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SEI INSTITUTIONAL INVESTMENTS TRUST
SMALL CAP FUND
SUPPLEMENT DATED DECEMBER 15, 1999 TO THE
PROSPECTUS DATED SEPTEMBER 30, 1999
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,
have appointed Mazama Capital Management, LLC ("Mazama"), as a Sub-Adviser to
the Trust's Small Cap Fund (the "Fund"). Mazama was approved as a Sub-Adviser at
the Quarterly Meeting of the Board of Trustees held on December 13-14, 1999, and
its appointment does not require Shareholder approval. This procedure for adding
or replacing Sub-Advisers 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 Mazama, the Trustees received written and oral information from
SEI Investments Management Corporation ("SIMC") and Mazama. SIMC recommended the
selection of Mazama and reviewed the considerations and the search process that
led to its recommendation. The Trustees also met with representatives of Mazama
and considered information about portfolio managers, investment philosophy,
strategies and process, as well as its performance track record, among other
factors. In appointing Mazama, the Trustees carefully evaluated: (1) the nature
and quality of the services expected to be rendered to the Fund by Mazama; (2)
the distinct investment process of Mazama; (3) the history, reputation,
qualification and background of Mazama's personnel and its financial condition;
(4) its performance record; and (5) other factors deemed relevant. The Trustees
also reviewed the fees to be paid to Mazama, including any benefits to be
received by Mazama or its affiliates in connection with soft dollar
arrangements.
Under the Investment Sub-Advisory Agreement ("Sub-Advisory Agreement") between
SIMC (the "Adviser") and Mazama relating to the Fund, Mazama makes investment
decisions for the assets of the Fund allocated to Mazama by SIMC, and
continuously reviews, supervises and administers the Fund's investment program
with respect to these assets. Mazama is independent of SIMC and discharges its
responsibilities subject to the supervision of SIMC and the Trustees of the
Trust and in a manner consistent with the Fund's investment objectives, policies
and limitations. The Sub-Advisory Agreement is substantially similar to those in
existence between the Adviser and the Trust's other sub-advisers. Specifically,
the duties to be performed under such agreement and the standard of care and
termination provisions of the Agreement are similar to the other agreements. The
Sub-Advisory Agreement will remain in effect until December 2001 (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).
In connection with the appointment of Mazama as Sub-Adviser to the Fund, the
"Sub-Advisers" Section on page 24 of the Prospectus is amended by inserting the
following disclosure relating to Mazama under the heading "Small Cap Fund":
MAZAMA CAPITAL MANAGEMENT, LLC
Mazama Capital Management, LLC ("Mazama"), acts as a Sub-Adviser for a
portion of the assets of the Small Cap Fund. Mazama is a limited liability
company that is registered as an investment adviser. Mazama currently has
approximately $121 million in assets under management. The principal business
address of Mazama is One Southwest Columbia, Suite 1860, Portland, Oregon 97258.
Ronald A. Sauer, a founder, President and Senior Portfolio Manager of Mazama,
and Stephen C. Brink, CFA, Vice President, Director of Research and Portfolio
Manager at Mazama, serve as Portfolio Managers of the portion of the Fund's
assets managed by Mazama. Prior to founding Mazama in October 1997, Mr. Sauer
was President and Director of Research at Black & Company Asset Management. Mr.
Sauer has over 19 years of investment experience. Prior to joining Mazama in
1997, Mr. Brink was Chief Investment Officer at US Trust's Pacific Northwest
office. Mr. Brink has over 22 years of investment experience.
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Listed below are the names and principal occupations of the principal executive
officer and each of the members of Mazama. The principal business address of the
principal executive officer and each of the members, as it relates to their
position at Mazama, is One Southwest Columbia, Suite 1860, Portland, Oregon
97258.
<TABLE>
<S> <C>
NAME TITLE
Ronald A. Sauer President and Senior Portfolio Manager
Helen Degener Chief Investment Officer
Stephen C. Brink, CFA Vice President, Director of Research, and
Portfolio Manager
Gretchen Schroeder Assistant Vice President and Analyst
Claudette deBruin Assistant Vice President, Trader and
Research Associate
Jill Collins Vice President, Marketing & Client Service
Brian Alfrey Vice President, Administration, Operations
& Compliance
</TABLE>
The Adviser will pay Mazama a fee based on a percentage of the average monthly
market value of the assets of the Fund assigned to Mazama.
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At the same Meeting, the Trustees determined to terminate Furman Selz Capital
Management, LLC, ("Furman Selz"), one of the Small Cap Fund's current
Sub-Advisers. In determining to terminate Furman Selz, the Trustees reviewed
information provided by SIMC relating to Furman Selz's ability to successfully
execute their investment process, depth and quality of fundamental research, and
investment performance.
At the same Meeting, the Trustees further determined to terminate Polynous Asset
Management, ("Polynous"), one of the Small Cap Fund's current Sub-Advisers. In
determining to terminate Polynous, the Trustees reviewed information provided by
SIMC relating to Polynous' investment performance, personnel turnover, and
financial condition.
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The prospectus is hereby amended to reflect these changes.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
