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SEI INSTITUTIONAL INVESTMENTS TRUST
SMALL CAP FUND
LARGE CAP FUND
LARGE CAP GROWTH FUND
SUPPLEMENT DATED DECEMBER 12, 2000 TO THE
PROSPECTUS DATED SEPTEMBER 30, 2000
THIS SUPPLEMENT PROVIDES NEW AND ADDITIONAL INFORMATION BEYOND THAT CONTAINED IN
THE PROSPECTUS, AND SHOULD BE READ IN CONJUNCTION WITH SUCH PROSPECTUS.
SMALL CAP FUND
The Board of Trustees of SEI Institutional Investments Trust (the "Trust"),
including all of the Trustees who are not "interested persons" (as defined in
the Investment Company Act of 1940) of the Trust, have appointed Sterling
Capital Management ("Sterling"), as an additional Sub-Adviser to the Trust's
Small Cap Fund. Sterling was approved as a Sub-Adviser at the Quarterly Meeting
of the Board of Trustees held on December 11, 2000 ("Quarterly Meeting"), 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 Sterling, the Trustees received written and oral information from
both SEI Investments Management Corporation ("SIMC") and Sterling. SIMC
recommended the selection of Sterling and reviewed the considerations and the
search process that led to its recommendation. The Trustees also met with
representatives of Sterling and considered information about portfolio managers,
investment philosophy, strategies and process, as well as other factors. In
appointing Sterling, the Trustees carefully evaluated: (1) the nature and
quality of the services expected to be rendered to the Small Cap Fund by
Sterling; (2) the distinct investment objective and policies of the Small Cap
Fund; (3) the history, reputation, qualification and background of Sterling'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 Sterling, including any benefits to be received by Sterling or its
affiliates in connection with soft dollar arrangements.
Under the Investment Sub-Advisory Agreement between SIMC and Sterling relating
to the Small Cap Fund, Sterling makes investment decisions for the assets of the
Small Cap Fund allocated to it by SIMC, and continuously reviews, supervises and
administers the Small Cap Fund's investment program with respect to these
assets. Sterling 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 Small Cap Fund's investment objective, policies and
limitations. The Sub-Advisory Agreement is substantially similar to those in
existence between SIMC and the Trust's other Sub-Advisers. Specifically, the
duties to be performed, 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, 2002 (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 Sterling as Sub-Adviser to the Small Cap
Fund, the "Sub-Advisers" Section on page 23 of the Prospectus is amended by
inserting the following paragraph relating to Sterling:
STERLING CAPITAL MANAGEMENT: Eduardo A. Brea, CFA, and Brian R. Walton, CFA,
serve as portfolio managers for a portion of the assets of the Small Cap Fund.
Mr. Brea and Mr. Walton both joined Sterling in 1995, and each is a Principal
and Equity Portfolio Manager and Analyst. Mr. Brea and Mr. Walton each have over
10 years of investment experience.
Sterling was founded in 1970 and is a subsidiary of United Asset Management, a
wholly-owned subsidiary of Old Mutual, PLC. In January 2001, Sterling plans to
repurchase its equity from UAM. As of November 27, 2000, Sterling had
approximately $3.25 billion in assets under management.
<PAGE>
Listed below are the names and principal occupations of the principals and
principal executive officers of Sterling. The address of Sterling and the
principal business address of such individuals as it relates to their respective
positions at Sterling, is One First Union Center, 301 College Street,
Suite 3200, Charlotte, North Carolina 28202-6005.
<TABLE>
<CAPTION>
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NAME TITLE
<S> <C>
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Principal and President/ Chief
Mark W. Whalen Executive Officer
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Principal and Chief Investment
David M. Ralston Officer
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Principal and Equity Portfolio
Eduardo A. Brea, CFA Manager/ Analyst
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Principal and Equity Portfolio
Brian R. Walton, CFA Manager/ Analyst
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Alexander W. McAlister Principal/ New Business Development
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</TABLE>
SIMC will pay Sterling a fee based on a percentage of the average monthly market
value of the assets of the Small Cap Fund assigned to Sterling.
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At the Quarterly Meeting, the Board of Trustees of the Trust, including all of
the Trustees who are not "interested persons" of the Trust, voted to terminate
Mellon Equity Associates, LLP ("Mellon Equity") as a Sub-Adviser to the Small
Cap Fund. The Board determined to terminate Mellon Equity based on lowered
performance expectations and poor execution of the quantitative investment
process which had led to performance below expectations. This termination does
not require shareholder approval.
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LARGE CAP AND LARGE CAP GROWTH FUNDS
At the Quarterly Meeting, the Trustees appointed Duncan-Hurst Capital
Management Inc. ("Duncan-Hurst") as an additional Sub-Adviser to the Trust's
Large Cap and Large Cap Growth Funds Duncan-Hurst's appointment does not require
shareholder approval.
In evaluating Duncan-Hurst, the Trustees received written and oral information
from both SEI Investments Management Corporation ("SIMC") and Duncan-Hurst. SIMC
recommended the selection of Duncan-Hurst and reviewed the considerations and
the search process that led to its recommendation. The Trustees also met with
representatives of Duncan-Hurst and considered information about portfolio
managers, investment philosophy, strategies and process, as well as other
factors. In appointing Duncan-Hurst, the Trustees carefully evaluated: (1) the
nature and quality of the services expected to be rendered to the Large Cap and
Large Cap Growth Funds by Duncan-Hurst; (2) the distinct investment objective
and policies of the Large Cap and Large Cap Growth Funds; (3) the history,
reputation, qualification and background of Duncan-Hurst'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 Duncan-Hurst,
including any benefits to be received by Duncan-Hurst or its affiliates in
connection with soft dollar arrangements.
Under the Investment Sub-Advisory Agreement between SIMC and Duncan-Hurst
relating to the Large Cap and Large Cap Growth Funds, Duncan-Hurst makes
investment decisions for the assets of the Large Cap and Large Cap Growth Funds
allocated to it by SIMC, and continuously reviews, supervises and administers
the Large Cap and Large Cap Growth Funds' investment program with respect to
these assets. Duncan-Hurst 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 Large Cap and Large Cap Growth Funds'
investment objective, policies and limitations. The Sub-Advisory Agreement is
substantially similar to those in existence between SIMC and the Trust's other
Sub-Advisers. Specifically, the duties to be performed, 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, 2002 (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 Duncan-Hurst as Sub-Adviser to the Large
Cap and Large Cap Growth Funds, the "Sub-Advisers" Section on page 23 of the
Prospectus is amended by inserting the following paragraph relating to
Duncan-Hurst:
DUNCAN-HURST CAPITAL MANAGEMENT INC.: David Magee serves as portfolio manager
for a portion of the assets of the Large Cap and Large Cap Growth Funds.
Mr. Magee joined Duncan-Hurst in 1992 and is Vice President and Portfolio
Manager. He has over 10 years of investment experience.
Duncan-Hurst was founded in 1990 and is wholly-owned by active employees. As of
November 30, 2000, Duncan-Hurst had $4.6 billion in assets under management.
<PAGE>
Listed below are the names and principal occupations of the principal executive
officers of Duncan-Hurst. The address of Duncan-Hurst and the principal business
address of the principal executive officer and each of the directors, as it
relates to their position at Duncan-Hurst, is 4365 Executive Drive, Suite 1520,
San Diego, California 92121.
<TABLE>
<CAPTION>
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NAME TITLE
<S> <C>
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Chairman, Chief Executive Officer
William H. Duncan, Jr. and Chief Investment Officer
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Frank P. Hurst President
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</TABLE>
SIMC will pay Duncan-Hurst a fee based on a percentage of the average monthly
market value of the assets of the Large Cap and Large Cap Growth Funds assigned
to Duncan-Hurst.
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At the Quarterly Meeting, the Trustees appointed Peregrine Capital Management
Inc. ("Peregrine") as an additional Sub-Adviser to the Trust's Large Cap and
Large Cap Growth Funds Peregrine's appointment does not require shareholder
approval.
In evaluating Peregrine, the Trustees received written and oral information from
both SEI Investments Management Corporation ("SIMC") and Peregrine. SIMC
recommended the selection of Peregrine and reviewed the considerations and the
search process that led to its recommendation. The Trustees also met with
representatives of Peregrine and considered information about portfolio
managers, investment philosophy, strategies and process, as well as other
factors. In appointing Peregrine, the Trustees carefully evaluated: (1) the
nature and quality of the services expected to be rendered to the Large Cap and
Large Cap Growth Funds by Peregrine; (2) the distinct investment objective and
policies of the Large Cap and Large Cap Growth Funds; (3) the history,
reputation, qualification and background of Peregrine'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 Peregrine, including
any benefits to be received by Peregrine or its affiliates in connection with
soft dollar arrangements.
Under the Investment Sub-Advisory Agreement between SIMC and Peregrine relating
to the Large Cap and Large Cap Growth Funds, Peregrine makes investment
decisions for the assets of the Large Cap and Large Cap Growth Funds allocated
to it by SIMC, and continuously reviews, supervises and administers the Large
Cap and Large Cap Growth Funds' investment program with respect to these assets.
Peregrine 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 Large Cap and Large Cap Growth Funds' investment objective,
policies and limitations. The Sub-Advisory Agreement is substantially similar to
those in existence between SIMC and the Trust's other Sub-Advisers.
Specifically, the duties to be performed, 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, 2002 (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 Peregrine as Sub-Adviser to the Large Cap
and Large Cap Growth Funds, the "Sub-Advisers" Section on page 23 of the
Prospectus is amended by inserting the following paragraph relating to
Peregrine:
PEREGRINE CAPITAL MANAGEMENT INC.: John Dale, Senior Vice President and
Portfolio Manager, and Gary Nussbaum, Senior Vice President and Portfolio
Manager serve as portfolio managers for a portion of the assets of the Large Cap
and Large Cap Growth Funds. Mr. Dale joined Peregrine in 1987, and has 32 years
of investment management experience. Mr. Nussbaum joined Peregrine in 1990, and
has 12 years of investment management experience.
Peregrine was founded in 1984 and is a wholly-owned subsidiary of Wells Fargo
Bank Minnesota, N.A. As of September 30, 2000, Peregrine had approximately $9.3
billion in assets under management.
<PAGE>
Listed below are the names and principal occupations of the principal executive
officers of Peregrine. The address of Peregrine and the principal business
address of the principal executive officers, as it relates to their position at
Peregrine, is 800 LaSalle Avenue, Suite 1850, Minneapolis, Minnesota 55402.
<TABLE>
<CAPTION>
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NAME TITLE
<S> <C>
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James Robert Campbell Director
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Chairman of the Board, Chief
Robert Bruce Mersky Executive Officer and President
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Chief Operating Officer, Chief
Compliance Officer, Chief Financial
Ronald George Hoffman Officer, and Senior Vice President
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William Daniel Giese Senior Vice President
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Paul Edward von Kuster Senior Vice President
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Patricia D. Burns Senior Vice President
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Paul R. Wurm Senior Vice President
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John S. Dale Senior Vice President
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Jeannine McCormick Senior Vice President
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Barbara Kloepfer Senior Vice President
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Gary E. Nussbaum Senior Vice President
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Tasso Harry Coin Senior Vice President
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Julie M. Gerend Senior Vice President
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Daniel J. Hagen Senior Vice President
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Jay H. Strohmaier Senior Vice President
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Douglas G. Pugh Senior Vice President
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</TABLE>
SIMC will pay Peregrine a fee based on a percentage of the average monthly
market value of the assets of the Large Cap and Large Cap Growth Funds assigned
to Peregrine.
--------------------------
At the Quarterly Meeting, the Board of Trustees of the Trust, including all of
the Trustees who are not "interested persons" of the Trust, voted to terminate
TCW Investment Management Company ("TCW") as a Sub-Adviser to the Large Cap and
Large Cap Growth Funds. The Board determined to terminate TCW based on TCW's
reduced capacity available to the Large Cap and Large Cap Growth Funds and a
change in TCW's business plan as originally conveyed to the Trust. This
termination does not require shareholder approval.
--------------------------
The prospectus is hereby amended to reflect these changes.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
