Annual Report as of
September 30, 1999
SEI INSTITUTIONAL
INTERNATIONAL
TRUST
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International Equity Fund
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Emerging Markets Equity Fund
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International Fixed Income Fund
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Emerging Markets Debt Fund
[LOGO OMITTED]
The art of people.
The science of results.
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TABLE OF CONTENTS
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Management's Discussion and Analysis
of Fund Performance
INTERNATIONAL EQUITY FUND...................................... 1
EMERGING MARKETS EQUITY FUND................................... 2
INTERNATIONAL FIXED INCOME FUND................................ 4
EMERGING MARKETS DEBT FUND..................................... 6
Statement of Net Assets/Schedules of Investments..................... 8
Statement of Assets and Liabilities.................................. 23
Statement of Operations.............................................. 24
Statement of Changes in Net Assets................................... 25
Financial Highlights................................................. 27
Notes to Financial Statements........................................ 28
Report of Independent Accountants.................................... 35
Notice to Shareholders............................................... 36
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MANAGEMENT'S DISCUSSION AND ANALYSIS OF FUND PERFORMANCE
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SEI Institutional International Trust -- September 30, 1999
International Equity Fund
OBJECTIVE. The International Equity Fund seeks to provide long-term
capital appreciation by investing primarily in a diversified portfolio of equity
securities of non-U.S. issuers.
STRATEGY. The International Equity Fund is diversified across a number of
markets and includes commitments to large-cap and small-cap shares. Exposure is
also maintained to the growth and value styles of active management. Emphasis is
placed on active security selection as the principal source of value-added as
opposed to active country allocation. The Fund does not hedge foreign currency
exposure.
ANALYSIS. The International Equity Fund was up more than 37% for the one
year period ending September 1999. The Fund outperformed its benchmark, the MSCI
EAFE Index, by more than 6.5%. The Fund's strong outperformance was broad based,
with value being added through security selection, industry allocation and
country allocation.
The non-U.S. developed markets rallied over the past year as the economic
outlook around the world improved. During the third and fourth quarters of 1998,
there was widespread concern that many parts of the world were vulnerable to a
severe economic downturn. However, as evidence mounted that the global economy
was beginning to recover, financial markets rallied. The surge in equity prices
was broad based with all but the Austrian market posting positive gains. The
European equity markets rose more than 17%, while the Pacific Rim markets rose
more than 70%. Some countries posted truly exceptional gains over the year.
Japan was up almost 80%, Finland was up more than 90% and Singapore rose more
than 120%.
The Fund's specialist active managers were able to add significant value
above the benchmark over the period. Several themes have been driving the Fund's
stock selection and sector and country weightings. Corporate restructuring and
industry consolidations, two trends prevalent in the United States during the
1980's and early 1990's, have taken hold globally. The Fund's positioning in
stocks such as Broken Hill Proprietary in Australia, Sony Corporation in Japan,
Carrefour in France, and Vodafone Airtouch in the UK were plays on this theme.
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INTERNATIONAL EQUITY
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AVERAGE ANNUAL TOTAL RETURN(1)
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One Annualized Annualized Annualized
Year 3 Year 5 Year Inception
Return Return Return to Date
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Institutional 37.86% 11.62% 9.75% 6.76%
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Class D, Synthetic 37.69%* 11.40%* 9.46% 8.76%*
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Class D, Synthetic,
w/load 30.77%* 9.52%* 8.34% 7.73%*
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*Actual, not synthetic
Comparison of Change in the Value of a $10,000 Investment in the SEI
International Equity Fund, Class A or Class D, Synthetic w/load, versus the
Morgan Stanley MSCI EAFE Index
[In the printed version, there appears a line graph with the following plot
points depicted.]
SEI International
Equity Fund Morgan
SEI International Class D Stanley
Equity Fund, Synthetic, MSCI
Class A w/Load EAFE Index
------- ------ ----------
$18,857 $17,644 $16,842
12/31/89 10,000 9,500 10,000
9/30/90 8,350 7,933 6,927
9/30/91 9,416 8,945 8,443
9/30/92 9,232 8,771 7,842
9/30/93 11,137 10,580 9,908
9/30/94 11,841 11,228 10,883
9/30/95 12,343 11,662 11,514
9/30/96 13,558 12,764 12,507
9/30/97 14,990 14,063 14,032
9/30/98 13,678 12,814 12,861
9/30/99 18,857 17,664 16,842
(1) For the period ended September 30, 1999. 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
synthetic's performance derived from 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.
1
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MANAGEMENT'S DISCUSSION AND ANALYSIS OF FUND PERFORMANCE
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SEI Institutional International Trust -- September 30, 1999
All have added significant value over the past year.
The Fund has also been positioned for the acceleration in economic growth
that occurred over the past year. Stocks such as LVMH in France, Cathay Pacific
Airlines in Hong Kong, and Nippon Paper in Japan were plays on this theme. All
contributed to the Fund's outperformance.
Finally, the Fund has been positioned to take advantage of the increasing
global demand for technology-related products and a consolidation in the
telecommunications industry. Holdings such as France Telecom, Deutsche Telecom
and Matsushita Electric were plays on this theme.
Structurally, the Fund remains style neutral to the MSCI EAFE Index, and
well diversified across all markets in the benchmark. Over the past year Oechsle
International Advisors, LLC was added to the strategy. Oecshle will have a broad
mandate to buy stocks across all the non-US developed markets. Oechsle employs
an investment process designed to identify inefficiencies within and between
international equity markets.
Emerging Markets
Equity Fund
Objective. The Emerging Markets Equity Fund seeks to provide capital
appreciation by investing primarily in a diversified portfolio of equity
securities of emerging market issuers.
Strategy. The Fund employs five money management specialists focusing on
regions across Latin America, Asia, emerging Europe, South Africa, and global
emerging markets. The managers specializing in Latin America, Asia and emerging
Europe focus on both bottom up fundamental company analysis and top down country
allocation. The Global Emerging Markets manager is focused on bottom up
fundamental analysis across all regions in emerging markets.
Analysis. For the fiscal year ended September 30, 1999, the Emerging
Markets Equity Fund returned 48.2%, underperforming its benchmark, which
returned 56.6%.
At the asset allocation level, the relative performance of the Fund was
affected by the regional bets of the Global Emerging Markets manager. The Asian
markets have led the recovery in emerging markets since the third quarter of
1998, however, the Fund was underweighted to Asia and overweighted to EMEA
(Europe, Middle East and Africa) during the fourth quarter of 1998 and the first
quarter of 1999. These regional and country bets have been driven by the
manager's investment philosophy, which consists of bottom-up fundamental
analysis. The strong performance of Asia has been dominated by stocks that
benefited from increased liquidity and lower interest rates (real estate, banks,
highly leveraged, or bankrupt companies). The manager's bottom-up fundamental
analysis has identified companies with strong balance sheets, above average
2
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EMERGING MARKETS EQUITY
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AVERAGE ANNUAL TOTAL RETURN(1)
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One Annualized Annualized
Year 3 Year Inception
Return Return to Date
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Emerging Markets Equity,
Class A 48.23% -7.35% -1.68%
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Comparison of Change in the Value of a $10,000 Investment in the SEI
Emerging Markets Equity Fund, versus the IFC Investable Composite Index
[In the printed version, there appears a line graph with the following plot
points depicted.]
Emerging Markets Morgan Stanley MSCI
Equity Fund, Emerging Markets IFC Investible
Class A Free Index Composite Index
$9,116 $9,853 $10,171
------ ------ -------
1/31/95 10,000 10,000 10,000
9/30/95 10,651 10,755 10,669
9/30/96 11,464 11,316 11,592
9/30/97 12,662 12,060 12,207
9/30/98 6,150 6,295 6,496
9/30/99 9,116 9,853 10,171
(1) For the period ended September 30, 1999. Past performance is no indication
of future performance. Class A Shares were offered beginning January 17,
1995.
growth, and improving fundamentals that underperformed more speculative stocks
during the liquidity driven recovery. Towards the end of the first quarter of
1999, the manager modified the asset allocation to an underweight to the EMEA
region, and an overweight to Asia. At that point, the Global Emerging Market
manager was able to identify positive fundamental change and more high quality
growing companies in Asia.
Within Asia, the country allocation has also been a detractor to
performance. Based on the same fundamental reasons explained above, the Fund
remained underweight to Korea and Indonesia during the fourth quarter of 1998
and first quarter of 1999. In Indonesia, concerns of social unrest and political
uncertainty created a too risky environment to invest. During this first part of
the Asian recovery, stock selection within Korea was particularly poor, as the
Fund underweighted highly leverage firms in the Financial sector. Since then,
the Fund has focused on high quality stocks of companies undergoing fundamental
change and restructuring. These companies were expected to benefit from a long
term recovery of these markets. Within Taiwan and Korea, the Fund has had an
overweight to exporters, technology, and electronics. In India, the Fund has
been overweighted to cyclicals and resources to take advantage of the domestic
growth and the recovery of commodity prices. This strategy has represented a
strong source of value added during the second and third quarter of 1999, as
stock selection was positive in India, Korea, and Taiwan.
Within Latin America, the Fund benefited from an overweight to the largest
markets: Mexico and Brazil. Mexico has been one of the best performing markets,
showing high growth potential and a sound macroeconomic environment. Brazil has
been able to stabilize its currency and reduce interest rates after the
devaluation of its currency in January of 1999. This area of emerging markets
has been very strong for the Fund, as the specialist manager added value through
both market allocation and stock selection. The long term strategy has been
focused on identifying growing companies with healthy balance sheets operating
within a sound macroeconomic environment. The recovery of the commodity prices
also benefited the strategy, as the Fund remained overweighted to resources and
oil throughout Latin America. Within Mexico, the Fund has had a bias towards
retail and media, whereas in Brazil the focus has been on telecoms and
utilities.
3
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MANAGEMENT'S DISCUSSION AND ANALYSIS OF FUND PERFORMANCE
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SEI Institutional International Trust -- September 30, 1999
Emerging Europe, Middle East, and Africa represented a difficult area for
the Fund during 1998 and 1999. The asset allocation decision within that region
has been affected by the high volatility of the Russian market, the relative
valuation of Greece, and the unfortunate earthquake in Turkey. The Russian
economy has benefited from the recovery of oil prices and the restructuring of
the domestic debt. However, the fundamentals of the economy and the stock market
remained weak throughout the last year. In addition, the political uncertainty
surrounding the succession of Yeltsin added volatility to the market. These
factors combined have made this market very difficult to analyze based on
fundamental macroeconomic and company analysis.
The other negative effect on the Fund has been the underweight to Greece
since the beginning of 1999. The Fund has remained underweight to Greece based
on the high valuation of this market compared to historical values, other
emerging markets, and even other developed European markets. The rally of the
Greek market has been driven by an increase in domestic liquidity and aggressive
buying from domestic retail investors into the stock market. By contrast, stock
selection in Greece has been a strong source of value added as the Fund
exploited opportunities in the mid cap sector of the market where valuations
were more attractive.
The South African Market has been driven by the recovery of commodity
prices and global growth. The specialist manager for South Africa participated
in the rally of commodities with an overweight to diamonds and platinum,
expecting higher demand from Japan and other Asian countries. Within the
domestic environment, the manager focused on media and financials as interest
rates decreased and the economic growth resumed.
International Fixed
Income Fund
OBJECTIVE. The International Fixed Income Fund seeks to provide capital
appreciation and current income through investments primarily in investment
grade, non-U.S. dollar denominated government, corporate, mortgage-backed and
asset-backed fixed income securities.
STRATEGY. Fund 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 Fund is not substantially overweighted in a
declining market or underweighted in a rising one.
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INTERNATIONAL FIXED INCOME
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AVERAGE ANNUAL TOTAL RETURN(1)
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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 -1.36% 3.92% 6.85% 6.57%
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Comparison of Change in the Value of a $10,000 Investment in the SEI
International Fixed Income Fund, versus the Salomon WGBI, Non-U.S., Unhedged
[In the printed version, there appears a line graph with the following plot
points depicted.]
SEI International
Fixed Fund, Salomon WGBI,
Class A Non-U.S.
$14,390 $14,368
------- -------
9/30/93 10,000 10,000
9/30/93 10,000 10,000
9/30/94 10,333 10,557
9/30/95 12,385 12,434
9/30/96 12,822 12,936
9/30/97 12,971 12,826
9/30/98 14,589 14,154
9/30/99 14,390 14,368
(1) For the period ended September 30, 1999. Past performance is no indication
of future performance. Class A Shares were offered beginning
September 1, 1993.
4
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Country and currency allocations are made separately. As a result, the
Fund's currency exposure may differ from its underlying bond holdings. Under
normal circumstances, the Fund 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
Fund's benchmark index. Currency exposure is actively managed to maximize return
and control risk through the use of forward currency contracts and
cross-currency hedging techniques.
ANALYSIS: For the fiscal year ended September 30, 1999, the International
Fixed Income Fund returned -1.36% to underperform the Salomon Brothers Non-U.S.
World Government Bond Index return of 1.53%. The Fund's underweight to Japanese
bonds towards the latter half of the period as well as inopportune yen positions
throughout the fiscal year drove underperformance. Yield curve positioning in
the U.K. also hampered performance, but a defensive European bond position
towards the end of the period improved results.
The Japanese yen appreciated over 19% versus the U.S. dollar in a 48-hour
period in October when hedge funds were forced to unwind their short yen
positions during the liquidity squeeze surrounding the failure of Long Term
Capital. The Fund's modest underweight to the yen during that period detracted
from returns. During the yen's further appreciation in the spring, both the Bank
of Japan and European Central bank intervened in the currency markets to weaken
the yen. The Fund's overweight to the yen just prior to two major interventions
hurt returns. Towards the end of the fiscal year, the Fund's modest overweight
to the yen benefited returns as the yen continued to strengthen.
After rallying briefly following its debut, the euro depreciated versus
both the dollar and yen before recovering modestly towards the end of the fiscal
year. Weaker economic numbers released earlier in the year, the conflict in
Yugoslavia, and a lack of verbal support for the currency from European central
bankers all contributed to the euro's weakness. The Fund's modest underweight to
the euro early in the calendar year detracted from returns. European bond yields
edged higher towards the end of the fiscal period as economic performance
improved, which increased speculation for a possible central bank hike. A
shorter overall duration in Europe improved returns.
An overweight to the intermediate area of the British yield curve
detracted from results as investors feared that more rate hikes were in the
cards. The long end of the yield curve only experienced a modest increase in
rates as legislation forced many U.K. pension plans and insurance companies into
long-dated government bonds to match their long-dated liabilities.
5
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MANAGEMENT'S DISCUSSION AND ANALYSIS OF FUND PERFORMANCE
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SEI Institutional International Trust -- September 30, 1999
Emerging Markets
Debt Fund
OBJECTIVE. The Emerging Markets Debt Fund seeks to maximize total return.
STRATEGY. Structuring and managing the Fund entails a multi-step process.
First, an internal assessment of country risk is compared with the market's
pricing of country risk to determine relative value opportunities. The output
determines which countries are 1) "core" holdings which have the strongest
economic/political/debt attributes, 2) "trading" countries which present more
opportunistic value, and 3) countries "not currently suitable" for investment.
Under normal circumstances, the Fund will be diversified across 10-15 countries.
The next step in the process determines relative value amongst sectors
within a country, and security selection within the sectors. The
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EMERGING MARKETS DEBT
- ---------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(1)
- ---------------------------------------------------------------
One Year Annualized Inception
Return to Date
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Class A 31.15% -3.72%
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Comparison of Change in the Value of a $10,000 Investment in the SEI Emerging
Markets Debt Fund, versus the J.P. Morgan EMBI Plus
[In the printed version, there appears a line graph with the following plot
points depicted.]
Emerging Markets
Debt Fund, J.P. Morgan
Class A EMBI Plus
$9,178 $9,823
------ ------
6/30/97 10,000 10,000
9/30/97 10,620 10,691
9/30/98 6,998 7,986
9/30/99 9,178 9,823
(1) For the period ended September 30, 1999. Past performance is no indication
of future performance. Class A Shares were offered beginning June 29, 1997.
final step incorporates a disciplined sell process through continual risk/reward
analysis across and within emerging debt countries. U.S. interest-rate risk
relative to the benchmark is controlled through the maintenance of a tightly
constrained U.S. Treasury duration. Excess return is captured through active
management of the sovereign spread component relative to the benchmark.
ANALYSIS: The Emerging Markets Debt Fund returned 31.15% for the fiscal
year ended September 30, 1999 to strongly outperform the J.P. Morgan Emerging
Markets Bond Index Plus return of 23.00%. Overweights to Russia, Algeria, and
Venezuela drove outperformance. Issue selection within Ecuador also contributed
positively to relative returns, while a modest underweight to Brazil hurt
returns.
Russia was the top performing emerging debt country in the fiscal period,
gaining 83%. The Fund's modest overweight to Russia drove performance as the
country received an economic boost from the devalued ruble, negotiated IMF
financial assistance, and continued to meet interest payments on its Eurobond
debt. An underweight to Poland also benefited returns as the country fell less
during the height of the August crisis, and therefore rallied less during the
recovery.
In Latin America, Brazil was a strong performer as it successfully floated
its currency in January prior to spending much of its foreign exchange reserves.
The appointment of former Soros partner Arminio Fraga as head of the Central
Bank also boosted investor confidence. A modest underweight to Brazil detracted
from returns. Neighboring Argentina underperformed as Brazil's devaluation
exacerbated Argentina's economic recession, as Argentina maintained its
one-to-one peg with the U.S. dollar. Looming presidential elections in October
also caused Argentine debt to rally less than the
6
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market, so the Fund's underweight to the country enhanced returns. Venezuela
rallied despite the presidential election of a former military paratrooper in
December as oil prices skyrocketed during the latter half of the fiscal period.
The recovery of the global economy and OPEC's successful limitation of oil
production boosted prices from their winter lows. Ecuador became the first
country to miss a Brady bond payment as the economy failed to recover from the
effects of El Nino last year. The Fund's exposure to Ecuador consisted entirely
of Brady Par and Discount bonds. These particular bonds guarantee payment of
collateral and two interest payments. These bonds fell less than the Past Due
Interest ("PDI") Brady bond, which does not have any cash flow collateralized.
The avoidance of the PDI enhanced relative returns. The Fund's concentration in
the Mexico's Brady Par bond mitigated outperformance as the country's Brady
bonds underperformed its Eurobonds.
In Africa, Algeria benefited tremendously from the surge in oil and gas
prices as the country derives more than half of its budget revenues and 95% of
export earnings from the hydrocarbon sector. In Asia, the Fund's underweight to
South Korea detracted from results as both Moody's and Standard & Poor's
upgraded the country's foreign currency debt to investment grade status. An
overweight to the Philippines also modestly detracted from results as the
relatively high quality emerging country lagged in the rally.
7
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STATEMENT OF NET ASSETS
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SEI Institutional International Trust -- September 30, 1999
International
Equity Fund
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Market
Description Shares Value (000)
- --------------------------------------------------------------------------------
Foreign Common Stocks -- 96.9%
Argentina -- 0.1%
Telecom Argentina ADR* 43,000 $ 1,148
-------
Australia -- 2.4%
AMP Limited 76,400 711
Australia & New Zealand
Bank Group 582,625 3,896
Boral Limited 573,700 878
Broken Hill Proprietary 740,820 8,530
Broken Hill Proprietary ADR 2,300 53
Coca-Cola Amatil Limited 674,627 2,367
Coles Myer 977,400 5,106
Leighton Holdings 212,700 817
Lend Lease 200,000 2,440
Macquarie Bank Limited 51,400 663
National Australia Bank 147,230 2,155
News Corporation 591,100 4,146
Oil Search Limited 230,200 297
Pioneer International 392,700 970
Qantas Airways 673,900 2,110
Rio Tinto Limited 82,725 1,402
Tabcorp Holdings Limited 49,400 335
Telstra Corporation 435,681 2,257
Westpac Banking Corporation 418,308 2,580
WMC Limited 103,600 527
Woodside Petroleum 299,200 2,076
-------
44,316
-------
Belgium -- 0.2%
Cobepa 10,200 627
Fortis, Series B 36,900 1,207
Tractebel 2,200 391
UCB 37,500 1,522
-------
3,747
-------
Brazil -- 0.1%
Unibanco GDR 50,000 884
-------
Canada -- 1.9%
Air Canada 147,900 1,008
Bank of Nova Scotia 227,400 4,883
BCE Incorporated 74,180 3,692
Bombardier Inc, Series B 37,400 621
Bombardier Incorporated 170,000 2,817
Canadian Tire Corp, Series A 64,800 1,564
Clarica Life Insurance Company* 80,700 1,215
Manulife Financial Corporation* 52,960 630
Newbridge Networks 61,600 1,594
Nortel Networks Corporation 82,000 4,193
Royal Bank of Canada 41,800 1,736
- --------------------------------------------------------------------------------
Market
Description Shares Value (000)
- --------------------------------------------------------------------------------
Seagram 49,270 $ 2,244
Suncor Energy 51,600 1,970
Teleglobe 97,000 1,501
Thomson Corporation 171,900 4,828
-------
34,496
-------
Denmark -- 0.1%
Den Danske Bank 21,190 2,414
-------
Finland -- 1.2%
Nokia OYJ 166,900 15,009
UPM-Kymmene 181,300 6,204
-------
21,213
-------
France -- 12.8%
Accor 4,000 936
AXA UAP 103,670 13,169
Banque National de Paris 233,501 18,714
Banque National de Paris CVG 9,750 81
Canal Plus 54,800 3,287
Carrefour 139,340 22,394
Castorama Dubois 57,300 16,188
Christian Dior 1,300 213
Compagnie de Saint Gobain 84,550 15,822
Elf Aquitaine 92,261 16,179
Equant 146,379 11,958
France Telecom 39,200 3,454
Groupe Danone 10,000 2,443
Lafarge 132,649 14,723
Louis Vuitton Moet Hennessy 43,416 13,069
Pechiney Ord, Series A 86,500 4,810
Peugeot 127,900 25,739
Pinault-Printemps-Redoute 56,162 10,690
Sanofi-Synthelabo 127,640 5,459
Stmicroelectronics 89,000 6,966
Suez Lyonnaise des Eaux 81,754 13,288
Television Francaise 10,000 2,809
Total Fina, Series B 25,700 3,243
Total Petroleum of
North America ADR* 5,000 317
Valeo 54,138 3,934
Vivendi 74,630 5,263
-------
235,148
-------
Germany -- 9.0%
Allianz 7,100 2,054
Bayerische Motoren Werke 175,608 4,976
Commerzbank 47,350 1,823
DaimlerChrysler 36,450 2,522
Depfa Deutsche Pfandbriefban 50,750 4,206
Deutsche Bank 123,050 8,270
8
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Market
Description Shares Value (000)
- --------------------------------------------------------------------------------
Deutsche Telekom 325,650 $ 13,406
Gehe 208,031 7,786
Henkel KGAA 24,800 1,565
Hoechst 400,336 17,508
Industrie Werke Karlsruhe
Augsburg 77,500 1,388
MAN 178,150 5,391
Mannesmann 270,194 43,338
Metallgesellschaft 100,176 2,035
Preussag 32,400 1,639
RWE 490,650 20,435
Siemens 269,508 22,349
Thyssen Krupp 121,000 2,439
VEBA 21,000 1,155
Viag 84,460 1,608
---------
165,893
---------
Greece -- 0.1%
Hellenic Telecommunications
Organization 91,770 2,149
---------
Hong Kong -- 2.2%
Asia Satellite
Telecommunications Holdings 35,000 89
Cable & Wireless HKT Limited 1,955,000 4,291
Cathay Pacific Airways 3,278,000 5,908
Cheung Kong Holdings 430,000 3,584
Citic Pacific Limited 857,000 2,372
CLP Holdings Limited 110,000 517
Goldlion Holdings Limited 2,821,000 378
Hang Seng Bank 124,000 1,313
Hong Kong Construction 971,000 416
Hong Kong Electric Holdings 317,000 984
HSBC Holdings 69,600 797
Hutchison Whampoa 677,000 6,297
Hysan Development 330,000 412
Legend Holdings 464,000 442
Ocean-Land Group Limited 2,800,000 483
Pacific Century
Cyberworks Limited 500,000 422
Peregrine Investment
Holdings*(1) 526,000 --
Smartone Telecommunications 120,000 369
Sun Hung Kai Properties 1,025,000 7,819
Swire Pacific, Series A 669,000 3,170
Tan Chong International
Limited 819,000 157
Wharf Holdings 300,000 867
---------
41,087
---------
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Market
Description Shares Value (000)
- --------------------------------------------------------------------------------
Ireland -- 0.1%
CRH 106,000 $ 2,038
Eircom 51,900 228
---------
2,266
---------
Italy -- 2.7%
Assicurazioni Generali 128,500 4,287
Banca Nazionale DEL Lavoro 1,099,067 3,949
Banca Popolare di Bergamo 81,543 1,814
Banca Popolare di Milano 136,600 1,003
ENI SPA 1,743,400 10,980
Fiat SPA 83,000 2,778
Gucci Group ADR 43,455 3,628
Istituto Nazionale delle
Assicurazioni 2,235,400 7,314
Mediaset SPA 393,697 4,037
Montedison 167,648 330
Telecom Italia 240,375 2,097
Telecom Italia Mobile 862,400 3,191
Telecom Italia SPA 987,800 4,986
---------
50,394
---------
Japan -- 25.6%
Acom 20,200 2,655
Advantest 80,800 11,707
Aiful Corporation 12,650 2,160
Aiwa 35,000 1,031
Ajinomoto 127,000 1,488
Aoyama Trading 500 17
Asahi Breweries 189,000 2,897
Autobacs Seven 22,400 1,334
Bank of Tokyo-Mitsubishi 388,000 5,968
Bridgestone Corporation 100,000 2,804
Canon 380,000 11,083
Chudenko Corporation 2,000 36
Chugai Pharmaceutical 97,000 1,173
Dai Nippon Printing 87,000 1,620
Daiwa House Industry Limited 525,887 5,210
DDI Corporation 800 6,021
East Japan Railway 374 2,386
Fuji Bank 1,031,000 12,552
Fuji Photo Film 174,000 5,975
Fuji Soft ABC 17,600 1,502
Fujikura Limited 160,000 1,039
Fujitsu 287,000 8,965
Fujitsu Support and Service 4,000 1,140
Hirose Electric 43,000 6,776
Hitachi 1,143,000 12,689
Honda Motor 504,000 21,148
Hoya Corporation 64,000 3,878
Industrial Bank of Japan 264,000 3,251
ItoYokado 70,000 5,795
9
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
SEI Institutional International Trust -- September 30, 1999
International
Equity Fund--Continued
- --------------------------------------------------------------------------------
Market
Description Shares Value (000)
- --------------------------------------------------------------------------------
Japan Energy 764,000 $ 963
Jusco 114,000 2,150
Kao Corporation 222,000 6,287
Kawasaki Heavy Industries 442,000 840
Keyence Corporation 21,000 5,631
Kirin Brewery 108,000 1,296
Matsushita Electric 673,000 14,341
Meiji Milk Products 411,000 1,539
Mitsubishi Heavy Industries 671,000 2,588
Mitsubishi Trust & Banking 164,000 2,006
Mitsui 296,000 2,245
Mitsui Chemicals 105,000 941
Mitsui Mining & Smelting 227,000 1,217
Mitsukoshi 163,000 980
Murata Manufacturing 125,000 12,583
NEC 582,000 11,745
Nichiei 48,700 3,734
Nidec Corporation 46,500 8,815
Nikko Securities 221,000 1,871
Nikon 281,000 5,420
Nintendo 127,500 20,368
Nippon Express 531,000 3,567
Nippon Paper Industries 301,000 2,130
Nippon Shinpan 702,000 2,345
Nippon Steel 1,091,000 2,966
Nippon Telegraph & Telephone 1,220 15,036
Nippon Yusen Kabushiki Kaishi 320,000 1,177
Nissan Motors 530,000 3,216
Nomura Securities 342,000 5,309
NTT Data 104 1,174
NTT Mobile Communications* 1,204 23,788
Obayashi Corporation 146,000 883
Ono Pharmaceutical 67,000 2,490
Orix Corporation 12,000 1,478
Osaka Gas 411,000 1,373
Rohm Limited 73,600 15,407
Sakura Bank 1,101,000 8,287
Sankyo 187,000 5,630
Sanwa Bank 131,000 1,756
Secom 19,000 1,698
Secom Co Limited- New* 19,000 1,734
Sekisui Chemical 256,000 1,448
Sekisui House 537,000 6,073
Seven Eleven 16,000 1,407
Shin Etsu Chemical 60,000 2,506
Shinden 16,000 98
Shohkoh Fund 4,400 3,291
Skylark 53,000 1,446
SMC Corporation 13,000 1,835
Softbank Corporation 7,300 2,782
Sony Corporation 116,900 17,498
Sony Corporation ADR 4,400 660
- --------------------------------------------------------------------------------
Market
Description Shares Value (000)
- --------------------------------------------------------------------------------
Sony Music Entertainment 38,500 $ 4,799
Sumitomo Bank 437,000 6,578
Sumitomo Chemical 358,000 1,826
Sumitomo Pipe & Tube 137,000 715
Suzuki Motor 210,000 3,416
Taiheiyo Cement Corporation 381,000 989
Takeda Chemical Industries 237,000 12,821
Takefuji Corporation 11,600 1,935
TDK Corporation 29,000 3,364
Terumo 46,000 1,424
THK Corporation 31,000 916
Tokai Bank 247,000 1,787
Tokio Marine & Fire Insurance 105,000 1,245
Tokyo Electric Power 151,500 3,506
Tokyo Electronics 173,000 15,056
Toray 308,000 1,594
Toshiba 146,000 1,089
Toyo Seikan Kaisha 75,000 1,623
Toyota Motor 278,000 8,866
Yamanouchi Pharmaceutical 79,000 3,709
Yamato Transportation 86,000 2,189
--------
471,795
--------
Malaysia -- 0.0%
Austral Enterprises 188,000 183
Westmont Berhad Industries* (1) 218,000 --
--------
183
--------
Mexico -- 0.3%
Telefonos de Mexico ADR 84,500 6,021
Cementos de Mexico ADR 5,608 135
--------
6,156
--------
Netherlands -- 7.8%
ABN AMRO Holding 103,000 2,324
Aegon 91,283 7,887
ASM Lithography Holding 66,800 4,543
Dordtsche Petrol 85,082 4,176
DSM 466,716 18,665
Elsevier 919,200 9,485
Fortis Amev 353,438 11,470
Heineken 65,000 3,246
Hoogovens 41,566 2,369
Ing Groep 185,284 10,104
Konink Philips Electronics 163,597 16,531
KPN 137,768 6,062
Laurus 507,881 11,730
Royal Dutch Petroleum 309,882 18,059
Vendex KBB 66,912 1,932
VNU 435,505 15,181
--------
143,764
--------
10
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Market
Description Shares Value (000)
- --------------------------------------------------------------------------------
New Zealand -- 0.2%
Auckland International
Airport Limited 42,900 $ 62
Fletcher Challenge Building 67,900 84
Fletcher Challenge Energy 30,400 76
Fletcher Challenge Paper 155,000 107
Independent Newspapers
Limited 32,000 114
Telecom of New Zealand 696,781 2,755
Warehouse Group Limited 18,900 71
---------
3,269
---------
Norway -- 0.3%
Kvaerner 21,400 432
Norsk Hydro 110,400 4,721
Orkla, Series A 15,000 230
---------
5,383
---------
Philippines -- 0.0%
Metro Bank & Trust 105,350 775
---------
Singapore -- 0.8%
City Developments 80,000 407
Datacraft Asia 40,000 176
DBS Group Holdings Limited 435,191 4,868
Fraser & Neave 50,000 163
Ges International 200,000 161
Jit Holdings Limited 132,000 244
Keppel Land International 120,000 149
Neptune Orient Lines 78,000 94
OCBC 'F' 63,000 490
Overseas Union Bank 46,593 207
Parkway Holdings 50,000 91
Singapore Airlines Limited 32,000 313
Singapore Press Holdings 184,078 2,904
Singapore Tech Engineering 2,152,000 2,749
Singapore Telecommunications 342,000 624
Sunright 130,000 87
United Overseas Bank 72,000 547
---------
14,274
---------
South Africa -- 0.2%
Sasol 290,400 2,235
South Africa Brewery 165,089 1,403
---------
3,638
---------
South Korea -- 0.1%
Korea Telecom ADR 45,913 1,699
---------
- --------------------------------------------------------------------------------
Market
Description Shares Value (000)
- --------------------------------------------------------------------------------
Spain -- 2.0%
Argentaria 120,419 $ 2,660
Banco Popular Espanol 24,383 1,691
Endesa 305,516 5,828
Repsol 241,400 4,747
Telefonica de Espana 1,413,385 22,715
---------
37,641
---------
Sweden -- 2.8%
Astrazeneca 155,386 6,534
Electrolux AB 525,004 9,891
Ericsson, Series B 827,586 25,884
Foreningssparbaken, Series A 153,100 2,507
Hennes & Mauritz, Series B 225,493 5,734
SKF, Series B 64,200 1,455
Trelleborg, Series B 48,800 468
---------
52,473
---------
Switzerland -- 5.7%
ABB Limited 131,788 13,667
Adecco 21,786 12,230
Baloise Holding 7,170 5,939
Clariant, Registered 32,384 14,734
Compagnie Financiere Richemont 2,465 5,010
Credit Suisse Group 8,500 1,564
Holderbank Financiere Glarus 3,380 4,408
Nestle, Registered 4,570 8,623
Novartis 5,681 8,461
Sairgroup, Registered 19,230 4,175
Schweizerische
Rueckversicherungs 1,430 2,866
SGS Societe Generale
Surveillance Holdings 2,200 2,479
Sulzer 2,110 1,338
Swisscom 15,684 4,911
UBS, Registered 47,960 13,574
Zurich Allied 1,430 801
---------
104,780
---------
Taiwan -- 0.5%
Asustek Computer GDR 165,000 2,195
Taiwan Semiconductor ADR 227,550 6,713
---------
8,908
---------
United Kingdom -- 17.7%
3I Group 379,200 4,758
Abbey National 661,955 11,750
Astrazeneca 12,700 537
Barclays Bank 642,500 18,863
Berkeley Group 120,633 1,164
11
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
SEI Institutional International Trust -- September 30, 1999
International
Equity Fund--Concluded
- --------------------------------------------------------------------------------
Market
Description Shares Value (000)
- --------------------------------------------------------------------------------
Boc Group 209,900 $ 4,376
British Aerospace 693,630 4,571
British American Tobacco 190,785 1,637
British Sky Broadcasting 1,765,397 17,078
British Steel 1,000,000 2,540
British Telecommunications 916,507 13,877
Cadbury Schweppes 656,800 4,561
CGU 679,200 10,485
Coca-Cola Beverages 303,000 604
Diageo 295,493 3,019
Dixons Group 130,000 2,316
EMI Group 191,600 1,401
Enterprise Oil 187,900 1,281
George Wimpey 762,500 1,595
GKN 194,800 3,110
Glaxo Wellcome 634,882 16,559
Great Universal Stores 1,117,000 8,424
Hanson 141,400 1,090
Imperial Chemical Industries 180,611 2,003
Invensys 1,190,700 5,804
Kingfisher 392,000 4,202
National Westminster Bank 690,000 16,088
Next 339,500 3,421
Orange 224,300 4,410
Railtrack Group 466,630 9,820
Reckitt & Colman 1,672 21
Reed International 384,919 2,317
Reuters Group 445,000 5,023
RJB Mining 295,500 236
Royal & Sun Alliance 1,739,510 13,720
Shell Transportation & Trading 408,000 3,050
Signet Group 1,065,600 873
SmithKline Beecham 976,763 11,234
Somerfield 604,051 1,278
Standard Chartered Bank 974,695 14,092
Tate & Lyle 320,000 1,971
Thames Water 398,775 6,241
TI Group 450,000 3,242
Unilever 239,500 2,254
United Utilities 892,800 9,769
Vodafone Airtouch 1,922,658 45,526
Whitbread, Series A 876,147 11,008
Yorkshire Water 239,700 1,545
Zeneca Group 296,665 12,442
---------
327,186
---------
Total Foreign Common Stocks
(Cost $1,512,270) 1,787,079
---------
Foreign Preferred Stock -- 0.1%
Italy -- 0.2%
Fiat Spa* 174,500 2,883
---------
Total Foreign Preferred Stock
(Cost $3,685) 2,883
---------
- --------------------------------------------------------------------------------
Face Market
Description Amount (000) Value (000)
- --------------------------------------------------------------------------------
U.S. Treasury Obligation -- 0.2%
U.S. Treasury Bill (2)
4.72%, 02/03/00 $ 4,000 $ 3,935
----------
Total U.S. Treasury Obligation
(Cost $3,937) 3,935
----------
Repurchase Agreements -- 2.4%
J.P. Morgan
5.35%, dated 09/01/99, matures
10/01/99, repurchase price
$19,109,387 (collateralized by
U.S. Treasury Note, due
08/31/01, 5.50%, par value
$19,381,000, market value
$19,399,198) 19,018 19,018
State Street Bank
4.25%, dated 09/30/99, matures
10/01/99, repurchase price
$24,691,914 (collateralized by
various U.S. Treasury Notes,
due 09/30/01-08/15/19,
5.625%-8.125%, ranging in
par value $10,840,000-$12,110,000,
total market value
$25,190,350) 24,689 24,689
----------
Total Repurchase Agreements
(Cost $43,707) 43,707
----------
Total Investments -- 99.6%
(Cost $1,563,599) 1,837,604
----------
Other Assets and Liabilities, Net -- 0.4% 7,281
----------
Net Assets:
Fund Shares of Class A (unlimited
authorization -- no par value)
based on 152,608,039 outstanding
shares of beneficial interest 1,547,861
Fund Shares of Class D (unlimited
authorization -- no par value) based
on 35,572 outstanding shares of
beneficial interest 354
Undistributed net investment income 2,313
Accumulated net realized gain
on investments 20,054
Net unrealized appreciation on investments 274,005
Net unrealized depreciation on futures contracts (64)
Net unrealized appreciation on
forward foreign currency contracts,
foreign currency and translation of
other assets and liabilities in
foreign currency 362
----------
Total Net Assets -- 100.0% $1,844,885
==========
12
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Market
Description Shares Value (000)
- --------------------------------------------------------------------------------
Net Asset Value, Offering Price and
Redemption Price Per Share --
Class A $12.09
==========
Net Asset Value, Offering Price and
Redemption Price Per Share --
Class D $11.97
==========
Maximum Offering Piece Per Share --
Class D ($11.97 / 95%) $12.60
==========
* Non-income producing security
Amounts designated as "--" are either $0 or have been rounded to $0.
ADR -- American Depository Receipt
'F' -- Foreign
GDR -- Global Depository Receipt
(1) Security fair valued using methods determined in good faith by the valuation
committee of the Board of Trustees.
(2) Securities segregated to collateralize futures contracts with an aggregate
market value of $23,590,023.
The accompanying notes are an integral part of the financial statements.
EMERGING MARKETS
EQUITY FUND
Foreign Common Stocks -- 90.1%
Argentina -- 1.6%
Banco Rio de la Plata 90,180 $ 969
Quilmes Industrial ADR 348,060 3,328
Telecom Argentina Stet
France ADR* 245,195 6,544
Telefonica Argentina ADR 119,456 3,151
-----------
13,992
-----------
Brazil -- 5.1%
Aracruz Celulose ADR 144,350 3,013
Centrais Eletricas Brasileiras 71,845,000 1,189
Centrais Eletricas
Brasileiras ADR 22,740 190
CIA Electric Est Rio Janeiro* 6,542,302,000 1,252
CIA Paranaense
Energia ADR 255,315 1,676
CIA Siderurgica Nacional 14,000 361
CIA Vale Rio Doce ADR* 99,905 2,107
Companhia Riograndense
Telecom* 16,216,341 3,606
Eletropaulo Eletrecidade
Metropolitana* 59,613,462 2,805
Embratel Participacoes 224,722 2,570
Petrobras ADR* 185,610 2,862
Sider Nacional CIA 115,965,000 2,908
Tele Centro Sul
Participacoes ADR 44,030 2,444
- -------------------------------------------------------------------------------
Market
Description Shares Value (000)
- -------------------------------------------------------------------------------
Tele Norte Leste
Participacoes ADR 208,960 $ 3,239
Telebras ADR 81,749 6,126
Telecomunicacoes de Sao Paulo
Participacoes ADR 146,410 2,306
Teleleste Celular
Participacoes ADR 3,200 101
Telenordeste Cel
Participacoes ADR 7,130 162
Telesp Celular Participacoes 87,290 2,280
Telesudeste Celular ADR 21,995 473
Unibanco GDR* 126,726 2,241
-------
43,911
-------
Chile -- 2.1%
Banco De A. Edwards ADR 93,860 1,502
Banco Santander ADR 25,455 438
Banco Santiago ADR 52,550 1,051
Cervecerias Unidas ADR 105,791 2,433
Chilectra ADR 173,328 3,286
CIA Telecomunicacion
Chile ADR 251,980 4,551
Distribucion y Sevicio ADR 124,376 2,091
Empresa Nacional de
Electricidad ADR 57,227 744
Enersis ADR 56,490 1,179
Quinenco ADR 104,242 1,055
-------
18,330
-------
Czech Republic -- 0.9%
Ceska Sporitelna 84,600 444
Ceske Radiokomunikace
GDR 144a (A)* 41,600 1,503
Ceske Radiokomunikace GDR* 7,800 282
CEZ 291,710 806
Galena* 8,000 131
Komercni Banka 22,370 586
Komercni Banka GDR 204,300 1,752
SPT Telecom* 84,380 1,285
Tabak 2,200 506
Unipetrol 235,000 407
-------
7,702
-------
Egypt -- 0.3%
Al Ahram Beverage
GDR 144a (A)* 42,000 1,247
Alexandria National
Iron & Steel* 2,947 128
Mobinil Egyptian
Mobile Network 52,300 1,226
-------
2,601
-------
Greece -- 7.2%
Alpha Credit Bank 125,024 10,065
Alpha Finance 18,800 1,492
13
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
SEI Institutional International Trust -- September 30, 1999
Emerging Markets
Equity Fund--Continued
- --------------------------------------------------------------------------------
Market
Description Shares Value (000)
- --------------------------------------------------------------------------------
Athens Medical Care 32,720 $ 1,879
Attica Enterprises 77,600 1,908
Commercial Bank of Greece 56,650 5,252
Commercial Bank of
Greece Rights 18,255 1,312
Delta Informatics 21,900 2,015
Ethniki General Insurance
Company 10,600 657
Hellenic Bottling 62,000 1,492
Hellenic Technodomiki 32,900 1,589
Hellenic Telecommunications
Organization 370,388 8,674
Hellenic Telecommunications
Organization ADR 92,700 1,037
Intracom 74,462 6,346
Maillis 57,980 1,659
National Bank of Greece 114,232 9,178
Sarantis 45,999 1,988
Titan Cement 51,370 6,014
---------
62,557
---------
Hong Kong -- 1.4%
Beijing Enterprises 228,000 382
Cathay Pacific Airways 672,000 1,211
Chengdu Telecom Cable
Company 3,250,000 301
China Telecom* 1,026,000 3,164
Goldlion Holdings Limited 4,000,000 536
Guangdong Kelon Electrical
Holding, Series H 400,000 402
HSBC Holdings 185,600 2,127
Legend Holdings Limited 600,000 572
Ocean Land Group Limited 4,000,000 690
Pacific Century
CyberWorks Limited 1,654,000 1,395
Shanghai Industrial Holdings 200,000 412
Shanghai Petrochemical
Limited 1,800,000 399
Yizheng Chemical Fibre 1,284,000 380
---------
11,971
---------
Hungary -- 1.6%
Borsodchem GDR 23,700 683
Cofinec GDR* 23,450 249
Gedeon Richter GDR 16,595 673
Gedeon Richter GDR 144a (A) 2,500 100
Magyar Tavkozlesi ADR 258,060 7,032
MOL Magyar Olaj ES
Gazipari GDR 96,790 2,171
MOL Magyar Olaj ES
Gazipari GDR 144a (A) 7,000 14
OTP Bank GDR 28,670 1,272
Tiszai Vegyi Kombinat 124,700 1,919
---------
14,113
---------
- --------------------------------------------------------------------------------
Market
Description Shares Value (000)
- --------------------------------------------------------------------------------
India -- 8.9%
Arisaig India Fund 149,953 $ 2,036
BSES GDR 214,950 2,660
Gujarat Ambuja Cement GDR* 60,000 744
Hindalco Industries GDR 475,300 12,988
ICICI Limited ADR 270,300 3,244
India Fund* 612,010 7,880
Industrial Credit and Investment
Corporation of India 98,580 1,176
Infosys Technologies 84,786 12,124
ITC GDR 383,670 9,736
Larsen & Toubro GDR 331,500 7,293
Mahanagar Telephone
Nigam GDR 169,899 1,720
Mahindra & Mahindra
Sponsored GDR 348,000 3,158
Ranbaxy Laboratories GDR 159,800 3,855
State Bank of India* 323,300 4,122
Videsh Sanchar GDR 312,600 4,400
---------
77,136
---------
Indonesia -- 2.0%
Astra International 1,148,500 343
Bank PAN Indonesia 3,490,800 452
Bank PAN Indonesia Warrants 189,300 6
Citra Marga Nusaphala
Persada (1) 4,600,000 198
Daya Guna Samudera 8,500 3
Freeport McMoran
Copper & Gold 102,000 1,587
Gudang Garam 290,000 589
Gulf Indonesia Resources* 105,600 1,063
Hanjaya Mandela Sampoerna 425,000 757
Indah Kiat Pulp & Paper 2,380,000 854
Indofood Sukses Makmur 481,000 460
Indosat 297,500 402
PT Tempo Scan Pacific 175,000 79
Ramayana Lestari 692,500 376
Reliance Industries GDR 670,400 9,184
Tambang Timah 413,000 281
Telekomunikasi Indonesia 2,538,280 903
---------
17,537
---------
Ireland -- 0.3%
Antofagasta Holdings 379,700 2,482
---------
Israel -- 0.5%
Bank Hapoalim 786,400 1,938
Bank Leumi Le Israel 844,600 1,473
Matav Cable Systems Media 52,300 1,103
---------
4,514
---------
Malaysia -- 3.5%
Berjaya Sports 997,000 2,112
Commerce Asset Holdings 1,377,000 2,446
14
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Market
Description Shares Value (000)
- --------------------------------------------------------------------------------
Genting Berhad 574,000 $ 1,918
IOI Corporated Berhad 3,377,000 1,626
Kian Joo Can Factory 295,000 439
MAA Holdings 854,400 1,551
Malayan Banking Berhad 890,600 2,766
Malayan Cement Berhad 4,416,000 1,476
Malaysia International Shipping 950,000 1,300
Malaysian Pacific Industries 657,000 2,282
O.Y.L. Industries 446,200 1,004
Petronas Gas 336,000 707
Rothmans of Pall Mall 330,400 2,017
Sime Darby Malaysia 1,325,000 1,534
Telekom Malaysia 1,145,000 2,968
Tenaga Nasional 1,091,000 2,239
UMW Holdings Berhad 28,000 45
United Engineers* 200,000 297
YTL Corporation Berhad 985,000 1,581
---------
30,308
---------
Mexico -- 13.5%
ALFA, Series A 1,892,649 7,882
Carso Telecom Common* 1,023,732 5,684
Cemex 1,962,921 9,432
Cemex ADR 288,184 6,952
Cifra ADR, Series V 180,072 2,832
Cifra SA de CV, Series C* 83,785 128
Cifra, Series V * 63,094 99
Coca Cola Femsa ADR* 71,520 988
Corporacion Interamericana
de Enterenemienta, Series B* 1,014,000 2,480
Corporacion Interamericana
de Enterenemienta, Series L* 342,000 767
Empresas ICA Sociedad
Controladora 646,181 304
Empresas ICA Sociedad
Controladora ADR 116,734 343
Fomento Economico Mexica
Units 2,460,679 7,725
Fomento Economico
Mexicano, ADR 34,921 1,093
Grupo Carso, Series A1* 1,547,010 6,409
Grupo Financiero Banamex,
Series O* 996,860 1,790
Grupo Financiero Bancomer,
Series O 6,867,960 1,540
Grupo Financiero Banorte 1,177,727 1,235
Grupo Industria Bimbo,
Series A 304,633 638
Grupo Modelo, Series C 717,000 1,807
Grupo Televisa GDR* 302,455 12,080
Kimberly Clark de Mexico,
Series A 2,336,865 8,185
Nuevo Grupo Iusacell* 172,840 1,963
Organizacion Soriana, Series B 979,813 3,923
Telefonos de Mexico ADR 413,708 29,477
- --------------------------------------------------------------------------------
Market
Description Shares Value (000)
- --------------------------------------------------------------------------------
Tubos de Acero de
Mexico ADR* 73,651 $ 902
Vitro ADR* 178,480 736
----------
117,394
----------
Peru -- 0.6%
Buenaventura ADR 93,129 1,612
Credicorp ADR* 107,800 1,125
Telefoncia del Peru ADR 199,148 2,676
----------
5,413
----------
Philippines -- 0.9%
Ayala Land 3,037,000 744
Bank of Philippine Islands 196,434 534
Benpres Holdings 1,420,000 247
C & P Homes 18,889,000 324
International Container
Terminal Services* 2,640,200 252
Manila Electric Company,
Series B 191,640 554
Metro Bank & Trust Company 199,850 1,469
Philippine Long Distance 50,990 1,106
Philippine Long Distance ADR 31,600 687
Queenbee Jollibee, Series F 1,426,500 603
San Miguel, Series B 222,988 339
SM Prime Holdings 7,979,100 1,349
----------
8,208
----------
Poland -- 1.2%
Bank Handlowy GDR 58,500 676
Bank Polska Kasa Opieki SA* 35,500 338
Bank Rozwoju Eksportu 35,258 916
Bank Slaski SA 14,000 700
Elektrim* 73,890 685
Kghm Polska Meidz GDR 109,400 1,316
Kghm Polska Miedz 12,250 69
Netia Holdings* 25,500 456
Orbis* 66,304 485
Pliva GDR* 131,180 1,338
Prokom GDR 24,000 230
Softbank SA GDR 25,600 646
Telekom Polska GDR 471,545 2,322
----------
10,177
----------
Russia -- 1.1%
Gazprom ADR 85,000 589
Lukoil Holding ADR 123,000 3,321
Mosenergo ADR 180,000 467
Rostlecom ADR 105,000 486
Surgutneftegaz ADR 469,500 3,169
Unified Energy Systems GDR 257,000 1,344
----------
9,376
----------
15
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
SEI Institutional International Trust -- September 30, 1999
Emerging Markets
Equity Fund--Continued
- --------------------------------------------------------------------------------
Market
Description Shares Value (000)
- --------------------------------------------------------------------------------
Singapore -- 1.0%
Datacraft Asia 1,080,000 $ 4,752
Del Monte Pacific Limited 872,800 406
Natsteel Electronics 343,000 1,282
Venture Manufacturing 262,000 2,283
---------
8,723
---------
South Africa -- 8.9%
African Oxygen 781,708 1,283
Anglo American 36,700 2,056
Anglo American Platinum 174,000 4,615
Anglogold Limited 25,200 1,587
Barlow 98,800 484
Bidvest Group 194,835 1,298
Billiton (GBP) 964,600 4,042
BOE Corporation Limited 1,754,934 994
Bransby Investment 197,000 33
Comparex Holdings Limited 120,200 806
De Beers Centenary 310,900 8,546
Dimension Data Holdings* 740,503 2,942
Fedsure Holdings Limited 143,400 956
Foschini 754,022 1,671
Gold Fields Limited 332,040 1,535
Impala Platinum Holdings
Limited 50,000 1,724
Imperial Holdings* 159,265 1,406
Investec Group 114,510 3,720
Iscor 1,144,800 442
Liberty Life 159,800 1,251
M-Cell Limited 117,500 194
Metropolitan Life 477,600 549
MIH Holdings Limited 76,400 243
MIH Limited 42,700 1,233
Nampak* 536,100 1,250
Nasionale Pers Beperk 22,100 105
Nedcor 277,602 5,439
Omni Media 57,300 597
Pick N Pay Holdings 1,998,424 982
Pick N Pay Stores 75,312 93
Primedia Limited 104,100 121
Profurn Limited 900,620 675
Rembrandt Group 400,320 3,051
RMB Holdings 2,116,100 3,226
Sanlam* 2,465,600 2,690
Sappi Limited 55,300 539
Sasol 500,500 3,852
South African Breweries 461,275 3,919
Standard Bank Investment 687,410 2,199
Tegniese Beleg 248,800 1,061
Theta Group* 619,400 996
Tiger Oats 118,100 986
Truworths International
Limited 249,600 239
Unitrans Limited 278,400 649
- --------------------------------------------------------------------------------
Market
Description Shares Value (000)
- --------------------------------------------------------------------------------
Woolworths Holdings 965,872 $ 668
---------
76,947
---------
South Korea -- 13.0%
Hansol Paper 154,500 1,677
Hanwha Chemical* 609,877 5,517
Hite Brewery Limited 143,936 4,770
Housing & Commercial Bank* 171,370 3,312
Hyundai Industrial
Development & Construction 204,214 2,242
Hyundai Motor 126,080 2,608
Hyundai Motor GDR 43,900 434
Kookmin Bank 151,500 1,900
Korea Electric Power 312,950 10,294
Korea Line Company 127,040 1,306
Korea Telecom 25,810 1,594
Korea Telecom ADR 140,849 5,211
Korean Air 59,750 860
Kumho Electric Inc.* 71,670 1,786
Lg Chemical 174,430 5,064
Lg Electronics 177,580 5,958
Mirae 497,000 2,657
Pohang Iron & Steel 49,275 5,559
Pohang Iron & Steel ADR 147,600 4,622
Samsung 352,780 5,164
Samsung Electronic 119,196 19,311
Samsung Electronics
GDR 144A (A) 66,386 5,291
Samsung Electronics GDR,
Series A 874 54
Samsung Fire & Marine
Insurance 36,180 1,595
Samsung Securities 77,746 2,525
Shinhan Bank 179,780 1,671
Shinhan Bank ADR 174,915 3,214
SK Telecom 348,497 3,594
Ssangyong Oil Refining 140,230 2,802
---------
112,592
---------
Taiwan -- 9.8%
Accton Technology GDR* 345,432 1,373
Acer 690,000 1,254
Acer GDR 587,500 5,229
Advanced Semiconductor
Engineering GDR* 30,687 593
Advanced Semiconductor
Engineering 598,444 1,711
Ase Test* 166,200 4,030
Asia Cement GDR 194,994 2,047
Asustek Computer 330 3
Asustek Computer GDR 464,766 6,181
Bank Sinopac 5,449,546 2,910
Cathay Life Insurance 1,018,000 2,637
China Development 2,471,000 3,763
16
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Market
Description Shares Value (000)
- --------------------------------------------------------------------------------
China Steel 1,050,000 $ 856
China Steel GDS 216,000 4,304
Chung Housing Bills Finance* 981,342 398
Compal Electronics 145,651 463
CTCI 600,000 531
D-Link 20,000 36
Delta Electronics 546,000 2,053
Formosa Chemical & Fibre 1,040,000 999
Fubon Insurance 66,000 536
Goldsun Development &
Construction* 503,800 163
Hon Hai Precision Industry 420,000 2,760
Hon Hai Precision Industry
GDR (A) 81,600 1,133
Hua Nan Bank 2,130,000 2,860
Pacific Electric Wire & Cable 962,000 471
Siliconware Precision Industries 600,000 1,005
Siliconware Precision
Industries GDR* 40,100 418
Synnex Technology
International 390,176 1,899
Synnex Technology
International GDR 52,000 965
Taiwan American Fund* 80,000 1,137
Taiwan Semiconductor 2,460,000 10,376
Taiwan Semiconductor ADR 333,243 9,831
Tatung 500,000 529
Union Petrochemical 1,050,000 995
United Microelectronics 1,289,050 3,014
Winbond Electronics 144a (A) 175,400 3,219
Yageo GDR 222,000 1,288
Yang Ming Marine
Transport GDR 103,425 628
---------
84,598
---------
Thailand -- 1.3%
Advanced Info Service* 113,900 1,303
Bangkok Bank 'F'* 576,300 1,134
Bangkok Expressway 'F'* 729,500 325
Bec World Public 'F' 187,300 1,016
Industrial Finance 'F'* 350,000 109
Italian Thai Development 'F'* 219,700 274
Kce Electronics* 245,100 494
Kiatnakin Finance Public 475,000 482
National Petrochemical 'F'* 1,046,400 818
PTT Exploration 'F'* 178,300 1,246
Quality House Limited 1,200,000 243
Quality House Public Rights* 1,200,000 60
Siam Cement* 66,800 1,391
Siam Panich Leasing 675,000 474
Telecomasia* 808,800 553
Thai Airways International 'F'* 620,900 835
Thai Farmers Bank 'F'* 237,100 280
Thai Farmers Bank Rights 237,100 164
- --------------------------------------------------------------------------------
Market
Description Shares Value (000)
- --------------------------------------------------------------------------------
Tipco Asphalt 'F'* 199,200 $ 169
-----------
11,370
-----------
Turkey -- 2.6%
Adana Cimento 25,203,000 503
Akbank 58,550,000 877
Akcansa Cimento 34,100,000 466
Aksigorta 22,015,360 621
Alarko Holdings 24,700,000 617
Arcelik 29,294,289 938
Dogan Sirketler Grubu
Holdings 41,776,500 598
Dogan Yayin Holding 149,375,000 600
Ege Biracilik ve Malt Sanayi 14,150,000 461
Eregli Demir Ve Celik
Fabrikalari* 156,765,000 3,573
Haci Omer Sabanci Holdings 58,713,400 1,529
Koc Holdings 7,600,000 734
Migros Turk 6,871,918 2,983
Tansas* 6,279,000 600
Turk Sise VE CAM
Fabrikalari 101,186,000 1,076
Turkiye Garanti Bankasi* 223,580,000 1,626
Turkiye Is Bankasi 116,440,000 2,148
Yapi Ve Kredi Bankasi 214,493,603 2,933
-----------
22,883
-----------
United States -- 0.2%
Seminis 115,625 997
StarMedia Network* 9,700 356
-----------
1,353
-----------
Venezuela -- 0.6%
Compania Anonima Nacional
Telecom ADR 203,492 5,456
-----------
Total Foreign Common Stocks
(Cost $619,544) 781,644
-----------
Foreign Preferred Stocks -- 5.6%
Brazil -- 5.5%
Banco Bradesco 49,400,000 232
Banco Itau 40,261,320 2,082
Celular CRT Participacoes* 24,249,941 2,633
Cemig ADR* 43,560 669
Cemig CIA Energy* 331,583,175 4,972
Centrais Eletricas
Brasileiras SA, Series B* 5,930,900 100
CIA Vale do Rio, Series A 435,713 9,214
CIA Vale do Rio Doce
Unconverted Participants 8,352 --
17
<PAGE>
STATEMENT OF NET ASSETS
- --------------------------------------------------------------------------------
SEI Institutional International Trust -- September 30, 1999
Emerging Markets
Equity Fund--Concluded
- --------------------------------------------------------------------------------
Shares/Face Market
Description Amount (000) Value (000)
- --------------------------------------------------------------------------------
Companhia Paranese de
Energia, Series B* 428,283,169 $ 2,801
Eletrobras ADR* 135,300 1,145
Embratel Participacoes 213,405,000 2,449
Gerdau 107,002,000 1,660
Petrol Brasileiros 77,835,286 11,551
Tele Centro Oeste Celular
Participacoes 233,185 --
Tele Centro Sul Participacoes 138,518,297 1,504
Tele Leste Celular
Participacoes 1,219,220,000 757
Tele Nordeste Celular
Participacoes 171,731,800 205
Tele Norte Celular
Particacoes 1,087,991,000 619
Tele Norte Leste
Participacoes 73,261,000 1,148
Tele Sudeste Celular
Participacoes 133,565,000 583
Telebras* 2,291,000 1
Telecom Brasileiros 2,291,000 172
Telemig Celular, Series C* 98,801 1
Telesp Celular Participacoes 132,313,000 1,299
Telesp* 12,951,000 1,139
Usiminas Gerais* 156,931 495
---------
47,431
---------
Thailand -- 0.1%
Siam Commercial Bank 'F' 525,800 421
Siam Commercial Bank 'F'
Warrants 165,000 41
---------
462
---------
Total Foreign Preferred Stocks
(Cost $45,947) 47,893
---------
Foreign Convertible Bonds -- 0.0%
Taiwan -- 0.0%
Walsin Lihwa
3.250%, 06/16/04 500 377
---------
Total Foreign Convertible Bonds
(Cost $494) 377
---------
Repurchase Agreements -- 5.0%
J.P. Morgan
5.35%, dated 09/01/99, matures
10/01/99, repurchase price
$20,968,496 (collateralized by
U.S. Treasury Bond, due 05/15/01,
5.625%, par value $20,909,000,
market value $21,325,209) $ 20,906 20,907
- --------------------------------------------------------------------------------
Face Amount Market
Description (000) Value (000)
- --------------------------------------------------------------------------------
State Street Bank
4.25%, dated 09/30/99, matures
10/01/99, repurchase price
$22,380,641 (collateralized by
various U.S. Treasury Notes,
due 08/15/19-08/15/25,
6.875%-8.125%, ranging in par
value $10,065,000-$10,260,000,
total market value $22,839,832) $ 22,378 $ 22,378
---------
Total Repurchase Agreements
(Cost $43,285) 43,285
---------
Total Investments -- 100.7%
(Cost $709,270) 873,199
---------
Other Assets and Liabilities, Net -- (0.7%) (6,288)
---------
Net Assets:
Fund Shares of Class A (unlimited
authorization -- no par value) based
on 94,995,229 outstanding shares of
beneficial interest 917,298
Distributions in excess of net
investment income (4,370)
Accumulated net realized loss
on investments (209,548)
Net unrealized appreciation
on investments (2) 163,929
Net unrealized depreciation on forward
foreign currency contracts, foreign
currency and translation of other
assets and liabilities in foreign currency (398)
---------
Total Net Assets-- 100.0% $ 866,911
=========
Net Asset Value, Offering
and Redemption Price
Per Share -- Class A $9.13
=========
* Non-income producing security
Amounts designated as "--" are either $0 or have been rounded to $0.
(1) Security fair valued using methods determined in good faith by the valuation
committee of the Board of Trustees.
(2) Net of $365,920 accrued foreign withholding taxes on appreciated securities.
(A) Securities sold within terms of a private placement memorandum, exempt from
registration under Section 144A of the Securities Act of 1933, as amended,
and may be sold only to dealers.
ADR -- American Depository Receipt
'F' -- Foreign Shares
GBP -- Great Britain Pound
GDR -- Global Depository Receipt
GDS -- Global Depository Share
The accompanying notes are an integral part of the financial statements.
18
<PAGE>
- --------------------------------------------------------------------------------
International Fixed
Income Fund
- --------------------------------------------------------------------------------
Face Amount Market
Description (000)(1) Value (000)
- --------------------------------------------------------------------------------
Foreign Bonds -- 85.7%
Australia -- 0.5%
Commonwealth of Australia
8.750%, 08/15/08 5,700 $ 4,330
---------
Canada -- 2.8%
Government of Canada
5.500%, 09/01/02 6,968 4,737
7.250%, 06/01/07 22,225 16,542
9.000%, 06/01/25 1,005 958
---------
22,237
---------
Denmark -- 0.6%
Kingdom of Denmark
7.000%, 11/15/07 33,300 5,245
---------
France -- 4.2%
Government of France BTAN
4.750%, 03/12/02 30,936 33,696
---------
Germany -- 18.5%
Bundesschatzanweisungen
4.000%, 03/17/00 85,755 92,108
3.000%, 12/15/00 23,980 25,567
Deutschland Republic
4.500%, 07/04/09 5,957 6,065
6.250%, 01/04/24 22,571 25,511
KFW International Finance
6.625%, 04/15/03 582 667
---------
149,918
---------
Greece -- 2.2%
Government of Greece
8.700%, 04/08/05 2,492,500 8,766
8.600%, 03/26/08 2,492,500 9,016
---------
17,782
---------
Hungary -- 2.0%
Government of Hungary
12.500%, 04/12/02 3,929,320 15,938
---------
Italy -- 3.2%
Republic of Italy
4.500%, 07/15/03 24,109 25,793
---------
Japan -- 19.9%
Asian Development Bank
3.125%, 06/29/05 3,413,000 35,662
European Investment Bank
3.000%, 09/20/06 3,658,000 38,115
Export-Import Bank
2.875%, 07/28/05 2,470,000 25,561
- --------------------------------------------------------------------------------
Face Amount Market
Description (000)(1) Value (000)
- --------------------------------------------------------------------------------
Inter-American
Development Bank
1.900%, 07/08/09 2,563,000 $ 24,603
Japanese Development Bank
2.875%, 12/20/06 3,550,000 36,782
---------
160,723
---------
Netherlands -- 18.6%
Kingdom of Netherlands
5.750%, 01/15/04 119,407 133,913
5.500%, 01/15/28 16,515 16,671
---------
150,584
---------
Spain -- 4.4%
Government of Spain
4.250%, 07/30/02 32,990 35,438
---------
Sweden -- 2.6%
Kingdom of Sweden
10.250%, 05/05/03 148,900 21,295
---------
United Kingdom -- 6.2%
United Kingdom Treasury
7.500%, 12/07/06 4,151 7,375
8.500%, 07/16/07 9,677 18,293
8.000%, 12/07/15 11,560 24,555
---------
50,223
---------
Total Foreign Bonds
(Cost $677,720) 693,202
---------
U.S. Treasury Obligations -- 4.6%
U.S. Treasury Bond
6.125%, 11/15/27 680 $ 661
U.S. Treasury Notes
6.750%, 04/30/00 36,229 36,535
5.625%, 05/15/08 260 252
---------
Total U.S. Treasury Obligations
(Cost $37,432) 37,448
---------
U.S. Government Mortgage-
Backed Obligations -- 4.1%
FNMA
6.875%, 06/07/02 GBP 5,150 $ 8,512
FNMA
2.125%, 10/09/07 JPY 1,100 10,835
1.750%, 03/26/08 JPY 1,440 13,843
---------
Total U.S. Government Mortgage-
Backed Obligations
(Cost $30,830) 33,190
---------
19
<PAGE>
STATEMENT OF NET ASSETS/SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
SEI Institutional International Trust -- September 30, 1999
International Fixed
Income Fund--Concluded
- --------------------------------------------------------------------------------
Face Amount Market
Description (000)(1) Value (000)
- --------------------------------------------------------------------------------
Repurchase Agreements -- 3.5%
Morgan Stanley
5.18%, dated 09/24/99, matures
10/01/99, repurchase price
$18,944,062 (collateralized by
U.S. Treasury Note, due 08/15/15,
10.625%, par value $13,520,000,
market value $19,082,533) $18,925 $ 18,925
State Street Bank
4.25%, dated 09/30/99, matures
10/01/99, repurchase price
$9,583,131 (collateralized by
U.S. Treasury Note, due 08/15/25,
6.875%, par value $9,210,000,
market value $9,774,342) 9,582 9,582
---------
Total Repurchase Agreements
(Cost $28,507) 28,507
---------
Total Investments-- 97.9%
(Cost $774,489) 792,347
---------
Other Assets and Liabilities, Net -- 2.1% 17,093
---------
Net Assets:
Fund Shares of Class A (unlimited
authorization -- no par value) based
on 73,416,238 outstanding shares of
beneficial interest 798,651
Undistributed net investment income 1,726
Accumulated net realized loss
on investments (6,181)
Net unrealized appreciation
on investments 17,858
Net unrealized depreciation on forward
foreign currency contracts, foreign
currency and translation of other
assets and liabilities in foreign currency (2,614)
---------
Total Net Assets-- 100.0% $ 809,440
=========
Net Asset Value, Offering
and Redemption Price
Per Share -- Class A $ 11.03
=========
BTAN -- Bons du tresor a Taux Fixe et a Interet Annel
FNMA -- Federal National Mortgage Association
GBP -- Great Britain Pound
JPY -- Japanese Yen
(1) In local currency unless otherwise indicated.
The accompanying notes are an integral part of the financial statements.
Emerging Markets
Debt Fund
- --------------------------------------------------------------------------------
Face Amount Market
Description (000)(1) Value (000)
- --------------------------------------------------------------------------------
Foreign Bonds -- 89.1%
Algeria -- 3.0%
Republic of Algeria FRN
Tranche 1 Restructured
6.813%, 09/04/06 3,000 $ 2,235
Republic of Algeria FRN
Tranche 3 Restructured
6.813%, 03/04/10 6,600 4,653
Republic of Algeria FRN
Tranche A Restructured
7.500%, 03/04/00 1,766 1,722
-------
8,610
-------
Argentina -- 16.9%
Government of Argentina
11.000%, 12/04/05 10,875 10,342
11.375%, 01/30/17 8,250 7,776
11.750%, 02/12/07 ARS 12,500 10,502
11.750%, 04/07/09 7,950 7,672
Government of Argentina (A)
6.000%, 03/31/23 7,850 5,613
Government of Argentina FRB (A)
6.813%, 03/31/05 924 809
Government of Argentina FRN (A)
11.786%, 04/10/05 6,250 5,406
Government of Argentina
Global Warrant* 10,875 27
-------
48,147
-------
Brazil -- 16.9%
Government of Brazil,
Series EI-L (A)
5.875%, 04/15/06 4,750 3,705
Government of Brazil
FLIRB L Registered (A)
5.000%, 04/15/09 3,000 1,785
Government of Brazil
DCB L Registered (A)
5.938%, 04/15/12 7,500 4,444
Government of Brazil
C Bond Bearer
5.000%, 04/15/14 39,026 24,245
Government of Brazil
C Bond Registered
5.000%, 04/15/14 2,424 1,506
Government of Brazil
DCB L Bearer (A)
5.938%, 04/15/12 300 178
20
<PAGE>
- --------------------------------------------------------------------------------
Face Amount Market
Description (000)(1) Value (000)
- --------------------------------------------------------------------------------
Government of Brazil
Discount Notes, Series ZL
5.875%, 04/15/24 4,100 $ 2,547
Government of Brazil
NMB L Bearer (A)
5.938%, 04/15/09 5,200 3,666
Government of Brazil
NMB L Registered (A)
5.938%, 04/15/09 8,250 5,817
-------
47,893
-------
Bulgaria -- 4.5%
Bulgaria IAB Registered (A)
6.500%, 07/28/11 4,400 3,113
Republic of Bulgaria
Discount Notes, Series A
6.500%, 07/28/24 5,100 3,353
Republic of Bulgaria FLIRB
Non-U.S. Global Bearer, Series A
2.750%, 07/28/12 9,950 6,244
-------
12,710
-------
Colombia -- 4.9%
Republic of Colombia
7.250%, 02/15/03 800 706
8.375%, 02/15/27 1,500 1,050
9.750%, 04/23/09 5,200 4,459
Republic of Columbia
7.270%, 06/15/03 6,000 5,145
Republic of Columbia FRN (A)
12.471%, 08/13/05 2,900 2,683
-------
14,043
-------
Costa Rica -- 0.8%
Government of Costa Rica,
Series B
6.250%, 05/21/15 2,600 2,139
-------
Croatia -- 2.4%
Government of Croatia FRN,
Series A
6.456%, 07/31/10 6,250 4,891
Government of Croatia FRN,
Series B (A)
6.456%, 07/31/06 2,379 1,963
-------
6,854
-------
Ecuador -- 1.6%
Government of Ecuador
Discount Notes FRN
6.750%, 02/28/25 1,750 543
- --------------------------------------------------------------------------------
Face Amount Market
Description (000)(1) Value (000)
- --------------------------------------------------------------------------------
Government of Ecuador
Registered PAR
4.000%, 02/28/25 13,700 $ 3,973
-------
4,516
-------
Ivory Coast -- 0.9%
Ivory Coast FLIRB 144a (A)
2.000%, 03/29/18 2,500 450
Ivory Coast FLIRB Registered (A)
2.000%, 03/29/18 4,000 720
Ivory Coast PDI
2.000%, 03/29/18 5,053 1,364
-------
2,534
-------
Mexico -- 6.2%
Government of Mexico
Discount, Series B
5.875%, 12/31/19 1,925 1,643
Government of Mexico
Discount, Series C
5.874%, 12/31/19 2,500 2,134
Government of Mexico Par
Bonds with Recovery Rights,
Series A
6.250%, 12/31/19 6,300 4,631
Government of Mexico Par
Bonds with Recovery
Rights, Series B
6.250%, 12/31/19 2,950 2,168
Petroleos Mexicanos
9.250%, 03/30/18 3,750 3,150
United Mexico States
11.500%, 05/15/26 1,600 1,760
United Mexico States Warrant* 28,176 2,127
-------
17,613
-------
Morocco -- 3.1%
Morocco R&C Loan FRN,
Tranche A
5.906%, 01/01/09 10,397 8,811
------
Panama -- 1.7%
Government of Panama
8.250%, 04/22/08 2,000 1,740
Government of Panama IRB
4.250%, 07/17/14 4,050 2,876
Government of Panama PDI
4.000%, 07/17/16 298 213
-------
4,829
-------
21
<PAGE>
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
SEI Institutional International Trust -- September 30, 1999
Emerging Markets
Debt Fund--Concluded
- --------------------------------------------------------------------------------
Face Amount Market
Description (000)(1) Value (000)
- --------------------------------------------------------------------------------
Peru -- 3.2%
Republic of Peru FLIRB
3.750%, 03/07/17 12,625 $ 6,770
Republic of Peru PDI
4.500%, 03/07/17 4,000 2,455
--------
9,225
--------
Philippines -- 3.4%
Government of Philippines
9.875%, 01/15/19 10,200 9,677
--------
Poland -- 2.8%
Republic of Poland RSTA
4.000%, 10/27/24 8,000 5,160
Telekomunikacja Polska
SA 144a (A)
7.750%, 12/10/08 2,750 2,671
--------
7,831
--------
Russia -- 6.6%
Russian Government
11.750%, 06/10/03 2,800 1,456
12.750%, 06/24/28 16,460 7,757
Russian Government
Principal Loans*
6.063%, 12/15/20 104,650 9,549
--------
18,762
--------
South Korea -- 0.6%
Korea Development Bank
7.625%, 10/01/02 1,750 1,748
--------
Venezuela -- 9.6%
Government of Venezuela
13.625%, 08/15/18 18,800 17,202
9.250%, 09/15/27 1,250 823
Government of Venezuela
PAR, Series B
6.750%, 03/31/20 3,000 1,958
Government of Venezuela
Discount, Series A (A)
5.875%, 03/31/20 1,500 983
Government of Venezuela
FLIRB, Series A
6.875%, 03/31/07 4,464 3,362
Government of Venezuela DCB
6.313%, 12/18/07 4,047 3,096
Venezuela Par Rights* 15 --
--------
27,424
--------
Total Foreign Bonds
(Cost $263,918) 253,366
--------
- --------------------------------------------------------------------------------
Face Amount/Shares Market
Description (000)(1) Value (000)
- --------------------------------------------------------------------------------
Options -- 0.1%
January 2000, Hong Kong
Dollar Option Put,
Strike Price $7.8025* 84,250,000 $ 143
January 2000, Hong Kong
Dollar Option Put,
Strike Price $7.8165* 42,000,000 42
--------
Total Options
(Cost $1,025) 185
--------
Treasury Note -- 7.1%
US T-Note
6.125%, 08/15/29 $20,000 20,181
--------
Total Treasury Note
(Cost $20,016) 20,181
--------
Repurchase Agreement -- 3.7%
State Street Bank
5.25%, dated 09/30/99, matures
10/01/99, repurchase price
$10,430,520 (collateralized by
U.S. Treasury Note, due
11/15/21, 8.00%, par value
$8,845,000, market value
$10,641,640) 10,429 10,429
--------
Total Repurchase Agreement
(Cost $10,429) 10,429
--------
Total Investments -- 100.0%
(Cost $295,388) $284,161
========
* Non-income producing security
Amounts designated as "--" are either $0 or have been rounded to $0.
(A) Securities sold within terms of a private placement memorandum, exempt from
registration under Section 144a of the Securities Act of 1933, as amended,
and may be sold only to dealers in that program or other "accredited
investors". These securities have been determined to be liquid under
guidelines established by the Board of Trustees.
ARS -- Argentina Peso
DCB -- Discount Bond
FLIRB -- Front Loaded Interest Reduction Bond
FRB -- Floating Rate Bond
FRN -- Floating Rate Note
IAB -- Interest Arrears Bond
IRB -- Interest Revenue Bond
NMB -- New Money Bond
PDI -- Past Due Interest
RSTA -- Revolving Short Term Agreement
(1) In U.S. dollars unless otherwise indicated.
The accompanying notes are an integral part of the financial statements.
22
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES (000)
- -------------------------------------------------------------------------------
SEI Institutional International Trust -- September 30, 1999
--------
Emerging
Markets
Debt Fund
--------
Assets:
Investment securities (Cost $295,388) $284,161
Interest receivable 7,085
Receivable for investment securities sold 22,476
Receivable for shares of beneficial interest sold 2,205
Other assets 65
--------
Total Assets 315,992
--------
Liabilities:
Payable for investment securities purchased 25,658
Payable for shares of beneficial interest redeemed 5,174
Payable to affiliates 394
Other liabilities 773
--------
Total Liabilities 31,999
--------
Net Assets $283,993
========
Net Assets:
Fund shares of Class A (unlimited
authorization -- no par value) based
on 35,031,158 outstanding shares of
beneficial interest 307,050
Undistributed net investment income 20,913
Accumulated net realized loss on investments (32,743)
Net unrealized depreciation on investments (11,227)
--------
Net Assets $283,993
========
Net asset value, offering and redemption
price per share -- Class A $ 8.11
========
The accompanying notes are an integral part of the financial statements.
23
<PAGE>
STATEMENT OF OPERATIONS (000)
- -------------------------------------------------------------------------------
SEI Institutional International Trust-- For the year ended September 30, 1999
<TABLE>
<CAPTION>
------------ ----------- ------------- ---------
Emerging International Emerging
International Markets Fixed Markets
Equity Fund Equity Fund Income Fund Debt Fund
------------ ----------- ------------- ---------
<S> <C> <C> <C> <C>
Investment Income:
Dividends $ 23,817 $ 10,791 $ -- $ --
Interest 1,572 1,115 25,920 30,562
Less: Foreign Taxes Withheld (2,293) (559) -- --
-------- -------- -------- -------
Total Investment Income 23,096 11,347 25,920 30,562
-------- -------- -------- -------
Expenses:
Management fees 6,241 4,600 3,908 1,458
Investment advisory fees 7,004 7,431 1,954 1,907
Less: Investment advisory fees waived (380) (1,377) (326) (641)
Shareholder servicing fees 3,466 1,769 1,628 561
Less: Shareholder servicing fees waived -- -- (1,115) (415)
Custodian/wire agent fees 948 1,183 241 65
Professional fees 102 53 46 18
Registration & filing fees 183 44 106 30
Printing fees 82 37 42 11
Trustee fees 31 14 14 5
Pricing fees 21 19 19 17
Distribution fees 1 -- -- --
Amortization of deferred organization costs -- 2 1 4
Other expenses 53 25 21 8
-------- -------- -------- -------
Total Expenses 17,752 13,800 6,539 3,028
-------- -------- -------- -------
Net Investment Income (Loss) 5,344 (2,453) 19,381 27,534
-------- -------- -------- -------
Net Realized and Unrealized Gain (Loss)
on Investments and Foreign Currency
Transactions:
Net realized gain (loss) from:
Security transactions 30,559 (34,375) (3,927) (776)
Futures contracts 2,274 -- -- --
Net realized gain (loss) on forward foreign
currency contracts and foreign
currency transactions (641) (2,152) (6,019) 12
Net change in unrealized appreciation
(depreciation) on forward foreign
currency contracts, futures contracts,
foreign currencies, and translation
of other assets and liabilities
in foreign currency 1,244 (117) (4,342) --
Net change in unrealized appreciation
(depreciation) on investments 372,263 301,729* (11,734) 29,103
-------- -------- -------- -------
Net Increase (Decrease) in Net Assets
from Operations $411,043 $262,632 $ (6,641) $55,873
======== ======== ======== =======
</TABLE>
* Net of $365,920 charge in accrued foreign withholding taxes on appreciated
securities.
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
24
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (000)
- -------------------------------------------------------------------------------
SEI Institutional International Trust--For the year ended September 30, 1999,
the seven month period ended September 30, 1998 and for the year ended February
28, 1998
<TABLE>
<CAPTION>
------------------------------------- -------------------------------------
International Emerging Markets
Equity Fund Equity Fund
------------------------------------- -------------------------------------
10/1/98- 3/1/98- 3/1/97- 10/1/98- 3/1/98- 3/1/97-
9/30/99 9/30/98 2/28/98 9/30/99 9/30/98 2/28/98
------------------------------------- -------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net investment income (loss) $ 5,344 $ 9,403 $ 8,682 $ (2,453) $ 4,679 $ (241)
Net realized gain (loss)
from investment transactions 32,833 56,947 (9,726) (34,375) (146,444) (26,146)
Net realized gain (loss)
on forward foreign currency contracts
and foreign currency transactions (641) (2,404) 4,310 (2,152) (1,510) (2,534)
Net change in unrealized appreciation
(depreciation) on forward foreign
currency contracts, futures contracts,
foreign currencies, and translation of
other assets and liabilities
denominated in foreign currencies 1,244 (6,248) 5,259 (117) (302) 9
Net change in unrealized appreciation
(depreciation) on investments 372,263 (171,208) 60,622 301,729* (127,954) (38,411)
----------- --------- --------- --------- --------- ---------
Net increase (decrease)
in net assets from operations 411,043 (113,510) 69,147 262,632 (271,531) (67,323)
----------- --------- --------- --------- --------- ---------
Distributions From:
Net investment income:
Class A (11,193) -- (13,649) (1,049) -- (1,039)
Class D (3) -- (4) -- -- --
Net realized gains:
Class A (37,113) -- (19,564) -- -- (284)
Class D (12) -- (6) -- -- --
----------- --------- --------- --------- --------- ---------
Total distributions (48,321) -- (33,223) (1,049) -- (1,323)
----------- --------- --------- --------- --------- ---------
Capital Share Transactions (1):
Class A:
Proceeds from shares issued 1,066,515 445,665 485,986 450,898 361,528 421,404
Reinvestment of cash distributions 43,631 -- 25,961 1,011 -- 1,122
Cost of shares redeemed (595,013) (217,039) (220,367) (345,051) (101,275) (65,606)
----------- --------- --------- --------- --------- ---------
Increase in net assets from
Class A transactions 515,133 228,626 291,580 106,858 260,253 356,920
----------- --------- --------- --------- --------- ---------
Class D:
Proceeds from shares issued 44 128 150 -- -- --
Reinvestment of cash distributions 15 -- 10 -- -- --
Cost of shares redeemed (67) (50) (59) -- -- --
----------- --------- --------- --------- --------- ---------
Increase in net assets from
Class D transactions (8) 78 101 -- -- --
----------- --------- --------- --------- --------- ---------
Increase in Net Assets Derived from
Capital Share Transactions 515,125 228,704 291,681 106,858 260,253 356,920
----------- --------- --------- --------- --------- ---------
Net increase (decrease) in net assets 877,847 115,194 327,605 368,441 (11,278) 288,274
Net Assets:
Beginning of period 967,038 851,844 524,239 498,470 509,748 221,474
----------- --------- --------- --------- --------- ---------
End of period $ 1,844,885 $ 967,038 $ 851,844 $ 866,911 $ 498,470 $ 509,748
=========== ========= ========= ========= ========= =========
(1) Capital Share Transactions:
Class A:
Shares issued 97,155 42,475 49,078 56,297 44,898 36,760
Shares issued in lieu of cash distributions 4,292 -- 2,802 141 -- 112
Shares redeemed (54,402) (20,820) (22,162) (42,292) (12,415) (5,763)
----------- --------- --------- --------- --------- ---------
Total Class A transactions 47,045 21,655 29,718 14,146 32,483 31,109
----------- --------- --------- --------- --------- ---------
Class D:
Shares issued 4 12 16 -- -- --
Shares issued in lieu of cash distributions 2 -- 1 -- -- --
Shares redeemed (7) (5) (6) -- -- --
----------- --------- --------- --------- --------- ---------
Total Class D transactions (1) 7 11 -- -- --
----------- --------- --------- --------- --------- ---------
Net increase in capital shares 47,044 21,662 29,729 14,146 32,483 31,109
=========== ========= ========= ========= ========= =========
</TABLE>
Amounts designated as "--" are either $0 or have been rounded to $0
* Net of $365,920 charge in accrued foreign withholding taxes on appreciated
securities.
The accompanying notes are an integral part of the financial statements.
25
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (000)
- -------------------------------------------------------------------------------
SEI Institutional International Trust-- For the year ended September 30, 1999,
the seven month period ended September 30, 1998 and for the year ended February
28, 1998 26
<TABLE>
<CAPTION>
----------------------------------- -----------------------------------
International Emerging Markets
Fixed Income Fund Debt Fund (1)
----------------------------------- -----------------------------------
10/1/98- 3/1/98- 3/1/97- 10/1/98- 3/1/98- 6/29/97-
9/30/99 9/30/98 2/28/98 9/30/99 9/30/98 2/28/98
----------------------------------- -----------------------------------
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net investment income $ 19,381 $ 9,840 $ 11,722 $ 27,534 $ 10,065 $ 4,652
Net realized gain (loss)
from investment transactions (3,927) 5,777 2,697 (776) (29,101) (2,866)
Net realized gain (loss) on
forward foreign currency
contracts and foreign
currency transactions (6,019) 7,250 (8,722) 12 (1) (26)
Net change in unrealized
appreciation (depreciation)
on forward foreign currency
contracts, futures contracts,
foreign currencies, and translation
of other assets and liabilities
denominated in foreign currencies (4,342) 3,174 (2,725) -- -- --
Net change in unrealized appreciation
(depreciation) on investments (11,734) 28,366 8,742 29,103 (42,403) 2,073
--------- --------- --------- --------- --------- ---------
Net increase (decrease)
in net assets from operations (6,641) 54,407 11,714 55,873 (61,440) 3,833
--------- --------- --------- --------- --------- ---------
Distributions From:
Net investment income:
Class A (25,854) -- (2,928) (18,629) -- (2,694)
Net realized gains:
Class A (9,656) -- (3,022) -- -- --
--------- --------- --------- --------- --------- ---------
Total distributions (35,510) -- (5,950) (18,629) -- (2,694)
--------- --------- --------- --------- --------- ---------
Capital Share Transactions (1):
Class A:
Proceeds from shares issued 473,365 169,657 271,882 145,289 108,932 160,754
Reinvestment of cash distributions 33,746 -- 5,305 18,391 -- 2,651
Cost of shares redeemed (189,320) (99,238) (78,196) (79,869) (38,838) (10,260)
--------- --------- --------- --------- --------- ---------
Increase in Net Assets Derived from
Capital Share Transactions 317,791 70,419 198,991 83,811 70,094 153,145
--------- --------- --------- --------- --------- ---------
Net increase in net assets 275,640 124,826 204,755 121,055 8,654 154,284
Net Assets:
Beginning of period 533,800 408,974 204,219 162,938 154,284 --
--------- --------- --------- --------- --------- ---------
End of period $ 809,440 $ 533,800 $ 408,974 $ 283,993 $ 162,938 $ 154,284
========= ========= ========= ========= ========= =========
(1) Capital Share Transactions:
Class A:
Shares issued 42,467 15,600 25,735 19,085 13,614 15,725
Shares issued in lieu of cash distributions 2,846 -- 504 2,533 -- 263
Shares redeemed (16,794) (8,988) (7,344) (10,439) (4,725) (1,025)
--------- --------- --------- --------- --------- ---------
Net increase in capital shares 28,519 6,612 18,895 11,179 8,889 14,963
========= ========= ========= ========= ========= =========
</TABLE>
Amounts designated as "--" are either $0 or have been rounded to $0.
(1) Emerging Markets Debt commenced operations on June 29, 1997.
The accompanying notes are an integral part of the financial statements.
26
<PAGE>
FINANCIAL HIGHLIGHTS
- -------------------------------------------------------------------------------
SEI Institutional International Trust -- For the year ended September 30, 1999,
the seven month period ended September 30, 1998 and for the years ended February
28, or 29.
For a Share Outstanding Throughout each Period
<TABLE>
<CAPTION>
Ratio of
Net
Invest-
ment
Ratio Income/
of Net (Loss)
Invest- Ratio of to
Net Distri- Distri- Ratio ment Expenses Average
Net Net Realized butions butions Net of Income/ to Net
Asset Invest- and Un- from from Asset Expenses (Loss) Average Assets Port-
Value ment realized Net In- Realized Value Net Assets to Aver- to Aver- Net Assets Exclu- folio
Beginning Income/ Gains/ vestment Capital End of Total End of age Net age Net (Excluding ding Turnover
of Period (Loss) (Losses) Income(4) Gains Period Return Period (000) Assets Assets Waivers) Waivers) Rate
- -----------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------
International Equity Fund
- -------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Class A
For the year ended September 30:
1999(5) $ 9.16 $ 0.04 $ 3.34 $(0.10) $(0.35) $12.09 37.86% $1,844,459 1.28% 0.39% 1.31% 0.36% 61%
For the seven month period ended September 30:
1998(5) $10.15 $ 0.07 $(1.06) $-- $ -- $ 9.16 (9.75)%* $ 966,707 1.24% 1.60%+ 1.31%+ 1.53%+ 66%
For the years ended February 28 or 29:
1998(5) $ 9.67 $ 0.17 $ 0.77 $(0.18) $(0.28) $10.15 10.21% $ 851,542 1.21% 1.31% 1.30% 1.22% 75%
1997 10.00 0.09 0.47 (0.07) (0.82) 9.67 5.70 524,062 1.28 1.11 1.42 0.97 117
1996 9.59 0.14 1.45 (0.19) (0.99) 10.00 17.30 347,646 1.25 1.29 1.29 1.25 102
1995 11.00 0.15 (0.97) -- (0.59) 9.59 (7.67) 328,503 1.19 1.30 1.21 1.28 64
Class D
For the year ended September 30:
1999 $ 9.07 $(0.01) $ 3.35 $(0.09) $(0.35) $11.97 37.69% $ 426 1.43% 0.20% 1.46% 0.17% 61%
For the seven month period ended September 30:
1998(5) $10.06 $ 0.06 $(1.05) $-- $ -- $ 9.07 (9.84)%* $ 331 1.39%+ 1.36%+ 1.46%+ 1.29%+ 66%
For the years ended February 28 or 29:
1998(5) $ 9.58 $ 0.15 $ 0.77 $(0.16) $(0.28) $10.06 9.92% $ 302 1.36% 1.16% 1.45% 1.07% 75%
1997 9.93 0.05 0.47 (0.05) (0.82) 9.58 5.39 177 1.55 0.71 1.65 0.61 117
1996 9.56 0.04 1.50 (0.18) (0.99) 9.93 16.77 199 1.65 0.58 1.90 0.33 102
1995(1) 10.81 0.01 (0.67) -- (0.59) 9.56 (6.33)* 51 1.47 0.42 1.48 0.41 64
- -------------------------------------------------------
Emerging Markets Equity Fund
- -------------------------------------------------------
Class A
For the year ended September 30:
1999 $ 6.17 $(0.03) $ 3.00 $(0.01) $ -- $ 9.13 48.23% $ 866,911 1.95% (0.35)% 2.14% (0.54)% 129%
For the seven month period ended September 30:
1998 $10.55 $ 0.07 $(4.45) $-- $ -- $ 6.17 (41.52)%* $ 498,470 1.95%+ 1.51%+ 2.24%+ 1.22%+ 46%
For the years ended February 28 or 29:
1998 $12.87 $(0.03) $(2.25) $(0.03) $(0.01) $10.55 (17.72)% $ 509,748 1.95% (0.12%) 2.36% (0.53)% 76%
1997 10.93 0.01 1.96 (0.02) (0.01) 12.87 18.02 221,474 1.95 (0.04) 2.55 (0.64) 100
1996 10.27 (0.02) 0.72 -- (0.04) 10.93 6.83 67,181 1.95 (0.23) 2.72 (1.00) 104
1995(2) 10.00 0.01 0.26 -- -- 10.27 2.70* 5,300 1.95 1.79 4.98 (1.24) --
- -------------------------------------------------------
International Fixed Income Fund
- -------------------------------------------------------
Class A
For the year ended September 30:
1999 $11.89 $ 0.30 $(0.42) $(0.53) $(0.21) $11.03 (1.36)% $ 809,440 1.00% 2.97% 1.22% 2.75% 278%
For the seven month period ended September 30:
1998 $10.68 $ 0.40 $ 0.81 $-- $ -- $11.89 11.33%* $ 533,800 1.00%+ 3.61%+ 1.21%+ 3.40%+ 112%
For the years ended February 28 or 29:
1998 $10.53 $ 0.23 $ 0.11 $(0.10) $(0.09) $10.68 3.23% $ 408,974 1.00% 3.92% 1.24% 3.68% 280%
1997 10.77 0.71 (0.49) (0.38) (0.08) 10.53 1.85 204,219 1.00 3.99 1.39 3.60 352
1996 10.42 0.58 0.89 (1.02) (0.10) 10.77 13.96 84,318 1.00 4.70 1.27 4.43 269
1995 10.23 0.43 0.40 (0.62) (0.02) 10.42 8.43 42,580 1.00 4.68 1.30 4.38 303
- -------------------------------------------------------
Emerging Markets Debt Fund
- -------------------------------------------------------
Class A
For the year ended September 30:
1999 $ 6.83 $ 0.84 $ 1.19 $(0.75) $ -- $ 8.11 31.15% $ 283,993 1.35% 12.27% 1.82% 11.80% 184%
For the seven month period ended September 30:
1998 $10.31 $(0.11) $(3.37) $-- $ -- $ 6.83 (33.75)%* $ 162,938 1.35%+ 10.28%+ 1.84%+ 9.79%+ 186%
For the year ended February 28:
1998(3) $10.00 $ 0.56 $-- $(0.25) $ -- $10.31 5.64%* $ 154,284 1.35% 8.05% 1.94% 7.46% 269%
</TABLE>
+ Annualized.
* Returns are for the period indicated and have not been annualized.
(1) International Equity Class D shares were offered beginning May 1, 1994. All
ratios for that period have been annualized.
(2) Emerging Markets Equity Class A shares were offered beginning January 17,
1995. All ratios for that period have been annualized.
(3) Emerging Markets Debt Class A shares were offered beginning June 29, 1997.
All ratios for that period have been annualized.
(4) Distributions from net investment income include distributions of certain
foreign currency gains and losses.
(5) Per share net investment income and net realized and unrealized
gains/(losses) calculated using average shares.
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
27
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- -------------------------------------------------------------------------------
SEI Institutional International Trust -- September 30, 1999
1. Organization
SEI Institutional 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 company with four funds: the International
Equity Fund, the Emerging Markets Equity Fund, the International Fixed Income
Fund and the Emerging Markets Debt Fund (together the "Funds"). The Trust's
prospectuses provide a description of each Fund's investment objectives,
policies, and strategies. The Trust is registered to offer Class A shares of
each of the Funds and Class D shares of the International Equity Fund.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently
followed by the Funds 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 that 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 recently
quoted bid price. Unlisted securities for which market quotations are readily
available are valued at the most recently quoted bid price. Debt obligations
with sixty days or less remaining until maturity may be valued at amortized
cost, which approximates market value. Other securities for which market
quotations are not readily available or securities whose market quotations do
not reflect market value are valued at fair value using good faith pricing
procedures approved by the Board of Trustees.
Federal Income Taxes -- It is the intention of each Fund to continue to
qualify as a regulated investment company and to distribute substantially all of
its taxable income. Accordingly, no provision for Federal income taxes has been
made in the financial statements.
The Funds 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 income earned. The Funds accrue
such taxes when the related income is earned.
Net Asset Value Per Share -- Net asset value per share is calculated on a
daily basis by dividing the assets of each Fund less its liabilities by the
number of outstanding shares of the Fund.
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 to cover principal and
interest, including accrued interest thereon, is sufficient in the event of
default by the counterparty.
The Funds 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 to cover
principal and interest in the event of default by the counterparty of the
repurchase agreement.
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 Fund may be delayed or limited.
Foreign Currency Translation -- The books and records of the Funds 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.
28
<PAGE>
For foreign equity securities, the Funds do not isolate that portion of
gains and losses on investment securities that is due to changes in the foreign
exchange rates from that which is due to changes in market prices of such
securities.
The Funds 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 for Federal income tax purposes.
The Funds 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 Funds may enter into forward
foreign currency contracts as hedges against either specific transactions, fund
positions or anticipated fund positions. The aggregate principal amounts of the
contracts are not recorded as the Funds 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 Funds 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.
Futures Contracts -- The International Equity Fund utilized futures
contracts during the year ended September 30, 1999. The Fund's investment in
these futures contracts is designed to enable the Fund to more closely
approximate the performance of its benchmark index.
Initial margin deposits of cash or securities are made upon entering into
futures contracts. The contracts are "marked to market" daily and the resulting
changes in value are accounted for as unrealized gains and losses. Variation
margin payments are paid or received, depending upon whether unrealized losses
or gains are incurred. When the contract is closed, the Fund records a realized
gain or loss equal to the difference between the proceeds from (or cost of) the
closing transaction and the amount invested in the contract.
Risks related to futures contracts include the possibility that there may
not be a liquid market for the contracts, that the changes in the value of the
contract may not directly correlate with changes in the value of the underlying
securities, and that the counterparty to a contract may default on its
obligation to perform.
Option Selling/Purchasing -- The Funds may invest in financial options
contracts solely for the purpose of hedging its existing portfolio securities,
or securities that the Funds intend to purchase, against fluctuations in fair
value caused by changes in prevailing market interest rates. When the Fund sells
or purchases an option, an amount equal to the premium received or paid by the
Fund is recorded as a liability or an asset and is subsequently adjusted to the
current market value of the option written or purchased. Premiums received or
paid from purchasing options which expire unexercised are treated by the Fund on
the expiration date as realized gains or losses. The difference between the
premium and the amount paid or received on effecting a closing purchase or sale
transaction, including brokerage commissions, is also treated as a realized gain
or loss. If an option is exercised, the premium paid or received is added to the
cost of the purchase or proceeds from the sale in determining whether the Fund
has realized a gain or a loss on investment transactions.
Classes -- Class-specific expenses, such as Shareholder Servicing for Class
A and 12b-1 and Transfer Agent for Class D, 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 Funds are
charged directly to that Fund. Other operating expenses of the Funds are
prorated to the Funds 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.
29
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- -------------------------------------------------------------------------------
SEI Institutional International Trust -- September 30, 1999
Accordingly, $3,200,000 and $258,000 was reclassified from accumulated net
realized gain on investments to undistributed net investment income in the
International Equity and Emerging Markets Equity Funds, respectively. The
International Fixed Income Fund reclassed $2,006,000 from accumulated net
investment income to accumulated net realized loss on investments. The
International Equity Fund also utilized earnings and profits distributed to
shareholders on redemption of shares as a part of the dividends paid deduction
for income tax purposes. Accordingly, the International Equity Fund reclassed
$2,848,000 and $7,378,000 from undistributed net investment income and
accumulated net realized gains on investments respectively, to paid in capital.
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 Fund $(641)
Emerging Markets Equity Fund (2,152)
International Fixed Income Fund (6,019)
Emerging Markets Debt Fund 12
These reclassifications have no effect on net assets or net value per
share.
Other -- Security transactions are reported 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 investment securities are those of the specific
securities sold. Purchase discounts and premiums on securities held by the Funds
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.
3. Management, Investment Advisory and Distribution Agreements
SEI Investments Fund Management (the "Manager") and the Trust are parties to a
management agreement dated September 30, 1988, under which the Manager provides
management, administrative and shareholder services to the Trust for an annual
fee equal to .45% of the average daily net assets of the International Equity
Fund, .60% of the average daily net assets of the International Fixed Income
Fund, and .65% of the average daily net assets of the Emerging Markets Equity
and Emerging Markets Debt Funds. 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 Fund.
SEI Investments Management Corporation ("SIMC") acts as the investment
adviser for the International Equity, Emerging Markets Equity and Emerging
Markets Debt Funds. Under the Invest-ment Advisory Agreement, SIMC receives an
annual fee of .505% of the average daily net assets of the International Equity
Fund, 1.05% of the average daily net assets of the Emerging Markets Equity Fund,
and .85% of the average daily net assets of the Emerging Markets Debt Fund.
As of September 30, 1999, pursuant to Sub-Advisory Agreements with SIMC,
Acadian Asset Manage-ment, Inc., Capital Guardian Trust Company, Scottish Widows
Investment Management Ltd., SG Pacific Asset Management Inc. (formally Yamaichi
Capital Management, Inc.) and Oechsle International Advisors serve as
Sub-Advisers to the International Equity Fund, and SG Pacific Asset Management
Inc. (formally Yamaichi Capital Management. Inc.), Morgan Stanley Asset
Management Inc., Nicholas-Applegate Capital Management Inc., Coronation Asset
Management (Proprietary) Limited, and Credit Suisse Asset Management Limited
serve as Sub-Advisers to the Emerging Markets Equity Fund. Salomon Brothers
Asset Management, Inc. serves as the Sub-Adviser to the Emerging Markets Debt
Fund.
Strategic Fixed Income, LLC, the Adviser for the International Fixed Income
Fund, is a party to an investment advisory agreement with the Trust dated June
15, 1993. Under the investment advisory agreement, Strategic Fixed Income, LLC,
receives an annual fee of up to .30% of the average daily net assets of the
Fund. Strategic Fixed Income, LLC, 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 Fund.
30
<PAGE>
SEI Investments Distribution Co. (the "Distributor"), a wholly-owned
subsidiary of SEI Investments and a registered broker-dealer, serves as each
Fund's distributor pursuant to a distribution agreement with the Trust.
Effective April 15, 1996, the Trust adopted a shareholder servicing plan (the
"Class A Plan") pursuant to which a shareholder servicing fee of up to .25% of
the average daily net assets attributable to the Class A shares are paid to the
Distributor. Under the Class A Plan, the Distributor may perform, or may
compensate other service providers for performing certain shareholder and
administrative services.
The International Equity Fund has adopted a distribution plan for its Class
D shares (the "Class D Plan") pursuant to which a 12b-1 fee of up to .30% of the
average daily net assets attributable to the Class D shares is paid to the
Distributor. As of September 30, 1999, the Distributor was taking a fee under
the Class D Plan of .25% of the average daily net assets attributable to Class D
shares. This payment may be used to compensate financial institutions that
provide distribution-related services to their customers. Under both the Class A
Plan and the Class D Plan, the Distributor may retain as profit any difference
between the fee it receives and the amount it pays to third parties. In
addition, Class D shares incur transfer agency fees of up to .15% of the average
daily net assets. Class D is also subject to a 5% sales load on purchases of
shares.
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.
For the year ended September 30, 1999, the Funds paid commissions of
$660,238 to affiliated broker-dealers.
4. Organizational Costs
Organizational costs have been capitalized by the Funds 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 a Fund acquired by the
Manager are redeemed during the period that the Fund is amortizing its
organizational costs, the redemption proceeds payable to the Manager by the Fund
will be reduced by an amount equal to a pro-rata portion of the unamortized
organizational costs.
The Emerging Markets Equity and International Equity Funds also used the
Distributor as an agent in placing repurchase agreements. For this service the
Distributor retains a portion of the interest earned as a commission. Such
commissions for the period ended September 30, 1999 were $4,152 and $9,959,
respectively.
5. Forward Foreign Currency Contracts
The Funds enter into forward foreign currency exchange contracts as hedges
against fund positions and anticipated fund positions. Such contracts, which are
designed to protect the value of the Fund'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
September 30, 1999:
In Unrealized
Maturity Contracts to Exchange Appreciation
Dates Deliver/Receive For (Depreciation)
-------- --------------- -------- --------------
Emerging Markets Equity Fund
- -----------------------------
Foreign Currency Sales:
10/1/99 GD 91,144,100 $ 292,832 $ 3,639
----------- -------
$ 3,639
=======
International Equity Fund
- -------------------------------------------------------
Foreign Currency Sales:
10/1/99-10/6/99 AD 503,576 $ 329,020 $ 481
10/4/99 CD 127,974 87,152 (89)
10/6/99-10/7/99 EC 429,601 457,154 (2,325)
10/1/99-10/5/99 JY 257,519,943 2,422,094 (878)
10/1/99-10/6/99 UK 555,714 915,494 438
----------- --------
$ 4,210,914 $(2,375)
----------- --------
31
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- -------------------------------------------------------------------------------
SEI Institutional International Trust -- September 30, 1999
In Unrealized
Maturity Contracts to Exchange Appreciation
Dates Deliver/Receive For (Depreciation)
-------- --------------- -------- --------------
Foreign Currency Purchases:
10/1/99 AD 312,204 $ 204,462 $ (780)
10/1/99 CD 748,945 510,529 34
10/1/99 CH 736,964 488,444 4,641
10/1/99-10/29/99 EC 3,319,308 3,525,824 25,356
10/1/99 GD 34,247,458 110,515 884
10/1/99-10/5/99 JY 434,449,339 4,079,895 7,660
10/1/99 ND 255,048 131,860 303
10/4/99 PP 1,558,758 38,205 --
10/1/99-10/5/99 SK 2,162,702 264,544 1,760
10/5/99 UK 1,020,806 1,679,021 1,871
----------- ----------
$11,033,298 $ 41,730
----------- ----------
$ 39,355
==========
International Fixed Income Fund
- --------------------------------
Foreign Currency Sales:
10/1/99-11/18/99 AD 18,441,418 $12,027,721 $ (11,115)
10/1/99-11/18/99 CD 104,101,574 70,857,732 (150,803)
10/1/99-11/18/99 CH 36,184,614 23,691,697 (571,468)
10/1/99-11/18/99 DK 270,832,473 38,225,800 (635,530)
10/1/99-11/18/99 EC 257,331,249 270,634,306 (5,471,582)
11/18/99 GD 2,898,828,938 9,262,618 (119,488)
1/11/00 HD 18,865,415 2,403,850 (21,869)
10/1/99-11/18/99 JY15,203,797,162 146,145,710 2,142,461
10/1/99-11/18/99 SK 114,425,790 13,954,494 (169,257)
10/1/99-11/18/99 UK 27,315,410 44,847,584 (134,192)
------------ -----------
$632,051,512 $(5,142,844)
============ ===========
Foreign Currency Purchases:
10/1/99-11/18/99 AD 7,739,025 $ 5,044,981 $ 6,818
10/1/99-11/18/99 CD 71,034,947 48,335,432 109,263
10/1/99-11/18/99 CH 50,511,544 33,140,634 761,323
10/1/99-11/18/99 DK 398,695,398 56,351,794 893,082
10/1/99-11/18/99 EC 229,711,513 242,080,833 4,368,967
1/11/00 HD 18,865,415 2,395,000 30,719
10/1/99-11/18/99 JY23,153,255,452 223,645,485 (4,333,639)
10/1/99-11/18/99 SK 41,880,709 5,091,881 72,692
10/1/99-11/18/99 UK 47,968,879 78,681,707 311,546
------------ -----------
$694,767,750 $ 2,220,770
------------ -----------
$(2,922,074)
===========
Currency Legend
AD Australian Dollar HD Hong Kong Dollar
CD Canadian Dollar JY Japanese Yen
CH Swiss Franc ND New Zealand Dollar
DK Danish Kroner PP Philippine Peso
EC Euro Currency SK Swedish Krona
GD Greek Drachma UK British Pound Sterling
<PAGE>
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 September 30, 1999, were as follows:
Purchases Sales
(000) (000)
---------- ----------
International Equity Fund $1,273,741 $ 819,649
Emerging Markets Equity Fund 955,070 873,591
International Fixed Income Fund 1,720,523 1,563,738
Emerging Markets Debt Fund 326,378 258,486
The International Fixed Income Fund purchased $370,578,996 and sold
$369,004,832 in U.S. government securities, during the period ended September
30, 1999.
For Federal income tax purposes, the cost of securities owned at September
30, 1999 and the net realized gains or losses on securities sold for the period
then ended was different from the amounts reported for financial reporting
purposes as shown below. The aggregate gross unrealized appreciation and
depreciation at September 30, 1999 for the Funds is as follows:
<TABLE>
<CAPTION>
Book
Net Less: Tax
Appre- Depre- Unrealized Tax Net
ciated ciated Appreciation/ Basis Ad- Appreciation/
Securities Securities (Depreciation) justments (Depreciation)
(000) (000) (000) (000) (000)
---------- ---------- -------------- --------- --------------
<S> <C> <C> <C> <C> <C>
International Equity
Fund $324,874 $(50,869) $274,005 $ 3,301 $270,704
Emerging Markets
Equity Fund 201,958 (38,029) 163,929* 16,893 147,036
International Fixed
Income Fund 25,725 (7,867) 17,858 6,180 11,678
Emerging Markets
Debt Fund 14,944 (26,171) (11,227) 2,271 (13,498)
</TABLE>
*Net of $365,920 charge in accrued foreign withholding tax on
appreciated securities.
32
<PAGE>
Subsequent to October 31, 1998, the following Funds had recognized net capital
and net foreign currency losses that have been deferred to 1999 for tax purposes
and can be used to offset future capital and foreign currency gains at September
30, 2000. The Funds also had capital loss carry-forwards at September 30, 1999,
that can be used to offset future capital gains.
Post Post Capital Loss
10/31/98 10/31/98 Carryovers
Capital Currency Expiring
Loss Deferral Loss Deferral 2005-2007
------------- ------------- ------------
International Equity -- $ 763,608 --
Emerging Markets Equity -- $ 2,270,017 $192,655,877
International Fixed
Income $3,078,291 $16,120,609 --
Emerging Markets Debt -- -- $ 30,471,978
7. Futures Contracts
The International Equity Fund had futures contracts open as of September 30,
1999:
Contract Number of Trade Settlement Unrealized
Description Contracts Price Month Gain/(Loss)
----------- --------- ----- ---------- ----------
Australia Ords Index 2 2,924 December 99 $ (1,349)
Australia Ords Index 4 2,927 December 99 (2,894)
Australia Ords Index 1 2,919 December 99 (593)
Australia Ords Index 2 2,896 December 99 (435)
Australia Ords Index 1 2,940 December 99 (937)
Australia Ords Index 1 2,943 December 99 (986)
Australia Ords Index 1 2,898 December 99 (251)
Australia Ords Index 1 2,899 December 99 (267)
CAC 40 Index 8 4,704 December 99 (7,620)
CAC 40 Index 20 4,700 December 99 (18,192)
CAC 40 Index 10 4,629 December 99 (1,628)
CAC 40 Index 7 4,575 December 99 2,816
CAC 40 Index 3 4,629 December 99 (484)
CAC 40 Index 7 4,613 December 99 16
CAC 40 Index 7 4,554 December 99 4,397
DAX Index 2 5,364 December 99 (10,932)
DAX Index 3 5,375 December 99 (17,256)
DAX Index 7 5,410 December 99 (46,584)
DAX Index 3 5,280 December 99 (9,779)
DAX Index 3 5,209 December 99 (4,194)
DAX Index 1 5,270 December 99 (2,991)
DAX Index 3 5,189 December 99 (2,634)
DAX Index 3 5,150 December 99 468
FT-SE 100 Index 7 6,045 December 99 4,466
FT-SE 100 Index 9 6,100 December 99 (2,364)
FT-SE 100 Index 15 6,128 December 99 (10,791)
FT-SE 100 Index 12 5,978 December 99 20,735
FT-SE 100 Index 8 5,970 December 99 14,885
FT-SE 100 Index 3 6,113 December 99 (1,470)
FT-SE 100 Index 7 6,101 December 99 (2,020
FT-SE 100 Index 9 6,072 December 99 1,689
Hang Seng Index 6 13,042 October 99 (11,857)
Hang Seng Index 1 12,950 October 99 (1,384)
Hang Seng Index 1 12,920 October 99 (1,191)
Hang Seng Index 1 12,890 October 99 (998)
IBEX 35 Index 1 9,645 October 99 (1,587)
IBEX 35 Index 2 9,730 October 99 (4,943)
IBEX 35 Index 2 9,685 October 99 (4,002)
IBEX 35 Index 1 9,686 October 99 (2,011)
Contract Number of Trade Settlement Unrealized
Description Contracts Price Month Gain/(Loss)
----------- --------- ----- ---------- ----------
IBEX 35 Index 1 9,687 October 99 $ (2,022)
IBEX 35 Index 2 9,650 October 99 (3,267)
IBEX 35 Index 1 9,600 October 99 (1,108)
IBEX 35 Index 2 9,690 October 99 (4,110)
IBEX 35 Index 1 9,537 October 99 (432)
NIKKEI 225 Index 8 17,430 December 99 3,655
NIKKEI 225 Index 8 17,150 December 99 14,380
NIKKEI 225 Index 20 17,560 December 99 (2,437)
NIKKEI 225 Index 19 17,020 December 99 47,195
NIKKEI 225 Index 5 17,030 December 99 12,349
NIKKEI 225 Index 10 17,270 December 99 13,392
NIKKEI 225 Index 7 17,350 December 99 6,742
MIB 30 Index 2 34,860 December 99 (9,492)
MIB 30 Index 1 34,615 December 99 (3,468)
MIB 30 Index 1 34,755 December 99 (4,196)
MIB 30 Index 1 34,485 December 99 (2,779)
MIB 30 Index 1 34,640 December 99 (3,590)
--------
$(64,340)
========
8. Concentration of Risks
Each Fund 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 Fund and Emerging Markets
Debt Fund invest 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 International Fixed Income Fund and Emerging Markets Debt
Fund to meet its obligations may be affected by economic and political
developments in a specific country, industry or region.
33
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
SEI Institutional International Trust -- September 30, 1999
9. Loan Participations and Brady Bonds
The Emerging Markets Debt Fund (the "Fund") invests in U.S. dollar-denominated
fixed and floating rate loans ("Loans") arranged through private negotiations
between a foreign sovereign entity and one or more financial institutions
("Lenders"). The Fund invests in such Loans in the form of participations in
Loans ("Participations") or assignments of all or a portion of loans from third
parties ("Assignments"). Participations typically result in the Fund having a
contractual relationship only with the Lender, not with the sovereign borrower.
The Fund has the right to receive payments of principal, interest and any fees
to which it is entitled from the Lender selling the Participation and only upon
receipt by the Lender of the payments from the borrower. In connection with
purchasing Participations, the Fund generally has no right to enforce compliance
by the borrower with the terms of the loan agreement relating to the Loan, nor
any rights of set-off against the bor-rower, and the Fund will not benefit
directly from any collateral supporting the Loan in which it has purchased the
Participation. As a result, the Fund assumes the credit risk of both the
borrower and the Lender that is selling the Participation. The Fund may have
difficulty disposing of Participations and Assignments because the market for
such instruments is not highly liquid.
Certain debt obligations, customarily referred to as "Brady Bonds," are
created through the exchange of existing commercial bank loans to foreign
entities for new obligations in connection with debt restructuring under a plan
introduced by former U.S. Secretary of the Treasury, Nicholas F. Brady. Brady
Bonds have only been issued since 1989, and, accordingly, do not have a long
payment history. They are issued by governments that may have previously
defaulted on the loans being restructured by the Brady Bonds, so are subject to
the risk of default by the issuer. They may be fully or partially collateralized
or uncollateralized and issued in various currencies.
34
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
- -------------------------------------------------------------------------------
To the Shareholders and Board of Trustees of
SEI Institutional International Trust
In our opinion, the accompanying statements of net assets of the International
Equity, Emerging Markets Equity and International Fixed Income Funds and the
statement of assets and liabilities, including the schedule of investments, of
the Emerging Markets Debt Fund, 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, Emerging
Markets Equity, International Fixed Income, and Emerging Markets Debt Funds
(constituting the SEI Institutional International Trust, hereafter referred to
as the "Trust") at September 30, 1999 and the results of each of their
operations for the year then ended, and the changes in each of their net assets
and financial highlights for each of the 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 Trust'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 September 30, 1999 by
correspondence with the custodian and brokers, provide a reasonable basis for
the opinion expressed above.
PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
November 12, 1999
35
<PAGE>
NOTICE TO SHAREHOLDERS
- -------------------------------------------------------------------------------
SEI Institutional International Trust -- September 30, 1999 (Unaudited)
For shareholders that do not have a September 30, 1999 taxable year end, this
notice is for informational purposes only. For shareholders with a September 30,
1999 taxable year end, please consult your tax advisor as to the pertinence of
this notice.
For the fiscal year ended September 30, 1999 the Funds of the SEI Institutional
International Trust are designating the following items with regard to
distributions paid during the year.
<TABLE>
<CAPTION>
LONG TERM ORDINARY
CAPITAL GAINS INCOME
DISTRIBUTIONS DISTRIBUTIONS
PORTFOLIO (TAX BASIS) (TAX BASIS) TOTAL
- --------- -------------- ------------- -----
<S> <C> <C> <C>
International Equity 45% 55% 100%
Emerging Markets Equity 0% 100% 100%
International Fixed Income 1% 99% 100%
Emerging Markets Debt 0% 100% 100%
</TABLE>
36
<PAGE>
- ----------------------
SEI INSTITUTIONAL
INTERNATIONAL TRUST
- ----------------------
ANNUAL REPORT
- ----------------------
September 30, 1999
Robert A. Nesher
Chairman
Trustees
William M. Doran
F. Wendell Gooch
James M. Storey
George J. Sullivan, Jr.
Officers
Edward D. Loughlin
President and Chief Executive Officer
Mark E. Nagle
Controller, Chief Financial Officer
Todd Cipperman
Vice President, Assistant Secretary
Kevin P. Robins
Vice President, Assistant Secretary
Cynthia M. Parrish
Vice President, Assistant Secretary
Lydia A. Gavalis
Vice President, Assistant Secretary
Lynda J. Striegel
Vice President, Assistant Secretary
James R. Foggo
Vice President, Assistant Secretary
Robert Ludwig
Vice President, Assistant Secretary
Richard W. Grant
Secretary
Investment Advisors
International Equity Fund
SEI Investments Management Corporation
Emerging Markets Equity Fund
SEI Investments Management Corporation
International Fixed Income Fund
Strategic Fixed Income LLC
Emerging Markets Debt Fund
SEI Investments Management Corporation
Manager and Shareholder Servicing Agent
SEI Investments Fund Management
Distributor
SEI Investments Distribution Co
.
Independent Accountants
PricewaterhouseCoopers 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 Investments
Distribution Co., 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
<PAGE>
SEI Investments
Distribution
Co.
Oaks, PA 19456-1100
800-DIAL-SEI/800-342-5734
SEI-F--18-09
