UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM N-CSRS
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CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
INVESTMENT COMPANY ACT FILE NUMBER 811-03231
SEI LIQUID ASSET TRUST
(Exact name of registrant as specified in charter)
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c/o CT Corporation
101 Federal St.
Boston, MA 02110
(Address of principal executive offices) (Zip code)
c/o SEI Investments Company
One Freedom Valley Drive
Oaks, PA 19456
(Name and address of agent for service)
COPIES TO:
Richard W. Grant, Esq.
Morgan, Lewis & Bockius LLP
1701 Market Street
Philadelphia, PA 19103
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: 1-800-342-5734
DATE OF FISCAL YEAR END: JUNE 30, 2007
DATE OF REPORTING PERIOD: DECEMBER 31, 2006
ITEM 1. REPORTS TO STOCKHOLDERS.
[LOGO OMITTED]
SEI New ways.
New answers(R)
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SEI Liquid Asset Trust
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Semi-Annual Report as of December 31, 2006
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Prime Obligation Fund
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TABLE OF CONTENTS
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Schedule of Investments 1
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Statement of Assets and Liabilities 3
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Statement of Operations 4
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Statements of Changes in Net Assets 5
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Financial Highlights 6
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Notes to Financial Statements 7
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Disclosure of Fund Expenses 9
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The Trust files 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 are
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 the 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.
SCHEDULE OF INVESTMENTS (Unaudited)
Prime Obligation Fund
December 31, 2006
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[BAR CHART OMITTED]
Plot Points for EDGAR purposes are as follows:
SECTOR WEIGHTINGS (UNAUDITED)*:
37.6% Commercial Paper
34.3% Corporate Obligations
16.1% Repurchase Agreements
8.5% Certificates of Deposit
3.5% Insurance Funding Agreement
*Percentages based on total investments.
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Face Amount Value
Description ($ Thousands) ($ Thousands)
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COMMERCIAL PAPER+ -- 37.7%
FINANCIAL SERVICES (B) -- 37.7%
Carrera Capital Finance LLC
5.395%, 01/08/07 $10,000 $ 9,989
Citibank Credit Card Issuance Trust
5.347%, 02/14/07 10,000 9,936
Concord Minutemen Capital Corporation
5.367%, 01/10/07 20,000 19,973
Crown Point Capital Company
5.357%, 01/10/07 15,000 14,980
Deer Valley Funding LLC
5.343%, 01/23/07 25,000 24,919
Georgetown Funding Company
5.343%, 01/17/07 25,000 24,941
5.389%, 01/24/07 15,000 14,949
Giro Balanced Funding Corporation
5.280%, 02/20/07 25,000 24,817
Klio II Funding Corporation
5.342%, 01/22/07 25,000 24,922
Klio III Funding Corporation
5.390%, 01/26/07 15,000 14,944
Lexington Parker Capital
5.359%, 01/12/07 15,000 14,976
Manhattan Asset Funding Company
5.316%, 01/31/07 25,000 24,890
Millstone Funding Corporation
5.319%, 01/18/07 10,000 9,975
Ormond Quay Funding LLC
5.329%, 01/16/07 15,000 14,967
Rhineland Funding Capital Corporation
5.374%, 01/05/07 15,000 14,991
5.413%, 04/05/07 10,000 9,861
Sunbelt Funding Corporation
5.338%, 01/19/07 16,051 16,009
5.339%, 02/09/07 15,000 14,914
Versailles LLC
5.366%, 01/08/07 15,000 14,984
White Pine Finance LLC
5.322%, 02/01/07 10,000 10,000
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Total Commercial Paper
(Cost $345,937) ($ Thousands) 329,937
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Face Amount Value
Description ($ Thousands) ($ Thousands)
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CORPORATE OBLIGATIONS (A) -- 34.4%
BANKS -- 5.2%
Comerica Bank
5.350%, 01/12/07 $25,000 $ 25,000
National City Bank Cleveland
5.315%, 03/19/07 20,000 19,998
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44,998
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FINANCIAL SERVICES -- 23.5%
Atlas Capital Funding Corporation MTN
5.340%, 01/16/07 25,000 25,000
5.340%, 01/25/07 10,000 10,000
Carrera Capital Finance
5.330%, 01/29/07 20,000 20,000
5.340%, 12/12/07 10,000 10,000
Cullinan Finance Corporation MTN,
Ser 2 (B)
5.320%, 03/15/07 20,000 20,000
K2 LLC
5.320%, 01/24/07 7,000 6,999
Liquid Funding Ltd. (B)
5.400%, 01/22/07 25,000 24,999
Ormond Quay Funding LLC
5.310%, 01/31/07 12,500 12,497
Rhineland Funding Capital Corporation+
5.350%, 02/07/07 16,000 16,000
Stanfield Victoria Funding LLC
5.325%, 03/26/07 10,000 9,998
Tango Finance Corporation (B)
5.380%, 03/05/07 25,000 25,004
White Pine Finance LLC MTN (B)
5.337%, 01/25/07 25,000 24,999
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205,496
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INSURANCE -- 2.3%
ASIF Global Finance XXXI (B)
5.370%, 02/23/07 20,000 20,001
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INVESTMENT BANKERS/BROKER DEALERS -- 3.4%
Goldman Sachs Group Incorporated
5.410%, 01/13/07 20,000 20,000
Goldman Sachs Group Incorporated
MTN, Ser 1
5.510%, 01/09/07 10,000 10,000
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30,000
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Total Corporate Obligations
(Cost $284,495) ($ Thousands) 300,495
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SEI Liquid Asset Trust / Semi-Annual Report / December 31, 2006 1
SCHEDULE OF INVESTMENTS (Unaudited)
Prime Obligation Fund (Concluded)
December 31, 2006
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Face Amount Value
Description ($ Thousands) ($ Thousands)
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CERTIFICATES OF DEPOSIT -- 8.6%
FINANCIAL SERVICES -- 8.6%
Brahms Funding Corporation
5.346%, 01/10/07 $25,000 $ 24,967
5.334%, 01/25/07 10,000 9,965
East-Fleet Finance LLC (A) (B)
5.327%, 01/12/07 10,000 10,000
KKR Atlantic Funding Trust
5.384%, 01/26/07 20,000 19,925
Ormond Quay Funding LLC (A)
5.305%, 01/12/07 10,000 10,000
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Total Certificates of Deposit
(Cost $74,857) ($ Thousands) 74,857
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INSURANCE FUNDING AGREEMENT (A) (C) -- 3.4%
INSURANCE -- 3.4%
MetLife Funding Agreement
5.444%, 01/15/07 30,000 30,000
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Total Insurance Funding Agreement
(Cost $30,000) ($ Thousands) 30,000
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REPURCHASE AGREEMENTS (D) -- 16.1%
BNP Paribas
5.270%, dated 12/29/06, to be
repurchased on 01/03/07, repurchase
price $77,146,147 (collateralized
by various U.S. Government
Obligations, ranging in par value
$2,660,000-$27,872,000, 4.250%-
5.125%, 08/08/07-05/15/09; with
total market value $78,645,299) 77,101 77,101
Deutsche Bank
5.250%, dated 12/29/06, to be
repurchased on 01/03/07, repurchase
price $64,037,333 (collateralized
by various U.S. Government
Obligations, ranging in par value
$18,749,000-$38,781,000, 4.500%-
6.625%, 01/15/14-11/15/30; with
total market value $65,280,883) 64,000 64,000
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Total Repurchase Agreements
(Cost $141,101) ($ Thousands) 141,101
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Total Investments -- 100.2%
(Cost $876,390) ($ Thousands) $876,390
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Description
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Percentages are based on Total Net Assets of $874,607.
+ The rate reported is the effective yield at time of purchase.
(A) Variable rate instrument. The rate reflected on the Statement of Net Assets
is the rate in effect on December 31, 2006. The date shown is the earlier of
the reset date or demand date.
(B) Securities sold within 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". These securities have been determined to be liquid under
guidelines established by the Board of Trustees.
(C) Securities considered illiquid. The total value of such securities as of
December 31, 2006 was $30,000 ($ Thousands) and represented 3.4% of Net
Assets.
(D) Tri-Party Repurchase Agreement
LLC -- Limited Liability Company
MTN -- Medium Term Note
Ser -- Series
The accompanying notes are an integral part of the financial statements.
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2 SEI Liquid Asset Trust / Semi-Annual Report / December 31, 2006
Statement of Assets and Liabilities ($ Thousands)
as of December 31, 2006 (Unaudited)
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PRIME OBLIGATION
FUND
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ASSETS:
Investments at value (Cost $735,289) $735,289
Repurchase Agreement (Cost $141,101) 141,101
Accrued income 2,180
Cash 1
Prepaid expenses 22
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Total Assets 878,593
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LIABILITIES:
Payable for Income Distribution 3,577
Payable due to Administrator 257
Payable due to Investment Adviser 31
Payable for Trustees' Fee 2
Accrued expenses 119
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Total Liabilities 3,986
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Net Assets $874,607
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NET ASSETS:
Paid-in Capital $874,664
Accumulated net realized loss on investments (57)
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Net Assets $874,607
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Net Asset Value, Offering and Redemption Price Per Share --
Class A Shares ($874,607 / 874,664) $1.00
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The accompanying notes are an integral part of the financial statements.
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SEI Liquid Asset Trust / Semi-Annual Report / December 31, 2006 3
Statement of Operations ($ Thousands)
For the six month period ended December 31, 2006 (Unaudited)
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PRIME OBLIGATION
FUND
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INVESTMENT INCOME:
Interest Income $22,310
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EXPENSES:
Administration Fees 1,746
Shareholder Servicing Fees -- Class A 1,040
Investment Advisory Fees 215
Trustees' Fees 13
Printing Fees 72
Professional Fees 47
Registration Fees 18
Custodian/Wire Agent Fees 18
Insurance Expense 2
Other Expenses 7
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Total Expenses 3,178
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Less, Waiver of:
Administration Fees (310)
Shareholder Servicing Fees -- Class A (1,040)
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Net Expenses 1,828
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NET INVESTMENT INCOME 20,482
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Net Realized Loss on Investments (10)
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NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $20,472
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The accompanying notes are an integral part of the financial statements.
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4 SEI Liquid Asset Trust / Semi-Annual Report / December 31, 2006
Statement of Changes in Net Assets ($ Thousands)
For the six month period ended December 31, 2006 (Unaudited) and the year ended
June 30, 2006
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PRIME OBLIGATION
FUND
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07/01/06 to 07/01/05
12/31/06 6/30/06
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OPERATIONS:
Net Investment Income $ 20,482 $ 27,790
Net Realized Loss on Investments (10) (3)
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Net Increase in Net Assets Resulting
from Operations 20,472 27,787
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DIVIDENDS FROM:
Net Investment Income:
Class A (20,482) (27,787)
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Total Dividends (20,482) (27,787)
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CAPITAL SHARE TRANSACTIONS (ALL AT $1.00 PER SHARE):
Class A:
Proceeds from Shares Issued 2,643,901 5,455,955
Reinvestment of Dividends 17,979 22,105
Cost of Shares Redeemed (2,642,860) (5,321,419)
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Increase in Net Assets Derived
from Capital Share Transactions 19,020 156,641
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Net Increase in Net Assets 19,010 156,641
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NET ASSETS:
BEGINNING OF PERIOD 855,597 698,956
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END OF PERIOD $ 874,607 $ 855,597
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Undistributed Net Investment Income $ -- $ --
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Amounts designated as "--" are $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
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SEI Liquid Asset Trust / Semi-Annual Report / December 31, 2006 5
Financial Highlights
For the six month period ended December 31, 2006 (Unaudited) and the years ended
June 30,
For a share outstanding throughout each year
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Net Realized
and
Net Asset Unrealized Total Dividends
Value, Net Gains from from Net Net Asset
Beginning Investment on Investment Investment Total Value, End
of Period Income Securities Operations Income Dividends of Period
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PRIME OBLIGATION FUND
CLASS A:
2006* $1.00 $0.02 $-- $0.02 $(0.02) $(0.02) $1.00
2006 1.00 0.04 -- 0.04 (0.04) (0.04) 1.00
2005 1.00 0.02 -- 0.02 (0.02) (0.02) 1.00
2004 1.00 0.01 -- 0.01 (0.01) (0.01) 1.00
2003 1.00 0.01 -- 0.01 (0.01) (0.01) 1.00
2002 1.00 0.02 -- 0.02 (0.02) (0.02) 1.00
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Ratio of
Expenses Ratio of Net
Ratio of to Average Investment
Net Assets Expenses Net Assets Income
Total End of Period to Average (Excluding to Average
Return+ ($ Thousands) Net Assets Waivers) Net Assets
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PRIME OBLIGATION FUND
CLASS A:
2006* 2.47% $ 874,607 0.44% 0.76% 4.93%
2006 3.88 855,597 0.44 0.76 3.82
2005 1.81 698,956 0.44 0.77 1.77
2004 0.68 887,109 0.44 0.77 0.68
2003 1.12 1,050,594 0.44 0.76 1.11
2002 2.08 1,026,880 0.44 0.75 2.05
* For the six month period ended December 31, 2006. All ratios have 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.
Amounts designated as "--" are $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
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6 SEI Liquid Asset Trust / Semi-Annual Report / December 31, 2006
Notes to Financial Statements
December 31, 2006
1. ORGANIZATION
SEI Liquid Asset Trust (the "Trust") was organized as a Massachusetts business
trust under a Declaration of Trust dated July 20, 1981.
The Trust is registered under the Investment Company Act of 1940, as amended, as
a diversified, open-end management investment company with one fund: the Prime
Obligation Fund (the "Fund"). The Trust is registered to offer Class A shares of
the Fund. A description of the Fund's investment objectives, policies, and
strategies are provided in the prospectus.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by the
Trust.
USE OF ESTIMATES -- The preparation of financial statements in conformity with
generally accepted accounting principles in the United States of America
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported amounts of
increases and decreases in net assets from operations during the reporting
period. Actual results could differ from those estimates.
SECURITY VALUATION -- Investment securities are stated at amortized cost, which
approximates market value. Under this valuation method, purchase discounts and
premiums are accreted and amortized ratably to maturity.
REPURCHASE AGREEMENTS -- The Fund invests in tri-party repurchase agreements.
Securities held as collateral for tri-party repurchase agreements are maintained
in a segregated account by the broker's custodian bank. Provisions of the
agreements and the Trust's policies ensure that the market value of the
collateral, including accrued interest thereon, is sufficient to cover interest
and principal in the event of default by the counterparty. 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.
EXPENSES -- Expenses that are directly related to the Fund are charged directly
to the Fund.
SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions are
accounted for on the trade date. Costs used in determining realized gains and
losses on the sale of investment securities are on the basis of specific
identification. Interest income is recognized using the accrual basis of
accounting.
All amortization is calculated using the straight line method over the holding
period of the security. Amortization of premiums and accretion of discounts are
included in interest income.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- Dividends from net investment
income are declared on a daily basis and are payable on the first business day
of the following month. Any net realized capital gains of the Fund are
distributed to the shareholders of the Fund annually.
3. AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES
ADMINISTRATION AND TRANSFER AGENCY AGREEMENT -- SEI Investments Global Funds
Services (the "Administrator") provides administrative services to the Trust for
an annual fee, which is calculated daily and paid monthly, of .42% of the
average daily net assets of the Fund.
The Administrator has contractually agreed to waive fees and to reimburse
expenses, through June 30, 2007, in order to keep total operating expenses, net
of SEI Investments Management Corporation ("SIMC") and SEI Investments
Distribution Co.'s (the "Distributor") fee waivers, from exceeding .44% of the
average daily net assets of the Fund. The Distributor is a wholly-owned and
operated subsidiary of SEI Investments Company and a registered broker-dealer.
DISTRIBUTION AGREEMENT -- The Distributor acts as the distributor of the shares
of the Trust under a Distribution Agreement. The Trust has adopted a shareholder
servicing plan for its Class A shares (the "Class A Plan") pursuant to which a
shareholder servicing fee of up to .25% of the average daily net assets
attributable to Class A shares will be paid to the Distributor. Under the Class
A Plan the Distributor may perform, or may compensate other service providers
for performing, certain shareholder and administrative services. The Distributor
has waived, on a voluntary basis, all of its shareholder servicing fee.
Under the Class A Plan, the Distributor may retain as a profit any difference
between the fee it receives and the amount it pays to third parties.
Certain officers and/or trustees of the Trust are also officers and/or directors
of the Administrator or SIMC. Compensation of officers and affiliated trustees
of the Trust is paid by the Administrator and/or SIMC.
U.S. Bank, N.A. which is a Trust shareholder, acts as custodian and wire agent
for the Trust.
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SEI Liquid Asset Trust / Semi-Annual Report / December 31, 2006 7
Notes to Financial Statements (Concluded)
4. INVESTMENT ADVISORY AGREEMENT
SIMC serves as the Fund's investment adviser and "manager of managers" under an
investment advisory agreement. For its services, SIMC receives an annual fee
equal to .075% of the Trust's average daily net assets up to $500 million and
..02% of such net assets in excess of $500 million.
Columbia Management Advisors, LLC ("Columbia"), serves as the Fund's investment
sub-adviser under an investment sub-advisory agreement. Columbia is paid by
SIMC. SIMC compensates Columbia out of the fee it receives from the Fund.
5. FEDERAL INCOME TAXES
It is the Fund's intention to continue to qualify as a regulated investment
company under Subchapter M of the Internal Revenue Code and distribute all of
its taxable income. Accordingly, no provision for Federal income taxes is
required. The timing and characterization of certain income and capital gains
distributions are determined annually in accordance with Federal tax regulations
which may differ from accounting principles generally accepted in the United
States of America. As a result, net investment income (loss) and net realized
gain (loss) on investment transactions for the reporting period may differ from
distributions during such period. These book/tax differences may be temporary or
permanent in nature. To the extent these differences are permanent, they are
charged or credited to paid-in-capital, undistributed net investment income or
accumulated net realized gain, as appropriate, in the period that the
differences arise.
The tax character of dividends paid to Class A shareholders during the years
ended June 30, 2006 and June 30, 2005 were as follows ($ Thousands):
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Ordinary Income
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2006 $27,787
2005 14,107
As of June 30, 2006, the components of accumulated losses on a tax basis were as
follows ($ Thousands):
Capital Loss Carryforwards:
Expiring in 2011 $ (39)
Expiring in 2013 (3)
Expiring in 2014 (1)
Undistributed Ordinary Income 3,149
Post-October Losses (4)
Other Temporary Differences (3,149)
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Total Accumulated Losses $ (47)
=======
Post-October losses represent losses realized on investment transactions from
November 1, 2005 through June 30, 2006, that, in accordance with Federal income
tax regulations, the Fund defers and treats as having arisen in the following
fiscal year. For Federal income tax purposes, capital loss carryforwards
represent realized losses of the Fund that may be carried forward for a maximum
period of eight years and applied against future capital gains.
The cost basis of securities for Federal income tax purposes is equal to the
cost basis used for financial reporting purposes.
6. NEW ACCOUNTING PRONOUNCEMENTS
In June 2006, the Financial Accounting Standards Board (FASB) issued FASB
Interpretation 48 (FIN 48), "Accounting for Uncertainty in Income Taxes." This
standard defines the threshold for recognizing the benefits of tax-return
positions in the financial statements as "more-likely-than-not" to be sustained
by the taxing authority and requires measurement of a tax position meeting the
more-likely-than-not criterion, based on the largest benefit that is more than
50 percent likely to be realized. FIN 48 is effective as of the beginning of the
first fiscal year beginning after December 15, 2006. At adoption, companies must
adjust their financial statements to reflect only those tax positions that are
more-likely-than-not to be sustained as of the adoption date. As of December 31,
2006, the Fund does not believe the impact of the adoption of FIN 48 will be
material to the financial statements.
In September 2006, the FASB issued Statement on Financial Accounting Standards
("SFAS") No. 157, "Fair Value Measurements". This standard establishes a single
authoritative definition of fair value, sets out a framework for measuring fair
value and requires additional disclosures about fair value measurements. SFAS
No. 157 applies to fair value measurements already required or permitted by
existing standards. SFAS No. 157 is effective for financial statements issued
for fiscal years beginning after November 15, 2007 and interim periods within
those fiscal years. The changes to current generally accepted accounting
principles from the application of this Statement relate to the definition of
fair value, the methods used to measure fair value, and the expanded disclosures
about fair value measurements. As of December 31, 2006, the Fund does not
believe the adoption of SFAS No. 157 will impact the amounts reported in the
financial statements; however, additional disclosures may be required about the
inputs used to develop the measurements and the effect of certain of the
measurements reported in the financial statements for a fiscal period.
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8 SEI Liquid Asset Trust / Semi-Annual Report / December 31, 2006
Disclosure of Fund Expenses (Unaudited)
All mutual funds have operating expenses. As a shareholder of a mutual 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 a mutual fund's gross income
and directly reduce your final investment return. These expenses are expressed
as a percentage of a mutual fund's average net assets; this percentage is known
as a mutual 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 below illustrates your Fund's costs in two ways:
O 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
ending account value by $1,000 to arrive at a ratio (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply that ratio by the number
shown for your Fund under "Expenses Paid During Period."
O 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 "Expenses Paid During Period" column
with those that appear in the same charts in the shareholder reports for other
mutual 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
7/1/06 12/31/06 RATIOS PERIOD*
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PRIME OBLIGATION FUND -- CLASS A
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ACTUAL FUND RETURN $1,000.00 $1,024.70 0.44% $2.25
HYPOTHETICAL 5% RETURN 1,000.00 1,022.99 0.44 2.24
* Expenses are equal to the Fund's annualized expense ratio multiplied by the
average account value over the period, multiplied by 184/365 (to reflect
one-half year period shown).
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SEI Liquid Asset Trust / Semi-Annual Report / December 31, 2006 9
Notes
Notes
Notes
SEI Liquid Asset Trust Semi-Annual Report December 31, 2006
Robert A. Nesher, CHAIRMAN
TRUSTEES
William M. Doran
F. Wendell Gooch
James M. Storey
George J. Sullivan, Jr.
Rosemarie B. Greco
Nina Lesavoy
James M. Williams
OFFICERS
Robert A. Nesher
PRESIDENT AND CHIEF EXECUTIVE OFFICER
Stephen F. Panner
CONTROLLER AND CHIEF FINANCIAL OFFICER
Russell Emery
CHIEF COMPLIANCE OFFICER
Timothy D. Barto
VICE PRESIDENT, SECRETARY
Sofia A. Rosala
VICE PRESIDENT, ASSISTANT SECRETARY
James Ndiaye
VICE PRESIDENT, ASSISTANT SECRETARY
Michael T. Pang
VICE PRESIDENT, ASSISTANT SECRETARY
John J. McCue
VICE PRESIDENT
Nicole Welch
ANTI-MONEY LAUNDERING COMPLIANCE OFFICER
INVESTMENT ADVISER
SEI Investments Management Corporation
ADMINISTRATOR
SEI Investments Global Funds Services
DISTRIBUTOR
SEI Investments Distribution Co.
LEGAL COUNSEL
Morgan, Lewis & Bockius LLP
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
KPMG LLP
This 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 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)
[LOGO OMITTED]
SEI New ways.
New answers(R)
SEI Investments Distribution Co.
Oaks, PA 19456 1.800.DIAL.SEI (1.800.342.5734)
SEI-F-103 (12/06)
ITEM 2. CODE OF ETHICS.
Not applicable for semi-annual report..
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable for semi-annual report..
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable for semi-annual report.
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 to open-end management investment companies.
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.
Not applicable for semi-annual report.
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 registrant's 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.
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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 Liquid Asset Trust
By (Signature and Title)* /s/ Robert A. Nesher
---------------------------
Robert A. Nesher
President & CEO
Date: February 21, 2007
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/ Robert A. Nesher
---------------------------
Robert A. Nesher
President & CEO
Date: February 21, 2007
By (Signature and Title)* /s/ Stephen F. Panner
---------------------------
Stephen F. Panner
Controller & CFO
Date: February 21, 2007
* Print the name and title of each signing officer under his or her signature.