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SEI INTERNATIONAL TRUST
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ANNUAL REPORT
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FEBRUARY 29, 1996
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TABLE OF CONTENTS
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REPORT OF INDEPENDENT ACCOUNTANTS.................................... 2
REVIEW OF NON-U.S. EQUITY MARKETS.................................... 3
REVIEW OF NON-U.S. BOND MARKETS...................................... 4
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FUND PERFORMANCE
INTERNATIONAL EQUITY........................................... 5
EUROPEAN EQUITY................................................ 7
PACIFIC BASIN EQUITY........................................... 8
EMERGING MARKETS EQUITY........................................ 9
INTERNATIONAL FIXED INCOME..................................... 11
STATEMENT OF NET ASSETS/SCHEDULE OF INVESTMENTS...................... 13
STATEMENT OF ASSETS AND LIABILITIES.................................. 28
STATEMENT OF OPERATIONS.............................................. 29
STATEMENT OF CHANGES IN NET ASSETS................................... 30
FINANCIAL HIGHLIGHTS................................................. 31
NOTES TO FINANCIAL STATEMENTS........................................ 32
SHAREHOLDER VOTING RESULTS........................................... 37
NOTICE TO SHAREHOLDERS............................................... 39
1
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REPORT OF INDEPENDENT ACCOUNTANTS
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FEBRUARY 29, 1996
To the Shareholders and Board of Trustees
SEI International Trust
In our opinion, the accompanying statements of net assets and where applicable,
the schedule of investments and statement 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 International Equity, European Equity, Pacific Basin Equity, Emerging
Markets Equity and International Fixed Income Portfolios of SEI International
Trust (the "Fund") at February 29, 1996, the results of each of their
operations, 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 financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require 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 disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at February 29, 1996 by
correspondence with the custodians and brokers and the application of
alternative auditing procedures where confirmations from brokers were not
received, provide a reasonable basis for the opinion expressed above.
PRICE WATERHOUSE LLP
Philadelphia, PA
April 10, 1996
2
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REVIEW OF NON-U.S. EQUITY MARKETS
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SEI INTERNATIONAL TRUST -- FEBRUARY 29, 1996
INTERNATIONAL EQUITY MARKET OVERVIEW
Non-U.S. equity markets posted respectable gains for the twelve months
ended February 29, 1996 with the Morgan Stanley Capital International Europe,
Australia, Far East (EAFE) Index gaining 16.9% and the International Finance
Corporation's Investable Composite (IFC) Index gaining 13.4%. While these
returns pale when compared with the performance of the U.S. stock market over
the last twelve months, they are significantly better than expected a year ago.
At the start of the Trust's fiscal year, Japan, the largest non-U.S.
market, was recovering from a devastating earthquake and the psychological shock
from a series of nerve gas attacks on population centers. Coupled with the
pressure on businesses from the persistently strong yen, many investors
anticipated a bleak year for Japanese equities. Across Europe, intractable
budget deficits in countries as diverse as Italy, Spain and Sweden were putting
pressure on bond yields and creating a wariness among equity buyers. The
emerging markets, were feeling the "Tequila Effect" after Mexico's decision in
December of 1994 to devalue the peso. Their confidence badly shaken, many
investors turned to the U.S., which served to only drain more money away from
foreign markets and exacerbate the dismal performance.
Slowly, however, sentiment seemed to change on non-U.S. markets. In
London, a buoyant takeover market was pushing prices higher and investors
anticipated the next consolidations. Interest rates in core-European markets
such as Germany and Switzerland were coming down to stimulate sluggish economies
and to deflate strong currencies. In Japan, after reaching bottom at
approximately (YEN)80 to the dollar in the Spring, the yen fell sharply in early
August under the weight of concerted central bank intervention while the
emerging markets recovered as interest rates in the United States fell and
liquidity returned to the markets.
The current environment poses some questions for international markets.
The health of the Japanese recovery remains a central question on the mind of
investors. While structural impediments to recovery have been lifted (the strong
yen and the health of the banking sector) the pace to date has been muted and
the recovery has been at best fragile. Europe appears in a temporary slowdown,
but the requirements of monetary union run the risk of snuffing out any
sustainable growth. While governments in the emerging markets have faced a
difficult year and gave all appearances of remaining committed to free-markets
and shareholder ownership structures challenges remain. Despite all of the
questions, international markets remain attractively valued versus the U.S.
markets and on-balance appeared poised for a period of relative strength.
3
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REVIEW OF NON-U.S. BOND MARKETS
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SEI INTERNATIONAL TRUST -- FEBRUARY 29, 1996
INTERNATIONAL FIXED INCOME MARKET REVIEW
Non-U.S. bond markets rallied strongly over the twelve month period ended
February 29, 1996. Initially, driven higher by the dramatic surge of U.S. bond
prices, non-U.S. bonds were lifted by weak economic data worldwide, which
created expectations of modest growth and low inflation globally. While the U.S.
component of the Salomon Brothers Government Bond Indices rose 12.14%, most
non-U.S. bond markets posted stronger returns.
The Japanese bond market experienced a volatile year, rising sharply in
the Spring of 1995 as the Bank of Japan began lowering short-term interest rates
to support the ailing financial sector. Japanese economic data, suggesting
recessionary conditions and deflationary price trends also served to boost the
market in the Spring. However, the Japanese bond market turned lower in the
second half of 1995 as economic data showed some resurgence of growth, the yen
began to rally, and speculation grew that the Bank of Japan would not maintain
low short-term rates much longer. The yen began the period at (YEN)96.7 to the
dollar, rose as far as (YEN)79.45 to the dollar, and then fell back to
(YEN)105.3 to the dollar as of February 29, 1996. Concerns over the U.S.
government's aid package for Mexico, the direction of U.S. short-term interest
rates, and the persistent U.S. trade deficits were among the driving factors
behind the dollar's fall. The Japanese bond market returned 9.62% in local
terms, but only 0.82% in U.S. dollar terms.
European markets posted superior returns over the period, with all markets
except the United Kingdom exceeding the return of the U.S. market. The
Bundesbank began lowering short-term interest rates in the second half of 1995
as inflation and monetary growth were reported below the central bank's targets.
Like the yen, although not as dramatic, the European currencies surged in the
Spring of 1995 before retreating to the levels which existed at the beginning of
the period.
[GRAPHIC OMITTED]
A line graph depicting the comparative yields to maturity of 10-year government
bonds. The plot points are as follows:
UNITED STATES JAPAN UNITED KINGDOM GERMANY
2/95 7.20 4.34 8.606 7.362
3/95 7.20 3.58 8.498 7.189
4/95 7.05 3.39 8.430 7.039
5/95 6.28 2.74 7.911 6.647
6/95 6.20 2.68 8.450 6.940
7/95 6.43 2.83 8.204 6.785
8/95 6.28 3.31 8.080 6.715
9/95 6.18 2.85 8.119 6.603
10/95 6.02 2.94 7.929 6.440
11/95 5.74 2.86 7.538 6.169
12/95 5.57 3.05 7.415 6.031
1/96 5.58 3.15 7.494 5.896
2/96 6.10 3.37 7.996 6.388
SOURCE OF YIELDS: THE BLOOMBERG, L.P.
4
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MANAGEMENT'S DISCUSSION AND ANALYSIS OF FUND PERFORMANCE
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SEI INTERNATIONAL TRUST -- FEBRUARY 29, 1996
INTERNATIONAL EQUITY PORTFOLIO
OBJECTIVES. The International Equity Portfolio (formerly, the Core
International Equity Portfolio) seeks to provide long-term capital appreciation
through investments in equity securities of non-U.S. issuers. The Portfolio also
seeks to provide U.S. investors with a vehicle for international
diversification, which can reduce the variability of Portfolio returns to the
extent that foreign markets have a relatively low correlation with the U.S.
market.
STRATEGY. The Portfolio's strategy follows a multi-manager structure in
order to reduce manager-specific risks and to better meet fund objectives. The
best way to meet Portfolio objectives was to combine a risk-controlled, highly
benchmark-sensitive manager with a manager that is willing to accept much
greater fund divergence. The benchmark-sensitive manager follows a
quantitatively-based country allocation process with stock selection focusing on
large cap value securities. Country deviation from the benchmark and overall
positioning of the Portfolio are tightly risk-controlled. Active currency
management is minimal. The active manager uses a top-down approach to investing
that can result in measured deviations away from the benchmark. Security
selection focuses on value criteria. Currency management is most typically
demonstrated at the country allocation level.
ANALYSIS. International Equity Portfolio returned 17.3% for the year ended
February 29, 1996, outperforming the Morgan Stanley MSCI EAFE Index's return of
16.9%. Specific stock and industry selection decisions drove the portfolio's
relative returns. In particular, favorable commitments to banking and financial
service stocks in a number of markets enhanced results as interest rates
declined on a global basis over the period. As well, our strategy in the
Japanese market also contributed to results.
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INTERNATIONAL EQUITY
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AVERAGE ANNUAL TOTAL RETURN1
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One Annualized Annualized Annualized
Year 3 Year 5 Year Inception
Return Return Return to Date
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Class A 17.30% 10.46% 6.26% 4.44%
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Class D 16.77% 10.18% 6.10% 5.13%
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Class D, w/load 10.97% 8.31% 5.02% 2.21%
- -------------------------------------------------------------
COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN THE INTERNATIONAL
EQUITY, CLASS A, OR THE INTERNATIONAL EQUITY, CLASS D, VERSUS THE MORGAN STANLEY
MSCI EAFE INDEX
[GRAPHIC OMITTED]
A line graph depicting the total growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 in the SEI International
Equity Portfolio Class A and the SEI International Equity Portfolio Class D from
December 31, 1989 through February 29, 1996 as compared with the growth of a
$10,000 investment in the Morgan Stanley MSCI EAFE Index. The plot points used
to draw the line graph were as follows:
Growth of Growth of Growth of
$10,000 $10,000 $10,000
Invested Invested Invested in
Measurement Period in Class A Class D the Morgan Stanley
(Fiscal Year Covered) Shares Shares MSCI EAFE Index
12/31/89 $10,000 $9,500 $10,000
2/28/90 9,573 9,094 8,957
2/28/91 9,607 9,127 8,751
2/29/92 9,451 8,978 8,101
2/28/93 9,656 9,173 7,766
2/28/94 12,016 11,415 10,809
2/28/95 11,094 10,507 10,329
2/29/96 13,013 12,270 12,059
1 FOR THE PERIOD ENDED FEBRUARY 29, 1996. PAST PERFORMANCE IS NO INDICATION OF
FUTURE PERFORMANCE. CLASS D SHARES WERE OFFERED BEGINNING ON MAY 1, 1994.
THE PERFORMANCE SHOWN FOR THE CLASS D SHARES PRIOR TO SUCH DATE IS BASED ON
THE PERFORMANCE OF CLASS A SHARES ADJUSTED TO REFLECT THE MAXIMUM SALES
CHARGE OF 5.0% FOR THE CLASS D SHARES. CLASS A SHARES WERE OFFERED BEGINNING
DECEMBER 30, 1989.
Overweights to the banking sector in Australia and Hong Kong made a
significant contribution to results as the sector led returns in both markets.
Australia and New Zealand Bank Group as well as HSBC Holdings (a Hong Kong
banking group) were also among the best performing stocks in the Portfolio over
the past year.
5
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MANAGEMENT'S DISCUSSION AND ANALYSIS OF FUND PERFORMANCE
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SEI INTERNATIONAL TRUST -- FEBRUARY 29, 1996
INTERNATIONAL EQUITY (CONTINUED)
[GRAPHIC OMITTED]
A line graph depicting the Currency Values of U.S. Dollars versus Major World
Currencies for the fiscal year ending February 29, 1996. The plot points are as
follows:
Dollar/Yen Dollar/Pound Dollar/Mark
March 1995 0.1044 0.0240 0.0609
April 1995 0.1293 (0.0179) 0.0523
May 1995 0.1254 0.0028 0.0315
June 1995 0.1246 (0.0069) 0.0550
July 1995 0.0855 0.0081 0.0520
August 1995 (0.0073) (0.0213) (0.0038)
September 1995 (0.0300) 0.0000 0.0239
October 1995 (0.0544) (0.0011) 0.0379
November 1995 (0.0558) (0.0335) 0.0111
December 1995 (0.0692) (0.0193) 0.0175
January 1996 (0.1069) (0.0460) (0.0178)
February 1996 (0.0885) (0.0332) (0.0074)
Our banking strategy also contributed in Japan, however here we were
underweight to the benchmark weight during the year. Japanese banks struggled
during most of the year under the weight of bad loans accumulated in the late
1980's. As noted in the Equity Markets' Overview, Japanese banks periodically
rallied as favorable news was released or anticipated. The group's size in the
Index (21% of Japan weight and 8% of EAFE overall) contributed to Japan's dismal
showing overall during the year. To maintain some exposure to the sizable
Japanese financial service sector, the portfolio emphasized securities' brokers
over direct banking participation. This strategy proved advantageous as brokers
posted sharp gains over the year, rallying off depressed bases with a revival in
trading activity in the market. Daiwa Securities and Nikko Securities were among
the better performing stocks in the portfolio over the past year. Elsewhere in
Japan, an emphasis on dollar-sensitive shares such as electronics manufacturers
contributed to relative returns as the yen depreciated against the dollar.
In December 1995, two enhancements were made that are expected to
strengthen the fund and will focus the fund's strategy on exploiting
opportunities provided by market inefficiencies. First, we eliminated our
commitment to active country-selection portfolio management strategies.
Historically, investment processes that focus on selecting attractive stocks
within markets have produced more favorable results than strategies built around
active shifts in country weights. We also increased our commitment to non-U.S.
small cap shares and introduced a dedicated strategy for investing in this area
of the market. Small cap stocks overseas, as in the U.S., tend to be less widely
followed than blue-chips and offer an opportunity for premium returns for stock
selectors. In addition, small shares are less sensitive to global trends and
offer important diversification benefits to an investor.
PORTFOLIO MARKET ALLOCATIONS
VERSUS MSCI EAFE INDEX
FEBRUARY 29, 1996 FEBRUARY 28, 1995
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PORTFOLIO EAFE PORTFOLIO EAFE
--------- ------ ---------- ------
Australia 4.1% 2.7% 7.0% 4.8%
Belgium 2.0% 1.2% 2.9% 0.8%
Canada 2.6% 0.0% 2.6% 1.1%
France 10.3% 6.4% 10.4% 7.8%
Germany 6.7% 6.7% 4.1% 6.9%
Hong Kong 2.8% 3.3% 2.6% 4.2%
Italy 1.4% 2.2% 2.8% 2.3%
Japan 35.2% 42.2% 30.7% 32.1%
Netherlands 4.1% 3.9% 3.7% 6.0%
New Zealand 0.5% 0.5% 3.0% 0.8%
Spain 3.6% 1.7% 2.5% 2.8%
Sweden 1.0% 1.7% 1.0% 2.5%
Switzerland 3.2% 5.3% 2.5% 4.5%
United Kingdom 12.0% 16.5% 17.5% 14.9%
All Other 5.0% 5.7% 5.1% 8.5%
Cash 5.5% 0.0% 1.6% 0.0%
---------- ------ ---------- ------
100.0% 100.0% 100.0% 100.0%
6
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EUROPEAN EQUITY PORTFOLIO
OBJECTIVES. The European Equity Portfolio seeks to provide long-term
capital appreciation by investing primarily in a diversified portfolio of equity
securities of European issuers.
STRATEGY. The adviser utilizes a "bottom-up" stock driven approach to
managing the Portfolio. A country overlay is placed upon the firm's fundamental
stock research to derive the final portfolio construction which is typically
invested in 90 growth stocks across 12 markets. Additionally, the Portfolio will
have a medium to small capitalization bias.
ANALYSIS. The European Equity Portfolio returned 25.2% for the twelve
months ended February 29, 1996. In comparison, the MSCI Europe Index managed a
gain of 22.8%. Stock selection in a handful of markets contributed to relative
results.
As noted in the Equity Markets' Overview, economic growth across Europe
slowed during 1995, prompting the region's central banks to make a series of
rate cuts in an attempt to revive the pace of expansion. In this environment,
less economically-sensitive shares and growth stocks (companies that produce
stable earnings' gains irrespective of the macroeconomic environment)
flourished. The Portfolio, with its growth focus, was positioned to benefit from
this environment.
In Germany, our holding in SAP, a software development company, produced a
substantial gain and was among the portfolio's leading contributors. As well,
managed health-care provider Rhon-Klinikum rallied sharply during the year.
Health care stocks also drove results in the United Kingdom where the sector
entered a period of consolidation and merger. Our holdings in Smithkline Beecham
and Glaxo allowed us to participate in this trend. With the British economy past
its peak, our holdings emphasized recreational, leisure and other "late-cycle"
shares. Our holdings in British Sky Broadcasting (television services) and
Granada Group (production company) provided a boost to the portfolio.
Elsewhere in Europe, our position in Gas Natural of Spain was a prime
beneficiary of the government's plan to build the energy infrastructure of the
country's rural areas, while in Austria, steel mill designer V.A. Technologie
saw increased demand for its services in areas of eastern Europe.
Looking ahead, the Portfolio is positioned for a continuation of the
low-inflation, low-growth environment of the past year. In this environment,
investors are likely to place a premium on companies that produce earnings'
gains, endorsing the growth-bias of the portfolio.
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EUROPEAN EQUITY
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AVERAGE ANNUAL TOTAL RETURN1
- ----------------------------------------------------------
One Annualized
Year Inception
Return to Date
- ----------------------------------------------------------
European Equity, Class A 25.15% 12.75%
- ----------------------------------------------------------
COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN THE EUROPEAN
EQUITY, CLASS A, VERSUS THE MORGAN STANLEY MSCI EUROPE INDEX
[GRAPHIC OMITTED]
A line graph depicting the total growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 in the SEI European
Equity Portfolio Class A from April 30, 1994 through February 29, 1996 as
compared with the growth of a $10,000 investment in the Morgan Stanley MSCI
Europe Index. The plot points used to draw the line graph were as follows:
Growth of Growth of
$10,000 $10,000
Invested Invested in
in the SEI Morgan Stanley
Measurement Period European Portfolio MSCI Europe
(Fiscal Year Covered) Class A Index
4/30/94 $10,000 $10,000
2/28/95 9,959 10,118
2/29/96 12,463 12,436
1 FOR THE PERIOD ENDED FEBRUARY 29, 1996. PAST PERFORMANCE IS NO INDICATION OF
FUTURE PERFORMANCE. CLASS A SHARES WERE OFFERED BEGINNING APRIL 29, 1994.
7
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MANAGEMENT'S DISCUSSION AND ANALYSIS OF FUND PERFORMANCE
================================================================================
SEI INTERNATIONAL TRUST -- FEBRUARY 29, 1996
EUROPEAN EQUITY (CONTINUED)
PORTFOLIO MARKET ALLOCATIONS
VERSUS MSCI EUROPE INDEX
FEBRUARY 29, 1996 FEBRUARY 28, 1995
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PORTFOLIO EAFE PORTFOLIO EAFE
---------- -------- ---------- ------
Austria 0.0% 0.0% 0.0% 0.9%
Belgium 1.8% 2.5% 1.3% 2.4%
Denmark 2.0% 1.6% 1.1% 1.7%
Finland 1.0% 1.4% 1.2% 1.2%
France 14.7% 13.0% 9.8% 12.4%
Germany 9.2% 14.0% 9.5% 15.0%
Ireland 0.0% 0.0% 0.0% 0.6%
Italy 3.6% 4.7% 2.7% 4.9%
Netherlands 10.1% 8.1% 5.4% 8.2%
Norway 1.2% 0.9% 1.8% 0.9%
Spain 7.8% 3.5% 6.6% 3.5%
Sweden 6.4% 3.5% 9.7% 3.7%
Switzerland 5.7% 11.1% 7.2% 10.7%
United Kingdom 29.3% 34.3% 35.5% 33.9%
All Other 0.0% 1.4% 0.0% 0.0%
Cash 7.2% 0.0% 8.2% 0.0%
---------- ------ ---------- ------
100.0% 100.0% 100.0% 100.0%
PACIFIC BASIN EQUITY PORTFOLIO
OBJECTIVES. The Pacific Basin Equity Portfolio seeks to provide long-term
capital appreciation by investing primarily in a diversified portfolio of equity
securities of Pacific Basin issuers.
STRATEGY. The adviser adopts a combined "top-down", "bottom-up" approach
to managing the Pacific Basin Equity Portfolio. The Portfolio is typically
invested in 12 markets and in 80 to 100 stocks. Further diversification is
provided by investment in a wide range of capitalization stocks.
ANALYSIS. Launched on April 29, 1994, the Pacific Basin Equity Portfolio
has returned (0.67%) since its inception. During the past twelve months, the
Portfolio outperformed its benchmark, the Morgan Stanley MSCI Pacific Index by
4.46%, returning 15.96% versus 11.50%.
Within Japan, the Portfolio emphasized consumer goods and economically
sensitive issues on the hopes of an economic recovery, as well as exporters in
anticipation of a fall in the value of the yen. Sluggish growth that has
dominated Japan since the economic bubble burst in early 1990 and a persistently
strong yen had undermined these premises. During the first half of 1995,
performance in Japan was hampered by a confluence of specific and unrelated
events beginning January, which led to significant underperformance during the
first half of 1995. On January 17, 1995, the region of Osaka, centered around
the city of Kobe was hit by a devastating earthquake. Over the next few weeks,
construction issues were bid up on the assumption of increased earnings through
the rebuilding of the Osaka region. The Portfolio was underweight in these
issues as, absent the earthquake, fundamentals did not warrant investment. In
addition, the region is a hub for overseas shipping which adversely affected the
Portfolio given its bias toward exporters. Separately, during the last week of
January 1995, Sumitomo Bank announced that it would report a net loss for the
first time since World War II. On the announcement, the banking sector rose just
over ten percent on speculation that the rest of the banking sector would begin
to finally write-off bad loans acquired during the bubble economy years and
reinvigorate the waning Japanese banking market. Banking related issues
represent thirty percent of the Japanese market and, again reflecting an
assessment of weak fundamentals, the Portfolio was significantly underweight.
These events, plus the persistent appreciation of the yen, eventually to just
under (YEN)80/U.S. $ by June of 1995, were the main reasons that the Portfolio
underperformed during the first half of the year.
8
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PACIFIC BASIN EQUITY (CONTINUED)
==========================================================
PACIFIC BASIN EQUITY
==========================================================
AVERAGE ANNUAL TOTAL RETURN1
- ----------------------------------------------------------
One Annualized
Year Inception
Return to Date
- ----------------------------------------------------------
Pacific Basin Equity, Class A 15.96% 0.67%
- ----------------------------------------------------------
COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN THE PACIFIC BASIN
EQUITY, CLASS A, VERSUS THE MORGAN STANLEY MSCI PACIFIC INDEX
[GRAPHIC OMITTED]
A line graph depicting the total growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 in the SEI Pacific Basin
Equity Portfolio Class A from April 30, 1994 through February 29, 1996 as
compared with the growth of a $10,000 investment in the Morgan Stanley MSCI
Pacific Index. The plot points used to draw the line graph were as follows:
Growth of Growth of
$10,000 $10,000
Invested Invested in
in the SEI Pacific Morgan Stanley
Measurement Period Basin Portfolio MSCI Pacific
(Fiscal Year Covered) Class A Index
4/30/94 $10,000 $10,000
2/28/95 8,730 9,137
2/29/96 10,124 10,188
1 FOR THE PERIOD ENDED FEBRUARY 29, 1996. PAST PERFORMANCE IS NO INDICATION OF
FUTURE PERFORMANCE. CLASS A SHARES WERE OFFERED BEGINNING APRIL 29, 1994.
However, during the second half of 1995, and the first few months of 1996,
the investment climate took a turn for the better. The yen, under pressure from
the Bank of Japan, fell off its record highs, and eventually settled just above
the (YEN)100/U.S. $ by the close of trading in 1995. The Japanese government
announced its economic stimulus and budget packages, as well as a bad loan
rescue plan towards the end of the year, helping to buoy the markets under the
anticipation of a change in the economic climate. The Portfolio was positioned
to outperform during this type of economic climate, and did so dramatically,
with the help of the partial yen hedge during July and August.
The Portfolio's Hong Kong exposure, whose average weight has been
maintained at nearly twice the benchmark exposure, enhanced performance for the
balance of the fiscal year. During the past twelve months, the Hong Kong market
gained almost 30%, after a recovery in dragging property market values took
hold, and the yen weakened back to (YEN)100/U.S. $ levels. The Portfolio's Hong
Kong representation is highly concentrated in Hang Seng securities, which is
dominated by property stocks which recovered during the second half of 1995
after good earnings reports and lower interest rates on the backs of U.S.
interest rate declines.
PORTFOLIO MARKET ALLOCATIONS
VERSUS MSCI PACIFIC INDEX
FEBRUARY 29, 1996 FEBRUARY 28, 1995
------------------- -------------------
PORTFOLIO EAFE PORTFOLIO EAFE
---------- ------ --------- ------
Australia 6.2% 4.9% 4.7% 5.1%
Hong Kong 10.0% 6.1% 10.1% 5.9%
Japan 68.8% 81.1% 62.0% 81.4%
Malaysia 4.5% 4.7% 3.9% 4.6%
New Zealand 0.9% 0.8% 1.7% 0.8%
Singapore 5.9% 2.4% 4.1% 2.2%
South Korea 0.0% 0.0% 7.2% 0.0%
All Other 0.0% 0.0% 0.0% 0.0%
Cash 3.7% 0.0% 6.3% 0.0%
------ ------ ------ ------
100.0% 100.0% 100.0% 100.0%
EMERGING MARKETS EQUITY PORTFOLIO
OBJECTIVES. The Emerging Markets Equity Portfolio seeks to provide
long-term capital appreciation by investing primarily in a diversified fund of
equity securities of emerging market issuers.
STRATEGY. The adviser employs a combined top-down country allocation with
a bottom-up fundamental industry analysis and stock selection approach to
managing emerging market
9
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MANAGEMENT'S DISCUSSION AND ANALYSIS OF FUND PERFORMANCE
================================================================================
SEI INTERNATIONAL TRUST -- FEBRUARY 29, 1996
EMERGING MARKETS EQUITY (CONTINUED)
equity funds. The adviser uses a quantitative asset allocation model that
attempts to maximize expected return for a given risk level. Additionally, the
Portfolio will have a medium to large capitalization bias. The Portfolio will be
typically invested in 17 emerging markets and in countries that the adviser
expects to have the highest risk/reward tradeoff.
ANALYSIS. The Emerging Markets Equity Portfolio returned 6.8% for the year
ended February 29, 1996. The performance of the Portfolio lagged its benchmark,
the IFC Investable Composite Index, which ended the past 12 months up 13.4%. The
Portfolio's underweight to the Europe/MidEast/Africa regions, which over the
past year gained 33.9%, was the main cause of underperformance.
The emerging markets experienced broad based positive returns over the
previous twelve months as liquidity from foreign investors increased
dramatically and drove equity markets higher. Only a handful of bourses had
negative returns over the previous year, Colombia (26.4%) and Taiwan (30.9%)
were the worst performers both plagued by political concerns. Within Colombia,
President Samper has been charged with accepting funding for his campaign from
the Cali drug cartel. Taiwan has been beaten down over the past twelve months
due to threats from China in the form of military exercises. The returns of the
Europe/MidEast/Africa regions were driven mainly by the Eastern European markets
where Poland, Hungary and Turkey all increased more than 40%.
=========================================================
EMERGING MARKETS EQUITY
=========================================================
AVERAGE ANNUAL TOTAL RETURN1
- ---------------------------------------------------------
One Annualized
Year Inception
Return to Date
- ---------------------------------------------------------
Emerging Markets Equity, Class A 6.83% 8.67%
- ---------------------------------------------------------
COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN THE EMERGING
MARKETS EQUITY, CLASS A, VERSUS THE IFC INVESTABLE COMPOSITE INDEX
[GRAPHIC OMITTED]
A line graph depicting the total growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 in the SEI Emerging
Markets Equity Portfolio Class A from January 31, 1995 through February 29, 1996
as compared with the growth of a $10,000 investment in the IFC Investable
Composite Index. The plot points used to draw the line graph were as follows:
Growth of Growth of
$10,000 $10,000
Invested Invested in
in the SEI Emerging the IFC
Measurement Period Markets Equity Portfolio Investable
(Fiscal Year Covered) Class A Composite
1/31/95 $10,000 $10,000
2/28/95 10,138 9,860
2/29/96 10,830 11,190
1 FOR THE PERIOD ENDED FEBRUARY 29, 1996. PAST PERFORMANCE IS NO INDICATION OF
FUTURE PERFORMANCE. CLASS A SHARES WERE OFFERED BEGINNING JANUARY 17, 1995.
The Portfolio underperformed its benchmark, the IFC Investable Composite
Index by 650 basis points. The main detractor of performance over the past year
was the Portfolio's cash position. Due to the length of time it takes to get
invested in some of the emerging markets and the Portfolio's inception date of
January, 1995, the Portfolio had a larger than normal cash position for a short
time. Country allocation and stock selection also caused a drag on performance.
The Portfolio's underweight to South Africa, which was added to the IFC
Investable Composite Index on April 1 at a weight of 26%, had a negative impact
on returns.
10
<PAGE>
EMERGING MARKETS EQUITY (CONTINUED)
The South African market, which had been closed to foreign investors for
30 years, increased 40% due to new foreign capital flows combined with a
positive macroeconomic outlook. The Portfolio's underweight to Mexico, which
bounced back almost 40% last year, also detracted from performance. Overweights
to Argentina, Peru and Indonesia added 102 basis points over the past 12 months.
The strategy is currently focused on exposure to the larger, more liquid
markets and the larger capitalization securities within the markets. After a 30%
year in the U.S. market and strong market performance across Europe, combined
with expectations of slower growth within the developed countries in 1996, the
emerging markets are expected to experience large cash inflows from foreign
investors. The Portfolio's increased exposure to large capitalization, liquid
securities will benefit shareholders in the coming year.
INTERNATIONAL FIXED INCOME PORTFOLIO
OBJECTIVE. The International Fixed Income Portfolio seeks to provide
capital appreciation and current income through investments in fixed income
securities of non-U.S. issuers. The Portfolio also seeks to provide U.S.-based
investors with a vehicle to diversify and enhance the returns of the domestic
fixed income portion of their portfolios. The Portfolio invests primarily in
high-quality, non-U.S. dollar denominated government and corporate debt
obligations. There are no restrictions on the Portfolio's average maturity,
although the duration is expected to range between one and nine years.
STRATEGY. Portfolio construction entails a two-stage process which
combines fundamental macroeconomic analysis and technical price analysis. First,
a fundamental judgment is made about the direction of a market's interest rates
and its currency. A technical price overlay is then applied to the fundamental
position to ensure that the Portfolio is not substantially overweighted in a
declining market or underweighted in a rising one.
Country and currency allocations are made separately. As a result, the
Portfolio's currency exposure may differ from its underlying bond holdings.
Investments will generally be diversified across 6 to 12 countries with
continual exposure to the three major trading blocs: North America, Europe, and
the Pacific Basin. Depending upon the relative fundamental and technical views,
each trading bloc is over or underweighted relative to the Portfolio's benchmark
index. Currency exposure is actively managed to maximize return through the use
of forward currency contracts and cross-currency hedging techniques.
ANALYSIS: The International Fixed Income Portfolio returned 13.96% for the
year ended February 29, 1996, outperforming the Salomon Brothers non-U.S.
Government Bond Index, which returned 11.57%. Currency strategies and a long
duration relative to the benchmark index were the primary contributors to
outperformance.
Foreign exchange rates exhibited sharp volatility over the fiscal year,
beginning with a precipitous drop in the value of the dollar in the Spring of
1995. The dollar/yen exchange rate reached a post-World War II low of
approximately 80(YEN) per dollar, and most other world currencies reached
similar record levels. The
11
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FUND PERFORMANCE
================================================================================
SEI INTERNATIONAL TRUST -- FEBRUARY 29, 1996
INTERNATIONAL FIXED INCOME (CONTINUED)
Portfolio was well positioned for the depreciating dollar, with little
exposure to the dollar and an overweight to the strong performing Japanese yen
during the Spring. Sentiment on the dollar changed dramatically during the
summer, however, as the central banks joined forces to lift the dollar. The
Portfolio generated the majority of its outperformance for the year during the
summer months, as an extreme underweight to the yen protected the Portfolio from
currency losses. By February 29, 1996, the dollar was trading at stronger levels
than a year earlier.
Bond markets enjoyed a strong recovery from 1994's weak performance. As
economic data failed to show signs of surging growth or inflation, market
expectations shifted to a low-growth, modest inflation outlook. With the
exception of Japan, all bond markets posted double-digit returns during the
period. A long relative duration throughout the period and tactical shifts among
the markets generated outperformance relative to the benchmark index.
============================================================
INTERNATIONAL FIXED INCOME
============================================================
AVERAGE ANNUAL TOTAL RETURN1
- ------------------------------------------------------------
One Annualized
Year Inception
Return to Date
- ------------------------------------------------------------
International Fixed Income, Class A 13.96% 10.24%
- ------------------------------------------------------------
COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN THE INTERNATIONAL
FIXED INCOME PORTFOLIO, CLASS A, VERSUS THE SALOMON WGBI, NON-U.S., UNHEDGED
[GRAPHIC OMITTED]
A line graph depicting the total growth (including reinvestment of dividends and
capital gains) of a hypothetical investment of $10,000 in the SEI International
Fixed Income Portfolio Class A from September 30, 1993 through February 29, 1996
as compared with the growth of a $10,000 investment in the Salomon WGBI,
Non-U.S., Unhedged Index. The plot points used to draw the line graph were as
follows:
Growth of Growth of
$10,000 $10,000
Invested Invested in
in the SEI International Salomon WGBI
Measurement Period Fixed Income Portfolio Non-U.S., Unhedged
(Fiscal Year Covered) Class A Index
9/30/93 $10,000 $10,000
2/28/94 10,087 10,089
2/28/95 10,937 11,156
2/29/96 12,464 12,448
1 FOR THE PERIOD ENDED FEBRUARY 29, 1996. PAST PERFORMANCE IS NO INDICATION OF
FUTURE PERFORMANCE. CLASS A SHARES WERE OFFERED BEGINNING SEPTEMBER 1, 1993.
MARKET ALLOCATIONS AND PORTFOLIO DURATION
VERSUS THE SALOMON NON-U.S.
WORLD GOVERNMENT BOND INDEX
MARKET WEIGHTING DURATION
---------------- ---------------
FUND INDEX FUND INDEX
------ ------ ---- -----
Japan 25.62 30.48 5.14 5.54
Germany 32.89 16.12 4.50 4.20
France -4.03 11.29 4.67 4.97
Italy 9.76 9.19 5.28 3.20
UK 2.82 7.70 7.03 5.68
Netherlands 2.91 5.33 4.06 5.19
Canada 2.01 4.48 9.65 5.00
Belgium -0.36 4.11 2.59 4.51
Spain 5.81 3.70 4.10 3.58
Denmark 6.63 2.41 7.50 4.41
Sweden 1.59 2.38 3.45 4.23
Australia 1.31 1.51 4.80 4.26
Austria 0.00 1.30 0.00 4.23
Switzerland -3.54 0.00 0.00 --
Norway 1.92 0.00 4.61 --
ECU 0.30 0.00 0.00 --
USA 14.36 0.00 0.52 --
------ ------
100.0% 100.0%
12
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
SEI INTERNATIONAL TRUST -- FEBRUARY 29, 1996
INTERNATIONAL
EQUITY PORTFOLIO
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
FOREIGN COMMON STOCKS -- 94.4%
AUSTRALIA -- 4.0%
Advance Bank Australia 304,200 $ 1,320
Australia & New Zealand Bank 494,627 2,430
Commonwealth Bank of
Australia 161,600 1,336
Foodland 100,600 377
Futuris 64,900 78
Incitec 70,800 333
National Australia Bank 313,872 3,009
Pacific Magazines & Print 55,500 138
Pioneer 704,100 2,087
Rothmans Holdings 78,500 360
Westpac Banking 516,207 2,437
--------
13,905
--------
AUSTRIA -- 0.1%
SCA Laakirchen 100 37
Vorarlberger Kraftwerke 600 183
--------
220
--------
BELGIUM -- 1.9%
Arbed 3,200 351
CMB 3,700 304
Cockerill Sambre 30,000 175
Electrabel 9,400 2,157
Gevaert 1,000 63
Glaverbel 1,400 162
Immobiliere de Belgique 700 51
Kredietbank 5,600 1,541
Solvay 1,500 885
Tractabel 3,000 1,232
--------
6,921
--------
CANADA -- 2.5%
Bank of Montreal 20,300 471
Bank of Nova Scotia 86,900 1,947
Canadian Imperial Bank 71,200 2,114
Canfor 10,600 99
Cascades 21,400 97
CCL Industries "B" 15,400 136
Celanese Canada 4,300 74
Dominion Textile 14,500 74
London Insurance 13,900 284
MacMillan Bloedel 29,300 374
Nova 50,800 449
Oshawa Group 20,300 338
Royal Bank of Canada 43,200 988
Slocan Forest Products 12,600 117
Stelco 37,000 158
Toronto Dominion 43,900 744
Total Petroleum 7,400 61
West Fraser Timber 7,000 154
--------
8,679
--------
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
FINLAND -- 0.1%
Enso-Gutzeit "A" 47,600 $ 332
--------
FRANCE -- 10.0%
Accor 11,650 1,642
Alcatel Alsthom 26,400 2,343
Bollore Technologies 2,350 262
Bongrain 350 199
Canal Plus 7,200 1,285
Cap Gemini Sogeti 9,550 294
Casino 5,850 203
Christian Dior 16,450 1,979
CIC Union Europe 1,300 94
Colas 2,050 374
Credit Commerce France 29,900 1,424
Credit Lyonnais 12,200 598
Credit National 4,950 388
C.G.I.P. 1,800 447
De Dietrich et Compagnie 3,400 182
Devanlay 600 60
Ecco 2,450 500
Ecia 550 81
Eiffage 1,650 246
Elf Aquitaine 38,691 2,671
Elf Gabon 600 101
Eramet 1,550 112
Eridania Beghin Say 8,800 1,512
Financiere Poliet 3,750 370
Gaumont 4,700 343
La Rochette 8,450 58
Lafarge 31,515 2,169
Lagardere Groupe 14,250 382
Legris Industries 2,450 97
Manitou 800 103
Marine Wendel 4,650 369
Michelin "B" 16,200 726
Parisienne de Rees 2,000 171
Pernod Ricard 14,200 892
Peugeot 12,000 1,796
Pinault Printemps 7,600 1,802
Publicis 900 65
Saint Gobain 20,250 2,612
Saint Louis-Bouchon 1,100 349
Salomon 350 205
SAT 550 225
Scac Delmas Viel 521 81
SGE 4,500 105
Skis Rossingnol 700 240
Sommer Allibert 1,300 398
Thomson 35,050 899
Total Compaigne "B" 37,637 2,485
UIF 800 71
Union Assurances Federal 3,500 389
Usinor Sacilor* 32,250 504
Vallourec 6,200 267
--------
35,170
--------
13
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
SEI INTERNATIONAL TRUST -- FEBRUARY 29, 1996
INTERNATIONAL
EQUITY PORTFOLIO--CONTINUED
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
GERMANY -- 6.4%
Aachener & Muenchener 400 $ 172
Agiv 18,900 337
Andrea-Noris Zahn 1,050 304
Audi 143 55
BASF 11,600 2,912
Bayer 11,017 3,379
BHF Bank 9,550 266
Bremer Vulkan 12,800 194
Commerzbank 7,450 1,711
Continental 19,900 339
DBV Holding 1,000 319
Deutche Pfandrbrief &
Hypotheken Bank 5,350 207
Draegerwerk 350 63
Dyckerhoff 1,150 270
Dywidag 450 71
Escada 350 62
Franfurt Hypothekenbank
Centralboden 465 20
Heidelberger 700 457
Herlitz 1,000 139
Hoechst 7,350 2,321
Kabelmetall 1,150 102
Kaufhof 500 159
Kaufring 900 60
Kloeckner-Werke 3,850 136
Kolbenschmidt 800 109
Lehnkering 500 77
Man 2,000 569
Nuernberger BET 50 36
Praktiker Bau-Und Heimwerker 11,450 291
Preussag 4,900 1,457
Salamander 1,050 159
Varta 900 164
Veba 52,100 2,457
Viag 450 193
Villeroy and Boch 1,900 270
Volksfursorge 1,200 378
Volkswagen 4,950 1,887
--------
22,102
--------
HONG KONG -- 2.7%
Cathay Pacific Airways 884,000 1,618
Dickson Concepts 117,000 120
Hang Lung Development 234,000 437
Hong Kong Aircraft Engineering 44,800 131
Hong Kong Ferry 144,000 152
HSBC Holdings 253,200 4,061
Jardine International Motor 288,000 399
Kowloon Motor 213,600 363
Kumagai Gumi 467,400 429
Lai Sun Garment 318,000 387
Liu Chong Hing 84,000 97
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
Peregrine Investment Holdings 222,000 $ 379
Top Glory 1,292,000 147
Union Bank Hong Kong 85,000 100
Wing Hang Bank 44,000 183
Wing Lung Bank 24,000 168
Yue Yuen 372,000 95
--------
9,266
--------
ITALY -- 1.1%
Banca Popolare Bergamo 22,100 362
Banca Popolare di Milano 53,800 249
Burgo (Cartiere) 10,700 58
Parmalat Finanziaria 387,800 361
SAI di Risp 67,700 295
Telecom Italia 1,268,300 1,748
Telecom Italia di Risp 241,700 270
Telecom Italia Mobile 22,700 42
Toro Assicurazioni 18,800 251
Unipol 12,700 61
--------
3,697
--------
JAPAN -- 35.0%
Aderans 15,000 281
Aichi Toyota Motor 35,000 503
Airport Facilities 61,000 484
Ariake Japan 7,000 260
Asahi Bank 141,000 1,652
Ashikaga Bank 77,000 466
Autobac Seven 4,600 370
Bank of Fukuoka 34,000 261
Canon 93,000 1,709
Chain Store Okuwa 19,000 268
Charle 21,000 300
Chiba Kogyo Bank 100 4
Chuba Electric Power 36,000 833
Chubu Nippon Broadcasting 14,600 327
Cosmo Oil 262,000 1,442
Dai Ichi Pharmaceutical 93,000 1,435
Dai Nippon Ink & Chemical 175,000 797
Dai Nippon Printing 129,000 2,224
Dai Tokyo Fire & Marine
Insurance 140,000 1,020
Daidoh 47,000 363
Dai-Ichi Kangyo Bank 169,000 3,171
Daiwa Bank 40,000 270
Daiwa Securities 177,000 2,495
Fuji Photo Film 83,000 2,356
Fujitsu 216,000 2,222
Fujitsu Kiden 28,000 368
General Sekiyu 46,000 442
Glory 17,000 560
Gunma Bank 136,000 1,451
Hachijuni Bank 52,000 555
Hanshin Electric Railway 81,000 339
14
<PAGE>
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
Heiwa 60,000 $ 1,446
Hirose Electric 8,000 453
Hitachi 317,000 3,200
Hitachi Transport System 66,000 666
Hokuriko Bank 67,000 381
Honda Motor 117,000 2,485
Ichiyoshi Securities 50,000 321
Inabata 59,000 423
Isetan 59,000 742
Itariyard 8,000 274
Japan Airport Terminal 38,000 463
Japan Maintenance 11,250 209
Kahma 8,400 146
Kansai Kosaido 19,000 275
Kansei 53,000 447
Kirin Brewery 192,000 2,231
Kokusai Securities 59,000 877
Komatsu Forklift 89,000 606
Kurogane Kosakusho 24,000 143
Kyocera 24,000 1,646
Kyushu Electric Power 64,300 1,482
Long Term Credit Bank 241,000 1,836
Mabuchi Motor 8,000 491
Mandom 17,000 240
Matsushita Electric 208,000 3,328
Meiko Shokai 11,000 402
Mitsubishi Bank 155,000 3,174
Mitsubishi Electric 245,000 1,797
Mitsubishi Oil 155,000 1,342
Mitsui Marine & Fire 214,000 1,559
Mitsui Trust & Banking 206,000 2,119
NAC 8,000 200
Nagaileben 8,000 283
Nagase 40,000 373
Nakabohtec Corrosion Protecting 27,000 327
NEC 75,000 893
New Family 24,000 215
Nichimen Infinity 13,000 254
Nihon Dempa Kogyo 12,000 238
Nikko Securities 200,000 2,267
Nintendo 9,700 656
Nippon Cable System 33,000 295
Nippon Credit Bank 284,000 1,109
Nippon Meat Packers 85,000 1,247
Nippon Oil 278,000 1,673
Nippon Yusoki 30,000 154
Nissan Fire & Marine Insurance 43,000 301
Nissan Motors 115,000 892
Nittetsu Mining 65,000 619
Nittetsu Shoji 50,000 160
Okinawa Electric Power 13,000 370
Paris Miki 6,800 230
Pioneer Electronics 84,000 1,688
RKB Mainichi Broadcasting 20,000 162
Rohm 22,000 1,309
Sakura Bank 228,000 2,475
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
Sanawa Shutter 40,000 $ 326
Sankei Building 41,000 348
Sanki Engineering 45,000 561
Sanseido 22,000 289
Santen Pharmaceutical 11,000 246
Sanyo Shinpan 11,000 807
Satoh & Company 11,000 178
Sekisui House 112,000 1,397
Shikoku Electric Power 65,000 1,498
Shimachu 6,000 174
Shimamura 9,000 334
Shiseido 120,000 1,360
Shizuoka Bank 127,000 1,572
Showa Shell Sekiyo 147,000 1,358
Sintokogio 23,000 201
SK Kaken 18,000 401
Sugimoto 1,000 17
Sumitomo 153,000 1,545
Sumitomo Bank 82,000 1,562
Sumitomo Marine and Fire
Insurance 178,000 1,521
Sumitomo Realty &
Development 257,000 1,750
Tachibana Shokai 39,000 368
Taisei 53,000 346
Takano 23,000 519
Takeda Chemical Industries 150,000 2,414
TDK 28,000 1,413
Toho 5,000 824
Tohoku Electric Power 76,000 1,781
Tohoku Misawa Home 30,000 380
Tokushu Paper 30,000 317
Tokyo Electric Power 50,200 1,310
Tokyo Soir 8,000 48
Tokyo Steel 300 6
Tokyo Tungsten 17,000 160
Tokyotokeiba 107,000 469
Toppan Printing 120,000 1,565
Toshiba 270,000 2,091
Totech 12,000 85
Toyo Bussan 26,000 314
Toyo Seikan Kaisha 12,000 374
Trusco Nakayama 24,000 567
Tsubakimoto Precision 37,000 447
Tsutsumi Jewelry 7,000 371
Yamaichi Securities 271,000 1,964
Yamanouchi Pharmaceutical 67,000 1,499
Yamazaki Baking 39,000 695
Yodogawa Steel Works 43,000 339
Yokohoma 20,000 259
Yonex 23,000 261
Yukiguni Maitake 18,700 187
Yushiro Chemical 30,000 289
--------
121,929
--------
15
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
SEI INTERNATIONAL TRUST -- FEBRUARY 29, 1996
INTERNATIONAL
EQUITY PORTFOLIO--CONTINUED
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
MALAYSIA -- 2.6%
Arab Malaysian 100,000 $ 351
Berjaya Group Berhad 527,000 341
Berjaya Singer 82,000 80
Bousted 166,000 349
Cement Industries 18,000 58
Datuk Keramat Holdings 132,000 247
Edaran Otomobil 69,000 512
Faber Group* 655,000 643
IOI Properties 141,900 342
Kuala Lumpur Kepong Berhad 155,000 490
Land and General 202,000 452
Malaysian Airline System 83,000 277
Malaysian International
Shipping 668,000 1,861
MBF Capital 458,000 536
Negara Properties 10,000 35
Oriental Holdings 47,000 240
Rashid Hussain 525,000 1,638
Southern Bank 104,000 212
Westmont Berhad Industries 140,000 313
--------
8,977
--------
NETHERLANDS -- 4.0%
ABN-Amro Holdings 51,400 2,390
Beers 800 131
Dordtsche Petroleum 6,800 996
Draka 4,500 128
DSM 3,900 365
Eriks 600 52
EVC 9,300 301
GTI 800 68
Hollandsche Beton Groep 2,400 376
Hoogovens 7,500 302
Inter Muller 4,300 314
International Nederlanden Groep 52,717 3,502
KLM 16,400 546
Koninklijke Bijenkorf Beh 1,500 97
KPN 44,400 1,784
National Invest Bank 4,600 339
Nedlloyd Groep 12,700 277
Nijverdal Tencate 1,800 78
NKF Holding 1,000 171
Phillips Electronics 11,400 475
Polynorm 500 47
Schuitema 100 120
Stad Rotterdam 10,200 320
Telegraaf 300 47
Van Der Moolen 1,500 59
Vendex International N.V. 5,600 163
Volker Stevin 5,700 360
--------
13,808
--------
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
NEW ZEALAND -- 0.4%
Fisher & Paykel Industries 117,300 $ 355
Independent Newspaper 14,600 50
Lion Nathan 498,600 1,090
--------
1,495
--------
NORWAY -- 1.0%
Den Norske Bank 170,909 555
Den Norske Luft 4,400 202
Dyno Industrier 12,200 259
Elkem "A" 27,500 331
Kvaerner "B" 21,200 614
Leif Hoegh & Company 8,200 119
Norske Skog 48,600 1,465
--------
3,545
--------
SINGAPORE -- 2.2%
Bat 78,000 309
City Developments 68,000 554
Fraser and Neave 124,000 1,660
Goldtron 260,000 238
Haw Par Brothers 19,000 43
Hotel Properties 201,000 365
Inchcape Berhad 22,000 76
Industrial & Commercial Bank 68,000 275
Jardine Matheson Holdings 53,100 425
Jurong Engineering 15,000 83
Keppel 76,000 770
Pacific Carriers 258,000 225
Republic Hotel and Resort 75,000 107
Ssangyong Cement 57,000 168
United Overseas Bank 231,600 2,477
--------
7,775
--------
SPAIN -- 3.5%
Acerinox 4,600 445
Azucarera Espana 2,600 90
Banco Bilbao-Vizcaya 23,480 915
Banco de Santander 11,760 580
Conserva Campofrio 1,700 58
Cristeria 2,500 160
Cubiertas y Mzov 2,400 155
Empresas Nacional de Cellulosa 10,100 140
G.E.S.A 7,300 388
Iberdrola 270,400 2,666
Porsegur 2,500 91
Repsol 18,540 677
Repsol ADR 37,600 1,363
Telefonica de Espana 166,300 2,735
Uniland 4,000 169
Union Electrica Fenosa 248,100 1,399
--------
12,031
--------
16
<PAGE>
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
SWEDEN -- 1.0%
Catena "A" 20,700 $ 156
Celsius Industrier 9,600 264
Industrivarden 5,900 190
Marieberg Tidnings "A" 7,200 192
Mo Och Domsjo "B"* 5,200 257
Perstorp AB "B" 6,600 86
Skane-Gripen "B" 11,400 103
Skanska Free "B" 17,400 544
SSAB "B" 26,000 293
Stora Kopparbergs "A" 80,000 1,032
Svedala AB Free 7,500 231
--------
3,348
--------
SWITZERLAND -- 3.2%
Aare-Tessin 360 258
Alusuisse-Lonza 300 241
Baer Holdings 290 294
Baloise 120 232
Banque Cantonale Vaud 370 102
Bucher Holdings 190 132
Ciba Geigy 3,260 2,914
CS Holdings 27,030 2,577
Daetwyler Holdings 40 79
Elektrowatt "B" 1,120 405
Kuoni Reisen Holdings 110 202
Rieter 900 261
Roche Holdings 394 3,064
Schindler Holdings 170 190
Suedelektra Holdings 160 154
--------
11,105
--------
UNITED KINGDOM -- 12.7%
Adwest Group 25,800 45
Albert Fisher Group 431,500 294
Amec 148,900 227
Anglian Group 51,200 110
Anglian Water 149,000 1,294
ASDA Group 630,000 1,008
Astec 189,200 346
Bridon 35,700 56
British Airways 201,900 1,575
British Gas 40,100 146
British Steel 557,800 1,570
BTR 162,538 803
Bullough 71,300 115
Burn Stewart Distillers 25,200 46
Charter 20,400 264
Cowie Group 56,900 282
Davis Service Group 51,200 186
EIS Group 8,600 51
Frost Group 60,110 117
General Accident 159,500 1,571
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
GKN 109,000 $ 1,402
Grampian Holdings 18,700 37
Guardian Royal Exchange 460,300 1,709
Hanson 582,300 1,683
Hunting 73,300 247
Ibstock 52,400 60
IMI 14,400 73
Kwik Save Group 23,900 170
Lex Service 67,100 336
Lloyds TSB Group 411,900 2,073
London International Group 93,100 158
Low & Bonar 9,500 79
M & G Group 5,000 98
MacDonald Martin "A" 4,700 46
Marston Thompson 12,700 67
McKechnie 46,500 331
Mirror Group 141,700 471
National Power 210,400 1,553
National Westminster 215,500 2,280
North West Water Group 164,400 1,460
Northern Foods 23,900 70
Nurdin & Peacock 12,700 29
Ocean Group 42,300 251
Perkins Food 39,900 46
Pilkington 458,600 1,468
Renold 85,500 352
RJB Mining 30,000 244
Royal Bank of Scotland 173,000 1,462
Royal Insurance 283,800 1,649
Salvesen 67,300 275
Scapa Group 69,200 253
Scottish Hydro-Electric 55,600 284
Scottish Power 172,400 970
Sedgwick Group 181,500 367
Severn Trent 136,300 1,298
Shanks & McEwan 86,500 131
South West Water 38,990 293
Southern Water 38,900 394
Staveley Industries 25,500 78
Sutter 39,100 94
Takare 82,400 213
Tate & Lyle 194,200 1,416
Taylor Woodrow 166,100 373
Telewest 122,100 254
Thames Water 223,600 1,822
Tomkins 355,600 1,438
TT Group 41,700 188
Unigate 33,400 227
Vaux Group 46,600 200
Vosper Thornycroft 5,300 68
Waddington (John) 28,300 88
Wardle Storeys 12,400 74
Waste Management 31,600 160
17
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
SEI INTERNATIONAL TRUST -- FEBRUARY 29, 1996
INTERNATIONAL
EQUITY PORTFOLIO--CONCLUDED
- --------------------------------------------------------------------------------
SHARES/FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Welsh Water 34,500 $ 392
Wessex Water 70,700 362
Whitbread "A" 170,000 1,851
Whitecroft 13,300 42
Wolverhampton & Dudley 14,600 141
Yorkshire Water 35,300 336
--------
44,092
--------
Total Foreign Common Stocks
(Cost $302,171) 328,397
--------
FOREIGN PREFERRED STOCKS -- 0.5%
GERMANY -- 0.2%
Herlitz 550 74
Krones 800 364
Suedzucker 350 186
--------
624
--------
ITALY -- 0.3%
Autostrade 144,900 164
Fiat 482,000 920
--------
1,084
--------
Total Foreign Preferred Stocks
(Cost $1,609) 1,708
--------
REPURCHASE AGREEMENT -- 3.6%
J.P. Morgan
5.39%, dated 2/29/96,
matures 3/1/96, repurchase
price $12,620,407 (collateralized
by Government National Mortgage
Association with maturities from
10/20/96 to 2/15/26, interest
rates from 5.00% to 7.50%, total
par value $12,690,086; total
market value of collateral
$12,890,095) $12,620 12,620
--------
Total Repurchase Agreement
(Cost $12,620) 12,620
--------
Total Investments -- 98.5%
(Cost $316,400) 342,725
--------
OTHER ASSETS AND LIABILITIES -- 1.5%
Other Assets and Liabilities, Net 5,120
--------
NET ASSETS:
Portfolio shares of Class A (unlimited
authorization -- no par value) based
on 34,753,783 outstanding shares of
beneficial interest 312,486
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
Portfolio shares of Class D (unlimited
authorization -- no par value) based
on 20,074 outstanding shares of
beneficial interest $ 202
Accumulated net realized gain
on investments 10,606
Net unrealized depreciation on
forward foreign currency
contracts, foreign currency and
translation of other assets and
liabilities in foreign currency (35)
Net unrealized appreciation
on investments 26,325
Accumulated net investment
loss (1,739)
--------
Total Net Assets:-- 100.0% $347,845
========
Net Asset Value, Offering Price and
Redemption Price Per Share --
Class A $ 10.00
=======
Net Asset Value, Offering Price and
Redemption Price Per Share --
Class D $ 9.93
=======
Maximum Offering Price Per
Share-- Class D ($9.93/95%) $ 10.45
=======
* NON-INCOME PRODUCING SECURITY
ADR--AMERICAN DEPOSITORY RECEIPT
EUROPEAN EQUITY PORTFOLIO
FOREIGN COMMON STOCKS -- 94.5%
AUSTRIA -- 0.2%
VA Technologie 1,120 $ 142
--------
BELGIUM -- 1.8%
GIB 29,827 1,418
--------
DENMARK -- 2.0%
Den Danske Bank 12,220 830
Kobenhavns Lufthavne 8,540 743
--------
1,573
--------
FINLAND -- 1.0%
Nokia "A" 17,720 608
Nokia AB "K" 4,000 139
--------
747
--------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
18
<PAGE>
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
FRANCE -- 14.7%
Carrefour 1,915 $ 1,293
Castorama Dubois 5,400 1,011
Cetelem 4,244 893
Credit Local de France 11,097 882
Generale des Eaux 15 2
Hermes International 3,500 822
Imetal 5,650 821
LVMH Moet Hennessy 5,095 1,161
Promodes 2,750 750
Sanofi 11,000 764
Scor 17,400 582
Seita 19,200 766
SGS Thomson Micro 26,448 982
Television Francaise 7,000 749
--------
11,478
--------
GERMANY -- 7.9%
Adidas AG 12,800 819
Bayer Vereinsbank 29,000 868
Bayer 3,735 1,145
Gehe AG 1,170 658
SAP 200 31
Siemens 1,710 980
Volkswagen 4,330 1,653
--------
6,154
--------
ITALY -- 3.6%
ENI SPA 298,343 1,133
Stet Soc Fin Telefonica 140,000 428
Telecom Italia Mobile SPA 680,000 1,248
--------
2,809
--------
NETHERLANDS -- 10.6%
ABN-Amro Holdings 17,235 801
Aegon 22,462 967
Ahold 24,111 1,011
Elsevier 99,500 1,409
Hunter Douglas 15,120 882
International Nederlanden
Groep 18,699 1,242
Verenigde Nederlandse
Uigevbedri 51,150 836
Wolters Kluwer 10,633 1,144
--------
8,292
--------
NORWAY -- 1.1%
Saga Petroleum "B" 48,040 536
Saga Petroleum "A" 26,500 323
--------
859
--------
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
SPAIN -- 8.3%
Banco Bilbao-Vizcaya 37,500 $ 1,461
Banco Popular Espana 5,273 961
Continente 34,800 799
Financiera Alba 11,750 816
Gas Natural 9,050 1,525
Repsol 25,000 913
--------
6,475
--------
SWEDEN -- 7.7%
Astra "B" 23,605 1,081
Ericsson 66,550 1,445
Hennes & Mauritz "B" Free 12,000 797
Kalmar Industries 40,000 783
Securitas "B" 15,750 824
Skandia Forestry 45,100 1,064
--------
5,994
--------
SWITZERLAND -- 6.4%
BBC Brown Boveri 1,000 1,198
Ciba Geigy 492 440
Roche Holdings 179 1,392
Sandoz Pharmaceutical 2,079 1,956
--------
4,986
--------
UNITED KINGDOM -- 29.2%
Abbey National 85,800 753
ASDA Group 191,500 306
Associated British Foods 81,400 494
Bass 60,900 708
BAT Industries 77,500 678
Blue Circle Industries 128,200 690
Britannic Assurance 14,000 168
British Aerospace 55,100 734
British Airways 70,000 546
British Biotech 4,950 155
British Gas 120,000 435
British Sky Broadcasting 48,000 288
British Telecommunications 233,600 1,329
BTR 66,000 326
Commercial Union 44,000 409
English China Clay 62,000 325
General Electric 173,000 979
Glaxo Wellcome 106,000 1,467
Granada Group 64,000 713
Grand Metropolitan 54,900 365
Great Universal Stores 56,400 572
Guinness 49,800 350
Hammerson "A" 92,800 491
HSBC Holdings 40,000 659
Lasmo 218,600 616
Morrison Supermarket 75,000 172
Next 81,000 588
19
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
SEI INTERNATIONAL TRUST -- FEBRUARY 29, 1996
EUROPEAN EQUITY
PORTFOLIO--CONCLUDED
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
Prudential 97,000 $ 654
Reuters Holdings 66,800 716
Rolls Royce 120,000 380
Royal Insurance 106,300 618
Scottish Power 63,500 356
Sedgwick Group 259,800 525
Severn Trent 38,000 362
Shell Transportation & Trading 86,000 1,112
Smiths Industries 57,000 601
Tate & Lyle 62,000 452
Tomkins 112,800 456
Vendome Units 59,700 497
Vodafone Group 120,000 425
Williams Holdings 82,500 426
--------
22,896
--------
Total Foreign Common Stocks
(Cost $65,153) 73,823
--------
FOREIGN PREFERRED STOCKS -- 1.9%
GERMANY -- 1.9%
Rhoen Klinikum 5,520 569
SAP 5,592 878
--------
1,447
--------
Total Foreign Preferred Stocks
(Cost $718) 1,447
--------
Total Investments -- 96.4%
(Cost $65,871) 75,270
--------
OTHER ASSETS AND LIABILITIES -- 3.6%
Other Assets and Liabilities, Net 2,851
--------
NET ASSETS:
Portfolio shares of Class A (unlimited
authorization -- no par value) based
on 6,353,833 outstanding shares of
beneficial interest 67,059
Accumulated net realized gain
on investments 1,664
Net unrealized depreciation on forward
foreign currency contracts, foreign
currency and translation of other assets
and liabilities in foreign currency (2)
Net unrealized appreciation
on investments 9,399
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
Undistributed net investment
income $ 1
--------
Total Net Assets:-- 100.0% $ 78,121
========
Net Asset Value, Offering Price and
Redemption Price Per Share --
Class A $ 12.30
========
* NON-INCOME PRODUCING SECURITY
ADR--AMERICAN DEPOSITORY RECEIPT
PACIFIC BASIN
EQUITY PORTFOLIO
FOREIGN COMMON STOCKS -- 95.7%
AUSTRALIA -- 6.2%
Amcor 18,000 131
Australia & New Zealand Bank 81,033 398
Broken Hill Proprietary 52,900 766
CRA 24,725 379
Lend Lease 19,000 291
Newscorp 85,200 484
Oil Search 63,000 62
Pioneer International 95,000 282
Tabcorp 80,000 279
Western Mining 95,025 611
Westpac Banking 78,000 368
Woodside Petroleum 42,000 233
--------
4,284
--------
HONG KONG -- 10.0%
Chen Hsong 402,000 229
Cheung Kong Holdings 100,000 695
Citic Pacific 207,000 806
Giordano 434,000 463
Hong Kong Electric 90,000 305
HSBC Holdings 34,290 550
Hutchison Whampoa 137,000 868
Jardine International Motor 248,000 343
New World Development 114,000 556
Sun Hung Kai Properties 59,200 528
Swire Pacific "A" 87,000 760
Wharf Holdings 204,000 790
--------
6,893
--------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
20
<PAGE>
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
JAPAN -- 68.3%
Airport Facilities 34,000 $ 270
Amada 98,000 1,055
Bridgestone 131,000 2,046
Canon 37,000 680
Chain Store Okuwa 17,000 240
Daiwa Securities 117,000 1,649
DDI 92 675
East Japan Railway 254 1,299
Fuji Photo Film 54,000 1,533
Glory 23,000 758
Heiwa 11,000 265
Hirose Electric 8,400 476
Hitachi 315,000 3,180
Ito Yokado 38,000 2,128
Japan Airport Terminal 41,000 500
Japan Associated Finance 4,000 408
Kahma 10,400 180
Kuraray 81,000 856
Mabuchi Motor 13,000 799
Matsushita Electric 129,000 2,064
Mitsubishi 106,000 1,312
Mitsubishi Electric 213,000 1,562
Mitsubishi Trust & Banking 13,000 201
Mitsui 203,000 1,726
Mitsui Petrochem 21,000 173
Murata Manufacturing 40,000 1,318
New Oji Paper 36,000 328
Nihon Dempa Kogyo 8,000 158
Nippon Steel 189,000 610
Nippon Television Network 1,000 286
Okinawa Electric Power 9,000 256
Omron 62,000 1,370
Promise 6,000 262
Sankyo 27,000 622
Santen Pharmaceutical 8,000 179
Seino Transportation 40,000 667
Sekisui House 88,000 1,098
Shimachu 15,000 436
Shimamura 9,000 334
Showa Shell Sekiyo 90,000 831
SMC 11,200 766
Sony 9,000 528
Sumitomo Electric 75,000 971
Sumitomo Metal* 266,000 750
Takashimaya 12,000 177
Takeda Chemical Industries 48,000 772
Toho 5,900 972
Tokio Marine & Fire Insurance 122,000 1,476
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
Tokyo Broadcasting Systems 23,000 $ 388
Toppan Printing 76,000 992
Toyota Motor 100,000 2,162
Tsubakimoto Precision 50,000 605
Yasuda Fire & Marine Insurance 191,000 1,364
Yokogawa Electric 46,000 491
--------
47,204
--------
MALAYSIA -- 4.4%
DCB Holdings 92,000 280
Gamuda 42,000 241
Genting Berhad 48,500 434
Larut Consolidated 161,500 209
Malayan Banking 63,500 581
Malaysian Assurance Alliance 25,875 149
Petronas Gas 49,000 190
Resorts World 41,000 230
Telekom Malaysia 58,000 499
United Engineers 32,000 206
--------
3,019
--------
NEW ZEALAND -- 0.9%
Carter Holt Harvey 127,511 273
Telecom of New Zealand 81,000 363
--------
636
--------
SINGAPORE -- 5.9%
City Developments 70,000 570
DBS Land 97,000 381
Development Bank of
Singapore "F" 25,000 356
Keppel 63,000 638
Mandarin Oriental 285,718 374
Singapore International
Airlines "F" 26,000 262
Singapore Press "F" 21,880 442
United Overseas Bank "F" 62,824 672
Wing Tai Holdings 153,000 368
--------
4,063
--------
Total Foreign Common Stocks
(Cost $63,874) 66,099
--------
Total Investments -- 95.7%
(Cost $63,874) 66,099
--------
OTHER ASSETS AND LIABILITIES -- 4.3%
Other Assets and Liabilities, Net 2,962
--------
21
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
SEI INTERNATIONAL TRUST -- FEBRUARY 29, 1996
PACIFIC BASIN
EQUITY PORTFOLIO--CONCLUDED
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio shares of Class A (unlimited
authorization -- no par value) based
on 6,915,067 outstanding shares of
beneficial interest $ 67,570
Accumulated net realized loss
on investments (725)
Net unrealized appreciation
on investments 2,225
Accumulated net investment
loss (9)
--------
Total Net Assets:-- 100.0% $ 69,061
========
Net Asset Value, Offering Price and
Redemption Price Per Share --
Class A $ 9.99
========
* NON-INCOME PRODUCING SECURITY
ADR--AMERICAN DEPOSITORY RECEIPT
EMERGING MARKETS
EQUITY PORTFOLIO
FOREIGN COMMON STOCKS -- 82.0%
ARGENTINA -- 5.0%
Banco Frances ADR 3,800 99
Central Costanera 110,535 343
Cresud 294,600 513
Irsa 47,950 132
Irsa ADR 2,777 76
Perez Companc 194,976 971
Siderca 553,420 548
Telefonica Argentina ADR 26,410 690
--------
3,372
--------
BRAZIL -- 4.3%
Cia Vale Rio Doce ADR* 3,900 158
Telebras 7,200,000 304
Telecom Brasileiras ADR 34,100 1,790
Telesp 3,974,000 658
--------
2,910
--------
CHILE -- 3.1%
Banco de Edwards ADR 5,200 109
Compania de Telecom Chile 14,930 1,235
Enersis ADR 14,630 415
Moneda Chile Fund 27,222 245
Quimica y Minera Chile ADR 1,000 51
--------
2,055
--------
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
CHINA -- 0.4%
Huaneng Power International
ADR 6,500 $ 120
Shanghai Dazhong Taxi "B" 200,000 158
--------
278
--------
CZECH REPUBLIC -- 3.1%
Cokoladovny 1,200 124
Czech Value Fund Units 5,900 310
Elektrarny Opatovice 752 105
Komercni Banka GDR 8,000 184
Komercni Banka 12,000 295
PIF 15,759 342
Spif Vseobecny 11,093 53
Spt Telecom 4,400 455
Vynosovy 23,400 130
--------
1,998
--------
GREECE -- 0.4%
Aegek 13,070 106
Greek Progress Fund 21,460 195
Hellenic Bottling 5 0
--------
301
--------
HONG KONG -- 2.7%
Guang Dong Investment 187,000 120
Henderson Land Development* 47,000 340
Hutchison Whampoa 31,000 196
Johnson Electric Holdings 167,500 325
MC Packaging 714,000 268
Shangri-La Asia 208,000 284
Tian An China 142,000 20
Yue Yuen 1,002,000 255
--------
1,808
--------
HUNGARY -- 0.2%
Borsodchem GDR 5,800 85
Egis 2,000 68
--------
153
--------
INDIA -- 1.4%
Arvind Mills GDR 25,600 87
Bajaj Auto GDR 9,200 251
Grasim Industries GDR 21,000 431
Indian Hotels GDS 9,100 193
--------
962
--------
INDONESIA -- 3.1%
Asia Pacific Resource "A" 18,800 89
Bank Bali 75 0
Bank Bali Warrants 400 0
Bank International Indonesia "F" 22,000 93
Bimantara Citra 61,500 72
Dankos Labs "F" 26,000 62
Hanjaya Mandala Sampoerna "F" 15,500 169
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
22
<PAGE>
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
Indorama Synthetica "F" 30,500 $ 108
Indosat ADS 1,500 56
Indorayon Utama "F" 127,000 156
PT Telecom ADR 16,000 502
Sekar Bumi 79,000 74
Semen Cibinong 90,000 281
Semen Gresik "F" 40,000 141
Tambang Timah GDR 6,600 97
Telco GDR 8,000 108
Tjiwi Kimia 178 0
--------
2,008
--------
ISRAEL -- 1.1%
ECI Telecom* 5,000 128
Koor Industries ADR 10,100 202
Teva Pharmaceuticals ADR 5,500 238
Teva Pharmaceuticals 474 204
--------
772
--------
MALAYSIA -- 15.4%
Arab Malaysian 330,000 1,159
Arab Malaysian Finance 118,000 546
AMMB Holdings 59,000 712
DCB Holdings Warrants 144,000 174
DCB Holdings 546,000 1,661
Genting Berhad 47,000 421
IJM 416,000 679
IOI 910,000 1,000
Metacorp 185,000 574
New Straits Times Press 77,000 363
Petronas Gas 276,000 1,072
Resorts World 122,000 685
Telekom Malaysia 137,000 1,178
United Engineers 20,000 129
--------
10,353
--------
MEXICO -- 14.1%
Banamex Accival "L" 114,000 199
Cemex CPO 253,500 870
Cemex "B" 408,500 1,514
Empresas la Maderna 194,000 828
Grupo Financiero Banamex "B" 1,194,000 2,299
Grupo Industria Alfa "A" 161,000 1,954
Grupo Mexico "B" 86,000 309
Industrias Penoles 245,000 1,006
Kimberly Clark "A" 21,000 351
San Luis CPO 37,000 172
--------
9,502
--------
PAKISTAN -- 0.5%
Adamjee Insurance 11,400 46
D.G. Khan 60,940 45
D.G. Khan Rights 18,282 4
Engro Chemicals 20,200 98
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
ICI Pakistan 31,000 $ 57
Pakistan State Oil 9,230 94
--------
344
--------
PERU -- 2.5%
Telefonica del Peru "B" 154,300 327
Credicorp* 38,084 695
Souther Peru Copper* 20,500 341
Telefonica del Peru "A" 157,600 337
--------
1,700
--------
PHILIPPINES -- 3.0%
Aboitiz Equity Ventures 1,389,000 287
Ayala Land "B" 81,300 111
Bacnotan Cement* 124,500 101
C & P Homes 83,000 64
DMCI Holdings 416,000 259
Fil-Estate Land 70,000 64
Filinvest Land 722,000 311
Keppel Philippine Holdings "B" 203,500 59
Manila Mining "B" 27,800,000 48
Metro Pacific 1,889,000 448
Philippine Long Distance 2,320 137
Philippine Long Distance ADR 1,880 111
--------
2,000
--------
POLAND -- 0.1%
Agros Holdings "C" 7,111 86
--------
PORTUGAL -- 4.0%
Capital Portugal Fund 4,900 447
Cimentos de Portugal 29,650 542
Empresa Fabril de Maquinas
Electricas 34,300 272
Portucel Industrial Empresa 89,000 494
Sonae Investimentos 41,760 941
--------
2,696
--------
RUSSIA -- 0.4%
Mosenergo ADS 33,700 240
--------
SOUTH AFRICA -- 7.3%
Barlow 20,600 274
Clinic Holdings 319,400 380
Highstone Property Fund 665,200 258
Iscor 744,632 631
Lonrho 312,300 920
Malbak 68,390 402
Murray & Roberts 51,325 315
Pepsi International Africa 3,000 300
Randgold 47,000 201
Sasol 58,843 510
Servgro International 73,600 428
Waltons Stationary 84,500 279
--------
4,898
--------
23
<PAGE>
STATEMENT OF NET ASSETS/SCHEDULE OF INVESTMENTS
================================================================================
SEI INTERNATIONAL TRUST -- FEBRUARY 29, 1996
EMERGING MARKETS
EQUITY PORTFOLIO--CONTINUED
- --------------------------------------------------------------------------------
MARKET
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
SOUTH KOREA -- 2.7%
Korea Electric Power ADR 15,950 $ 387
Korea Fund 11,400 252
Korea Investment Fund 14,133 150
Korea Mobile Telephone GDR 10,300 484
Pohang Iron & Steel ADR 14,700 368
Samsung Electronics GDS 2,900 154
--------
1,795
--------
TAIWAN -- 1.7%
Advanced Semiconductors
Engineering GDR 10,250 126
China Steel 10,000 156
ROC Taiwan Fund 27,400 264
Siliconware Precision GDR 10,300 145
Taiwan Equity Fund 32,200 318
Taiwan Fund 50 1
Yageo GDR 15,332 123
--------
1,133
--------
THAILAND -- 3.9%
Banpu Public "F" 5,400 148
Bangkok Bank SER 18,400 167
Bangkok Bank SER 2 60,800 550
Electric Generating "F"* 55,010 218
Land and House "F" 9,900 197
Phatra Thanakit SER 99,000 727
Regional Container "F" 14,700 175
Siam Cement 2,100 109
Thai Farmers Bank SER 36,100 267
United Communications 4,600 65
Wongpaitoon Footwear "F" 17,000 13
--------
2,636
--------
TURKEY -- 1.6%
Alarko 43,000 18
Cimentas 150,800 84
Erciyas Biracilik GDR 26,700 344
Koc Holdings 735,000 145
Tat Konservecili 471,300 328
Trakya Cam 1,380,000 188
--------
1,107
--------
Total Foreign Common Stocks
(Cost $55,077) 55,107
--------
FOREIGN PREFERRED STOCKS -- 12.6%
BRAZIL -- 12.2%
Banco Bradesco 134,143,979 1,519
Brahma 550,000 249
Cimento Itau 380,000 109
Coteminas 460,000 182
- --------------------------------------------------------------------------------
SHARES/FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Electrobras "B" 6,596,000 $ 1,836
Lojas Renner 7,700,000 274
Marco Polo "B" 730,000 133
Schulz 1,200,000 33
Petrol Brasileiros 7,330,000 815
Randon Participacoes 146,500,000 106
Sadia Concordia 453,000 327
Telebras 20,709,000 1,088
Telemig "B" 2,900,000 194
Telerj 5,286,000 391
Vale Rio Doce 4,044,000 628
Weg 630,000 316
--------
8,200
--------
PHILIPPINES -- 0.4%
Philippine Long Distance 7,300 243
--------
Total Foreign Preferred Stocks
(Cost $7,418) 8,443
--------
CONVERTIBLE BONDS -- 1.3%
Bangkok Bank
3.250%, 03/03/04 150 169
Barlow
7.000%, 09/20/04 190 309
Ban Pu Coal
3.500%, 08/25/04 105 147
United Microelectronics
1.250%, 06/08/04 233 244
--------
Total Convertible Bonds
(Cost $820) 869
--------
REPURCHASE AGREEMENT -- 6.2%
State Street Bank
4.00%, dated 2/29/96, matures
3/1/96, repurchase price
$4,198,000 (collateralized by
U.S. Treasury Bond, maturity
2/15/23, interest rate 7.125%) 4,198 4,198
--------
Total Repurchase Agreement
(Cost $4,198) 4,198
--------
Total Investments -- 102.1%
(Cost $67,513) 68,617
--------
OTHER ASSETS AND LIABILITIES--(2.1%)
Other Assets and Liabilities, Net (1,436)
--------
24
<PAGE>
- --------------------------------------------------------------------------------
FACE AMOUNT MARKET
DESCRIPTION (000) VALUE (000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio shares of Class A (unlimited
authorization -- no par value) based
on 6,147,072 outstanding shares of
beneficial interest $ 66,242
Accumulated net realized gain
on investments 37
Net unrealized depreciation on forward
foreign currency contracts, foreign
currency and translation of other assets
and liabilities in foreign currency (3)
Net unrealized appreciation
on investments 1,104
Accumulated net investment
loss (199)
--------
Total Net Assets:-- 100.0% $ 67,181
========
Net Asset Value, Offering Price and
Redemption Price Per Share --
Class A $ 10.93
========
* NON-INCOME PRODUCING SECURITY
ADR--AMERICAN DEPOSITORY RECEIPT
ADS--AMERICAN DEPOSITORY SHARES
GDR--GLOBAL DEPOSITORY RECEIPT
GDS--GLOBAL DEPOSITORY SHARES
INTERNATIONAL FIXED
INCOME PORTFOLIO
FOREIGN BONDS -- 84.0%
AUSTRALIA -- 1.3%
Australian Government
9.500%, 08/15/03 668 536
Queensland Treasury
8.000%, 08/14/01 756 567
--------
1,103
--------
BELGIUM -- 4.0%
Kingdom of Belgium
5.100%, 11/21/04 99,500 3,341
--------
CANADA -- 1.9%
Canadian Government
6.500%, 06/01/04 750 515
9.000%, 06/01/25 1,345 1,080
--------
1,595
--------
DENMARK -- 3.0%
Kingdom of Denmark
9.000%, 11/15/98 395 75
- --------------------------------------------------------------------------------
FACE AMOUNT MARKET
DESCRIPTION (000) VALUE (000)
- --------------------------------------------------------------------------------
8.000%, 11/15/01 2,580 $ 481
8.000%, 03/15/06 8,325 1,503
7.000%, 11/10/24 3,200 477
--------
2,536
--------
FRANCE -- 10.5%
French Treasury Bill
7.750%, 04/12/00 4,840 $ 1,035
Government of France
8.125%, 05/25/99 20,340 4,368
5.500%, 04/25/04 14,220 2,640
8.500%, 10/25/08 880 199
8.500%, 04/25/23 2,600 578
--------
8,820
--------
GERMANY -- 19.3%
Bundesschatzanweisungen
6.875%, 02/24/99 5,430 3,935
Deutschland Republic
6.250%, 01/04/24 1,070 641
German Unity Fund
8.500%, 02/20/01 8,770 6,739
KFW International Finance
6.625%, 04/15/03 1,140 788
Treuhandanstalt
6.500%, 04/23/03 6,060 4,200
--------
16,303
--------
ITALY -- 6.3%
Italian Government
8.500%, 08/01/99 2,670,000 1,663
9.500%, 01/01/05 3,485,000 2,144
10.500%, 09/01/05 2,320,000 1,514
--------
5,321
--------
JAPAN -- 18.6%
Asian Development Bank
5.000%, 02/05/03 257,000 2,723
Export-Import Bank
4.375%, 10/01/03 58,000 592
European Investment Bank
6.625%, 03/15/00 79,000 873
Japanese Development Bank
5.000%, 10/01/99 60,000 627
6.500%, 09/20/01 285,000 3,219
Republic of Austria
6.250%, 10/16/03 181,000 2,071
4.500%, 09/28/05 70,000 722
3.750%, 02/03/09 124,000 1,183
World Bank
4.500%, 06/20/00 318,100 3,293
4.500%, 03/20/03 39,800 413
--------
15,716
--------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
25
<PAGE>
SCHEDULE OF INVESTMENTS
================================================================================
SEI INTERNATIONAL TRUST -- FEBRUARY 29, 1996
INTERNATIONAL FIXED INCOME
PORTFOLIO--CONCLUDED
- --------------------------------------------------------------------------------
FACE AMOUNT MARKET
DESCRIPTION (000)(1) VALUE (000)
- --------------------------------------------------------------------------------
NETHERLANDS -- 5.7%
Kingdom of Netherlands
7.500%, 06/15/99 5,015 $ 3,288
5.750%, 01/15/04 2,630 1,553
--------
4,841
--------
NORWAY -- 1.4%
Government of Norway
7.000%, 05/31/01 5,110 831
9.500%, 10/31/02 1,700 308
--------
1,139
--------
SPAIN -- 4.6%
Kingdom of Spain
12.250%, 03/25/00 155,840 1,391
10.300%, 06/15/02 286,830 2,481
--------
3,872
--------
SWEDEN -- 1.8%
Kingdom of Sweden
10.250%, 05/05/03 3,100 501
Swedish Treasury Note
11.000%, 01/21/99 6,300 1,014
--------
1,515
--------
UNITED KINGDOM -- 5.6%
European Investment Bank
7.000%, 03/30/98 200 307
United Kingdom Conversion
9.500%, 04/18/05 85 143
United Kingdom Treasury
7.000%, 11/06/01 1,290 1,929
8.000%, 12/07/15 1,580 2,346
--------
4,725
--------
Total Foreign Bonds
(Cost $72,260) 70,827
--------
- --------------------------------------------------------------------------------
FACE AMOUNT MARKET
DESCRIPTION (000)(1) VALUE (000)
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 9.4%
United States Treasury Bill
0.000%, 05/02/96 7,500 $ 7,435
United States Treasury Bond
6.875%, 08/15/25 90 94
United States Treasury Note
5.875%, 11/15/05 100 98
5.250%, 01/31/01 190 186
United States Treasury STRIP
Interest Only
02/15/04 230 142
-------
Total U.S. Treasury Obligations
(Cost $7,969) 7,955
-------
Total Investments -- 93.4%
(Cost $80,229) $78,782
=======
(1) IN LOCAL CURRENCY
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
26
<PAGE>
This Page Left Intentionally Blank
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES (000)
================================================================================
FEBRUARY 29, 1996
------------------
INTERNATIONAL
FIXED INCOME
------------------
ASSETS:
Investment securities (Cost $80,229) $78,782
Cash 2,112
Foreign currency (Cost $2,188) 2,175
Interest receivable 2,401
Investment securities sold 14,433
Unrealized gain on forward foreign
currency contracts 591
Other assets 503
--------
Total Assets 100,997
--------
LIABILITIES:
Investment securities purchased 4,688
Capital shares redeemed 11,878
Other liabilities 113
--------
Total Liabilities 16,679
--------
Net Assets $84,318
========
NET ASSETS:
Portfolio shares of Class A (unlimited
authorization -- no par value)
based on 7,832,978 outstanding
shares of beneficial interest 85,549
Accumulated net realized gain on
investments 770
Net unrealized appreciation on forward
foreign currency contracts,
foreign currencies and translation of
other assets and liabilities denominated
in foreign currencies 569
Net unrealized depreciation
on investments (1,447)
Accumulated net investment loss (1,123)
--------
Net Assets $84,318
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE-- CLASS A $ 10.77
========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
28
<PAGE>
STATEMENT OF OPERATIONS (000)
================================================================================
FOR THE PERIOD ENDED FEBRUARY 29, 1996
<TABLE>
<CAPTION>
------------- -------- -------- -------- -------------
PACIFIC EMERGING INTERNATIONAL
INTERNATIONAL EUROPEAN BASIN MARKETS FIXED
EQUITY EQUITY EQUITY EQUITY INCOME
------------- -------- -------- -------- --------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ 8,605 $ 1,303 $ 595 $ 338 $ --
Interest 351 197 125 192 3,605
Less: Foreign Taxes Withheld (853) (140) (64) (23) (78)
-------- -------- -------- -------- --------
Total Investment Income 8,103 1,360 656 507 3,527
-------- -------- -------- -------- --------
EXPENSES:
Management fees 1,431 380 354 201 372
Less management fees waived (119) (115) (148) (201) (140)
Reimbursement by Manager -- -- -- (29) --
Investment advisory fees 1,524 225 237 297 186
Less investment advisory fees
waived -- -- -- -- (31)
Custodian/wire agent fees 339 72 70 227 69
Professional fees 58 15 13 14 16
Registration & filing fees 117 6 6 18 21
Printing fees 71 14 13 9 15
Trustee fees 32 5 4 2 5
Pricing fees 29 9 10 12 6
Distribution fees 502 79 74 26 92
Amortization of deferred
organization costs 4 6 6 -- 8
Miscellaneous fees 8 4 1 1 (2)
-------- -------- -------- -------- --------
Total Expenses 3,996 700 640 577 617
-------- -------- -------- -------- --------
NET INVESTMENT INCOME/(LOSS) 4,107 660 16 (70) 2,910
-------- -------- -------- -------- --------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY
TRANSACTIONS:
Net realized gain (loss) from
security transactions 21,730 1,829 (688) 180 2,362
Net realized gain (loss) on
forward foreign currency
contracts and foreign
currency transactions (983) 2 684 (125) 2,856
Net change in unrealized
appreciation (depreciation)
on forward foreign currency
contracts, foreign currencies,
and translation of other assets
and liabilities denominated
in foreign currencies 1,021 11 81 (2) 97
Net change in unrealized
appreciation (depreciation)
on investments 24,496 9,274 6,898 1,050 (2,509)
-------- -------- -------- -------- --------
NET INCREASE IN NET ASSETS
FROM OPERATIONS $ 50,371 $ 11,776 $ 6,991 $ 1,033 $ 5,716
======== ======== ======== ======== ========
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
29
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (000)
================================================================================
FOR THE PERIODS ENDED FEBRUARY 29,
<TABLE>
<CAPTION>
---------------------- ---------------------- ----------------------
PACIFIC
INTERNATIONAL EUROPEAN BASIN
EQUITY EQUITY EQUITY
---------------------- ---------------------- ----------------------
1996 1995 1996 1995(2) 1996 1995(2)
---------------------- ---------------------- ----------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ 4,107 $ 6,137 $ 660 $ 211 $ 16 $ (81)
Net realized gain (loss) from
security transactions 21,730 36,204 1,829 (165) (688) (37)
Net realized gain (loss) on
forward foreign currency
contracts and foreign currency
transactions (983) (25,138) 2 (154) 684 (74)
Net change in unrealized
appreciation (depreciation)
on forward foreign currency
contracts, foreign currencies,
and translation of other assets
and liabilities denominated in
foreign currencies 1,021 10,819 11 (13) 81 (81)
Net change in unrealized
appreciation (depreciation)
on investments 24,496 (58,990) 9,274 125 6,898 (4,673)
--------- --------- --------- --------- --------- ---------
Net increase (decrease) in net
assets from operations 50,371 (30,968) 11,776 4 6,991 (4,946)
--------- --------- --------- --------- --------- ---------
DIVIDENDS DISTRIBUTED FROM:
Net investment income:
Class A (5,932) -- (553) (165) (782) --
Class D (3) -- -- -- -- --
Net realized gains:
Class A (28,871) (23,038) -- -- -- --
Class D (17) (2) -- -- -- --
--------- --------- --------- --------- --------- ---------
Total dividends distributed (34,823) (23,040) (553) (165) (782) --
--------- --------- --------- --------- --------- ---------
CAPITAL SHARE TRANSACTIONS(1):
Class A:
Proceeds from shares issued 203,255 340,533 48,078 41,513 67,638 49,353
Shares issued in lieu of
cash distributions 20,015 14,427 494 144 694 --
Cost of shares repurchased (219,674) (475,951) (17,952) (5,218) (38,528) (11,359)
--------- --------- --------- --------- --------- ---------
Increase (decrease) in net
assets derived from
Class A 3,596 (120,991) 30,620 36,439 29,804 37,994
--------- --------- --------- --------- --------- ---------
Class D:
Proceeds from shares issued 146 53 -- -- -- --
Shares issued in lieu of cash
distributions 19 2 -- -- -- --
Cost of shares repurchased (18) -- -- -- -- --
--------- --------- --------- --------- --------- ---------
Increase in net assets
derived from Class D 147 55 -- -- -- --
--------- --------- --------- --------- --------- ---------
INCREASE (DECREASE) IN NET ASSETS
DERIVED FROM CAPITAL SHARE
TRANSACTIONS 3,743 (120,936) 30,620 36,439 29,804 37,994
--------- --------- --------- --------- --------- ---------
Net increase (decrease)
in net assets 19,291 (174,944) 41,843 36,278 36,013 33,048
NET ASSETS:
Beginning of period 328,554 503,498 36,278 -- 33,048 --
--------- --------- --------- --------- --------- ---------
End of period $ 347,845 $ 328,554 $ 78,121 $ 36,278 $ 69,061 $ 33,048
========= ========= ========= ========= ========= =========
(1) CAPITAL SHARE TRANSACTIONS:
Class A:
Shares issued 20,144 32,225 4,241 4,171 7,275 5,018
Shares issued in lieu of
cash distributions 2,037 1,437 41 15 -- --
Shares repurchased (21,676) (45,194) (1,599) (523) (4,144) (1,234)
--------- --------- --------- --------- --------- ---------
Total Class A transactions 505 (11,532) 2,683 3,663 3,131 3,784
--------- --------- --------- --------- --------- ---------
Class D:
Shares issued 15 5 -- -- -- --
Shares issued in lieu of
cash distributions 2 -- -- -- -- --
Shares repurchased (2) -- -- -- -- --
--------- --------- --------- --------- --------- ---------
Total Class D transactions 15 5 -- -- -- --
--------- --------- --------- --------- --------- ---------
Net increase (decrease)
in capital shares 520 (11,527) 2,683 3,663 3,131 3,784
========= ========= ========= ========= ========= =========
</TABLE>
<TABLE>
<CAPTION>
---------------------- ----------------------
EMERGING INTERNATIONAL
MARKETS FIXED
EQUITY INCOME
---------------------- ----------------------
1996 1995(3) 1996 1995
---------------------- ----------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ (70) $ 6 $ 2,910 $ 1,603
Net realized gain (loss) from
security transactions 180 -- 2,362 (927)
Net realized gain (loss) on
forward foreign currency
contracts and foreign currency
transactions (125) 1 2,856 670
Net change in unrealized
appreciation (depreciation)
on forward foreign currency
contracts, foreign currencies,
and translation of other assets
and liabilities denominated in
foreign currencies (2) (1) 97 313
Net change in unrealized
appreciation (depreciation)
on investments 1,050 54 (2,509) 1,420
--------- --------- --------- ---------
Net increase (decrease) in net
assets from operations 1,033 60 5,716 3,079
--------- --------- --------- ---------
DIVIDENDS DISTRIBUTED FROM:
Net investment income:
Class A (11) -- (6,969) (2,335)
Class D -- -- -- --
Net realized gains:
Class A (143) -- (665) (67)
Class D -- -- -- --
--------- --------- --------- ---------
Total dividends distributed (154) -- (7,634) (2,402)
--------- --------- --------- ---------
CAPITAL SHARE TRANSACTIONS(1):
Class A:
Proceeds from shares issued 64,401 5,264 70,012 36,006
Shares issued in lieu of
cash distributions 148 -- 6,218 1,486
Cost of shares repurchased (3,547) (24) (32,574) (19,267)
--------- --------- --------- ---------
Increase (decrease) in net
assets derived from
Class A 61,002 5,240 43,656 18,225
--------- --------- --------- ---------
Class D:
Proceeds from shares issued -- -- -- --
Shares issued in lieu of cash
distributions -- -- -- --
Cost of shares repurchased -- -- -- --
--------- --------- --------- ---------
Increase in net assets
derived from Class D -- -- -- --
--------- --------- --------- ---------
INCREASE (DECREASE) IN NET ASSETS
DERIVED FROM CAPITAL SHARE
TRANSACTIONS 61,002 5,240 43,656 18,225
--------- --------- --------- ---------
Net increase (decrease)
in net assets 61,881 5,300 41,738 18,902
NET ASSETS:
Beginning of period 5,300 -- 42,580 23,678
--------- --------- --------- ---------
End of period $ 67,181 $ 5,300 $ 84,318 $ 42,580
========= ========= ========= =========
(1) CAPITAL SHARE TRANSACTIONS:
Class A:
Shares issued 5,959 518 6,081 3,504
Shares issued in lieu of
cash distributions 1 -- 559 150
Shares repurchased (329) (2) (2,894) (1,882)
--------- --------- --------- ---------
Total Class A transactions 5,631 516 3,746 1,772
--------- --------- --------- ---------
Class D:
Shares issued -- -- -- --
Shares issued in lieu of
cash distributions -- -- -- --
Shares repurchased -- -- -- --
--------- --------- --------- ---------
Total Class D transactions -- -- -- --
--------- --------- --------- ---------
Net increase (decrease)
in capital shares 5,631 516 3,746 1,772
========= ========= ========= =========
<FN>
(2) EUROPEAN EQUITY AND PACIFIC BASIN EQUITY COMMENCED OPERATIONS ON APRIL 29, 1994.
(3) EMERGING MARKETS EQUITY COMMENCED OPERATIONS ON JANUARY 17, 1995.
</FN>
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
30
<PAGE>
FINANCIAL HIGHLIGHTS
================================================================================
FOR THE PERIODS ENDED FEBRUARY 29,
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)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CLASS A
1996 $ 9.59 $ 0.14 $ 1.45 $(0.19) $(0.99) $-- $10.00 17.30% $347,646
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) 9.65 0.36 35,829
CLASS D
1996 $ 9.56 $ 0.04 $ 1.50 $(0.18) $(0.99) -- $ 9.93 16.77% $ 199
1995(1) 10.81 0.01 (0.67) -- (0.59) -- 9.56 (6.33) 51
- --------------------------------------------------------------------------------------------------------------------------------
EUROPEAN EQUITY PORTFOLIO
- --------------------------------------------------------------------------------------------------------------------------------
CLASS A
1996 $ 9.90 $ 0.11 $ 2.39 $(0.10) $-- $-- $12.30 25.15% $ 78,121
1995(2) 10.00 0.06 (0.11) (0.05) -- -- 9.90 (0.40) 36,278
- --------------------------------------------------------------------------------------------------------------------------------
PACIFIC BASIN EQUITY PORTFOLIO
- --------------------------------------------------------------------------------------------------------------------------------
CLASS A
1996 $ 8.73 $ 0.03 $ 1.36 $(0.13) $-- $-- $ 9.99 15.96% $ 69,061
1995(3) 10.00 (0.02) (1.25) -- -- -- 8.73 (12.70) 33,048
- --------------------------------------------------------------------------------------------------------------------------------
EMERGING MARKETS EQUITY PORTFOLIO
- --------------------------------------------------------------------------------------------------------------------------------
CLASS A
1996 $10.27 $(0.02) $ 0.72 $ -- $(0.04) $-- $10.93 6.83% $ 67,181
1995(4) 10.00 0.01 0.26 -- -- -- 10.27 2.70 5,300
- --------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL FIXED INCOME PORTFOLIO
- --------------------------------------------------------------------------------------------------------------------------------
CLASS A
1996 $10.42 $ 0.58 $ 0.89 $(1.02) $(0.10) $-- $10.77 13.96% $ 84,318
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
</TABLE>
<TABLE>
<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
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CLASS A
1996 1.25% 1.29% 1.29% 1.25% 102%
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
CLASS D
1996 1.65% 0.58% 1.90% 0.33% 102%
1995(1) 1.47 0.42 1.48 0.41 64
- --------------------------------------------------------------------------------
EUROPEAN EQUITY PORTFOLIO
- --------------------------------------------------------------------------------
CLASS A
1996 1.30% 1.23% 1.51% 1.02% 48%
1995(2) 1.30 1.02 1.57 0.75 29
- --------------------------------------------------------------------------------
PACIFIC BASIN EQUITY PORTFOLIO
- --------------------------------------------------------------------------------
CLASS A
1996 1.30% 0.03% 1.60% (0.27)% 41%
1995(3) 1.30 (0.41) 1.68 (0.79) 9
- --------------------------------------------------------------------------------
EMERGING MARKETS EQUITY PORTFOLIO
- --------------------------------------------------------------------------------
CLASS A
1996 1.95% (0.23)% 2.72% (1.00)% 104%
1995(4) 1.95 1.79 4.98 (1.24) --
- --------------------------------------------------------------------------------
INTERNATIONAL FIXED INCOME PORTFOLIO
- --------------------------------------------------------------------------------
CLASS A
1996 1.00% 4.70% 1.27% 4.43% 269%
1995 1.00 4.68 1.30 4.38 303
1994(5) 1.00 3.81 1.61 3.20 126
<FN>
(1) INTERNATIONAL EQUITY CLASS D 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.
</FN>
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
31
<PAGE>
NOTES TO FINANCIAL STATEMENTS
================================================================================
FEBRUARY 29, 1996
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.
The Trust is registered under the Investment Company Act of 1940, as
amended, as an open-end investment management company with five portfolios: the
International Equity Portfolio (formerly the Core 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's prospectus provides a
description of each Funds investment objectives, policies, and strategies. The
Trust is registered to offer Class A and Class D Fund shares of each of the
Portfolios.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by the
Portfolios in the preparation of the financial statements. The policies are in
conformity with generally accepted accounting principles.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates.
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. Debt
obligations sixty days or less remaining until maturity are valued at amortized
cost which approximates 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 financial statements.
The Portfolios may be subject to taxes imposed by countries in which they
invest with respect to their investments in issuers existing or operating in
such countries. Such taxes are generally based on either income earned or
repatriated. The Portfolios accrue such taxes when the related income is earned.
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
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 Portfolios may also invest in tri-party repurchase agreements.
Securities held as collateral for tri-party repurchase agreements are maintained
in a segregated 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 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 transactions.
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.
32
<PAGE>
The Portfolios do isolate the effect of fluctuations in foreign currency
rates when determining the gain or loss upon sale or maturity of foreign
currency denominated debt obligations pursuant to the Federal income tax
regulations. Such amounts are categorized as foreign currency gain or loss for
both financial reporting and income tax reporting purposes.
The Portfolios report 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.
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 realize gains and losses at the time forward contracts are
extinguished. Unrealized gains or losses on outstanding positions in forward
foreign currency contracts held at the close of the year are 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 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 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 classes on the basis of relative daily net assets.
EXPENSES -- Expenses that are directly related to one of the Portfolios are
charged directly to that Portfolio. Other operating expenses of the Portfolios
are prorated to the Portfolios on the basis of relative net assets.
DISTRIBUTIONS -- Distributions from net investment income and net realized
capital gains are determined in accordance with U.S. Federal income tax
regulations, which may differ from those amounts determined under generally
accepted accounting principles. These 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 that the difference arises.
Accordingly, for the International Equity Portfolio, $20,000 was
reclassified from accumulated net realized gain on investments to undistributed
net investment income; and $9,798,000 was reclassified from paid in capital to
accumulated net realized gain on foreign currency transactions. In addition, the
following permanent differences primarily attributable to realized foreign
exchange gains and losses, have been reclassified from accumulated net realized
gain (loss) on foreign currency transactions to undistributed net investment
income:
(000)
--------
International Equity $ 100
European Equity (96)
Pacific Basin Equity 757
Emerging Markets Equity (124)
International Fixed Income 2,482
These reclassifications have no effect on net assets or net asset values
per share.
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. Dividend income is
recognized on the ex-dividend date and interest income is recognized using the
accrual method.
33
<PAGE>
NOTES TO FINANCIAL STATEMENTS
================================================================================
FEBRUARY 29, 1996
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 .45% of the average
daily net assets of the International Equity Portfolio, .60% of the average
daily net assets of the International Fixed Income Portfolio, .65% of the
average daily net assets of the European Equity, Pacific Basin Equity and
Emerging Markets Equity Portfolios. The Manager has voluntarily agreed to waive
all or a portion of its fees and, if necessary, reimburse other operating
expenses in order to limit the operating expenses of each Portfolio.
SEI Financial Management Corporation (SFM) acts as the investment advisor
for the International Equity, European Equity, Pacific Basin and the Emerging
Markets Equity Portfolios. Under the Investment Advisory Agreement, SFM receives
an annual fee of .475% of the average daily net assets of the International
Equity and European Equity Portfolios, .55% of the Pacific Basin Equity
Portfolio's average daily net assets 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. serves as Sub-Advisor to the International Equity Portfolio, Montgomery
Asset Management, L.P. serves as Sub-Advisor to the Emerging Markets Equity
Portfolio, Morgan Grenfell Investment Services Limited serves as Sub-Advisor to
the European Equity Portfolio, and Schroder Capital Management International
Limited serves as Sub-Advisor to the Pacific Basin Equity Portfolio.
Strategic Fixed Income, L.P., the advisor 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 all
or a portion of its fee, in conjunction with the Manager, in order to limit the
total operating expenses of the Portfolio.
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 distribution plans which provide
for the Trust to reimburse the Distributor for certain distribution-related
expenses incurred by the Distributor. Such expenses may not exceed .30% of the
average daily net assets of a Portfolio, provided those expenses are permissible
as to both type and amount under a budget approved and monitored by the Board of
Trustees.
In addition to providing for the reimbursement payments described above,
the Class D distribution plan provides for an additional payment to the
Distributor. This additional payment may be used to compensate financial
institutions that provide distribution-related services to their customers. The
total amount of distribution-related expenses for the Class D shares of the
Portfolios may not exceed .60%
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. ORGANIZATIONAL COSTS
Organizational costs have been capitalized by the Portfolio and are being
amortized using the straight line method over sixty months beginning with the
commencement of 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.
34
<PAGE>
5. FORWARD FOREIGN CURRENCY CONTRACTS
The Portfolios enter into forward foreign currency exchange contracts as hedges
against portfolio positions. Such contracts, which are designed to 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 securities; they simply establish an exchange rate at a future date. Also,
although such contracts tend to minimize 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 29, 1996:
IN UNREALIZED
MATURITY CONTRACTS TO EXCHANGE APPRECIATION
DATES DELIVER/RECEIVE FOR (DEPRECIATION)
- ----------------- --------------- ------------ --------------
INTERNATIONAL EQUITY PORTFOLIO:
- --------------------------------------------------------------
FOREIGN CURRENCY SALES:
03/04/96 CH 550,000 $ 458,984 $ (727)
03/04/96 UK 1,375,000 2,105,666 (2,604)
03/04/96 SD 494,000 349,933 (198)
------------ ---------
$ 2,914,583 $ (3,529)
============ ---------
FOREIGN CURRENCY PURCHASE:
03/04/96 J(YEN) 102,786,000 $ 978,914 $ 1,871
============ ---------
$ (1,658)
=========
EUROPEAN EQUITY PORTFOLIO:
- --------------------------------------------------------------
FOREIGN CURRENCY SALES:
03/04/96 AD 15,607,872 $ 1,509,757 $ 14,226
03/05/96 UK 8,210 12,572 10
------------ ---------
$ 1,522,329 $ 14,236
============ ---------
FOREIGN CURRENCY PURCHASE:
03/04/96 UK 19,133 $ 29,301 $ (138)
============ ---------
$ 14,098
=========
PACIFIC BASIN EQUITY PORTFOLIO:
- ---------------------------------------------------------------
FOREIGN CURRENCY PURCHASES:
03/01/96 J(YEN)20,572,279 $ 195,926 $ (1,277)
03/04/96 J(YEN)14,411,250 137,250 (935)
--------- ---------
$ 331,176 $ (2,212)
========= =========
INTERNATIONAL FIXED INCOME PORTFOLIO:
- ---------------------------------------------------------------
FOREIGN CURRENCY SALES:
03/07/96-04/18/96 AD 5,546,065 $ 4,230,883 $ (135,174)
03/07/96-06/20/96 BF 152,350,955 5,046,272 63,413
03/07/96-06/20/96 DM 83,734,299 57,144,793 621,708
03/07/96-06/20/96 DK 73,323,542 11,801,933 163,300
03/07/96-06/20/96 SP 818,162,585 6,580,800 (14,143)
03/07/96-06/20/96 FF 154,177,096 30,646,455 115,681
03/07/96-06/20/96 UK 29,263,889 44,640,251 209,401
03/07/96-06/20/96 IT 26,981,157,758 17,212,265 (346,437)
03/07/96-06/20/96 J(YEN) 7,339,125,890 70,259,126 1,071,672
03/07/96-04/18/96 NG 11,083,832 6,750,471 113,126
03/07/96-06/20/96 SK 42,221,800 6,241,041 (31,220)
03/21/96-06/20/96 CD 1,809,777 1,318,588 4,065
03/21/96-06/20/96 CH 11,306,282 9,473,752 246,399
03/07/96-06/30/96 NK 10,659,774 1,665,604 5,905
03/21/96-04/18/96 NZ 2,343,965 1,573,642 (62,865)
03/21/96 XE 2,612,071 3,288,686 15,583
------------ ----------
$227,874,562 $2,040,414
============ ----------
FOREIGN CURRENCY PURCHASES:
03/01/96-06/20/96 DM 102,395,680 $ 69,876,627 $ (725,380)
03/01/96-06/20/96 IT 33,654,133,466 21,482,184 408,728
03/07/96-06/20/96 SP 989,829,153 7,954,100 (8,229)
03/07/96-06/20/96 FF 92,756,114 17,259,873 (100,772)
03/20/96-06/20/96 UK 25,679,764 39,159,074 (186,210)
03/21/96-06/20/96 AD 5,562,691 4,236,739 110,207
03/21/96 BF 35,584,710 1,178,417 (25,447)
03/21/96-04/18/96 CD 1,917,062 1,396,787 1,422
03/21/96-04/18/96 CH 7,282,316 6,088,361 (211,696)
03/21/96-06/20/96 DK 77,895,650 13,730,158 (124,980)
03/21/96-06/20/96 J(YEN) 7,849,179,736 75,295,977 (496,309)
03/21/96-06/20/96 NG 6,625,870 4,040,839 (19,558)
03/21/96 NK 13,549,314 2,117,001 (12,464)
03/21/96-04/18/96 NZ 2,339,201 1,567,900 45,260
03/21/96-06/20/96 SK 39,672,300 5,870,231 (61,505)
03/21/96 XE 2,909,062 3,662,607 (42,664)
------------ -----------
$274,916,875 $(1,449,597)
============ -----------
$ 590,817
============
CURRENCY LEGEND
AD Australian Dollar MR Malaysian Ringgitt
BF Belgian Franc NG Netherlands Guilder
CD Canadian Dollar NK Norwegian Kroner
CH Swiss Frank NZ New Zealand Dollar
DK Danish Kroner SD Singapore Dollar
DM German Mark SK Swedish Krona
FF French Franc SP Spanish Peseta
IT Italian Lira UK British Pounds Sterling
J(YEN) Japanese Yen XE European Currency Unit
35
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Concluded)
================================================================================
FEBRUARY 29, 1996
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 29, 1996, were as follows:
PURCHASES SALES
(000) (000)
--------- --------
International Equity Portfolio $313,924 $355,100
European Equity Portfolio 41,082 24,083
Pacific Basin Equity Portfolio 48,305 19,295
Emerging Markets Equity Portfolio 86,563 28,557
International Fixed Income Portfolio 199,208 156,257
For Federal income tax purposes, the cost of securities owned at February
29, 1996 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 February 29, 1996 for the Portfolios is as follows:
NET
UNREALIZED
APPRECIATED DEPRECIATED APPRECIATION/
SECURITIES SECURITIES (DEPRECIATION)
(000) (000) (000)
----------- ----------- -------------
International Equity
Portfolio $33,410 $7,085 $26,325
European Equity Portfolio 10,299 900 9,399
Pacific Basin Equity
Portfolio 3,748 1,523 2,225
Emerging Markets Equity
Portfolio 3,849 2,745 1,104
International Fixed
Income Portfolio 574 2,021 (1,447)
At February 29, 1996 the Pacific Basin Equity Portfolio had available
realized capital losses to offset future net capital gains of $23,000 and
$259,000 expiring at the fiscal year ending 2003 and 2004, respectively.
Under current tax law, capital losses realized after October 31 may be
deferred and treated as occurring on the first day of the following fiscal year.
The Pacific Basin Equity Portfolio had deferred losses of $427,000 which will
be treated as arising on the first day of the fiscal year ending
February 28, 1997.
7. CONCENTRATION OF RISKS
Each Portfolio invests in securities of foreign issuers in various countries.
These investments may involve certain considerations and risks not typically
associated with investments in the United States, as a result of, among other
factors, the possibility of future political and economic developments and the
level of governmental supervision and regulation of securities markets in the
respective countries. The International Fixed Income Portfolio invests in debt
securities, the market value of which may change in response to interest rate
changes. Also, the ability of the issuers of debt securities held by the
Portfolio to meet their obligations may be a affected by economic and political
developments in a specific country, industry or region.
8. SUBSEQUENT EVENT
Effective March 25, 1996, all the assets and liabilities of the European Equity
Portfolio and Pacific Basin Portfolio were trasferred to the International
Equity Portfolio in a tax-free reorganization pursuant to a Reorganization
Agreement approved by the shareholders. The net asset value of the European
Equity and Pacific Basin Portfolios of $81,709,082 and $68,655,364,
respectively, were transferred to the International Equity Portfolio, in
exchange for 8,126,302 and 6,828,057 shares of the International Equity
Portfolio; those shares were then distributed to shareholders in liquidation of
the European Equity and Pacific Basin Equity Portfolios.
36
<PAGE>
SHAREHOLDERS VOTING RESULTS (UNAUDITED)
================================================================================
There was a special meeting of shareholders scheduled for June 16, 1995 at which
shareholders of the Pacific Basin Equity, International Equity, Emerging Markets
Equity, European Equity and International Fixed Income Portfolios (each a
"Portfolio," and together, the "Portfolios") voted on a series of proposals. The
meeting was adjourned until August 15, 1995 with respect to all portfolios
except the International Fixed Income Portfolio. With respect to the
International Fixed Income Portfolio, none of the proposals passed due to a
failure to reach a "majority of the outstanding shares" within 60 days of the
meeting date. Each proposal and the results of the shareholder meeting are set
forth below.
I. Proposal to combine each portfolio's fundamental limitation concerning
diversification with each Portfolio's fundamental limitation concerning the
acquisition of more than 10% of the outstanding voting securities of any one
issuer, and to amend certain other language.
PACIFIC BASIN INTERNATIONAL EMERGING EUROPEAN
EQUITY EQUITY MARKETS EQUITY EQUITY
For 2,307,266.00 22,299,774.00 472,313.00 2,188,348.00
Against 74,966.00 1,366,282.00 5,901.00 65,620.00
Abstain 29,474.00 103,676.00 13,936.00 40,384.00
II. Proposal to amend each Portfolio's fundamental limitation concerning
industry concentration.
PACIFIC BASIN INTERNATIONAL EMERGING EUROPEAN
EQUITY EQUITY MARKETS EQUITY EQUITY
For 2,297,434.00 23,106,766.00 475,249.00 2,188,442.00
Against 79,617.00 564,745.00 5,920.00 65,794.00
Abstain 34,654.00 98,221.00 10,981.00 40,116.00
III. Proposal to amend each Portfolio's fundamental limitation concerning
borrowing.
PACIFIC BASIN INTERNATIONAL EMERGING EUROPEAN
EQUITY EQUITY MARKETS EQUITY EQUITY
For 2,031,428.00 21,012,367.00 476,696.00 1,898,045.00
Against 349,915.00 2,642,244.00 10,976.00 351,106.00
Abstain 30,312.00 115,121.00 4,478.00 45,200.00
IV. Proposal to amend each Portfolio's fundamental limitation concerning making
loans.
PACIFIC BASIN INTERNATIONAL EMERGING EUROPEAN
EQUITY EQUITY MARKETS EQUITY EQUITY
For 1,969,387.00 20,966,107.00 475,508.00 1,874,976.00
Against 373,334.00 2,686,534.00 12,164.00 370,708.00
Abstain 68,964.00 110,071.00 4,478.00 48,667.00
V. Proposal to reclassify each Portfolio's fundamental limitation concerning
pledging assets as non-fundamental, and to amend certain language.
PACIFIC BASIN INTERNATIONAL EMERGING EUROPEAN
EQUITY EQUITY MARKETS EQUITY EQUITY
For 2,293,339.00 21,331,251.00 476,029.00 2,170,912.00
Against 81,805.00 2,337,470.00 5,406.00 79,647.00
Abstain 36,361.00 100,961.00 10,715.00 43,743.00
VI. Proposal to reclassify each Portfolio's fundamental limitation concerning
investment in securities for the purpose of exercising control as
non-fundamental.
PACIFIC BASIN INTERNATIONAL EMERGING EUROPEAN
EQUITY EQUITY MARKETS EQUITY EQUITY
For 2,292,520.00 21,304,810.00 483,746.00 2,176,166.00
Against 80,995.00 2,365,334.00 3,657.00 71,326.00
Abstain 38,190.00 99,588.00 4,747.00 46,860.00
VII. Proposal to amend each Portfolio's fundamental limitation concerning
investment in real estate and commodities.
PACIFIC BASIN INTERNATIONAL EMERGING EUROPEAN
EQUITY EQUITY MARKETS EQUITY EQUITY
For 2,304,598.00 22,122,319.00 478,784.00 2,167,601.00
Against 74,974.00 1,529,337.00 8,888.00 85,630.00
Abstain 32,133.00 118,076.00 4,478.00 41,121.00
VIII. Proposal to reclassify each Portfolio's fundamental limitation concerning
short sales and margin sales as non-fundamental, and to amend certain
language.
PACIFIC BASIN INTERNATIONAL EMERGING EUROPEAN
EQUITY EQUITY MARKETS EQUITY EQUITY
For 2,312,105.00 21,516,304.00 476,029.00 2,182,451.00
Against 68,454.00 2,133,054.00 4,200.00 72,229.00
Abstain 31,146.00 120,374.00 11,921.00 39,872.00
IX. Proposal to reclassify each Portfolio's fundamental limitation concerning
investment in securities of investment companies as non-fundamental, and to
amend certain language.
PACIFIC BASIN INTERNATIONAL EMERGING EUROPEAN
EQUITY EQUITY MARKETS EQUITY EQUITY
For 2,318,576.00 22,833,724.00 481,752.00 2,185,301.00
Against 56,157.00 812,455.00 5,920.00 68,312.00
Abstain 36,973.00 123,554.00 4,478.00 40,739.00
X. Proposal to amend each Portfolio's fundamental limitation concerning the
issuance of senior securities.
PACIFIC BASIN INTERNATIONAL EMERGING EUROPEAN
EQUITY EQUITY MARKETS EQUITY EQUITY
For 2,298,789.00 21,556,067.00 481,483.00 2,181,342.00
Against 83,423.00 2,113,371.00 5,920.00 76,008.00
Abstain 29,494.00 100,294.00 4,747.00 37,002.00
XI. Proposal to reclassify each Portfolio's fundamental limitation concerning
investment in securities of an issuer whose securities are owned by officers
and trustees of the Trust as non-fundamental.
PACIFIC BASIN INTERNATIONAL EMERGING EUROPEAN
EQUITY EQUITY MARKETS EQUITY EQUITY
For 2,287,285.00 22,830,356.00 475,249.00 2,173,671.00
Against 91,685.00 806,617.00 5,920.00 83,358.00
Abstain 32,735.00 132,765.00 10,981.00 38,323.00
XII. Proposal to reclassify each Portfolio's fundamental limitation concerning
investment of more than 5% of its total assets in securities of companies
with less than three years of operating history as non-fundamental.
PACIFIC BASIN INTERNATIONAL EMERGING EUROPEAN
EQUITY EQUITY MARKETS EQUITY EQUITY
For 2,292,524.00 21,804,807.00 483,984.00 2,167,409.00
Against 87,277.00 1,834,434.00 3,688.00 87,990.00
Abstain 31,904.00 130,491.00 4,478.00 38,953.00
37
<PAGE>
SHAREHOLDERS VOTING RESULTS (CONTINUED) (UNAUDITED)
================================================================================
XIII. Proposal to reclassify each Portfolio's fundamental limitation concerning
investment in restricted securities as non-fundamental, and to amend
certain language.
PACIFIC BASIN INTERNATIONAL EMERGING EUROPEAN
EQUITY EQUITY MARKETS EQUITY EQUITY
For 2,312,390.00 21,782,320.00 473,123.00 2,178,581.00
Against 68,941.00 1,831,739.00 8,041.00 73,315.00
Abstain 30,374.00 105,673.00 10,986.00 42,456.00
XV. Authorization for the Board of Trustees to appoint Investment Sub-Advisers
for the European Equity Portfolio of the Trust without seeking approval by
the Portfolio's Shareholders of the contracts pursuant to which sub-advisers
serve.
EUROPEAN
EQUITY
For 2,196,438.00
Against 60,857.00
Abstain 37,057.00
XVI. Authorization for the Board of Trustees to appoint Investment Sub-Advisers
for the Pacific Basin Equity Income Portfolio of the Trust without seeking
approval by the Portfolio's Shareholders of the contracts pursuant to which
such sub-advisers serve.
PACIFIC BASIN
EQUITY
For 2,329,685.00
Against 51,089.00
Abstain 30,990.00
XVIII. Approval of the Investment Adviser and the Investment Advisory Agreement
for the European Equity Portfolio of the Trust.
EUROPEAN
EQUITY
For 2,204,804.00
Against 50,537.00
Abstain 39,011.00
Adviser and the Investment Advisory Agreement for the Pacific Basin Equity
Portfolio of the Trust.
PACIFIC BASIN
EQUITY
For 2,336,191.00
Against 45,856.00
Abstain 29,749.00
XXI. Approval of an Investment Sub-Adviser and the Investment Sub-Advisory
Agreement for the European Equity Portfolio of the Trust.
EUROPEAN
EQUITY
For 2,202,022.00
Against 51,696.00
Abstain 39,334.00
XXII. Approval of an Investment Sub-Adviser and the Investment Sub-Advisory
Agreement for the Pacific Basin Equity Portfolio of the Trust.
PACIFIC BASIN
EQUITY
For 2,335,053.00
Against 45,555.00
Abstain 31,098.00
38
<PAGE>
NOTICE TO SHAREHOLDERS (UNAUDITED)
================================================================================
FEBRUARY 29, 1996
For shareholders that do not have a February 29, 1996 taxable year end, this
notice is for informational purposes only. For shareholders with a February 29,
1996 taxable year end, please consult your tax advisor as to the pertinence of
this notice.
For the fiscal year ended February 29, 1996 the Portfolios of the SEI
International Trust are designating long term capital gains and qualifying
dividend income with regard to distributions paid during the year as follows:
(A) (B)
LONG TERM ORDINARY
CAPITAL GAINS INCOME TOTAL
DISTRIBUTIONS DISTRIBUTIONS DISTRIBUTIONS
PORTFOLIO (TAX BASIS) (TAX BASIS) (TAX BASIS)
- ---------- ------------- ------------- -------------
International Equity 83% 17% 100%
European Equity 0% 100% 100%
Pacific Basin Equity 0% 100% 100%
Emerging Markets Equity 0% 100% 100%
International Fixed Income 1% 99% 100%
(C) (D) (E)
QUALIFYING TAX-EXEMPT FOREIGN
PORTFOLIO DIVIDENDS(1) INTEREST TAX CREDIT
- ---------- ------------ ---------- ----------
International Equity 0% 0% 15%(3)
European Equity 0% 0% 25%
Pacific Basin Equity 0% 0% 8%
Emerging Markets Equity 0% 0% 0%
International Fixed Income 0% 0% 1%
(1) Qualifying dividends represent dividends which qualify for the corporate
dividends received deduction. (2) See attached notice which details the per
share amount of foreign taxes paid by country and the per share amount of each
dividend that represents income derived from sources within each country. (3)
This amount represents the Foreign Tax Credit for Class A. The Foreign Tax
Credit for Class D is 16%.
* Items (A) and (B) are based on the percentage of each fund's total
distribution.
** 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.
39
<PAGE>
NOTICE TO SHAREHOLDERS (UNAUDITED)
================================================================================
FEBRUARY 29, 1996
FOR TAXPAYERS FILING ON A CALENDAR YEAR BASIS, THIS NOTICE IS FOR INFORMATIONAL
PURPOSES ONLY.
The SEI International Trust International Equity Portfolio, European Equity
Portfolio, Pacific Basin Equity Portfolio and International Fixed Income
Portfolio have made an election under Section 853 of the Internal Revenue Code
(the "Code") to provide a foreign tax deduction or credit to their shareholders
for the fiscal year ended February 29, 1996. The information provided below is
pertinent to taxpayers who meet the following two criteria: 1) file a U.S.
Federal Income Tax Return and 2) held shares of the Portfolio on the dividend
record date of December 29, 1995 and satisfy the applicable requirements of the
Code.
The amount per share of income from and foreign taxes paid to each country
is listed in the following schedules:
INTERNATIONAL EQUITY PORTFOLIO
CLASS A CLASS D
GROSS FOREIGN GROSS FOREIGN
COUNTRY DIVIDEND TAXES PAID DIVIDEND TAXES PAID
Australia $0.0242 $0.0030 $0.0227 $0.0030
Belgium 0.0089 0.0013 0.0084 0.0013
Canada 0.0067 0.0009 0.0063 0.0009
France 0.0217 0.0000 0.0202 0.0000
Germany 0.0089 0.0010 0.0084 0.0010
Hong Kong 0.0053 0.0000 0.0049 0.0000
Italy 0.0048 0.0008 0.0045 0.0008
Japan 0.0275 0.0044 0.0259 0.0044
Malaysia 0.0042 0.0009 0.0040 0.0009
Netherlands 0.0105 0.0017 0.0099 0.0017
New Zealand 0.0040 0.0007 0.0038 0.0007
Norway 0.0020 0.0003 0.0018 0.0003
Singapore 0.0040 0.0005 0.0037 0.0005
Spain 0.0104 0.0015 0.0097 0.0015
Sweden 0.0008 0.0001 0.0008 0.0001
Switzerland 0.0064 0.0010 0.0060 0.0010
U.K. 0.0615 0.0103 0.0579 0.0103
U.S. 0.0082 0.0000 0.0077 0.0000
------- ------- ------- -------
$0.2200 $0.0284 $0.2066 $0.0284
EUROPEAN EQUITY PORTFOLIO
GROSS FOREIGN
COUNTRY DIVIDEND TAXES PAID
Belgium $0.0015 $0.0004
Denmark 0.0005 0.0001
Finland 0.0008 0.0002
France 0.0093 0.0000
Germany 0.0070 0.0013
Italy 0.0022 0.0005
Netherlands 0.0069 0.0016
Norway 0.0011 0.0003
Spain 0.0056 0.0014
Sweden 0.0078 0.0018
Switzerland 0.0055 0.0012
U.K. 0.0636 0.0156
U.S. 0.0110 0.0000
------- -------
$0.1228 $0.0244
PACIFIC BASIN EQUITY PORTFOLIO
GROSS FOREIGN
COUNTRY DIVIDEND TAXES PAID
Australia $0.0166 $0.0008
Hong Kong 0.0248 0.0003
Japan 0.0521 0.0058
Malaysia 0.0055 0.0010
New Zealand 0.0062 0.0007
Singapore 0.0071 0.0012
South Korea 0.0037 0.0005
U.S. 0.0259 0.0000
------- -------
$0.1419 $0.0103
INTERNATIONAL FIXED INCOME PORTFOLIO
GROSS FOREIGN
COUNTRY DIVIDEND TAXES PAID
Australia $0.0115 $0.0000
Belgium 0.0188 0.0000
Canada 0.0216 0.0000
Denmark 0.0734 0.0000
France 0.0251 0.0000
Germany 0.3151 0.0000
Italy 0.1231 0.0072
Japan 0.1640 0.0000
Netherlands 0.0984 0.0000
New Zealand 0.0115 0.0000
Norway 0.0068 0.0000
Spain 0.0191 0.0000
Sweden 0.0319 0.0000
U.K. 0.0068 0.0000
U.S. 0.0276 0.0000
------- -------
$0.9547 $0.0072
40
<PAGE>
NOTES
<PAGE>
==========================
SEI INTERNATIONAL TRUST
==========================
ANNUAL REPORT
==========================
FEBRUARY 29, 1996
Robert A. Nesher
CHAIRMAN
TRUSTEES
Richard F. Blanchard
William M. Doran
F. Wendell Gooch
Frank E. Morris
James M. Storey
OFFICERS
David G. Lee
PRESIDENT AND CHIEF EXECUTIVE OFFICER
Jeffrey A. Cohen
CONTROLLER, ASSISTANT SECRETARY
Todd Cipperman
VICE PRESIDENT, ASSISTANT SECRETARY
Joseph M. Lydon
VICE PRESIDENT, ASSISTANT SECRETARY
Sandra K. Orlow
VICE PRESIDENT, ASSISTANT SECRETARY
Kevin P. Robins
VICE PRESIDENT, ASSISTANT SECRETARY
Kathryn L. Stanton
VICE PRESIDENT, ASSISTANT SECRETARY
Richard W. Grant
SECRETARY
INVESTMENT ADVISORS
INTERNATIONAL EQUITY PORTFOLIO
SEI Financial Management
EUROPEAN EQUITY PORTFOLIO
SEI Financial Management
PACIFIC BASIN EQUITY PORTFOLIO
SEI Financial Management
EMERGING MARKETS PORTFOLIO
SEI Financial Management
INTERNATIONAL FIXED INCOME PORTFOLIO
Strategic Fixed Income L.P.
MANAGER AND SHAREHOLDER SERVICING AGENT
SEI Financial Management Corporation
DISTRIBUTOR
SEI Financial Services Company
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
LEGAL COUNSEL
Morgan, Lewis & Bockius LLP
THIS ANNUAL REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED
FOR THE GENERAL INFORMATION OF THE SHAREHOLDERS OF THE TRUST AND MUST BE
PRECEDED OR ACCOMPANIED BY A CURRENT PROSPECTUS. SHARES OF THE SEI FUNDS ARE NOT
DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR ENDORSED BY, ANY BANK. THE SHARES
ARE NOT FEDERALLY INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC),
THE FEDERAL RESERVE BOARD, OR ANY OTHER GOVERNMENT AGENCY. INVESTMENT IN THE
SHARES INVOLVES RISK, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL. SEI FINANCIAL
SERVICES COMPANY, THE DISTRIBUTOR OF THE SEI FUNDS, IS NOT AFFILIATED WITH ANY
BANK.
FOR MORE INFORMATION CALL 1(BULLET)800(BULLET)DIAL(BULLET)SEI/
1(BULLET)800(BULLET)342(BULLET)5734
SEI-F-018-05
