UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM N-CSR
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CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
INVESTMENT COMPANY ACT FILE NUMBER 811-5601
SEI Institutional International Trust
(Exact name of registrant as specified in charter)
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c/o CT Corporation
101 Federal Street
Boston, MA 02110
(Address of principal executive offices) (Zip code)
SEI Investments
One Freedom Valley Drive
Oaks, PA 19456
(Name and address of agent for service)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: 1-800-342-5734
DATE OF FISCAL YEAR END: SEPTEMBER 30, 2004
DATE OF REPORTING PERIOD: SEPTEMBER 30, 2004
ITEM 1. REPORTS TO STOCKHOLDERS.
[BACKGROUND GRAPHIC OMITTED]
SEI INVESTMENTS
Annual Report as of September 30, 2004
SEI INSTITUTIONAL INTERNATIONAL TRUST
International Equity Fund
Emerging Markets Equity Fund
International Fixed Income Fund
Emerging Markets Debt Fund
TABLE OF CONTENTS
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Management's Discussion and Analysis of Fund Performance 1
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Schedules of Investments 8
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Statements of Assets and Liabilities 29
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Statements of Operations 30
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Statements of Changes in Net Assets 31
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Financial Highlights 33
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Notes to Financial Statements 34
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Report of Independent Registered Public Accounting Firm 42
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Trustees and Officers of the Trust 43
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Disclosure of Fund Expenses 46
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Notice to Shareholders 47
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Beginning on the fiscal quarter ended December 31, 2004, the Trust will file its
complete schedule of portfolio holdings with the Securities and Exchange
Commission for the first and third quarters of each fiscal year on Form N-Q
within sixty days after the end of the period. The Trust's Forms N-Q will be
available on the Commission's website at http://www.sec.gov, and may be reviewed
and copied at the Commission's Public Reference Room in Washington, DC.
Information on the operation of the Public Reference Room may be obtained by
calling 1-800-SEC-0330.
A description of the policies and procedures that the Trust uses to determine
how to vote proxies relating to portfolio securities, as well as information
relating to how a Fund voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30, is available (i) without charge, upon
request, by calling 1-800-DIAL-SEI; and (ii) on the Commission's website at
http://www.sec.gov.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FUND PERFORMANCE
SEI INSTITUTIONAL INTERNATIONAL TRUST -- SEPTEMBER 30, 2004
INTERNATIONAL EQUITY FUND
OBJECTIVE
The International Equity Fund (the "Fund") seeks to provide long-term capital
appreciation by investing primarily in a diversified portfolio of equity
securities of foreign issuers.
STRATEGY
The Fund invests primarily in common stocks and other equity securities of
foreign companies. The Fund primarily invests in companies located in developed
countries, but may also invest in companies located in emerging markets. The
Fund uses a multi-manager approach, relying upon a number of sub-advisers with
differing investment philosophies to manage portions of the Fund's portfolio
under the general supervision of SEI Investments Management Corporation
("SIMC"). The Fund is diversified as to issuers, market capitalization, industry
and country.
ANALYSIS
International equity stocks realized modest gains during the year ended
September 30, 2004. Overall, the non-U.S. developed equity markets, as measured
by the Morgan Stanley MSCI EAFE Index, gained 22.08% in U.S. dollar terms during
the period. Every international equity market, as well as each sector, posted
positive returns. The Energy sector was the strongest performer as the rising
price of oil and other key commodities boosted equity prices within the sector.
The more speculative Information Technology sector, however, lagged the most
during the course of the year as investors remained cautious about the prospects
of a continued global economic recovery accompanied by an increase in tech
spending.
The International Equity Fund, Class A tracked the Morgan Stanley MSCI EAFE
Index closely during the period, advancing 20.74%. Strong stock selection within
both the Information Technology and Telecommunication sectors led to the
positive relative performance while positioning (overweights) to those
respective sectors detracted from performance. On a country basis, strong stock
selection was seen within the UK market, which was offset by poor asset
selection in Japan over the past year. Non-benchmark names, many found via
opportunistic investing in large emerging market securities, were positive
contributors during this time. There were no additional manager changes made in
the past year after the several that took effect in the summer of 2003.
INTERNATIONAL EQUITY FUND
AVERAGE ANNUAL TOTAL RETURN (1)
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Annualized Annualized Annualized Annualized
One Year 3 Year 5 Year 10 Year Inception to
Return Return Return Return Date
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Class A 20.74% 6.53% -2.73% 3.32% 3.45%
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Class I 20.54% n/a n/a n/a 3.71%
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*Actual, not synthetic
Comparison of Change in the Value of a $100,000 Investment in the International
Equity Fund, Class A, versus the Morgan Stanley MSCI EAFE Index
[LINE GRAPH OMITTED -- PLOT POINTS FOLLOW:]
SEI International Morgan Stanley
Equity Fund, MSCI EAFE
Class A Index
9/94 $100,000 $100,000
9/95 104,240 105,800
9/96 114,508 114,920
9/97 126,600 128,929
9/98 115,522 118,176
9/99 159,259 154,752
9/00 165,868 159,673
9/01 114,698 114,118
9/02 96,587 96,396
9/03 114,852 121,468
9/04 138,672 148,288
1 For the period ended September 30, 2004. Past performance is no indication of
future performance. Class I Shares were offered beginning on January 4, 2002.
Class A Shares were offered beginning December 30, 1989. Returns shown do not
reflect the deduction of taxes that a shareholder would pay on fund
distributions or the redemption of fund shares. The returns for certain
periods reflect fee waivers and/or reimbursements in effect for that period;
absent fee waivers and reimbursements, performance would have been lower.
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SEI Institutional International Trust / Annual Report / September 30, 2004 1
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FUND PERFORMANCE
SEI INSTITUTIONAL INTERNATIONAL TRUST -- SEPTEMBER 30, 2004
EMERGING MARKETS EQUITY FUND
OBJECTIVE
The Emerging Markets Equity Fund (the "Fund") seeks to provide capital
appreciation by investing primarily in a diversified portfolio of equity
securities of emerging market issuers.
STRATEGY
The Fund invests primarily in common stocks and other equity securities of
foreign companies located in emerging market countries. The Fund uses a
multi-manager approach, relying upon a number of sub-advisers with differing
investment philosophies to manage portions of the Fund's portfolio under the
general supervision of SEI Investments Management Corporation ("SIMC"). The Fund
is diversified as to issuers, market capitalization, industry and country.
ANALYSIS
Strong returns within emerging markets continued, as the asset class returned
26.13% for the year ended September 30, 2004 as measured by the Morgan Stanley
MSCI Emerging Markets Free Index. Returns for the period could have been higher,
as there were several events during the period that prevented the markets from
rallying even higher. China's government began taking steps to cool an
overheating economy, while a surprise upset in the general elections of India
led to fears that privatization and reform programs would be on hold. At the
global macro level, rising interest rates and the potential inflationary
pressures of oil prices in excess of $40 per barrel weighed on country returns.
Lastly, the seizure of Yukos assets by the Russian government increased
investors' risk aversion in the markets. Despite all of this news, all but a
handful of emerging markets countries and sectors delivered double digit
returns. Energy and Materials were the best performing sectors, buoyed by
strength in oil prices and demand from China, respectively. Technology, on the
other hand, was the worst performing sector. Despite strong earnings reports
from tech giants Samsung Electronics and Taiwan Semiconductor, technology
hardware stocks in emerging markets got caught in a slide following warnings
from several global tech leaders on accumulating inventories. On a country
basis, the tiny markets of Columbia and Egypt more than doubled during the
period, while the Eastern European nations of Hungary, Czech Republic and Turkey
continued their strong performance on the positive sentiment from their
accession into the EU. Tech-heavy Taiwan was the worst performing market for the
period, barely generating a positive return for the period.
The Fund lagged the benchmark during the period, returning 23.61% versus 26.13%
for the Morgan Stanley MSCI Emerging Markets Free Index. Positioning within
Telecommunications names was the biggest contributor to relative performance
during the period. Holding stocks such as Bharti Televentures (India) and Mobile
Telesystems (Russia), which are benefiting from high rates of subscriber growth
in their domestic markets, added to relative performance. On the other hand,
underweights to Lukoil and Surgutneftegaz in favor of Yukos in Russia detracted
from performance. Despite their awareness of the cyclically driven rally, our
managers remained underweight to the materials sector, particularly within South
Africa, and were able to generate positive stock selection through positioning
in the more fundamentally attractive financials within that market. Continuing
with country-level themes, stock selection within India and Russia, particularly
in Telecommunications stocks, was a positive contributor to relative
performance. These gains were offset by positioning in tech-heavy Taiwan.
During the period, the Fund completed its structural change by moving from a
combination of global managers and regional specialists to one which utilizes
only global emerging markets managers. As a result, Lloyd George Management is
no longer managing assets within the strategy and Citigroup Asset Management,
Ltd. was added as a sub-adviser.
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2 SEI Institutional International Trust / Annual Report / September 30, 2004
EMERGING MARKETS EQUITY FUND
AVERAGE ANNUAL TOTAL RETURN (1)
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Annualized Annualized Annualized
One Year 3 Year 5 Year Inception
Return Return Return to Date
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Class A 23.61% 22.45% 4.12% 1.27%
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[LINE GRAPH OMITTED -- PLOT POINTS FOLLOW:]
Emerging Markets Morgan Stanley MSCI
Equity Fund, Emerging Markets IFC Investible
Class A Free Index Composite Index
1/95 $100,000 $100,000 $100,000
9/95 106,507 107,547 106,691
9/96 114,644 113,150 115,920
9/97 126,625 120,572 122,110
9/98 61,502 62,927 65,109
9/99 91,164 98,493 102,208
9/00 91,811 98,897 101,687
9/01 60,742 66,103 69,421
9/02 65,468 71,358 78,266
9/03 90,234 103,883 114,636
9/04 111,539 131,027 146,780
1 For the period ended September 30, 2004. Past performance is no indication of
future performance. Class A Shares were offered beginning January 17, 1995.
Returns shown do not reflect the deduction of taxes that a shareholder would
pay on fund distributions or the redemption of fund shares. The returns for
certain periods reflect fee waivers and/or reimbursements in effect for that
period; absent fee waivers and reimbursements, performance would have been
lower.
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SEI Institutional International Trust / Annual Report / September 30, 2004 3
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FUND PERFORMANCE
SEI INSTITUTIONAL INTERNATIONAL TRUST -- SEPTEMBER 30, 2004
INTERNATIONAL FIXED INCOME FUND
OBJECTIVE
The International Fixed Income Fund (the "Fund") seeks to provide capital
appreciation and current income through investments in fixed income securities
of non-U.S.-dollar-denominated issues. The Fund also seeks to provide U.S.-based
investors with a vehicle to diversify and enhance the returns of the domestic
fixed income portion of their Funds. The Fund invests primarily in
investment-grade, non-U.S.-dollar-denominated obligations. Although there are no
restrictions on the Fund's overall duration, under normal conditions it is
expected to range between four and six years.
STRATEGY
The Fund is managed against a broad aggregate index including sovereign,
mortgage and corporate securities. The Fund is diversified through its issuers,
market capitalization, and industry and country positionings.
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 intends to be diversified across six to 12
countries, across 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
The International fixed income market, as measured by the Lehman Global
Aggregate ex-U.S. Index, returned 8.61% over the period, with the return being
assisted by a weaker U.S. dollar. The period was a difficult time for global
bond yields as greater confidence in global economic growth and improving equity
markets led to higher bond yields. The U.S. yield curve, which had been trading
extremely steeply, began to flatten as the Federal Reserve moved from a
rate-cutting to a rate-increasing bias, eventually increasing the Fed Funds rate
on three occasions from 1% to 1.75% over the period. European bond yields bucked
the trend, with the 10 year bond rate unchanged over the period. The European
Central Bank remained on hold for the year as growth in continental Europe
continued to be sluggish and unemployment remained stubbornly high in both
France and Germany. The Stability and Growth Pact was consigned to history as
the threatened fines for exceeding debt/Great British Pound limits failed to
materialize. The Japanese economy began to show signs of recovery and yields
rose marginally over the year. The UK government bond market underperformed as
the Bank of England raised rates five times over the year in response to solid
economic growth driven by consumer spending. Investors' appetite for risk was
unsatiated throughout the year - higher-risk sectors generally outperformed
lower risk sectors. The resurgent concerns about global inflation raised
investors' concern regarding purchasing power, and thus inflation-protected
securities performed well.
The Fund had a challenging year, marginally underperforming its index with a
return of 7.43%. Currency positioning was a mixed contributor to performance
over the year. While the U.S. dollar generally weakened over the period,
intervention from Japanese authorities often went against the positioning of the
manager. The Fund was generally short duration in anticipation of an increasing
interest rate environment and expected positive economic news.
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4 SEI Institutional International Trust / Annual Report / September 30, 2004
INTERNATIONAL FIXED INCOME FUND
AVERAGE ANNUAL TOTAL RETURN (1)
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Annualized Annualized Annualized Annualized
One Year 3 Year 5 Year 10 Year Inception to
Return Return Return Return Date
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Class A 7.43% 10.98% 4.98% 5.91% 5.85%
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Comparison of Change in the Value of a $100,000 Investment in the SEI
International Fixed Income Fund, versus the Lehman Global Aggregate ex-U.S.
Index
[LINE GRAPH OMITTED -- PLOT POINTS FOLLOW:]
International Fixed Income Fund - $177,558
Lehman Global Aggregate ex-U.S.Index - $185,963
International Lehman Global
Fixed Income Aggregate
Fund ex-U.S. Index
9/94 $100,000 $100,000
9/95 119,860 118,380
9/96 124,091 126,560
9/97 125,531 126,130
9/98 141,184 142,955
9/99 139,264 139,224
9/00 125,923 125,733
9/01 129,902 130,801
9/02 141,203 144,247
9/03 165,278 171,221
9/04 177,558 185,963
1 For the period ended September 30, 2004. Past performance is no indication of
future performance. Class A Shares were offered beginning September 1, 1993.
Returns shown do not reflect the deduction of taxes that a shareholder would
pay on fund distributions or the redemption of fund shares. The returns for
certain periods reflect fee waivers and/or reimbursements in effect for that
period; absent fee waivers and reimbursements, performance would have been
lower.
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SEI Institutional International Trust / Annual Report / September 30, 2004 5
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MANAGEMENT'S DISCUSSION AND ANALYSIS OF FUND PERFORMANCE
SEI INSTITUTIONAL INTERNATIONAL TRUST -- SEPTEMBER 30, 2004
EMERGING MARKETS DEBT FUND
OBJECTIVE
The Emerging Markets Debt Fund (the "Fund") seeks to maximize total return from
a portfolio consisting of primarily high-yield, below-investment-grade fixed
income securities from emerging markets of foreign countries. The Fund also
seeks to provide U.S.-based investors with a vehicle to diversify and enhance
the returns of the domestic fixed income portion of their portfolios. Under
normal circumstances, the Fund is anticipated to be invested primarily in U.S.
dollar-denominated emerging debt.
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 25-30 countries.
The next step in the process is to determine relative value amongst sectors
within a country, and security selection within the sectors. The 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
Emerging Markets Debt (EMD) as measured by the J.P. Morgan EMBI Global Index
posted relatively strong performance during the twelve month period, returning
11.55%. The market has been able to benefit from strong internal factors -
improving economies and the passage of critical reforms - as well as strong
external factors - increase in global risk appetite and high oil prices.
However, the market was negatively impacted in April by volatility stemming from
external factors (i.e. U.S. Treasuries volatility, investor outflows) that led
the market to its second-worst-one month period (April: -5.70%) in over three
years. During the past year, EMD spreads over U.S. Treasuries tightened 77 basis
points to end at 409 basis points with the market yield ending the period at
8.16%.
The Latin American region was the largest contributor to the market's return. An
improving economy, lower interest rates and passage of key reforms propelled
Brazilian bonds to a 22% return. Venezuelan bonds were one of the market's top
performers, returning 30%, as President Chavez survived the referendum vote on
his presidency and S&P upgraded Venezuelan bonds to B from B-. The persistence
of high oil prices, expectations of further foreign direct investment into
Venezuela's beleaguered oil sector and the unwinding of electoral uncertainty
were the primary factors cited by Standard & Poors for the upgrade. Outside of
Latin America, Cote D'Ivoire (Ivory Coast) was one of the market's most volatile
performers, albeit gaining 5%, as the country's ongoing civil war intensified
during the period.
The Fund solidly outpaced the benchmark and returned 13.97% during the periods,
driven by overweight positions to Brazil, as well as to Ecuador which gained
38%, as high oil prices benefited the Ecuadorian economy. The largest detractor
to Fund performance was its underweight to Venezuela, and overweight to the
Dominican Republic which fell 3% as the Dominican Republic attempts to complete
a much-needed new International Monetary Fund agreement.
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6 SEI Institutional International Trust / Annual Report / September 30, 2004
EMERGING MARKETS DEBT FUND
AVERAGE ANNUAL TOTAL RETURN (1)
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Annualized Annualized Annualized
One Year 3 Year 5 Year Inception
Return Return Return to Date
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Class A 13.97% 20.20% 18.41% 11.02%
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Comparison of Change in the Value of a $100,000 Investment in the SEI Emerging
Markets Debt Fund, versus the J.P. Morgan EMBI Global Index, and the J.P. Morgan
EMBI Plus Index
[LINE GRAPH OMITTED -- PLOT POINTS FOLLOW:]
Emerging J.P. Morgan J.P. Morgan
Markets Debt Global EMBI Plus
Fund Index Index
6/97 $100,000 $100,000 $100,000
9/97 106,198 106,500 106,908
9/98 69,984 80,674 79,860
9/99 91,785 100,407 98228
9/00 117,549 125,408 125,771
9/01 123,062 129,572 127,997
9/02 125,707 130,194 126,538
9/03 187,493 175,801 177,393
9/04 213,685 196,106 198,610
1 For the period ended September 30, 2004. Past performance is no indication of
future performance. Class A Shares were offered beginning June 29, 1997.
Returns shown do not reflect the deduction of taxes that a shareholder would
pay on fund distributions or the redemption of fund shares. The returns for
certain periods reflect fee waivers and/or reimbursements in effect for that
period; absent fee waivers and reimbursements, performance would have been
lower.
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SEI Institutional International Trust / Annual Report / September 30, 2004 7
SCHEDULE OF INVESTMENTS
INTERNATIONAL EQUITY FUND
September 30, 2004
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SECTOR WEIGHTINGS (UNAUDITED)*:
34.1% Financials
10.8% Telecommunication Services
8.5% Industrials
8.2% Consumer Discretionary
7.6% Consumer Staples
7.4% Energy
6.9% Cash Equivalents
6.3% Healthcare
5.0% Basic Materials
2.9% Information Technology
2.1% Utilities
0.1% U.S. Treasury Obligations
0.1% Diversified
*Percentages based on total investments.
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Market Value
Description Shares ($ Thousands)
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COMMON STOCK -- 97.8%
AUSTRALIA -- 2.9%
Alumina 282,900 $ 1,152
Amcor 241,700 1,257
Australia & New Zealand Banking Group 308,481 4,250
BHP Billiton 2,074,900 21,582
BlueScope Steel 225,000 1,418
Brambles Industries 186,500 956
Foster's Group 314,425 1,077
Insurance Australia Group 304,781 1,148
National Australia Bank 846,891 16,551
Newcrest Mining 689,170 7,583
Promina Group 365,800 1,200
QBE Insurance Group 933,565 8,859
Rinker Group 244,700 1,530
Telstra 1,682,398 5,667
Wesfarmers 53,500 1,240
Westpac Banking 123,500 1,586
WMC Resources 272,800 1,059
Woolworths 149,500 1,475
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79,590
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AUSTRIA -- 0.4%
Erste Bank der Oesterreichischen
Sparkassen* 44,800 1,864
OMV* 18,100 4,170
Telekom Austria* 418,568 5,864
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11,898
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BELGIUM -- 0.7%
Belgacom 16,500 591
Delhaize Group 53,300 3,386
Fortis* 166,671 3,962
InBev 197,680 6,590
KBC Bancassurance Holding 55,700 3,625
UCB 20,921 1,114
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19,268
----------
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Market Value
Description Shares ($ Thousands)
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BRAZIL -- 0.2%
Cia de Saneamento Basico do Estado
de Sao Paulo* 12,120,000 $ 568
Cia Vale do Rio Doce ADR* 108,000 2,427
Gerdau ADR* 61,500 1,006
Uniao de Bancos Brasileiros GDR* 45,700 1,107
----------
5,108
----------
CANADA -- 1.7%
Abitibi-Consolidated (A) 122,000 766
Alcan (A) 162,800 7,783
Bank of Nova Scotia (A) 213,600 6,237
Bombardier, Cl B (A) 151,000 347
Cameco 3,600 286
Great-West Lifeco (A) 28,700 1,153
Inco* 86,700 3,386
Manulife Financial (A) 112,100 4,907
Research In Motion* 83,600 6,382
Royal Bank of Canada (A) 117,085 5,546
TELUS 81,500 1,578
Thomson (A) 196,600 6,818
----------
45,189
----------
CHINA -- 0.2%
China Petroleum & Chemical 2,176,000 886
China Telecom 15,044,000 4,871
----------
5,757
----------
DENMARK -- 0.5%
Danske Bank 110,300 2,899
Novo-Nordisk* 152,600 8,354
TDC* 60,000 2,123
----------
13,376
----------
FINLAND -- 0.7%
Fortum* 128,700 1,798
Kesko (A)* 186,900 4,090
Nokia* 888,215 12,223
UPM-Kymmene* 50,100 954
----------
19,065
----------
FRANCE -- 10.5%
Accor (A) 59,800 2,331
Air Liquide 30,015 4,708
AXA (A) 740,400 14,980
BNP Paribas 263,556 17,021
Bouygues (A) 393,900 14,775
Carrefour* 29,600 1,392
Christian Dior (A) 95,000 5,658
Cie Generale D'Optique Essilor
International 34,200 2,198
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8 SEI Institutional International Trust / Annual Report / September 30, 2004
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Market Value
Description Shares ($ Thousands)
- -------------------------------------------------------------------------------
Credit Agricole 76,363 $ 2,083
Dassault Systemes (A) 217,300 10,153
France Telecom* 1,184,546 29,512
Groupe Danone (A) 221,800 17,438
L'Oreal 34,700 2,273
Lagardere S.C.A.* 149,730 9,287
Publicis Groupe (A) 275,800 7,882
Renault* 155,082 12,683
Sanofi-Aventis (A)* 612,627 45,060
Schneider Electric 47,500 3,071
Societe Assurances Generales de
France (A) 231,700 14,518
Societe Generale (A)* 121,615 10,762
Total (A) 200,891 40,919
Vinci (A) 70,200 8,078
Vivendi Universal* 295,200 7,564
----------
284,346
----------
GERMANY -- 7.0%
Allianz* 35,900 3,616
AMB Generali Holding (A)* 32,000 2,265
BASF* 212,800 12,541
Bayer 114,827 3,140
Bayerische Hypo-und Vereinsbank* 799,900 15,359
Bayerische Motoren Werke* 131,893 5,422
Celesio* 63,500 4,330
Continental* 136,400 7,415
DaimlerChrysler* 296,500 12,226
Deutsche Bank* 27,800 1,998
Deutsche Boerse* 46,300 2,342
Deutsche Telekom (A)* 817,102 15,162
E.ON* 106,600 7,864
Hannover Rueckversicherung* 12,315 399
HeidelbergCement* 42,300 1,968
Infineon Technologies* 855,486 8,734
Linde* 53,817 3,101
MAN (A)* 98,000 3,351
Merck KGaA* 47,200 2,699
Metro* 173,100 7,725
Muenchener Rueckversicherungs* 73,508 7,081
SAP* 58,800 9,136
SAP ADR* 170,800 6,653
Siemens* 557,181 40,974
ThyssenKrupp (A)* 79,000 1,539
TUI (A)* 86,500 1,621
Volkswagen (A)* 49,600 1,909
----------
190,570
----------
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Market Value
Description Shares ($ Thousands)
- -------------------------------------------------------------------------------
HONG KONG -- 0.7%
China Mobile 469,000 $ 1,425
CNOOC (A) 13,767,500 7,195
Esprit Holdings 274,000 1,391
Hang Lung Properties (A) 1,652,000 2,436
Hang Seng Bank (A) 97,600 1,302
Li & Fung 1,400,000 2,011
Sun Hung Kai Properties (A) 211,900 1,997
Swire Pacific, Cl A (A) 187,800 1,307
----------
19,064
----------
HUNGARY -- 0.1%
Mol Magyar Olaj - es Gazipari 39,300 1,920
----------
INDIA -- 0.1%
ICICI Bank 180,000 1,119
Infosys Technologies ADR* 24,200 1,370
Punjab National Bank 90,000 508
----------
2,997
----------
IRELAND -- 0.8%
Anglo Irish Bank 459,000 8,409
CRH 132,057 3,157
Depfa Bank 237,000 3,232
Elan ADR* 271,700 6,358
----------
21,156
----------
ISRAEL -- 0.0%
Bank Hapoalim* 445,000 1,231
----------
ITALY -- 3.7%
Banca Popolare di Milano (A)* 786,400 4,932
Enel (A) 1,667,700 13,629
ENI-Ente Nazionale Idrocarburi 1,540,552 34,517
Sanpaolo IMI 954,500 10,776
Telecom Italia* 2,439,710 7,530
Telecom Italia RNC* 6,921,318 15,860
UniCredito Italiano* 2,439,759 12,303
----------
99,547
----------
JAPAN -- 20.5%
Advantest (A) 25,700 1,527
Aeon (A) 328,800 5,292
Aiful 10,600 1,040
Asatsu-DK 71,900 1,977
Bank of Yokohama 881,000 4,732
Canon (A) 707,082 33,232
Central Japan Railway (A) 142 1,116
Dai Nippon Printing (A) 940,000 12,571
Daito Trust Construction (A) 23,200 939
- --------------------------------------------------------------------------------
SEI Institutional International Trust / Annual Report / September 30, 2004 9
SCHEDULE OF INVESTMENTS
INTERNATIONAL EQUITY FUND (Continued)
September 30, 2004
- -------------------------------------------------------------------------------
Market Value
Description Shares ($ Thousands)
- -------------------------------------------------------------------------------
Daiwa House Industry 195,000 $ 1,905
Daiwa Securities Group (A) 142,000 899
East Japan Railway 976 5,048
Fanuc 48,500 2,552
Fast Retailing 57,700 3,921
Fuji Photo Film 419,200 13,769
Fuji Television Network 762 1,549
Furukawa Electric* 260,000 1,019
Hirose Electric 54,700 4,988
Hitachi (A) 3,671,900 22,188
Honda Motor (A) 150,200 7,277
Hoya 21,100 2,211
Index 1,770 3,919
Isetan 237,700 2,446
Ito-Yokado 278,000 9,534
Itochu* 765,000 3,262
Japan Airlines System (A)* 261,000 715
Japan Tobacco (A) 316 2,643
JFE Holdings (A) 355,700 10,134
Kansai Electric Power (A) 680,900 12,004
Kao 375,000 8,285
Keyence 5,800 1,220
Komatsu (A) 3,030,000 19,464
Konica Minolta Holdings (A) 591,000 8,081
Kyocera (A) 177,400 12,474
Kyushu Electric Power 36,400 682
Lawson 113,700 3,941
Matsushita Electric Industrial (A) 1,185,000 15,816
Millea Holdings (A) 1,703 21,941
Mitsubishi (A) 323,000 3,490
Mitsubishi Estate (A) 1,028,900 10,736
Mitsubishi Heavy Industries 445,000 1,256
Mitsubishi Tokyo Financial Group (A) 1,691 14,100
Mitsui Fudosan 264,000 2,745
Mitsui OSK Lines 1,195,000 7,167
Mitsui Sumitomo Insurance 971,000 8,008
Murata Manufacturing (A) 37,900 1,823
NEC (A) 1,892,000 11,313
Nidec (A) 19,200 1,941
Nikko Cordial 349,000 1,415
Nikon (A) 129,000 1,215
Nintendo (A) 59,100 7,228
Nippon Meat Packers 226,000 3,022
Nippon Telegraph & Telephone (A) 952 3,792
Nissan Motor (A) 2,361,200 25,708
Nissin Food Products 1,100 27
Nitto Denko 36,400 1,674
Nomura Holdings 530,000 6,804
OJI Paper (A) 76,000 430
Oriental Land 131,200 7,940
ORIX (A) 173,200 17,758
Promise (A) 94,550 6,185
Ricoh 72,000 1,356
- -------------------------------------------------------------------------------
Market Value
Description Shares ($ Thousands)
- -------------------------------------------------------------------------------
Rohm 92,000 $ 9,249
Sammy (3) (A) 65,000 3,185
Sankyo (A) 508,200 10,744
Sekisui House 255,000 2,434
Shimamura 17,300 1,152
Shionogi 193,000 2,765
SMC 23,900 2,288
Sompo Japan Insurance 147,000 1,246
Sony 491,400 16,764
Sumitomo (A) 223,000 1,659
Sumitomo Chemical 422,000 1,999
Sumitomo Forestry (A) 204,000 1,905
Sumitomo Mitsui Financial Group (A) 3,533 20,195
Suzuki Motor (A) 250,000 4,090
Takeda Chemical Industries (A) 55,100 2,500
Tanabe Seiyaku (A) 119,000 1,059
Tokyo Electric Power (A) 216,700 4,660
Tokyo Electron (A) 88,900 4,331
Tokyo Gas (A) 2,346,000 8,323
Toyota Motor 436,700 16,721
Trend Micro 130,500 5,612
UFJ Holdings* 1,983 8,690
UNY 115,000 1,182
Yahoo Japan (A)* 138 614
Yahoo Japan (C)* 138 608
Yamada Denki 2,900 100
Yamanouchi Pharmaceutical (A) 199,400 6,441
Yamato Transport (A) 168,000 2,312
----------
556,274
----------
LUXEMBOURG -- 0.4%
Arcelor* 547,200 10,113
SES GLOBAL FDR 126,000 1,228
----------
11,341
----------
MEXICO -- 0.4%
America Movil, Ser L ADR* 231,300 9,028
Cemex* 103,200 579
Telefonos de Mexico, Ser L ADR* 43,400 1,401
----------
11,008
----------
NETHERLANDS -- 7.0%
ABN AMRO Holding (A)* 1,487,716 33,795
Aegon (A)* 586,830 6,326
Akzo Nobel* 182,388 6,440
ASML Holding (A)* 76,273 981
CSM* 186,090 4,181
DSM* 20,100 1,048
Heineken (A)* 190,281 5,729
Heineken Holding, Cl A (A)* 111,562 2,998
ING Groep (A)* 1,024,451 25,855
- --------------------------------------------------------------------------------
10 SEI Institutional International Trust / Annual Report / September 30, 2004
- -------------------------------------------------------------------------------
Market Value
Description Shares ($ Thousands)
- -------------------------------------------------------------------------------
Koninklijke Philips Electronics* 53,600 $ 1,228
Reed Elsevier (A) 32,800 422
Royal Dutch Petroleum* 982,160 50,587
Royal Dutch Petroleum (NY Shares)* 28,000 1,445
Royal KPN* 1,594,187 11,939
Royal Numico* 66,600 2,121
TPG (A)* 418,900 10,234
Unilever (A)* 368,298 21,188
VNU* 129,467 3,329
----------
189,846
----------
NEW ZEALAND -- 0.4%
Telecom 2,516,837 10,019
----------
NORWAY -- 1.4%
DNB 200,000 1,582
Norsk Hydro (A) 235,000 17,106
Norske Skogindustrier* 34,600 620
Statoil* 748,700 10,733
Tandberg (A)* 703,500 6,349
Yara International* 73,500 781
----------
37,171
----------
PORTUGAL -- 0.2%
Portugal Telecom* 539,400 5,942
----------
SINGAPORE -- 0.6%
Flextronics International* 159,300 2,111
Singapore Airlines 174,000 1,126
Singapore Telecommunications (A) 7,801,862 10,844
United Overseas Bank 154,000 1,253
----------
15,334
----------
SOUTH AFRICA -- 0.4%
ABSA Group 188,100 1,891
Sanlam 828,200 1,402
Sasol 322,200 5,996
Telkom 60,230 685
----------
9,974
----------
SOUTH KOREA -- 1.0%
Honam Petrochemical 12,100 479
Hyundai Motor 34,600 1,596
Industrial Bank of Korea 88,000 540
INI Steel 74,000 823
Kookmin Bank* 18,900 598
Nong Shim 2,600 555
POSCO 8,800 1,311
Samsung Electronics 5,720 2,275
Samsung Electronics GDR (A)* 101,358 20,069
----------
28,246
----------
- -------------------------------------------------------------------------------
Market Value
Description Shares ($ Thousands)
- -------------------------------------------------------------------------------
SPAIN -- 3.9%
ACS Actividades* 414,400 $ 7,550
Altadis (A) 96,800 3,294
Banco Bilbao Vizcaya Argentaria (A) 1,249,500 17,195
Banco Santander Central Hispano (A) 1,486,200 14,509
Iberdrola* 70,500 1,462
Inditex* 208,000 5,141
Repsol (A)* 762,500 16,743
Sogecable (A)* 185,700 7,473
Telefonica (A)* 2,090,093 31,281
----------
104,648
----------
SWEDEN -- 1.8%
Assa Abloy (A)* 102,100 1,280
ForeningsSparbanken* 146,800 3,055
Nordea (A) 645,658 5,277
SKF (A) 93,829 3,564
Svenska Cellulosa, Cl B (A) 122,000 4,742
Telefonaktiebolaget LM Ericsson ADR* 364,500 11,387
Volvo, Cl B (A) 527,900 18,635
----------
47,940
----------
SWITZERLAND -- 7.7%
ABB (A)* 230,706 1,408
Adecco (A)* 26,691 1,325
Ciba Specialty Chemicals (A)* 41,447 2,579
Compagnie Financiere Richemont, Cl A* 285,097 7,888
Credit Suisse Group (A)* 422,922 13,497
Holcim* 289,762 15,281
Nestle 134,424 30,788
Novartis* 1,041,596 48,547
Roche Holding* 171,358 17,703
Serono, Cl B (A)* 2,260 1,395
STMicroelectronics (A)* 106,300 1,833
Swiss Reinsurance* 135,422 7,792
Swisscom* 21,649 7,507
Syngenta (A)* 36,874 3,514
Synthes* 16,900 1,841
UBS* 531,499 37,414
Xstrata 440,000 7,233
----------
207,545
----------
TAIWAN -- 0.4%
Chunghwa Telecom ADR* 252,047 4,438
Compal Electronics 1,200,000 1,190
HON HAI Precision Industry GDR (A)* 163,300 1,192
Taiwan Semiconductor Manufacturing 946,000 1,206
Taiwan Semiconductor Manufacturing
ADR (A)* 540,698 3,861
----------
11,887
----------
- --------------------------------------------------------------------------------
SEI Institutional International Trust / Annual Report / September 30, 2004 11
SCHEDULE OF INVESTMENTS
INTERNATIONAL EQUITY FUND (Continued)
September 30, 2004
- -------------------------------------------------------------------------------
Market Value
Description Shares ($ Thousands)
- -------------------------------------------------------------------------------
THAILAND -- 0.0%
PTT* 199,200 $ 813
----------
TURKEY -- 0.0%
Ford Otomotiv Sanayi 125,661,200 985
----------
UNITED KINGDOM -- 21.5%
Abbey National 598,700 6,067
Allied Domecq 1,516,215 12,868
ARM Holdings 329,600 498
AstraZeneca 208,465 8,544
AstraZeneca (SEK)* 351,086 14,516
Aviva 478,400 4,740
BAA 224,193 2,246
BAE Systems 339,549 1,381
Barclays 3,690,167 35,391
BG Group* 1,162,100 7,802
BHP Billiton 2,469,761 25,988
BOC Group 466,572 7,464
BP 5,049,055 48,195
Brambles Industries 169,900 789
British American Tobacco* 1,067,860 15,478
BT Group 2,125,700 6,914
Bunzl 462,379 3,483
Cadbury Schweppes 3,064,371 23,567
Carnival* 137,700 6,770
Centrica 634,400 2,881
Diageo 354,900 4,431
GlaxoSmithKline 1,432,745 30,878
GUS 714,795 11,641
Hays 3,284,987 7,891
HBOS 328,400 4,433
HSBC Holdings 1,604,301 25,460
Imperial Tobacco Group 714,466 15,566
Intercontinental Hotels Group 254,100 2,890
ITV* 1,760,942 3,433
J Sainsbury 499,800 2,304
mmO2* 3,667,800 6,521
National Grid Transco 2,209,264 18,640
Pearson 633,600 6,776
Persimmon 259,100 3,102
Prudential 916,862 7,474
Punch Taverns 72,500 661
Reckitt Benckiser 756,465 18,534
Reed Elsevier 2,197,662 19,287
Rentokil Initial 1,543,054 4,202
Rexam 214,309 1,642
Rio Tinto 447,200 12,025
RMC Group 414,700 6,375
Rolls-Royce Group* 1,473,448 6,752
Royal & Sun Alliance Insurance Group 1,000,000 1,294
Royal Bank of Scotland Group 907,119 26,198
Shell Transport & Trading 573,400 4,207
Signet Group* 5,591,800 11,586
- -------------------------------------------------------------------------------
Shares/Face Amount Market Value
Description ($ Thousands) ($ Thousands)
- -------------------------------------------------------------------------------
Smiths Group* 384,740 $ 5,166
Standard Chartered 271,500 4,660
Taylor Woodrow 190,000 905
Trinity Mirror 115,500 1,375
Unilever* 680,900 5,542
Vodafone Group 22,484,334 53,808
Whitbread 249,000 3,713
Wimpey George 404,100 2,940
Wolseley 250,770 4,281
----------
582,175
----------
Total Common Stock
(Cost $2,352,336) ($ Thousands) 2,651,230
----------
COMMERCIAL PAPER (B) -- 12.8%
UNITED STATES -- 12.8%
ASAP Funding
1.810%, 11/05/04 $ 27,000 26,953
Ajax Bambino Funding
1.830%, 10/25/04 35,000 34,957
Altamira Funding
1.800%, 10/14/04 33,000 32,978
Bavaria Universal Funding
1.800%, 10/15/04 31,600 31,578
Cobblestone Funding
1.800%, 10/25/04 26,200 26,168
Eiffel Funding
1.810%, 10/22/04 25,000 24,974
Hannover Funding
1.800%, 11/01/04 35,000 34,946
Lakeside Funding
1.790%, 10/08/04 30,500 30,500
Main Street Warehouse Funding
1.820%, 10/18/04 35,000 34,970
Mitten RFC
1.800%, 10/05/04 35,000 34,993
Park Granada
1.820%, 10/08/04 35,000 34,988
----------
Total Commercial Paper
(Cost $348,005) ($ Thousands) 348,005
----------
CORPORATE OBLIGATIONS (B) -- 7.7%
UNITED STATES -- 7.7%
Dorada Capital
1.840%, 10/01/04 25,000 25,006
K2 Funding
2.030%, 10/01/04 30,000 30,000
1.800%, 10/01/04 10,000 10,000
Liberty Lighthouse
1.840%, 10/01/04 15,000 15,011
- --------------------------------------------------------------------------------
12 SEI Institutional International Trust / Annual Report / September 30, 2004
- -------------------------------------------------------------------------------
Face Amount/Shares Market Value
Description ($ Thousands)(1) ($ Thousands)
- -------------------------------------------------------------------------------
Links Finance
1.840%, 10/01/04 $ 30,000 $ 29,997
Sigma Finance
2.020%, 10/01/04 35,000 35,000
Tango Financial
1.860%, 10/01/04 30,000 29,991
Whistlejacket Capital
2.030%, 10/01/04 35,000 35,000
----------
Total Corporate Obligations
(Cost $210,005) ($ Thousands) 210,005
----------
TIME DEPOSITS -- 1.4%
Brown Brothers Harriman
7.000%, 10/01/04 ZAR 106 16
5.590%, 10/01/04 NZD 244 165
4.250%, 10/01/04 AUD 269 194
3.750%, 10/01/04 GBP 577 1,045
1.350%, 10/01/04 CAD 201 159
1.300%, 10/01/04 25,752 25,752
1.260%, 10/01/04 EUR 7,965 9,893
1.200%, 10/01/04 DKK 523 87
1.100%, 10/01/04 SEK 41 6
0.890%, 10/01/04 NOK 963 143
----------
Total Time Deposits
(Cost $37,460) ($ Thousands) 37,460
----------
PREFERRED STOCK -- 0.5%
AUSTRALIA -- 0.0%
News* 152,420 1,201
----------
BRAZIL -- 0.2%
Cia Vale do Rio Doce ADR* 49,200 947
Petroleo Brasileiro* 59,000 1,938
Suzano Bahia Sul Papel e Celulose* 126,000 522
Usinas Siderurgicas de Minas Gerais* 38,500 593
----------
4,000
----------
GERMANY -- 0.3%
Porsche* 10,643 6,915
----------
Total Preferred Stock
(Cost $9,758) ($ Thousands) 12,116
----------
CONVERTIBLE BONDS -- 0.2%
CAYMAN ISLANDS -- 0.2%
SMFG Finance
2.250%, 07/11/05 249,000 4,550
----------
- -------------------------------------------------------------------------------
Shares/Face Amount Market Value
Description ($ Thousands)(1) ($ Thousands)
- -------------------------------------------------------------------------------
SWITZERLAND -- 0.0%
Credit Suisse Group
6.000%, 12/23/05 $ 186 $ 178
----------
Total Convertible Bonds
(Cost $2,850) ($ Thousands) 4,728
----------
U.S. TREASURY OBLIGATION -- 0.1%
UNITED STATES -- 0.1%
U.S. Treasury Bill (2)
1.755%, 02/24/05 2,000 1,985
----------
Total U.S. Treasury Obligation
(Cost $1,986) ($ Thousands) 1,985
----------
CASH EQUIVALENTS -- 2.4%
Morgan Stanley Liquidity
Prime #3 Fund (B) 26,145,376 26,145
One Group Institutional Prime
Money Market Fund (B) 1,003,687 1,004
The Reserve Fund, Primary
Fund, Cl 8 (B) 38,782,991 38,783
SEI Daily Income Trust, Prime
Obligation Fund, Cl A+ 976,575 977
----------
Total Cash Equivalents
(Cost $66,909) ($ Thousands) 66,909
----------
REPURCHASE AGREEMENTS (B) -- 5.0%
Barclays
1.570%, dated 09/30/04, to be repurchased
on 10/01/04, repurchase price $70,003,053
(collateralized by various FNMA Obligations,
ranging in par value $7,185,000-$64,730,000,
1.875%, 01/18/05-07/26/05; with total
market value $71,400,889) 70,000 70,000
Lehman Brothers 1.550%, dated 09/30/04, to be
repurchased on 10/01/04, repurchase price
$65,002,799 (collateralized by various FNMA
Obligations, ranging in par value
$20,764-$1,785,806, 4.500%-12.500%,
12/01/07-10/01/34; with total market value
$66,301,938) 65,000 65,000
----------
Total Repurchase Agreements
(Cost $135,000) ($ Thousands) 135,000
----------
Total Investments -- 127.9%
(Cost $3,164,309) ($ Thousands) $3,467,438
==========
- --------------------------------------------------------------------------------
SEI Institutional International Trust / Annual Report / September 30, 2004 13
SCHEDULE OF INVESTMENTS
INTERNATIONAL EQUITY FUND (Concluded)
September 30, 2004
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Percentages are based on Net Assets of $2,711,300,830.
* Non-Income Producing Security
+ See Note 3 in Notes to Financial Statements.
(1) In U.S. Dollars, unless otherwise noted.
(2) Securities pledged as collateral on open futures contracts. The rate
reported is the effective yield at the time of purchase.
(3) Security is fair valued using methods determined in good faith by the
Valuation Committee of the Board of Trustees. As of September 30, 2004, the
total value of this security was $3,184,684, representing 0.12% of the
Fund's net assets (See Note 2).
(A) This security or a partial position of this security is on loan at
September 30, 2004. The total value of securities on loan at September 30,
2004 was $725,774,060 (See Note 10).
(B) This security was purchased with cash collateral held from securities
lending. The total value of such securities as of September 30, 2004 was
$758,941,758 (See Note 10).
(C) Security purchased on a when-issued basis.
ADR -- American Depositary Receipt
AUD -- Australian Dollar
CAD -- Canadian Dollar
Cl -- Class
DKK -- Danish Krone
EUR -- Euro
FDR -- Fiduciary Depositary Receipt
FNMA -- Federal National Mortgage Association
GDR -- Global Depositary Receipt
GBP -- Great Britain Pound
NOK -- Norwegian Krone
NY -- New York
NZD -- New Zealand Dollar
Ser -- Series
SEK -- Swedish Krona
ZAR -- South African Rand
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
14 SEI Institutional International Trust / Annual Report / September 30, 2004
EMERGING MARKETS EQUITY FUND
September 30, 2004
- -------------------------------------------------------------------------------
SECTOR WEIGHTINGS (UNAUDITED)*:
25.3% Financials
14.8% Telecommunication Services
11.6% Industrials
9.8% Basic Materials
8.3% Energy
7.4% Consumer Discretionary
5.6% Information Technology
5.5% Cash Equivalents
4.3% Consumer Staples
3.4% Utilities
2.2% Diversified
1.8% Healthcare
*Percentages based on total investments.
- -------------------------------------------------------------------------------
Market Value
Description Shares ($ Thousands)
- -------------------------------------------------------------------------------
COMMON STOCK -- 91.3%
ARGENTINA -- 0.3%
IRSA Inversiones y Representaciones
GDR (C)* 309,500 $ 2,510
Telecom Argentina ADR* 51,800 566
Telecom Argentina, Ser B ADR* 23,000 251
----------
3,327
----------
AUSTRIA -- 0.1%
Bank Austria Creditanstalt* 13,381 949
----------
BRAZIL -- 5.0%
All America Latina Logistica GDR* 10,000 409
Aracruz Celulose ADR* 66,243 2,194
Banco do Brasil* 144,395 1,265
Banco do Brasil ADR* 13,911 122
Banco Itau Holding Financeira ADR* 47,370 2,629
Brasil Telecom Participacoes ADR* 63,500 2,057
Braskem ADR* 36,800 1,217
Centrais Eletricas Brasileiras* 59,277,500 948
Cia Brasileira de Distribuicao Grupo
Pao de Acucar ADR* 126,155 2,522
Cia de Concessoes Rodoviarias* 25,800 334
Cia de Saneamento Basico do
Estado de Sao Paulo* 54,741,555 2,566
Cia de Saneamento Basico do
Estado de Sao Paulo ADR (C)* 71,070 839
Cia Energetica de Minas Gerais ADR (C)* 116,800 2,482
Cia Siderurgica Nacional ADR* 46,200 718
Cia Vale do Rio Doce ADR* 94,400 2,121
Empresa Brasileira de Aeronautica ADR* 69,120 1,825
Gerdau ADR (C)* 89,404 1,462
Gol Linhas Aereas Inteligentes ADR* 50,221 1,020
Natura Cosmeticos* 28,200 570
Petroleo Brasileiro ADR (C)* 470,089 16,571
Tele Celular Sul Participacoes ADR (C)* 218,279 3,115
- -------------------------------------------------------------------------------
Market Value
Description Shares ($ Thousands)
- -------------------------------------------------------------------------------
Tele Norte Leste Participacoes ADR (C)* 152,090 $ 2,012
Telecomunicacoes Brasileiras ADR* 51,360 1,412
Telesp Celular Participacoes ADR (C)* 117,200 724
Uniao de Bancos Brasileiros GDR* 31,300 758
----------
51,892
----------
CHILE -- 1.1%
Banco Santander Chile ADR* 123,400 3,448
Cia Cervecerias Unidas ADR (C)* 10,877 258
Cia de Telecomunicaciones de
Chile ADR (C)* 60,237 668
CorpBanca* 336,769,165 1,808
Distribucion y Servicio D&S ADR* 25,495 406
Empresa Nacional de Electricidad ADR* 43,300 679
Empresas CMPC* 11,700 243
Enersis* 13,413,332 1,932
Enersis ADR* 228,622 1,655
----------
11,097
-----------
CHINA -- 2.3%
Aluminum Corp of China (C) 1,258,000 815
Byd (C) 508,500 1,545
China Oilfield Services 1,964,000 579
China Petroleum & Chemical 8,693,500 3,539
China Shipping Development 990,000 844
China Telecom 14,181,900 4,592
Datang International Power
Generation (C) 2,587,000 2,107
Huadian Power International 6,140,100 2,008
PICC Property & Casualty (C)* 5,087,000 1,794
Ping An Insurance Group (C) 1,757,000 2,580
Qingling Motors (C) 3,825,200 515
Sinopec Yizheng Chemical Fibre (C) 5,765,600 1,323
Sinotrans (C) 3,248,000 1,125
Yanzhou Coal Mining (C) 412,000 534
----------
23,900
----------
COLOMBIA -- 0.1%
BanColombia ADR* 126,000 1,021
----------
CROATIA -- 0.1%
Pliva D.D. GDR (A) (C)* 98,800 1,482
----------
CZECH REPUBLIC -- 0.6%
Cesky Telecom 136,300 1,808
Cesky Telecom GDR (C)* 130,800 1,707
Komercni Banka* 20,027 2,229
----------
5,744
----------
- --------------------------------------------------------------------------------
SEI Institutional International Trust / Annual Report / September 30, 2004 15
SCHEDULE OF INVESTMENTS
EMERGING MARKETS EQUITY FUND (Continued)
September 30, 2004
- -------------------------------------------------------------------------------
Market Value
Description Shares ($ Thousands)
- -------------------------------------------------------------------------------
EGYPT -- 0.8%
Commercial International Bank GDR (A)* 226,200 $ 1,108
Mobinil-Egyptian Mobile Services 13,016 230
Orascom Construction Industries* 167,843 3,634
Orascom Telecom* 8,300 253
Orascom Telecom GDR* 126,800 1,864
Suez Cement GDR (A)* 96,548 1,065
----------
8,154
----------
HONG KONG -- 2.8%
ASM Pacific Technology (C) 377,000 1,235
Beijing Enterprises Holdings 160,000 194
China Mengniu Dairy* 864,000 670
China Merchants Holdings
International (C) 985,000 1,484
China Mobile 3,232,300 9,824
China Resources Enterprise (C) 2,708,300 3,525
China Unicom 1,506,000 1,178
CNOOC 8,184,700 4,277
Giordano International 2,680,000 1,478
GOME Electrical Appliances Holdings* 1,410,000 836
Shanghai Industrial Holdings (C) 1,411,600 2,571
Texwinca Holdings 611,900 518
Yue Yuen Industrial Holdings (C) 596,500 1,541
----------
29,331
----------
HUNGARY -- 1.8%
Gedeon Richter (C)* 26,968 3,234
Matav* 1,278,935 5,325
Mol Magyar Olaj - es Gazipari 77,831 3,802
OTP Bank* 191,971 4,295
OTP Bank GDR* 46,466 2,056
----------
18,712
----------
INDIA -- 7.4%
Bharat Heavy Electricals 81,847 1,021
Bharat Petroleum 227,800 1,739
Bharti Televentures* 1,016,447 3,228
Dr. Reddy's Laboratories 24,907 399
Dr. Reddy's Laboratories ADR (A)* 120,400 1,941
GAIL India 181,232 752
GAIL India GDR (A)* 63,400 1,578
Grasim Industries 119,320 2,977
Hindalco Industries 52,047 1,525
Hindalco Industries GDR (A)* 108,800 3,166
Hindustan Lever 935,367 2,551
Hindustan Petroleum 550,881 3,787
Housing Development Finance 81,652 1,082
ICICI Bank 199,000 1,237
ICICI Bank ADR* 94,825 1,309
Indian Overseas Bank 2,184,683 2,463
Infosys Technologies 186,161 6,860
- -------------------------------------------------------------------------------
Market Value
Description Shares ($ Thousands)
- -------------------------------------------------------------------------------
ITC 95,611 $ 2,365
ITC GDR (A)* 74,600 1,845
Larsen & Toubro 44,300 823
Mahanagar Telephone Nigam 2,266,748 6,960
Mahanagar Telephone Nigam ADR* 106,050 748
NIIT 51,496 175
NIIT Technologies 77,244 280
Oil & Natural Gas 507,519 8,267
Ranbaxy Laboratories 31,706 752
Reliance Industries 399,445 4,500
Reliance Industries GDR (A)* 140,438 3,282
Satyam Computer Services 369,650 3,033
State Bank of India GDR (A) (C)* 80,300 1,995
Tata Consultancy Services* 34,515 771
Tata Motors 387,098 3,394
----------
76,805
----------
INDONESIA -- 2.5%
Astra Agro Lestari* 1,713,000 481
Astra International* 1,516,500 1,134
Bank Mandiri Persero* 6,954,000 1,101
Bank Rakyat Indonesia* 13,373,300 2,993
Gudang Garam* 1,961,800 2,784
HM Sampoerna* 8,876,000 5,911
Indofood Sukses Makmur* 17,746,200 1,308
Indonesian Satellite* 3,564,900 1,644
Ramayana Lestari Sentosa* 1,116,000 518
Telekomunikasi Indonesia* 18,708,400 8,476
Telekomunikasi Indonesia ADR* 3,400 60
----------
26,410
----------
ISRAEL -- 2.5%
Bank Hapoalim* 2,036,630 5,633
Check Point Software Technologies* 118,700 2,014
Koor Industries* 1 --
Lipman Electronic Engineering* 49,100 1,154
Makhteshim-Agan Industries* 547,626 2,363
Super-Sol* 361,150 864
Syneron Medical (C)* 46,100 817
Taro Pharmaceuticals Industries (C)* 35,500 830
Teva Pharmaceutical Industries* 14,694 381
Teva Pharmaceutical Industries ADR (C)* 444,604 11,538
----------
25,594
----------
MALAYSIA -- 4.3%
Berjaya Sports Toto 175,700 180
CIMB 220,200 286
Gamuda 2,113,400 2,809
Genting 981,900 4,367
Hong Leong Bank 747,400 1,013
IOI 655,800 1,614
Kuala Lumpur Kepong 350,000 617
- --------------------------------------------------------------------------------
16 SEI Institutional International Trust / Annual Report / September 30, 2004
- -------------------------------------------------------------------------------
Market Value
Description Shares ($ Thousands)
- -------------------------------------------------------------------------------
Magnum Corp 824,300 $ 523
Malakoff 2,345,300 3,888
Malayan Banking 389,400 1,127
Malaysia International Shipping* 221,200 739
Malaysia International Shipping
(Foreign Market)* 1,241,700 4,183
Malaysian Pacific Industries 297,700 1,026
Maxis Communications 1,400,400 3,133
Proton Holdings* 279,000 602
Public Bank 1,856,175 3,102
Public Bank (Foreign Market) 2,771,818 5,179
Resorts World 457,700 1,204
Sime Darby 2,397,100 3,627
Telekom Malaysia 1,721,900 5,075
----------
44,294
----------
MEXICO -- 5.5%
Alfa* 212,000 800
America Movil, Ser L ADR* 207,362 8,093
Cemex* 230,688 1,295
Cemex ADR* 118,019 3,321
Coca-Cola Femsa ADR (C)* 226,700 4,416
Consorcio ARA* 270,800 772
Controladora Comercial Mexicana (C)* 1,433,800 1,615
Desc, Ser B* 3,266,666 925
Fomento Economico Mexicano ADR* 67,489 2,982
Grupo Continental (C)* 841,400 1,255
Grupo Financiero Banorte* 834,495 3,927
Grupo Mexico, Ser B* 52,900 213
Grupo Televisa ADR* 102,430 5,401
Kimberly-Clark de Mexico, Ser A (C)* 1,370,531 4,018
Organizacion Soriana, Ser B* 354,726 1,151
Telefonos de Mexico, Ser L ADR (C)* 415,287 13,401
TV Azteca ADR (C)* 76,700 776
Urbi Desarrollos Urbanos (C)* 248,900 910
Wal-Mart de Mexico, Ser D (C)* 639,409 2,170
----------
57,441
----------
MOROCCO -- 0.1%
Ona 11,960 1,215
----------
PERU -- 0.1%
Cia de Minas Buenaventura ADR* 43,900 1,043
----------
PHILIPPINES -- 0.5%
ABS-CBN Broadcasting PDR* 1,040,900 393
Bank of the Philippine Islands* 1,130,089 914
Manila Electric (C)* 1,230,700 525
Philippine Long Distance Telephone* 45,300 1,123
Philippine Long Distance Telephone
ADR (C)* 82,000 2,053
SM Prime Holdings* 1,530,000 171
----------
5,179
----------
- -------------------------------------------------------------------------------
Market Value
Description Shares ($ Thousands)
- -------------------------------------------------------------------------------
POLAND -- 0.7%
Bank Pekao* 4,723 $ 161
Bank Przemyslowo-Handlowy* 8,371 1,062
KGHM Polska Miedz* 124,196 1,198
Polski Koncern Naftowy Orlen GDR* 12,689 247
Telekomunikacja Polska* 587,986 2,543
Telekomunikacja Polska GDR* 550,060 2,382
----------
7,593
----------
RUSSIA -- 4.6%
LUKOIL ADR (C)* 172,709 21,416
MMC Norilsk Nickel ADR* 40,487 2,571
Mobile Telesystems ADR* 50,636 7,342
OAO Gazprom ADR (C)* 132,146 4,730
Sberbank GDR* 14,754 612
Surgutneftegaz ADR* 18,600 677
Unified Energy System GDR* 23,020 669
Vimpel-Communications ADR* 66,800 7,268
VolgaTelecom ADR* 51,800 304
YUKOS ADR (C)* 130,753 2,105
----------
47,694
----------
SOUTH AFRICA -- 8.8%
ABSA Group (C) 734,923 7,389
Alexander Forbes 85,000 150
Anglo American Platinum 14,701 617
Aveng 759,592 1,009
Barloworld 205,879 2,480
Bidvest Group 267,781 2,605
Edgars Consolidated Stores 47,100 1,375
Gold Fields 221,062 2,987
Illovo Sugar 575,840 703
Impala Platinum Holdings 83,910 6,726
Imperial Holdings 108,057 1,360
Iscor 241,270 1,732
JD Group 417,100 3,305
Liberty Group 137,969 1,236
Massmart Holdings 769,532 4,659
Metro Cash & Carry* 3,530,869 1,396
MTN Group 823,968 3,922
Nampak 1,372,725 2,989
Naspers 118,000 933
Nedcor 754,910 6,937
Network Healthcare Holdings 44,000 34
Sanlam 4,923,981 8,335
Sappi 275,892 3,899
Sasol (C) 587,605 10,935
Shoprite Holdings 672,780 1,070
Standard Bank Group (C) 1,065,533 8,378
Steinhoff International Holdings 1,945,401 2,929
Telkom 73,800 839
Tongaat-Hulett Group 136,700 981
----------
91,910
----------
- --------------------------------------------------------------------------------
SEI Institutional International Trust / Annual Report / September 30, 2004 17
SCHEDULE OF INVESTMENTS
EMERGING MARKETS EQUITY FUND (Continued)
September 30, 2004
- -------------------------------------------------------------------------------
Market Value
Description Shares ($ Thousands)
- -------------------------------------------------------------------------------
SOUTH KOREA -- 18.3%
Cheil Communications 620 $ 80
CJ (C) 42,250 2,275
Daelim Industrial 40,430 1,738
Daewoo Shipbuilding & Marine Engineering 58,130 846
GS Holdings* 55,650 1,191
Hankook Tire (C) 417,840 3,756
Hyundai Department Store (C) 42,540 1,201
Hyundai Development (C) 69,280 755
Hyundai Mobis (C) 74,080 3,731
Hyundai Motor (C) 138,990 6,409
Industrial Bank of Korea 149,000 915
INI Steel (C) 59,010 656
Kangwon Land (C) 202,784 2,184
Kia Motors (C) 247,330 2,277
Kookmin Bank* 559,380 17,707
Kookmin Bank ADR (C)* 77,144 2,456
Korea Electric Power 585,070 11,051
Korea Fine Chemical (C) 10,960 100
Korean Reinsurance 483,080 1,657
KT ADR (C)* 369,293 6,673
KT&G (C) 104,950 2,775
LG Chem (C) 41,390 1,571
LG Electronics 21,290 1,224
LG Household & Health Care (C) 32,140 860
POSCO 60,670 9,036
POSCO ADR* 81,950 3,102
Samsung (C) 97,940 1,361
Samsung Electro-Mechanics (C)* 101,660 2,604
Samsung Electronics (C) 144,220 57,362
Samsung Fire & Marine Insurance (C) 177,010 10,192
Samsung SDI (C) 32,260 3,180
Shinhan Financial Group (C) 449,660 7,771
Shinsegae (C) 35,557 9,464
SK Telecom 26,450 4,031
SK Telecom ADR (C)* 434,642 8,454
----------
190,645
----------
TAIWAN -- 12.7%
Accton Technology* 1,143,649 490
Advanced Semiconductor Engineering* 1,521,000 1,012
Asustek Computer 1,777,025 3,897
Benq 1,103,000 1,143
Catcher Technology 670,800 1,876
Cathay Financial Holding 2,511,000 4,731
Cathay Financial Holding GDR (C)* 52,586 991
China Motors 956,000 1,171
China Steel 1,119,890 1,137
Chinatrust Financial Holding 8,429,057 9,082
Chunghwa Telecom 859,000 1,429
Chunghwa Telecom ADR (C)* 90,200 1,588
Compal Electronics 6,126,118 6,077
Delta Electronics 1,110,300 1,552
Elan Microelectronics 761,170 533
Eva Airways* 1,963,000 763
- -------------------------------------------------------------------------------
Market Value
Description Shares ($ Thousands)
- -------------------------------------------------------------------------------
Far Eastern Textile 2,124,000 $ 1,444
Far EasTone Telecommunications 1,515,000 1,432
First Financial Holding* 2,442,000 1,819
Formosa Chemicals & Fibre 325,000 560
Formosa Plastics 331,780 518
Fubon Financial Holding 675,000 620
High Tech Computer 345,360 1,317
HON HAI Precision Industry 3,736,532 12,869
Kindom Construction* 184,700 57
Largan Precision 290,290 2,042
Makalot Industrial 1,009,682 1,340
MediaTek 785,356 5,271
Mega Financial Holding 1,220,000 769
Nan Ya Plastic 6,803,043 9,913
Nien Hsing Textile 1,134,000 995
Nien Made Enterprises 1,304,320 1,939
Novatek Microelectronics 216,600 574
Optimax Technology 648,440 1,460
President Chain Store 584,168 858
Quanta Computer 3,713,607 6,395
Siliconware Precision Industries 801,900 550
Sinopac Holdings 11,169,056 5,852
Taiwan Cellular 2,846,632 2,732
Taiwan Green Point Enterprise 383,777 1,096
Taiwan Semiconductor Manufacturing 14,399,798 18,355
Unimicron Technology 535,558 333
United Microelectronics* 14,797,782 8,930
United Microelectronics ADR (C)* 354,295 1,197
Yageo* 7,944,440 2,982
Yuanta Core Pacific Securities 993,600 702
----------
132,393
----------
THAILAND -- 3.0%
Advanced Info Service* 308,500 745
Advanced Info Service (Foreign Market)* 1,149,600 2,775
Asian Property Development* 9,329,800 874
Asian Property Development NVDR* 1,295,200 121
Bangkok Bank* 1,958,500 4,657
Charoen Pokphand Foods (C)* 7,403,100 636
CP Seven Eleven* 75,500 106
Delta Electronics* 855,000 388
Italian-Thai Development* 10,163,800 2,257
Kasikornbank (C)* 3,344,134 3,754
Krung Thai Bank* 6,147,000 1,217
Land And Houses (C)* 7,067,200 1,552
PTT* 338,000 1,379
PTT Exploration & Production* 8,600 62
Siam Cement 946,750 6,079
Siam Commercial Bank* 2,398,910 2,563
Siam Makro* 529,300 581
Sino Thai Engineering & Construction* 1,597,300 341
Thai Airways International* 1,290,700 1,519
----------
31,606
----------
- --------------------------------------------------------------------------------
18 SEI Institutional International Trust / Annual Report / September 30, 2004
- -------------------------------------------------------------------------------
Shares/Face Amount Market Value
Description ($ Thousands) ($ Thousands)
- -------------------------------------------------------------------------------
TURKEY -- 2.3%
Akbank* 2,177,310,119 $ 9,834
Anadolu Efes Biracilik Ve Malt Sanayii 41,437,605 633
Arcelik* 193,896,595 1,133
Denizbank* 145,220,000 277
Dogan Yayin Holding* 502,091,082 1,718
Hurriyet Gazeteci 436,338,304 790
Tupras Turkiye Petrol Rafine* 321,304,715 2,625
Turkcell Iletisim Hizmet 374,404,058 1,666
Turkiye Garanti Bankasi* 862,044,367 2,892
Turkiye IS Bankasi 510,351,520 1,865
----------
23,433
----------
UNITED KINGDOM -- 2.8%
Anglo American (C) 214,870 5,152
Anglo American
(South African Shares) (C) 775,109 18,435
BHP Billiton 152,435 1,601
Old Mutual 1,804,398 3,730
----------
28,918
----------
VENEZUELA -- 0.2%
Cia Anonima Nacional Telefonos de
Venezuela ADR* 95,399 2,149
----------
Total Common Stock
(Cost $815,941) ($ Thousands) 949,931
----------
CORPORATE OBLIGATIONS (D) -- 7.3%
UNITED STATES -- 7.3%
Allstate Life Global Funding II
1.750%, 10/14/05 $ 6,791 6,791
Blue Heron Funding, Ser 6A,Cl 1
1.852%, 05/18/05 6,467 6,467
CCN Independence IV
1.830%, 07/15/05 4,851 4,851
Countrywide Home Loans
2.040%, 06/23/05 6,791 6,789
Harwood Street Funding I,
Ser 2004-1A, Cl Note
1.870%, 09/20/05 4,851 4,851
Morgan Stanley
1.696%, 10/04/05 4,851 4,851
RMAC, Ser 2004-NS2A, Cl A1
1.740%, 06/12/05 6,529 6,529
Saturn Ventures II
1.644%, 02/07/05 5,821 5,820
Sigma Finance
1.649%, 01/04/05 6,791 6,790
Wachovia Auto Owner Trust,
Ser 2004-A, Cl A1
2.111%, 06/20/05 3,357 3,357
Washington Mutual Bank
1.730%, 08/18/05 5,821 5,821
- -------------------------------------------------------------------------------
Shares/Face Amount Market Value
Description ($ Thousands) ($ Thousands)
- -------------------------------------------------------------------------------
White Pine Finance
1.756%, 03/11/05 6,791 $ 6,789
Whitehawk CDO Funding,
Ser 2004-1A, Cl AMMA
1.741%, 03/15/05 5,821 5,821
----------
Total Corporate Obligations
(Cost $75,527) ($ Thousands) 75,527
----------
PREFERRED STOCK -- 6.1%
BRAZIL -- 5.5%
Banco Bradesco* 25,770 1,353
Banco Itau Holding Financeira* 36,336,220 4,022
Brasil Telecom* 929,354,991 3,702
Caemi Mineracao e Metalurgica* 716,900 451
Centrais Eletricas Brasileiras* 14,800,000 222
Cia de Bebidas das Americas ADR* 230,096 5,154
Cia Energetica de Minas Gerais* 224,440,093 4,789
Cia Paranaense de Energia* 303,040,000 1,092
Cia Siderurgica Belgo Mineira* 415,600 193
Cia Siderurgica de Tubarao* 4,890,000 208
Cia Tecidos Norte De Mina* 17,505,000 1,678
Cia Vale do Rio Doce ADR* 368,469 7,093
Duratex* 25,181,000 1,056
Gerdau* 296,100 4,811
Investimentos Itau* 1,479,336 1,987
Marcopolo* 289,000 642
Petroleo Brasileiro* 25,500 837
Petroleo Brasileiro ADR (C)* 312,170 9,964
Sadia* 102,700 192
Tele Norte Leste Participacoes* 122,311 1,613
Telecomunicacoes de Sao Paulo* 46,827,900 819
Telemar Norte Leste* 269,579 4,738
Telemig Celular Participacoes* 311,747,000 444
----------
57,060
----------
SOUTH KOREA -- 0.6%
Hyundai Motor* 34,140 819
Hyundai Motor (Second Preferred)* 207,430 5,368
----------
6,187
----------
Total Preferred Stock
(Cost $47,091) ($ Thousands) 63,247
----------
COMMERCIAL PAPER (D) -- 1.5%
UNITED STATES -- 1.5%
CPI Funding
1.882%, 10/25/04 4,859 4,853
Golden Fish
1.884%, 11/08/04 4,749 4,740
- --------------------------------------------------------------------------------
SEI Institutional International Trust / Annual Report / September 30, 2004 19
SCHEDULE OF INVESTMENTS
EMERGING MARKETS EQUITY FUND (Concluded)
September 30, 2004
- -------------------------------------------------------------------------------
Shares/Face Amount Market Value
Description ($ Thousands) ($ Thousands)
- -------------------------------------------------------------------------------
Rhineland Funding
1.903%, 10/26/04 $ 1,850 $ 1,847
TMC
1.915%, 11/15/04 3,880 3,871
----------
Total Commercial Paper
(Cost $15,311) ($ Thousands) 15,311
----------
MASTER NOTE (D) -- 0.6%
UNITED STATES -- 0.6%
Bear Stearns
2.050%, 10/01/04 6,467 6,467
----------
Total Master Note
(Cost $6,467) ($ Thousands) 6,467
----------
TIME DEPOSITS -- 0.5%
Brown Brothers Harriman
7.000%, 10/01/04 ZAR 3,490 539
3.750%, 10/01/04 GBP 69 126
1.300%, 10/01/04 4,850 4,850
----------
Total Time Deposits
(Cost $5,515) ($ Thousands) 5,515
----------
EQUITY LINKED WARRANT (B) -- 0.1%
INDIA -- 0.1%
ICICI Bank* 60,608 381
----------
Total Equity Linked Warrant
(Cost $412) ($ Thousands) 381
----------
CASH EQUIVALENT -- 0.5%
UNITED STATES -- 0.5%
SEI Daily Income Trust,
Prime Obligation Fund, Cl A+ 5,091,124 5,091
----------
Total Cash Equivalent
(Cost $5,091) ($ Thousands) 5,091
----------
- -------------------------------------------------------------------------------
Face Amount Market Value
Description ($ Thousands) ($ Thousands)
- -------------------------------------------------------------------------------
REPURCHASE AGREEMENT (D) -- 5.2%
Barclays
1.570%, dated 09/30/04, to be
repurchased on 10/01/04, repurchase
price $54,168,135 (collateralized by
various FNMA Obligations, ranging in
par value $6,655,980-$13,198,456,
2.625%-6.000%, 12/15/05-05/15/09;
with total market value $55,249,929) $54,167 $ 54,167
----------
Total Repurchase Agreement
(Cost $54,167) ($ Thousands) 54,167
----------
Total Investments -- 113.1%
(Cost $1,025,522) ($ Thousands) $1,175,637
==========
Percentages are based on Net Assets of $1,039,734,535.
* Non-Income Producing Security
+ See Note 3 in Notes to Financial Statements.
(1) In U.S. Dollars, unless otherwise noted.
(A) Securities sold with 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." As of September 30, 2004, the total value of these securities
was $17,463,219, representing 1.68% of the Fund's net assets (See Note 2).
(B) Security is illiquid. See Note 2 discussing Equity-Linked Warrants.
(C) This security or a partial position of this security is on loan at
September 30, 2004. The total value of securities on loan at September 30,
2004 was $143,538,498 (See Note 10).
(D) This security was purchased with cash collateral held from securities
lending. The total value of such securities as of September 30, 2004 was
$151,472,048 (See Note 10).
ADR -- American Depositary Receipt
Cl -- Class
FNMA -- Federal National Mortgage Association
GDR -- Global Depositary Receipt
GBP -- Great Britain Pound
NVDR -- Non-Voting Depositary Receipt
PDR -- Philippine Depositary Receipt
Ser -- Series
ZAR -- South African Rand
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
20 SEI Institutional International Trust / Annual Report / September 30, 2004
INTERNATIONAL FIXED INCOME FUND
September 30, 2004
- --------------------------------------------------------------------------------
SECTOR WEIGHTINGS (UNAUDITED)*:
57.8% Government
26.0% Financials
5.1% U.S. Treasury Obligations
3.1% Special Purpose Entity
2.7% Cash Equivalents
2.2% Industrials
1.6% Telecommunication Services
1.5% Utilities
*Percentages based on total investments.
- -------------------------------------------------------------------------------
Face Amount Market Value
Description (Thousands)(1) ($ Thousands)
- -------------------------------------------------------------------------------
GLOBAL BONDS -- 83.0%
BELGIUM -- 0.8%
Kingdom of Belgium, Ser 31
5.500%, 03/28/28 4,980 $ 6,925
--------
CAYMAN ISLANDS -- 0.3%
Mizuho Financial Group
4.750%, 04/15/14 1,900 2,422
--------
DENMARK -- 1.4%
Kingdom of Denmark
6.000%, 11/15/11 65,000 12,277
--------
FINLAND -- 0.6%
Government of Finland
4.250%, 07/04/15 4,690 5,908
--------
FRANCE -- 17.6%
France Telecom
9.500%, 03/01/31 2,560 3,395
France Telecom, Ser E, MTN
8.125%, 01/28/33 1,150 1,904
French Treasury Note
4.500%, 07/12/06 55,000 70,576
Government of France
5.750%, 10/25/32 10,990 15,974
4.000%, 04/25/09 (A) 53,020 67,915
--------
159,764
--------
IRELAND -- 0.3%
Allied Irish Banks
7.500%, 02/28/11 1,910 2,799
--------
ITALY -- 2.9%
Buoni Poliennali Del Tesoro
5.750%, 02/01/33 6,770 9,642
Sanpaolo IMI, Ser E, MTN
6.375%, 04/06/10 4,300 6,006
UniCredito Italiano, Ser 1, MTN
6.000%, 03/16/11 7,700 10,648
--------
26,296
--------
- -------------------------------------------------------------------------------
Face Amount Market Value
Description (Thousands)(1) ($ Thousands)
- -------------------------------------------------------------------------------
JAPAN -- 21.9%
Government of Japan 10 Year Bond,
Ser 242
1.200%, 09/20/12 5,667,000 $ 51,491
Government of Japan 10 Year Bond,
Ser 256
1.400%, 12/20/13 5,743,000 52,281
Government of Japan 5 Year Bond,
Ser 31
0.600%, 09/20/08 500,000 4,563
Government of Japan 5 Year Bond,
Ser 35
0.600%, 03/20/09 5,584,000 50,803
Government of Japan 5 Year Bond,
Ser 39
0.800%, 09/20/09 4,300,000 39,341
--------
198,479
--------
LUXEMBOURG -- 0.4%
Telecom Italia Finance, Ser E, MTN
6.125%, 04/20/06 2,840 3,710
--------
NETHERLANDS -- 5.7%
Arena, Ser 2003-1, Cl A2
4.300%, 05/19/55 10,500 13,345
Deutsche Telekom International Finance
8.125%, 05/29/12 3,950 6,119
E.ON International Finance, Ser E, MTN
5.750%, 05/29/09 6,515 8,860
EADS Finance, Ser E, MTN
4.625%, 03/03/10 2,130 2,735
Government of Netherlands
7.500%, 01/15/23 4,670 7,967
Linde Finance
6.000%, 07/03/13 1,370 1,849
Munich Re Finance
6.750%, 06/21/23 2,280 3,209
Saecure, Ser A2
5.710%, 11/25/07 6,000 7,993
--------
52,077
--------
NEW ZEALAND -- 10.4%
Government of New Zealand, Ser 709
7.000%, 07/15/09 135,400 94,627
--------
SWEDEN -- 2.6%
Kingdom of Sweden, Ser 1043
5.000%, 01/28/09 95,060 13,749
Nordea Bank
6.000%, 12/13/10 7,700 9,917
--------
23,666
--------
- --------------------------------------------------------------------------------
SEI Institutional International Trust / Annual Report / September 30, 2004 21
SCHEDULE OF INVESTMENTS
INTERNATIONAL FIXED INCOME FUND (Concluded)
September 30, 2004
- -------------------------------------------------------------------------------
Face Amount Market Value
Description (Thousands)(1) ($ Thousands)
- -------------------------------------------------------------------------------
UNITED KINGDOM -- 12.8%
Aviva
5.700%, 09/29/49 EUR 1,900 $ 2,529
Bank of Scotland, Ser E, MTN
6.125%, 02/05/13 EUR 2,630 3,700
5.500%, 07/27/09 EUR 4,950 6,632
5.500%, 10/29/12 EUR 2,390 3,232
Chester Asset Receivables
6.125%, 10/15/10 EUR 15,770 22,037
Compass Group, Ser E, MTN
6.000%, 05/29/09 EUR 2,410 3,273
HSBC Capital Funding
8.030%, 06/30/12 EUR 3,060 4,721
Hilton Group Finance, Ser E, MTN
6.500%, 07/17/09 EUR 1,150 1,592
Imperial Tobacco Finance,
Ser E, MTN
6.250%, 06/06/07 EUR 1,510 2,020
MBNA Europe Funding, Ser E, MTN
4.500%, 01/23/09 EUR 3,700 4,738
NGG Finance
6.125%, 08/23/11 EUR 3,820 5,296
Permanent Financing
5.100%, 06/11/07 EUR 10,200 13,328
Royal Bank of Scotland Group
6.770%, 03/31/05 EUR 7,410 9,389
United Kingdom Treasury
4.750%, 12/07/38 1,630 3,036
4.250%, 06/07/32 11,730 19,965
United Utilities Water, Ser E, MTN
6.625%, 11/08/07 EUR 7,800 10,649
--------
116,137
--------
UNITED STATES -- 5.3%
Chase Credit Card Master Trust,
Ser 1998-4
5.000%, 08/15/08 EUR 7,200 9,476
Citibank Credit Card Issurance Trust
5.375%, 04/10/13 EUR 6,800 9,164
Ford Motor Credit, Ser E, MTN
6.750%, 01/14/08 EUR 2,650 3,564
General Motors
8.375%, 07/05/33 EUR 1,500 2,078
Goldman Sachs Group
5.125%, 04/24/13 EUR 810 1,054
Honda Auto Receivable Owners Trust,
Ser 2004-2, Cl A1
1.576%, 07/15/05 EUR 10,733 10,727
MBNA Credit Card Master Trust,
Ser 2002-A2, Cl A
5.600%, 07/17/14 EUR 6,650 9,108
Zurich Finance USA, Ser E, MTN
5.750%, 10/02/23 EUR 2,450 3,237
--------
48,408
--------
- -------------------------------------------------------------------------------
Face Amount Market Value
Description (Thousands)(1) ($ Thousands)
- -------------------------------------------------------------------------------
Total Global Bonds
(Cost $703,726) ($ Thousands) $753,495
--------
COMMERCIAL PAPER -- 7.4%
UNITED STATES -- 7.4%
ANZ (Delaware) (C)
1.642%, 10/12/04 $30,000 29,984
CPI Funding (B)
1.882%, 10/25/04 2,146 2,143
Danske Bank (C)
1.763%, 10/21/04 20,000 19,980
Golden Fish (B)
1.884%, 11/08/04 2,097 2,093
Rhineland Funding (B)
1.903%, 10/26/04 817 816
Svenska Handelsbank (C)
1.539%, 10/05/04 10,000 9,998
TMC (B)
1.915%, 11/15/04 1,713 1,709
--------
Total Commercial Paper
(Cost $66,723) ($ Thousands) 66,723
--------
U.S. TREASURY OBLIGATIONS -- 5.3%
U.S. Treasury Bills (C)
1.455%, 11/04/04 23,500 23,467
1.632%, 12/16/04 20,000 19,932
U.S. Treasury Note
1.626%, 12/23/04 5,000 4,981
--------
Total U.S. Treasury Obligations
(Cost $48,380) ($ Thousands) 48,380
--------
CORPORATE OBLIGATIONS (B) -- 3.7%
UNITED STATES -- 3.7%
Allstate Life Global Funding II
1.750%, 10/14/05 2,999 2,999
Blue Heron Funding, Ser 6A,Cl 1
1.852%, 05/18/05 2,856 2,856
CCN Independence IV
1.830%, 07/15/05 2,142 2,142
Countrywide Home Loans
2.040%, 06/23/05 2,999 2,998
Harwood Street Funding I,
Ser 2004-1A, Cl Note
1.870%, 09/20/05 2,142 2,142
Morgan Stanley
1.696%, 10/04/05 2,142 2,142
RMAC, Ser 2004-NS2A, Cl A1
1.740%, 06/12/05 2,883 2,883
Saturn Ventures II
1.644%, 02/07/05 2,570 2,570
Sigma Finance
1.649%, 01/04/05 2,999 2,998
- --------------------------------------------------------------------------------
22 SEI Institutional International Trust / Annual Report / September 30, 2004
- -------------------------------------------------------------------------------
Face Amount Market Value
Description (Thousands)(1) ($ Thousands)
- -------------------------------------------------------------------------------
Wachovia Auto Owner Trust,
Ser 2004-A, Cl A1
2.111%, 06/20/05 $ 1,482 $ 1,482
Washington Mutual Bank
1.730%, 08/18/05 2,570 2,570
White Pine Finance
1.756%, 03/11/05 2,999 2,998
Whitehawk CDO Funding,
Ser 2004-1A, Cl AMMA
1.741%, 03/15/05 2,570 2,570
--------
Total Corporate Obligations
(Cost $33,350) ($ Thousands) 33,350
--------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 2.9%
UNITED STATES -- 2.9%
FNMA (C)
1.704%, 11/08/04 22,000 21,945
SLMA
3.800%, 06/17/10 3,500 4,346
--------
Total U.S. Government Agency Obligations
(Cost $25,687) ($ Thousands) 26,291
--------
MASTER NOTE (B) -- 0.3%
UNITED STATES -- 0.3%
Bear Stearns
2.050%, 10/01/04 2,856 2,856
--------
Total Master Note
(Cost $2,856) ($ Thousands) 2,856
--------
TIME DEPOSITS -- 0.2%
Brown Brothers Harriman
1.300%, 10/01/04 1,575 1,575
1.200%, 10/01/04 DKK 28 5
--------
Total Time Deposits
(Cost $1,580) ($ Thousands) 1,580
--------
- -------------------------------------------------------------------------------
Face Amount Market Value
Description (Thousands)(1) ($ Thousands)
- -------------------------------------------------------------------------------
REPURCHASE AGREEMENT (B) -- 2.6%
Barclays
1.570%, dated 09/30/04, to be
repurchased on 10/01/04, repurchase
price $23,918,840 (collateralized by
various FNMA Obligations, ranging in
par value $2,939,059-$5,827,998,
2.625%-6.000%, 12/15/05-05/15/09;
with total market value $24,396,524) $23,918 $ 23,918
--------
Total Repurchase Agreement
(Cost $23,918) ($ Thousands) 23,918
--------
Total Investments -- 105.4%
(Cost $906,220) ($ Thousands) $956,593
========
Percentages are based on Net Assets of $907,632,986.
(1) In local currency unless otherwise indicated.
(A) This security or a partial position of this security is on loan at
September 30, 2004. The total value of the security on loan at September
30, 2004 was $66,608,254 (See Note 10).
(B) This security was purchased with cash collateral held from securities
lending. The total value of such securities as of September 30, 2004 was
$66,885,000. (See Note 10.)
(C) The rate reported is the effective yield at time of purchase.
Cl -- Class
DKK -- Danish Krone
EUR -- Euro
FNMA -- Federal National Mortgage Association
MTN -- Medium Term Note
Ser -- Series
SLMA -- Student Loan Marketing Association
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
SEI Institutional International Trust / Annual Report / September 30, 2004 23
SCHEDULE OF INVESTMENTS
EMERGING MARKETS DEBT FUND
September 30, 2004
- --------------------------------------------------------------------------------
SECTOR WEIGHTINGS (UNAUDITED)*:
66.6% Government
20.1% Financials
7.5% Cash Equivalents
2.9% Consumer Discretionary
1.8% Energy
0.6% Basic Materials
0.5% Information Technology
*Percentages based on total investments.
- -------------------------------------------------------------------------------
Face Amount Market Value
Description (Thousands)(1) ($ Thousands)
- -------------------------------------------------------------------------------
GLOBAL BONDS -- 88.2%
ARGENTINA -- 2.3%
Banco De Galicia
11.000%, 01/01/19 508 $ 420
3.000%, 01/01/14 3,269 2,190
Ciesa (B)
0.000%, 04/22/02 BRL 12,600 5,418
Empressa Distribuidora de Electricidad
de Mendoza, Ser E, MTN (B)
0.000%, 01/10/03 5,000 1,750
Republic of Argentina, Ser L-GL (B)
6.762%, 03/31/23 9,775 4,978
Republic of Argentina, Ser L-GP (B)
6.000%, 03/31/23 6,175 3,242
--------
17,998
--------
BRAZIL -- 20.2%
Federal Republic of Brazil
12.250%, 03/06/30 32,141 39,694
11.000%, 01/11/12 (E) 3,250 3,729
11.000%, 08/17/40 (E) 35,428 39,715
10.500%, 07/14/14 2,775 3,090
10.125%, 05/15/27 11,110 11,776
9.250%, 10/22/10 2,270 2,429
8.875%, 04/15/24 3,700 3,545
8.250%, 01/20/34 710 633
7.720%, 06/29/09 1,440 1,574
2.063%, 04/15/09 (C) 5,923 5,671
Federal Republic of Brazil, Ser 15YR (C)
2.125%, 04/15/09 956 934
Federal Republic of Brazil, Ser 18YR (C)
2.125%, 04/15/12 21,497 19,911
Federal Republic of Brazil, Ser 20YR (E)
8.000%, 04/15/14 22,435 22,183
--------
154,884
--------
BULGARIA -- 0.6%
Republic of Bulgaria Registered
8.250%, 01/15/15 1,200 1,477
Republic of Bulgaria, Ser A (C)
2.750%, 07/28/12 1,581 1,573
Republic of Bulgaria, Ser IAB (C)
2.750%, 07/28/11 1,888 1,879
--------
4,929
--------
- -------------------------------------------------------------------------------
Face Amount Market Value
Description (Thousands)(1) ($ Thousands)
- -------------------------------------------------------------------------------
CHILE -- 0.8%
Republic of Chile
7.125%, 01/11/12 5,375 $ 6,160
--------
COLOMBIA -- 5.1%
Republic of Colombia
11.750%, 02/25/20 (E) 12,940 15,819
10.750%, 01/15/13 (E) 5,250 6,017
10.375%, 01/28/33 (E) 6,900 7,486
10.000%, 01/23/12 2,050 2,267
8.700%, 02/15/16 2,420 2,372
8.375%, 02/15/27 (E) 1,750 1,592
8.125%, 05/21/24 425 384
7.625%, 02/15/07 2,950 3,134
--------
39,071
--------
COSTA RICA -- 0.5%
Government of Costa Rica (A)
9.995%, 08/01/20 2,200 2,376
8.050%, 01/31/13 1,475 1,479
--------
3,855
--------
DOMINICAN REPUBLIC -- 0.2%
Dominican Republic Registered
9.500%, 09/27/06 1,575 1,337
--------
ECUADOR -- 2.6%
Republic of Ecuador Registered
12.000%, 11/15/12 14,020 13,838
8.000%, 08/15/30 7,216 5,881
--------
19,719
--------
EL SALVADOR -- 0.6%
Republic of El Salvador (E)
7.750%, 01/24/23 4,000 4,295
--------
HUNGARY -- 0.4%
Government of Hungary
7.000%, 06/24/09 HUF 500,000 2,303
6.500%, 08/24/06 HUF 196,000 919
--------
3,222
--------
INDONESIA -- 0.7%
Garuda Indonesia (C)
1.670%, 12/31/07 1,650 1,468
Indah Kiat Finance Mauritius (B)
10.000%, 07/01/07 7,250 3,752
--------
5,220
--------
- --------------------------------------------------------------------------------
24 SEI Institutional International Trust / Annual Report / September 30, 2004
- -------------------------------------------------------------------------------
Face Amount Market Value
Description (Thousands)(1) ($ Thousands)
- -------------------------------------------------------------------------------
KAZAKHSTAN -- 0.7%
Kazkommerts International (A)
8.500%, 04/16/13 450 $ 457
7.875%, 04/07/14 1,000 963
Kazkommerts International Registered
8.500%, 04/16/13 3,800 3,863
--------
5,283
--------
MACEDONIA -- 0.1%
Government of Macedonia (C)
2.654%, 07/13/12 509 448
--------
MALAYSIA -- 1.1%
Government of Malaysia
8.750%, 06/01/09 800 958
7.500%, 07/15/11 2,725 3,195
Petronas Capital
7.875%, 05/22/22 3,700 4,433
--------
8,586
--------
MEXICO -- 12.4%
Cornhill, Ser 39 (B)
0.000%, 01/30/00 1,650 330
Cornhill, Ser 46 (B)
8.626%, 03/02/00 150 30
Pemex Project Funding Master Trust
8.000%, 11/15/11 500 566
Pemex Project Funding Master Trust (E)
8.500%, 02/15/08 3,750 4,209
Petroleos Mexicanos (E)
9.500%, 09/15/27 7,350 8,967
United Mexican States
11.375%, 09/15/16 11,935 17,544
6.625%, 03/03/15 (E) 31,825 33,735
5.875%, 01/15/14 (E) 16,264 16,508
United Mexican States, MTN
8.300%, 08/15/31 5,765 6,558
6.375%, 01/16/13 6,475 6,818
--------
95,265
--------
NIGERIA -- 0.6%
Central Bank of Nigeria
6.250%, 11/15/20 3,500 3,264
5.092%, 01/05/10 2,531 873
Turanalem Finance
8.000%, 03/24/14 450 432
--------
4,569
--------
- -------------------------------------------------------------------------------
Face Amount Market Value
Description (Thousands)(1) ($ Thousands)
- -------------------------------------------------------------------------------
PANAMA -- 1.0%
Republic of Panama
9.625%, 02/08/11 2,990 $ 3,431
9.375%, 01/16/23 (E) 1,070 1,166
8.875%, 09/30/27 (E) 2,250 2,363
Republic of Panama, Ser 18YR (C)
2.750%, 07/17/14 685 654
--------
7,614
--------
PERU -- 2.4%
Republic of Peru
9.875%, 02/06/15 (E) 2,575 2,961
8.750%, 11/21/33 2,000 1,985
8.375%, 05/03/16 1,875 1,950
Republic of Peru FLIRB, Ser 20YR (C) (E)
4.500%, 03/07/17 6,930 6,151
Republic of Peru, Ser 20YR (C)
5.000%, 03/07/17 5,601 5,097
--------
18,144
--------
PHILIPPINES -- 4.1%
Philippine Airlines (B) (G)
19.845%, 06/07/11 3,776 1,322
Republic of Philippines (E)
10.625%, 03/16/25 17,895 19,103
9.375%, 01/18/17 6,300 6,622
9.000%, 02/15/13 3,975 4,094
--------
31,141
--------
RUSSIA -- 17.4%
Aries Vermogensverwaltungs (A)
9.600%, 10/25/14 13,425 15,070
Russian Federation
12.750%, 06/24/28 10,795 16,408
11.000%, 07/24/18 10,535 13,748
8.250%, 03/31/10 12,175 13,240
5.000%, 03/31/30 (C) 77,585 74,579
--------
133,045
--------
SOUTH AFRICA -- 0.9%
Republic of South Africa
9.125%, 05/19/09 2,325 2,755
6.500%, 06/02/14 3,700 3,950
--------
6,705
--------
SOUTH KOREA -- 0.5%
Hynix Semiconductor
6.500%, 12/31/04 KRW 6,900,000 4,195
6.000%, 12/31/06 KRW 89,000 54
--------
4,249
--------
- --------------------------------------------------------------------------------
SEI Institutional International Trust / Annual Report / September 30, 2004 25
SCHEDULE OF INVESTMENTS
EMERGING MARKETS DEBT FUND (Continued)
September 30, 2004
- -------------------------------------------------------------------------------
Face Amount Market Value
Description (Thousands)(1) ($ Thousands)
- -------------------------------------------------------------------------------
TURKEY -- 5.0%
Republic of Turkey Global Bond
23.967%, 04/27/05 (D) TRL 3,500,000,000 $ 2,053
22.319%, 08/24/05 (D) TRL 4,300,000,000 2,339
27.518%, 10/05/05 (D) TRL 7,700,000,000 4,072
12.375%, 06/15/09 500 622
11.875%, 01/15/30 7,845 10,846
11.750%, 06/15/10 1,150 1,426
11.500%, 01/23/12 6,550 8,155
11.000%, 01/14/13 3,095 3,799
9.500%, 01/15/14 (E) 4,175 4,739
--------
38,051
--------
UKRAINE -- 0.7%
Government of Ukraine (A)
6.875%, 03/04/11 3,880 3,834
Government of Ukraine Registered
7.650%, 06/11/13 1,745 1,745
--------
5,579
--------
URUGUAY -- 2.2%
Republic of Uruguay
10.500%, 10/20/06 UYU 22,400 916
7.875%, 01/15/33 4,661 3,752
7.500%, 03/15/15 13,916 12,316
--------
16,984
--------
VENEZUELA -- 5.1%
Government of Venezuela
10.750%, 09/19/13 3,815 4,286
9.375%, 01/13/34 6,475 6,397
9.250%, 09/15/27 (E) 15,810 15,581
8.500%, 10/08/14 1,540 1,505
5.375%, 08/07/10 (E) 8,760 7,915
2.750%, 12/18/07 (C) 1,333 1,328
Government of Venezuela, Ser A
6.750%, 03/31/20 (C) 725 703
2.063%, 03/31/07 1,000 998
--------
38,713
--------
Total Global Bonds
(Cost $611,537) ($ Thousands) 675,066
--------
- -------------------------------------------------------------------------------
Face Amount Market Value
Description (Thousands)(1) ($ Thousands)
- -------------------------------------------------------------------------------
CORPORATE OBLIGATIONS (F) -- 7.1%
UNITED STATES -- 7.1%
Allstate Life Global Funding II
1.750%, 10/14/05 $ 4,872 $ 4,872
Blue Heron Funding, Ser 6A,Cl 1
1.852%, 05/18/05 4,640 4,640
CCN Independence IV
1.830%, 07/15/05 3,480 3,480
Countrywide Home Loans
2.040%, 06/23/05 4,872 4,871
Harwood Street Funding I,
Ser 2004-1A, Cl Note
1.870%, 09/20/05 3,480 3,480
Morgan Stanley
1.696%, 10/04/05 3,480 3,480
RMAC, Ser 2004-NS2A, Cl A1
1.740%, 06/12/05 4,684 4,684
Saturn Ventures II
1.644%, 02/07/05 4,176 4,176
Sigma Finance
1.649%, 01/04/05 4,872 4,872
Wachovia Auto Owner Trust,
Ser 2004-A, Cl A1
2.111%, 06/20/05 2,409 2,409
Washington Mutual Bank
1.730%, 08/18/05 4,176 4,176
White Pine Finance
1.756%, 03/11/05 4,872 4,871
Whitehawk CDO Funding,
Ser 2004-1A, Cl AMMA
1.741%, 03/15/05 4,176 4,176
--------
Total Corporate Obligations
(Cost $54,187) ($ Thousands) 54,187
--------
- --------------------------------------------------------------------------------
26 SEI Institutional International Trust / Annual Report / September 30, 2004
- --------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Face Amount Market Value
Description (Thousands)(1) ($ Thousands)
- -------------------------------------------------------------------------------
LOAN PARTICIPATIONS -- 6.3%
ALGERIA -- 0.4%
Republic of Algeria (Counterparty:
Credit Suisse First Boston) (C)
2.813%, 03/04/10 2,907 $ 2,864
--------
ARGENTINA -- 0.8%
Ciesa (Counterparty: Bank of America) (B)
0.000%, 04/22/02 3,400 1,462
Edesa USD Promissory Notes (Counterparty:
Bank of America) (B) (G)
0.446%, 12/31/49 3,300 2,607
Edesa USD Promissory Notes (Counterparty:
Citigroup Global Markets) (B) (G)
1.290%, 12/31/49 2,000 1,580
Telecom Personal Promissory Notes
(Counterparty: Bank of America) (B) (G)
1.100%, 12/31/49 ARS 2,846 811
--------
6,460
--------
INDIA -- 0.5%
Kaltim Prima Coal (Counterparty:
Credit Suisse First Boston)
0.000%, 12/31/49 3,570 3,552
--------
INDONESIA -- 1.1%
Indonesia Standby Loan 94 (Counterparty:
Deutsche Bank) (C)
2.875%, 12/31/49 6,512 5,730
PKN Tranche D Secured Short Term,
Ser 1 (Counterparty: Citibank)
0.000%, 10/06/04 370 369
PKN Tranche D Secured Short Term,
Ser 2 (Counterparty: Citibank)
0.000%, 08/10/04 515 511
PKN Tranche Loan A (Counterparty:
Citigroup Global Markets)
0.000%, 06/30/11 1,533 1,457
PKN Tranche Loan B (Counterparty:
Citigroup Global Markets)
0.000%, 05/01/11 4,200 345
--------
8,412
--------
MEXICO -- 0.3%
Altos Hornos, Promissory Note # 5 (B)
0.000%, 04/29/99 2,500 575
Altos Hornos, Promissory Note # 6 (B)
0.000%, 04/29/99 2,500 575
- -------------------------------------------------------------------------------
Face Amount Market Value
Description (Thousands)(1) ($ Thousands)
- -------------------------------------------------------------------------------
Altos Hornos, Tranche A (Counterparty:
Banc of America) (B)
0.000%, 04/11/04 3,540 $ 850
--------
2,000
--------
MOROCCO -- 1.6%
Kingdom of Morocco, Ser A (Counterparties:
UBS, J.P. Morgan,
Merrill Lynch) (C)
2.781%, 01/02/09 12,794 12,602
--------
SINGAPORE -- 0.7%
C2C Loan (Counterparty:
Deutsche Bank) (B) (G)
12/140%, 12/31/10 SGD 10,800 5,076
--------
THAILAND -- 0.9%
TPI JPY Loan (Counterparty:
Deutsche Bank) (B) (G)
2.059%, 12/31/49 JPY 354,231 2,346
TPI SYN Loan (Counterparty:
Banc of America) (B) (G)
0.916%, 12/31/49 6,600 4,851
--------
7,197
--------
Total Loan Participations
(Cost $42,241) ($ Thousands) 48,163
--------
TIME DEPOSITS -- 3.4%
Brown Brothers Harriman
1.300%, 10/01/04 $25,835 25,835
--------
Total Time Deposits
(Cost $25,835) ($ Thousands) 25,835
--------
COMMERCIAL PAPER (F) -- 1.4%
UNITED STATES -- 1.4%
CPI Funding
1.882%, 10/25/04 3,486 3,482
Golden Fish
1.884%, 11/08/04 3,407 3,401
Rhineland Funding
1.903%, 10/26/04 1,327 1,325
TMC
1.915%, 11/15/04 2,784 2,777
--------
Total Commercial Paper
(Cost $10,985) ($ Thousands) 10,985
--------
MASTER NOTE (F) -- 0.6%
Bear Stearns
2.050%, 10/01/04 4,640 4,640
--------
Total Master Note
(Cost $4,640) ($ Thousands) 4,640
--------
- --------------------------------------------------------------------------------
SEI Institutional International Trust / Annual Report / September 30, 2004 27
SCHEDULE OF INVESTMENTS
EMERGING MARKETS DEBT FUND (Concluded)
September 30, 2004
- -------------------------------------------------------------------------------
Shares/Face Amount Market Value
Description (Thousands)(1) ($ Thousands)
- -------------------------------------------------------------------------------
PREFERRED STOCK -- 0.0%
ARGENTINA -- 0.1%
Grupo Financiero Galicia* 639,625 $ 401
--------
Total Preferred Stock
(Cost $182) ($ Thousands) 401
--------
COMMON STOCK -- 0.0%
THAILAND -- 0.0%
TPI Equity 14,525 --
--------
INDONESIA -- 0.0%
PKN Tranche C Equity 24,929 --
--------
Total Common Stock
(Cost $0) ($ Thousands) --
--------
WARRANT -- 0.0%
NIGERIA -- 0.0%
Central Bank of Nigeria (H)* 2,000 --
--------
Total Warrant
(Cost $0) ($ Thousands) --
--------
RIGHTS -- 0.0%
Government of Venezuela Par,
Expire 04/15/20 (H) 215 --
--------
Total Rights
(Cost $36) ($ Thousands) --
--------
REPURCHASE AGREEMENTS -- 5.6%
Barclays (F)
1.570%, dated 09/30/04, to be
repurchased on 10/01/04, repurchase
price $38,863,307 (collateralized by
various FNMA Obligations, ranging in
par value $4,775,379-$9,469,324,
2.625%-6.000%, 12/15/05-05/15/09;
with total market value $39,639,447) $38,862 38,862
Merrill Lynch
1.620%. dated 09/30/04, to be
repurchased on 10/01/04, repurchase
price $4,173,195 (collateralized by
U.S. Treasury Obligation, par value
$3,315,000, 7.250%, 05/15/16;
with total market value $4,256,460) 4,173 4,173
--------
Total Repurchase Agreements
(Cost $43,035) ($ Thousands) 43,035
--------
Total Investments -- 112.6%
(Cost $792,678) ($ Thousands) $862,312
========
- -------------------------------------------------------------------------------
Description
- -------------------------------------------------------------------------------
Percentages are based on Net Assets of $765,482,864
* Non-Income Producing Security
(1) In U.S. dollars unless otherwise indicated.
(A) Securities sold with terms of a private placement memorandum, exempt from
registration under Section 144a of the Securities Act 1933, as amended, and
may be sold only to dealers in that program or other "accredited
investors." As of September 30, 2004, the total value of these securities
was $24,176,940, representing 3.16% of the Fund's net assets (See Note 2).
(B) Security in default on interest payments.
(C) Floating Rate Security -- the rate reflected on the Statement of Net Assets
is the rate in effect on September 30, 2004.
(D) Zero coupon security. The rate reported on the Statement of Net Assets is
the effective yield at time of purchase.
(E) This security or a partial position of this security is on loan at
September 30, 2004. The total value of securities on loan at September 30,
2004 was $102,709,460 (See Note 10).
(F) This security was purchased on cash collateral held from securities
lending. The total value of such securities as of September 30, 2004 was
$108,674,679 (See Note 10).
(G) The rate reported is the effective yield at time of purchase.
(H) Securities are fair valued at $0 and represent 0,00% of net assets.
ARS -- Argentina Peso
BRL -- Brazilian Real
Cl -- Class
FLIRB -- Front Loaded Interest Reduction Bond
FNMA -- Federal National Mortgage Associatio
HUF -- Hungarian Forint
JPY -- Japanese Yen
KRW -- South Korean Won
MTN -- Medium Term Note
Ser -- Series
SGD -- Singapore Dollar
TRL -- Turkish Lira
UYU -- Uruguay Peso
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
28 SEI Institutional International Trust / Annual Report / September 30, 2004
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES ($ Thousands)
September 30, 2004
- --------------------------------------------------------------------------------------------------------------------------------
EMERGING INTERNATIONAL EMERGING
INTERNATIONAL MARKETS FIXED MARKETS
EQUITY FUND EQUITY FUND INCOME FUND DEBT FUND
- --------------------------------------------------------------------------------------------------------------------------------
ASSETS:
Investments, at Market Value
(Cost $3,028,332, $966,264, $882,302 and
$749,643, respectively) $3,331,461 $1,116,379 $932,675 $819,277
Investments in Affiliated Investment Companies, at
Market Value (Cost $977 and $5,091, respectively) 977 5,091 -- --
Repurchase Agreements (Cost $135,000, $54,167,
$23,918 and $43,035, respectively) 135,000 54,167 23,918 43,035
Cash 11 2,813 27 23
Foreign Currency, at Value (Cost $1,471 and $13,082,
respectively) 1,474 13,027 -- --
Cash and Foreign Currency Pledged as Collateral,
at Value (Cost $7,654) -- -- 7,710 --
Receivable for Investment Securities Sold 17,096 6,531 -- 10,999
Dividends and Interest Receivable 5,154 3,323 12,429 8,460
Receivable for Shares of Beneficial Interest Sold 1,181 1,862 576 745
Foreign Tax Reclaim Receivable 300 31 -- --
Unrealized Gain on Spot Contracts 82 29 -- --
Unrealized Gain on Forward Foreign Currency Contracts -- -- 15,678 440
Deposits with Brokers for Forward Foreign Currency Contracts -- -- -- 2,675
Variation Margin Receivable 27 -- 897 --
- --------------------------------------------------------------------------------------------------------------------------------
Total Assets 3,492,763 1,203,253 993,910 885,654
- --------------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payable Upon Return of Securities Loaned 758,942 151,472 66,885 108,675
Payable for Investment Securities Purchased 16,254 6,029 -- 9,342
Payable for Share of Beneficial Interest Redeemed 3,226 1,287 989 1,044
Unrealized Loss on Spot Contracts 37 29 -- 15
Variation Margin Payable 34 -- -- --
Unrealized Loss on Forward Foreign Currency Contracts -- -- 17,593 215
Investment Advisory Fees Payable 1,113 822 111 251
Administration Fees Payable 992 546 442 402
Shareholder Servicing Fees Payable 551 210 169 155
Accrued Expenses 313 286 88 72
Accrued Foreign Capital Gains Tax Payable -- 2,837 -- --
- --------------------------------------------------------------------------------------------------------------------------------
Total Liabilities 781,462 163,518 86,277 120,171
- --------------------------------------------------------------------------------------------------------------------------------
Net Assets $2,711,301 $1,039,735 $907,633 $765,483
================================================================================================================================
NET ASSETS:
Paid-in-Capital $3,137,747 $1,024,696 $807,332 $651,735
Undistributed Net Investment Income 40,534 6,058 50,460 30,335
Accumulated Net Realized Gain (Loss) on Investments
and Options (770,059) (138,278) 188 13,566
Net Unrealized Appreciation on Investments and Options 303,129 150,115 50,373 69,634
Accumulated Foreign Capital Gains Tax on Appreciated Securities -- (2,837) -- --
Net Unrealized Appreciation (Depreciation) on Futures Contracts (108) -- 887 --
Net Unrealized Appreciation (Depreciation) on Forward Foreign
Currency Contracts, Foreign Currencies, and Translation of
Other Assets and Liabilities Denominated in Foreign Currencies 58 (19) (1,607) 213
- --------------------------------------------------------------------------------------------------------------------------------
Net Assets $2,711,301 $1,039,735 $907,633 $765,483
================================================================================================================================
Outstanding Shares of Beneficial Interest (Thousands) -- Class A
(Unlimited Authorization -- No Par Value) 275,683 93,692 74,268 71,267
Outstanding Shares of Beneficial Interest (Thousands) -- Class I
(Unlimited Authorization -- No Par Value) 587 -- -- --
Net Asset Value, Offering and Redemption
Price Per Share -- Class A $9.81* $11.10 $12.22 $10.74
Net Asset Value, Offering and Redemption
Price Per Share -- Class I $9.81* -- -- --
================================================================================================================================
Amounts designated as "--" are either $0 or have been rounded to $0.
*Based on nets assets of ($ Thousands) $2,705,544 and $5,757 of Class A Shares and Class I Shares, respectively.
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
SEI Institutional International Trust / Annual Report / September 30, 2004 29
STATEMENTS OF OPERATIONS ($ Thousands)
For the year ended September 30, 2004
- --------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL EMERGING INTERNATIONAL EMERGING
EQUITY MARKETS EQUITY FIXED INCOME MARKETS DEBT
FUND FUND FUND FUND
- --------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Dividends $ 67,272 $ 32,058 $ -- $ --
Dividends from Affiliated Investment Companies 219 219 -- --
Interest -- 368 29,650 46,022
Income from Security Lending 1,683 261 -- 192
Less: Foreign Taxes Withheld (7,846) (3,958) -- --
- --------------------------------------------------------------------------------------------------------------------------------
Total Investment Income 61,328 28,948 29,650 46,214
- --------------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Investment Advisory Fees 13,339 10,888 1,360 5,411
Administration fees 11,887 6,740 5,441 4,138
Shareholder Servicing Fees -- Class A 6,593 2,592 2,267 1,592
Shareholder Servicing Fees -- Class I 11 -- -- --
Administrative Servicing Fees -- Class I 11 -- -- --
Trustees' Fees 36 14 13 9
Custodian Fees 895 1,535 152 121
Printing Fees 206 79 70 50
Professional Fees 103 44 36 41
Registration & Filing Fees 61 24 21 15
Wire Agent Fees 29 11 10 7
Pricing Fees 28 21 9 8
Miscellaneous Expenses 58 22 21 16
- --------------------------------------------------------------------------------------------------------------------------------
Total Expenses 33,257 21,970 9,400 11,408
- --------------------------------------------------------------------------------------------------------------------------------
Less, Waiver of:
Investment Advisory Fees -- (1,743) -- (1,908)
Shareholder Servicing Fees -- Class A -- -- (326) (902)
- --------------------------------------------------------------------------------------------------------------------------------
Net Expenses 33,257 20,227 9,074 8,598
- --------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 28,071 8,721 20,576 37,616
================================================================================================================================
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS, OPTIONS, FUTURES, SWAPS AND
FOREIGN CURRENCY TRANSACTIONS:
Net Realized Gain (Loss) from:
Investments and Options 162,446 230,393 9,276 25,184
Futures Contracts 2,353 -- 774 --
Swap Contracts -- -- -- 14
Foreign Currency Transactions 522 (2,237) 56,708 740
Net Change in Unrealized Appreciation (Depreciation) on:
Investments and Options 276,257 (19,150) (3,901) 21,565
Futures Contracts 676 -- 477 --
Swap Contracts -- -- -- (137)
Foreign Capital Gains Tax on Appreciated Securities -- (295) -- --
Foreign Currency Transactions (177) (85) (19,555) 257
- --------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN ON
INVESTMENTS, OPTIONS, FUTURES, SWAPS,
AND FOREIGN CURRENCY TRANSACTIONS 442,077 208,626 43,779 47,623
================================================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $470,148 $217,347 $ 64,355 $85,239
================================================================================================================================
Amounts designated as "--" are $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
30 SEI Institutional International Trust / Annual Report / September 30, 2004
STATEMENTS OF CHANGES IN NET ASSETS ($ Thousands)
For the years ended September 30,
- --------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL EMERGING MARKETS
EQUITY FUND EQUITY FUND
- --------------------------------------------------------------------------------------------------------------------------------
2004 2003 2004 2003
- --------------------------------------------------------------------------------------------------------------------------------
OPERATIONS:
Net Investment Income $ 28,071 $ 23,578 $ 8,721 $ 5,698
Net Realized Gain (Loss) from Investment Transactions,
Options, Futures, and Swaps 164,799 (173,273) 230,393 27,003
Net Realized Gain (Loss) on Forward Foreign Currency Contracts
and Foreign Currency Transactions 522 (889) (2,237) (195)
Net Change in Unrealized Appreciation (Depreciation)
on Investments, Options,
Futures, and Swaps 276,933 536,566 (19,150) 242,326
Net Change in Accrued Foreign Capital Tax Gains on
Appreciated Securities -- -- (295) (2,464)
Net Change in Unrealized Appreciation (Depreciation) on Forward
Foreign Currency Contracts, Foreign Currencies, and
Translation of Other Assets and Liabilities Denominated in
Foreign Currencies (177) (75) (85) 415
- --------------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations 470,148 385,907 217,347 272,783
- --------------------------------------------------------------------------------------------------------------------------------
DIVIDENDS FROM:
Net Investment Income:
Class A (23,802) (10,407) (2,380) --
Class I (19) (2) -- --
- --------------------------------------------------------------------------------------------------------------------------------
Total Dividends (23,821) (10,409) (2,380) --
- --------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
CLASS A:
Proceeds from Shares Issued 698,545 3,133,558 308,082 1,785,869
Reinvestment of Dividends & Distributions 22,759 9,777 2,304 --
Cost of Shares Redeemed (719,697) (3,213,270) (422,178) (1,861,972)
- --------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets from Class A Transactions 1,607 (69,935) (111,792) (76,103)
- --------------------------------------------------------------------------------------------------------------------------------
CLASS I:
Proceeds from Shares Issued 4,430 1,364 -- --
Reinvestment of Dividends & Distributions 19 2 -- --
Cost of Shares Redeemed (1,177) (236) -- --
- --------------------------------------------------------------------------------------------------------------------------------
Increase in Net Assets from Class I Transactions 3,272 1,130 -- --
- --------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets from Capital Share Transactions 4,879 (68,805) (111,792) (76,103)
- --------------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets 451,206 306,693 103,175 196,680
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
BEGINNING OF YEAR 2,260,095 1,953,402 936,560 739,880
- --------------------------------------------------------------------------------------------------------------------------------
END OF YEAR $2,711,301 $ 2,260,095 $1,039,735 $ 936,560
- --------------------------------------------------------------------------------------------------------------------------------
UNDISTRIBUTED NET INVESTMENT INCOME $ 40,534 $ 22,777 $ 6,058 $ 1,873
- --------------------------------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS:
CLASS A:
Shares Issued 73,559 441,104 29,491 253,167
Reinvestment of Dividends 2,458 1,345 227 --
Shares Redeemed (75,619) (448,950) (40,128) (262,333)
- --------------------------------------------------------------------------------------------------------------------------------
Total Class A Transactions 398 (6,501) (10,410) (9,166)
- --------------------------------------------------------------------------------------------------------------------------------
CLASS I:
Shares Issued 459 192 -- --
Reinvestment of Dividends 2 -- -- --
Shares Redeemed (125) (33) -- --
- --------------------------------------------------------------------------------------------------------------------------------
Total Class I Transactions 336 159 -- --
- --------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Shares Outstanding
from Share Transactions 734 (6,342) (10,410) (9,166)
- --------------------------------------------------------------------------------------------------------------------------------
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
SEI Institutional International Trust / Annual Report / September 30, 2004 31
STATEMENTS OF CHANGES IN NET ASSETS ($ Thousands)
For the years ended September 30,
- --------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL EMERGING MARKETS
FIXED INCOME FUND DEBT FUND
- --------------------------------------------------------------------------------------------------------------------------------
2004 2003 2004 2003
- --------------------------------------------------------------------------------------------------------------------------------
OPERATIONS:
Net Investment Income $ 20,576 $ 21,479 $ 37,616 $ 41,065
Net Realized Gain from Investment Transactions,
Options, Futures, and Swaps 10,050 19,323 25,198 60,611
Net Realized Gain on Forward Foreign Currency Contracts
and Foreign Currency Transactions 56,708 32,852 740 1,076
Net Change in Unrealized Appreciation (Depreciation) on
Investments, Options, Futures, and Swaps (3,424) 29,198 21,428 98,009
Net Change in Unrealized Appreciation (Depreciation) on Forward
Foreign Currency Contracts, Foreign Currencies, and
Translation of Other Assets and Liabilities Denominated in
Foreign Currencies (19,555) 26,301 257 (43)
- --------------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations 64,355 129,153 85,239 200,718
- --------------------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS FROM:
Net Investment Income:
Class A (65,737) (23,580) (39,072) (40,050)
Net Realized Gains:
Class A (15,161) (3,699) (57,231) --
- --------------------------------------------------------------------------------------------------------------------------------
Total Dividends and Distributions (80,898) (27,279) (96,303) (40,050)
- --------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
CLASS A:
Proceeds from Shares Issued 301,318 374,056 338,053 330,214
Reinvestment of Dividends & Distributions 77,590 26,081 93,513 38,521
Cost of Shares Redeemed (320,430) (514,395) (220,256) (386,296)
- --------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets from Capital Share Transactions 58,478 (114,258) 211,310 (17,561)
- --------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 41,935 (12,384) 200,246 143,107
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
BEGINNING OF YEAR 865,698 878,082 565,237 422,130
- --------------------------------------------------------------------------------------------------------------------------------
END OF YEAR $ 907,633 $ 865,698 $ 765,483 $ 565,237
- --------------------------------------------------------------------------------------------------------------------------------
UNDISTRIBUTED NET INVESTMENT INCOME $ 50,460 $ 38,913 $ 30,335 $ 31,037
- --------------------------------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS:
CLASS A:
Shares Issued 24,773 32,255 32,923 33,911
Reinvestment of Dividends & Distributions 6,398 2,358 9,165 4,403
Shares Redeemed (26,436) (44,872) (21,527) (39,626)
- --------------------------------------------------------------------------------------------------------------------------------
Total Class A Transactions 4,735 (10,259) 20,561 (1,312)
- --------------------------------------------------------------------------------------------------------------------------------
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
32 SEI Institutional International Trust / Annual Report / September 30, 2004
FINANCIAL HIGHLIGHTS
For the years ended September 30, (unless otherwise indicated)
For a Share Outstanding Throughout Each Period
- ---------------------------------------------------------------------------------------------------------------------
NET REALIZED
AND
NET ASSET NET UNREALIZED DIVIDENDS
VALUE, INVESTMENT GAINS TOTAL FROM NET
BEGINNING INCOME (LOSSES) ON FROM INVESTMENT
OF PERIOD (LOSS) SECURITIES OPERATIONS INCOME
- ---------------------------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
CLASS A
2004 $ 8.20 $ 0.10(1) $ 1.60(1) $ 1.70 $(0.09)
2003 6.93 0.08(1) 1.23(1) 1.31 (0.04)
2002 8.25 0.04 (1.34) (1.30) (0.02)
2001 12.33 0.03 (3.73) (3.70) (0.07)
2000 12.09 0.08 0.43 0.51 (0.04)
CLASS I
2004 $ 8.20 $ 0.10(1) $ 1.58(1) $ 1.68 $(0.07)
2003 6.93 0.09(1) 1.20(1) 1.29 (0.02)
2002(2) 8.97 0.03 (2.07) (2.04) --
EMERGING MARKETS EQUITY FUND
CLASS A
2004 $ 9.00 $ 0.09(1) $ 2.03(1) $ 2.12 $(0.02)
2003 6.53 0.05(1) 2.42(1) 2.47 --
2002 6.08 0.01 0.47 0.48 (0.03)
2001 9.19 0.04 (3.15) (3.11) --
2000 9.13 (0.05)(1) 0.12(1) 0.07 (0.01)
INTERNATIONAL FIXED INCOME FUND
CLASS A
2004 $12.45 $ 0.28(1) $ 0.63(1) $ 0.91 $(0.92)
2003 11.00 0.30(1) 1.53(1) 1.83 (0.33)
2002 10.12 0.55 0.33 0.88 --
2001 9.81 0.33 (0.02) 0.31 --
2000 11.03 0.31 (1.35) (1.04) (0.18)
EMERGING MARKETS DEBT FUND
CLASS A
2004 $11.15 $ 0.61(1) $ 0.77(1) $ 1.38 $(0.66)
2003 8.12 0.78(1) 3.01(1) 3.79 (0.76)
2002 9.03 0.82 (0.56) 0.26 (0.99)
2001 9.51 0.94 (0.53) 0.41 (0.89)
2000 8.11 0.84 1.33 2.17 (0.77)
- ---------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
FROM TOTAL NET ASSET
REALIZED DIVIDENDS NET ASSET END OF
CAPITAL AND VALUE, END TOTAL PERIOD
GAINS DISTRIBUTIONS OF PERIOD RETURN+ ($ THOUSANDS)
- ---------------------------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
CLASS A
2004 $ -- $(0.09) $ 9.81 20.74% $2,705,544
2003 -- (0.04) 8.20 18.91 2,258,034
2002 -- (0.02) 6.93 (15.79) 1,952,763
2001 (0.31) (0.38) 8.25 (30.85) 2,365,245
2000 (0.23) (0.27) 12.33 4.15 2,953,872
CLASS I
2004 $ -- $(0.07) $ 9.81 20.54% $ 5,757
2003 -- (0.02) 8.20 18.65 2,061
2002(2) -- -- 6.93 (22.74) 639
EMERGING MARKETS EQUITY FUND
CLASS A
2004 $ -- $(0.02) $11.10 23.61% $1,039,735
2003 -- -- 9.00 37.83 936,560
2002 -- (0.03) 6.53 7.78 739,880
2001 -- -- 6.08 (33.84) 1,010,428
2000 -- (0.01) 9.19 0.71 1,285,033
INTERNATIONAL FIXED INCOME FUND
CLASS A
2004 $(0.22) $(1.14) $12.22 7.43% $ 907,633
2003 (0.05) (0.38) 12.45 17.05 865,698
2002 -- -- 11.00 8.70 878,082
2001 -- -- 10.12 3.16 1,198,644
2000 -- (0.18) 9.81 (9.58) 1,105,584
EMERGING MARKETS DEBT FUND
CLASS A
2004 $(1.13) $(1.79) $10.74 13.97% $ 765,483
2003 -- (0.76) 11.15 49.15 565,237
2002 (0.18) (1.17) 8.12 2.15 422,130
2001 -- (0.89) 9.03 4.69 458,950
2000 -- (0.77) 9.51 28.07 490,554
- ----------------------------------------------------------------------------------------------------
RATIO OF NET RATIO OF
INVESTMENT EXPENSES
RATIO OF INCOME TO AVERAGE
EXPENSES (LOSS) NET ASSETS PORTFOLIO
TO AVERAGE TO AVERAGE (EXCLUDING TURNOVER
NET ASSETS NET ASSETS WAIVERS) RATE
- ----------------------------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
CLASS A
2004 1.26% 1.06% 1.26% 44%
2003 1.28 1.12 1.32 87
2002 1.28 0.51 1.29 70
2001 1.28 0.36 1.29 91
2000 1.29++ 0.79 1.30 73
CLASS I
2004 1.51% 1.06% 1.51% 44%
2003 1.53 1.15 1.57 87
2002(2) 1.53 0.61 1.54 70
EMERGING MARKETS EQUITY FUND
CLASS A
2004 1.95% 0.84% 2.12% 88%
2003 1.95 0.71 2.14 69
2002 1.95 0.08 2.14 109
2001 1.95 0.54 2.13 126
2000 1.96 (0.46) 2.12 110
INTERNATIONAL FIXED INCOME FUND
CLASS A
2004 1.00% 2.27% 1.04% 224%
2003 1.00 2.60 1.06 216
2002 1.00 2.72 1.07 339
2001 1.00 3.13 1.06 235
2000 1.00 3.17 1.11 190
EMERGING MARKETS DEBT FUND
CLASS A
2004 1.35% 5.91% 1.79% 77%
2003 1.35 7.98 1.80 127
2002 1.35 8.80 1.79 140
2001 1.35 10.06 1.78 196
2000 1.35 10.67 1.80 227
+ Returns are for the period indicated and have not been annualized. Returns
shown do not reflect the deduction of taxes that a shareholder would pay on
fund distributions or the redemption of fund shares.
++ The ratio of expenses to average net assets, excluding interest expense, is
1.28% for the year ended September 30, 2000.
(1) Per share net investment income and net realized and unrealized
gains/(losses) calculated using average shares.
(2) The International Equity Fund Class I shares were offered beginning January
4, 2002. All ratios for the period have been annualized.
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
- --------------------------------------------------------------------------------
SEI Institutional International Trust / Annual Report / September 30, 2004 33
NOTES TO FINANCIAL STATEMENTS
NOTES TO FINANCIAL STATEMENTS
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 the International Equity Fund is registered to offer Class I shares.
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 accounting principles generally accepted in the
United States of America.
USE OF ESTIMATES -- The preparation of financial statements in conformity with
accounting principles generally accepted in the United States of America
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 -- Securities listed on a securities exchange, market or
automated quotation system for which quotations are readily available are valued
at the last quoted sale price on the primary exchange or market (foreign or
domestic) on which they are traded, or, if there is no such reported sale, at
the most recent quoted bid price. If available, debt securities are priced based
upon valuations provided by independent, third-party pricing agents. Such values
generally reflect the last reported sales price if the security is actively
traded. The third-party pricing agents may also value debt securities at an
evaluated bid price by employing methodologies that utilize actual market
transactions, broker-supplied valuations, or other methodologies designed to
identify the market value for such securities. Debt obligations with remaining
maturities of sixty days or less may be valued at their amortized cost, which
approximates market value. The prices for foreign securities are reported in
local currency and converted to U.S. dollars using currency exchange rates.
Prices for most securities held in the Funds are provided daily by recognized
independent pricing agents. If a security price cannot be obtained from an
independent, third-party pricing agent, the Funds seek to obtain a bid price
from at least one independent broker.
Securities for which market prices are not "readily available" are valued in
accordance with Fair Value Procedures established by the Funds' Board of
Trustees (the "Board"). The Funds' Fair Value Procedures are implemented through
a Fair Value Committee (the "Committee") designated by the Board. Some of the
more common reasons that may necessitate that a security be valued using Fair
Value Procedures include: the security's trading has been halted or suspended;
the security has been de-listed from a national exchange; the security's primary
trading market is temporarily closed at a time when, under normal conditions, it
would be open; or the security's primary pricing source is not able or willing
to provide a price. When a security is valued in accordance with the Fair Value
Procedures, the Committee will determine the value after taking into
consideration relevant information reasonably available to the Committee.
For securities that principally trade on a foreign market or exchange, a
significant gap in time can exist between the time of a particular security's
last trade and the time at which a Fund calculates its net asset value. The
closing prices of such securities may no longer reflect their market value at
the time the Fund calculates net asset value if an event that could materially
affect the value of those securities (a "Significant Event') has occurred
between the time of the security's last close and the time that the Fund
calculates net asset value. A Significant Event may relate to a single issuer or
to an entire market sector. If the adviser or sub-adviser of a Fund becomes
aware of a Significant Event that has occurred with respect to a security or
group of securities after the closing of the exchange or market on which the
security or securities principally trade, but before the time at which the Fund
calculates net asset value, it may request that a Committee Meeting be called.
In addition, the Funds' administrator monitors price movements among certain
selected indices, securities and/or baskets of securities that may be an
indicator that the closing prices received earlier from foreign exchanges or
markets may not reflect market value at the time the Fund calculates net asset
value. If price movements in a monitored index or security exceed levels
established by the administrator, the administrator notifies the adviser or
sub-adviser for any Fund holding the relevant securities that such limits have
been exceeded. In such event, the adviser or sub-adviser makes the determination
whether a Committee Meeting should be called based on the information provided.
- --------------------------------------------------------------------------------
34 SEI Institutional International Trust / Annual Report / September 30, 2004
The International Equity Fund and Emerging Markets Equity Fund also use a
third-party fair valuation vendor. The vendor provides a fair value for foreign
securities held by these Funds based on certain factors and methodologies
(involving, generally, tracking valuation correlations between the U.S. market
and each non-U.S. security). Values from the fair value vendor are applied in
the event that there is a movement in the U.S. market that exceeds a specific
threshold that has been established by the Committee. The Committee has also
established a "confidence interval" which is used to determine the level of
historical correlation between the value of a specific foreign security and
movements in the U.S. market before a particular security will be fair valued
when the threshold is exceeded. In the event that the threshold established by
the Committee is exceeded on a specific day, the International Equity Fund and
Emerging Markets Equity Fund will value the non-U.S. securities in their
portfolios that exceed the applicable "confidence interval" based upon the
adjusted prices provided by the fair valuation vendor.
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 the Trust's policies
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.
The Funds may also invest in tri-party repurchase agreements. Securities held as
collateral for tri-party repurchase agreements are maintained by the broker's
custodian bank in a segregated account 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 to 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 basis: (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.
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. For foreign debt obligations, the Funds do 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. 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 and the International Fixed
Income Fund utilized futures contracts during the year ended September 30, 2004.
The Funds' investment in these futures contracts is designed to enable the Funds
to more closely approximate the performance of their benchmark indices.
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 Funds record 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.
EQUITY-LINKED WARRANTS -- The International Equity and Emerging Markets Equity
Funds each may invest in equity-linked warrants. The Fund purchases the
equity-linked warrants from a broker, who in turn purchases shares in the local
market and issues a call warrant hedged on the underlying holding. If the Fund
exercises its call and closes its position, the shares are sold and the warrant
redeemed with the pro-
- --------------------------------------------------------------------------------
SEI Institutional International Trust / Annual Report / September 30, 2004 35
NOTES TO FINANCIAL STATEMENTS (Continued)
ceeds. Each warrant represents one share of the underlying stocks, therefore the
price, performance and liquidity of the warrant are all directly linked to the
underlying stock. The warrants can be redeemed for 100% of the value of the
underlying stock, less transaction costs. In addition to the market risk of the
underlying holding, the Fund bears additional counterparty risk to the issuing
broker. There is currently no active trading market for equity-linked warrants.
OPTION SELLING/PURCHASING -- The Funds may invest in financial options contracts
solely for the purpose of hedging their 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 or writing 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.
SWAP AGREEMENTS -- A swap agreement is a two-party contract under which an
agreement is made to exchange returns from predetermined investments or
instruments, including a particular interest rate, foreign currency, or "basket"
of securities representing a particular index. The gross returns to be exchanged
or "swapped" between the parties are calculated based on a "notional amount"
which, each business day, is valued to determine each party's obligation under
the contract. Fluctuations in market values are reflected as unrealized gains or
losses during the term of the contract. As a result of a recent FASB Emerging
Issues Task Force consensus [and subsequent related SEC staff guidance], the
Emerging Markets Debt Fund has reclassified periodic payments made under
interest rate swap agreements, previously included within interest income, as a
component of realized gain (loss) in the statement of operations.
CLASSES -- Class-specific expenses are borne by that class. Income, non-class
specific 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 Trust are prorated to the
Funds on the basis of relative net assets.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- 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 accounting principles generally accepted in the United States. 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. The International Fixed Income and
Emerging Markets Debt Funds utilized earnings and profits distributed to
shareholders on redemption of shares as part of the dividends paid deduction for
income tax purposes.
OTHER -- Security transactions are accounted 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 AND OTHER
TRANSACTIONS WITH AFFILIATES
The Trust and SEI Investments Fund Management (the "Administrator") are parties
to an amended and restated Administration and Transfer Agency Agreement dated
December 10, 2003 under which the Administrator provides management,
administrative, and shareholder services to the Funds for annual fees, based on
the average daily net assets of the respective funds, as presented below:
International Equity Fund 0.45%
Emerging Markets Equity Fund 0.65%
International Fixed Income Fund 0.60%
Emerging Markets Debt Fund 0.65%
However, the Administrator has voluntarily agreed to waive its fee so that the
total annual expenses of each Fund will not exceed certain expense limitations
adopted by the Administrator as presented below. In the event that the total
annual expenses of a Fund, after reflecting a waiver of all fees by the
Administrator, exceed the specific limitation, the Administrator has agreed to
bear such excess. Any such waiver is voluntary and may be terminated at any time
at the Administrator's sole discretion. At September 30, 2004, the Administrator
is currently not waiving its fee as indicated on the statement of operations.
- --------------------------------------------------------------------
International Emerging International Emerging
Equity Markets Equity Fixed Income Markets Debt
Fund Fund Fund Fund
- --------------------------------------------------------------------
Class A 1.28% 1.95% 1.00% 1.35%
Class I 1.53% -- -- --
- --------------------------------------------------------------------------------
36 SEI Institutional International Trust / Annual Report / September 30, 2004
SEI Investments Management Corporation ("SIMC") acts as the Investment Adviser
for the Funds under an amended and restated Investment Advisory Agreement dated
December 17, 2002 under which SIMC receives annual fees, based on the average
daily net assets of the respective funds, as presented below:
International Equity Fund 0.505%
Emerging Markets Equity Fund 1.050%
International Fixed Income Fund 0.150%
Emerging Markets Debt Fund 0.850%
However, SIMC has also voluntarily agreed to waive its fee so that the total
annual expenses of each Fund will not exceed certain expense limitations adopted
by the Adviser as presented above.
SIMC has entered into Investment Sub-Advisory Agreements with the following
parties:
- ----------------------------------------------------------
Date of
Investment Sub-Adviser Agreement
- ----------------------------------------------------------
INTERNATIONAL EQUITY FUND
Alliance Capital Management, L.P. 07/01/03
Capital Guardian Trust Company 06/10/98
Fisher Investments, Inc. 07/01/03
McKinley Capital Management, Inc. 07/01/03
Morgan Stanley Investment Management, Inc. 10/01/01
EMERGING MARKETS EQUITY FUND
Alliance Capital Management, L.P. 06/26/02
Citigroup Asset Management Ltd. 09/30/03
Emerging Markets Management, LLC 03/11/03
Rexiter Capital Management Ltd. 07/15/04
The Boston Company Asset
Management, LLC 09/18/00
INTERNATIONAL FIXED INCOME FUND
Fischer Francis Trees and Watts 12/17/02
EMERGING MARKETS DEBT FUND
Ashmore Investment Management 03/17/03
Salomon Brothers Asset
Management, Inc. 06/30/97
Under the investment sub-advisory agreements, each party receives an annual fee,
paid by SIMC.
SEI Investments Distribution Co. (the "Distributor"), a wholly owned subsidiary
of SEI Investment Company ("SEI Investments") and a registered broker-dealer,
acts as the Distributor of the shares of the Trust under an amended and restated
Distribution Agreement dated September 16, 2002. The Trust has adopted plans
under which firms, including the Distributor, that provide shareholder and
administrative services may receive compensation therefrom. Specific classes of
certain funds have also adopted distribution plans, pursuant to Rule 12b-1 under
the Investment Company Act of 1940. Such plans provide fees payable to the
Distributor equal to the following amounts, calculated as a percentage of the
average daily net assets attributable to each particular class of each
respective fund.
- ------------------------------------------------------------------
Shareholder Administrative
Servicing Fees Servicing Fees
- ------------------------------------------------------------------
International Equity Fund
Class A .25% --
Class I .25% .25%
Emerging Markets Equity Fund
Class A .25% --
International Fixed Income Fund
Class A .25% --
Emerging Markets Debt Fund
Class A .25% --
The Distribution Agreement between the Distributor and the Trust provides that
the Distributor may receive compensation on fund transactions effected for the
Trust in accordance with the rules of the Securities and Exchange Commission
("SEC"). Accordingly, it is expected that fund transactions may result in
brokerage commissions being paid to the Distributor. The SEC rules require that
such commissions not exceed usual and customary commissions. For the year ended
September 30, 2004, the Distributor received no brokerage commissions.
Under both the Shareholder Servicing Plans and Administrative Service Plan, the
Distributor may retain as profit any difference between the fee it receives and
the amount it pays to third parties.
However, the Distributor has also voluntarily agreed to waive its fee so that
the total annual expenses of each Fund will not exceed certain expense
limitations adopted by the Distributor as presented above.
For the year ended September 30, 2004, the Distributor retained 100% of both
Shareholder Servicing fees less the waiver and Administration Servicing fees.
Certain Officers and/or Trustees of the Trust are also Officers and/or Directors
of the SIMC or the Administrator. Compensation of affiliated Officers and
Trustees is paid by the SIMC or the Administrator.
INVESTMENT IN AFFILIATED REGISTERED INVESTMENT COMPANY -- Pursuant to an
exemptive order issued by the Securities and Exchange Commission, the Funds may
invest in the SEI money market funds, provided that investments in the SEI money
market funds do not exceed 25% of the investing Fund's total assets.
4. 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.
- --------------------------------------------------------------------------------
SEI Institutional International Trust / Annual Report / September 30, 2004 37
NOTES TO FINANCIAL STATEMENTS (Continued)
The following forward foreign currency contracts were outstanding at September
30, 2004:
- ------------------------------------------------------------------------------------------------------------------------
Unrealized
Maturity Currency to Currency to Appreciation/
Date Deliver Receive Contract Value (Depreciation)
- ------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL FIXED INCOME FUND:
11/24/04 USD 6,425,021 AUD 9,220,753 $6,643,350 $218,329
11/24/04 USD 40,868,358 CAD 53,526,889 42,272,344 1,403,986
11/24/04 EUR 60,110,000 CHF 91,860,822 73,733,950 (887,747)
11/24/04 EUR 7,460,000 CZK 236,989,280 9,314,189 53,204
11/24/04 USD 5,250,000 DKK 32,141,025 5,363,891 113,891
11/24/04 USD 186,741,903 EUR 154,767,224 192,130,973 5,389,070
11/24/04 JPY 3,894,028,810 EUR 29,450,000 36,559,790 1,124,735
11/24/04 CHF 91,289,831 EUR 59,410,000 73,752,703 477,071
11/24/04 CAD 18,346,470 EUR 11,610,000 14,412,875 (76,073)
11/24/04 PLZ 6,592,050 EUR 1,500,000 1,862,128 (1,748)
11/24/04 CZK 236,729,600 EUR 7,520,000 9,335,471 31,487
11/24/04 USD 44,509,101 GBP 24,636,943 44,388,058 (121,043)
11/24/04 EUR 14,730,000 HUF 3,740,000,800 18,576,662 290,561
11/24/04 EUR 97,150,000 JPY 12,984,499,814 118,156,923 (2,446,934)
11/24/04 USD 145,525,461 JPY 16,118,052,467 146,671,763 1,146,302
10/08/04-11/24/04 USD 28,366,857 KRW 32,885,888,226 28,527,078 160,220
11/24/04 USD 21,605,199 NZD 33,600,621 22,545,411 940,212
11/24/04 EUR 14,540,000 PLZ 64,679,754 18,287,946 237,713
11/24/04 USD 10,128,661 PLZ 37,000,000 10,461,604 332,943
11/24/04 CHF 587,596 USD 470,000 471,646 (1,646)
11/24/04 JPY 10,690,290,197 USD 97,036,604 97,279,973 (243,370)
11/24/04 DKK 51,685,565 USD 8,390,514 8,625,603 (235,090)
11/24/04 NZD 173,075,966 USD 109,193,627 116,130,854 (6,937,227)
11/24/04 PLZ 36,001,509 USD 9,650,673 10,179,285 (528,611)
11/24/04 SEK 39,388,848 USD 5,140,000 5,410,876 (270,876)
11/24/04 EUR 80,693,822 USD 97,997,318 100,174,844 (2,177,526)
11/24/04 GBP 1,626,000 USD 2,964,198 2,929,543 34,655
11/24/04 KRW 16,442,944,113 USD 14,335,610 14,277,425 58,185
-------------- -----------
$1,228,477,158 $(1,915,327)
============== ===========
EMERGING MARKETS DEBT FUND:
10/04/04-11/03/04 USD 2,705,243 BRL 7,842,500 $5,486,184 $156,715
01/18/05 USD 1,400,000 EUR 1,139,961 1,415,178 15,178
10/01/04-11/01/04 USD 2,798,906 IDR 26,001,450,000 6,250,196 164,710
01/18/05 USD 500,000 JPY 54,402,500 496,727 (3,273)
10/20/04-10/29/04 USD 9,300,000 PLZ 33,133,437 9,404,222 104,222
03/09/05 USD 4,300,000 RUB 124,270,000 4,252,458 (47,542)
10/12/04-10/27/04 USD 2,918,765 TRL 4,450,584,000,000 2,956,216 37,451
03/09/05 RUB 124,270,000 USD 4,136,818 4,252,458 (115,640)
11/03/04-11/04/04 KRW 4,107,900,000 USD 3,500,000 3,563,317 (63,317)
01/18/05 JPY 248,683,200 USD 2,288,552 2,270,623 17,928
10/01/04 IDR 16,412,400,000 USD 1,800,000 1,791,747 8,253
01/18/05 EUR 1,178,553 USD 1,432,708 1,463,087 (30,379)
10/27/04 TRL 2,400,000,000,000 USD 1,575,196 1,594,155 (18,959)
-------------- -----------
$ 45,196,568 $ 225,347
============== ===========
Currency Legend
AUD Australian Dollar DKK Danish Krone JPY Japanese Yen SEK Swedish Krona
BRL Brazilian Real EUR Euro KRW South Korean Won TRL Turkish Lira
CAD Canadian Dollar HUF Hungarian Forint NZD New Zealand Dollar USD U.S. Dollar
CHF Swiss Franc GBP British Pound Sterling PLZ Polish Zloty
CZK Czech Koruna IDR Indonesian Rupah RUB Russian Ruble
- --------------------------------------------------------------------------------
38 SEI Institutional International Trust / Annual Report / September 30, 2004
- --------------------------------------------------------------------------------
5. INVESTMENT TRANSACTIONS
The cost of security purchases and the proceeds from the sale and maturity of
securities, other than short-term investments, during the fiscal year ended
September 30, 2004, were as follows:
- ---------------------------------------------------------------
Purchases Sales
($ Thousands) ($ Thousands)
- ---------------------------------------------------------------
International Equity Fund
US Gov't $ -- $ --
Other 1,155,952 1,137,625
Emerging Markets Equity Fund
US Gov't $ -- $ --
Other 879,491 1,005,332
International Fixed Income Fund
US Gov't $ 9,162 $ 9,374
Other 1,569,811 1,532,966
Emerging Markets Debt Fund
US Gov't $ -- $ --
Other 540,796 400,987
6. FEDERAL TAX INFORMATION:
It is each Fund's intention to continue to qualify as a regulated investment
company under Subchapter M of the Internal Revenue Code and distribute all of
its taxable income (including net capital gains). Accordingly, no provision for
Federal income taxes is required.
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.
Dividends from net investment income and distributions from net realized capital
gains are determined in accordance with U.S. Federal income tax regulations,
which may differ from those amounts determined under accounting principles
generally accepted in the United States of America. These differences, which may
result in distribution reclassifications, are primarily due to foreign currency
gains and losses, passive foreign investment companies gains and losses,
equalization, and prior year adjustments. 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, undistributed net investment
income or accumulated net realized gain, as appropriate, in the period that the
differences arise.
Accordingly, the following permanent differences have been reclassified to/from
the following accounts as of September 30, 2004:
- ------------------------------------------------------------------------------
Undistributed Accumulated
Net Investment Realized Paid-in-
Income/(Loss) Gain/(Loss) Capital
($ Thousands) ($ Thousands) ($ Thousands)
- ------------------------------------------------------------------------------
International Equity Fund $13,507 $(13,507) $ --
Emerging Markets Equity Fund (2,156) 2,156 --
International Fixed Income Fund 56,708 (65,381) 8,673
Emerging Markets Debt Fund 754 (7,961) 7,207
As of September 30, 2004, the tax character of dividends and distributions
declared during the last two years were as follows:
- ------------------------------------------------------------------------------
Long-Term
Ordinary Income Capital Gain Totals
($ Thousands) ($ Thousands) ($ Thousands)
- ------------------------------------------------------------------------------
International
Equity Fund 2004 $23,821 $ -- $23,821
2003 10,409 -- 10,409
Emerging Markets
Equity Fund 2004 2,380 -- 2,380
2003 -- -- --
International Fixed
Income Fund 2004 76,253 4,645 80,898
2003 27,279 -- 27,279
Emerging Markets
Debt Fund 2004 68,148 28,155 96,303
2003 40,050 -- 40,050
As of September 30, 2004, the components of Distributable Earnings/(Accumulated
Losses) were as follows:
- -----------------------------------------------------------------------------------------------------------------------------------
Post Total
Undistributed Undistributed Capital October Other Distributable
Ordinary Long-Term Loss Currency Unrealized Temporary Earnings/
Income Capital Gain Carryforwards Losses Appreciation Differences (Accumulated
($ Thousands) ($ Thousands) ($ Thousands) ($ Thousands) ($ Thousands) ($ Thousands) Losses)
- -----------------------------------------------------------------------------------------------------------------------------------
International
Equity Fund $58,393 $ -- $(730,353) $ -- $263,373 $(17,859) $(426,446)
Emerging Markets
Equity Fund 9,562 -- (127,540) (2,076) 136,522 (1,429) 15,039
International Fixed
Income Fund 48,449 -- -- -- 51,852 -- 100,301
Emerging Markets
Debt Fund 38,062 11,198 -- -- 64,543 (55) 113,748
Post-October losses represent losses realized on investment or foreign currency
transactions from November 1, 2003 through September 30, 2004 that, in
accordance with Federal income tax regulations, the Funds defer and treat as
having arisen in the following fiscal year. For Federal income tax purposes,
capital loss carryforwards may be carried forward and applied against future
capital gains as follows:
- -------------------------------------------------------------------------------------------------------------------
Total Capital Total Capital Post
Loss Loss October
Expires Expires Expires Carry forward Utilized Currency
2012 2011 2010 9/30/04 9/30/04 Losses
($ Thousands) ($ Thousands) ($ Thousands) ($ Thousands) ($ Thousands) ($ Thousands)
- -------------------------------------------------------------------------------------------------------------------
International Equity
Fund $24,586 $226,615 $479,151 $730,352 $ -- $ --
Emerging Markets
Equity Fund -- -- 127,540 127,540 214,474 2,076
- --------------------------------------------------------------------------------
SEI Institutional International Trust / Annual Report / September 30, 2004 39
NOTES TO FINANCIAL STATEMENTS (Concluded)
For tax purposes, the losses in the Funds can be carried forward for a maximum
of eight years to offset any net realized capital gains.
The Federal tax cost, aggregate gross unrealized appreciation and depreciation
at September 30, 2004 for each Fund is as follows:
- ------------------------------------------------------------------------------
Aggregate Aggregate
Gross Gross Net
Federal Unrealized Unrealized Unrealized
Tax Cost Appreciation Depreciation Appreciation
($ Thousands) ($ Thousands) ($ Thousands) ($ Thousands)
- ------------------------------------------------------------------------------
International Equity
Fund $3,204,016 $393,381 $(129,959) $263,422
Emerging Markets
Equity Fund 1,036,258 180,190 (40,811) 139,379
International Fixed
Income Fund 906,031 50,910 (348) 50,562
Emerging Markets
Debt Fund 795,546 71,358 (4,592) 66,766
7. FUTURES CONTRACTS
The following Funds had futures contracts open as of September 30, 2004:
- ------------------------------------------------------------------------------
Contract Number of Market Settlement Unrealized
Description Contracts Value Month Gain/(Loss)
- ------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND:
DJ Euro Stoxx Long 89 $3,021,003 December 2004 $ (55,719)
FT-SE 100 Index Long 27 2,249,414 December 2004 12,505
Hang Seng Index Long 1 84,143 October 2004 (647)
SPI 200 Index Long 7 466,355 December 2004 4,964
Topix Index Long 18 1,800,572 December 2004 (69,011)
---------
$(107,908)
=========
INTERNATIONAL FIXED INCOME FUND:
Japan 10 Year Long Bond 25 $ 31,295,649 December 2004 $ 250,930
British 10 Year Long Bond 467 90,987,525 December 2004 997,246
U.S. 10 Year Short Note 214 24,101,750 December 2004 (244,156)
U.S. 5 Year Short Note 132 14,619,000 December 2004 (116,532)
----------
$ 887,488
==========
8. INVESTMENT 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 their obligations may be affected by economic and political
developments in a specific country, industry or region.
Certain securities held by the Funds are valued on the basis of a price provided
by a principal market maker. The prices provided by the principal market makers
may differ from the value that would be realized if the securities were sold. At
September 30, 2004, the total value of these securities represented
approximately 8% of the net assets of the Emerging Markets Debt Fund.
Forward foreign currency contracts, future contracts, and swap agreement
contracts involve risk of loss in excess of the amounts recognized in the
Statement of Assets and Liabilities to the extent of the contract amounts.
In the normal course of business, the Funds enter into contracts that provide
general indemnifications. The Funds' maximum exposure under these arrangements
is dependent on future claims that may be made against the Funds and, therefore,
cannot be established; however, based on experience, the risk of loss from such
claim is considered remote.
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 borrower, 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.
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
- --------------------------------------------------------------------------------
40 SEI Institutional International Trust / Annual Report / September 30, 2004
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 they
are subject to the risk of default by the issuer. They may be fully or partially
collateralized or uncollateralized and issued in various currencies.
10. SECURITIES LENDING
Each Fund may lend portfolio securities to brokers, dealers and other financial
organizations that meet capital and other credit requirements or other criteria
established by the Board. These loans may not exceed 33 1/3% of the total
asset value of the Fund (including the loan collateral). No Fund will lend
portfolio securities to its investment adviser, sub-adviser or their affiliates
unless it has applied for and received specific authority to do so from the SEC.
Loans of portfolio securities will be fully collateralized by cash. The value of
the collateral is at least equal to the market value of the securities loaned.
However, due to market fluctuations, the value of securities loaned on a
particular day may, during the course of the day, exceed the value of
collateral. On each business day, the amount of collateral is adjusted based on
the prior day's market fluctuations and the current day's lending activity.
Income from lending activity is determined by the amount of interest earned on
collateral, less any amounts payable to the borrowers of the securities and the
lending agent. Lending securities involves certain risks, including the risk
that the Fund may be delayed or prevented from recovering the collateral if the
borrower fails to return the securities.
Cash collateral received in connection with securities lending is invested in
short-term investments by the lending agent. These investments may include
repurchase agreements, which are collateralized by United States Treasury and
Government Agency securities, and high-quality, short-term instruments, such as
floating rate notes, commercial paper, and private placements with an average
weighted maturity not to exceed 60 days and a maturity date not to exceed 397
days.
11. OTHER
On September 30, 2004, number of shareholders below held the following
percentage of the outstanding shares of the Funds.
- -----------------------------------------------------------------------------
Number of % of Outstanding
Shareholders Shares
- -----------------------------------------------------------------------------
International Equity Fund, Class A 1 83.25%
International Equity Fund, Class I 8 74.20
Emerging Markets Equity Fund, Class A 1 84.80
International Fixed Income Fund, Class A 1 82.47
Emerging Markets Debt Fund, Class A 2 81.46
These shareholders are comprised of omnibus accounts, which are held on behalf
of several individual shareholders.
- --------------------------------------------------------------------------------
SEI Institutional International Trust / Annual Report / September 30, 2004 41
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees and Shareholders of
SEI Institutional International Trust
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of investments, 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 Fund,
Emerging Markets Equity Fund, International Fixed Income Fund, and Emerging
Markets Debt Fund (collectively the "Funds" constituting SEI Institutional
International Trust, hereafter referred to as the "Trust") at September 30,
2004, the results of each of their operations for the year then ended, the
changes in each of their net assets for each of the two years in the period then
ended and the financial highlights for each of the periods indicated, in
conformity with accounting principles generally accepted in the United States of
America. 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 the standards of the Public Company Accounting Oversight Board
(United States). Those standards 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, 2004 by
correspondence with the custodian and brokers, provide a reasonable basis for
our opinion.
PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
November 23, 2004
- --------------------------------------------------------------------------------
42 SEI Institutional International Trust / Annual Report / September 30, 2004
TRUSTEES AND OFFICERS OF THE TRUST (UNAUDITED)
The following chart lists Trustees and Officers as of September 30, 2004.
Set forth below are the names, dates of birth, position with the Trust, length
of term of office, the principal occupations for the last five years, number of
portfolios in fund complex overseen by trustee, and other directorships outside
the fund complex of each of the persons currently serving as Trustees and
Officers of the Trust. The Trust's Statement of Additional Information ("SAI")
includes additional information about the Trustees and Officers. The SAI may be
obtained without charge by calling 1-800-342-5734.
- ------------------------------------------------------------------------------------------------------------------------------------
TERM OF NUMBER OF
OFFICE PORTFOLIOS
AND PRINCIPAL IN FUND
NAME POSITION(S) LENGTH OF OCCUPATION(S) COMPLEX OTHER DIRECTORSHIPS
ADDRESS, HELD WITH TIME DURING PAST OVERSEEN HELD BY
AND AGE TRUSTS SERVED(1) FIVE YEARS BY TRUSTEE(2) TRUSTEE
- ------------------------------------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEES
- -------------------
Robert A. Nesher Chairman since 1982 Currently performs various 68 Trustee of The Advisors' Inner
One Freedom of the services on behalf of SEI Circle Fund, The Advisors'
Valley Drive, Board of Investments for which Mr. Inner Circle Fund II, Bishop
Oaks, PA 19456 Trustees* Nesher is compensated. Street Funds, The MDL Funds,
58 yrs. old The Expedition Funds,
SEI Global Master Fund, plc,
SEI Global Assets Fund, plc,
SEI Global Investments Fund,
plc, SEI Investments Global,
Limited, SEI Absolute Return
Master Fund, L.P., SEI
Absolute Return Fund, L.P.,
SEI Opportunity Master
Fund, L.P., and SEI
Opportunity Fund, L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
William M. Doran Trustee* since 1982 Self-employed consultant since 2003. 68 Trustee of The Advisors' Inner
1701 Market Street Partner, Morgan, Lewis & Bockius Circle Fund, The Advisors'
Philadelphia, PA LLP (law firm) from 1976 to 2003, Inner Circle Fund II, The MDL
19103 counsel to the Trust, SEI Funds, and The Expedition
64 yrs. old Investments, SIMC, the Administrator Funds; Director of SEI
and the Distributor.Secretary Investments since 1974.
of SEI Investments since 1978. Director of the Distributor
since 2003.
- ------------------------------------------------------------------------------------------------------------------------------------
TRUSTEES
- --------
F. Wendell Gooch Trustee since 1982 Retired 68 Trustee of STI Classic Funds
One Freedom and STI Classic Variable
Valley Drive, Trust.
Oaks, PA 19456
71 yrs. old
- ------------------------------------------------------------------------------------------------------------------------------------
James M. Storey Trustee since 1995 Attorney, sole practitioner since 68 Trustee of The Advisors' Inner
One Freedom 1994. Partner, Dechert Price Circle Fund, The Advisors'
Valley Drive, & Rhoads, September 1987- Inner Circle Fund II, The MDL
Oaks, PA 19456 December 1993. Funds, The Expedition Funds
73 yrs. old and Massachusetts Health and
Education Tax-Exempt Trust.
Director of U.S. Charitable
Gift Trust.
- ------------------------------------------------------------------------------------------------------------------------------------
*MESSRS. NESHER AND DORAN ARE TRUSTEES WHO MAY BE DEEMED TO BE "INTERESTED"
PERSONS OF THE TRUST AS THAT TERM IS DEFINED IN THE 1940 ACT BY VIRTUE OF THEIR
AFFILIATION WITH SIMC AND THE TRUSTS' DISTRIBUTOR.
1EACH TRUSTEE SHALL HOLD OFFICE DURING THE LIFETIME OF THIS TRUST UNTIL THE
ELECTION AND QUALIFICATION OF HIS OR HER SUCCESSOR, OR UNTIL HE OR SHE SOONER
DIES, RESIGNS OR IS REMOVED IN ACCORDANCE WITH THE TRUST'S DECLARATION OF
TRUST.
2THE FUND COMPLEX INCLUDES THE FOLLOWING TRUSTS: SEI ASSET ALLOCATION TRUST, SEI
DAILY INCOME TRUST, SEI INDEX FUNDS, SEI INSTITUTIONAL INVESTMENTS TRUST, SEI
INSTITUTIONAL INTERNATIONAL TRUST, SEI INSTITUTIONAL MANAGED TRUST, SEI LIQUID
ASSET TRUST AND SEI TAX EXEMPT TRUST.
- --------------------------------------------------------------------------------
SEI Institutional International Trust / Annual Report / September 30, 2004 43
TRUSTEES AND OFFICERS OF THE TRUST (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------
TERM OF NUMBER OF
OFFICE PORTFOLIOS
AND PRINCIPAL IN FUND
NAME POSITION(S) LENGTH OF OCCUPATION(S) COMPLEX OTHER DIRECTORSHIPS
ADDRESS, HELD WITH TIME DURING PAST OVERSEEN HELD BY
AND AGE TRUSTS SERVED(1) FIVE YEARS BY TRUSTEE(2) TRUSTEE
- ------------------------------------------------------------------------------------------------------------------------------------
TRUSTEES (CONTINUED)
- --------
George J. Sullivan, Jr. Trustee since 1996 Self-Employed Consultant, Newfound 68 Trustee of The Advisors' Inner
One Freedom Consultants Inc. since April 1997. Circle Fund, The Advisors'
Valley Drive Inner Circle Fund II, The
Oaks, PA 19456 MDL Funds, The Expedition
61 yrs. old Funds, State Street Navigator
Securities Lending Trust,
Trust, SEI Absolute Return
Master Fund, L.P., SEI
Absolute Return Fund, L.P.,
SEI Opportunity Master Fund,
L.P., and SEI Opportunity
Fund, L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
Rosemarie B. Greco Trustee since 1999 Director, Governor's Office of Health 68 Director, Sonoco, Inc.;
One Freedom Care Reform, Commonwealth of Director, Exelon Corporation;
Valley Drive Pennsylvania since 2003. Founder and Trustee, Pennsylvania Real
Oaks, PA 19456 Principal, Grecoventures Ltd. from Estate Investment Trust.
58 yrs. old 1999 to 2002.
- ------------------------------------------------------------------------------------------------------------------------------------
Nina Lesavoy Trustee since 2003 Partner, Cue Capital since 2002, Head 68 SEI Absolute Return Master
One Freedom of Sales Investorforce, January 2000- Fund, L.P., SEI Absolute
Valley Drive, December 2001; Global Partner Return Fund, L.P., SEI
Oaks, PA 19456 working for the CEO, Invesco Capital, Opportunity Master Fund, L.P.,
47 yrs. old January 1998-January 2000. Head of and SEI Opportunity Fund, L.P.
Sales and Client Services, Chancellor
Capital and later LGT Asset
Management, 1986-2000.
- ------------------------------------------------------------------------------------------------------------------------------------
OFFICERS
- --------
Edward D. Loughlin President since 1982 Executive Vice President and N/A N/A
One Freedom & CEO President - Asset Management Division
Valley Drive, of SEI Investments since 1993.
Oaks, PA 19456 Director and President of SIMC since
53 yrs. old 2004. Chief Executive Officer of the
Administrator and Director of the
Distributor since 2003. Executive
Vice President of SIMC,1999-2004.
Executive Vice President of the
Administrator, 1994-2003.
- ------------------------------------------------------------------------------------------------------------------------------------
Peter (Pedro) A. Controller since 2003 Director, Fund Accounting and N/A N/A
Rodriguez and Chief Administration, SEI Investments
One Freedom Financial Global Funds Services since September
Valley Drive, Officer 2002 (and 1997-2002); Vice President,
Oaks, PA 19456 Fund Administration, BlackRock
42 yrs. old Financial Management, April 2002 to
September 2002.
- ------------------------------------------------------------------------------------------------------------------------------------
Timothy D. Barto Vice since 2002 General Counsel and Secretary of N/A N/A
One Freedom President SIMC and the Administrator since 2004.
Valley Drive and Vice President and Assistant
Oaks, PA 19456 Secretary Secretary of SEI Investments since
36 yrs. old 2001. Vice President of SIMC and the
Administrator since 1999. Assistant
Secretary of SIMC, the Administrator
and the Distributor and Vice
President of the Distributor,
1999-2003.
- ------------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
44 SEI Institutional International Trust / Annual Report / September 30, 2004
- ------------------------------------------------------------------------------------------------------------------------------------
TERM OF NUMBER OF
OFFICE PORTFOLIOS
AND PRINCIPAL IN FUND
NAME POSITION(S) LENGTH OF OCCUPATION(S) COMPLEX OTHER DIRECTORSHIPS
ADDRESS, HELD WITH TIME DURING PAST OVERSEEN HELD BY
AND AGE TRUSTS SERVED(1) FIVE YEARS BY TRUSTEE(2) TRUSTEE
- ------------------------------------------------------------------------------------------------------------------------------------
OFFICERS (CONTINUED)
- --------------------
John J. Munera Vice since 2002 Global AML Compliance Officer at SEI N/A N/A
One Freedom President Investments since 2002. Middle Office
Valley Drive and Compliance Officer at SEI Investments
Oaks, PA 19456 Assistant July 2000-Dec. 2002; Supervising
41 yrs. old Secretary Examiner at Federal Reserve Bank
of Philadelphia from 1998-2000.
- ------------------------------------------------------------------------------------------------------------------------------------
Sofia A. Rosala Vice since 2004 Compliance Officer of SEI Investments N/A N/A
One Freedom President since Sept. 2001. Account and Product
Valley Drive and Consultant, SEI Private Trust
Oaks, PA 19456 Assistant Company, 1998-2001.
30 yrs. old Secretary
- ------------------------------------------------------------------------------------------------------------------------------------
Philip T.Masterson Vice since 2004 Joined SEI Investments in Aug. 2004 N/A N/A
One Freedom President General Counsel, Citco Mutual Fund
Valley Drive and Services, 2003-2004. Vice President
Oaks, PA 19456 Assistant and Associate Counsel, Oppenheimer
40 yrs. old Secretary Funds, 2001-2003. Vice President and
Assistant Counsel, Oppenheimer Funds,
1997-2001.
- ------------------------------------------------------------------------------------------------------------------------------------
John J. McCue Vice since 2004 Director of Portfolio Implementations N/A N/A
One Freedom President for SIMC since 1995. Managing
Valley Drive Director of Money Market Investments
Oaks, PA 19456 for SIMC since 2003.
41 yrs. old
- ------------------------------------------------------------------------------------------------------------------------------------
Thomas D. Jones, III Chief since 2004 Compliance Officer, Assistant N/A N/A
One Freedom Compliance Secretary of SIMC since March
Valley Drive Officer 2004. First Vice President, Merrill
Oaks, PA 19456 Lynch Investment Managers
39 yrs. old (Americas) from 1992-2004.
- ------------------------------------------------------------------------------------------------------------------------------------
1EACH TRUSTEE SHALL HOLD OFFICE DURING THE LIFETIME OF THIS TRUST UNTIL THE
ELECTION AND QUALIFICATION OF HIS OR HER SUCCESSOR, OR UNTIL HE OR SHE SOONER
DIES, RESIGNS OR IS REMOVED IN ACCORDANCE WITH THE TRUST'S DECLARATION OF
TRUST.
2THE FUND COMPLEX INCLUDES THE FOLLOWING TRUSTS: SEI ASSET ALLOCATION TRUST, SEI
DAILY INCOME TRUST, SEI INDEX FUNDS, SEI INSTITUTIONAL INVESTMENTS TRUST, SEI
INSTITUTIONAL INTERNATIONAL TRUST, SEI INSTITUTIONAL MANAGED TRUST, SEI LIQUID
ASSET TRUST AND SEI TAX EXEMPT TRUST.
- --------------------------------------------------------------------------------
SEI Institutional International Trust / Annual Report / September 30, 2004 45
SEI INSTITUTIONAL INTERNATIONAL TRUST -- SEPTEMBER 30, 2004
DISCLOSURE OF FUND EXPENSES (UNAUDITED)
All mutual funds have operating expenses. As a shareholder of a fund, your
investment is affected by these ongoing costs, which include (among others)
costs for portfolio management, administrative services, and shareholder reports
like this one. It is important for you to understand the impact of these costs
on your investment returns.
Operating expenses such as these are deducted from the fund's gross income and
directly reduce your final investment return. These expenses are expressed as a
percentage of the fund's average net assets; this percentage is known as the
fund's expense ratio.
The following examples use the expense ratio and are intended to help you
understand the ongoing costs (in dollars) of investing in your fund and to
compare these costs with those of other mutual funds. The examples are based on
an investment of $1,000 made at the beginning of the period shown and held for
the entire period.
The table on this page illustrates your fund's costs in two ways:
ACTUAL FUND RETURN. This section helps you to estimate the actual expenses after
fee waivers that your fund incurred over the period. The "Expenses Paid During
Period" column shows the actual dollar expense cost incurred by a $1,000
investment in the fund, and the "Ending Account Value" number is derived from
deducting that expense cost from the fund's gross investment return.
You can use this information, together with the actual amount you invested in
the fund, to estimate the expenses you paid over that period. Simply divide your
actual account value by $1,000 to arrive at a ratio (for example, an $8,600
account value divided by $1000 = 8.6), then multiply that ratio by the number
shown for your fund under "Expenses Paid During Period."
HYPOTHETICAL 5% RETURN. This section helps you compare your fund's costs with
those of other mutual funds. It assumes that the fund had an annual 5% return
before expenses during the year, but that the expense ratio (Column 3) for the
period is unchanged. This example is useful in making comparisons because the
Securities and Exchange Commission requires all mutual funds to make this 5%
calculation. You can assess your fund's comparative cost by comparing the
hypothetical result for your fund in the "Expense Paid During Period" column
with those that appear in the same charts in the shareholder reports for other
funds.
NOTE: Because the return is set at 5% for comparison purposes -- NOT your fund's
actual return -- the account values shown may not apply to your specific
investment.
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT ANNUALIZED PAID
VALUE VALUE EXPENSE DURING
3/31/04 9/30/04 RATIOS PERIOD*
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
- --------------------------------------------------------------------------------
ACTUAL FUND RETURN
Class A $1,000.00 $ 990.90 1.24% $6.17
Class I $1,000.00 $ 989.90 1.49% $7.41
HYPOTHETICAL 5% RETURN
Class A $1,000.00 $1,018.80 1.24% $6.26
Class I $1,000.00 $1,017.55 1.49% $7.52
- --------------------------------------------------------------------------------
EMERGING MARKETS EQUITY FUND
- --------------------------------------------------------------------------------
ACTUAL FUND RETURN
Class A $1,000.00 $ 977.10 1.95% $9.64
HYPOTHETICAL 5% RETURN
Class A $1,000.00 $1,015.25 1.95% $9.82
- --------------------------------------------------------------------------------
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT ANNUALIZED PAID
VALUE VALUE EXPENSE DURING
3/31/04 9/30/04 RATIOS PERIOD*
- --------------------------------------------------------------------------------
INTERNATIONAL FIXED INCOME FUND
- --------------------------------------------------------------------------------
ACTUAL FUND RETURN
Class A $1,000.00 $ 997.60 1.00% $4.99
HYPOTHETICAL 5% RETURN
Class A $1,000.00 $1,020.00 1.00% $5.05
- --------------------------------------------------------------------------------
EMERGING MARKETS DEBT FUND
- --------------------------------------------------------------------------------
ACTUAL FUND RETURN
Class A $1,000.00 $1,036.70 1.35% $6.87
HYPOTHETICAL 5% RETURN
Class A $1,000.00 $1,018.25 1.35% $6.81
- --------------------------------------------------------------------------------
*EXPENSES ARE EQUAL TO THE FUND'S ANNUALIZED EXPENSE RATIO MULTIPLIED BY THE
AVERAGE ACCOUNT VALUE OVER THE PERIOD, MULTIPLIED BY 183/366 (TO REFLECT THE
ONE-HALF YEAR PERIOD).
- --------------------------------------------------------------------------------
46 SEI Institutional International Trust / Annual Report / September 30, 2004
NOTICE TO SHAREHOLDERS (Unaudited)
For shareholders that do not have a September 30, 2004 taxable year end, this
notice is for informational purposes only. For shareholders with a September 30,
2004 taxable year end, please consult your tax advisor as to the pertinence of
this notice.
For the fiscal year ended September 30, 2004 the Funds of the SEI Institutional
International Trust are designating the following items with regard to
distributions paid during the year:
- --------------------------------------------------------------------------------
Qualifying
Long Term Ordinary Dividend
Capital Gains Income Income (15%
Distributions Distributions Tax Rate
Fund (Tax Basis) (Tax Basis) Total for QDI) (1)
- --------------------------------------------------------------------------------
International Equity 0% 100% 100% 86.62%
Emerging Markets Equity 0% 100% 100% 82.76%
International Fixed Income 10.17% 89.83% 100% 0%
Emerging Markets Debt 34.16% 65.84% 100% 0%
The Funds intend to pass through foreign tax credit to shareholders. For the
fiscal year ended September 30, 2004, the amount of foreign source income and
foreign tax credit are as follows:
- --------------------------------------------------------------
Foreign Tax
Foreign Source Credit Pass
Fund Income Through
- --------------------------------------------------------------
International Equity $58,468,900 $7,846,243
Emerging Markets Equity 20,037,888 3,957,544
(1)The percentage in this column represents the amount of "Qualifying Dividend
Income" as created by the Jobs and Growth Tax Relief Reconciliation Act of
2003 and is reflected as a percentage of "Ordinary Income Distributions". It
is the intention of each of the aforementioned Funds to designate the maximum
amount permitted by law.
The information reported herein may differ from the information and
distributions taxable to the shareholders for the calendar year ending
December 31, 2004. Complete information will be computed and reported in
conjunction with your 2004 Form 1099-DIV.
- --------------------------------------------------------------------------------
SEI Institutional International Trust / Annual Report / September 30, 2004 47
NOTES
NOTES
NOTES
NOTES
NOTES
SEI INSTITUTIONAL INTERNATIONAL TRUST ANNUAL REPORT SEPTEMBER 30, 2004
Robert A. Nesher, Chairman
TRUSTEES
William M. Doran
F. Wendell Gooch
James M. Storey
George J. Sullivan, Jr.
Rosemarie B. Greco
Nina Lesavoy
OFFICERS
Edward D. Loughlin
PRESIDENT AND CHIEF EXECUTIVE OFFICER
Peter (Pedro) A. Rodriguez
CONTROLLER AND CHIEF FINANCIAL OFFICER
Timothy D. Barto
VICE PRESIDENT, SECRETARY
John J. Munera
VICE PRESIDENT, ASSISTANT SECRETARY
Sofia A. Rosala
VICE PRESIDENT, ASSISTANT SECRETARY
Philip T. Masterson
VICE PRESIDENT, ASSISTANT SECRETARY
John J. McCue
VICE PRESIDENT
Thomas D. Jones, III
CHIEF COMPLIANCE OFFICER
INVESTMENT ADVISER
SEI Investments Management Corporation
ADMINISTRATOR
SEI Investments Fund Management
DISTRIBUTOR
SEI Investments Distribution Co.
LEGAL COUNSEL
Morgan, Lewis & Bockius LLP
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
PricewaterhouseCoopers 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.
FOR MORE INFORMATION CALL
1 800 DIAL SEI
(1 800 342 5734)
[BACKGROUND GRAPHIC OMITTED]
SEI INVESTMENTS
SEI INVESTMENTS DISTRIBUTION CO.
OAKS, PA 19456
1 800-DIAL-SEI (1 800 342 5734)
SEI-F-018 (09/04)
ITEM 2. CODE OF ETHICS.
The registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, comptroller or
principal accounting officer, and any person who performs a similar function.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a)(1) The registrant's board of trustees has determined that the registrant has
at least one audit committee financial expert serving on the audit committee.
(a) (2) The audit committee financial expert is George J. Sullivan, Jr. Mr.
Sullivan is an independent as defined in Form N-CSR Item 3 (a) (2)
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
For each of the last two years, the aggregate fees for which
PricewaterhouseCoopers LLP (PwC) billed the Trust for services rendered to the
Trust were as follows:
- ------------------------------------------------------------------------------------------------------------------------------
2004 2003
- ----------------- ----------------------------------------------------- ------------------------------------------------------
All fees and All fees and All other fees All fees and All fees and All other fees
services to the services to and services to services to the services to and services to
Trust that were service service Trust that were service service
pre-approved affiliates that affiliates that pre-approved affiliates that affiliates that
were did not require were did not require
pre-approved pre-approval pre-approved pre-approval
- ------ ---------- ----------------- ----------------- ----------------- ----------------- ----------------- ------------------
(a) Audit $104,520 N/A $0 $100,450 N/A $0
Fees(1)
- ------ ---------- ----------------- ----------------- ----------------- ----------------- ----------------- ------------------
(b) Audit- $0 $268,657(3) $0 $0 $0 $0
Related
Fees
- ------ ---------- ----------------- ----------------- ----------------- ----------------- ----------------- ------------------
(c) Tax Fees $0 $0 $0 $0 $0 $0
- ------ ---------- ----------------- ----------------- ----------------- ----------------- ----------------- ------------------
(d) All $0 $0 $0 $0 $0 $0
Other
Fees(2)
- ------ ---------- ----------------- ----------------- ----------------- ----------------- ----------------- ------------------
Notes:
(1) Audit fees include amounts related to the audit of the registrant's
annual financial statements and services normally provided PwC in
connection with statutory and regulatory filings.
(2) Non-audit fees include amounts related to advisory services provided
for an analysis of expense classifications for the registrant and
advisory services provided for benchmarking and best practice study
results for Mutual Fund operations.
(3) Includes fees for: examination of the design of SEI's Anti Money
Laundering Program framework; 404 Readiness Assistance for SEI; and
procedures related to the requirement to perform an independent audit
pursuant to Section 352 of the USA PATRIOT Act for the SEI Funds.
(e)(1) Not Applicable.
(e)(2) Percentage of fees billed applicable to non-audit services pursuant to
waiver of pre-approval requirement were as follows:
--------------------------------------------------------
2004 2003
----------------------- --------------- ----------------
Audit-Related Fees $0 $0
----------------------- --------------- ----------------
Tax Fees $0 $0
----------------------- --------------- ----------------
All Other Fees $0 $0
----------------------- --------------- ----------------
(f) Not Applicable.
(g) The aggregate non-audit fees and services billed by PricewaterhouseCoopers
LLP for the last two fiscal years were $0 and $0 for 2004 and 2003,
respectively.
(h) Not Applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to open-end management investment companies.
ITEM 6. SCHEDULE OF INVESTMENTS
Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to open-end management investment companies.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES
Not applicable. Effective for closed-end management investment companies for
fiscal years ending on or after December 31, 2005
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable to open-end management investment companies.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
The Trust has a standing Nominating Committee (the "Committee") currently
consisting of the Independent Trustees. The Committee is responsible for
evaluating and recommending nominees for election to the Trust's Board of
Trustees (the "Board"). Pursuant to the Committee's Charter, adopted on June 18,
2004, the Committee will review all shareholder recommendations for nominations
to fill vacancies on the Board if such recommendations are submitted in writing
and addressed to the Committee at the Trust's office.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The certifying officers, whose certifications are included herewith, have
evaluated the registrant's disclosure controls and procedures within 90 days of
the filing date of this report. Based on their evaluation, the certifying
officers have concluded that the registrant's disclosure controls and procedures
are adequately designed, and are operating effectively to ensure, that
information required to be disclosed by the registrant in the reports it files
or submits under the Securities Exchange Act of 1934 is recorded, processed,
summarized and reported within the time periods specified in the Securities and
Exchange Commission's rules and forms.
(b) There were no significant changes in the registrant's internal control over
financial reporting that occurred during the registrant's last fiscal half-year
that have materially affected, or are reasonably likely to materially affect,
the registrants internal control over financial reporting.
ITEMS 12. EXHIBITS.
(a)(1) Code of Ethics attached hereto.
(a)(2) A separate certification for the principal executive officer and the
principal financial officer of the registrant as required by Rule 30a-2(a) under
the Investment Company Act of 1940, as amended (17 CFR 270.30a-2(a)), are filed
herewith.
(b) Officer certifications as required by Rule 30a-2(b) under the Investment
Company Act of 1940, as amended (17 CFR 270.30a-2(b)) also accompany this filing
as an Exhibit.
- --------------------------------------------------------------------------------
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) SEI Institutional International Trust
By (Signature and Title)* /s/ Edward D. Loughlin
----------------------
Edward D. Loughlin
Chief Executive Officer
Date: 11/29/04
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Edward D. Loughlin
----------------------
Edward D. Loughlin
Chief Executive Officer
Date: 11/29/04
By (Signature and Title)* /s/ Peter (Pedro) A. Rodriguez
------------------------------
Peter (Pedro) A. Rodriguez
Chief Financial Officer
Date: 11/29/04
* Print the name and title of each signing officer under his or her signature.