<PAGE>
SEI INTERNATIONAL TRUST
INTERNATIONAL EQUITY PORTFOLIO
EUROPEAN EQUITY PORTFOLIO
PACIFIC BASIN EQUITY PORTFOLIO
EMERGING MARKETS EQUITY PORTFOLIO
INTERNATIONAL FIXED INCOME PORTFOLIO
SUPPLEMENT DATED JULY 21, 1995 TO
THE INSTITUTIONAL CLASS PROSPECTUS
DATED NOVEMBER 2, 1994
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 IN
CONJUNCTION WITH SUCH PROSPECTUS.
___________________
A Statement of Additional Information dated June 28, 1995 has been filed with
the Securities and Exchange Commission and is available without charge through
the Distributor, SEI Financial Services Company, 680 East Swedesford Road,
Wayne, PA 19087 or by calling 1-800-342-5734.
___________________
At a meeting held on December 6-7, 1994, the Board of Trustees of the Trust
voted to change the name of the International Equity Portfolio to the "Core
International Equity Portfolio" effective December 16, 1994.
___________________
At a meeting scheduled to be held in July, 1995, shareholders of record of each
Portfolio at the close of business on April 20, 1995 will be voting to (i)
amend, reclassify or eliminate certain of the Trust's fundamental investment
limitations to provide management efficiency and investment flexibility, and to
minimize the need for shareholder meetings to change certain investment
limitations in the future; (ii) approve the "Manager of Managers" structure
wherein the Board of Trustees may, upon the recommendation of SEI Financial
Management Corporation ("SFM"), appoint additional or replacement investment
sub-advisers for the International Fixed Income, European Equity and Pacific
Basin Equity Portfolios without seeking approval of those Portfolio's
shareholders (which arrangement also requires an order of exemption from the
Securities and Exchange Commission before becoming effective); (iii) approve SFM
as the investment adviser for the International Fixed Income, European Equity
and Pacific Basin Equity Portfolios in connection with the "Manager of Managers"
structure; and (iv) approve Strategic Fixed Income L.P., Morgan Grenfell
Investment Services Limited and Schroder Capital Management International
Limited as investment sub-advisers for the International Fixed Income, European
Equity and Pacific Basin Equity Portfolios, respectively.
___________________
1
<PAGE>
The "ANNUAL OPERATING EXPENSES" table on page 2 is amended and restated to read
as follows:
ANNUAL OPERATING EXPENSES (AS A PERCENTAGE OF AVERAGE NET ASSETS)/1/
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CORE EMERGING
INTERNATIONAL EUROPEAN PACIFIC MARKETS INTERNATIONAL
EQUITY EQUITY BASIN EQUITY EQUITY FIXED INCOME
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Management/Advisory Fees (after fee
waiver and reimbursement)/1/ .91% .80% .78% .80% .57%
12b-1 Fees/2/ .15% .15% .15% .15% .15%
Other Expenses .19% .35% .37% 1.00% .28%
- ----------------------------------------------------------------------------------------------------------------------------------
Total Operating Expenses (after fee
waiver and reimbursement)/3/ 1.25% 1.30% 1.30% 1.95% 1.00%
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
1 SEI Financial Management Corporation ("SFM"), in its capacity as Manager for
each Portfolio, has waived, on a voluntary basis, a portion of its management
fee, and the management/advisory fees shown reflect this voluntary waiver.
SFM reserves the right to terminate its waiver at any time in its sole
discretion. Absent such fee waiver, management/advisory fees would be .93%
for the Core International Equity Portfolio, 1.13% for the European Equity
Portfolio, 1.20% for the Pacific Basin Equity Portfolio and .90% for the
International Fixed Income Portfolio. For the Emerging Markets Equity
Portfolio, SFM has agreed to waive its management fee, and, if necessary, pay
other operating expenses of the Portfolio in an amount that operates to limit
the total operating expenses of the Class A Shares. Absent this fee waiver
and expense reimbursement, management/advisory fees would be 1.70% for the
Emerging Markets Equity Portfolio.
2 The 12b-1 fees shown reflect each Portfolio's current 12b-1 budget for
reimbursement of expenses. The maximum 12b-1 fees payable by Class A shares
for each Portfolio are .30% .
3 Absent the voluntary fee waiver and expense reimbursement described above,
total operating expenses would be 1.27% for the Core International Equity
Portfolio, 1.78% for the European Equity Portfolio, 1.87% for the Pacific
Basin Equity Portfolio, 2.85% for the Emerging Markets Equity Portfolio and
1.48% for the International Fixed Income Portfolio. Additional information
may be found under "The Advisers," "The Sub-Advisers" and "The Manager and
Shareholder Servicing Agent."
================================================================================
______________
The "EXAMPLE" table on page 2 is amended and restated to read as follows:
Example
- --------------------------------------------------------------------------------
An investor in a Portfolio would pay the following expenses on
a $1,000 investment assuming (1) 5% annual return and (2)
redemption at the end of each time period:
<TABLE>
<CAPTION>
1 YR. 3 YRS. 5 YRS. 10 YRS.
----- ------ ------ -------
<S> <C> <C> <C> <C>
Core International Equity $13.00 $40.00 $ 69.00 $151.00
European Equity $13.00 $41.00 $ 71.00 $157.00
Pacific Basin Equity $13.00 $41.00 $ 71.00 $157.00
Emerging Markets Equity $20.00 $61.00 $105.00 $227.00
International Fixed Income $10.00 $32.00 $ 55.00 $122.00
- ---------------------------------------------------------------------------------------------------------------------------------
</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. A person who purchases
shares through 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 Portfolios' Class A shares. Each Portfolio also offers
Class D shares, which are subject to the same expenses except that Class D
shares bear sales loads and 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," "The 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").
________________
2
<PAGE>
The "FINANCIAL HIGHLIGHTS" tables on pages 3-4 are amended and restated to read
as follows:
FINANCIAL HIGHLIGHTS _________________________________________________________
The following information has been audited (except as specifically noted) by
Price Waterhouse LLP, the Trust's independent accountants, as indicated in
their report dated April 11, 1995 on the Trust's financial statements as of
April 11, 1995 included in the Trust's Statement of Additional Information
under "Financial Highlights." In addition, unaudited financial information for
the period January 17, 1995 through May 17, 1995 for the Emerging Markets
Equity Portfolio is provided below. Additional performance information is set
forth in the 1995 Annual Report to Shareholders and is available upon request
and without charge by calling 1-800-342-5734. This information should be read
in conjunction with the Trust's financial statements and notes thereto.
FOR A CLASS A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CORE INTERNATIONAL EQUITY PORTFOLIO
-----------------------------------
3/1/94 3/1/93 3/1/92 3/1/91 3/1/90 12/20/89
to to to to to to
2/8/95 2/28/94 2/28/93 2/29/92 2/28/91 2/28/90/1/
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning
of Period $11.00 $8.93 $9.09 $9.56 $9.62 $10.00
- ------------------------------------------------------------------------------------------------------------------------------------
Income from Investment
Operations:
Net Investment Income
(Loss) 0.15 0.13 0.16 0.19 0.18 0.04
Net Realized and
Unrealized Gains (Losses) (0.97) 2.05 0.04 (0.36) (0.14) (0.42)
- ------------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations (0.82) 2.18 0.20 (0.17) 0.04 (0.38)
- ------------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Distributions from Net
Investment Income/2/ -- (0.11) (0.36) (0.30) -- --
Distributions from
Realized Capital Gains (0.59) -- -- -- (0.01) --
Return of Capital -- -- -- -- (0.09) --
- ------------------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.59) (0.11) (0.36) (0.30) (0.10) --
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $9.59 $11.00 $8.93 $9.09 $9.56 $9.62
====================================================================================================================================
Total Return (7.67)% 24.44% 2.17% (1.63)% 0.36% (3.70)%
====================================================================================================================================
Ratios and Supplemental Data:
Net Assets, End of Period (000) $328,503 $503,498 $178,287 $92,456 $35,829 $8,661
Ratio of Expenses to
Average Net Assets 1.19% 1.10% 1.10% 1.10% 1.10% 1.10%
Ratio of Expenses to Average Net
Assets (Excluding Waivers) 1.21% 1.24% 1.53% 1.52% 1.64% 5.67%
Ratio of Net Investment
Income (Loss) to Average Net
Assets 1.30% 1.46% 1.80% 2.07% 3.52% 3.13%
Ratio of Net Investment
Income (Loss) to
Average Net Assets
(Excluding Waivers) 1.28% 1.32% 1.37% 1.63% 2.98% (1.44)%
Portfolio Turnover Rate 64% 19% 23% 79% 14% --%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
1 The Core International Equity Class A shares were offered beginning December
20, 1989. All ratios and total return for the period have been annualized.
2 Distributions from net investment income include distributions of certain
foreign currency gains and losses.
3
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED) _______________________________________________
FOR A CLASS A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EUROPEAN PACIFIC BASIN EMERGING MARKETS INTERNATIONAL
EQUITY PORTFOLIO EQUITY PORTFOLIO EQUITY PORTFOLIO FIXED INCOME PORTFOLIO
---------------- ---------------- ---------------- ----------------------
(unaudited)
4/29/94 4/29/94 1/17/95 1/17/95 3/1/94 9/1/93
to to to to to to
2/28/95/1/ 2/28/95/2/ 5/17/95 2/28/95/3/ 2/28/95 2/28/94/4/
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $10.00 $10.00 $10.00 $10.00 $10.23 $10.00
- ------------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net Investment Income (Loss) 0.06 (0.02) 0.02 0.01 0.43 0.15
Net Realized and Unrealized Gains (0.11) (1.25) 1.09 0.26 0.40 0.17
(Losses)
- ------------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations (0.05) (1.27) 1.11 0.27 0.83 0.32
- ------------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Distributions from Net Investment
Income/5/ (0.05) -- -- -- (0.62) (0.09)
Distributions from Realized Capital
Gains -- -- -- -- (0.02) --
Return of Capital -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.05) -- -- -- (0.64) (0.09)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $9.90 $8.73 $11.11 $10.27 $10.42 $10.23
===================================================================================================================================
Total Return (0.40)% (12.70)% 11.10% 2.70% 8.43% 6.41%
===================================================================================================================================
Ratios and Supplemental Data:
Net Assets, End of Period (000) $36,278 $33,048 $11,519 $5,300 $42,580 $23,678
Ratio of Expenses to Average Net
Assets 1.30% 1.30% 1.95% 1.95% 1.00% 1.00%
Ratio of Expenses to Average Net
Assets (Excluding Waivers) 1.57% 1.68% 3.30% 4.98% 1.30% 1.61%
Ratio of Net Investment Income
(Loss) to Average Net Assets 1.02% (0.41)% 1.17% 1.79% 4.68% 3.81%
Ratio of Net Investment Income
(Loss) to Average Net
Assets (Excluding Waivers) 0.75% (0.79)% (0.18)% (1.24)% 4.38% 3.20%
Portfolio Turnover Rate 29% 9% 60% -- 303% 126%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
1 The European Equity Class A shares were offered beginning April 29, 1994. All
ratios and total return for the period have been annualized.
2 The Pacific Basin Equity Class A shares were offered beginning April 19,
1994. All ratios and total return for the period have been annualized.
3 The Emerging Markets Equity Class A shares were offered beginning January 17,
1995. All ratios for that period have been annualized.
4 The International Fixed Income Class A shares were offered beginning
September 1, 1993. All ratios and total return for the period have been
annualized.
5 Distributions from net investment income include distributions of certain
foreign currency gains and losses.
___________
After the last paragraph under the heading "EMERGING MARKETS EQUITY" in the
"GENERAL INVESTMENT POLICIES" section on page 9, the following language is
inserted:
The Fund's investments in emerging markets can be considered speculative, and
therefore may offer higher potential for gains and losses than developed
markets of the world. With respect to any emerging country, there is the
greater potential for nationalization, expropriation or confiscatory taxation,
political changes, government regulation, social instability or diplomatic
developments (including war) which could adversely affect the economies of or
investments in such countries. The economies of developing countries generally
are heavily dependent upon international trade and, accordingly, have been and
may continue to be
4
<PAGE>
adversely affected by trade barriers, exchange controls, managed adjustments in
relative currency values and other protectionist measures imposed or negotiated
by the countries with which they trade.
____________________
The first sentence in the second paragraph in the "MANAGER AND SHAREHOLDER
SERVICING AGENT" section on page 13 is amended and restated to read as follows:
For these services, the Manager is entitled to a fee which is calculated daily
and paid monthly at an annual rate of .45% of the Core International Equity
Portfolio, .80% of the average daily net assets of the European Equity and
Pacific Basin Equity Portfolios, .65% of the average daily net assets of the
Emerging Markets Equity Portfolio and .60% of the average daily net assets of
the International Fixed Income Portfolio.
____________________
The last paragraph in the "MANAGER AND SHAREHOLDER SERVICING AGENT" section on
page 13 is amended and restated to read as follows:
For the fiscal year ended February 28, 1995, the Portfolios paid SEI Financial
Management Corporation ("SFM") fees (shown as a percentage of average daily net
assets after fee waivers) as follows: Core International Equity--.56%;
European Equity--.53%; Pacific Basin Equity--.42%; and International Fixed
Income--.35%. For the fiscal year ended February 28, 1995, SFM waived all
management fees and reimbursed expenses of the Emerging Markets Equity
Portfolio equivalent to 2.38% of its average daily net assets.
____________________
The second sentence under the heading "MORGAN GRENFELL INVESTMENT SERVICES
LIMITED" in "THE ADVISERS" section on page 14 is amended and restated to read as
follows:
MG, a subsidiary of Morgan Grenfell Asset Management Limited, managed over $9.5
billion in assets as of December 31, 1994.
____________________
After the last paragraph under the heading "MORGAN GRENFELL INVESTMENT SERVICES
LIMITED" in "THE ADVISERS" section on page 14, the following language is
inserted:
For the fiscal year ended February 28, 1995, MG received an advisory fee of
.325% of the European Equity Portfolio's average daily net assets.
____________________
The last sentence of the first paragraph under the heading "SCHRODER CAPITAL
MANAGEMENT INTERNATIONAL LIMITED" in "THE ADVISERS" section on page 14 is
amended and restated to read as follows:
As of March 1, 1995, the Schroder Group had over $80 billion in assets under
management. As of that date, SC had over $13 billion in assets under
management.
____________________
After the last paragraph under the heading "SCHRODER CAPITAL MANAGEMENT
INTERNATIONAL LIMITED" in "THE ADVISERS" section on page 14, the following
language is inserted:
For the fiscal year ended February 28, 1995, SC received an advisory fee of
.40% of the Pacific Basin Equity Portfolio's average daily net assets.
____________________
The last sentence of the first paragraph under the heading "SEI FINANCIAL
MANAGEMENT CORPORATION" in "THE ADVISERS" section on page 15 is amended and
restated to read as follows:
5
<PAGE>
As of March 31, 1995, assets for which SEI Financial Management Corporation
("SFM") served as manager totalled approximately $48 billion.
__________________
After the last paragraph under the heading "SEI FINANCIAL MANAGEMENT
CORPORATION" in "THE ADVISERS" section on page 15 the following is inserted:
SFM has managed the Core International Equity and Emerging Markets Equity
Portfolios since November 7, 1994. For the fiscal year ended February 28,
1995, SFM received the following advisory fees (shown here as a percentage of
average daily net assets): Core International Equity Portfolio .475% and
Emerging Markets Equity Portfolio 1.05%.
__________________
The third and fourth sentence of the first paragraph under the heading
"STRATEGIC FIXED INCOME L.P." in "THE ADVISERS" section on page 15 is amended
and restated to read as follows:
As of March 1, 1995, SFI managed $4 billion in global and international fixed
income portfolios. Together, as of March 1, 1995, SFI and SIM managed over $15
billion in client assets.
__________________
The last sentence of the last paragraph under the heading "STRATEGIC FIXED
INCOME L.P." in "THE ADVISERS" section on page 15 is amended and restated to
read as follows:
As of the fiscal year ended February 28, 1995, the Portfolio paid advisory fees
of .25% of its average daily net assets.
__________________
The second sentence of the second paragraph under the heading "MONTGOMERY ASSET
MANAGEMENT, L.P." in "THE SUB-ADVISERS" section on page 15 is amended and
restated to read as follows:
As of March 31, 1995, MAM had approximately $4.5 billion in assets under
management.
__________________
After the last paragraph under the heading "MONTGOMERY ASSET MANAGEMENT, L.P."
in "THE SUB-ADVISERS" section on page 16, the following language is inserted:
For the fiscal year ended February 28, 1995, MAM received a sub-advisory fee of
.98% of the Portfolio's average daily net assets.
__________________
After the second sentence of the last paragraph under the heading "ACADIAN ASSET
MANAGEMENT, INC." in "THE SUB-ADVISERS" section on page 16, the following
sentence is inserted:
Acadian has managed the Core International Equity Portfolio since November 7,
1994.
__________________
The fourth sentence of the second paragraph under the heading "WORLDINVEST
LIMITED" in "THE SUB-ADVISERS" section on page 17 is amended and restated to
read as follows:
Total global assets under management as of February 28, 1995 were more than
$5.7 billion, of which more than $3.0 billion were invested in global equities.
__________________
After the second sentence of the last paragraph under the heading "WORLDINVEST
LIMITED" in "THE SUB-ADVISERS" section on page 17, the following sentence is
inserted:
WorldInvest has managed the Core International Equity Portfolio since November
7, 1994.
6
<PAGE>
__________________
After the last paragraph of the "DISTRIBUTION" section on page 17, the following
language is inserted:
Currently, the distribution budget (shown here as a percentage of average daily
net assets) for the Core International Equity, European Equity, Pacific Basin
Equity, Emerging Markets Equity and International Fixed Income Portfolios is
.15%. Distribution expenses not attributable to a specific Portfolio are
allocated among each of the Portfolios of the Trust based on average net
assets.
The Class D Plan, in addition to providing for the reimbursement payments
described above, provides for payments to the Distributor in an amount not to
exceed .30% of the Portfolio's average daily net assets attributable to Class D
shares. These additional payments are characterized as "compensation," and are
not directly tied to expenses incurred by the Distributor; the payments the
Distributor receives during any year may therefore be higher or lower than its
actual expenses. This additional payment may be used to compensate financial
institutions that provide distribution-related services to their customers.
It is possible that an institution may offer different classes of shares to its
customers and thus receive different compensation with respect to different
classes. These financial institutions may also charge separate fees to their
customers.
The Trust may also execute brokerage or other agency transactions through the
Distributor for which the Distributor may receive usual and customary
compensation.
In addition, the Distributor may, from time to time in its sole discretion,
institute one or more promotional incentive programs, which will be paid by the
Distributor from the sales charge it receives or from any other source
available to it. Under any such program, the Distributor will provide
promotional incentives, in the form of cash or other compensation, including
merchandise, airline vouchers, trips and vacation packages, to all dealers
selling shares of the Portfolios. Such promotional incentives will be offered
uniformly to all dealers and predicated upon the amount of shares of the
Portfolios sold by the dealer.
__________________
After the third paragraph in the "PURCHASE AND REDEMPTION OF SHARES" section on
page 18, the following language is inserted:
In addition, 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 last sentence of the fourth paragraph in the "PURCHASE AND REDEMPTION OF
SHARES" section on page 18 is amended and restated to read as follows:
Net asset value per share is determined daily as of the close of business of
the New York Stock Exchange (currently, 4:00 p.m. Eastern time) on any Business
Day.
__________________
After the last paragraph under the "GENERAL INFORMATION - THE TRUST" section on
page 21, the following language is inserted:
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.
7
<PAGE>
"THE DESCRIPTION OF PERMITTED INVESTMENTS - SHORT SALES" section on page 29 is
amended and restated as follows:
The International Fixed Income Portfolio may sell securities "short against the
box." A short sale is "against the box" if at all times during which the short
position is open, the Portfolio owns at least an equal amount of the securities
or securities convertible into, or exchangeable without further consideration
for, securities of the same issue as the securities that are sold short.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
8
<PAGE>
SEI INTERNATIONAL TRUST
Manager and Shareholder Servicing Agent:
SEI Financial Management Corporation
Distributor:
SEI Financial Services Company
Investment Advisers and Sub-Advisers:
SEI Financial Management Corporation
Acadian Asset Management, Inc.
Montgomery Asset Management, L.P.
Morgan Grenfell Investment Services Limited
Schroder Capital Management International Limited
Strategic Fixed Income L.P.
WorldInvest Limited
This Statement of Additional Information is not a Prospectus. It is intended to
provide additional information regarding the activities and operations of SEI
International Trust (the "Trust") and should be read in conjunction with the
Trust's Prospectuses dated June 28, 1995. Prospectuses may be obtained through
SEI Financial Services Company, 680 East Swedesford Road, Wayne, PA
19087-1658.
<TABLE>
<CAPTION>
TABLE OF CONTENTS
<S> <C>
The Trust...................................................... S-2
Description of Permitted Investments........................... S-2
Description of Ratings......................................... S-4
Investment Limitations......................................... S-8
Non-Fundamental Policies....................................... S-8
The Manager and Shareholder Servicing Agent.................... S-9
The Advisers and Sub-Advisers.................................. S-10
Distribution................................................... S-11
Trustees and Officers of the Trust............................. S-12
Performance.................................................... S-14
Purchase and Redemption of Shares.............................. S-16
Shareholder Services (Class D shares).......................... S-17
Taxes.......................................................... S-18
Portfolio Transactions......................................... S-19
Description of Shares.......................................... S-22
Limitation of Trustees' Liability.............................. S-22
Voting......................................................... S-22
Shareholder Liability.......................................... S-22
Control Persons and Principal Holders of Securities............ S-23
Experts........................................................ S-23
Financial Statements........................................... S-23
</TABLE>
June 28, 1995, as amended July 21, 1995
SEI-F-046-10
<PAGE>
THE TRUST
SEI International Trust (the "Trust") is an open-end management investment
company established under Massachusetts law as a Massachusetts business trust
under a Declaration of Trust dated June 30, 1988 and which has diversified and
non-diversified portfolios. The Declaration of Trust permits the Trust to offer
separate series ("portfolios") of units of beneficial interest ("shares") and
separate classes of portfolios. Except for differences between a Portfolio's
Class A shares and Class D shares pertaining to distribution plans, voting
rights, dividends and transfer agent expenses, each share of each portfolio
represents an equal proportionate interest in that portfolio with each other
share of that portfolio.
This Statement of Additional Information relates to the following portfolios:
Core International Equity, European Equity, Pacific Basin Equity, Emerging
Markets Equity and International Fixed Income Portfolios (the "Portfolios" and
each of these, a "Portfolio"), and any different classes of the Portfolios.
DESCRIPTION OF PERMITTED INVESTMENTS
Bank Obligations of United States commercial banks or savings and loan
institutions which the Portfolios may buy include certificates of deposit, time
deposits and bankers' acceptances. A time deposit is an account containing a
currency balance pledged to remain at a particular bank for a specified period
in return for payment of interest. A bankers' acceptance is a bill of exchange
guaranteed by a bank or trust company for payment within one to six months.
Bankers' acceptances are used to provide manufacturers and exporters with
capital to operate between the time of manufacture or export and payment by the
purchaser. Bank obligations are permitted investments for the Portfolios.
Commercial Paper which the Portfolios may purchase includes variable amount
master demand notes which may or may not be backed by bank letters of credit.
These notes permit the investment of fluctuating amounts at varying market rates
of interest pursuant to direct arrangements between a Portfolio, as lender, and
the borrower. Such notes provide that the interest rate on the amount
outstanding varies on a daily, weekly or monthly basis depending upon a stated
short-term interest rate index. There is no secondary market for the notes.
The following descriptions of commercial paper ratings have been published by
Standard & Poor's Corporation ("S&P") and Moody's Investors Service, Inc.
("Moody's"), respectively.
Commercial paper rated A by S&P is regarded by S&P as having the greatest
capacity for timely payment. Issues rated A are further refined by use of the
numbers 1+, 1, 2 and 3 to indicate the relative degree of safety. Issues rated
A-1+ are those with an "overwhelming degree" of credit protection. Those rated
A-1 reflect a "very strong" degree of safety regarding timely payment. Those
rate A-2 reflect a "satisfactory" degree of safety regarding timely payment.
Commercial paper issuers rated Prime-1 or Prime-2 by Moody's are judged by
Moody's to be of "superior" quality and "strong" quality, respectively, on the
basis of relative repayment capacity.
Forward Foreign Currency Contracts involve an obligation to purchase or sell a
specified currency at a future date at a price set at the time of the contract.
Forward currency contracts do not eliminate fluctuations in the values of
portfolio securities but rather allow a Portfolio to establish a rate of
exchange for a future point in time.
When entering into a contract for the purchase or sale of a security in a
foreign currency, a Portfolio may enter into a foreign forward currency contract
for the amount of the purchase or sale price to protect against variations,
between the date the security is purchased or sold and the date on which payment
is made or received, in the value of the foreign currency relative to the United
States dollar or other foreign currency.
S-2
<PAGE>
Also, when the Adviser anticipates that a particular foreign currency may
decline substantially relative to the United States dollar or other leading
currencies, in order to reduce risk, a Portfolio may enter into a forward
contract to sell, for a fixed amount, the amount of foreign currency
approximating the value of its securities denominated in such foreign currency.
With respect to any such forward foreign currency contract, it will not
generally be possible to match precisely the amount covered by that contract and
the value of the securities involved due to changes in the values of such
securities resulting from market movements between the date the forward contract
is entered into and the date it matures. In addition, while forward currency
contracts may offer protection from losses resulting from declines in value of a
particular foreign currency, they also limit potential gains which might result
from increases in the value of such currency. A Portfolio will also incur costs
in connection with forward foreign currency contracts and conversions of foreign
currencies into United States dollars. The Portfolios may enter into forward
foreign currency contracts.
Investment company shares that are purchased by a Portfolio shall be limited to
shares of money market open-end investment companies and the Adviser will waive
its fee on that portion of the assets placed in such money market open-end
investment companies.
Obligations of Supranational Agencies may be purchased by the Portfolios.
Currently the Portfolios intend to invest only in obligations issued or
guaranteed by the Asian Development Bank, Inter-American Development Bank,
International Bank for Reconstruction and Development (World Bank), African
Development Bank, European Coal and Steel Community, European Economic
Community, European Investment Bank and the Nordic Investment Bank.
Repurchase Agreements in which the Portfolios may invest are agreements under
which securities are acquired from a securities dealer or bank subject to resale
on an agreed upon date and at an agreed upon price which includes principal and
interest. The Portfolio bears a risk of loss in the event that the other party
to a repurchase agreement defaults on its obligations and the Portfolio is
delayed or prevented from exercising its rights to dispose of the collateral
securities. The Adviser and Sub-Advisers (collectively, the "Advisers") enter
into repurchase agreements only with financial institutions which they deem to
present minimal risk of bankruptcy during the term of the agreement based on
guidelines which are periodically reviewed by the Board of Trustees. These
guidelines currently permit the Portfolios to enter into repurchase agreements
only with approved primary securities dealers, as recognized by the Federal
Reserve Bank of New York, which have minimum net capital of $100 million, or
with a member bank of the Federal Reserve System. Repurchase agreements are
considered to be loans collateralized by the underlying security. Repurchase
agreements entered into by the Portfolios will provide that the underlying
security at all times shall have a value at least equal to 102% of the price
stated in the agreement. The underlying security will be marked to market daily.
The Advisers monitor compliance with this requirement. Under all repurchase
agreements entered into by a Portfolio, the Custodian or its agent must take
possession of the underlying collateral. However, if the seller defaults, the
Portfolio could realize a loss on the sale of the underlying security to the
extent that the proceeds of sale are less than the resale price. In addition,
even though the Bankruptcy Code provides protection for most repurchase
agreements, if the seller should be involved in bankruptcy or insolvency
proceedings, a Portfolio may incur delay and costs in selling the security and
may suffer a loss of principal and interest if the Portfolio is treated as an
unsecured creditor.
United States Government Securities include obligations issued by agencies or
instrumentalities of the United States Government including, among others,
Export Import Bank of the United States, Farmers Home Administration, Federal
Farm Credit System, Federal Housing Administration, Maritime Administration,
Small Business Administration and The Tennessee Valley Authority. Obligations of
instrumentalities of the United States Government include securities issued by,
among others, Federal Home Loan Banks, Federal Home Loan Mortgage Corporation,
Federal Intermediate Credit Banks, Federal Land Banks, Federal National Mortgage
Association and the United States Postal Service. Some of these securities are
supported by the full faith and credit of the United States Treasury (e.g.,
Government National Mortgage Association), others are
S-3
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supported by the right of the issuer to borrow from the Treasury (e.g., Federal
Farm Credit Bank) and still others are supported only by the credit of the
instrumentality (e.g., Federal National Mortgage Association). Guarantees of
principal by agencies or instrumentalities of the United States Government may
be a guarantee of payment at the maturity of the obligation so that in the event
of a default prior to maturity there might not be a market and thus no means of
realizing on the obligation prior to maturity. Guarantees as to the timely
payment of principal and interest do not extend to the value or yield of these
securities nor to the value of a Portfolio's shares.
DESCRIPTION OF RATINGS
The following descriptions are summaries of published ratings.
Description of Commercial Paper Ratings
Commercial paper rated A by S&P is regarded by S&P as having the greatest
capacity for timely payment. Issues rated A are further refined by use of the
numbers 1 +,1 and 2, to indicate the relative degree of safety. Issues rated A-
1+ are those with an "overwhelming degree" of credit protection. Those rated
A-1 reflect a "very strong" degree of safety regarding timely payment.
Commercial paper issues rated Prime-1 by Moody's are judged by Moody's to be of
the "highest" quality on the basis of relative repayment capacity.
The rating Fitch-1 (Highest Grade) is the highest commercial rating assigned by
Fitch Investors Services, Inc. ("Fitch"). Paper rated Fitch-1 is regarded as
having the strongest degree of assurance for timely payment. The rating Fitch-2
(Very Good Grade) is the second highest commercial paper rating assigned by
Fitch which reflects an assurance of timely payment only slightly less in degree
than the strongest issues.
The rating Duff-1 is the highest commercial paper rating assigned by Duff and
Phelps, Inc. ("Duff"). Paper rated Duff-1 is regarded as having very high
certainty of timely payment with excellent liquidity factors which are supported
by ample asset protection. Risk factors are minor. Paper rated Duff-2 is
regarded as having good certainty of timely payment, good access to capital
markets and sound liquidity factors and company fundamentals. Risk factors are
small.
The designation A1 by IBCA Limited ("IBCA") indicates that the obligation is
supported by a very strong capacity for timely repayment. Those obligations
rated A1+ are supported by the highest capacity for timely repayment are
supported by a strong capacity for timely repayment, although such capacity may
be susceptible to adverse changes in business, economic or financial
conditions.
The rating TBW-1 by Thomson BankWatch ("Thomson") indicates a very high
likelihood that principal and interest will be paid on a timely basis.
Description of Municipal Note Ratings
Moody's highest rating for state and municipal and other short-term notes is
MIG-1 and VMIG-1. Short-term municipal securities rated MIG-1 or VMIG-1 are of
the best quality. They have strong protection form established cash flows of
funds for their servicing or from established and broad-based access to the
market for refinancing or both. Short-term municipal securities rated MIG-2 or
VMIG-2 are of high quality. Margins of protection are ample although not so
large as in the preceding group.
An S&P note rating reflects the liquidity concerns and market access risks
unique to notes. Notes due in 3 years or less will likely receive a note rating.
Notes maturing beyond 3 years will most likely receive a long-term debt rating.
The following criteria will be used in making that assessment:
. Amortization schedule (the larger the final maturity relative to other
maturities, the more likely it will be treated as a note).
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<PAGE>
. Source of Payment (the more dependent the issue is on the market for its
refinancing, the more likely it will be treated as a note).
S&P note rating symbols are as follows:
SP-1 Very strong or strong capacity to pay principal and interest. Those
issues determined to possess overwhelming safety characteristics will be given a
plus(+) designation.
SP-2 Satisfactory capacity to pay principal and interest.
Description of Corporate Bond Ratings
Bonds rated AAA have the highest rating S&P assigns to a debt obligation. Such a
rating indicates an extremely strong capacity to pay principal and interest.
Bonds rated AA also qualify as high-quality debt obligations. Capacity to pay
principal and interest is very strong, and in the majority of instances they
differ from AAA issues only in small degree. Debt rated A has a strong capacity
to pay interest and repay principal although it is somewhat more susceptible to
the adverse effects of changes in circumstances and economic conditions than
debt in higher rated categories. Debt rated BBB is regarded as having an
adequate capacity to pay interest and repay principal. Whereas it normally
exhibits adequate protection parameters, adverse economic conditions or changing
circumstances are more likely to lead to a weakened capacity to pay interest and
repay principal for debt in this category than in higher rated categories. Debt
rated BB and B is regarded as having predominantly speculative characteristics
with respect to capacity to pay interest and repay principal. BB indicates the
least degree of speculation and C the highest degree of speculation. While such
debt will likely have some quality and protective characteristics, these are
outweighed by large uncertainties or major risk exposures to adverse conditions.
Debt rated BB has less near-term vulnerability to default than other speculative
grade debt. However, it faces major ongoing uncertainties or exposure to adverse
business, financial, or economic conditions that could lead to inadequate
capacity to meet timely interest and principal payments. The BB rating category
is also used for debt subordinated to senior debt that is assigned an actual or
implied BBB- rating. Debt rate B has greater vulnerability to default but
presently has the capacity to meet interest payments and principal repayments.
Adverse business, financial, or economic conditions would likely impair capacity
or willingness to pay interest and repay principal. The B rating category also
is used for debt subordinated to senior debt that is assigned an actual or
implied BB or BB- rating.
Bonds which are rated Aaa by Moody's are judged to be of the best quality. They
carry the smallest degree of investment risk and are generally referred to as
"gilt edge." Interest payments are protected by a large, or an exceptionally
stable, margin and principal is secure. While the various protective elements
are likely to change, such changes as can be visualized are most unlikely to
impair the fundamentally strong position of such issues. Bonds rated Aa by
Moody's are judged by Moody's to be of high quality by all standards. Together
with bonds rated Aaa, they comprise what are generally known as high-grade
bonds. They are rated lower than the best bonds because margins of protection
may not be as large as in Aaa securities or fluctuation of protective elements
may be of greater amplitude or there may be other elements present which make
the long-term risks appear somewhat larger than in Aaa securities. Bonds which
are rated A possess many favorable investment attributes and are to be
considered as upper-medium grade obligations. Factors giving security to
principal and interest are considered adequate, but elements may be present
which suggest a susceptibility to impairment sometime in the future.
Bonds which are rated Baa are considered as medium-grade obligations (i.e., they
are neither highly protected nor poorly secured). Interest payments and
principal security appear adequate for the present but certain protective
elements may be lacking or may be characteristically unreliable over any great
length of time. Such bonds lack outstanding investment characteristics and in
fact have speculative characteristics as well. Bonds which are rated Ba are
judged to have speculative elements; their future cannot be considered as well-
assured. Often the protection of interest and principal payments may be very
moderate and thereby not well safeguarded during both good and bad times over
the future. Uncertainty of position characterizes bonds in this class.
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<PAGE>
Bonds which are rated B generally lack characteristics of the desirable
investment. Assurance of interest and principal payments or of maintenance of
other terms of the contract over any long period of time may be small.
Moody's bond ratings, where specified, are applied to senior bank obligations
and insurance company senior policyholder and claims obligations with an
original maturity in excess of one year. Obligations relying upon support
mechanisms such as letters-of-credit and bonds of indemnity are excluded unless
explicitly rated.
Obligations of a branch of a bank are considered to be domiciled in the country
in which the branch is located. Unless noted as an exception, Moody's rating on
a bank's ability to repay senior obligations extends only to branches located in
countries which carry a Moody's sovereign rating. Such branch obligations are
rated at the lower of the bank's rating or Moody's sovereign rating for the bank
deposits for the country in which the branch is located.
When the currency in which an obligation is denominated is not the same as the
currency of the country in which the obligation is domiciled, Moody's ratings do
not incorporate an opinion as to whether payment of the obligation will be
affected by the actions of the government controlling the currency of
denomination. In addition, risk associated with bilateral conflicts between an
investor's home country and either the issuer's home country or the country
where an issuer branch is located are not incorporated into Moody's ratings.
Moody's makes no representation that rated bank obligations or insurance company
obligations are exempt from registration under the U.S. Securities Act of 1933
or issued in conformity with any other applicable law or regulation. Nor does
Moody's represent that any specific bank or insurance company obligation is
legally enforceable or is a valid senior obligation of a rated issuer.
Moody's ratings are opinions, not recommendations to buy or sell, and their
accuracy is not guaranteed. A rating should be weighed solely as one factor in
an investment decision and you should make your own study and evaluation of any
issuer whose securities or debt obligations you consider buying or selling.
Bonds rated AAA by Fitch are judged by Fitch to be strictly high grade, broadly
marketable, suitable for investment by trustees and fiduciary institutions
liable to but slight market fluctuation other than through changes in the money
rate. The prime feature of an AAA bond is a showing of earnings several times or
many times interest requirements, with such stability of applicable earnings
that safety is beyond reasonable question whatever changes occur in conditions.
Bonds rated AA by Fitch are judged by Fitch to be of safety virtually beyond
question and are readily salable, whose merits are not unlike those of the AAA
class, but whose margin of safety is less strikingly broad. The issue may be the
obligation of a small company, strongly secured but influenced as to rating by
the lesser financial power of the enterprise and more local type market.
Bonds rated A are considered to be investment grade and of high credit quality.
The obligor's ability to pay interest and repay principal is considered to be
strong, but may be more vulnerable to adverse changes in economic conditions and
circumstances than bonds with higher ratings.
Bonds rated BBB are considered to be investment grade and of satisfactory credit
quality. The obligor's ability to pay interest and repay principal is considered
to be adequate. Adverse changes in economic conditions and circumstances,
however, are more likely to have adverse impact on these bonds, and therefore
impair timely payment. The likelihood that the ratings of these bonds will fall
below investment grade is higher than for bonds with higher ratings. Bonds rated
BB are considered speculative. The obligor's ability to pay interest and repay
principal may be affected over time by adverse economic changes. However,
business and financial alternatives can be identified which could assist the
obligor in satisfying its debt service requirements. Bonds rated B are
considered highly speculative. While bonds in this class are currently meeting
debt service
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<PAGE>
requirements, the probability of continued timely payment of principal and
interest reflects the obligor's limited margin of safety and the need for
reasonable business and economic activity throughout the life of the issue.
Bonds rated Duff-1 are judged by Duff to be of the highest credit qualify with
negligible risk factors; only slightly more than U.S. Treasury debt. Bonds rated
Duff-2, 3 and 4 are judged by Duff to be of high credit quality with strong
protection factors. Risk is modest but may vary slightly from time to time
because of economic conditions.
Bonds rated BBB+, BBB, or BBB- are considered below average protection factors
but still considered sufficient for prudent investment. Considerable BBB
variability in risk during economic cycles. Bonds rated BB+, BB or BB- are
considered below investment grade but deemed likely to meet obligations when
due. Present or prospective financial protection factors fluctuate according to
industry conditions or company fortunes. Overall quality may move up or down
frequently within this category.
Bonds rated B+, B or B- are considered below investment grade and possessing
risk that obligations will not be met when due. Financial protection factors
will fluctuate widely according to economic cycles, industry conditions and/or
company fortunes. Potential exists for frequent changes in the rating within
this category or into a higher or lower rating grade.
Obligations rated AAA by IBCA have the lowest expectation of investment risk.
Capacity for timely repayment of principal and interest is substantial, such
that adverse changes in business, economic or financial conditions are unlikely
to increase investment risk significantly. Obligations for which there is a very
low expectation of investment risk are rated AA by IBCA. Capacity for timely
repayment of principal and interest is substantial. Adverse changes in business,
economic or financial conditions may increase investment risk albeit not very
significantly. Bonds rated A are obligations for which there is a low
expectation of investment risk. Capacity for timely repayment of principal and
interest is strong, although adverse changes in business, economic or financial
conditions may lead to increased investment risk.
Bonds rated BBB are obligations for which there is currently a low expectation
of investment risk. Capacity for timely repayment of principal and interest is
adequate, although adverse changes in business, economic or financial conditions
are more likely to lead to increased investment risk than for obligations in
other categories. Bonds rated BB are obligations for which there is a
possibility of investment risk developing. Capacity for timely repayment of
principal and interest exists, but is susceptible over time to adverse changes
in business, economic or financial conditions. Bonds rated B are obligations for
which investment risk exists. Timely repayment of principal and interest is not
sufficiently protected against adverse changes in business, economic or
financial conditions.
Bonds rated AAA by Thomson BankWatch indicate that the ability to repay
principal and interest on a timely basis is very high. Bonds rated AA indicate
a superior ability to repay principal and interest on a timely basis, with
limited incremental risk compared to issues rated in the highest category.
Bonds rated A indicate the ability to repay principal and interest is strong.
Issues rated A could be more vulnerable to adverse developments (both internal
and external) than obligations with higher ratings.
Bonds rated BBB indicate an acceptable capacity to repay principal and interest.
Issues rated "BBB" are, however, more vulnerable to adverse developments (both
internal and external) than obligations with higher ratings.
While not investment grade, the BB rating suggests that the likelihood of
default is considerably less than for lower-rated issues. However, there are
significant uncertainties that could affect the ability to adequately service
debt obligations. Issues rated B show a higher degree of uncertainty and
therefore greater likelihood of default than higher-rated issues. Adverse
developments could well negatively affect the payment of interest and principal
on a timely basis.
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<PAGE>
INVESTMENT LIMITATIONS
A Portfolio may not:
1. Pledge, mortgage or hypothecate assets except to secure temporary borrowings
as described in the Prospectuses in aggregate amounts not to exceed 10% of
the net assets of such Portfolio taken at current value at the time of the
incurrence of such loan.
2. Make loans, except that the Portfolio may (i) purchase or hold debt
securities in accordance with its investment objectives and policies; (ii)
engage in securities lending as described in this Prospectus and in the
Statement of Additional Information; and (iii) enter into repurchase
agreements, provided that repurchase agreements and time deposits maturing
in more than seven days, and other illiquid securities, including securities
which are not readily marketable or are restricted, are not to exceed, in
the aggregate, 10% of the total assets of the Core International Equity,
European Equity, Pacific Basin Equity, or International Fixed Income
Portfolio.
3. Invest in companies for the purpose of exercising control.
4. Acquire more than 10% of the voting securities of any one issuer.
5. Purchase or sell real estate, real estate limited partnership interests,
commodities or commodities contracts. However, subject to its permitted
investments, the Portfolio may purchase obligations issued by companies
which invest in real estate, commodities or commodities contracts.
6. Make short sales of securities, maintain a short position or purchase
securities on margin, except as described with respect to the International
Fixed Income Portfolio in its Prospectus and except that the Trust may
obtain short-term credits as necessary for the clearance of security
transactions.
7. Act as an underwriter of securities of other issuers except as it may be
deemed an underwriter in selling a portfolio security.
8. Purchase securities of other investment companies except as permitted by the
1940 Act and the rules and regulations thereunder and may only purchase
securities of money market funds. Under these rules and regulations, the
Portfolio is prohibited from acquiring the securities of other investment
companies if, as a result of such acquisition, the Portfolio owns more then
3% of the total voting stock of the company; securities issued by any one
investment company represent more than 5% of the total Portfolio assets; or
securities (other than treasury stock) issued by all investment companies
represent more than 10% of the total assets of the Portfolio. A Portfolio's
purchase of such investment company securities results in the bearing of
expenses such that shareholders would indirectly bear a proportionate share
of the operating expenses of such investment companies, including advisory
feels. This investment restriction does not apply to the Emerging Markets
Equity Portfolio.
9. Issue senior securities (as defined in the 1940 Act) except in connection
with permitted borrowing as described in the Prospectuses and this Statement
of Additional Information or as permitted by rule, regulation or order of
the SEC.
10. 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 that 1/2 of 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.
S-8
<PAGE>
11. 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 current value) would be invested in such
securities.
12. Invest in interests in oil, gas or other mineral exploration or development
programs and oil, gas or mineral leases.
13. Purchase restricted securities (securities which must be registered under
the Securities Act of 1933, as amended (the "1933 Act"), before they may be
offered or sold to the public) or other illiquid securities except as
described in the Prospectuses and this Statement of Additional Information.
The foregoing percentages will apply at the time of the purchase of a security
and shall not be violated unless an excess or deficiency occurs, immediately
after or as a result of a purchase of such security. These investment
limitations and the investment limitations in the Prospectuses are fundamental
policies of the Trust and may not be changed without shareholder approval.
NON-FUNDAMENTAL POLICIES
Each of the Core International Equity, European Equity, Pacific Basin Equity and
Emerging Markets Equity Portfolios may not 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.
The Emerging Markets Equity Portfolio will not 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.
The Emerging Markets Equity Portfolio's investments in illiquid securities,
including securities which are not readily marketable or are restricted, may not
exceed 10% of its total assets.
THE MANAGER AND SHAREHOLDER SERVICING AGENT
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<PAGE>
The Management Agreement provides that the Manager shall not be liable for any
error of judgment or mistake of law or for any loss suffered by the Trust in
connection with the matters to which the Management Agreement relates, except a
loss resulting from willful misfeasance, bad faith or gross negligence on the
part of the Manager in the performance of its duties or from reckless disregard
of its duties and obligations thereunder.
The continuance of the Management Agreement must be specifically approved at
least annually (i) by the vote of a majority of the Trustees or by the vote of a
majority of the outstanding voting securities of the Portfolios, and (ii) by the
vote of a majority of the Trustees of the Trust who are not parties to the
Management Agreement or an "interested person" (as that term is defined in the
1940 Act) of any party thereto, cast in person at a meeting called for the
purpose of voting on such approval. The Management Agreement is terminable at
any time without penalty by the Trustees of the Trust, by a vote of a majority
of the outstanding shares of the Portfolios or by the Manager on not less than
30 days' nor more than 60 days written notice. This Agreement shall not be
assignable by either party without the written consent of the other party.
The Manager, a wholly-owned subsidiary of SEI Corporation ("SEI"), was organized
as a Delaware corporation in 1969 and has its principal business offices at 680
East Swedesford Road, Wayne, PA 19087. Alfred P. West, Jr., Henry H. Greer,
Carmen V. Romeo, and Robert A. Nesher constitute the Board of Directors of the
Manager. Mr. West serves as the Chairman of the Board of Directors and Chief
Executive Officer of SEI. Mr. Greer serves as President and Chief Operating
Officer of the Manager and SEI. SEI and its subsidiaries are leading providers
of funds evaluation services, trust accounting systems, and brokerage and
information services to financial institutions, institutional investors and
money managers. The Manager also serves as manager to the following other
institutional mutual funds: SEI Daily Income Trust; SEI Liquid Asset Trust; SEI
Tax Exempt Trust; SEI Index Funds; SEI Institutional Managed Trust; The Pillar
Funds; Stepstone Funds; The Compass Capital Group of Funds; FFB Lexicon Funds;
The Advisors' Inner Circle Fund; CUFUND; STI Classic Funds; CoreFunds, Inc.;
First American Funds, Inc.; First American Investment Funds, Inc.; The Arbor
Fund; 1784 Funds; Marquis/SM/ Funds; Morgan Grenfell Investment Trust; The PBHG
Funds, Inc.; First American Mutual Funds; Nationar Funds, Inc.; Tax Exempt
Housing Reserve Fund; Inventor Funds, Inc.; Insurance Investment Products Trust;
and Rembrandt Funds.
If operating expenses of any Portfolio exceed limitations established by certain
states, the Manager will pay such excess. The Manager will not be required to
bear expenses of any Portfolio to an extent which would result in the
Portfolio's inability to qualify as a regulated investment company under
provisions of the Internal Revenue Code of 1986, as amended (the "Code"). The
term "expenses" is defined in such laws or regulations, and generally excludes
brokerage commissions, distribution expenses, taxes, interest and extraordinary
expenses. For the fiscal years ended February 29, 1993, February 28, 1994 and
February 28, 1995, the Portfolios paid fees to the Manager as follows:
<TABLE>
<CAPTION>
=================================================================================================================
Fee Waivers and Reimbursements
Fees Paid(Reimbursed) (000) (000)
------------------------------------------------------------------------
1993 1994 1995 1993 1994 1995
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Core International Equity Portfolio $225 $1,586 $2,652 $571 $471 $77
- -----------------------------------------------------------------------------------------------------------------
European Equity Portfolio * * $107 * * $57
- -----------------------------------------------------------------------------------------------------------------
Pacific Basin Equity Portfolio * * $83 * * $76
- -----------------------------------------------------------------------------------------------------------------
Emerging Markets Equity Portfolio * * $(9) * * $11
- -----------------------------------------------------------------------------------------------------------------
International Fixed Income Portfolio * $3 $122 * $40 $84
=================================================================================================================
</TABLE>
*Not in operation during such period.
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THE ADVISER AND SUB-ADVISERS
Each Advisory and Sub-Advisory Agreement provides that each Adviser and each
Sub-Adviser shall not be protected against any liability to the Trust or its
shareholders by reason of willful misfeasance, bad faith or gross negligence on
its part in the performance of its duties or from reckless disregard of its
obligations or duties thereunder.
The continuance of each Advisory and Sub-Advisory Agreement must be specifically
approved at least annually (i) by the vote of a majority of the outstanding
shares of that Portfolio or by the Trustees, and (ii) by the vote of a majority
of the Trustees who are not parties to such Advisory or Sub-Advisory Agreement
or "interested persons" of any party thereto, cast in person at a meeting called
for the purpose of voting on such approval. Each Advisory and Sub-Advisory
Agreement will terminate automatically in the event of its assignment, and is
terminable at any time without penalty by the Trustees of the Trust or, with
respect to a Portfolio, by a majority of the outstanding shares of that
Portfolio, on not less than 30 days nor more than 60 days written notice to the
Adviser or Sub-Adviser, or by the Adviser or Sub-Adviser on 90 days written
notice to the Trust.
For the fiscal years ended February 29, 1993, February 28, 1994, and February
28, 1995, the Portfolios paid to the Advisers the following:
<TABLE>
<CAPTION>
=================================================================================================================
Fees Paid (000) Fee Waivers (000)
------------------------------------------------------------------------
1993 1994 1995 1993 1994 1995
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Core International Equity Portfolio $ 431 $1,063 $1,516 $0 $0 $0
- -----------------------------------------------------------------------------------------------------------------
European Equity Portfolio * * $67 * * $0
- -----------------------------------------------------------------------------------------------------------------
Pacific Basin Equity Portfolio * * $80 * * $0
- -----------------------------------------------------------------------------------------------------------------
Emerging Markets Equity Portfolio * * $4 * * $0
- -----------------------------------------------------------------------------------------------------------------
International Fixed Income Portfolio * $17 $86 * $4 $17
=================================================================================================================
</TABLE>
*Not in operation during such period.
DISTRIBUTION
The Trust has adopted a Distribution Agreement for the Portfolios. The Trust has
also adopted a Distribution Plan ("Institutional Class Plan") for the Class A
shares of the Core International Equity, European Equity, Pacific Basin Equity,
Emerging Markets Equity and International Fixed Income Portfolios and a
Distribution Plan ("Class D Plan") for the shares of the Class D shares of the
Core International Equity, European Equity, Pacific Basin Equity, Emerging
Markets Equity and International Fixed Income Portfolios (the foregoing plans
collectively, the "Distribution Plans") in accordance with the provisions of
Rule 12b-1 under the 1940 Act, which regulates circumstances under which an
investment company may directly or indirectly bear expenses relating to the
distribution of its shares. In this connection, the Board of Trustees has
determined that the Plans and Distribution Agreement are in the best interests
of the shareholders. Continuance of the Plans must be approved annually by a
majority of the Trustees of the Trust and by a majority of the Qualified
Trustees, as defined in the Distribution Plans. The Plans require that quarterly
written reports of amounts spent under the Plans and the purposes of such
expenditures be furnished and reviewed by the Trustees. The Plans may not be
amended to increase materially the amount which may be spent thereunder
without
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approval by a majority of the outstanding shares of the Portfolio or class
affected. All material amendments of the Plans will require approval by a
majority of the Trustees of the Trust and of the Qualified Trustees.
The Class A Plan adopted by the shareholders of the Core International Equity
Portfolio, and adopted by the sole shareholder of the International Fixed Income
Portfolio, provides that the Trust will pay a fee of up to .30% of the average
daily net assets of the Core International Equity Portfolio, European Equity,
Pacific Basin Equity, Emerging Markets Equity and International Fixed Income
Portfolios Class A shares that the Distributor can use to compensate broker-
dealers and service providers, including SEI Financial Services Company and its
affiliates, which provide distribution-related services to shareholders of the
Core International Equity Portfolio, European Equity, Pacific Basin Equity,
Emerging Markets Equity and International Fixed Income Portfolios Class A shares
or their customers who beneficially own shares of such series. The Class A Plan
provides that if there are more than one series of Trust securities having an
institutional class, expenses incurred pursuant to the Class A Plan will be
allocated among such several series of the Trust on the basis of their relative
net asset values, unless otherwise determined by a majority of the Qualified
Trustees.
The Class D Plan provides that the Trust will pay a fee of up to .30% of the
average daily net assets of a Portfolio's Class D shares that the Distributor
can use to compensate broker-dealers and service providers, including SEI
Financial Services Company and its affiliates, which provide distribution-
related services to Core International Equity, European Equity, Pacific Basin
Equity, Emerging Markets Equity and International Fixed Income Portfolios Class
D shares shareholders or their customers who beneficially own Class D shares.
The Class D Plan provides that, if there are more than one series of Trust
securities having a Class D class, expenses incurred pursuant to the Class D
Plan will be allocated among such several series of the Trust on the basis of
their relative net asset values, unless otherwise determined by a majority of
the Qualified Trustees. The Class D Plan also provides for additional payments
to the Distributor of up to .30% of the Class D shares' average daily net assets
on an annualized basis. See "Distribution" in the Class D Prospectus.
The distribution related services that may be provided under the Plans include
establishing and maintaining customer accounts and records; aggregating and
processing purchase and redemption requests from customers; placing net purchase
and redemption orders with the Distributor; automatically investing customer
account cash balances; providing periodic statements to customers; arranging for
wires; answering customer inquiries concerning their investments; assisting
customers in changing dividend options, account designations, and addresses;
performing sub-accounting functions; processing dividend payments from the Trust
on behalf of customers; and forwarding shareholder communications from the Trust
(such as proxies, shareholder reports, dividend distribution and tax notices) to
these customers with respect to investments in the Trust. Certain state
securities laws may require those financial institutions providing such
distribution services to register as dealers pursuant to state law.
Except to the extent that the Manager and Adviser benefitted through increased
fees from an increase in the net assets of the Trust which may have resulted in
part from the expenditures, no interested person of the Trust nor any Trustee of
the Trust who is not an interested person of the Trust had a direct or indirect
financial interest in the operation of the Distribution Plans or related
agreements.
Although banking laws and regulations prohibit banks from distributing shares of
open-end investment companies such as the Trust, according to an opinion issued
to the staff of the Securities and Exchange Commission ("SEC") by the Office of
the Comptroller of the Currency, financial institutions are not prohibited from
acting in other capacities for investment companies, such as providing
shareholder services. Should future legislative, judicial or administrative
action prohibit or restrict the activities of financial institutions in
connection with providing shareholder services, the Trust may be required to
alter materially or discontinue its arrangements with such financial
institutions.
For the fiscal year ended February 28, 1995, the Portfolios incurred the
following distribution expenses:
S-12
<PAGE>
<TABLE>
<CAPTION>
Total Amount
Dist. Paid to 3rd
Expenses Parties by
Total Dist. as SFS for Sales Printing Other
Portfolio Class Expenses a % of net Distributor Expenses Costs Costs*
assets Related
Services
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Core International Equity A $562,142 .12% $0 $562,142 $0 $0
Portfolio ---------------------------------------------------------------------------------------
D $ 62 .37% $0 $ 62 $0 $0
- --------------------------------------------------------------------------------------------------------------------------
European Equity Portfolio A $ 21,539 .10% $0 $ 21,539 $0 $0
- --------------------------------------------------------------------------------------------------------------------------
Pacific Basin Equity Portfolio A $ 21,262 .11% $0 $ 21,262 $0 $0
- --------------------------------------------------------------------------------------------------------------------------
Emerging Markets Equity Portfolio A $ 385 .11% $0 $ 385 $0 $0
- --------------------------------------------------------------------------------------------------------------------------
International Fixed Income Portfolio A $ 39,602 .12% $0 $ 39,602 $0 $0
==========================================================================================================================
*Costs of complying with securities laws pertaining to the distribution of shares.
</TABLE>
TRUSTEES AND OFFICERS OF THE TRUST
The Trustees and executive officers of the Trust and their principal occupations
for the last five years are set forth below. Each may have held other positions
with the named companies during that period. Unless otherwise noted, the
business address of each Trustee and executive officer is SEI Financial
Management Corporation, 680 East Swedesford Road, Wayne, PA 19087. Certain
trustees and officers of the Trust also serve as trustees and officers of some
or all of the following: SEI Daily Income Trust; SEI Liquid Asset Trust; SEI Tax
Exempt Trust; SEI Index Funds; SEI Institutional Managed Trust; The Pillar
Funds; Stepstone Funds; The Compass Capital Group of Funds; FFB Lexicon Funds;
The Advisors' Inner Circle Fund; CUFUND; STI Classic Funds; CoreFunds, Inc.;
First American Funds, Inc.; First American Investment Funds, Inc.; The Arbor
Fund; 1784 Funds; Marquis/SM/ Funds; Morgan Grenfell Investment Trust; The PBHG
Funds, Inc.; First American Mutual Funds; Nationar Funds, Inc.; Tax Exempt
Housing Reserve Fund; Inventor Funds, Inc.; Insurance Investment Products Trust;
and Rembrandt Funds, open-end management investment companies which are managed
by SEI Financial Management Corporation and distributed by SEI Financial
Services Company ("SFS").
ROBERT A. NESHER - Chairman of the Board of Trustees* - Retired since 1994.
Director, Executive Vice President of SEI Corporation - 1986-1994. Director and
Executive Vice President of the Manager and Executive Vice President of the
Distributor since September 1981.
RICHARD F. BLANCHARD - Trustee** - P.O. Box 76, Canfield Road, Convent Station,
NJ 07961. Private Investor. Director of AEA Investors Inc. (acquisition and
investment firm) June 1981-86, Director of Baker Hughes Corp. (oil service
company) 1976-88. Director of Imperial Clevite Industries (transportation
equipment company) 1981-87. Executive Vice President of American Express Company
(financial services company), responsible for the investment function, before
June 1981.
WILLIAM M. DORAN - Trustee* - 2000 One Logan Square, Philadelphia, PA 19103.
Partner, Morgan, Lewis & Bockius, counsel to the Trust, Manager and Distributor,
Director and Secretary of SEI and Secretary of the Manager and Distributor.
S-13
<PAGE>
F. WENDELL GOOCH - Trustee** - P.O. Box 190, Paoli, IN 47454. President, Orange
County Publishing Co., Inc., since October 1981. Publisher of the Paoli News and
the Paoli Republican and Editor of the Paoli Republican since January 1981,
President, H & W Distribution, Inc. since July 1984. Trustee of STI Classified
Funds.
FRANK E. MORRIS - Trustee - 105 Walpole Street, Dover, MA 02030. Retired since
1990. Peter Drucker Professor of Management, Boston College, 1989-1990.
President, Federal Reserve Bank of Boston, 1968-1988. Trustee of The Arbor Fund,
Marquis Funds, Advisors' Inner Circle Fund, Advisors' Inner Circle Fund II, Inc.
and FFB Lexicon Funds.
JAMES M. STOREY - Trustee** - Ten Post Office Square South, Boston,
Massachusetts 02109. Retired since 1993. Formerly Partner, Dechert, Price &
Rhoads (law firm).
DAVID G. LEE - President, Chief Executive Officer - Senior Vice President of the
Manager and Distributor since 1993. Vice President of the Manager and
Distributor, 1991-1993. President, GW Sierra Trust Funds prior to 1991.
CARMEN V. ROMEO - Treasurer, Assistant Secretary - Director, Executive Vice
President, Chief Financial Officer and Treasurer of SEI since 1977. Director and
Treasurer of the Manager and Distributor since 1981.
SANDRA K. ORLOW - Vice President, Assistant Secretary - Vice President and
Assistant Secretary of the Manager and Distributor since 1988.
ROBERT B. CARROLL - Vice President, Assistant Secretary - Vice President,
Assistant Secretary of SEI Corporation, the Manager and Distributor since 1994.
United States Securities and Exchange Commission, Division of Investment
Management, 1990-1994. Associate, McGuire, Woods, Battle & Boothe (law firm)
prior to 1990.
KATHRYN L. STANTON - Vice President, Assistant Secretary - Vice President,
Assistant Secretary of SEI Corporation, the Manager and Distributor since 1994;
Associate, Morgan, Lewis & Bockius (law firm), 1989 to 1994.
KEVIN P. ROBINS - Vice President, Assistant Secretary - Senior Vice President
and General Counsel of SEI Corporation, the Manager and Distributor since 1994.
Vice President of SEI Corporation, the Manager and Distributor 1992-1994.
Associate, Morgan, Lewis & Bockius (law firm) prior to 1992.
JEFFREY A. COHEN - Controller, Assistant Secretary - SEI Corporation, 1991 to
present. Senior Accountant, Price Waterhouse, 1988 to 1991.
RICHARD W. GRANT - Secretary - 2000 One Logan Square, Philadelphia, PA 19103,
Partner, Morgan, Lewis & Bockius, counsel to the Trust, Manager and Distributor.
JOHN H. GRADY, JR. - Assistant Secretary - 1800 M Street, N.W., Washington,
D.C., Associate, Morgan, Lewis & Bockius, counsel to the Trust, Manager and
Distributor.
====================================================================
*Messrs. Nesher and Doran are Trustees who may be deemed to be "interested
persons" of the Trust as the term is defined in the 1940 Act.
**Messrs. Blanchard, Gooch and Storey serve as members of the Audit Committee of
the Trust.
The Trustees and officers of the Trust own less than 1% of the outstanding
shares of the Trust. The Trust pays the fees for disinterested Trustees.
Compensation of officers and affiliated Trustees of the Trust is paid by the
Manager. For the fiscal year ended February 28, 1995, the Trust paid
approximately $20,725 in fees to the Trustees who are not "interested persons"
as defined in the 1940 Act.
S-14
<PAGE>
<TABLE>
<CAPTION>
Compensation Table
===================================================================================================================================
Name of Person, Aggregate Pension or Retirement Estimated Annual Total Compensation
Position Compensation From Benefits Accrues as Part Benefits Upon From Registrant and
Registrant for the FYE of Fund Expenses Retirement Fund Complex Paid to
February 28, 1995 Directors for the FYE
February 28, 1995
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Edward Binshadler, $4,145 $0 $0 $56,250
Trustee**
- -----------------------------------------------------------------------------------------------------------------------------------
Richard Blanchard, Trustee $4,145 $0 $0 $75,000
- -----------------------------------------------------------------------------------------------------------------------------------
F. Wendell Gooch, Trustee $4,145 $0 $0 $75,000
- -----------------------------------------------------------------------------------------------------------------------------------
Frank Morris, Trustee $4,145 $0 $0 $75,000
- -----------------------------------------------------------------------------------------------------------------------------------
James Storey, Trustee $4,145 $0 $0 $75,000
- -----------------------------------------------------------------------------------------------------------------------------------
Robert A. Nesher, Chairman
of the Board of Trustees* $0 $0 $0 $0
- -----------------------------------------------------------------------------------------------------------------------------------
William M. Doran, Trustee* $0 $0 $0 $0
===================================================================================================================================
</TABLE>
* A Director who is an "interested person," as defined by the 1940 Act.
** As of December 7, 1994 Edward Binshadler no longer serves as a Trustee.
PERFORMANCE
From time to time, the Trust may advertise yield and/or total return for one or
more of the Portfolios. These figures will be based on historical earnings and
are not intended to indicate future performance.
The total return of a Portfolio refers to the average compounded rate of return
to a hypothetical investment for designated time periods (including, but not
limited to, the period from which the Portfolio commenced operations through the
specified date), assuming that the entire investment is redeemed at the end of
each period. In particular, total return will be calculated according to the
following formula: P(1 + T)n = ERV, where P = a hypothetical initial payment of
$1,000; T = average annual total return; n = number of years; and ERV = ending
redeemable value of a hypothetical $1,000 payment made at the beginning of the
designated time period as of the end of such period.
Based on the foregoing, the average annual total return for the Portfolios from
inception through February 28, 1995 and for the one, five and ten year periods
ended February 28, 1995 were as follows:
<TABLE>
<CAPTION>
Portfolio Class Average Annual Total Return
-------------------------------------
One Five Ten Since
Year Year Year Inception
- ----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Core International Equity A (7.67)% 2.99% * 2.13%
-------------------------------------------
Portfolio D (7.95)% 2.93 * 2.08
- ----------------------------------------------------------------------------
European Equity Portfolio A * * * (0.48)%
============================================================================
</TABLE>
S-15
<PAGE>
<TABLE>
<CAPTION>
Portfolio Class Average Annual Total Return
-------------------------------------
One Five Ten Since
Year Year Year Inception
---------------------------------------------
<S> <C> <C> <C> <C> <C>
D * * * *
- ----------------------------------------------------------------------------
Pacific Basin Equity A * * * (15.00)%
Portfolio ---------------------------------------------
D * * * *
- ----------------------------------------------------------------------------
Emerging Markets Equity A * * * *
Portfolio ---------------------------------------------
D * * * *
- ----------------------------------------------------------------------------
International Fixed Income A 8.43% * * 7.81%
Portfolio ---------------------------------------------
D * * * *
============================================================================
*Not in operation during such period
</TABLE>
From time to time, the Trust may advertise the yield of the International Fixed
Income Portfolio. The yield of the Portfolio refers to the annualized income
generated by an investment in the Portfolio over a specified 30-day period. The
yield is calculated by assuming that the income generated by the investment
during that period is generated for each like period over one year and is shown
as a percentage of the investment. In particular, yield will be calculated
according to the following formula: Yield = 2([(a-b)/cd + 1]/6/ - 1) where a =
dividends and interest earning during the period; b = expenses accrued for the
period (net of reimbursement); c = the current daily number of shares
outstanding during the period that were entitled to receive dividends; and d =
the maximum offering price per share on the last day of the period.
Actual yields will depend on such variables as asset quality, average asset
maturity, the type of instruments a Portfolio invests in, changes in interest
rates on money market instruments, changes in the expenses of a Portfolio and
other factors.
Yields are one basis upon which investors may compare a Portfolio with other
mutual funds; however, yields of other mutual funds and other investment
vehicles may not be comparable because of the factors set forth above and
differences in the methods used in valuing portfolio instruments.
For the 30-day period ended February 28, 1995, the yield for the International
Fixed Income Portfolio was 5.59%.
The Portfolios may, from time to time, compare their performance to other mutual
funds tracked by mutual fund rating services, to broad groups of comparable
mutual funds or to unmanaged indices which may assume investment of dividends
but generally do not reflect deductions for administrative and management costs.
PURCHASE AND REDEMPTION OF SHARES
The Trust reserves the right to suspend the right of redemption and/or to
postpone the date of payment upon redemption for any period during which trading
on the New York Stock Exchange is restricted, or during the existence of an
emergency (as determined by the SEC by rule or regulation) as a result of which
disposal or evaluation of the
S-16
<PAGE>
portfolio securities is not reasonably practicable, or for such other periods as
the SEC may by order permit. The Trust also reserves the right to suspend sales
of shares of the Portfolios for any period during which the New York Stock
Exchange, the Manager, the Advisers, the Distributor and/or the Custodians are
not open for business.
It is currently the Trust's policy to pay for all redemptions in cash. The Trust
retains the right, however, to alter this policy to provide for redemptions in
whole or in part by a distribution in kind of securities held by a Portfolio in
lieu of cash. Shareholders may incur brokerage charges on the sale of
redemptions. However, a shareholder will at all times be entitled to aggregate
cash redemptions from a Portfolio of the Trust during any 90-day period of up to
the lesser of $250,000 or 1% of the Trust's net assets in cash.
A gain or loss for federal income tax purposes would be realized by a
shareholder subject to taxation upon an in-kind redemption depending upon the
shareholder's basis in the shares of the Portfolio redeemed.
Portfolio securities may be traded on foreign markets on days other than
Business Days or the net asset value of a Portfolio may be computed on days when
such foreign markets are closed. In addition, foreign markets may close at times
other than 4:00 p.m. Eastern time. As a consequence, the net asset value of a
share of a Portfolio may not reflect all events that may affect the value of the
Portfolio's foreign securities unless the Adviser determines that such events
materially affect net asset value in which case net asset value will be
determined by consideration of other factors.
Reductions in Sales Charges
In calculating the sales charge rates applicable to current purchases of Class D
shares, members of the following affinity groups and clients of the following
broker-dealers, each of which has entered into an agreement with the
Distributor, are entitled to the following percentage-based discounts from the
otherwise applicable sales charge:
<TABLE>
<CAPTION>
Name of Percentage Date Offer Date Offer
Group Discount Starts Terminates
- -------- ---------- ---------- ----------
<S> <C> <C> <C>
Countrywide 100% 07/27/94 09/19/94
Funding Corp. 50% 09/23/94 11/22/94
BHC Securities, Inc. 10% 12/29/94 N/A
First Security Investor 10% 12/29/94 N/A
Services, Inc.
</TABLE>
Those members or clients who take advantage of a percentage-based reduction in
the sales charge during the offering period noted above may continue to purchase
shares at the reduced sales charge rate after the offering period relating to
each such purchaser's affinity group or broker-dealer relationship has
terminated.
Please contact the Distributor at 1-800-437-6016 for more information.
SHAREHOLDER SERVICES (Class D shares)
The following is a description of plans and privileges by which the sale charges
imposed on the Class D shares of the Core International Equity, European Equity,
Pacific Basin Equity,Emerging Markets Equity and International Fixed Income
Portfolios may be reduced.
S-17
<PAGE>
Right of Accumulation: A shareholder qualifies for cumulative quantity discounts
when his or her new investment, together with the current offering price value
of all holdings of that shareholder in certain eligible portfolios, reaches a
discount level. See "Purchase and Redemption of Shares" in the Prospectus for
the sales charge on quantity purchases.
Letter of Intent: The reduced sales charges are also applicable to the aggregate
amount of purchases made by a purchaser within a 13-month period pursuant to a
written Letter of Intent provided to the Distributor that (i) does not legally
bind the signer to purchase any set number of shares and (ii) provides for the
holding in escrow by the Administrator of 5% of the amount purchased until such
purchase is completed within the 13-month period. A Letter of Intent may be
dated to include shares purchased up to 90 days prior to the date the Letter is
signed. The 13-month period begins on the date of the earliest purchase. If the
intended investment is not completed, the Administrator will surrender an
appropriate number of the escrowed shares for redemption in order to recover the
difference between the sales charge imposed under the Letter of Intent and the
sales charge that would have otherwise been imposed.
Distribution Investment Option: Distributions of dividends and capital gains
made by a Portfolio may be automatically invested in shares of another Portfolio
if shares of that Portfolio are available for sale. Such investments will be
subject to initial investment minimums, as well as additional purchase minimums.
A shareholder considering the Distribution Investment Option should obtain and
read the prospectus of the other Portfolios and consider the differences in
objectives and policies before making any investment.
Reinstatement Privilege: A shareholder who has redeemed shares of a Portfolio
has a one-time right to reinvest the redemption proceeds in shares of a
Portfolio at their net asset value as of the time of reinvestment. Such a
reinvestment must be made within 30 days of the redemption and is limited to the
amount of the redemption proceeds. Although redemptions and repurchases of
shares are taxable events, a reinvestment within such 30-day period in the same
fund is considered a "wash sale" and results in the inability to recognize
currently all or a portion of a loss realized on the original redemption for
federal income tax purposes. The investor must notify the Transfer Agent at the
time the trade is placed that the transaction is a reinvestment.
Exchange Privilege: Some or all of a Portfolio's Class D shares for which
payment has been received (i.e., an established account), may be exchanged for
Class D shares of other portfolios of the Trust or of SEI Liquid Asset Trust,
SEI Tax Exempt Trust, SEI Daily Income Trust and SEI Institutional Managed Trust
("SEI Funds"). Exchanges are made at net asset value plus any applicable sales
charge. SEI Funds' portfolios that are not money market portfolios currently
impose a sales charge on Class D shares. A shareholder who exchanges into one of
these "non-money market" portfolios will have to pay a sales charge on any
portion of the exchanged Class D shares for which he or she has not previously
paid a sales charge. If a shareholder has paid a sales charge on Class D shares,
no additional sales charge will be assessed when he or she exchanges those Class
D shares for other Class D shares. If a shareholder buys Class D shares of a
"non-money market" fund and receives a sales load waiver, he or she will be
deemed to have paid the sales load for purposes of this exchange privilege. In
calculating any sales charge payable on an exchange transaction, the SEI Funds
will assume that the first shares a shareholder exchanges are those on which he
or she has already paid a sales charge. Sales charge waivers may also be
available under certain circumstances, as described in the Prospectuses. The
Trust reserves the right to change the terms and conditions of the exchange
privilege discussed herein, or to terminate the exchange privilege, upon sixty
days' notice. Exchanges will be made only after proper instructions in writing
or by telephone (an "Exchange Request") are received for an established account
by the Distributor.
A shareholder may exchange the shares of a Portfolio's Class D shares, for which
good payment has been received, in his or her account at any time, regardless of
how long he or she has held his or her shares.
Each Exchange Request must be in proper form (i.e., if in writing, signed by the
record owner(s) exactly as the shares are registered; if by telephone, proper
account identification is given by the dealer or shareholder of record), and
each exchange must involve either shares having an aggregate value of at least
$1,000 or all the shares in the account. Each exchange involves the redemption
of the shares of a Portfolio (the "Old Portfolio") to be exchanged and the
purchase
S-18
<PAGE>
at net asset value (i.e., without a sales charge) of the shares of the other
portfolios (the "New Portfolios"). Any gain or loss on the redemption of the
shares exchanged is reportable on the shareholder's federal income tax return,
unless such shares were held in a tax-deferred retirement plan or other tax-
exempt account. If the Exchange Request is received by the Distributor in
writing or by telephone on any business day prior to the redemption cut-off time
specified in each Prospectus, the exchange usually will occur on that day if all
the restrictions set forth above have been complied with at that time. However,
payment of the redemption proceeds by the Old Portfolios, and thus the purchase
of shares of the New Portfolios, may be delayed for up to seven days if the
Portfolio determines that such delay would be in the best interest of all of its
shareholders. Investment dealers which have satisfied criteria established by
the Portfolios may also communicate a shareholder's Exchange Request to the
Portfolios subject to the restrictions set forth above. No more than five
exchange requests may be made in any one telephone Exchange Request.
Class D shares of the Core International Equity Portfolio are offered only to
residents of states in which the shares are eligible for purchase.
TAXES
Qualification as a RIC
The following discussion of federal income tax consequences is based on the Code
and the regulations issued thereunder as in effect on the date of this
Statement. New legislation, as well as administrative or court decisions, may
significantly change the conclusions expressed herein and may have a retroactive
effect with respect to the transactions contemplated herein.
In order to qualify for treatment as a regulated investment company ("RIC")
under the Code, a Portfolio must distribute annually to its shareholders at
least 90% of its investment company taxable income (generally, net investment
income, including net short-term capital gain) ("Distribution Requirement") and
must meet several additional requirements. Among these requirements are the
following: (i) at least 90% of a Portfolio's gross income each taxable year must
be derived from dividends, interest, payments with respect to securities loans
and gains from the sale or other disposition of securities or foreign currencies
or other income (including gains from forward contracts) derived with respect to
its business of investing in securities or those currencies ("Income
Requirement"); (ii) less than 30% of a Portfolio's gross income each taxable
year may be derived from the sale or other disposition of any of the following
that were held for less than three months: securities, options, futures, or
forward contracts, or foreign currencies (or options, futures, or forward
contracts thereon) that are not directly related to a Portfolio's principal
business of investing in securities ("Short-Short Limitation"); (iii) at the
close of each quarter of a Portfolio's taxable year, at least 50% of the value
of its total assets must be represented by cash and cash items, United States
Government securities, securities of other RICs and other securities, with such
other securities limited, in respect of any one issuer, to an amount that does
not exceed 5% of the value of a Portfolio's total assets and that does not
represent more than 10% of the outstanding voting securities of the issuer; and
(iv) at the close of each quarter of a Portfolio's taxable year, not more than
25% of the value of its total assets may be invested in securities (other than
United States Government securities or the securities of other RICs) of any one
issuer or of two or more issuers which the Portfolio controls and which are
engaged in the same, similar, or related trades or businesses.
The use of hedging strategies, such as entering into forward foreign currency
contracts, involves complex rules that will determine for income tax purposes
the character and timing of recognition of the income received in connection
therewith by the Portfolio. Income from foreign currencies, and income from
transactions in forward contracts that are directly related to a Portfolio's
business of investing in securities or foreign currencies, will qualify as
permissible income under the Income Requirement. Income from the disposition of
foreign currencies, and forward foreign currency contracts on foreign
currencies, that are not directly related to a Portfolio's principal business of
investing in securities will be subject to the Short-Short Limitation if they
are held for less than three months and may by regulation be excluded from
qualifying income.
S-19
<PAGE>
Notwithstanding the Distribution Requirement described above, which only
requires a Portfolio to distribute at least 90% of its annual investment company
taxable income and does not require any minimum distribution of net capital gain
(the excess of net long-term capital gain over net short-term capital loss), a
Portfolio will be subject to a nondeductible 4% federal excise tax to the extent
it fails to distribute by the end of any calendar year 98% of its ordinary
income for that year and 98% of its capital gain net income (the excess of short
and long-term capital gains over short and long-term capital losses) for the
one-year period ending on October 31 of that year, plus certain other amounts.
Any increase in value on a position that is part of a "designated hedge" will be
offset by any decrease in value (whether realized or not) of the offsetting
hedging position during the period of the hedge for purposes of determining
whether a Portfolio satisfies the Short-Short Limitation. Thus, only the net
gain (if any) from the designated hedge will be included in gross income for
purposes of that Limitation.
If a Portfolio fails to qualify as a RIC for any year, all of its income will be
subject to tax at corporate rates, and its distributions (including capital
gains distributions) will be taxable as ordinary income dividends to its
shareholders, subject to the dividends received deduction for corporate
shareholders.
State Taxes
A Portfolio is not liable for any income or franchise tax in Massachusetts if it
qualifies as a RIC for federal income tax purposes. Distributions by a Portfolio
to shareholders and the ownership of shares may be subject to state and local
taxes. Shareholders should consult their tax advisors regarding the state and
local tax consequences of investments in a Portfolio.
Foreign Taxes
Dividends and interest received by a Portfolio may be subject to income,
withholding or other taxes imposed by foreign countries and United States
possessions that would reduce the yield on a Portfolio's securities. Tax
conventions between certain countries and the United States may reduce or
eliminate these taxes. Foreign countries generally do not impose taxes on
capital gains with respect to investments by foreign investors. If more than 50%
of the value of a Portfolio's total assets at the close of its taxable year
consists of securities of foreign corporations, a Portfolio will be eligible to,
and will, file an election with the Internal Revenue Service that will enable
shareholders, in effect, to receive the benefit of the foreign tax credit with
respect to any foreign and United States possessions income taxes paid by a
Portfolio. Pursuant to the election, a Portfolio will treat those taxes as
dividends paid to its shareholders. Each shareholder will be required to include
a proportionate share of those taxes in gross income as income received from a
foreign source and must treat the amount so included as if the shareholder had
paid the foreign tax directly. The shareholder may then either deduct the taxes
deemed paid by him or her in computing his or her taxable income or,
alternatively, use the foregoing information in calculating the foreign tax
credit (subject to significant limitations) against the shareholder's federal
income tax. If a Portfolio makes the election, it will report annually to its
shareholders the respective amounts per share of the Portfolio's income from
sources within, and taxes paid to, foreign countries and United States
possessions.
PORTFOLIO TRANSACTIONS
The Trust has no obligation to deal with any dealer or group of dealers in the
execution of transactions in portfolio securities. Subject to policies
established by the Trustees, the Adviser is responsible for placing orders to
execute Portfolio transactions. In placing orders, it is the Trust's policy to
seek to obtain the best net results taking into account such factors as price
(including the applicable dealer spread), size, type and difficulty of the
transaction involved, the firm's general execution and operational facilities,
and the firm's risk in positioning the securities involved. While the Adviser
generally seeks reasonably competitive spreads or commissions, the Trust will
not necessarily be paying the
S-20
<PAGE>
lowest spread or commission available. The Trust will not purchase portfolio
securities from any affiliated person acting as principal except in conformity
with the regulations of the SEC.
The Trust does not expect to use one particular dealer, but, subject to the
Trust's policy of seeking the best net results, dealers who provide supplemental
investment research to the Advisers may receive orders for transactions by the
Trust. Information so received will be in addition to and not in lieu of the
services required to be performed by the Adviser under the Advisory Agreement,
and the expenses of the Adviser will not necessarily be reduced as a result of
the receipt of such supplemental information. These research services include
advice, either directly or through publications or writings, as to the value of
securities, the advisability of investing in, purchasing or selling securities,
and the availability of securities or purchasers or sellers of securities;
furnishing of analyses and reports concerning issuers, securities or industries;
providing information on economic factors and trends, assisting in determining
portfolio performance evaluation and technical market analyses. Such services
are used by the Adviser in connection with its investment decision-making
process with respect to one or more funds and accounts managed by it, and may
not be used exclusively with respect to the fund or account generating the
brokerage.
The money market securities in which a Portfolio invests are traded primarily in
the over-the-counter market. Bonds and debentures are usually traded over-the-
counter, but may be traded on an exchange. Where possible, each Adviser will
deal directly with the dealers who make a market in the securities involved
except in those circumstances where better prices and execution are available
elsewhere. Such dealers usually are acting as principal for their own account.
On occasion, securities may be purchased directly from the issuer. Money market
securities are generally traded on a net basis and do not normally involve
either brokerage commissions or transfer taxes. The cost of executing portfolio
securities transactions of a Portfolio will primarily consist of dealer spreads
and underwriting commissions.
It is expected that the Portfolios may execute brokerage or other agency
transactions through the Distributor, a registered broker-dealer, for a
commission, in conformity with the 1940 Act, the Securities Exchange Act of
1934, as amended, and the rules and regulations thereunder. Under these
provisions, the Distributor is permitted to receive and retain compensation for
effecting portfolio transactions for a Portfolio on an exchange if a written
contract is in effect between the Distributor and the Trust expressly permitting
the Distributor to receive and retain such compensation. These provisions
further require that commissions paid to the Distributor by the Trust for
exchange transactions not exceed "usual and customary" brokerage commissions.
The rules define "usual and customary" commissions to include amounts which are
"reasonable and fair compared to the commission, fee or other renumeration
received or to be received by other brokers in connection with comparable
transactions involving similar securities being purchased or sold on a
securities exchange during a comparable period of time." The Trustees, including
those who are not "interested persons" of the Trust, have adopted procedures for
evaluating the reasonableness of commissions paid to the Distributor and will
review these procedures periodically.
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.
<TABLE>
<CAPTION>
=================================================================================================================================
Total Brokerage Amount Paid to % Paid to Amount Paid to
Commission (000) Distributor(000) Distributor Affiliates (000)
-----------------------------------------------------------------------------------------------
1993 1994 1995 1993 1994 1995 1993 1994 1995 1993 1994 1995
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Core International Equity $ 405 $ 783 $1,482 $0 $0 $0 0% 0% 0% $ $49 $171
Portfolio
- ---------------------------------------------------------------------------------------------------------------------------------
European Equity Portfolio * * $66 * * $0 * * 0% * * $20
- ---------------------------------------------------------------------------------------------------------------------------------
Pacific Basin Equity Portfolio * * $157 * * $0 * * 0% * * $20
- ---------------------------------------------------------------------------------------------------------------------------------
Emerging Markets Equity * * $26 * * $0 * * 0% * * $0
Portfolio
- ---------------------------------------------------------------------------------------------------------------------------------
International Fixed Income * $0 $0 * $0 $0 * 0% 0% * * *
Portfolio
=================================================================================================================================
</TABLE>
S-21
<PAGE>
*Not in operation during such period.
The principal reason for the increase in brokerage commissions paid by the Core
International Equity Portfolio in the last three fiscal years was the growth of
the assets in the Core International Equity Portfolio.
S-22
<PAGE>
For the fiscal years ended February 28, 1993, February 28, 1994 and February 28,
1995, the following sales loads were charged to Class D shares:
<TABLE>
<CAPTION>
=========================================================================================================================
Dollar Amount of Load
Dollar Amount of Load(000) Retained by SFS(000)
-------------------------------------------------------------------------
Portfolio 1993 1994 1995 1993 1994 1995
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Core International Equity Portfolio - Class D * * $ 0 * * $ 0
=========================================================================================================================
</TABLE>
* Not in operation during the period.
For the fiscal year ended February 28, 1995, the following commissions were paid
on brokerage transactions pursuant to an agreement or understanding, to brokers
because of research services provided by the brokers:
<TABLE>
<CAPTION>
=========================================================================================================
Brokerage Commissions Total Amount of % of Directed Brokerage
for Research Transactions to Total Brokerage
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Core International Equity
Portfolio $11,950 $7,970,000 .15%
- ---------------------------------------------------------------------------------------------------------
European Equity Portfolio $1,506 $726,267 .21%
- ---------------------------------------------------------------------------------------------------------
Pacific Basin Equity Portfolio 0 0 0%
- ---------------------------------------------------------------------------------------------------------
Emerging Markets Equity $714
Portfolio
- ---------------------------------------------------------------------------------------------------------
International Fund Income
Portfolio N/A N/A N/A
=========================================================================================================
</TABLE>
The Trust is required to identify any securities of its "regular brokers or
dealers" (as such term is defined in the 1940 Act) which the Trust has acquired
during its most recent fiscal year. As of February 28, 1995, the Core
International Equity Portfolio had entered into a repurchase agreement in the
amount of approximately $2,099,539 with J.P. Morgan Securities Inc. ("J.P.
Securities"), a wholly owned subsidiary of J.P. Morgan Co. Incorporated, and the
International Fixed Income Portfolio had entered into a repurchase agreement in
the amount of approximately $2,010,980 with Prudential Mortgage. J.P.
Securities and Prudential Mortgage are considered "regular brokers or dealers"
of the Trust.
Since the Trust does not market its shares through intermediary brokers or
dealers, it is not the Trust's practice to allocate brokerage or principal
business on the basis of sales of its shares which may be made through such
firms. However, the Adviser may place Portfolio orders with qualified broker-
dealers who recommend the Trust to clients, and may, when a number of brokers
and dealers can provide best price and execution on a particular transaction,
consider such recommendations by a broker or dealer in selecting among broker-
dealers.
It is expected that the portfolio turnover rate for each Portfolio will normally
not exceed 100% for a Portfolio. The portfolio turnover rate for the Core
International Equity Portfolio would exceed 100% if all of its securities,
exclusive of United States Government securities and other securities whose
maturities at the time of acquisition are one year or less, are replaced in the
period of one year. Turnover rates may vary from year to year and may be
affected by cash requirements for redemptions and by requirements which enable
the Portfolio to receive favorable tax treatment.
S-23
<PAGE>
DESCRIPTION OF SHARES
The Declaration of Trust authorizes the issuance of an unlimited number of
shares of each Portfolio, each of which represents an equal proportionate
interest in that Portfolio. Each share upon liquidation entitles a shareholder
to a pro rata share in the net assets of that Portfolio. Shareholders have no
preemptive rights. The Declaration of Trust provides that the Trustees of the
Trust may create additional portfolios of shares or classes of portfolios. Share
certificates representing the shares will not be issued.
LIMITATION OF TRUSTEES' LIABILITY
The Declaration of Trust provides that a Trustee shall be liable only for his
own willful defaults and, if reasonable care has been exercised in the selection
of officers, agents, employees or administrators, shall not be liable for any
neglect or wrongdoing of any such person. The Declaration of Trust also provides
that the Trust will indemnify its Trustees and officers against liabilities and
expenses incurred in connection with actual or threatened litigation in which
they may be involved because of their offices with the Trust unless it is
determined in the manner provided in the Declaration of Trust that they have not
acted in good faith in the reasonable belief that their actions were in the best
interests of the Trust. However, nothing in the Declaration of Trust shall
protect or indemnify a Trustee against any liability for his wilful misfeasance,
bad faith, gross negligence or reckless disregard of his duties.
VOTING
Where the Prospectuses for the Portfolios or Statement of Additional Information
state that an investment limitation or a fundamental policy may not be changed
without shareholder approval, such approval means the vote of (i) 67% or more of
a Portfolio's shares present at a meeting if the holders of more than 50% of the
outstanding shares of the Portfolio are present or represented by Proxy, or (ii)
more than 50% of a Portfolio's outstanding shares, whichever is less.
SHAREHOLDER LIABILITY
The Trust is an entity of the type commonly known as a "Massachusetts business
trust." Under Massachusetts law, shareholders of such a Trust could, under
certain circumstances, be held personally liable as partners for the obligations
of the Trust. Even if, however, the Trust were held to be a partnership, the
possibility of the shareholders' incurring financial loss for that reason
appears remote because the Trust's Declaration of Trust contains an express
disclaimer of shareholder liability for obligations of the Trust and requires
that notice of such disclaimer be given in each agreement, obligation or
instrument entered into or executed by or on behalf of the Trust or the
Trustees, and because the Declaration of Trust provides for indemnification out
of the Trust property for any shareholders held personally liable for the
obligations of the Trust.
CONTROL PERSONS AND PRINCIPAL HOLDERS OF SECURITIES
As of April 1, 1995, the following persons were the only persons who were record
owners (or to the knowledge of the Trust, beneficial owners) of 5% or more of
the shares of the Portfolios. The Trust believes that most of the shares
referred to below were held by the below persons in accounts for their
fiduciary, agency or custodial customers.
Core International Equity Portfolio- Class A: Eagle Trust Company, attn:
Suzanne O'Boyle, 680 East Swedesford Road, Wayne, PA 19087, 30.18%; ACO, c/o
Integra Trust Services, attn: Karen White, Trust Securities Section 2 032, 300
Fourth Avenue, Pittsburgh, PA 15278-2232, 14.98%; Bellford & Co., c/o Perrybell
Investments, Inc., attn: Dawn Ohmann, 601 Lakeshore Parkway, Suite 350,
Minnetonka, MN 55343, 5.89%.
S-24
<PAGE>
Core International Equity Portfolio- Class D: Relico, P.O. Box 48449, Atlanta,
GA 30362-1449, 18.84%: Eagle Trust Company, Custodian for IRA of Pamela A Olson,
1690 N. Foxboro Loop, Crystal River, FL 34429, 8.56%; Frost National Bank,
Custodian for IRA of Richard Torres, 4622 Sunny Walk, San Antonio, TX 78217,
5.28%, Frost National Bank, Custodian for IRA of Jennifer M. Littlejohn, 3225
Manassas, Corpus Christi, TX 78410, 17.56%; Frost National Bank, Custodian for
IRA of George Arias, 15026 Digger, San Antonio, TX 78247, 21.21%.
European Equity Portfolio- Class A: Eagle Trust Company, attn: Suzanne O'Boyle,
680 East Swedesford Road, Wayne, PA 19087, 82.82%.
Pacific Basin Equity Portfolio- Class A: Eagle Trust Company, attn: Suzanne
O'Boyle, 680 East Swedesford Road, Wayne, PA 19087, 82.49%.
Emerging Markets Equity Portfolio- Class A: Eagle Trust Company, attn: Suzanne
O'Boyle, 680 East Swedesford Road, Wayne, PA 19087, 65.56%; Patterson & Co., c/o
CoreStates Bank NA, P.O. Box 7829, Philadelphia, PA 19101, 31.16%.
International Fixed Income Portfolio- Class A: Eagle Trust Company, attn:
Suzanne O'Boyle, 680 East Swedesford Road, Wayne, PA 19087, 61.47%
EXPERTS
The financial statements in this Statement of Additional Information and the
Financial Highlights included in the Prospectus have been audited by Price
Waterhouse LLP, independent accountants, as indicated in their report with
respect thereto, and are included herein in reliance upon the authority of said
firm as experts in giving said report.
FINANCIAL STATEMENTS
Following are (1) the audited financial statements for the fiscal year ended
February 28, 1995, including the financial highlights, appearing in the Trust's
1995 Annual Report to Shareholders, and the Report thereon of Price Waterhouse
LLP, independent accountants, and (2) the unaudited financial statements for the
period January 17, 1995 through May 17, 1995 for the Emerging Markets Equity
Portfolio.
S-25
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Shareholders and Board of Trustees
SEI International Trust
In our opinion, the accompanying statement of net assets and where applicable,
the schedules of investments and statements of assets and liabilities, and the
related statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
the Core International Equity, European Equity, Pacific Basin Equity, Emerging
Markets Equity and International Fixed Income Portfolios of SEI International
Trust (the "Fund") at February 28, 1995, the results of each of their opera-
tions, the changes in each of their net assets and the financial highlights for
each of the respective periods presented, in conformity with generally accepted
accounting principles. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the responsibility of the
Fund's management; our responsibility is to express an opinion on these finan-
cial statements based on our audits. We conducted our audits of these financial
statements in accordance with generally accepted auditing standards which re-
quire that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and dis-
closures in the financial statements, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall finan-
cial statement presentation. We believe that our audits, which included confir-
mation of securities at February 28, 1995 by correspondence with the custodians
and brokers and the application of alternative auditing procedures where con-
firmations from brokers were not received, provide a reasonable basis for the
opinion expressed above.
PRICE WATERHOUSE LLP
Philadelphia, PA
April 11, 1995
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
SEI International Trust -- February 28, 1995
CORE INTERNATIONAL EQUITY PORTFOLIO
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Value
Description Shares (000)
- -------------------------------------------------------
<S> <C> <C>
FOREIGN COMMON STOCKS -- 98.7%
AUSTRALIA -- 7.0%
Australia & New Zealand Bank Group 531,827 $ 1,864
Australian National 1,128,000 1,124
Boral 450,000 1,205
Brambles 179,441 1,700
Broken Hill Proprietary 427,100 5,894
Burns Philip 209,326 502
Coles Myer 236,100 791
Lend Lease 46,000 577
National Australia Bank 350,272 2,822
Newscorp 308,456 1,372
Pioneer 761,900 1,833
SA Breweries 383,350 883
Westpac Banking 682,707 2,519
--------
23,086
--------
BELGIUM -- 2.9%
Electrabel 11,400 2,233
Fortis 8,600 741
Groupe Bruxelles Lambert 5,500 669
Kredietbank 6,810 1,434
Petrofina 2,330 685
Societe Generale de Belgique 25,820 1,763
Solvay 1,500 776
Tractebel 3,000 915
Union Miniere* 6,800 447
--------
9,663
--------
CANADA -- 2.6%
Alcan Aluminum 17,100 416
Bank of Montreal 54,500 1,061
Bank of Nova Scotia 86,900 1,715
Canadian Imperial Bank of Commerce 71,200 1,738
Imperial Oil 24,900 847
Nova Corporation of Alberta 91,200 736
Oshawa Group 15,300 206
Royal Bank of Canada 43,200 892
Seagram 30,200 929
--------
8,540
--------
FRANCE -- 10.4%
Banque National de Paris 19,400 860
Cap Gemini Sogeti 30,000 979
Christian Dior 21,000 1,678
Cie Bancaire 17,450 1,656
Cie de Saint Gobain 26,121 3,075
Cie Financier de Suez 8,800 386
Cie Generale D'Industrie Et de Part 4,000 816
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Value
Description Shares (000)
- ---------------------------------------------------
<S> <C> <C>
Cie Generale de Eaux 31,330 $ 2,900
Colas 3,000 497
Credit Local de France 21,800 1,734
De Dietrich Et Compagnie 750 395
Ecco 4,400 517
Epeda Bertrand Faure 3,650 669
Financiere Poliet 6,150 472
Groupe de La Cite 5,760 833
Lafarge Coppee 28,650 1,848
LVMH Moet Hennessy 14,811 2,367
Michelin "B"* 26,300 1,051
Pechiney 17,500 1,177
Peugeot 15,025 2,050
Saint Louis-Bouchon 5,250 1,435
Societe Nationale Elf Aquitaine 59,291 4,256
Sommer Allibert 900 306
Total Compaigne "B" 37,637 2,081
--------
34,038
--------
GERMANY -- 4.1%
BASF 17,600 3,898
Bayer 11,017 2,717
Degussa 4,200 1,349
Hochtief 2,100 1,192
Hoechst 7,350 1,635
Karstadt 3,400 1,373
Man 4,600 1,297
--------
13,461
--------
HONG KONG -- 2.6%
China Light & Power 162,200 791
Hang Seng Bank 103,000 640
Henderson Investment 1,098,000 767
Hong Kong Telecommunications 116,000 209
HSBC Holdings 150,000 1,576
Kumagai Gumi 424,000 293
New World China Fund 88,000 933
Regal Hotels 3,940,000 759
Sino Land 2,034,000 1,631
Varitronix 653,000 955
--------
8,554
--------
ITALY -- 2.8%
Fiat SPA* 482,000 1,212
Fidis 282,600 639
Mondadori 140,000 896
Olivetti* 1,000,000 1,113
Rinascente di Risp 49,000 132
SAI di Risp 101,000 469
STET 582,900 1,622
</TABLE>
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
SEI International Trust -- February 28, 1995
CORE INTERNATIONAL EQUITY PORTFOLIO
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Value
Description Shares (000)
- ---------------------------------------------
<S> <C> <C>
Telecom Italia 540,000 $ 1,303
Telecom Italia di Risp 970,400 1,884
--------
9,270
--------
JAPAN -- 30.9%
Advantest 37,000 954
Amada 75,000 746
Aoyama Trading 77,000 1,324
Asahi Chemical 72,000 477
Asahi Glass 89,000 986
Canon 25,000 373
Central Glass* 60,000 230
Chiba Kogyo Bank 1,100 48
Chubu Electric Power 34,000 828
Citizen Watch 122,000 840
Dai Nippon Ink & Chemical 368,000 1,608
Dai Nippon Printing 158,000 2,340
Daicel Chemical 39,000 184
Daido Steel 278,000 1,368
Daihatsu Motor 371,000 1,729
Daikin Industries 172,000 1,286
Daikyo 222,000 1,607
Daito Trust Construction 87,000 748
Daiwa Bank 128,000 1,069
Daiwa House 87,000 1,271
Daiwa Securities 177,000 1,980
Fanuc 18,900 771
Fuji Photo Film 96,000 2,058
Fujita 108,000 579
Fujitsu 273,000 2,494
Hankyu Realty 36,000 247
Hino Motors 190,000 1,496
Hitachi 609,000 5,330
Hokkaido Takushoku Bank 232,000 800
Honda Motor 121,000 1,830
Hyakugo Bank 93,000 583
Kagoshima Bank 116,000 847
Kirin Brewery 188,000 1,947
Kishu Paper 97,000 412
Matsushita Electric 353,000 5,119
Mitsubishi Estate 145,000 1,464
Mitsubishi Gas Chemical 431,000 1,763
Mitsubishi Paper 44,000 256
Mitsui Fudosan 152,000 1,557
Mitsui Trust & Banking 206,000 1,854
Navix Line* 517,000 1,483
Nichii 81,000 881
Nikko Securities 118,000 1,080
Nintendo 23,700 1,249
Nippon Chemical 104,000 787
Nippon Credit Bank 101,000 520
Nippon Meat Packers 103,000 1,344
Nippon Sheet Glass 135,000 692
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Value
Description Shares (000)
- ----------------------------------------------------
<S> <C> <C>
Nippon Steel 137,000 $ 480
Nissan Fire & Marine Insurance 56,000 363
Nissan Motors 263,000 1,801
NKK* 384,000 990
NSK 159,000 980
Obayashi 172,000 1,301
Orient 118,000 631
Orix 31,000 1,085
Osaka Gas 656,000 2,412
Pioneer Electronics 70,000 1,494
Sangetsu 1,000 26
Seino Transportation 59,000 929
Sekisui House 228,000 2,574
Shimizu 126,000 1,253
Shinmaywa Industries 103,000 882
Skylark 44,000 647
Sumitomo Bank 182,000 3,318
Sumitomo Metal* 751,000 2,155
Sumitomo Realty & Development 110,000 599
Taisei 193,000 1,243
Takeda Chemical 192,000 2,227
Tokyo Electric Power 87,500 2,374
Tokyo Steel 54,500 1,225
Toray Industries 429,000 2,693
Toshiba 598,000 3,784
Victor of Japan* 144,000 1,596
Yokogawa Bridge 41,000 531
--------
101,032
--------
MALAYSIA -- 1.7%
Faber Group* 1,009,000 965
Land and General 280,500 797
Malaysian International Shipping 668,000 1,832
MBF Capital 458,000 519
Rashid Hussain 378,000 992
Westmont Berhad 93,000 459
--------
5,564
--------
NETHERLANDS -- 3.7%
ABN Amro Holdings 51,000 1,857
Ahold 52,000 1,674
DSM 10,100 822
Heineken 10,800 1,695
International Nederlanden 56,700 2,780
KPN 25,600 905
Philips Electronics 76,665 2,543
--------
12,276
--------
NEW ZEALAND -- 3.0%
Carter Holt Harvey 1,027,837 2,265
Fernz 89,600 298
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Value
Description Shares (000)
- ----------------------------------------------------------
<S> <C> <C>
Fisher & Paykel 130,400 $ 334
Fletcher Challenge 889,400 2,214
Fletcher Challenge Forest 266,700 338
Lion Nathan 498,600 947
Telecom Corporation of New Zealand 685,600 2,375
Telecom Corporation of New Zealand ADR 20,200 1,119
--------
9,890
--------
NORWAY -- 0.6%
Den Norske Bank "B"* 242,909 640
Kvaerner "B" 30,000 1,302
--------
1,942
--------
SINGAPORE -- 2.8%
Creative Technology* 72,800 819
DBS Land 184,000 480
Fraser and Neave 54,000 570
Jardine Matheson Holdings 155,000 1,426
Jardine Strategic Holdings 166,000 618
Sembawang Maritime 129,000 539
Singapore Press "F" 67,000 1,152
Strait Steamship Land 251,000 776
United Overseas Bank "F" 280,000 2,725
--------
9,105
--------
SPAIN -- 2.5%
Banco Bilbao-Vizcaya 23,480 627
Banco de Santander 19,200 689
Banco Intercon 11,800 969
Banco Popular 8,000 1,019
Iberdrola 293,900 1,843
Repsol 33,800 968
Telefonica de Espana 143,000 1,788
Viscofan Envoltura 30,400 398
--------
8,301
--------
SWEDEN -- 1.0%
Autoliv AB* 10,000 369
Pharmacia AB 103,000 1,898
Trelleborg AB "B"* 80,000 1,109
--------
3,376
--------
SWITZERLAND -- 2.5%
Holderbank Glarus 2,250 1,670
Nestle SA 2,020 1,954
Roche Holdings 354 1,964
Schweiz Ruckversicherung 3,210 1,927
Zurich Versicherung 800 766
--------
8,281
--------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Value
Description Shares (000)
- -----------------------------------------------
<S> <C> <C>
UNITED KINGDOM -- 17.6%
AAH Holdings 60,000 $ 406
ASDA Group 630,000 675
Bass 170,000 1,359
BAT Industries 210,347 1,385
Booker 102,000 604
British Gas 859,000 3,956
British Petroleum 411,385 2,578
BTR 211,000 1,047
Charter 98,650 1,165
Courtaulds 30,000 199
Dixons Group 301,000 1,000
Guinness 263,500 1,733
Hillsdown Holdings 457,000 1,287
HSBC Holdings 83,000 872
HSBC Holdings 40,300 423
Imperial Metal 40,000 196
Lasmo* 449,998 1,097
Lloyds Abbey Life 160,000 868
Lloyds Bank 350,200 3,176
London Electricty 35,000 398
Marks & Spencer 164,000 967
Midlands Electric 39,600 460
Mirror Group 196,000 419
National Power 65,000 477
National Westminster 256,500 1,952
Northern Foods 310,000 1,001
Ocean Group 239,500 1,057
Peninsular & Oriental 209,700 1,872
Reckitt & Coleman 10,625 105
Royal Insurance 407,500 1,799
RTZ 155,955 1,818
Sainsbury (J) 149,490 970
Scottish Power 190,000 986
Sears 586,000 918
Smith (Wh) Group 97,000 637
Smithkline Beecham Units 533,628 4,074
Storehouse 283,000 996
Sun Alliance Group 343,900 1,693
T & N 1,070,000 2,726
Tesco 475,000 1,883
Thames Water 245,500 1,853
Thorn EMI 86,290 1,422
Unilever 43,000 796
Whitbread "A" 170,000 1,447
Yorkshire Water 131,000 1,064
--------
57,816
--------
Total Foreign Common Stocks
(Cost $322,366) 324,195
--------
</TABLE>
<PAGE>
STATEMENT OF NET ASSETS/SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
SEI International Trust -- February 28, 1995
CORE INTERNATIONAL EQUITY PORTFOLIO
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Face Amount Value
Description (000) (000)
- -------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENT -- 0.6%
J.P. Morgan
6.01%, dated 2/28/95, matures 3/1/95, repurchase price
$2,099,539 (collateralized by Federal National Mortgage
Association, 7.375%, due 12/25/21, par value
$2,298,052; market value $2,155,098) $ 2,100 $ 2,100
--------
Total Repurchase Agreement
(Cost $2,100) 2,100
--------
Total Investments -- 99.3%
(Cost $324,466) 326,295
--------
OTHER ASSETS AND LIABILITIES -- 0.7%
Other Assets and Liabilities, Net 2,259
--------
NET ASSETS:
Portfolio shares of Class A (unlimited authorization --
no par value) based on 34,249,039 outstanding shares
of beneficial interest 318,688
Portfolio shares of ProVantage Funds (unlimited
authorization -- no par value) based on 5,286 shares of
beneficial interest 55
Accumulated net realized gain on investments 17,784
Accumulated net realized loss on foreign currency
transactions (8,715)
Net unrealized depreciation on forward foreign currency
contracts, foreign currencies and translation of other
assets and liabilities denominated in foreign
currencies (1,056)
Net unrealized appreciation on investments 1,829
Accumulated net investment loss (31)
--------
Total Net Assets -- 100.0% $328,554
========
Net Asset Value, Offering and Redemption Price Per
Share -- Class A $ 9.59
========
Net Asset Value and Redemption Price Per Share --
ProVantage Funds $ 9.56
========
Maximum Offering Price Per Share -- ProVantage Funds
($9.56 / 95%) $ 10.06
========
</TABLE>
*Non-income producing security
ADRAmerican Depository Receipt
EUROPEAN EQUITY PORTFOLIO
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Value
Description Shares (000)
- --------------------------------------------------
<S> <C> <C>
FOREIGN COMMON STOCKS -- 94.3%
BELGIUM -- 1.3%
Solvay 900 $ 466
---------
DENMARK -- 1.2%
ISS International 13,700 423
---------
FINLAND -- 1.2%
Nokia 2,880 433
---------
FRANCE -- 10.1%
Carrefour 1,540 629
Cetelem 2,500 443
Cie de Saint Gobain 3,600 424
Cie Generale des Eaux 4,080 378
Credit Foncier de France 2,790 363
Galeries Lafayette 750 307
LVMH Moet Hennessey 3,890 621
Societe Nationale Elf Aquitaine 7,000 502
---------
3,667
---------
GERMANY -- 9.8%
BASF 2,200 487
Beiersdorf 517 344
Hoechst 1,860 414
Hornbach Baumarket New 200 119
Hornbach Holdings 330 329
Jungheinrich 1,950 451
Rhon Klinikum 460 309
SAP 745 621
Wella 680 468
---------
3,542
---------
ITALY -- 2.7%
Ansaldo Transport 125,920 324
Benetton Group 15,000 144
Mediobanca Warrants* 272 --
STET 189,000 526
---------
994
---------
NETHERLANDS -- 5.6%
ABN Amro Holdings 9,018 328
Boskalis Westminster 15,150 297
Reed Elsevier 51,000 499
International Nederlanden 7,820 383
Royal Dutch Petroleum 4,630 523
---------
2,030
---------
NORWAY -- 1.9%
Norsk Hydro 12,000 456
Saga Petroleum "B" 17,640 219
---------
675
---------
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Value
Description Shares (000)
- ----------------------------------------------------
<S> <C> <C>
SPAIN -- 6.7%
Autopistas Cesa 36,362 $ 302
Continente* 19,150 392
Empresa Nacional de Electricidad 8,700 380
Fomento de Construcciones Contratas 4,300 356
Gas Natural SDG 4,450 391
Telefonica de Espana 50,000 625
-------
2,446
-------
SWEDEN -- 9.9%
AGA Free "B" 61,000 654
Astra Free "B" 8,300 206
Electrolux "B" 7,000 353
Kalmar Industries* 25,000 345
Marieberg Tidnings "A" 14,000 334
Mo Och Domsjo "B"* 10,150 507
Svenska Cellulosa* 28,000 497
Svenskt Stal "B" 7,300 328
Volvo Free "B" 19,100 383
-------
3,607
-------
SWITZERLAND -- 7.3%
Brown Boveri & Cie 590 515
Holderbank Glarus 697 517
Nestle SA 545 527
Roche Holdings 120 666
Societe Generale de Surveillance 295 430
-------
2,655
-------
UNITED KINGDOM -- 36.6%
Abbey National 60,000 418
Argyll Group 30,000 128
BAT Industries 60,000 395
Blue Circle Industries 59,000 239
Britannic Assurance 16,000 130
British Aerospace 36,000 268
British Aerospace New 4,000 30
British Airways 53,000 327
British Petroleum 116,000 727
British Sky Broadcasting* 86,000 345
British Telecommunications 104,400 624
BTR 70,000 347
Commercial Union 38,458 308
Dalgety 51,000 343
De La Rue 23,000 373
English China Clay 17,750 96
General Electric 67,000 308
Glaxo Holdings 38,700 388
Granada Group 56,000 451
Grand Metropolitan 69,500 421
Great Universal Stores 33,000 266
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Value
Description Shares (000)
- --------------------------------------------------------------------------
<S> <C> <C>
Hammerson "A" 51,500 $ 264
Harrison & Crossfield 62,000 140
Heath, C.E. 18,000 70
Lasmo* 100,000 244
Lex Service 24,000 106
MEPC 23,000 144
Morrison Supermarket 87,000 191
Mowlem, John* 40,400 57
Next 59,000 244
Prudential 74,000 357
Reckitt & Coleman 46,625 462
Reuters Holdings 55,000 386
Rothman Units 58,000 412
Royal Insurance 71,499 316
Saatchi & Saatchi* 63,159 92
Scottish Power 60,000 311
Sears 95,000 149
Sedgwick Group 95,000 233
Severn Trent 31,500 251
Smithkline Beecham Units 93,000 710
Smiths Industries 51,000 351
Tate & Lyle 57,000 392
Williams Holdings 85,000 440
-------
13,254
-------
Total Foreign Common Stocks
(Cost $34,071) 34,192
-------
FOREIGN PREFERRED STOCKS -- 0.0%
NETHERLANDS -- 0.0%
International Nederlanden* 1,012 5
-------
Total Foreign Preferred Stocks
(Cost $1) 5
-------
Total Investments -- 94.3% (of net assets) (Cost $34,072) $34,197
=======
</TABLE>
*Non-income producing security
PACIFIC BASIN EQUITY PORTFOLIO
<TABLE>
<S> <C> <C>
FOREIGN COMMON STOCKS -- 93.1%
AUSTRALIA -- 4.6%
Amcor 16,000 $115
Australia & New Zealand Bank Group 36,000 126
Australian National 30,000 30
Broken Hill Proprietary 19,000 262
CRA 10,000 128
John Fairfax 68,000 142
Mayne Nickless 26,000 118
Newscorp 40,000 178
Normandy Poseidon 50,000 64
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
SEI International Trust -- February 28, 1995
PACIFIC BASIN EQUITY PORTFOLIO
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Value
Description Shares (000)
- --------------------------------------------------
<S> <C> <C>
Oil Search 75,000 $ 49
Pancontinental Mining 60,000 77
Western Mining 31,125 167
Woodside Petroleum 17,000 63
-------
1,519
-------
HONG KONG -- 10.0%
Cheung Kong Holdings 71,000 309
Citic Pacific 80,000 199
Hong Kong & Shanghai Hotels 48,000 56
Hong Kong Electric 97,000 290
Hong Kong Telecommunications 190,800 343
HSBC Holdings 37,090 390
Hutchison Whampoa 103,000 437
Mandarin Oriental 272,718 323
Sun Hung Kai Properties 49,200 331
Swire Pacific "A" 46,000 323
Wharf Holdings 91,000 313
-------
3,314
-------
JAPAN -- 61.8%
Amada 34,000 338
Aoyama Trading 2,000 34
Bridgestone 54,000 738
Canon 23,000 343
Canon Sales 4,000 91
Chain Store Okuwa 5,000 96
Credit Saison 11,000 194
Dai Tokyo Fire & Marine Insurance 15,000 96
Daiwa Securities 30,000 336
DDI 30 223
Denny's 8,000 245
East Japan Railway 107 472
Familymart 5,040 233
Fuji Photo Film 11,000 236
Glory 4,000 111
Hirose Electric 4,000 213
Innotech 2,000 62
Ito Yokado 15,000 684
Japan Airport Terminal 18,000 196
Japan Associated Finance 2,000 215
Kahma 8,000 216
Koa Fire & Marine Insurance 31,000 170
Kobe Steel 45,000 116
Koito Industries 5,000 55
Kokusai Electric 6,000 100
Kuraray 20,000 207
Mabuchi Motor 3,000 187
Makita 22,000 342
Matsushita Electric 48,000 696
Mitsubishi 59,000 636
Mitsubishi Electric 108,000 702
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Value
Description Shares (000)
- ----------------------------------------------
<S> <C> <C>
Mitsubishi Gas Chemical 67,000 $ 274
Mitsubishi Motor 39,000 323
Mitsubishi Trust & Banking 36,000 511
Mitsui 77,000 534
Mitsui Petrochem 21,000 148
Mos Food Services 2,000 60
Mr. Max 4,200 90
Murata Manufacturing 16,000 529
National House 8,000 136
New Oji Paper 55,000 526
Nippon Shinpan 27,000 201
Nippon Steel 85,000 298
Nippon Television 1,000 205
Nomura Securities 22,000 381
Okinawa Electric Power 4,000 110
Omron 12,000 204
Sangetsu 5,000 132
Sankyo 16,000 376
Santen Pharmaceutical 5,000 127
Seino Transportation 19,000 299
Sekisui House 33,000 373
Seven Eleven 1,100 72
Shimachu 8,000 210
Shimamura 5,500 204
Shinetsu 11,000 178
Showa Shell Sekiyo 53,000 593
Sony 4,000 174
Sony Music Entertainment 2,000 91
Sumitomo Electric 7,000 80
Sumitomo Forestry 20,000 280
Taisho Pharmaceutical 7,000 119
Takashimaya 12,000 158
Toho 3,000 472
Tokio Marine & Fire Insurance 57,000 596
Tokyo Broadcasting System 23,000 312
Tokyo Electronics 13,000 343
Toray Industries 31,000 195
Toshiba 120,000 759
Toyota Motor 47,000 847
Yamanouchi Pharmaceutical 4,000 78
Yokogawa Electric 27,000 247
-------
20,428
-------
MALAYSIA -- 3.9%
Genting Berhad 33,500 290
Larut Consolidated 87,500 120
Larut Convertable Loan Stock* 42,000 12
Larut Warrants* 42,000 30
Malayan Banking 37,500 248
New Straits Times Press 33,000 91
Perusahaan Otomobil 48,000 169
Renong Berhad 47,000 64
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Value
Description Shares (000)
- --------------------------------------------------------------------------
<S> <C> <C>
Technology Resources 40,000 $ 137
Telekom Malaysia 18,000 126
-------
1,287
-------
NEW ZEALAND -- 1.7%
Carter Holt Harvey 255,511 563
-------
SINGAPORE -- 4.1%
DBS Land 32,000 84
Development Bank of Singapore "F" 18,000 174
Jurong Ship Yard 18,000 150
Keppel 25,000 200
Singapore International Airlines "F" 26,000 260
Singapore Press "F" 12,400 213
United Overseas Bank "F" 28,187 275
-------
1,356
-------
SOUTH KOREA -- 7.0%
Daewoo Securities 5,000 147
Goldstar 13,776 478
Hanil Bank 1,500 17
Hanshin 8,000 160
Korea Electric Power 14,700 477
Pohang Iron & Steel 7,000 545
Samsung Electronic 2,040 295
Shinhan Bank 8,000 156
Shinhan Bank (New) 1,468 29
-------
2,304
-------
Total Foreign Common Stocks
(Cost $35,397) 30,771
-------
FOREIGN PREFERRED STOCKS -- 0.3%
AUSTRALIA -- 0.1%
Newscorp 10,500 42
-------
SOUTH KOREA -- 0.2%
Hanshin 5,500 67
-------
Total Foreign Preferred Stocks
(Cost $156) 109
-------
Total Investments -- 93.4% (of net assets) (Cost $35,553) $30,880
=======
</TABLE>
*Non-income producing security
EMERGING MARKETS EQUITY PORTFOLIO
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Description Shares Value (000)
- ---------------------------------------------------------
<S> <C> <C>
FOREIGN COMMON STOCKS -- 77.8%
ARGENTINA -- 3.0%
Central Costanera 11,500 $ 28
Ciadea SA* 2,800 15
IRSA GDS* 3,400 66
Perez Companc 16,200 52
------
161
------
BRAZIL -- 5.3%
Brazil Fund 6,400 169
Cia Vale Do Rio Doce ADR 1,500 55
Telebras ADR 2,000 59
------
283
------
CHILE -- 5.1%
Banco Osorno ADS* 7,700 81
Chilgener ADR 7,000 164
Maderas Y Sintecticos Sociedad ADR 1,500 26
------
271
------
CHINA -- 0.4%
Huaneng Power ADS* 1,300 20
------
GREECE -- 1.5%
Hellenic Bottling 2,210 79
------
HONG KONG -- 4.3%
CDL Hotels International 116,000 50
Guang Dong Investment 96,000 44
Johnson Electric Holdings 22,000 44
MC Packaging 70,000 23
Shangri-La Asia 42,000 43
Siu-Fung Ceramics 160,000 23
------
227
------
INDIA -- 1.8%
India Investment Fund 9,500 94
------
INDONESIA -- 4.9%
Indonesia Satellite ADR* 4,100 146
Indorayon 14,000 35
Semen Gresik "F" 17,000 79
------
260
------
KOREA -- 2.1%
Korea Equity Fund 3,400 27
Korea Fund 1,400 27
Korea Investment Fund 4,600 57
------
111
------
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
SEI International Trust -- February 28, 1995
EMERGING MARKETS EQUITY PORTFOLIO
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market
Description Shares Value (000)
- -------------------------------------------------------
<S> <C> <C>
MALAYSIA -- 13.7%
Arab Malaysian Merchant Bank 31,000 $ 288
IJM Corp Berhad 36,000 124
Resorts World Berhad 15,000 81
United Engineers 42,000 234
------
727
------
MEXICO -- 1.8%
Cemex SA "B" 3,000 7
Kimberly Clark "A" 1,000 7
Panamerican Beverages ADR 695 17
Penoles* 5,000 10
Telefonos de Mexico ADS 1,900 53
------
94
------
PHILIPPINES -- 6.0%
Ayala "B" 38,800 52
Bacnotan Cement* 51,200 62
Manila Mining "B" 5,100,000 20
Petron 121,000 88
Philippine Long Distance ADR 1,650 98
------
320
------
SINGAPORE -- 10.1%
City Developments 8,000 39
Singapore International Airlines 13,000 130
Singapore Press "F" 5,000 86
United Overseas Bank "F" 29,000 282
------
537
------
SOUTH AFRICA -- 0.9%
Anglo American 500 27
Barlow 2,200 22
------
49
------
SOUTH KOREA -- 1.5%
Korea Electric Power ADR 2,050 38
Pohang Iron & Steel ADS 1,600 41
------
79
------
TAIWAN -- 2.6%
Taiwan (ROC) Fund* 6,800 76
Taiwan Equity Fund 5,200 59
------
135
------
THAILAND -- 12.8%
Electricity Generating* 66,300 169
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Face Market
Description Amount (000)(1) Value (000)
- -----------------------------------------------------------------------------
<S> <C> <C>
Siam Cement 4,300 $ 258
Thai Farmers Bank 30,200 250
------
677
------
Total Foreign Common Stocks
(Cost $4,070) 4,124
------
Total Investments -- 77.8% (of net assets) (Cost
$4,070) $4,124
======
*Non-income producing security
ADRAmerican Depository Receipt
ADSAmerican Depository Shares
GDS Global Depository Shares
INTERNATIONAL FIXED
INCOME PORTFOLIO
FOREIGN BONDS -- 85.3%
AUSTRALIA -- 1.2%
Australian Government
8.750%, 01/15/01 705 $ 498
------
BELGIUM -- 2.4%
Kingdom of Belgium
9.000%, 06/27/01 15,000 527
7.250%, 04/29/04 15,000 470
------
997
------
CANADA -- 1.8%
Canadian Government
7.500%, 12/01/03 35 24
6.500%, 06/01/04 615 386
9.250%, 06/01/22 255 193
9.000%, 06/01/25 240 178
------
781
------
DENMARK -- 4.1%
Kingdom of Denmark
8.000%, 11/15/01 4,320 719
8.000%, 05/15/03 6,300 1,041
------
1,760
------
FRANCE -- 9.6%
French Treasury Bill
5.920%, 04/20/95 8,500 1,643
Government of France OAT
9.500%, 01/25/01 3,200 673
5.500%, 04/25/04 4,310 709
8.500%, 10/25/08 5,260 1,061
------
4,086
------
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Face Amount Market
Description (000)(1) Value (000)
- ---------------------------------------------------
<S> <C> <C>
GERMANY -- 18.8%
Bundesrepublic
9.000%, 10/20/00 2,095 $ 1,557
Bundesschatzanweisungen
6.875%, 02/24/99 1,295 890
Deutschland Republic
6.250%, 01/04/24 625 354
Deutschland Republic Float
5.280%, 09/20/04 1,100 746
KFW International Finance
6.625%, 04/15/03 1,140 739
Treuhandanstalt
7.125%, 01/29/03 210 141
7.500%, 09/09/04 5,190 3,581
-------
8,008
-------
ITALY -- 4.8%
Italian Government BTPS
8.500%, 04/01/99 2,675,000 1,408
8.500%, 08/01/99 1,190,000 619
-------
2,027
-------
JAPAN -- 25.8%
Asian Development Bank
5.000%, 02/05/03 226,000 2,413
Export-Import Bank
4.375%, 10/01/03 250,000 2,566
Japanese Development Bank
5.000%, 10/01/99 50,000 544
Republic of Austria
6.250%, 10/16/03 173,000 2,009
3.750%, 02/03/09 5,000 46
Republic of Finland
6.000%, 01/29/02 130,000 1,466
World Bank
4.500%, 06/20/00 65,000 691
4.500%, 03/20/03 120,000 1,252
-------
10,987
-------
NETHERLANDS -- 5.6%
Kingdom of Netherlands
6.500%, 01/15/99 137 83
Netherlands Government
6.250%, 07/15/98 878 527
7.500%, 06/15/99 800 498
8.500%, 03/15/01 350 227
7.250%, 10/01/04 1,725 1,038
-------
2,373
-------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Face Amount Market
Description (000)(1) Value (000)
- -----------------------------------------------------------
<S> <C> <C>
NEW ZEALAND -- 2.6%
New Zealand Government
9.000%, 11/15/96 1,150 $ 728
6.500%, 02/15/00 255 147
8.000%, 04/15/04 150 92
New Zealand Treasury Bill
8.810%, 04/05/95 200 126
-------
1,093
-------
NORWAY -- 0.6%
Government of Norway
9.500%, 10/31/02 1,600 271
-------
SPAIN -- 1.1%
Kingdom of Spain
10.300%, 06/15/02 14,400 104
8.000%, 05/30/04 60,000 372
-------
476
-------
SWEDEN -- 0.8%
Kingdom of Sweden
10.250%, 05/05/03 1,800 242
Swedish Treasury Note
11.000%, 01/21/99 800 112
-------
354
-------
UNITED KINGDOM -- 6.1%
European Investment Bank
7.000%, 03/30/98 200 302
United Kingdom Treasury
10.000%, 02/26/01 415 695
6.750%, 11/26/04 90 125
8.500%, 12/07/05 245 384
8.750%, 08/25/17 680 1,106
-------
2,612
-------
Total Foreign Bonds
(Cost $35,283) 36,323
-------
U. S. TREASURY OBLIGATIONS -- 4.5%
U.S. Treasury Bills
5.750%, 03/23/95 $ 400 399
5.400%, 04/06/95 1,300 1,293
U.S. Treasury Note
7.750%, 01/31/00 20 21
5.875%, 02/15/04 140 128
10.375%, 11/15/12 20 25
7.500%, 11/15/24 35 35
-------
1,901
-------
Total U. S. Treasury Obligations
(Cost $1,896) 1,901
-------
</TABLE>
<PAGE>
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
SEI International Trust -- February 28, 1995
INTERNATIONAL FIXED INCOME PORTFOLIO
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Face Amount Market
Description (000)(1) Value (000)
- -----------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENT -- 4.7%
Prudential Mortgage
6.01%, dated 2/28/95, matures 3/1/95, repurchase
price $2,010,980 (collateralized by Federal
National Mortgage Association, 9.00%, due 2/1/23,
par value $12,485,623; market value $2,051,200) $ 2,011 $ 2,011
-------
Total Repurchase Agreement
(Cost $2,011) 2,011
-------
FOREIGN CURRENCY OPTIONS -- 0.1%
UNITED STATES -- 0.1%
German Deutschmark Call
04/17/95 1,203 1
06/23/95 1,863 44
-------
45
-------
Total Foreign Currency Options
(Cost $28) 45
-------
Total Investments -- 94.6% (of net assets) (Cost
$39,218) $40,280
=======
</TABLE>
(1)In local currency
The accompanying notes are an integral part of the financial statements.
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES (000)
- --------------------------------------------------------------------------------
February 28, 1995
<TABLE>
<CAPTION>
-------- ------------ -------------- -------------
EUROPEAN PACIFIC EMERGING INTERNATIONAL
EQUITY BASIN EQUITY MARKETS EQUITY FIXED INCOME
-------- ------------ -------------- -------------
<S> <C> <C> <C> <C>
ASSETS:
Investment securities
(Cost $34,072, $35,553,
$4,070, and $39,218,
respectively) $34,197 $30,880 $4,124 $40,280
Cash and foreign currency 3,093 2,062 3,240 1,772
Dividends and interest
receivable 102 15 -- 893
Investment securities sold 500 104 -- 3,541
Other assets 300 275 173 842
------- ------- ------ -------
Total assets 38,192 33,336 7,537 47,328
------- ------- ------ -------
LIABILITIES:
Investment securities
purchased 1,784 -- 2,227 4,582
Other liabilities 130 288 10 166
------- ------- ------ -------
Total liabilities 1,914 288 2,237 4,748
------- ------- ------ -------
NET ASSETS:
Portfolio shares of Class
A (unlimited
authorization -- no par
value) based on
3,662,624, 3,783,728,
516,020 and 4,086,471
respectively, outstanding
shares of beneficial
interest 36,439 37,766 5,240 41,893
Accumulated net realized
loss on investments (165) (37) -- (927)
Accumulated net realized
gain (loss) on foreign
currency transactions (98) 73 1 (374)
Net unrealized
appreciation
(depreciation) on forward
foreign currency
contracts, foreign
currencies and
translation of other
assets and liabilities
denominated in foreign
currencies (13) (81) (1) 472
Net unrealized
appreciation
(depreciation) on
investments 125 (4,673) 54 1,062
Undistributed net
investment income (loss) (10) -- 6 454
------- ------- ------ -------
Net assets $36,278 $33,048 $5,300 $42,580
======= ======= ====== =======
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE PER
SHARE -- CLASS A $ 9.90 $ 8.73 $10.27 $ 10.42
======= ======= ====== =======
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
STATEMENT OF OPERATIONS (000)
- --------------------------------------------------------------------------------
For the period ended February 28, 1995
<TABLE>
<CAPTION>
------------- --------- --------- --------- -------------
CORE PACIFIC EMERGING
INTERNATIONAL EUROPEAN BASIN MARKETS INTERNATIONAL
EQUITY EQUITY(1) EQUITY(2) EQUITY(3) FIXED INCOME
------------- --------- --------- --------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ 11,275 $ 471 $ 136 -- --
Interest 1,985 80 59 $ 13 $1,946
Less: Foreign Taxes Withheld (1,483) (73) (17) -- --
-------- ----- ------- ---- ------
Total Investment Income 11,777 478 178 13 1,946
-------- ----- ------- ---- ------
EXPENSES:
Management fees 2,729 164 159 2 206
Less management fees waived (77) (57) (76) (2) (84)
Reimbursement by
manager -- -- -- (9) --
Investment advisory
fees 1,516 67 80 4 103
Less investment
advisory fees waived -- -- -- -- (17)
Custodian/wire agent fees 524 23 24 5 36
Professional fees 147 10 11 1 15
Registration & filing
fees 11 15 15 2 10
Printing fees 142 9 9 -- 13
Trustee fees 25 1 1 -- 2
Pricing fees 39 8 10 1 8
Distribution fees 562 22 21 1 40
Amortization of
deferred
organization costs 8 5 5 -- 9
Miscellaneous fees 14 -- -- 2 2
-------- ----- ------- ---- ------
Total Expenses 5,640 267 259 7 343
-------- ----- ------- ---- ------
NET INVESTMENT INCOME (LOSS) 6,137 211 (81) 6 1,603
-------- ----- ------- ---- ------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY
TRANSACTIONS:
Net realized gain
(loss) from security transactions 36,204 (165) (37) -- (927)
Net realized gain
(loss) on forward
foreign currency
contracts and foreign
currency transactions (25,138) (154) (74) 1 670
Net change in
unrealized
appreciation (depreciation)
on forward foreign currency
contracts, foreign currencies
and translation of
other assets and
liabilities
denominated in foreign
currencies 10,819 (13) (81) (1) 313
Net change in
unrealized
appreciation (depreciation)
on investments (58,990) 125 (4,673) 54 1,420
-------- ----- ------- ---- ------
NET INCREASE (DECREASE)
IN NET ASSETS FROM
OPERATIONS $(30,968) $ 4 $(4,946) $ 60 $3,079
======== ===== ======= ==== ======
</TABLE>
(1) European Equity commenced operations on April 29, 1994.
(2) Pacific Basin Equity commenced operations on April 29, 1994.
(3) Emerging Markets Equity commenced operations on January 17, 1995.
The accompanying notes are an integral part of the financial statements.
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (000)
- --------------------------------------------------------------------------------
For the periods ended February 28
<TABLE>
<CAPTION>
-------------------- --------- --------- --------- -----------------
CORE PACIFIC EMERGING INTERNATIONAL
INTERNATIONAL EUROPEAN BASIN MARKETS FIXED
EQUITY EQUITY(1) EQUITY(2) EQUITY(3) INCOME(4)
-------------------- --------- --------- --------- -----------------
1995 1994 1995 1995 1995 1995 1994
-------------------- --------- --------- --------- -----------------
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(loss) $ 6,137 $ 5,010 $ 211 $ (81) $ 6 $ 1,603 $ 270
Net realized gain (loss)
from security
transactions 36,204 8,679 (165) (37) -- (927) 67
Net realized gain (loss)
on forward foreign
currency contracts and
foreign currency
transactions (25,138) 1,305 (154) (74) 1 670 32
Net change in unrealized
appreciation
(depreciation) on
forward foreign
currency contracts,
foreign currencies and
translation of other
assets and liabilities
denominated in foreign
currencies 10,819 (13,616) (13) (81) (1) 313 159
Net change in unrealized
appreciation
(depreciation) on
investments (58,990) 64,790 125 (4,673) 54 1,420 (357)
--------- --------- ------- ------- ------ -------- -------
Net increase (decrease)
in net assets from
operations (30,968) 66,168 4 (4,946) 60 3,079 171
--------- --------- ------- ------- ------ -------- -------
DIVIDENDS DISTRIBUTED
FROM:
Net investment income:
Class A -- (4,197) (165) -- -- (2,335) (161)
ProVantage Funds -- -- -- -- -- -- --
Net realized gains:
Class A (23,038) -- -- -- -- (67) --
ProVantage Funds (2) -- -- -- -- -- --
--------- --------- ------- ------- ------ -------- -------
Total dividends
distributed (23,040) (4,197) (165) -- -- (2,402) (161)
--------- --------- ------- ------- ------ -------- -------
CAPITAL SHARE
TRANSACTIONS (1):
Class A:
Proceeds from shares
issued 340,533 386,567 41,513 49,353 5,264 36,006 25,391
Shares issued in lieu
of cash distributions 14,427 2,264 144 -- -- 1,486 99
Cost of shares
repurchased (475,951) (125,591) (5,218) (11,359) (24) (19,267) (1,822)
--------- --------- ------- ------- ------ -------- -------
Increase (decrease) in
net assets derived
from Class A (120,991) 263,240 36,439 37,994 5,240 18,225 23,668
--------- --------- ------- ------- ------ -------- -------
ProVantage Funds:
Proceeds from shares
issued 53 -- -- -- -- -- --
Shares issued in lieu
of cash distributions 2 -- -- -- -- -- --
Cost of shares
repurchased -- -- -- -- -- -- --
--------- --------- ------- ------- ------ -------- -------
Increase in net assets
derived from
ProVantage Funds 55 -- -- -- -- -- --
--------- --------- ------- ------- ------ -------- -------
INCREASE (DECREASE) IN
NET ASSETS DERIVED FROM
CAPITAL SHARE
TRANSACTIONS (120,936) 263,240 36,439 37,994 5,240 18,225 23,668
--------- --------- ------- ------- ------ -------- -------
Net increase
(decrease) in net
assets (174,944) 325,211 36,278 33,048 5,300 18,902 23,678
NET ASSETS:
Beginning of period 503,498 178,287 -- -- -- 23,678 --
--------- --------- ------- ------- ------ -------- -------
End of period $ 328,554 $ 503,498 $36,278 $33,048 $5,300 $ 42,580 $23,678
========= ========= ======= ======= ====== ======== =======
(1) CAPITAL SHARE
TRANSACTIONS:
Class A:
Shares issued 32,225 37,661 4,171 5,018 518 3,504 2,483
Shares issued in lieu
of cash distributions 1,437 219 15 -- -- 150 10
Shares repurchased (45,194) (12,060) (523) (1,234) (2) (1,882) (178)
--------- --------- ------- ------- ------ -------- -------
Total Class A
transactions (11,532) 25,820 3,663 3,784 516 1,772 2,315
--------- --------- ------- ------- ------ -------- -------
ProVantage Funds:
Shares issued 5 -- -- -- -- -- --
Shares issued in lieu
of cash distributions -- -- -- -- -- -- --
Shares repurchased -- -- -- -- -- -- --
--------- --------- ------- ------- ------ -------- -------
Total ProVantage Funds
transactions 5 -- -- -- -- -- --
--------- --------- ------- ------- ------ -------- -------
Net increase
(decrease) in capital
shares (11,527) 25,820 3,663 3,784 516 1,772 2,315
========= ========= ======= ======= ====== ======== =======
</TABLE>
(1) European Equity commenced operations on April 29, 1994.
(2) Pacific Basin Equity commenced operations on April 29, 1994.
(3) Emerging Markets Equity commenced operations on January 17, 1995.
(4) International Fixed Income commenced operations on September 1, 1993.
The accompanying notes are an integral part of the financial statements.
<PAGE>
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
For the period ended February 28, 1995
For a Share Outstanding Throughout each Period
<TABLE>
<CAPTION>
Net Asset Distributions Distributions
Value Net Net Realized and from Net from Net Asset Net Assets
Beginning Investment Unrealized Investment Realized Capital Return Value End Total End of
of Period Income/(Loss) Gains/(Losses) Income(6) Gains of Capital of Period Return Period(000)
- ----------------------------------------------------------------------------------------------------------------------------
CORE INTERNATIONAL EQUITY PORTFOLIO
-----------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CLASS A
1995 $11.00 $ 0.15 $(0.97) -- $(0.59) -- $ 9.59 (7.67)% $328,503
1994 8.93 0.13 2.05 $(0.11) -- -- 11.00 24.44 503,498
1993 9.09 0.16 0.04 (0.36) -- -- 8.93 2.17 178,287
1992 9.56 0.19 (0.36) (0.30) -- -- 9.09 (1.63) 92,456
1991 9.62 0.18 (0.14) -- (0.01) $(0.09) 9.56 0.36 35,829
PROVANTAGE FUNDS
1995(1) $10.81 $ 0.01 $(0.67) -- $(0.59) -- $ 9.56 (6.33)% $ 51
<CAPTION>
EUROPEAN EQUITY PORTFOLIO
-------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CLASS A
1995(2) $10.00 $ 0.06 $(0.11) $(0.05) -- -- $ 9.90 (0.40)% $ 36,278
<CAPTION>
PACIFIC BASIN EQUITY PORTFOLIO
------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CLASS A
1995(3) $10.00 $(0.02) $(1.25) -- -- -- $ 8.73 (12.70)% $ 33,048
<CAPTION>
EMERGING MARKETS EQUITY PORTFOLIO
---------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CLASS A
1995(4) $10.00 $ 0.01 $ 0.26 -- -- -- $10.27 2.70% $ 5,300
<CAPTION>
INTERNATIONAL FIXED INCOME PORTFOLIO
------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CLASS A
1995 $10.23 $ 0.43 $0.40 $ (0.62) $(0.02) -- $10.42 8.43% $ 42,580
1994(5) 10.00 0.14 0.18 (0.09) -- -- 10.23 6.41 23,678
<CAPTION>
Ratio of
Ratio of Net Investment
Ratio of Expenses Income (Loss)
Ratio of Net Investment to Average to Average
Expenses Income (Loss) Net Assets Net Assets Portfolio
to Average to Average (Excluding (Excluding Turnover
Net Assets Net Assets Waivers) Waivers) Rate
- ----------------------------------------------------------------------------------------------------------------------------
CORE INTERNATIONAL EQUITY PORTFOLIO
-----------------------------------
<S> <C> <C> <C> <C> <C>
CLASS A
1995 1.19% 1.30% 1.21% 1.28% 64%
1994 1.10 1.46 1.24 1.32 19
1993 1.10 1.80 1.53 1.37 23
1992 1.10 2.07 1.52 1.63 79
1991 1.10 3.52 1.64 2.98 14
PROVANTAGE FUNDS
1995(1) 1.47% 0.42% 1.48% 0.41% 64%
<CAPTION>
EUROPEAN EQUITY PORTFOLIO
-------------------------
<S> <C> <C> <C> <C> <C>
CLASS A
1995(2) 1.30% 1.02% 1.57% 0.75% 29%
<CAPTION>
PACIFIC BASIN EQUITY PORTFOLIO
------------------------------
<S> <C> <C> <C> <C> <C>
CLASS A
1995(3) 1.30% (0.41)% 1.68% (0.79)% 9%
<CAPTION>
EMERGING MARKETS EQUITY PORTFOLIO
---------------------------------
<S> <C> <C> <C> <C> <C>
CLASS A
1995(4) 1.95% 1.79% 4.98% (1.24)% --
<CAPTION>
INTERNATIONAL FIXED INCOME PORTFOLIO
------------------------------------
<S> <C> <C> <C> <C> <C>
CLASS A
1995 1.00% 4.68% 1.30% 4.38% 303%
1994(5) 1.00 3.81 1.61 3.20 126
</TABLE>
(1) Core International Equity ProVantage Funds shares were offered beginning
May 1, 1994. All ratios for that period have been annualized.
(2) European Equity Class A shares were offered beginning April 29, 1994. All
ratios for that period have been annualized.
(3) Pacific Basin Equity Class A shares were offered beginning April 29, 1994.
All ratios for that period have been annualized.
(4) Emerging Markets Equity Class A shares were offered beginning January 17,
1995. All ratios for that period have been annualized.
(5) International Fixed Income Class A shares were offered beginning September
1, 1993. All ratios for that period have been annualized.
(6) Distributions from net investment income include distributions of certain
foreign currency gains and losses.
The accompanying notes are an integral part of the financial statements.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
February 28, 1995
1. ORGANIZATION
SEI International Trust (the "Trust") was organized as a Massachusetts business
trust under a Declaration of Trust dated June 30, 1988. The operations of the
Trust commenced on December 20, 1989.
2. SIGNIFICANT ACCOUNTING POLICIES
The Trust is registered under the Investment Company Act of 1940, as amended,
as an open-end management investment company with five portfolios: the Core In-
ternational Equity Portfolio (formerly the International Equity Portfolio), the
European Equity Portfolio, the Pacific Basin Equity Portfolio, the Emerging
Markets Equity Portfolio and the International Fixed Income Portfolio (together
the "Portfolios"). The Trust is registered to offer Class A shares for all
portfolios and ProVantage Funds shares of the Core International Equity Portfo-
lio. The following is a summary of significant accounting policies followed by
the Portfolios.
Security Valuation--Securities listed on a securities exchange for which mar-
ket quotations are readily available are valued at the last quoted sales price
for such securities, or if there is no such reported sale on the valuation
date, at the most recent quoted bid price. Unlisted securities for which market
quotations are readily available are valued at the most recent quoted bid
price. Short-term investments may be valued at amortized cost which approxi-
mates market value.
Federal Income Taxes--It is the intention of each Portfolio to continue to
qualify as a regulated investment company and to distribute all of its taxable
income. Accordingly, no provision for Federal income taxes is required in the
accompanying financial statements.
Net Asset Value Per Share--The net asset value per share of each Portfolio is
calculated on each business day. It is computed by dividing the assets of the
portfolio, less its liabilities, by the number of outstanding shares of the
portfolio.
Repurchase Agreements--Securities pledged as collateral for repurchase agree-
ments are held by the custodian bank until maturity of the repurchase agree-
ments. Provisions of the repurchase agreements and procedures adopted by the
Trust require that the market value of the collateral, including accrued inter-
est thereon, is sufficient in the event of default by the counterparty.
The Portfolios may also invest in tri-party repurchase agreements. Securities
held as collateral for tri-party repurchase agreements are maintained in a seg-
regated account by the broker's custodian bank until maturity of the repurchase
agreement. Provisions of the agreements require that the market value of the
collateral, including accrued interest thereon, is sufficient in the event of
default.
If the counterparty defaults and the value of the collateral declines or if
the counterparty enters an insolvency proceeding, realization of the collateral
by the Portfolio may be delayed or limited.
Foreign Currency Translation--The books and records of the Portfolios are
maintained in U.S. dollars. Foreign currency amounts are translated into U.S.
dollars on the following bases:
(I) market value of investment securities, other assets and liabilities at
the current rate of exchange; and
(II) purchases and sales of investment securities, income and expenses at the
relevant rates of exchange prevailing on the respective dates of such transac-
tions.
The Portfolios do not isolate that portion of gains and losses on investment
securities which is due to changes in the foreign exchange rates from that
which is due to changes in market prices of such securities.
The Portfolios report gains and losses on foreign currency related transac-
tions as realized and unrealized gains and losses for financial reporting pur-
poses, whereas such gains and losses are treated as ordinary income or loss for
Federal income tax purposes.
Forward Foreign Currency Contracts--The Portfolios enter into forward foreign
currency contracts as hedges against either specific transactions or portfolio
positions. The aggregate principal amounts of the contracts are not recorded as
the Portfolios do not intend to hold the contracts to maturity. All commitments
are "marked-to-market" daily at the applicable foreign exchange rate and any
resulting unrealized gains or losses are recorded currently. The Portfolios re-
alize gains or losses at the time for-
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Continued)
- --------------------------------------------------------------------------------
February 28, 1995
ward contracts are extinguished. Unrealized gains or losses on outstanding po-
sitions in forward foreign currency contracts held at the close of the year
will be recognized as ordinary income or loss for federal income tax purposes.
Foreign Currency Options--Premiums paid by a portfolio for the purchase of an
option are included in the portfolio's Schedule of Investments as an investment
and subsequently marked to market to reflect the current market value of the
option. For an option held by a portfolio on the stipulated expiration date,
the portfolio realizes a gain or loss. If the portfolio enters into a closing
sale transaction, it realizes a gain or loss, depending on whether the proceeds
from the sale are greater or less than the cost of the purchased option. If the
portfolio exercises a purchased put option, it realizes a gain or loss from the
sale of the underlying investment and the proceeds from such sale will be de-
creased by the premium originally paid. If the portfolio exercises a purchased
call option, the cost of the underlying investment which the fund purchases
upon exercise will be increased by the premium originally paid.
Classes--Class-specific expenses are borne by that class. Income, expenses,
and realized and unrealized gains/losses are allocated to the respective clas-
ses on the basis of relative daily net assets.
Other--Security transactions are accounted for on the trade date of the secu-
rity purchase or sale. Costs used in determining net realized capital gains and
losses on the sale of investment securities are those of the specific securi-
ties sold. Purchase discounts and premiums on securities held by the Portfolios
are accreted and amortized to maturity using the scientific interest method,
which approximates the effective interest method. Distributions from net in-
vestment income and any net realized capital gains are generally made to Share-
holders annually. Dividend income is recognized on the ex-dividend date and in-
terest income is recognized using the accrual method.
The amounts of the distributions from net investment income and net realized
capital gains are determined in accordance with Federal income tax regulations,
which may differ from those amounts determined under generally accepted ac-
counting principles. The book/tax differences are either temporary or permanent
in nature. To the extent these differences are permanent, they are charged or
credited to paid-in capital in the period the difference arises.
During the fiscal year ended February 28, 1995 the following amounts relating
to permanent differences attributable to cumulative net operating losses and
differences in the characterization of certain foreign currency realized and
unrealized gains (losses) have been reclassified as follows:
<TABLE>
<CAPTION>
CORE PACIFIC
INTERNATIONAL BASIN
EQUITY EQUITY
(000) (000)
------------- -------
<S> <C> <C>
Paid-in Capital $(5,615) $(228)
Accumulated net realized gain on investments (2,288) --
Accumulated net realized gain (loss) on foreign currency
transactions 15,349 147
Undistributed net investment income (loss) (7,446) 81
</TABLE>
These reclassifications have no effect on net assets or net asset values per
share.
3. MANAGEMENT, INVESTMENT ADVISORY AND DISTRIBUTION AGREEMENTS
SEI Financial Management Corporation (the "Manager"), a wholly owned subsidiary
of SEI Corporation, and the Trust are parties to a management agreement dated
August 30, 1988, under which the Manager provides management, administrative
and shareholder services to each Portfolio for an annual fee equal to .45% of
the average daily net assets of the Core International Equity Portfolio, .60%
of the average daily net assets of the International Fixed Income Portfolio,
.80% of the average daily net assets of the European Equity and the Pacific Ba-
sin Equity Portfolios and .65% of the average daily net assets of the Emerging
Markets Equity Portfolio . The Manager has agreed to waive all or a portion of
its fees in order to limit the operating expenses of the Portfolios to a speci-
fied percentage of its average daily net assets as follows:
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
Core International Equity
Portfolio 1.25%
European Equity Portfolio 1.30%
Pacific Basin Equity
Portfolio 1.30%
Emerging Markets Equity
Portfolio 1.95%
International Fixed Income
Portfolio 1.00%
</TABLE>
In addition, the Trust and Manager have entered into a separate Transfer
Agent Agreement with respect to the ProVantage Funds under which the Manager is
entitled to a fee of .15% of the average daily net assets of the ProVantage
Funds plus out-of-pocket costs.
SEI Financial Management Corporation (SFM), the adviser for the Core Interna-
tional Equity and the Emerging Markets Equity Portfolios, is a party to an in-
vestment advisory agreement dated December 16, 1994. Under the Investment Advi-
sory Agreement, SFM receives an annual fee of .475% of the average daily net
assets of the Core International Equity Portfolio and 1.05% of the average
daily net assets of the Emerging Markets Equity Portfolio. Pursuant to a Sub-
Advisory Agreement with SFM, Acadian Asset Management, Inc. and World Invest
Limited serve as Sub-Advisers to the Core International Equity Portfolio and
Montgomery Asset Management, L.P. serves as Sub-Adviser to the Emerging Markets
Equity Portfolio.
Morgan Grenfell Investment Services Limited, the advisor for the European Eq-
uity Portfolio, is a party to an investment advisory agreement with the Trust
dated April 25, 1994. Under the investment advisory agreement, Morgan Grenfell
Investment Services Limited receives an annual fee of .325% of the average
daily net assets of the Portfolio.
Schroder Capital Management International Limited, the adviser for the Pa-
cific Basin Equity Portfolio, is a party to an investment advisory agreement
with the Trust dated April 25, 1994. Under the investment advisory agreement,
Schroder Capital Management International Limited receives an annual fee of
.40% of the average daily net assets of the Portfolio up to $100 million, .30%
for the next $50 million in assets, and .20% of assets in excess of $150 mil-
lion.
Strategic Fixed Income, L.P., the adviser for the International Fixed Income
Portfolio, is a party to an investment advisory agreement with the Trust dated
June 15, 1993. Under the investment advisory agreement, Strategic Fixed Income,
L.P. receives an annual fee of .30% of the average daily net assets of the
Portfolio. Strategic Fixed Income, L.P. has voluntarily agreed to waive its
fee, in conjunction with the Manager, in order to limit the operating expenses
of the Portfolio to not more than 1.00% of average daily net assets.
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. Such expenses may not exceed
.30% of the daily average net assets of each Portfolio. 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 daily net assets. In addition, the Core International
Equity Portfolio has registered an additional class of shares, the ProVantage
Funds shares, for which a separate distribution plan has been adopted. This
plan provides for additional payments to the Distributor of up to .30% of
ProVantage Funds average daily net assets.
Certain Officers and/or Trustees of the Trust are also officers and/or Direc-
tors of the Manager. Compensation of officers and affiliated Trustees is paid
by the Manager.
4. ORGANIZATIONAL COSTS
Organizational costs have been capitalized by the Portfolios and are being am-
ortized using the straight line method over sixty months commencing with opera-
tions of the respective Portfolio. In the event any of the initial shares of
the Portfolios acquired by the Manager are redeemed during the period that the
Portfolios are amortizing their organizational costs, the redemption proceeds
payable to the Manager by the Portfolios will be reduced by an amount equal to
a pro rata portion of unamortized organizational costs.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Concluded)
- --------------------------------------------------------------------------------
February 28, 1995
5. FORWARD FOREIGN CURRENCY CONTRACTS
The Portfolios enter into forward foreign currency exchange contracts as hedges
against portfolio positions. Such contracts, which protect the value of the
Portfolio's investment securities against a decline in the value of the hedged
currency, do not eliminate fluctuations in the underlying prices of the securi-
ties. They simply establish an exchange rate at a future date. Also, although
such contracts tend to minimize the risk of loss due to a decline in the value
of a hedged currency, at the same time they tend to limit any potential gain
that might be realized should the value of such foreign currency increase.
The following forward foreign currency contracts were outstanding at February
28, 1995:
<TABLE>
<CAPTION>
IN UNREALIZED
MATURITY CONTRACTS TO EXCHANGE APPRECIATION
DATES DELIVER/RECEIVE FOR (DEPRECIATION)
- ----------------- ----------------- ----------- --------------
<S> <C> <C> <C> <C>
CORE INTERNATIONAL EQUITY PORTFOLIO:
- ------------------------------------
FOREIGN CURRENCY SALE:
04/20/95-05/15/95 JY 5,100,000,000 $52,101,331 $(1,081,262)
=========== ===========
EUROPEAN EQUITY PORTFOLIO:
- --------------------------
FOREIGN CURRENCY SALE:
05/31/95 FF 15,100,000 $ 2,925,676 $ (16,144)
=========== -----------
FOREIGN CURRENCY PURCHASES:
03/01/95 UK 41,312 $ 65,355 $ 22
03/02/95 SK 1,178,924 160,234 726
03/02/95 SP 6,267,783 48,853 276
----------- -----------
$ 274,442 $ 1,024
=========== -----------
$ (15,120)
===========
PACIFIC BASIN EQUITY PORTFOLIO:
- -------------------------------
FOREIGN CURRENCY SALES:
03/02/95 AD 140,810 $ 103,805 $ (98)
06/19/95 JY 490,000,000 5,058,287 (81,248)
----------- -----------
$ 5,162,092 $ (81,346)
=========== ===========
EMERGING MARKETS EQUITY PORTFOLIO:
- ----------------------------------
FOREIGN CURRENCY PURCHASES:
03/01/95 GD 10,820,835 $ 46,700 $ (99)
03/06/95-03/09/95 MR 425,258 166,723 (37)
----------- -----------
$ 213,423 $ (136)
=========== ===========
</TABLE>
<TABLE>
<CAPTION>
IN UNREALIZED
MATURITY CONTRACTS TO EXCHANGE APPRECIATION
DATES DELIVER/RECEIVE FOR (DEPRECIATION)
- ----------------- ----------------- ----------- --------------
<S> <C> <C> <C> <C>
SEI INTERNATIONAL FIXED INCOME PORTFOLIO:
- -----------------------------------------
FOREIGN CURRENCY SALES:
03/01/95-06/22/95 UK 6,789,050 $10,607,691 $ (113,582)
03/24/95 NK 1,750,979 260,601 (11,119)
03/24/95 XE 2,612,071 3,164,524 (162,701)
03/24/95-05/24/95 AD 3,082,228 2,363,490 92,884
03/24/95-05/24/95 BF 54,377,595 1,724,324 (87,589)
03/24/95-06/22/95 CD 4,342,377 3,091,877 (17,064)
03/24/95-06/22/95 CH 9,286,428 7,284,469 (282,176)
03/24/95-06/22/95 DK 24,287,435 4,067,706 (125,046)
03/24/95-06/22/95 DM 27,340,943 17,762,745 (1,026,039)
03/24/95-06/22/95 FF 43,534,398 8,202,363 (279,944)
03/24/95-06/22/95 IT 8,856,438,040 5,403,326 121,646
03/24/95-06/22/95 JY 1,365,334,338 13,848,417 (374,925)
03/24/95-06/22/95 NG 3,415,114 2,003,430 (90,558)
03/24/95-06/22/95 NZ 3,897,356 2,463,113 9,128
03/24/95-06/22/95 SK 10,286,619 1,379,195 (18,912)
03/24/95-06/22/95 SP 513,363,079 3,865,044 (137,082)
----------- -----------
$87,492,315 $(2,503,079)
=========== -----------
FOREIGN CURRENCY PURCHASES:
03/01/95-05/24/95 DK 20,440,272 $ 3,353,324 $ 174,717
03/02/95-06/22/95 DM 39,169,662 25,544,138 1,379,007
03/23/95-06/22/95 JY 1,604,667,710 16,314,309 412,282
03/24/95 BF 27,463,710 850,270 64,802
03/24/95 SK 8,243,792 1,088,701 35,341
03/24/95-06/22/95 IT 7,829,728,298 4,792,055 (124,155)
03/24/95-06/22/95 NG 3,355,870 1,921,027 135,012
03/24/95-06/22/95 XE 2,909,062 3,589,716 115,218
03/24/95-06/22/95 AD 2,970,091 2,229,202 (47,544)
03/24/95-06/22/95 CD 4,201,320 2,973,131 32,492
03/24/95-06/22/95 CH 9,269,875 7,088,375 442,480
03/24/95-06/22/95 FF 29,448,682 5,558,262 179,649
03/24/95-06/22/95 NZ 3,434,231 2,176,250 (12,480)
03/24/95-06/22/95 SP 498,746,118 3,747,948 140,481
03/24/95-06/22/95 UK 6,658,962 10,467,981 24,108
06/22/94 NK 2,726,600 419,929 4,106
----------- -----------
$92,114,618 $ 2,955,516
=========== -----------
$ 452,437
===========
</TABLE>
CURRENCY LEGEND
AD Australian Dollar
BF Belgian Franc
CD Canadian Dollar
CH Swiss Franc
DK Danish Kroner
DM German Mark
FF French Franc
GD Greek Drachma
IT Italian Lira
JY Japanese Yen
<PAGE>
- --------------------------------------------------------------------------------
MR Malaysian Ringgitt
NG Netherlands Guilder
NK Norwegian Kroner
NZ New Zealand Dollar
SK Swedish Krona
SP Spanish Peseta
UK British Pounds Sterling
XE European Currency Unit
6. INVESTMENT TRANSACTIONS
The cost of security purchases and the proceeds from the sale of securities,
other than short-term investments and U.S. government securities, during the
period ended February 28, 1995, were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
(000) (000)
--------- --------
<S> <C> <C>
Core International Equity Portfolio $276,432 $373,505
European Equity Portfolio 40,928 6,690
Pacific Basin Equity Portfolio 37,650 2,061
Emerging Markets Equity Portfolio 4,070 --
International Fixed Income Portfolio 91,156 77,265
</TABLE>
The International Fixed Income Portfolio purchased $4,097,993 and sold
$2,288,382 in U.S. government securities during the period ended February 28,
1995.
For Federal income tax purposes, the cost of securities owned at February 28,
1995 and the net realized gains or losses on securities sold for the period
then ended was not materially different from the amounts reported for financial
reporting purposes. The aggregate gross unrealized appreciation and deprecia-
tion at February 28, 1995 for each portfolio is as follows:
<TABLE>
<CAPTION>
NET
UNREALIZED
APPRECIATED DEPRECIATED APPRECIATION/
SECURITIES SECURITIES (DEPRECIATION)
(000) (000) (000)
------------ ----------- --------------
<S> <C> <C> <C>
Core International Equity Portfolio $18,788 $16,959 $ 1,829
European Equity Portfolio 1,649 1,524 125
Pacific Basin Equity Portfolio 225 4,898 (4,673)
Emerging Markets Equity Portfolio 126 72 54
International Fixed Income Portfolio 1,247 185 1,062
</TABLE>
At February 28, 1995 the following Portfolios had available realized capital
losses to offset future net capital gains through fiscal year 2003.
<TABLE>
<CAPTION>
(000)
-----
<S> <C>
European Equity Portfolio $ 32
Pacific Basin Equity Portfolio 18
International Fixed Income Portfolio 795
</TABLE>
<PAGE>
NOTICE TO SHAREHOLDERS
- --------------------------------------------------------------------------------
February 28, 1995 (Unaudited)
For shareholders that do not have a February 28, 1995 taxable year end, this
notice is for informational purposes only. For shareholders with a February 28,
1995 taxable year end, please consult your tax advisor as to the pertinence of
this notice.
For the fiscal year ended February 28, 1995 the Portfolios of the SEI Interna-
tional Trust are designating long term capital gains and qualifying dividend
income with regard to distributions paid during the year as follows:
<TABLE>
<CAPTION>
(A) (B)
LONG TERM ORDINARY
CAPITAL GAINS INCOME TOTAL
DISTRIBUTIONS DISTRIBUTIONS DISTRIBUTIONS
PORTFOLIO (TAX BASIS) (TAX BASIS) (TAX BASIS)
- --------- ------------- ------------- -------------
<S> <C> <C> <C>
Core International Equity 100% 0% 100%
European Equity 0% 100% 100%
Pacific Basin Equity 0% 0% 0%
Emerging Markets Equity 0% 0% 0%
International Fixed Income 0% 100% 100%
<CAPTION>
(C) (D) (E)
QUALIFYING TAX-EXEMPT FOREIGN
PORTFOLIO DIVIDENDS(1) INTEREST TAX CREDIT
- --------- ------------- ------------- -------------
<S> <C> <C> <C>
Core International Equity 0% 0% 0%
European Equity 0% 0% 28%
Pacific Basin Equity 0% 0% 0%
Emerging Markets Equity 0% 0% 0%
International Fixed Income 0% 0% 0%
</TABLE>
(1) Qualifying dividends represent dividends which qualify for the corporate
dividends received deduction.
* Items (A) and (B) are based on the percentage of each fund's total distribu-
tion.
** Item (C) is based on the percentage of ordinary income of each fund.
*** Item (D) is based on the percentage of gross income of each fund.
<PAGE>
Schedule of Investments SEI International Trust
May 17, 1995
<TABLE>
<CAPTION>
Unaudited
Market
Value
EMERGING MARKETS EQUITY PORTFOLIO Shares (000)
- ------------------------------------------------------------------------------
Foreign Common Stock (86.0%)
- ------------------------------------------------------------------------------
<S> <C> <C>
Argentina (4.9%)
Central Costanera ............................ 34,200 $ 105
IRSA GDR* .................................... 1,700 41
IRSA* ........................................ 29,700 72
Perez Companc ................................ 73,916 341
Total Argentina ........................................... 559
Brazil (2.5%)
Aracruz Celulose ADR ......................... 10,100 114
Telebras ADR ................................. 4,700 169
Total Brazil .............................................. 283
Chile (2.0%)
AFP Provida ADR* ............................. 2,100 51
Chilgener ADR ................................ 3,600 103
Madeco ADR ................................... 1,300 36
Vina Concha Y Toro ADR ....................... 2,000 41
Total Chile ............................................... 231
China (0.3%)
Huaneng Power ADR* ........................... 2,000 36
Total China ............................................... 36
Columbia (1.5%)
Banco de Columbia GDS ........................ 25,800 175
Total Columbia ............................................ 175
Greece (2.1%)
Aegek ........................................ 2,800 61
Aluminum of Greece* .......................... 1,600 67
Ergo Bank .................................... 670 31
Hellenic Bottling ............................ 2,725 78
Total Greece .............................................. 237
Hong Kong (2.9%)
CDL Hotels International ..................... 116,000 55
Guang Dong Investment ........................ 76,000 38
Guangzhou Investment ......................... 130,000 23
HSBC Holdings ................................ 2,500 31
Johnson Electric Holdings .................... 13,000 29
MC Packaging ................................. 70,000 28
Shangri-La Asia .............................. 26,000 30
Sinocan Holdings ............................. 110,000 27
Siu-Fung Ceramics ............................ 160,000 25
Tian An China ................................ 142,000 22
Yue Yuen Industrial Holdings ................. 104,000 25
Total Hong Kong ........................................... 333
</TABLE>
<PAGE>
Schedule of Investments SEI International Trust
May 17, 1995
<TABLE>
<CAPTION>
Unaudited
Market
Value
EMERGING MARKETS EQUITY PORTFOLIO Shares (000)
- ------------------------------------------------------------------------------
<S> <C> <C>
India (2.7%)
India Fund .............................. 4,400 $ 52
India Growth Fund ....................... 6,300 121
India Investment Fund ................... 9,500 105
Indian Hotels GDR* ...................... 1,800 31
Total India ............................................... 309
Indonesia (4.8%)
Asia Pacific Resource ADR* .............. 4,400 36
Astra "F" ............................... 48,500 85
Bank Bali "F" ........................... 14,500 29
Bank International Indonesia ............ 11,000 31
Dankos Labs "F" ......................... 9,000 42
Indo-Rama "F" ........................... 15,000 46
Indonesian Satellite ADR* ............... 1,900 73
Indorayon "F" ........................... 27,000 62
Semen Gresik "F" ........................ 17,000 84
Tjiwi Kimia ............................. 10,000 18
United Tractors "F" ..................... 23,000 43
Total Indonesia ........................................... 549
Israel (0.9%)
ECI Telecommunications ADR .............. 5,800 99
Total Israel .............................................. 99
Korea (1.6%)
Kepco ADR* .............................. 2,050 47
Korea Equity Fund ....................... 3,400 29
Korea Fund .............................. 2,400 53
Korea Investment Fund ................... 4,600 56
Total Korea ............................................... 185
Malaysia (26.7%)
Arab Malaysian .......................... 53,000 180
Arab Malaysian Finance .................. 23,000 79
Arab Malaysian Merchant Bank ............ 39,000 466
DCB Holdings ............................ 67,000 191
Genting Berhad .......................... 15,000 158
Hong Leong Credit ....................... 45,000 204
IJM Corp Berhad ......................... 77,000 290
Industrial Oxygen ....................... 116,000 150
Kian Joo Can Factory .................... 33,000 119
Leader Universal Holdings ............... 79,000 294
Resorts World Berhad .................... 44,000 263
Tanjong ................................. 31,000 101
Telekom Malaysia ........................ 10,000 72
United Engineers ........................ 161,000 518
Total Malaysia ............................................ 3,085
</TABLE>
<PAGE>
Schedule of Investments SEI International Trust
May 17, 1995
<TABLE>
<CAPTION>
Unaudited
Market
Value
EMERGING MARKETS EQUITY PORTFOLIO Shares (000)
- ------------------------------------------------------------------------------
<S> <C> <C>
Mexico (4.9%)
Penoles* ................................ 95,000 $ 264
Telefonos de Mexico ADR ................. 9,700 301
Total Mexico .............................................. 565
Peru (2.8%)
Banco de Credito Del Peru* .............. 63,200 137
Southern Peru Copper* ................... 22,600 100
Telefonos Peru "A"* ..................... 52,500 80
Total Peru ................................................ 317
Philippines (5.3%)
Aboitiz Equity Ventures* ................ 315,600 63
Ayala "B" ............................... 24,800 38
Bacnotan Cement* ........................ 86,800 110
Benpres Holdings GDS* ................... 5,900 46
Keppel Phil "B" ......................... 87,000 46
La Tondena Distillers ................... 46,000 60
Manila Mining "B" ....................... 13,900,000 54
Petron .................................. 42,000 33
Philippine Long Distance ................ 620 44
Philippine Long Distance ADR ............ 1,650 115
Total Philippines ......................................... 609
Portugal (1.6%)
Capital Portugal* ....................... 540 48
Cimpor Rights* .......................... 2,000 6
Empresa Fabril* ......................... 3,900 47
Sonae Investimentos ..................... 1,900 46
Soporcel* ............................... 1,550 43
Total Portugal ............................................ 190
Singapore (1.0%)
United Overseas Bank .................... 10,800 110
Total Singapore ........................................... 110
South Africa (8.2%)
Anglo American .......................... 3,580 197
Barlow .................................. 7,100 74
Iscor ................................... 121,800 153
Liberty Life ............................ 5,500 152
South African Breweries ................. 5,500 160
Standard Bank ........................... 5,570 211
Total South Africa ........................................ 947
South Korea (0.4%)
Pohang Iron & Steel ADR ................. 1,600 48
Total South Korea ......................................... 48
</TABLE>
<PAGE>
Schedule of Investments SEI International Trust
May 17, 1995
<TABLE>
<CAPTION>
Unaudited
Market
Value
EMERGING MARKETS EQUITY PORTFOLIO Shares (000)
- ------------------------------------------------------------------------------
<S> <C> <C>
Taiwan (1.0%)
Taiwan Equity Fund ...................... 5,200 $ 60
Taiwan(ROC)Fund* ........................ 5,100 58
Total Taiwan .............................................. 118
Thailand (3.9%)
Ban Pu Coal ............................. 2,400 51
Bangkok Bank "F" ........................ 5,100 56
Electricity Generating* ................. 25,700 74
Land and House "F" ...................... 2,100 40
Regional Container "F" .................. 2,000 32
Siam Cement "F" ......................... 1,100 68
Thai Farmers Bank "F" ................... 8,100 74
United Communications ................... 1,900 28
Wongpaitoon Footwear "F"* ............... 17,000 27
Total Thailand ............................................ 450
Turkey (2.7%)
Cimentas* ............................... 32,000 25
Ege Biracilik ........................... 63,000 70
KOC Holdings ............................ 40,000 35
Tat Konserve ............................ 48,600 94
Tofas-Turk Otomobil ..................... 100,600 83
Total Turkey .............................................. 307
Venezuela (1.3%)
Quimica Y Minera ADR .................... 1,000 40
Sivensa ADR ............................. 71,100 112
Total Venezuela ........................................... 152
- ------------------------------------------------------------------------------
Total Foreign Common Stock
(Cost $9,185[000]) ..................................... 9,894
- ------------------------------------------------------------------------------
Foreign Preferred Stocks (9.2%)
- ------------------------------------------------------------------------------
Brazil (9.2%)
Cie Vale Do Rio Doce .................... 844,000 155
Cimento Itau* ........................... 170,000 60
Copene Petroquimica Nord "A" ............ 44,000 36
Coteminas ............................... 140,000 48
Eletrobras "B" .......................... 915,000 279
Gradiente Electronics "A" ............... 207,000 28
Lojas Renner ............................ 2,100,000 38
Petrobras ............................... 1,150,000 114
Petrobras Distribuidora ................. 1,530,000 57
Randon Participacoes .................... 23,000,000 34
Sadia Concordia* ........................ 40,000 43
</TABLE>
<PAGE>
Schedule of Investments SEI International Trust
May 17, 1995
<TABLE>
<CAPTION>
Unaudited
Market
Value
EMERGING MARKETS EQUITY PORTFOLIO Shares (000)
- ------------------------------------------------------------------------------
<S> <C> <C>
Usiminas Gerais ......................... 137,000,000 $ 173
Total Brazil .............................................. 1,065
- ------------------------------------------------------------------------------
Total Foreign Preferred Stocks
(Cost $935[000]) ....................................... 1,065
- ------------------------------------------------------------------------------
<CAPTION>
Face Market
Amount Value
(000) (000)
- ------------------------------------------------------------------------------
<S> <C> <C>
Convertible Bonds (0.9%)
- ------------------------------------------------------------------------------
South Africa (0.6%)
Barlow
7.000%, 09/20/04 .................... $ 65 78
Total South Africa ........................................ 78
Thailand (0.3%)
Bangkok Bank
3.250%, 03/03/04 .................... 30 30
Total Thailand ............................................ 30
- ------------------------------------------------------------------------------
Total Convertible Bonds
(Cost $105[000]) ....................................... 108
- ------------------------------------------------------------------------------
Repurchase Agreement (14.0%)
- ------------------------------------------------------------------------------
State Street Bank
5.00%, dated 5/17/95, matures 5/18/95,
repurchase price $1,618,000
(collateralized by U.S. Treasury Note,
par value $1,570,000, 9.25%, matures
1/15/96: market value $1,648,000) ..... 1,618 1,618
- ------------------------------------------------------------------------------
Total Repurchase Agreement
(Cost $1,618[000]) ..................................... 1,618
- ------------------------------------------------------------------------------
Total Investments (110.1% of Net Assets)
(Cost $11,843[000]) .................................... $ 12,685
- ------------------------------------------------------------------------------
</TABLE>
* Non-income producing security
ADR - American Depository Receipt
GDR - Global Depository Receipt
GDS - Global Depository Share
<PAGE>
Schedule of Investements SEI International Trust
May 17, 1995
<TABLE>
<CAPTION>
Unaudited
Face Market
Amount Value
EMERGING MARKETS EQUITY PORTFOLIO (000) (000)
- --------------------------------------------------------------------------------
<S> <C> <C>
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
Emerging Markets Equity Portfolio SEI International Trust
Statement of Assets and Liabilities (000) Unaudited
May 17, 1995
<TABLE>
<S> <C>
Assets:
Investments securities (Cost $11,843) $ 12,685
Investment securities sold 543
Capital shares sold 211
Other assets 22
-------------
Total Assets 13,461
-------------
Liabilities:
Investment securities purchased 1,911
Other liabilities 31
-------------
Total Liabilities 1,942
-------------
Net Assets $ 11,519
=============
Net Assets:
Portfolio shares of Class A (unlimited
authorization - no par value) based on 1,036,755
outstanding shares of beneficial interest 10,593
Accumulated net realized gain on investments 90
Accumulated net realized loss on foreign currency
transactions (28)
Net unrealized depreciation on forward foreign
currency contracts, foreign currencies and
translation of other assets and liabilities
denominated in foreign currencies (2)
Net unrealized appreciation on investments 842
Undistributed net investment income 24
-------------
Net Assets $ 11,519
=============
Net asset value, offering and redemption price
per share - Class A $ 11.11
=============
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
Emerging Markets Equity Portfolio SEI International Trust
Statement of Operations (000) Unaudited
<TABLE>
<CAPTION>
January 17, 1995*
Through
May 17, 1995
----------------
<S> <C>
Investment Income:
Dividends $ 27
Interest 41
Less: Foreign taxes withheld (4)
----------------
Total Investment Income 64
----------------
Expenses:
Management Fees 13
Less management fees waived (13)
Reimbursement by manager (15)
Investment advisory fees 22
Custodian / wire agent fee 18
Professional fees 1
Registration & filing fees 4
Pricing fees 5
Distribution fees 3
Miscellaneous fees 2
----------------
Total Expenses 40
----------------
Net Investment Income 24
----------------
Realized and Unrealized Gain (Loss) on Investments and
Foreign Currency Transactions:
Net realized gain from security
transactions 90
Net realized loss on forward foreign
currency contracts and foreign currency
transactions (28)
Net change in unrealized depreciation
on forward foreign currency contracts, foreign
currencies and translation of other assets and
liabilities denominated in foreign currencies (2)
Net change in unrealized appreciation on investments 842
----------------
Net Increase in Net Assets from
Operations $ 926
================
</TABLE>
* Commencement of operations
The accompanying notes are an integral part of the financial statements.
<PAGE>
Emerging Markets Equity Portfolio SEI International Trust
Statement of Changes in Net Assets (000) Unaudited
<TABLE>
<CAPTION>
January 17, 1995*
Through
May 17, 1995
-----------------
<S> <C>
Operations:
Net investment income $ 24
Net realized gain from security transactions 90
Net realized loss on forward foreign currency
contracts and foreign currency transactions (28)
Net change in unrealized depreciation on
forward foreign currency contracts, foreign
currencies and translation of other assets and
liabilities denominated in foreign currencies (2)
Net change in unrealized appreciation on
investments 842
---------
Net increase in net assets from operations 926
---------
Capital Shares Transactions:
Class A:
Proceeds from shares issued 10,777
Shares issued in lieu of cash distributions -
Cost of shares repurchased (184)
---------
Increase in Net Assets Derived from
Capital Share Transactions 10,593
---------
Total increase in net assets 11,519
Net Assets:
Beginning of period -
---------
End of period $ 11,519
=========
Capital Share Transactions:
Class A:
Shares issued 1,054
Shares issued in lieu of cash distributions -
Shares repurchased (17)
---------
Net increase in capital shares 1,037
=========
</TABLE>
* Commencement of operations
The accompanying notes are an integral part of the financial statements.
<PAGE>
Emerging Markets Equity Portfolio SEI International Trust
Financial Highlights Unaudited
For the period January 17, 1995 through May 17, 1995
<TABLE>
<CAPTION>
For a Share Outstanding Throughout each Period
Net Asset Distributions Distributions
Value Net Net Realized from Net from Net Asset
Beginning Investment and Unrealized Investment Realized Capital Value End Total
of Period Income Gain Income Gains of Period Return
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Emerging Markets Equity Portfolio
- ---------------------------------
Class A
1995* $10.00 $0.02 $1.09 - - $11.11 11.10%
<CAPTION>
Ratio of
Ratio of Net Investment
Ratio of Expenses Income(Loss)
Ratio of Net Investment to Average to Average
Net Assets Expenses Income Net Assets Net Assets Portfolio
End of to Average to Average (Excluding (Excluding Turnover
Period(000) Net Assets Net Assets Waivers) Waivers) Rate
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Emerging Markets Equity Portfolio
- ---------------------------------
Class A
1995* $ 11,519 1.95% 1.17% 3.30% (0.18)% 60%
</TABLE>
* Shares were offered beginning January 17, 1995. All ratios for that period
have been annualized.
The accompanying notes are an integral part of the financial statements.
<PAGE>
Emerging Markets Equity Portfolio SEI International Trust
Notes to Financial Statements Unaudited
May 17, 1995
1. Organization:
SEI International Trust, (the "Trust") was organized as a Massachusetts business
trust under a Declaration of Trust dated June 30, 1988. The operations of the
Trust commenced on December 20, 1989.
2. Significant Accounting Policies:
The Trust is registered under the Investment Company Act of 1940, as amended, as
an open-end management investment company with five portfolios: the Core
International Equity Portfolio (formerly the International Equity Portfolio),
the European Equity Portfolio, the Pacific Basin Equity Portfolio, the Emerging
Markets Equity Portfolio and the International Fixed Income Portfolio (together
the "Portfolios"). These financial statements relate to the Emerging Markets
Equity Portfolio (the "Portfolio") which commenced operations on January 17,
1995.
The following is a summary of significant accounting policies followed by the
Portfolio.
Security Valuation - Investment securities which are listed on a securities
exchange for which market quotations are readily available are valued by an
independent pricing service at the last quoted sales price for such securities,
or if there is no such reported sale on the valuation date, at the most recent
quoted bid price. Unlisted securities for which market quotations are readily
available are valued at the most recent quoted bid price. Short-term investments
may be valued at amortized cost which approximates market value.
Net Asset Value Per Share - The net asset value per share of the Portfolio is
calculated on each business day. It is computed by dividing the assets of the
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 custodian bank until maturity of the repurchase
agreements. Provisions of the repurchase agreements and procedures adopted by
the Trust require that the market value of the collateral, including accrued
interest thereon, is sufficient in the event of default by the counterparty.
The Portfolio may also invest in tri-party repurchase agreements. Securities
held as collateral for tri-party repurchase agreements are maintained in a
segregate account by the broker's custodian bank until maturity of the
repurchase agreement. Provisions of the agreements require that the market
value of the collateral, including accrued interest thereon, is sufficient in
the event of default by the counterparty of the Portfolio.
If the counterparty defaults and the value of the collateral declines or if
the counterparty enters an insolvency proceeding, realization of the collateral
by the Portfolio may be delayed or limited.
Foreign Currency Translation - The books and records of the Portfolio are
maintained in U.S. dollars. Foreign currency amounts are translated into U.S.
dollars on the following basis:
(I) market value of investment securities, other assets and liabilities at
the current rate of exchange; and
(II) purchases and sales of investment securities, income and expenses at
the relevant rates of exchange prevailing on the respective dates of
such transactions.
The Portfolio does not isolate that portion of gains and losses on investment
securities which is due to changes in the foreign exchange rates from that which
is due to changes in market prices of equity securities.
The Portfolio reports gains and losses on foreign currency related
transactions as realized and unrealized gains and losses for financial reporting
purposes, whereas such gains and losses are treated as ordinary income or loss
for Federal income tax purposes.
<PAGE>
Emerging Markets Equity Portfolio SEI International Trust
Notes to Financial Statements (Continued) Unaudited
May 17, 1995
Other - Security transactions are accounted for on the trade date of the
security purchase or sale. Costs used in determining net realized capital gains
and losses on the sale of investments securities are those of the specific
securities sold. Purchase discounts and premiums on securities held by the
Portfolio are accreted and amortized to maturity using the scientific interest
method, which approximates the effective interest method. Distributions from
net investment income and any net realized capital gains are generally made to
Shareholders annually. Dividend income is recognized on the ex-dividend date
and interest income is recognized using the accrual method.
Federal Income Taxes - It is the intention of the Portfolio to qualify as a
regulated investment company for Federal income tax purposes and to distribute
all of its taxable income and net capital gains. Accordingly, no provision for
Federal income taxes is required in the accompanying statements.
3. Management, Investment Advisory and Distribution Agreements:
SEI Financial Management Corporation (the "Manager"), a wholly owned subsidiary
of SEI Corporation, and the Trust are parties to a management agreement dated
August 30, 1988, under which the Manager provides management, administrative and
shareholder services to the Fund for an annual fee equal to .65% of the daily
net assets of the Portfolio. The manager has agreed to waive all or a portion
of its fees in order to limit the operating expenses of the Portfolio to 1.95%
of its average daily net assets.
SEI Financial Management Corporation (SFM), the advisor for the Portfolio, is
a party to an investment advisory agreement dated December 16, 1994. Under the
Investment Advisory Agreement, SFM receives an annual fee of 1.05% of the daily
net assets of the Portfolio. Pursuant to a Sub-Advisory Agreement with SFM,
Montgomery Asset Management, L.P. serves as Sub-Advisor to the Portfolio.
SEI Financial Service Company (the "Distributor"), a wholly owned subsidiary
of the 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 distributions. Such expenses may not
exceed .30% of the daily average net assets of the Portfolio. 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 daily net assets.
Certain Officers and/or Trustees of the Trust are also Officers and/or
Directors of the Manager. Compensation of Officers and affiliated Trustees is
paid by the manager.
4. Organization Costs:
Organizational costs have been capitalized by the Portfolio and are being
amortized using the straight line method over sixty months commencing with
operations. In the event any of the initial shares of the Portfolio acquired by
the Manager are redeemed during the period that the Portfolio is amortizing its
organizational costs, the redemption proceeds payable to the Manager by the
Portfolio will be reduced by an amount equal to a pro rata portion of the
unamortized organizational costs.
<PAGE>
Emerging Markets Equity Portfolio SEI International Trust
Notes to Financial Statements (Concluded) Unaudited
May 17, 1995
5. Investment Transactions:
The cost of security purchases and the proceeds from the sale of securities,
other than short-term investments and U.S. government securities, during the
period ended May 17, 1995, were as follows:
<TABLE>
<CAPTION>
Purchases Sales
(000) (000)
----- -----
<S> <C> <C>
Emerging Markets Equity Portfolio $ 13,612 $ 3,478
</TABLE>
For Federal income tax purposes, the cost of securities owned at May 17, 1995
and the net realized gains or losses on securities sold for the period then
ended was not materially different from the amounts reported for financial
reporting purposes. The aggregate gross unrealized appreciation and
depreciation at May 17, 1995 for the Portfolio is as follows:
<TABLE>
<CAPTION>
Net
Appreciated Depreciated Unrealized
Securities Securities Appreciation
(000) (000) (000)
---------- ----------- ------------
<S> <C> <C> <C>
Emerging Markets Equity Portfolio $ 917 $( 75) $ 842
</TABLE>
