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SEI INSTITUTIONAL INVESTMENTS TRUST
SMALL CAP FUND
EMERGING MARKETS EQUITY FUND
SUPPLEMENT DATED OCTOBER 2, 1996
TO THE PROSPECTUS DATED JUNE 14, 1996
THIS SUPPLEMENT PROVIDES NEW AND ADDITIONAL INFORMATION BEYOND THAT CONTAINED IN
THE PROSPECTUS, AND SHOULD BE READ IN CONJUNCTION WITH SUCH PROSPECTUS.
At a meeting held on September 16-17, 1996, the Board of Trustees of SEI
Institutional Investments Trust (the "Trust") voted to make certain changes to
the Money Managers for the Small Cap Fund and the Emerging Markets Equity Fund.
Effective on October 1, 1996, Furman Selz Capital Management LLC has been added
as a new Money Manager to the Small Cap Fund. In addition, also effective on
October 1, 1996, Parametric Portfolio Associates ("Parametric"), Coronation
Asset Management (Proprietary) Limited ("Coronation") and Yamaichi Capital
Management, Inc. ("Yamaichi") and Yamaichi Capital Management (Singapore)
Limited ("YCMS") have been added as new Money Managers to the Emerging Markets
Equity Fund.
The Board of Trustees of the Trust, including all of the Trustees who are not
"interested persons" of the Trust, have appointed Furman Selz as a Money Manager
to the Trust's Small Cap Fund, and Coronation, Parametric and Yamaichi and YCMS
as Money Managers to the Trust's Emerging Markets Equity Fund. The appointment
of each of Furman Selz, Coronation, Parametric and Yamaichi and YCMS does not
require shareholder approval. This procedure for adding or replacing
sub-advisers was authorized by an exemptive order issued to the Trust by the
Securities and Exchange Commission on April 29, 1996, and approved by the
Trust's sole shareholder on June 14, 1996.
In evaluating Furman Selz, Coronation, Parametric and Yamaichi and YCMS
(collectively, the "Money Managers"), the Trustees received written and oral
information from both SEI Financial Management Corporation ("SFM") and Furman
Selz, Coronation, Parametric and Yamaichi and YCMS. SFM recommended the
selection of the Money Managers and reviewed the considerations and the search
process that led to their recommendation. The Trustees also met with
representatives of the Money Managers and considered information about portfolio
managers, investment philosophy, strategies and process, as well as performance
track record, among other factors. In appointing Furman Selz, Coronation,
Parametric and Yamaichi and YCMS, the Trustees carefully evaluated: (1) the
nature and quality of the services expected to be rendered to the Funds by the
Money Managers; (2) the distinct investment objective and policies of the Funds;
(3) the history, reputation, qualification and background of the personnel of
the Money Managers, and their respective financial conditions; (4) their
performance record; and (5) other factors deemed relevant. Trustees also
reviewed the fees to be paid to the Money Managers, including any benefits to be
received by the Money Managers, or their affiliates in connection with soft
dollar arrangements.
Under the Investment Sub-Advisory Agreement (the "Sub-Advisory Agreement")
between SFM (the "Adviser") and Furman Selz, Coronation, Parametric and Yamaichi
and YCMS, relating to the Funds, each of the Money Managers makes investment
decisions for the assets of the Funds allocated to it by SFM, and continuously
reviews, supervises and administers the Funds' investment programs with respect
to these assets. Furman Selz, Coronation, Parametric and Yamaichi and YCMS are
independent of SFM and discharge their responsibilities subject to the
supervision of SFM and the Trustees of the Trust and in a manner consistent with
each Fund's investment objective, policies and limitations. The Sub-Advisory
Agreement is substantially similar to those in existence between the Adviser and
the Trust's other money managers. Specifically, the duties to be performed under
each Agreement are similar, and the standard of care and termination provisions
of the Agreement are identical, to the other agreements. The Sub-Advisory
Agreement will remain in effect until September 1998 (unless earlier terminated)
and will have to be approved annually thereafter by a majority of the Trust's
Trustees, including a majority of the Trustees who are not "interested persons"
of the Trust (as defined in the Investment Company Act of 1940).
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In connection with the appointment of Furman Selz, Coronation, Parametric and
Yamaichi and YCMS as Money Managers to the Small Cap and Emerging Markets Equity
Funds, "The Money Managers" section of the Prospectus is amended and the
following disclosure is inserted:
FURMAN SELZ CAPITAL MANAGEMENT LLC
Furman Selz Capital Management LLC ("Furman Selz") acts as a Money Manager to a
portion of the assets of the Small Cap Fund.
Furman Selz, a Delaware limited liability company whose predecessor was formed
in 1977, is a registered investment adviser that managed approximately $7
billion in assets as of August 31, 1996. Furman Selz is a wholly-owned
subsidiary of Furman Selz Holdings LLC. Furman Selz's principal business address
is 230 Park Avenue, New York, NY 10169. Matthew S. Price and David C. Campbell,
Managing Directors/Portfolio Managers of Furman Selz, are primarily responsible
for the day-to-day management and investment decisions made with respect to the
assets of the Fund. Prior to joining Furman Selz, Mr. Price and Mr. Campbell
were Senior Portfolio Managers at Value Line Asset Management.
The Adviser will pay Furman Selz a fee based on a percentage of the average
monthly market value of the assets of the Fund managed by Furman Selz.
Listed below are the names and principal occupations of the principal executive
officer and each of the directors of Furman Selz. The principal business address
and the principal executive officer and each of the directors, as it relates to
their position at Furman Selz is 230 Park Avenue, New York, New York 10169.
NAME TITLE
Edmund Hajim Chairman & President
H. Kent Atkins Senior Managing Director
Robert Buckles Senior Managing Director
Roger Felberbaum Senior Managing Director
Richard Hoffman Senior Managing Director
Robert Sandroni Senior Managing Director
William Storff Senior Managing Director
Nathalie Badan Managing Director
Jerrold Bertner Managing Director
David Campbell Managing Director
Karen Cronk Managing Director
Donald Gimbel Managing Director
Carl Goldsmith Managing Director
Richard Hatz Managing Director
William Hibschman Managing Director
Rodney McBride Managing Director
Leighton McIlvaine Managing Director
Margaret Preston Managing Director
Matthew Price Managing Director
Robert Schonbrum Managing Director
Alan Segars Managing Director
Burke Vandermast Managing Director
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CORONATION ASSET MANAGEMENT (PROPRIETARY) LIMITED
Coronation Asset Management (Proprietary) Limited ("Coronation") acts as a Money
Manager to a portion of the assets of the Emerging Markets Equity Fund.
Coronation, a registered investment adviser organized under the laws of the
Republic of South Africa, was founded in 1993, and as of July 31, 1996, managed
$2.5 billion in assets. The principal business address of Coronation is 80
Strand Street, Cape Town, South Africa, 8001. Investment decisions for
Coronation's portion of the Fund are made by Anthony Gibson and Louis Stassen.
Prior to joining Coronation in 1993, Mr. Gibson, the head of Coronation's
Investment Committee, and Mr. Stassen, the head of Coronation's research
department, worked at Syfrets Managed Assets for seven years and one year,
respectively. Prior to joining Syfrets Managed Assets, Mr. Stassen worked as an
Investment Analyst for Allan Gray Investment Counsel.
The Adviser will pay Coronation a fee based on a percentage of the average
monthly market value of the assets of the Fund managed by Coronation.
Listed below are the names and principal occupations of the principal executive
officer and each of the directors of Coronation. The principal business address
of the principal executive officer and each of the directors, as it relates to
their position at Coronation, is 80 Strand Street, Cape Town, South Africa,
8001.
NAME TITLE
Gavin M. Ryan Director
David L. Barnes Director
Matthias H. Brenzel Director
Hugh R. Broadhurst Director
Philip L. Campher Director
Matthys M. du Toit Director
Anthony J. Gibson Director
Bruce M. Ilsley Director
Robin I. Marsden Director
John A. Snalam Financial & Compliance Officer
PARAMETRIC PORTFOLIO ASSOCIATES
Parametric Portfolio Associates ("Parametric") acts as a Money Manager to a
portion of the assets of the Emerging Markets Equity Fund.
Parametric is a general partnership whose general partners are PIMCO Advisors
L.P. ("PIMCO"), the supervisory general partner, and Parametric Management,
Inc., the managing general partner (a wholly-owned subsidiary of PIMCO).
Parametric's predecessor was founded in 1987, and as of July 31, 1996,
Parametric managed $1.5 billion in client assets. Parametric's business address
is 700 Newport Center Drive, Newport Beach, California 92660. PIMCO's address is
800 Newport Center Drive, Newport Beach, California 92660. Cliff Quisenberry,
CFA, Senior Investment Manager and Research Manager, is responsible for managing
the portion of the Fund's assets allocated to Parametric. Prior to joining
Parametric, Mr. Quisenberry was a Portfolio Manager with Cutler & Company.
The Adviser will pay Parametric a fee based on a percentage of the average
monthly market value of the assets of the Fund managed by Parametric.
Listed below are the names and principal occupations of the principal executive
officer and each of the directors of Parametric. The principal business address
of the principal executive officer and each of the directors, as relates to
their position at Parametric is 700 Newport Center Drive, Newport Beach,
California 92660.
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NAME TITLE
William E. Cornelius, Jr. Chief Executive Officer
Mark W. England-Markun Director of Research
David M. Stein Chief Investment Officer
YAMAICHI CAPITAL MANAGEMENT, INC. AND YAMAICHI CAPITAL MANAGEMENT (SINGAPORE)
LIMITED
Yamaichi Capital Management, Inc. ("Yamaichi") and Yamaichi Capital Management
(Singapore) Limited ("YCMS") jointly act as Money Managers to a portion of the
assets of the Emerging Markets Equity Fund. The Adviser will pay Yamaichi and
YCMS a fee based on a percentage of the average monthly market value of the
assets of the Emerging Markets Equity Fund managed by Yamaichi and YCMS.
Yamaichi and YCMS already serve as money managers to a portion of the assets of
the International Equity Fund. For a description of Yamaichi and YCMS, see page
16 of the Trust's Prospectus.
The section entitled "1838 Investment Advisors, L.P." on page 7-8 of the
Prospectus is amended to reflect that Holly Guthrie is no longer a fund manager
for the Small Cap Fund.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE.
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