of
.10% of the average monthly market value of the portion of the assets of the
Core Fixed Income Portfolio managed by FIRMCO.
________________________________
The sentence listing CS First Boston Investment Management as investment sub-
adviser for the High Yield Bond Portfolio in the "Management Profile" section on
page 3 of the Prospectus is amended and restated and the following language is
inserted:
BEA ASSOCIATES serves as investment sub-adviser to the High Yield Bond
Portfolio.
In addition, the description of SEI Financial Management Corporation in the same
section is amended and restated to read as follows:
SEI FINANCIAL MANAGEMENT CORPORATION serves as the investment adviser of
the Core Fixed Income, High Yield Bond and Bond Portfolios.
Furthermore, the sentence listing Western Asset Management Company as investment
adviser to the Core Fixed Income Portfolio is deleted, and the following
language is inserted:
BLACKROCK FINANCIAL MANAGEMENT, INC., FIRSTAR INVESTMENT RESEARCH AND
MANAGEMENT COMPANY and WESTERN ASSET MANAGEMENT COMPANY serve as investment sub-
advisers to the Core Fixed Income Portfolio.
________________________________
The "General Investment Policies" section on page 14 of the Prospectus is
amended and restated and the following language is inserted:
INVESTMENT COMPANY SECURITIES - High Yield Bond, Bond and Core Fixed Income
Portfolios may purchase investment company securities, which will result in the
layering of expenses. There are legal limits on the amount of such securities
that may be acquired by a Portfolio.
OPTIONS AND FUTURES - The High Yield Bond, Bond and Core Fixed Income Portfolios
may purchase or write options, futures and options on futures.
SECURITIES LENDING - The High Yield Bond, Bond and Core Fixed Income Portfolios
may lend their securities in order to realize additional income.
WARRANTS - Consistent with any applicable state law limitations, each of the
Core Fixed Income, Bond and High Yield Bond Portfolios may purchase warrants in
order to increase the Portfolio's total return.
________________________________
The first sentence of the second paragraph of "The Manager and Shareholder
Servicing Agent" section on page 16 of the Prospectus is amended and restated to
read as follows:
For its management services, SFM is entitled to a fee which is calculated
daily and paid monthly at an annual rate of .28% of the average daily net assets
of the Bond and Core Fixed Income Portfolios, and at an annual rate of .35% of
the average daily net assets of the High Yield Bond Portfolio.
4
<PAGE>
________________________________
The following should be read in conjunction with the section of the Prospectus
entitled "Your Account and Doing Business with ProVantage Funds - Exchanging
Shares":
Because excessive trading (including short-term "market timing" trading)
can hurt a Portfolio's performance, each Portfolio may refuse purchase orders
from any shareholder account if the accountholder has been advised that previous
purchase and redemption transactions were considered excessive in number or
amount. Accounts under common control or ownership, including those with the
same taxpayer identification number and those administered so as to redeem or
purchase shares based upon certain predetermined market indicators, will be
considered one account for this purpose.
________________________________
The following information is inserted under the "General Information - The
Trust" section on page 27 of the Prospectus:
Certain shareholders in one or more of the Portfolios may obtain asset
allocation services with respect to their investments in such Portfolios. If a
sufficient amount of a Portfolio's assets are subject to such asset allocation
services, the Portfolio may incur higher transaction costs and a higher
portfolio turnover rate that would otherwise be anticipated as a result of
redemptions and purchases of Portfolio shares pursuant to such services.
________________________________
EFFECTIVE MARCH 6, 1995, DST SYSTEMS, INC. ("DST") WILL SERVE AS TRANSFER AGENT
AND DIVIDEND DISBURSING AGENT TO THE CLASS D SHARES OF THE TRUST.
FUND CORRESPONDENCE - All shareholder applications, checks, and general
correspondence (such as address changes or account maintenance issues) should be
directed to:
SIMT Class D Funds
c/o DST Systems, Inc.
P.O. Box 419240
Kansas City, MO 64141-6240
TRANSACTION PROCESSING - Shareholders may continue to conduct telephone
transactions (including purchases, redemptions and wires) by calling 1-800-437-
6016. Shareholders purchasing shares of the portfolio(s) by Fed wire must
request their bank to transmit the funds to:
United Missouri Bank of Kansas City, N.A.
ABA #10-10-00695
For Account #98-7060-100-1
Further Credit: [Portfolio Name]
Account Name
Account Number
GENERAL ACCOUNT INQUIRIES - SEI Financial Management Corporation will continue
to respond to telephone inquiries regarding account balance and general fund-
related information. Investor Services Representatives may be contacted by
calling 1-800-437-6016.
________________________________
5
<PAGE>
The following should be inserted in place of the second paragraph of the
"Description of Permitted Investments and Risk Factors - Futures and Options on
Futures" section on page 31 of the Prospectus:
A stock index futures contract is a bilateral agreement pursuant to which
two parties agree to take or make delivery of an amount of cash equal to a
specified dollar amount times the difference between the stock index value at
the close of trading of the contract and the price at which the futures contract
is originally struck. No physical delivery of the stocks comprising the Index is
made; generally contracts are closed out prior to the expiration date of the
contract. No price is paid upon entering into futures contracts. Instead, a
Portfolio would be required to deposit an amount of cash or U.S. Treasury
securities known as "initial margin." Subsequent payments, called "variation
margin," to and from the broker, would be made on a daily basis as the value of
the futures position varies (a process known as "marking to market"). The margin
is in the nature of a performance bond or good-faith deposit on a futures
contract.
The following should be inserted as the third paragraph of the "Description of
Permitted Investments and Risk Factors - Futures and Options on Futures" section
on page 31 of the Prospectus:
In order to avoid leveraging and related risks, when a Portfolio purchases
futures contracts, it will collateralize its position by depositing an amount of
cash or cash equivalents, equal to the market value of the futures positions
held, less margin deposits, in a segregated account with the Trust's custodian.
Collateral equal to the current market value of the futures position will be
marked to market on a daily basis.
The last sentence of the "Description of Permitted Investments and Risk Factors
- - Futures and Options on Futures" section on page 31 of the Prospectus is
amended and restated to read as follows:
Each Portfolio may invest in futures and options on futures.
The last sentence of the "Description of Permitted Investments and Risk Factors
- - Options" section on page 35 of the Prospectus is amended and restated to read
as follows:
Each Portfolio may invest in options.
The last sentence of the "Description of Permitted Investments and Risk Factors
- - Securities Lending" section on page 37 of the Prospectus is amended and
restated to read as follows:
Each Portfolio may lend their securities.
The last sentence of the "Description of Permitted Investments and Risk Factors
- - Warrants" section on page 39 of the Prospectus is amended and restated to read
as follows:
Each Portfolio may invest in warrants.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
6
<PAGE>
SEI INSTITUTIONAL MANAGED TRUST
SUPPLEMENT DATED NOVEMBER 14, 1995, TO
THE STATEMENT OF ADDITIONAL INFORMATION
DATED JANUARY 31, 1995
THIS SUPPLEMENT TO THE STATEMENT OF ADDITIONAL INFORMATION SUPERSEDES AND
REPLACES ANY EXISTING SUPPLEMENTS TO THE STATEMENT OF ADDITIONAL INFORMATION.
THIS SUPPLEMENT PROVIDES NEW AND ADDITIONAL INFORMATION BEYOND THAT CONTAINED IN
THE STATEMENT OF ADDITIONAL INFORMATION AND SHOULD BE RETAINED AND READ IN
CONJUNCTION WITH SUCH STATEMENT OF ADDITIONAL INFORMATION.
_______________________________
EFFECTIVE MARCH 6, 1995, THE NAME OF THE PROVANTAGE FUNDS CLASS OF SHARES WAS
CHANGED TO CLASS D.
_______________________________
At meetings held on June 16, 1995 and adjourned until July 10, 1995, on August
11, 1995 and adjourned until August 14, 1995, and on November 13, 1995,
Shareholders of the Large Cap Value, Capital Growth, Capital Appreciation,
Equity Income, Balanced, Small Cap Growth, Small Cap Value, High Yield Bond,
Bond, Core Fixed Income, Mid-Cap, and Large Cap Growth Portfolios voted to
amend, reclassify or eliminate certain fundamental investment policies. In
connection with these changes, and with respect to the Large Cap Value, Capital
Growth, Capital Appreciation, Equity Income, Balanced, Small Cap Growth, Small
Cap Value, High Yield Bond, Core Fixed Income, Bond, Mid-Cap, and Large Cap
Growth Portfolios, the "Investment Limitations -- Fundamental Policies" section
of the Statement of Additional Information is amended and the following language
is inserted on page S-12:
Each Portfolio may not:
1. 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.
2. 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.
3. 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.
4. 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").
5. Act as an underwriter of securities of other issuers except as it may be
deemed an underwriter in selling a portfolio security.
<PAGE>
6. Invest in interests in oil, gas, or other mineral exploration or
development programs and oil, gas or mineral leases.
_______________________________
In connection with the foregoing fundamental policy changes, the Trustees have
adopted the following non-fundamental policies for the Large Cap Value, Capital
Growth, Capital Appreciation, Equity Income, Balanced, Small Cap Growth, Small
Cap Value, High Yield Bond, Bond, Mid-Cap, Real Estate Securities, and Large Cap
Growth Portfolios, which policies may be changed without Shareholder approval.
Accordingly, the "Investment Limitations -- Non-Fundamental Policies" section on
page S-12 is amended and restated to read as follows:
Each Portfolio may not:
1. Pledge, mortgage or hypothecate assets except to secure borrowings
permitted by the Portfolio's fundamental limitation on borrowing.
2. Invest in companies for the purpose of exercising control.
3. 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.
4. 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.
5. 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.
6. 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.
7. 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.
8. Purchase securities 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. Securities exempted from registration upon re-sale by Rule 144A
under the 1933 Act are not deemed to be restricted securities for purposes
of this limitation.
2
<PAGE>
ADDITIONAL RESTRICTIONS
The following are non-fundamental investment limitations that are currently
required by one or more states in which the Trust sells shares of the
Portfolios. These limitations are in addition to, and in some cases more
restrictive than, the fundamental and non-fundamental investment limitations
listed above. A limitation may be changed or eliminated without shareholder
approval if the relevant state changes or eliminates its policy regarding such
investment restriction. As long as a Portfolio's shares are registered for sale
in such states, it may not:
1. Invest more than 5% of its net assets in warrants; provided that of this 5%
no more than 2% will be in warrants that are not listed on the New York
Stock Exchange or the American Stock Exchange.
2. Invest in the securities of other investment companies except by purchase
in the open market where no commission or profit to a sponsor or dealer
results from the purchase other than the customary broker's commission, or
except when the purchase is part of a plan of merger, consolidation,
reorganization or acquisition.
3. Invest more than 15% of its total assets in illiquid securities, including
securities which are not readily marketable or are restricted.
4. Invest more than 15% of its assets in restricted securities. For purposes
of this limitation, securities exempted from registration under the 1933
Act, including Rule 144A securities, are considered to be restricted
securities.
_______________________________
In addition to amending and reclassifying certain of the Trust's fundamental
investment policies, Shareholders of the Bond Portfolio voted to eliminate that
Portfolio's fundamental investment limitations on investing in convertible
securities and on investing solely in securities listed as "appropriate"
investments.
_______________________________
The following information is inserted under "Portfolio Transactions" in the
Statement of Additional Information:
In addition, SFM has adopted a policy respecting the receipt of research and
related products and services in connection with transactions effected for
Portfolios operating within the "Manager of Managers" structure. Under this
policy, SFM and the various firms that serve as sub-advisers to certain
Portfolios of the Trust, in the exercise of joint investment discretion over the
assets of a Portfolio, will direct a substantial portion of a Portfolio's
brokerage to the Distributor in consideration of the Distributor's provision of
research and related products to SFM for use in performing its advisory
responsibilities. All such transactions directed to the Distributor must be
accomplished in a manner that is consistent with the Trust's policy to achieve
best net results, and must comply with the Trust's procedures regarding the
execution of transactions through affiliated brokers.
_______________________________
Martingale Asset Management, L.P., Apodaca-Johnston Capital Management, Wall
Street Associates, Boston Partners Asset Management, L.P., Firstar Investment
Research and Management Company, and BlackRock Financial Management, Inc. are
added to, and BEA Associates replaces CS First Boston Investment Management on
the list of advisers on the front page of the Statement of Additional
Information.
_______________________________
3
<PAGE>
The first sentence of the "Description of Permitted Investments - Securities
Lending" section on page S-7 of the Statement of Additional Information is
amended and restated to read as follows:
SECURITIES LENDING - In order to generate additional income, each Portfolio may
lend its securities pursuant to agreements requiring that the loans be
continuously secured by cash, securities of the U.S. Government or its agencies,
or any combination of cash and such securities in an amount at least equal to
the market value of the securities lent.
_______________________________
The Statement of Additional Information for SEI Institutional Managed Trust is
hereby amended and supplemented by the following unaudited financial statements
of the Large Cap Growth and Small Cap Value Portfolios for the period ended
March 31, 1995, and of the High Yield Bond Portfolio for the period ended May
31, 1995.
4
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
SEI Institutional Managed Trust -- March 31, 1995 (Unaudited)
LARGE CAP GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Value
Description Shares (000)
- ----------------------------------------------
<S> <C> <C>
COMMON STOCKS -- 96.3%
AIR TRANSPORTATION -- 0.5%
AMR* 10,550 $ 683
--------
AIRCRAFT -- 1.2%
Allied Signal 38,500 1,511
--------
AUTOMOTIVE -- 0.5%
Magna International, Cl A 18,800 717
--------
BANKS -- 2.7%
BankAmerica 29,650 1,431
Citicorp 14,350 610
First Chicago 30,200 1,513
--------
3,554
--------
BEAUTY PRODUCTS -- 5.2%
Avon Products* 11,000 666
Colgate Palmolive 23,000 1,518
Procter & Gamble 69,650 4,614
--------
6,798
--------
BROADCASTING, NEWSPAPERS & ADVERTISING --
2.1%
Comcast 62,000 969
Tele-Communications* 83,700 1,757
--------
2,726
--------
CHEMICALS -- 3.2%
Air Products & Chemicals 9,900 516
Monsanto 17,000 1,364
Rohm & Haas 34,000 2,006
Union Carbide 12,000 368
--------
4,254
--------
COMMUNICATIONS EQUIPMENT -- 3.9%
General Instrument* 48,000 1,668
L M Ericsson Telephone 11,900 736
Motorola 42,400 2,316
Northern Telecom LTD 9,800 371
--------
5,091
--------
COMPUTERS & SERVICES -- 7.5%
Cisco Systems* 85,000 3,241
Compaq Computer* 64,600 2,229
Informix* 22,000 756
Lotus Development* 6,500 249
Microsoft* 17,650 1,255
Oracle Systems* 52,000 1,625
Silicon Graphics* 16,000 568
--------
9,923
--------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Description Shares Value (000)
- ---------------------------------------------------
<S> <C> <C>
CONTAINERS & PACKAGING -- 0.4%
Crown Cork & Seal* 13,650 $ 599
--------
DRUGS -- 9.0%
Abbott Laboratories 57,900 2,063
Centocor* 23,500 373
Forest Labs* 12,400 591
Genentech* 6,700 314
Johnson & Johnson 18,300 1,089
Merck 95,400 4,068
Pfizer 39,650 3,400
--------
11,898
--------
ELECTRICAL TECHNOLOGY -- 0.6%
Duracell 16,400 734
--------
ENTERTAINMENT -- 1.2%
Walt Disney 30,000 1,601
--------
ENVIRONMENTAL SERVICES -- 0.5%
WMX Technologies 23,450 645
--------
FINANCIAL SERVICES -- 3.0%
FHLMC 19,000 1,150
FNMA 25,950 2,111
Household International 15,450 672
--------
3,933
--------
FOOD, BEVERAGE & TOBACCO -- 8.3%
Coca-Cola 68,450 3,867
Kellogg 19,000 1,109
Pepsico 47,000 1,833
Philip Morris 64,250 4,193
--------
11,002
--------
GAS/NATURAL GAS -- 0.9%
Enron 37,400 1,234
--------
HOTELS & LODGING -- 0.6%
Hilton Hotels 10,700 793
--------
HOUSEHOLD PRODUCTS -- 1.1%
Gillette 18,300 1,494
--------
INSURANCE -- 5.4%
American International Group 33,900 3,534
General RE 13,850 1,828
MGIC Investment 6,100 249
NAC RE 12,500 378
Travelers 31,000 1,197
--------
7,186
--------
</TABLE>
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
SEI Institutional Managed Trust -- March 31, 1995 (Unaudited)
LARGE CAP GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Description Shares Value (000)
- ------------------------------------------------------
<S> <C> <C>
MACHINERY -- 7.5%
Caterpillar 26,900 $ 1,496
Emerson Electric 9,350 622
General Electric 129,550 7,012
Stewart & Stevenson Services 20,100 709
--------
9,839
--------
MEDICAL PRODUCTS & SERVICES -- 4.3%
Columbia HCA Healthcare 42,000 1,806
Medtronic 16,150 1,120
United Healthcare 59,450 2,779
--------
5,705
--------
MISCELLANEOUS BUSINESS SERVICES -- 0.7%
Computer Associates International 8,850 525
Sybase* 9,500 380
--------
905
--------
PAPER & PAPER PRODUCTS -- 0.3%
Scott Paper 4,300 384
--------
PETROLEUM & FUEL PRODUCTS -- 0.8%
Apache 10,500 286
Western Atlas* 17,500 755
--------
1,041
--------
PETROLEUM REFINING -- 1.4%
Amoco 15,150 964
Mobil 9,450 875
--------
1,839
--------
PHOTOGRAPHIC EQUIPMENT & SUPPLIES -- 1.4%
Eastman Kodak 23,000 1,222
Xerox 5,700 669
--------
1,891
--------
PRINTING & PUBLISHING -- 0.6%
Time Warner 19,950 753
--------
PROFESSIONAL SERVICES -- 0.7%
First Financial Management 13,800 997
--------
RAILROADS -- 1.5%
Burlington Northern 13,000 772
Conrail 7,000 393
CSX 10,600 835
--------
2,000
--------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Face Market
Description Amount (000) Value (000)
- -----------------------------------------------------------------------
<S> <C> <C>
RETAIL -- 8.3%
Autozone* 11,500 $ 286
Dayton Hudson 19,450 1,391
Home Depot 60,000 2,655
Kohl's* 19,000 841
McDonald's 73,300 2,501
Pep Boys-Manny Moe & Jack 17,600 546
Wal-Mart 108,150 2,757
--------
10,977
--------
RUBBER & PLASTIC -- 0.9%
Illinois Tool Works 24,050 1,175
--------
SEMI-CONDUCTORS/INSTRUMENTS -- 3.4%
Intel 52,750 4,477
--------
STEEL & STEEL WORKS -- 2.0%
Aluminum Company of America 17,300 716
Inco LTD 20,550 573
Nucor 23,500 1,321
--------
2,610
--------
TELEPHONES & TELECOMMUNICATION -- 4.7%
Airtouch Communications* 56,850 1,549
AT&T 35,500 1,837
Bellsouth 6,800 405
MCI 82,100 1,693
US West 16,900 676
--------
6,160
--------
Total Common Stocks
(Cost $121,253) 127,129
--------
U.S. TREASURY OBLIGATIONS -- 6.9%
U.S. Treasury Bill
5.449%, 04/06/95 $9,174 9,165
--------
Total U.S. Treasury Obligations (Cost $9,167) 9,165
--------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 2.5%
FHLB Discount Notes
6.100%, 04/03/95 2,000 1,998
6.050%, 04/05/95 200 200
FHLMC
5.920%, 04/10/95 100 100
5.910%, 04/13/95 189 189
FNMA
5.930%, 04/19/95 790 788
--------
Total U.S. Government Agency
Obligations
(Cost $3,275) 3,275
--------
Total Investments -- 105.7%
(Cost $133,693) 139,569
--------
</TABLE>
2
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares/Face Value
Description Amount (000) (000)
- -------------------------------------------------------------------------------
<S> <C> <C>
OTHER ASSETS AND LIABILITIES -- -5.7%
Other Assets and Liabilities, Net $ (7,612)
--------
NET ASSETS:
Portfolio shares of Class A (unlimited authorization --
no par value) based on 12,235,093 outstanding shares
of beneficial interest 125,724
Undistributed net investment income 402
Accumulated net realized loss on investments (45)
Net unrealized appreciation on investments 5,876
--------
Total Net Assets -- 100.0% $131,957
========
Net Asset Value, Offering and Redemption Price Per
Share -- Class A $ 10.79
========
</TABLE>
* Non-income producing security
FHLB Federal Home Loan Bank
FHLMC Federal Home Loan Mortgage Corporation
FNMA Federal National Mortgage Association
Cl Class
LTD Limited
SMALL CAP VALUE PORTFOLIO
<TABLE>
<S> <C> <C>
COMMON STOCKS -- 91.3%
AIRCRAFT -- 0.5%
Coltec Industries* 15,100 $ 260
-------
APPAREL/TEXTILES -- 6.8%
Cone Mills* 21,600 265
Congoleum, Cl A* 31,300 470
Conso Products* 21,000 294
Crown Crafts 25,200 428
Jones Apparel* 11,500 311
Lydall* 20,200 681
Oneita Industries* 18,700 227
Springs Industries 10,300 386
St. John Knits 4,800 175
-------
3,237
-------
AUTOMOTIVE -- 0.2%
Stant 7,600 105
-------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Description Shares Value (000)
- --------------------------------------------------------------------------------
<S> <C> <C>
BANKS -- 8.2%
Albank Financial 15,500 $ 388
Amfed Financial 23,900 555
BankAtlantic Bancorp 17,000 264
Banknorth Group 18,100 425
DS Bancor* 6,930 168
First Federal Bancshares* 19,000 221
Green Point Financial 18,500 428
Long Island Bancorp* 22,400 392
Mercantile Bankshares 17,800 394
MLF Bancorp* 18,900 302
Southern National 19,207 382
-------
3,919
-------
CHEMICALS -- 2.4%
Bush Boake Allen* 14,700 397
IMC Global 12,100 591
Vigoro 4,600 170
-------
1,158
-------
COMMUNICATIONS EQUIPMENT -- 1.7%
Harmon Industries* 15,100 211
Plantronics* 21,400 592
-------
803
-------
COMPUTERS & SERVICES -- 0.9%
Franklin Electric Publishing* 15,400 433
-------
CONSUMER PRODUCTS -- 4.4%
Maxwell Shoe* 13,100 134
National-Standard* 27,400 308
Nine West* 14,900 440
Nu-Kote Holding, Cl A* 32,100 746
Velcro Industries 7,300 433
-------
2,061
-------
CONTAINERS & PACKAGING -- 2.3%
Sealright 14,800 281
US Can* 39,000 829
-------
1,110
-------
ENTERTAINMENT -- 2.4%
Casino America* 18,600 233
Dick Clark Productions* 27,000 243
Harvey's Casinos 6,000 111
King World Productions* 10,800 425
Spelling Entertainment 12,600 129
-------
1,141
-------
</TABLE>
3
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
SEI Institutional Managed Trust -- March 31, 1995 (Unaudited)
SMALL CAP VALUE PORTFOLIO
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Description Shares Value (000)
- -----------------------------------------------------
<S> <C> <C>
FINANCIAL SERVICES -- 0.7%
Baldwin & Lyons, Cl B 20,100 $ 327
-------
FOOD, BEVERAGE & TOBACCO -- 1.2%
WLR Foods 20,800 562
-------
GLASS PRODUCTS -- 0.8%
Libbey 20,800 387
-------
HOUSEHOLD PRODUCTS -- 1.0%
Cherry, Cl A* 28,800 461
-------
INSURANCE -- 11.0%
First Colony 21,200 480
Harleysville Group 21,500 524
Home State Holdings* 28,800 396
Horace Mann Educators 18,500 409
Life Partners 8,600 169
National RE Holding 11,600 339
Partnerre Holdings 20,400 434
Paul Revere 21,400 348
Penncorp Financial 27,900 492
Phoenix RE 6,000 145
Security Capital* 4,500 214
State Auto Financial 23,400 392
TIG Holdings 33,300 746
W.R. Berkley 4,550 167
-------
5,255
-------
MACHINERY -- 9.6%
Alamo Group 23,900 412
BW/IP Holding, Cl A 38,600 637
Chase Brass* 20,300 211
CMI, Cl A* 74,400 493
DT Industries 29,500 354
Exide Electronics* 26,500 417
Holophane* 21,300 389
Kulicke & Soffa* 12,800 350
NN Ball & Roller 14,300 215
Pentair 17,700 747
SPX 24,800 360
-------
4,585
-------
MARINE TRANSPORTATION -- 1.7%
Royal Caribbean Cruises LTD 30,400 794
-------
MEASURING DEVICES -- 2.8%
Mark IV Industries 21,400 439
Oak Industries* 29,000 746
Veeco Instruments* 11,900 167
-------
1,352
-------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Description Shares Value (000)
- ---------------------------------------------------
<S> <C> <C>
MEDICAL PRODUCTS & SERVICES -- 1.4%
Gelman Sciences* 14,400 $ 247
Sterile Concepts 31,400 412
-------
659
-------
MISCELLANEOUS BUSINESS SERVICES -- 2.9%
Computer Horizons* 18,000 320
GBC Technologies* 31,900 215
Intersolv* 21,500 344
Opti* 30,400 490
-------
1,369
-------
MISCELLANEOUS MANUFACTURING -- 3.0%
Belden 5,400 119
Cable Design Technologies* 32,600 489
Mikohn Gaming* 20,900 178
Wolverine Tube* 25,600 639
-------
1,425
-------
OFFICE FURNITURE & FIXTURES -- 0.6%
Daisytek* 13,100 283
-------
PAPER & PAPER PRODUCTS -- 1.6%
Caraustar 27,600 469
Chesapeake 8,500 272
-------
741
-------
PETROLEUM & FUEL PRODUCTS -- 0.9%
Petroleum Geo-Services ADR* 18,700 416
-------
RETAIL -- 10.9%
American Eagle Outfitters* 19,700 347
Bradlees 19,400 216
Catherine's Stores* 50,100 438
Consolidated Products* 45,960 540
Consolidated Stores* 22,000 443
Daka International* 26,400 495
Fingerhut 11,650 138
Fred's 30,600 298
J Baker & Co 22,200 339
Little Switzerland* 30,600 153
Mueller Industries* 7,000 234
Shoney's* 17,700 190
The Bombay Company* 23,000 210
Value City Department Stores* 27,800 226
Vons Companies* 24,500 475
Waban* 22,900 452
-------
5,194
-------
</TABLE>
4
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Shares/Face Value
Description Amount (000) (000)
- ---------------------------------------------------------------------------
<S> <C> <C>
RUBBER & PLASTIC -- 2.2%
Aptargroup 19,300 $ 553
West Company 20,200 515
-------
1,068
-------
SEMI-CONDUCTORS/INSTRUMENTS -- 2.5%
DH Technology* 29,700 616
Lattice Semiconductor* 5,200 128
Marshall* 17,800 463
-------
1,207
-------
SPORTING & ATHLETIC GOODS -- 0.6%
First Team Sports* 12,450 282
-------
STEEL & STEEL WORKS -- 1.8%
Precision Castparts 13,900 363
Rouge Steel 20,400 500
-------
863
-------
TELEPHONES & TELECOMMUNICATION -- 0.9%
EIS International* 25,700 430
-------
TRUCKING -- 0.5%
Arkansas Best 20,100 214
-------
WATCHES CLOCKS & PARTS -- 0.6%
North American Watch 18,800 259
-------
WHOLESALE -- 2.3%
Fisher Scientific 15,700 467
Masland 9,800 126
TBC* 51,800 525
-------
1,118
-------
Total Common Stocks
(Cost $42,584) 43,478
-------
REPURCHASE AGREEMENT -- 18.1%
Lehman Brothers
6.20%, dated 03/31/95, matures 04/03/95, repurchase
price $8,642,000 (collateralized by FHLMC obligation,
par value $8,580,000, 8.50%, 02/15/95, market value
of collateral: $8,814,000) $ 8,638 $ 8,638
-------
Total Repurchase Agreement
(Cost $8,638) 8,638
-------
Total Investments -- 109.4%
(Cost $51,222) 52,116
-------
</TABLE>
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Description Value (000)
- ------------------------------------------------------------------------------
<S> <C>
OTHER ASSETS AND LIABILITIES -- -9.4%
Other Assets and Liabilities, Net $(4,508)
-------
NET ASSETS:
Portfolio shares of Class A (unlimited authorization -- no par
value) based on 4,530,901 outstanding shares of beneficial
interest 46,736
Undistributed net investment income 58
Accumulated net realized loss on investments (80)
Net unrealized appreciation on investments 894
-------
Total Net Assets -- 100.0% $47,608
=======
Net Asset Value, Offering and Redemption Price Per Share -- Class
A $ 10.51
=======
</TABLE>
* Non-income producing securities
ADR American Depository Receipt
Cl Class
FHLMC Federal Home Loan Mortgage Corporation
5
<PAGE>
STATEMENT OF OPERATIONS (000)
- --------------------------------------------------------------------------------
SEI Institutional Managed Trust -- For the period ended March 31, 1995
(Unaudited)
<TABLE>
<CAPTION>
--------- ---------
LARGE CAP SMALL CAP
GROWTH VALUE
--------- ---------
<S> <C> <C>
INVESTMENT INCOME:
Dividends $ 377 $ 55
Interest 207 82
------ ----
Total investment income 584 137
------ ----
EXPENSES:
Management fees 72 25
Less management fees waived -- --
Contribution from Manager -- --
Investment advisory fees 82 47
Less investment advisory fees waived -- (1)
Custodian/wire agent fees 4 1
Professional fees 4 2
Registration & filing fees 1 1
Printing expense 5 1
Trustee fees -- --
Insurance expense -- --
Pricing fees 1 --
Distribution fees 4 1
Amortization of deferred
organization costs 1 1
------ ----
Total expenses 174 78
------ ----
NET INVESTMENT INCOME 410 59
------ ----
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain (loss) from securities sold (45) (81)
Net change in unrealized appreciation on investments 5,876 894
------ ----
NET INCREASE IN NET ASSETS FROM OPERATIONS $6,241 $872
====== ====
</TABLE>
The accompanying notes are an integral part of the financial statements.
6
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (000)
- --------------------------------------------------------------------------------
SEI Institutional Managed Trust -- (Unaudited)
<TABLE>
<CAPTION>
--------- ---------
LARGE CAP SMALL CAP
GROWTH VALUE
--------- ---------
12/20/94- 12/20/94-
3/31/95 3/31/95
--------- ---------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) $ 410 $ 59
Net realized gain (loss) from security transactions (45) (81)
Net realized appreciation (depreciation) on investments 5,876 894
-------- -------
Net increase (decrease) in net assets resulting from
operations 6,241 872
-------- -------
DIVIDENDS DISTRIBUTED FROM:
Net investment income:
Class A (8) --
-------- -------
Total dividends distributed (8) --
-------- -------
CAPITAL SHARE TRANSACTIONS:
Class A:
Proceeds from shares issued 130,165 50,289
Shares issued in lieu of cash distributions 8 --
Cost of shares repurchased (4,449) (3,553)
-------- -------
Increase (decrease) in net assets derived from
Class A transactions 125,724 46,736
-------- -------
Net increase (decrease) in net assets 131,957 47,608
-------- -------
NET ASSETS:
Beginning of period -- --
-------- -------
End of period $131,957 $47,608
======== =======
CAPITAL SHARE TRANSACTIONS:
Class A:
Shares issued 12,659 4,873
Shares issued in lieu of cash distributions 1 --
Shares repurchased (425) (342)
-------- -------
Total Class A transactions 12,235 4,531
======== =======
</TABLE>
The accompanying notes are an integral part of the financial statements.
7
<PAGE>
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SEI Institutional Managed Trust -- For a share outstanding throughout the
period (Unaudited)
<TABLE>
<CAPTION>
Distributions
Net Asset Net Net Realized and Dividends from Ratio of
Value Investment Unrealized from Net Realized Net Asset Net Assets Expenses
Beginning Income Gain (Losses) Investment Capital Value End Total End of to Average
of Period (Loss) on Securities Income Gains of Period Return Period (000) Net Assets
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
--------------------------
LARGE CAP GROWTH PORTFOLIO
--------------------------
1995**(1) $10.00 $0.05 $0.76 $(0.02) $-- $10.79 32.43% $131,957 0.85%
-------------------------
SMALL CAP VALUE PORTFOLIO
-------------------------
1995**(2) $10.00 $0.01 $0.50 $ -- $-- $10.51 19.69% $ 47,608 1.10%
<CAPTION>
Ratio of Net
Ratio of Net Ratio of Investment
Investment Expenses Income (Loss)
Income to Average to Average
(Loss) Net Assets Net Assets Portfolio
to Average (Excluding (Excluding Turnover
Net Assets Waivers) Waivers) Rate
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
--------------------------
LARGE CAP GROWTH PORTFOLIO
--------------------------
1995**(1) 1.98% 0.85% 1.98% 16%
-------------------------
SMALL CAP VALUE PORTFOLIO
-------------------------
1995**(2) 0.81% 1.11% 0.80% 3%
</TABLE>
1 Large Cap Growth shares were offered beginning December 20, 1994. All ratios
including total return for that period have been annualized.
2 Small Cap Value shares were offered beginning December 20, 1994. All ratios
including total return for that period have been annualized.
** For the period ended March 31, 1995.
The accompanying notes are an integral part of the financial statements.
8
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
SEI Institutional Managed Trust -- March 31, 1995 (Unaudited)
1. ORGANIZATION
SEI Institutional Managed Trust (the "Trust") is organized as a Massachusetts
business trust under a Declaration of Trust dated October 20, 1986.
2. SIGNIFICANT ACCOUNTING POLICIES
The Trust is registered under the Investment Company Act of 1940, as amended,
as an open-end investment company with twelve diversified Portfolios and one
non-diversified portfolio (the "Portfolios"): Large Cap Value, Large Cap
Growth, Small Cap Value, Small Cap Growth, Mid-Cap Growth, Capital Apprecia-
tion, Equity Income, Balanced, Capital Growth, Core Fixed Income, Bond, and
High Yield Bond. The Real Estate Securities Portfolio had not commenced opera-
tions as of March 31, 1995. The Trust is registered to offer Class A, Class B
and Class D shares of the Large Cap Value, Large Cap Growth, Small Cap Value,
Small Cap Growth, Mid-Cap Growth, Capital Appreciation, Equity Income, Bal-
anced, Core Fixed Income, Bond, and High Yield Bond Portfolios. The following
is a summary of the significant accounting policies followed by the Trust.
Security Valuation--Investments in equity securities which are traded on a
national securities exchange (or reported on NASDAQ national market system) are
stated at the last quoted sales price if readily available for such equity se-
curities on each business day; other equity securities traded in the over-the-
counter market and listed equity securities for which no sale was reported on
that date are stated at the last quoted bid price. Debt obligations with re-
maining maturities in excess of sixty days are valued at the most recently
quoted bid price. Debt obligations with remaining maturities of sixty days or
less are valued at their amortized cost.
Federal Income Taxes--It is each Portfolio's intention to qualify as a regu-
lated investment company for Federal income tax purposes and distribute all of
its taxable income (including net capital gains). Accordingly, no provision for
Federal income taxes is required.
Net Asset Value Per Share--Net asset value per share is calculated on a daily
basis by dividing the assets of each Portfolio less its liabilities by the num-
ber of outstanding shares of the Portfolio.
Repurchase Agreements--Securities pledged as collateral for repurchase agree-
ments are held by each Portfolio's custodian bank until maturity of the Repur-
chase Agreement. Provisions of the Agreement and procedures adopted by the Man-
ager and the Advisers of the Trust ensure that the market value of the collat-
eral, including accrued interest thereon, is sufficient in the event of default
by the counterparty. The Portfolios also invest in tri-party repurchase agree-
ments. Securities held as collateral for tri-party repurchase agreements are
maintained by the broker's custodian bank in a segregated account until matu-
rity of the repurchase agreement. Provisions of the agreements ensure that the
market value of the collateral, including accrued interest thereon, is suffi-
cient in the event of default. If the counterparty defaults and the value of
the collateral declines or if the counterparty enters into an insolvency pro-
ceeding, realization of the collateral by the Portfolios may be delayed or lim-
ited.
Discount and Premium Amortization--All amortization is calculated using the
effective interest method over the holding period of the security. Amortization
of premiums and discounts is included in interest income.
Classes--Class-specific expenses are borne by that class of shares. Income,
expenses, and realized and unrealized gains/losses are allocated to the respec-
tive classes on the basis of relative daily net assets.
Distributions--Distributions from net investment income are paid to Share-
holders monthly for the Large Cap Value, Capital Appreciation, Equity Income,
Balanced, Capital Growth, Core Fixed Income, Bond, and High Yield Bond Portfo-
lios and quarterly for the Large Cap Growth, Small Cap Value, Small Cap Growth,
and Mid-Cap Growth Portfolios. Any net realized capital gains on the sales of
securities by a Portfolio are distributed annually to the Shareholders of that
Portfolio.
Futures Contracts--The Core Fixed Income Portfolio utilized U.S. Long Bond
futures contracts to a limited extent during the period ended March 31, 1995.
Initial margin deposits of cash or securities
9
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Continued)
- --------------------------------------------------------------------------------
SEI Institutional Managed Trust -- March 31, 1995 (Unaudited)
are made upon entering into futures contracts. The contracts are marked to mar-
ket daily and the resulting changes in value are accounted for as unrealized
gains and losses. Variation margin payments are paid or received, depending
upon whether unrealized losses or gains are incurred. When the contract is
closed, the Portfolio records a realized gain or loss equal to the difference
between the proceeds from (or cost of) the closing transaction and the amount
invested in the contract.
Risks related to futures contracts include the possibility that there may not
be a liquid market for the contracts, that changes in the values of the con-
tract may not directly correlate with changes in the values of the underlying
securities, and that the counterparty to a contract may default on its obliga-
tion to perform.
Structured Notes and Indexed Notes--The Core Fixed Income Portfolio may in-
vest in structured notes and indexed notes whose values are linked either di-
rectly or inversely to changes in foreign currency exchange rates, interest
rates, indexes, or other reference instruments. The values of these instruments
may be more volatile than the rates, indexes or instruments to which they re-
fer, but any loss is limited to the amount of the original investment.
Other--Security transactions are recorded on the trade date of the security
purchase or sale. Cost used in determining net realized capital gains and
losses on the sale of securities are those of the specific securities sold.
Dividend income is recognized on the ex-dividend date, and interest income is
recognized on the accrual basis.
3. MANAGEMENT, INVESTMENT ADVISORY, SUB-ADVISORY, AND DISTRIBUTION AGREEMENTS
The Trust and SEI Financial Management Corporation (the "Manager"), a wholly-
owned subsidiary of SEI Corporation, are parties to a management agreement (the
"Agreement") dated January 22, 1987. Under this agreement, the Manager provides
management, administrative, and shareholder servicing for an annual fee of .35%
of the average daily net assets of the Large Cap Value, Large Cap Growth, Small
Cap Value and High Yield Bond Portfolios; .50% of the average daily net assets
of the Small Cap Growth, Mid-Cap Growth, Capital Appreciation, Equity Income,
Balanced, and Capital Growth Portfolios; and .43% of the average daily net as-
sets of the Core Fixed Income and Bond Portfolios. The Manager has agreed to
waive its fee so that the total annual expenses of each portfolio will not ex-
ceed the lower of the maximum limitations established by certain states or vol-
untary expense limitations adopted by the Manager. In the event that the total
annual expenses of a Portfolio, after reflecting a waiver of all fees by the
Manager, exceed the specific limitation, the Manager has agreed to bear such
excess.
As of December 16, 1994, SEI Financial Management ("SFM") serves as the in-
vestment advisor to the Large Cap Value, Large Cap Growth, Small Cap Value, and
High Yield Bond Portfolios pursuant to an investment advisory agreement with
the Trust. For its services, SFM receives a fee of .35% of the average daily
net assets of the Large Cap Value Portfolio, .40% of the average daily net as-
sets of the Large Cap Growth Portfolio, .65% of the average daily net assets of
the Small Cap Value Portfolio, and .4875% of the average daily net assets of
the High Yield Bond Portfolio. For the period ended March 31, 1995, SFM re-
ceived $155,000, $82,000, $47,000, and $6,000 as compensation for its services
as investment adviser to the Large Cap Value, Large Cap Growth, Small Cap Val-
ue, and High Yield Bond Portfolios, respectively.
Mellon Equity Associates ("Mellon") serves as an investment sub-advisor to a
portion of the assets of the Large Cap Value Portfolio, and is party to an in-
vestment sub-advisory agreement with the Trust dated December 16, 1994. Under
the investment sub-advisory agreement with the Trust and SFM, Mellon receives
an annual fee of .20% of the average monthly market value of investments under
its management. Prior to December 16, 1994 Mellon served as the investment ad-
viser of the Large Cap Value Portfolio, and was party to an investment advisory
agreement with the Trust dated October 3, 1994. Under the investment advisory
agreement, Mellon was paid a fee at the annual rate of .20% of
10
<PAGE>
- --------------------------------------------------------------------------------
the average daily net assets of the Portfolio. Prior to October 3, 1994 Duff &
Phelps Investment Management Company ("Duff & Phelps") served as the investment
advisor to the Large Cap Value Portfolio, and was party to an investment advi-
sory agreement with the Trust dated October 22, 1992. Under the investment ad-
visory agreement, Duff & Phelps was paid a fee at the annual rate of .20% of
the average daily net assets of the Portfolio. For the period ended March 31,
1995, Duff & Phelps and Mellon received $2,000 and $37,000, respectively as
compensation for their services as investment adviser to the Portfolio.
Merus Capital Management ("Merus") serves as an investment sub-adviser to a
portion of the assets of the Large Cap Value Portfolio, and is party to an in-
vestment sub-advisory agreement with the Trust and SFM dated December 16, 1994.
Under the investment sub-advisory agreement, Merus receives an annual fee of
.20% of the average monthly market value of investments under its management.
American Express Financial Corporation, formerly known as IDS Advisory Group
Inc., serves as an investment sub-adviser to a portion of the assets of the
Large Cap Growth Portfolio and is party to an investment sub-advisory agreement
with the Trust and SFM dated December 16, 1994. Under the investment sub-advi-
sory agreement, American Express Financial Corporation is entitled to an annual
fee of the greater of $125,000 or a fee paid monthly by SFM at an annual rate
of .25% of the average monthly market value of investments under its manage-
ment.
Alliance Capital Management L.P. ("Alliance") serves as an investment sub-ad-
viser to a portion of the assets of the Large Cap Growth Portfolio and is party
to an investment sub-advisory agreement with the Trust dated December 16, 1994.
Under the investment sub-advisory agreement, Alliance is entitled to the
greater of $125,000 or a fee paid monthly by SFM at an annual rate of .25% of
the average monthly market value of investments under its management.
1838 Investment Advisors, L.P. ("1838") serves as an investment sub-adviser
for the Small Cap Value Portfolio and is party to an investment sub-advisory
agreement with the Trust dated December 16, 1994. Under the investment sub-ad-
visory agreement, 1838 receives an annual fee of .50% of the average monthly
market value of investments under its management.
Investment Advisers, Inc., Nicholas-Applegate Capital Management, and Pilgrim
Baxter & Associates, the advisers of the Small Cap Growth Portfolio, are par-
ties to investment advisory agreements with the Trust dated July 1, 1993. Under
the agreements, the Advisers receive an annual fee of .50% of the average daily
net assets of the portion of the Portfolio that they advise. For the period
ended March 31, 1995, Investment Advisers, Inc. Nicholas-Applegate Capital Man-
agement, and Pilgrim Baxter & Associates, received $232,020, $230,240 and
$237,614, respectively in connection with the aforementioned agreements.
Nicholas-Applegate Capital Management, the Adviser of the Mid-Cap Growth
Portfolio, is a party to an investment advisory agreement with the Trust dated
November 16, 1992. Under the investment advisory agreement, Nicholas-Applegate
Capital Management receives an annual fee of .45% of the first $100,000,000 of
the Portfolio's average daily net assets and .40% of the average daily net as-
sets in excess of $100,000,000.
SunBank Capital Management, N.A., the adviser of the Capital Appreciation,
Capital Growth, and Balanced Portfolios, is a party to investment advisory
agreements with the Trust dated September 9, 1987 for the Capital Appreciation
and Capital Growth Portfolios, and September 6, 1992, for the Balanced Portfo-
lio. Under the investment advisory agreements, SunBank Capital Management, N.A.
receives an annual fee of .25% of the average daily net assets of the Capital
Appreciation and Balanced Portfolios. SunBank is not paid a fee by the Trust
for the investment advisory services connected with the Capital Growth Portfo-
lio.
Merus Capital Management ("Merus"), serves as investment advisor for the Eq-
uity Income Portfolio, and is party to an investment advisory agreement with
the Trust dated September 24, 1987. Under the investment advisory agreement,
Merus receives an annual fee of .25% of the average daily
11
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Continued)
- --------------------------------------------------------------------------------
SEI Institutional Managed Trust -- March 31, 1995 (Unaudited)
net assets of the Equity Income Portfolio. The Manager and Merus have agreed to
waive their fees proportionately so that the total annual expenses of the Port-
folio will not exceed the lower of the maximum limitations established by cer-
tain states or voluntary expense limitations adopted by the Manager
Western Asset Management, the adviser of the Core Fixed Income Portfolio, and
Boatmen's Trust Company, the adviser of the Bond Portfolio, are parties to an
investment advisory agreements dated January 19, 1994 and December 29, 1988,
respectively. Under the investment advisory agreements, each adviser receives
an annual fee of .125% of the average daily net assets of the Portfolio.
CS First Boston Investment Management Corporation ("CS First Boston") serves
as investment sub-adviser to the High Yield Bond Portfolio and is party to an
investment sub-advisory agreement with the Trust dated December 16, 1994. Under
the sub-advisory agreement, CS First Boston is entitled to a fee--paid monthly
by SFM--of .3375% of the average monthly market value of investments under its
management.
SEI Financial Services Company (the "Distributor"), a wholly-owned subsidiary
of SEI Corporation and a registered broker-dealer, acts as the distributor of
the shares of the Trust under a distribution plan which provides for the Trust
to reimburse the Distributor for distribution expenses. Such expenses may not
exceed .30% of the average daily net assets of the Trust's Class A shares. Dis-
tribution expenses include, among other items, the compensation and benefits of
sales personnel incurred by the Distributor in connection with the promotion
and sale of shares. Distribution expenses are allocated among the Portfolios,
on the basis of their relative average daily net assets. In addition, Portfo-
lios with Class B shares and Class D shares, have separate distribution plans
that provide for additional payments to the Distributor of .30% of each of the
Class B and Class D shares' average daily net assets.
The Distribution Agreement between the Distributor and the Trust provides
that the Distributor may receive compensation on portfolio transactions ef-
fected for the Trust in accordance with the rules of the Securities and Ex-
change Commission ("SEC"). Accordingly, it is expected that portfolio transac-
tions may result in brokerage commissions being paid to the Distributor. The
SEC rules require that such commissions not exceed usual and customary broker-
age commissions.
4. ORGANIZATIONAL COSTS AND TRANSACTIONS WITH AFFILIATES
Organizational costs have been capitalized by the Fund and are being amortized
over sixty months commencing with operations. In the event any of the initial
shares are redeemed by any holder thereof during the period that the fund is
amortizing its organizational costs, the redemption proceeds payable to the
holder thereof by the Fund will be reduced by the unamortized organizational
costs in the same ratio as the number of initial shares being redeemed bears to
the number of initial shares outstanding at the time of the redemption.
Certain officers and/or trustees of the Trust are also officers of the Manag-
er. The Trust pays each unaffiliated Trustee an annual fee for attendance of
quarterly, interim, and committee meetings. Compensation of officers and affil-
iated Trustees of the Trust is paid by the Manager.
Each of the Portfolios also used the Distributor as an agent in placing re-
purchase agreements. For this service the Distributor retains a portion of the
benefit as a commission. Such commissions for repurchase agreements placed dur-
ing the period ended March 31, 1995, were nominal in the aggregate.
12
<PAGE>
- --------------------------------------------------------------------------------
5. INVESTMENT TRANSACTIONS
The cost of security purchases and the proceeds from the sale of securities in-
cluding U.S. Government securities, other than temporary cash investments dur-
ing the period ended March 31, 1995, were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
(000) (000)
--------- --------
<S> <C> <C>
Large Cap Value $167,302 $134,750
Large Cap Growth 133,851 12,555
Small Cap Value 43,599 26,755
Small Cap Growth 134,011 169,567
Mid-Cap Growth 24,617 91,943
Capital Appreciation 292,300 557,714
Equity Income 86,829 229,033
Balanced 42,930 36,472
Capital Growth 25,461 47,074
Core Fixed Income 610,181 491,454
Bond 37,497 110,600
High Yield Bond 6,700 206
</TABLE>
On March 31, 1995, the total cost of securities and the net realized gains or
losses on securities sold for Federal income tax purposes was not materially
different from amounts reported for financial reporting purposes. The aggregate
gross unrealized appreciation and depreciation on securities at March 31, 1995,
for each portfolio is as follows:
<TABLE>
<CAPTION>
NET
UNREALIZED
APPRECIATED DEPRECIATED APPRECIATION/
SECURITIES SECURITIES (DEPRECIATION)
(000) (000) (000)
----------- ----------- --------------
<S> <C> <C> <C>
Large Cap Value $12,830 $1,642 $11,188
Large Cap Growth 7,245 1,369 5,876
Small Cap Value 2,084 1,190 894
Small Cap Growth 64,142 5,711 58,431
Mid-Cap Growth 6,932 280 6,652
Capital Appreciation 38,615 22,437 16,178
Equity Income 24,005 4,998 19,007
Balanced 3,872 1,922 1,950
Capital Growth 12,909 5,234 7,675
Core Fixed Income 4,937 5,454 (517)
Bond 905 34 871
High Yield Bond 145 22 123
</TABLE>
The market values of the Intermediate Bond, Bond and High Yield Bond Portfo-
lios' investments will change in response to interest rate changes and other
factors. During periods of falling interest rates, the values of fixed income
securities generally rise. Conversely, during periods of rising interest rates,
the values of such securities generally decline. Changes by recognized rating
agencies in the ratings of any fixed income security and in the ability of an
issuer to make payments of interest and principal may also affect the value of
these investments.
At March 31, 1995 the following Portfolios had available realized capital
losses to offset future net capital gains through fiscal year ended 2003.
<TABLE>
<CAPTION>
(000)
-------
<S> <C>
Large Cap Value $ 1,397
Mid-Cap Growth 7,349
Small Cap Growth 17,019
Core Fixed Income 11,191
</TABLE>
6. FUTURES CONTRACTS:
The Core Fixed Income Portfolio had the following bond futures contracts open
as of March 31, 1995:
<TABLE>
<CAPTION>
UNREALIZED
CONTRACT NUMBER OF SETTLEMENT GAIN/(LOSS)
DESCRIPTION CONTRACTS TRADE PRICE MONTH (000)
----------- --------- ----------- ---------- -----------
<S> <C> <C> <C> <C>
US 5 Year Note
(CBT) 373 $103.825067 June 1995 $(252)
US 10 Year Note
(CBT) 229 105.005595 June 1995 (253)
US Long Bond
(CBT) 136 105.000000 June 1995 78
US Long Bond
(CBT) 65 103.406250 June 1995 36
-----
$(391)
=====
</TABLE>
7. SHAREHOLDER VOTING RESULTS:
There was a special meeting of shareholders on March 10, 1995 for the share-
holders of the Large Cap Value Portfolio to approve the selections of LSV Asset
Management ("LSV") as one of three investment sub-advisers of the Portfolio and
approve the investment sub-advisory agreement between SEI Financial Management
Corporation and LSV.
<TABLE>
<CAPTION>
SHARES VOTED
------------
<S> <C>
For 8,080,158.607
Against 51,233.000
Abstain 69,831.000
</TABLE>
There were no broker non-votes submitted and no other proposals voted on at
such meeting.
13
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
<PAGE>
<TABLE>
<CAPTION>
Statement of Net Assets SEI Institutional Managed Trust
May 31, 1995 Unaudited
Face Market
Amount Value
(000) HIGH YIELD BOND PORTFOLIO (000)
- --------------------------------------------------------------------------------
Corporate Obligations (85.8%)
- --------------------------------------------------------------------------------
<S> <C> <C>
Abbey Healthcare Group
$ 65 9.500%, 11/01/02 .................................. $ 67
Adelphia Communications
100 12.500%, 05/15/02 ................................. 100
AK Steel
100 10.750%, 04/01/04 ................................. 106
Allied Waste Industries
50 12.000%, 02/01/04 ................................. 52
American Restaurant Group
100 12.000%, 09/15/98 ................................. 87
American Standard
20 11.375%, 05/15/04 ................................. 22
250 Zero Coupon, 06/01/05 (B) ......................... 188
Amerigas Partner
100 10.125%, 04/15/07 (A) ............................. 103
Arcadian Partner
100 10.750%, 05/01/05 ................................. 102
Armco
100 11.375%, 10/15/99 ................................. 104
Atlantis Group
50 11.000%, 02/15/03 ................................. 51
Bally's Casino Holding
100 Zero Coupon, 06/15/98 (B) ......................... 68
Bally's Grand
100 10.375%, 12/15/03 ................................. 98
Bally's Health & Tennis
100 13.000%, 01/15/03 ................................. 84
Bally's Park Place Funding
150 9.250%, 03/15/04 .................................. 139
Bayou Steel
100 10.250%, 03/01/01 ................................. 95
Bell Cablemedia
300 Zero Coupon, 07/15/04 (B) ......................... 195
Big V Supermarkets
75 11.000%, 02/15/04 ................................. 66
Building Materials
300 Zero Coupon, 07/01/04 (B) ......................... 183
Cablevision Industries
50 9.250%, 04/01/08 .................................. 51
Cablevision Systems
50 9.875%, 02/15/13 .................................. 51
Casino America
100 11.500%, 11/15/01 ................................. 100
Centennial Cellular
250 10.125%, 05/15/05 ................................. 250
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Statement of Net Assets SEI Institutional Managed Trust
May 31, 1995 Unaudited
Face Market
Amount Value
(000) HIGH YIELD BOND PORTFOLIO (000)
- --------------------------------------------------------------------------------
<S> <C> <C>
CF Cable Television
$ 50 11.625%, 02/15/05 ................................. $ 53
Cole National
250 11.250%, 10/01/01 ................................. 240
Comcast
50 9.500%, 01/15/08 .................................. 49
50 10.625%, 07/15/12 ................................. 53
Container
50 9.750%, 04/01/03 .................................. 51
Continental Cablevision
100 11.000%, 06/01/07 ................................. 110
Continental Medsystems
150 10.875%, 08/15/02 ................................. 155
50 10.375%, 04/01/03 ................................. 51
Coty
100 10.250%, 05/01/05 ................................. 103
County Seat Stores
100 12.000%, 10/01/01 ................................. 100
Crown Packaging Holdings
300 Zero Coupon, 11/01/03 (B) ......................... 150
Dairy Mart Convenience Stores
200 10.250%, 03/15/04 ................................. 170
Diamond Cable Communication
100 Zero Coupon, 09/30/04 (B) ......................... 62
Doman Industries
250 8.750%, 03/15/04 .................................. 237
Domtar
100 11.250%, 09/15/17 ................................. 108
Doskocil Cosmetics
100 9.750%, 07/15/00 .................................. 95
Duane Reade
250 12.000%, 09/15/02 ................................. 215
Exide
100 10.000%, 04/15/05 (A) ............................. 102
Falcon Drilling
100 9.750%, 01/15/01 .................................. 98
Farm Fresh
50 12.250%, 10/01/00 ................................. 48
Farm Fresh, Ser A
200 12.250%, 10/01/00 ................................. 193
Finlay Enterprises
50 Zero Coupon, 05/01/05 (B) ......................... 32
Fort Howard
150 9.000%, 02/01/06 .................................. 139
G-I Holdings
250 Zero Coupon, 10/01/98 (B) ......................... 173
Gaylord Container
50 11.500%, 05/15/01 ................................. 53
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Statement of Net Assets SEI Institutional Managed Trust
May 31, 1995 Unaudited
Face Market
Amount Value
(000) HIGH YIELD BOND PORTFOLIO (000)
- --------------------------------------------------------------------------------
<S> <C> <C>
General Media
$ 100 10.625%, 12/31/00 ................................. $ 84
Geneva Steel
250 9.500%, 01/15/04 .................................. 203
GNF
200 10.625%, 04/01/03 ................................. 165
GPA Delaware
75 8.750%, 12/15/98 .................................. 61
Great Bay Property Funding
105 10.875%, 01/15/04 ................................. 91
Groupe Videotron
100 10.625%, 02/15/05 ................................. 106
Grupo Industrial Durango
100 12.000%, 07/15/01 ................................. 76
GS Technologies
100 12.000%, 09/01/04 ................................. 102
Gulf Canada Resources
100 9.250%, 01/15/04 .................................. 99
Harris Chemical
75 Zero Coupon, 07/15/01 (B) ......................... 68
Healthtrust
100 10.750%, 05/01/02 ................................. 111
Helicon Group
150 9.000%, 11/01/03 .................................. 138
Hills Stores
250 10.250%, 09/30/03 ................................. 244
Hollywood Casino
100 14.000%, 04/01/98 ................................. 109
Host Marriott Hospitality
53 10.625%, 02/01/00 ................................. 55
IMAX
100 7.000%, 03/01/01 .................................. 91
Integrated Health Services
250 9.625%, 05/31/02 (A) .............................. 253
Interlake
200 12.125%, 03/01/02 ................................. 203
International Cabletel
150 12.750%, 04/15/05 (A) ............................. 85
Ithaca Industries
100 11.125%, 12/15/02 ................................. 93
Jones Intercable
100 9.625%, 03/15/02 .................................. 103
Jordan Industries
250 10.375%, 08/01/03 ................................. 238
JPS Automotive Products
100 11.125%, 06/15/01 ................................. 100
K-III Communications
50 10.625%, 05/01/02 ................................. 52
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Statement of Net Assets SEI Institutional Managed Trust
May 31, 1995 Unaudited
Face Market
Amount Value
(000) HIGH YIELD BOND PORTFOLIO (000)
- --------------------------------------------------------------------------------
<S> <C> <C>
Kloster Cruise
$ 150 13.000%, 05/01/03 ................................. $ 127
Malette
100 12.250%, 07/15/04 ................................. 108
Marvel III Holdings
100 9.125%, 02/15/98 .................................. 92
Maxus Energy
250 9.875%, 10/15/02 .................................. 243
Mesa
250 Zero Coupon, 06/30/98 (B) ......................... 241
MFS Communications
300 Zero Coupon, 01/15/04 (B) ......................... 204
Mobile Telecommunications Technologies
50 13.500%, 12/15/02 ................................. 53
Nextel Communications
300 Zero Coupon, 08/15/04 (B) ......................... 149
NL Industries
100 11.750%, 10/15/03 ................................. 106
Panamsat L.P.
50 9.750%, 08/01/00 .................................. 51
Pathmark Stores
300 Zero Coupon, 11/01/03 (B) ......................... 178
Penn Traffic
250 9.625%, 04/15/05 .................................. 237
Petroleum Heat & Power
50 12.250%, 02/01/05 ................................. 53
Pioneer Americas
100 13.375%, 04/01/05 (A) ............................. 105
Platex Family Products
50 9.000%, 02/15/03 .................................. 48
Rainy River Forest Products
100 10.750%, 10/15/01 ................................. 106
Red Roof Inns
50 9.625%, 12/15/03 .................................. 49
Repap Wisconsin
100 9.875%, 05/01/06 .................................. 98
Republic Engineered Steel
150 9.875%, 12/15/01 .................................. 141
Resorts International
100 11.000%, 09/15/03 ................................. 88
Revlon Consumer Products
150 9.375%, 04/01/01 .................................. 145
100 10.500%, 02/15/03 ................................. 99
Rexene
150 11.750%, 12/01/04 ................................. 163
Rogers Cablesystems
100 10.000%, 03/15/05 (A) ............................. 102
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Statement of Net Assets SEI Institutional Managed Trust
May 31, 1995 Unaudited
Face Market
Amount Value
(000) HIGH YIELD BOND PORTFOLIO (000)
- --------------------------------------------------------------------------------
<S> <C> <C>
Santa Fe Energy Resource
$ 50 11.000%, 05/15/04 ................................. $ 53
SCI Television
50 11.000%, 06/30/05 ................................. 52
Sherritt
100 10.500%, 03/31/14 ................................. 100
Showboat
100 9.250%, 05/01/08 .................................. 93
Speicialty Equipement
250 11.375%, 12/01/03 ................................. 252
Station Casinos
100 9.625%, 06/01/03 .................................. 92
Stone Consolidated
100 10.250%, 12/15/00 ................................. 104
Stone Container
100 9.875%, 02/01/01 .................................. 100
Surgical Health
50 11.500%, 07/15/04 ................................. 56
Synthetic Industries
100 12.750%, 12/01/02 ................................. 100
Tracor
50 10.875%, 08/15/01 ................................. 52
Transtexas Gas
100 10.500%, 09/01/00 ................................. 107
Trump Plaza Funding
250 10.875%, 06/15/01 ................................. 229
Trump Taj Mahal PIK
202 11.350%, 11/15/99 ................................. 150
UCC Investors
50 11.000%, 05/01/03 ................................. 52
United International Holding
100 Zero Coupon, 11/15/99 ............................. 58
US Leather
100 10.250%, 07/31/03 ................................. 87
USG
50 9.250%, 09/15/01 .................................. 51
Venture Holdings Trust
250 9.750%, 04/01/04 .................................. 218
Viacom International
100 8.000%, 07/01/06 .................................. 97
Waban
250 11.000%, 05/15/04 ................................. 253
WCI Steel
100 10.500%, 03/01/02 ................................. 102
Wright Medical Technology
50 10.750%, 07/01/01 ................................. 50
- --------------------------------------------------------------------------------
Total Corporate Obligations
(Cost $13,251[000]) .......................... 13,626
- --------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Statement of Net Assets SEI Institutional Managed Trust
May 31, 1995 Unaudited
Face Market
Amount Value
(000) HIGH YIELD BOND PORTFOLIO (000)
- --------------------------------------------------------------------------------
Units (4.8%)
- --------------------------------------------------------------------------------
<S> <C> <C>
Commodore Media 1 Unit = 1 Senior Subordinate Note
+ 1 Warrant
$ 100 7.500%, 05/01/03 (A) .............................. $ 88
Gulf States Steel 1 Unit= 1 Bond + 1 Warrant
100 13.500%, 04/15/03 (A) ............................. 102
Health O Meter 1 Unit = 1 Senior Subordinate Note
+ 1 Warrant = 10.96 Shares Common Stock
100 13.000%, 08/15/02 ................................. 94
In Flight Phone 1 Unit = 1 Note + 1 Warrant
100 Zero Coupon, 05/15/02 (A) ......................... 66
MVE 1 Unit = 1 Senior Note + 1 Warrant
100 12.500%, 02/15/02 ................................. 106
People's Choice TV 1 Unit = 1 Senior Discount Note
+ 1 Warrant = 1.427 Shares Common Stock
400 Zero Coupon, 06/01/04 (B) ......................... 209
Santa Fe Hotel 1 Unit = 1 10,000 First Mortgage
Note + 1 Warrant
100 11.000%, 12/15/00 ................................. 96
- --------------------------------------------------------------------------------
Total Units
(Cost $753[000]) ............................ 761
- --------------------------------------------------------------------------------
Shares
- --------------------------------------------------------------------------------
Warrants (0.0%)
- --------------------------------------------------------------------------------
21 Wright Medical Technology ............................ 3
- --------------------------------------------------------------------------------
Total Warrants
(Cost $3[000]) .............................. 3
- --------------------------------------------------------------------------------
Common Stock (0.0%)
- --------------------------------------------------------------------------------
66 Finlay Enterprises ................................... 1
Total Common Stock
(Cost $1[000]) .............................. 1
- --------------------------------------------------------------------------------
Face
Amount
(000)
- --------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Statement of Net Assets SEI Institutional Managed Trust
May 31, 1995 Unaudited
Face Market
Amount Value
(000) HIGH YIELD BOND PORTFOLIO (000)
- --------------------------------------------------------------------------------
Repurchase Agreement (10.8%)
- --------------------------------------------------------------------------------
<S> <C> <C>
$ 1,708 Sanwa Securities 6.05%, dated 5/31/95, matures
06/01/95, repurchase price
$1,708,287(collateralized by U.S. Treasury Note,
par value $1,714,000, 6.500%, 04/30/97, market
value:$1,752,000) ................................. $ 1,708
- --------------------------------------------------------------------------------
Total Repurchase Agreement
(Cost $1,708[000]) .......................... 1,708
- --------------------------------------------------------------------------------
Total Investments (101.4%)
(Cost $15,716[000]) ............................ 16,099
- --------------------------------------------------------------------------------
Other Assets and Liabilities (-1.4%)
- --------------------------------------------------------------------------------
Other Assets and Liabilities, Net ................... (223)
- --------------------------------------------------------------------------------
Total Other Assets and Liabilities ................... (223)
- --------------------------------------------------------------------------------
Net Assets:
Portfolio shares of Class A (unlimited
authorization -- no par value) based on 1,496,212
outstanding shares of beneficial interest .......... 15,346
Undistributed net investment income .................. 128
Accumulated net realized gain on investments ......... 19
Net unrealized appreciation on investments ........... 383
- --------------------------------------------------------------------------------
Total Net Assets: (100.0%) ........................... $ 15,876
- --------------------------------------------------------------------------------
Net Asset Value, Offering and Redemption Price Per
Share -- Class A ................................... $ 10.61
- --------------------------------------------------------------------------------
</TABLE>
(A) Security exempt from registration under Rule 144A of the
Securities Act of 1933. This security may be resold only in
transactions exempt from registration, normally to qualified
institutional buyers.
(B) Step Bond -the rate reflected on the Statement of Net Assets is
the rate in effect on May 31, 1995. The initial coupon on a step bond
changes on a specific date, to a predetermined higher rate.
LP -Limited partnership
PIK -Payment in Kind
Ser -Series
The accompanying notes are an integral part of the financial statements.
<PAGE>
SEI INSTITUTIONAL MANAGED TRUST HIGH YIELD BOND PORTFOLIO
STATEMENT OF OPERATIONS
JANUARY 11, 1995 THROUGH MAY 31, 1995*
(Unaudited)
<TABLE>
<CAPTION>
Investment Income: (000)
---------
<S> <C>
Interest $320
---------
Expenses:
Management fees 11
Less management fees waived (4)
Investment advisory fees 10
Custodian/wire agent fees 1
Registration & filing fees 1
Printing expense 1
Distribution fees 1
Amortization of deferred
organization costs 1
---------
Total expenses 22
---------
Net investment income 298
---------
Net realized and unrealized gain
on investments.
Net Realized Gain From
Securities Sold 19
Net Change in Unrealized Apreciation
on Investments 383
---------
Net increase in net assets from
operations. $700
=========
</TABLE>
* Shares were offered beginning January 11, 1995.
The accompanying notes are an integral part of the financial statements.
<PAGE>
SEI INSTITUTIONAL MANAGED TRUST HIGH YIELD BOND PORTFOLIO
STATEMENT OF CHANGE IN NET ASSETS
JANUARY 11, 1995 THROUGH MAY 31, 1995 *
(Unaudited)
<TABLE>
Operations: (000)
-----------
<S> <C>
Net Investment Income (Loss) $298
Net realized gain (loss) from security transactions 19
Net realized appreciation (depreciation) on investments 383
-----------
Net increase in net assets resulting from operations 700
-----------
Dividends distributed from:
Net investment income:
Class A (170)
-----------
Capital share transactions:
Class A:
Proceeds from shares issued 15,299
Shares issued in lieu of cash distributions 167
Cost of shares repurchased (120)
-----------
Increase in net assets derived from Class A transactions 15,346
-----------
Net increase in net assets 15,876
-----------
Net assets:
Beginning of period -
-----------
End of period $15,876
===========
Capital share transactions:
Class A:
Shares issued 1,492
Shares issued in lieu of cash distributions 16
Shares repurchased (12)
-----------
Total Class A transactions 1,496
-----------
</TABLE>
* Shares were offered beginning January 11, 1995.
The accompanying notes are an integral part of the financial statements.
<PAGE>
SEI INSTITUTIONAL MANAGED TRUST HIGH YIELD BOND PORTFOLIO
FINANCIAL HIGHLIGHTS
JANUARY 11, 1995 THROUGH MAY 31, 1995**
(Unaudited)
<TABLE>
For a share outstanding throughout the period.
<S> <C>
Net asset value beginning of period $10.00
Income from investment operations:
Net investment income 0.33
Net realized and unrealized gain on securities 0.52
----
Total from investment operations 0.85
----
Dividends from net investment income (0.24)
----
Net asset value end of period $10.61
------
Total Return 8.58%
Net assets end of period $15,876
Ratio of expenses to average net assets 0.69%*
Ratio of net investment income to average net assets 9.53%*
Ratio of expenses to average net assets
(excluding waivers) 0.82%*
Ratio of net investment income to average
net assets (excluding waivers) 9.40%*
Portfolio turnover rate 19%
</TABLE>
* Annualized
** Shares were offered beginning January 11, 1995.
The accompanying notes are an integral part of the financial statements
<PAGE>
NOTES TO THE FINANCIAL STATEMENTS:
(Unaudited)
1. Organization
SEI Institutional Managed Trust (the "Trust") is organized as a Massachusetts
business trust under a Declaration of Trust dated October 20, 1986.
2. Significant Accounting Policies
The Trust is registered under the Investment Company Act of 1940, as amended, as
an open-end investment company with twelve diversified portfolios and one non-
diversified portfolio (the "Portfolios"): Large Cap Value, Large Cap Growth,
Small Cap Value, Small Cap Growth, Mid-Cap Growth, Capital Appreciation, Equity
Income, Balanced, Capital Growth, Core Fixed Income, Bond, and High Yield Bond.
The Real Estate Securities Portfolio had not commenced as of May 31, 1995. The
Trust is registered to offer Class A, Class B and Class D shares of the Large
Cap Value, Large Cap Growth, Small Cap Value, Small Cap Growth, Mid-Cap Growth,
Capital Appreciation, Equity Income, Balanced, Core Fixed Income, Bond, and High
Yield Bond Portfolios. The following is a summary of the significant accounting
policies followed by the High Yield Bond Portfolio of the Trust.
Security Valuation -- Investments in equity securities which are traded on
a national securities exchange (or reported on NASDAQ national market system)
are stated at the last quoted sales price if readily available for such equity
securities on each business day; other equity securities traded in the over-the-
counter market and listed equity securities for which no sale was reported on
that date are stated at the last quoted bid price. Debt obligations with
remaining maturities in excess of sixty days are valued at the most recently
quoted bid price. Debt obligations with remaining maturities of sixty days or
less are valued at their amortized cost.
Federal Income Taxes -- The High Yield Bond Portfolio intends to qualify as
a regulated investment company for Federal income tax purposes and distribute
all of its taxable income (including net capital gains). Accordingly no
provision for Federal income taxes is required.
Net Asset Value Per Share -- Net asset value per share is calculated on a
daily basis by dividing the assets of the High Yield Bond Portfolio less its
liabilities by the number of outstanding shares of the Portfolio.
Repurchase Agreements -- Securities pledged as collateral for repurchase
agreements are held by the High Yield Bond Portfolio's custodian bank until
maturity of the Repurchase Agreement. Provisions of the Agreement and
procedures adopted by the Manager and the Advisers of the Trust ensure that the
market value of the collateral, including accrued interest thereon, is
sufficient in the event of default by the counterparty. If the counterparty
defaults and the value of collateral declines or if the counterparty enters into
an insolvency proceeding, realization of the collateral by the Portfolios may be
delayed or limited.
Discount and Premium Amortization -- All amortization is calculated using
the effective interest method over the holding period of the security.
Amortization of premiums and discounts is included in interest income.
Classes -- Class-specific expenses are borne by that class of shares.
Income, expenses, and realized and unrealized gains/losses are allocated to the
respective classes on the basis of relative daily net assets.
Distributions -- Distributions from net investment income are paid to
Shareholders monthly for the High Yield Bond Portfolio. Any net realized
capital gains on the sales of securities by a Portfolio are distributed annually
to the Shareholders of the High Yield Bond Portfolio.
Other -- Security transactions are recorded on the trade date of the
security purchase or sale. Cost used in determining net realized capital gains
and losses on the sale of securities are those of the specific securities sold.
Dividend income is recognized on the ex-dividend date, and the interest income
is recognized on the accrual basis.
3. Management, Investment Advisory, and Distribution Agreements
<PAGE>
The Trust and SEI Financial Management Corporation (the "Manager"), a
wholly-owned subsidiary of SEI Corporation, are parties to a management
agreement (the "Agreement") dated January 22, 1987. Under this agreement, the
Manager provides management, administrative, and shareholder servicing for an
annual fee of .35% of the average daily net assets of the High Yield Bond
Portfolio. The Manger has agreed to waive its fee so that the total annual
expenses of each portfolio will not exceed the lower of the maximum limitations
established by certain states or voluntary expense limitations adopted by the
Manager. In the event that the total annual expenses of a Portfolio, after
reflecting a waiver of all fees by the Manager, exceed the specific limitation,
the Manager has agreed to bear such excess.
As of December 16, 1994, SEI Financial Management ("SFM") serves as the
investment advisor to the High Yield Bond Portfolio pursuant to an investment
advisory agreement with the Trust. For its services, SFM receives a fee of
.4875% of the average daily net assets of the High Yield Bond Portfolio. For
the period ended May 31, 1995 SFM received $10,000 as compensation for its
services as investment adviser to the High Yield Bond Portfolio.
BEA Associates ("BEA") serves as investment sub-adviser to the Portfolio
and is party to an investment sub-advisory agreement with the Trust dated April
24, 1995. Currently, BEA receives no fee for its services as investment sub-
adviser, however, if BEA is approved by a shareholder vote as investment sub-
adviser to the High Yield Bond Portfolio, BEA will be entitled to a fee paid
monthly by SFM of .3375% of the average monthly market value of investments
under its management. Prior to April 24, 1995, CS First Boston Investment
Management Corporation ("CS First Boston") acted as investment sub-advisor to
the High Yield Bond Portfolio under an agreement with the Trust dated December
16, 1994. Under this agreement CS First Boston was entitled to a fee paid
monthly by SFM of .3375% of the average monthly market value of investments
under its management
SEI Financial Services Company (the "Distributor"), a wholly-owned
subsidiary of SEI Corporation and a registered broker-dealer, acts as the
distributor of shares of the Trust under a distribution plan which provides for
the Trust to reimburse the Distributor for distribution expenses. Such
expenses may not exceed .30% of the average daily net assets of the Trust's
Class A shares. Distribution expenses include, among other items, the
compensation and benefits of sales personnel incurred by the Distributor in
connection with the promotion and sale of shares. Distribution expenses are
allocated among the Portfolios on the basis of their relative average net
assets. In addition, Portfolios with Class B shares and Class D shares have
separate distribution plans that provide for additional payments to the
Distributor of .30% of each of the Class B and Class D shares average daily net
assets.
The Distribution Agreement between the Distributor and the Trust provides
that the Distributor may receive compensation on portfolio transactions effected
for the Trust in accordance with the rules of the Securities and Exchange
Commission ("SEC"). Accordingly, it is expected that portfolio transactions may
result in brokerage commissions being paid to the Distributor. The SEC rules
require that such commissions not exceed usual and customary commissions.
4. Organizational Costs and Transactions with Affiliates
Organizational costs have been capitalized by the Portfolio and are being
amortized over sixty months commencing with operations. In the event any of the
initial shares are redeemed by any holder thereof during the period that the
portfolio is amortizing its organizational costs, the redemption proceeds
payable to the holder thereof by the Portfolio will be reduced by the
unamortized organizational costs in the same ratio as the number of initial
shares outstanding at the time of the redemption.
Certain officers and/or trustees of the Trust are also officers of the
Manager. The Trust pays each unaffiliated Trustee an annual fee for attendance
of quarterly, interim and committee meetings. Compensation of officers and
affiliated Trustees of the Trust is paid by the Manager.
5. Investment Transactions
The cost of security purchases and proceeds from the sale of securities
including US Government securities, other than temporary cash investments during
the period ended May 31, 1995 were as follows:
<PAGE>
<TABLE>
<CAPTION>
Purchases Sales
(000) (000)
---------------------------------------------------
<S> <C> <C>
High Yield Bond $15,380 $1,421
</TABLE>
On May 31, 1995, the total cost of securities and the net realized gains or
losses on securities sold for Federal income tax purposes was not materially
different from amounts reported for financial reporting purposes. The aggregate
gross unrealized appreciation and depreciation on securities at May 31, 1995 is
as follows:
<TABLE>
<CAPTION>
Appreciated Depreciated Net Unrealized
Securities Securities Appreciation/
(000) (000) (Depreciation)
(000)
---------------------------------------------------
<S> <C> <C> <C>
High Yield Bond 462 79 383
</TABLE>
The market values of the High Yield Bond Portfolio's investments will
change in response to interest rate changes and other factors. During periods
of falling interest rates, the values of fixed income securities generally rise.
Conversely, during periods of rising interest rates, the values of such
securities generally decline. Changes by recognized rating agencies in the
ratings of any fixed income security and in the ability of an issuer to make
payments of interest and principal may also affect the value of these
investments.
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