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SEI INSTITUTIONAL INVESTMENTS TRUST
SMALL CAP FUND
INTERNATIONAL EQUITY FUND
EMERGING MARKETS EQUITY FUND
SUPPLEMENT DATED APRIL 21, 1998,
TO THE PROSPECTUS DATED SEPTEMBER 30, 1997
THIS SUPPLEMENT PROVIDES NEW AND ADDITIONAL INFORMATION BEYOND THAT CONTAINED IN
THE PROSPECTUS, AND SHOULD BE READ IN CONJUNCTION WITH SUCH PROSPECTUS.
The Board of Trustees of SEI Institutional Investments Trust (the "Trust"),
including all of the Trustees who are not "interested persons" of the Trust,
appointed Scottish Widows Investment Management Limited ("Scottish Widows") and
SG Yamaichi Asset Management Co., Ltd. (formerly, Yamaichi International Capital
Management Co., Ltd.) ("SG Yamaichi") as Money Managers to the Trust's
International Equity Fund (the "Fund"). Scottish Widows and SG Yamaichi were
approved as Money Managers at the Quarterly Meeting of the Board of Trustees
held on March 23, 1998, and their respective appointments do not require
Shareholder approval. At the same Meeting, the Trustees determined to terminate
Lazard London International Investment Management Limited, Farrell Wako Global
Investment Management, Inc., and Seligman Henderson Co. as Money Managers to the
Fund, effective on March 24, 1998. This procedure for adding and replacing money
managers was approved by the Trust's sole initial Shareholder on June 14, 1996,
and was authorized by an exemptive order issued to the Trust by the Securities
and Exchange Commission on April 29, 1996.
In evaluating Scottish Widows and SG Yamaichi, the Trustees received written and
oral information from SEI Investments Management Corporation ("SIMC"), Scottish
Widows and SG Yamaichi. SIMC recommended the selection of Scottish Widows and SG
Yamaichi and reviewed the consideration and the search process that led to its
recommendations. The Trustees also met with representatives of Scottish Widows
and SG Yamaichi and considered information about portfolio managers, investment
philosophies, strategies and process, as well as their performance track
records, among other factors. In appointing Scottish Widows and SG Yamaichi, the
Trustees carefully evaluated: (1) the nature and quality of the services
expected to be rendered to the Fund by Scottish Widows and SG Yamaichi; (2) the
distinct investment objective and policies of the Fund; (3) the history,
reputation, qualification and background of Scottish Widows' and SG Yamaichi's
personnel and their respective financial conditions; (4) their respective
performance track records; and (5) other factors deemed relevant. The Trustees
also reviewed the fees to be paid to Scottish Widows and SG Yamaichi, including
any benefits to be received by Scottish Widows and SG Yamaichi or their
affiliates in connection with soft dollar arrangements.
Under the Investment Sub-Advisory Agreements (the "Sub-Advisory Agreements")
between SIMC (the "Adviser") and each of Scottish Widows and SG Yamaichi
relating to the Fund, each of Scottish Widows and SG Yamaichi makes investment
decisions for the assets of the Fund allocated to it by SIMC, continuously
reviews, supervises and administers the Fund's investment program with respect
to these assets. Scottish Widows and SG Yamaichi are independent of SIMC and
discharge their responsibility subject to the supervision of SIMC and the
Trustees of the Trust and in a manner consistent with the Fund's investment
objective, policies and limitations. The Sub-Advisory Agreements are
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 Agreements are identical, to the other Agreements. The Sub-Advisory
Agreements will remain in effect until March 2000 (unless earlier terminated),
and will have to be approved annually thereafter by a majority of the Trustees,
including a majority of the Trustees who are not "interested persons" of the
Trust (as defined in the Investment Company Act of 1940).
In connection with the appointment of Scottish Widows and SG Yamaichi as Money
Managers to the Fund, "The Money Managers" Section on page 16 of the Prospectus
is amended by inserting the following disclosure:
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SCOTTISH WIDOWS INVESTMENT MANAGEMENT LIMITED
Scottish Widows Investment Management Limited ("Scottish Widows") acts as a
Money Manager for a portion of the assets of the International Equity Fund.
Scottish Widows is a wholly-owned subsidiary of the Scottish Widows Group, a
mutual insurance company founded in 1815 and based in Edinburgh, Scotland.
Scottish Widows was established to provide fund management across a board client
base which includes both individual and institutional accounts. Scottish Widows
employs a concentrated growth investment process and specializes in the European
market. Scottish Widows is a registered investment adviser that managed
approximately $43 billion among 67 accounts as of December 31, 1997. The
principal business address of Scottish Widows is P.O. Box 17036, 69 Morrison
Street, Edinburgh EH3 8YF, Scotland.
Albert Morillo, a Director of Scottish Widows, is primarily responsible for the
day-to-day management and investment decisions made with respect to the assets
of Scottish Widows' portion of the Fund. Mr. Morillo joined Scottish Widows as a
UK analyst in 1985, and became the head of the European Team in 1991. Mr.
Morillo sits on the Investment Policy Committee and has asset allocation
responsibilities for the firm's global equity accounts. Mr. Morillo has been a
member of the European Team since 1986.
The Adviser will pay Scottish Widows a fee based on a percentage of the average
monthly market value of the Fund's assets assigned to Scottish Widows.
Listed below are the names and principal occupations of the principal executive
officer and each of the directors of Scottish Widows. The principal business
address of the principal executive officer and each of the directors as it
relates to their positions at Scottish Widows is P.O. Box 17036, 69 Morrison
Street, Edinburgh EH3 8YF, Scotland.
<TABLE>
<CAPTION>
NAME TITLE
- ------------------------- --------------------------
<S> <C>
Orie L. Dudley, Jr. Chief Executive Officer
W. Leslie Robb Managing Director
Albert B. Morillo Director
Allan M. McKenzie Director
William Main Director
Michael D. Ross Director
Alexander Porte Director
Kenneth A. Anderson Investment Director
John L. Griffith, Jr. Investment Director
Fiona I.A. MacRae Investment Director
David Stanistreet Investment Director
Franciose Watson Investment Manager
Mark Webster Portfolio Manager
</TABLE>
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SG YAMAICHI ASSET MANAGEMENT CO., LTD.
SG Yamaichi Asset Management Co., Ltd. ("SG Yamaichi") serves as a Money Manager
for a portion of the assets of the International Equity Fund. SG Yamaichi was
established in 1971 as a global asset management firm. SG Pacific Asset
Management, Inc. and SGY Asset Management (Singapore) Ltd., additional Money
Managers to the Funds, are wholly-owned subsidiaries of SG Yamaichi. SG Yamaichi
specializes in Japan and Pacific Basin equity management with both active and
quantitative strategies. SG Yamaichi and its affiliates currently manage over
$20 billion in assets worldwide. The principal address of SG Yamaichi is 5-1,
Nihombashi Kabutocho, Chuo-ku, Tokyo 103, Japan.
Mr. Marco Wong leads the management team for the assets of the International
Equity Fund allocated to SG Yamaichi. Mr. Wong has been with SG Yamaichi since
1986. Mr. Hiroyoshi Nakagawa oversees the Japan investment team in Tokyo, and
also serves as a portfolio manager for the International Equity Fund. Mr.
Nakagawa joined SG Yamaichi in 1977.
The Adviser will pay SG Yamaichi a fee based on a percentage of the average
monthly market value of the Fund's assets assigned to SG Yamaichi.
<PAGE>
Listed below are the names and principal occupations of the principal executive
officer and each of the directors of SG Yamaichi. The principal business address
of the principal executive officer and each of the directors as it relates to
their positions at SG Yamaichi is 5-1, Nihombashi Kabutocho, Chuo-ku, Tokyo 103,
Japan.
<TABLE>
<CAPTION>
NAME TITLE
- ----------------------- -----------------------------
<S> <C>
Masatada Hommura President
Hiroo Takaishi Executive Vice President
Katsumi Deguchi Executive Vice President
Michel Fromaget Executive Vice President
Yoshio Okiyama Senior Managing Director
Masami Fukuoka Managing Director
Naoshi Saito Managing Director
Shigeharu Shiraishi Managing Director
Tatsuo Nakajima Managing Director
Toshihisa Takahashi Director
Kunihiko Iwase Director
Teijiro Yamada Director
Yoichi Kataoka Director
Christian d'Allest Director
Kazuo Ohnuma Auditor
Mamoru Saito Compliance Officer
</TABLE>
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At the same meeting, the Board of Trustees of the Trust, including all of the
Trustees who are not "interested persons" of the Trust, appointed Robertson,
Stephens Investment Management, L.P. ("Robertson"), as a Money Manager to the
Trust's Small Cap Fund (the "Fund"). Robertson's appointment does not require
Shareholder approval. At the same Meeting, the Trustees terminated First of
America Investment Corporation as a Money Manager to the Fund, effective on
March 24, 1998.
In evaluating Robertson, the Trustees received written and oral information from
both SIMC and Robertson. SIMC recommended the selection of Robertson and
reviewed the considerations and the search process that led to its
recommendation. The Trustees also met with representatives of Robertson and
considered information about portfolio managers, investment philosophy,
strategies and process, as well as its performance track record, among other
factors. In appointing Robertson, the Trustees carefully evaluated: (1) the
nature and quality of the services expected to be rendered to the Fund by
Robertson; (2) the distinct investment objective and policies of the Fund; (3)
the history, reputation, qualification and background of Robertson's personnel
and its financial condition; (4) its performance track record; and (5) other
factors deemed relevant. The Trustees also reviewed the fees to be paid to
Robertson, including any benefits to be received by Robertson or its affiliates
in connection with soft dollar arrangements.
Under the Investment Sub-Advisory Agreement (the "Sub-Advisory Agreement")
between SIMC (the "Adviser") and Robertson relating to the Fund, Robertson makes
investment decisions for the assets of the Fund allocated to it by SIMC,
continuously reviews, supervises and administers the Fund's investment program
with respect to these assets. Robertson is independent of SIMC and discharges
its responsibility subject to the supervision of SIMC and the Trustees of the
Trust and in a manner consistent with the 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
March 2000 (unless earlier terminated), and will have to be approved annually
thereafter by a majority of the Trustees, including a majority of the Trustees
who are not "interested persons" of the Trust (as defined in the Investment
Company Act of 1940).
In connection with the appointment of Robertson as Money Manager to the Fund,
"The Money Managers" Section on page 16 of the Prospectus is amended by
inserting the following disclosure:
<PAGE>
ROBERTSON, STEPHENS INVESTMENT MANAGEMENT, L.P.
Robertson, Stephens Investment Management, L.P. ("Robertson"), acts as a Money
Manager for a portion of the assets of the Small Cap Growth Fund. Robertson is a
wholly-owned subsidiary of BankAmerica. Robertson is a registered investment
adviser that currently has approximately $5.0 billion of assets under
management, $240 million of which is in the small cap product. The principal
business address of Robertson is 555 California Street, Suite 2600, San
Francisco, California 94104.
Jim Callinan, a managing director of Robertson, is primarily responsible for the
day-to-day management and investment decisions made with respect to the assets
of the Portfolio. He joined Robertson in June 1996 after nine years at Putnam
Investments ("Putnam") in Boston, where he served as a portfolio manager of the
Putnam OTC Emerging Growth Fund. Mr. Callinan also served as a specialty growth
research analyst and portfolio manager of both the Putnam Emerging Information
Science Trust Fund and the Putnam Emerging Health Sciences Trust Fund while at
Putnam.
The Adviser will pay Robertson a fee based on a percentage of the average
monthly market value of the Fund's assets assigned to Robertson.
Listed below are the names and principal occupations of the principal executive
officer and each of the directors of Robertson. The principal business address
of the principal executive officer and each of the directors as it relates to
their positions at Robertson is 555 California Street, Suite 2600, San
Francisco, California 94104.
<TABLE>
<CAPTION>
NAME TITLE
- --------------------- -----------------------------------
<S> <C>
G. Randy Hecht President and Executive Officer
Jim Callinan Managing Director
Roderick R. Berry Vice President
Robert Zidar Vice President
Cathy Baker Analyst
Susan Richardson Analyst
Steve Bishop Analyst
</TABLE>
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SG Pacific Asset Management, Inc. (formerly, Yamaichi Capital Management, Inc.)
("SG Pacific") and SGY Asset Management (Singapore) Ltd. (formerly, Yamaichi
Capital Management (Singapore) Limited) ("SGY") currently jointly serve as Money
Manager for a portion of the assets of the International Equity and Emerging
Markets Equity Funds. Effective January 28, 1998, Societe Generale Asset
Management (North Pacific), acquired 85% of the shares of SG Yamaichi Asset
Management Co., Ltd. (formerly, Yamaichi International Capital Management Co.,
Ltd.), the parent of SG Pacific and SGY. In addition, on February 26, 1998, 5%
of SG Yamaichi Asset Management's shares were acquired by Himawari Investment
Advisory Co., Ltd. The remaining 10% of the shares continue to be held by
Yamaichi Investment Trust Management, Co., Ltd. There have been no changes to
the portfolio managers for the Funds as a result of these transactions. The
prospectus is hereby amended to reflect these changes.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE.
