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 811-03231
SEI LIQUID ASSET TRUST
(Exact name of registrant as specified in charter)
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SEI Investments
One Freedom Valley Drive
Oaks, PA 19456
(Address of principal executive offices) (Zip code)
SEI Investments
One Freedom Valley Drive
Oaks, PA 19456
CT Corporation
101 Federal St.
Boston, MA 02110
(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, 2008
DATE OF REPORTING PERIOD: JUNE 30, 2008
ITEM 1. REPORTS TO STOCKHOLDERS.
(SEI LOGO) New Ways.
New Answers.(R)
SEI Liquid Asset Trust
Annual Report as of June 30, 2008
Prime Obligation Fund
TABLE OF CONTENTS
Letter to Shareholders 1
Schedule of Investments 2
Statement of Assets and Liabilities 4
Statement of Operations 5
Statements of Changes in Net Assets 6
Financial Highlights 7
Notes to Financial Statements 8
Report of Independent Registered Public Accounting Firm 12
Trustees and Officers of the Trust 13
Disclosure of Fund Expenses 16
Board of Trustees Considerations in Approving the Advisory and
Sub-Advisory Agreements 17
Notice to Shareholders 19
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.
SEI LIQUID ASSET TRUST -- JUNE 30, 2008
To Our Shareholders:
For the fiscal year ended on June 30, 2008, the fixed income markets experienced
turbulent conditions as escalating delinquencies and defaults on sub-prime
mortgages triggered a flight to safety into U.S. Treasury obligations. The macro
economy was also under pressure as manufacturing activity, consumer spending,
and employment all showed weakness. In response, the Federal Reserve (Fed) took
aggressive measures to promote market liquidity and ensure financial stability.
During the 12-month period, the Fed cut the Fed funds target rate from 5.25% to
2.00%. In addition, the Fed lowered the discount rate by 4.00% and created two
new lending facilities (the Treasury Securities Lending Facility and the Primary
Dealer Credit Facility), which for the first time provided direct financing to
primary dealers. Globally, foreign central banks also joined the Fed in
providing liquidity to the markets through emergency lending facilities.
During the period, 3-month Treasury yields fell from 4.86% to 1.73%, while the
3-month Libor yield declined from 5.36% to 2.78%. Investor risk aversion pushed
asset-backed commercial paper (ABCP) spreads significantly wider, while
unsecured corporate CP widened in sympathy, but to a lesser degree. Yield
spreads on certain bank and financial issuers rose to such a degree that the
programs withdrew from the market. Several Structured Investment Vehicles
(SIVs), a subset of ABCP, had difficulty in rolling their paper when market
conditions caused the market value of the underlying collateral to decline.
From an issuance perspective, Fed data shows that commercial paper outstanding
declined sharply during the period. Total commercial paper outstanding dropped
by about $400 billion, mainly due to the decline in ABCP outstandings. In spite
of the negative headlines, money market funds continued to receive record cash
inflows. By the end of the period, total assets of U.S. money market funds
exceeded $3.4 trillion.
The Prime Obligation Fund (the "Fund") has been impacted by the deterioration in
the credit markets, in that the Fund has exposure to SIVs. SEI and the Fund's
sub-advisor, Columbia Management Advisors, LLC, a Bank of America subsidiary,
are actively monitoring market events, and are committed to delivering the core
investment goals of the Fund, namely preservation of principal and liquidity.
Sincerely,
/s/ Robert A. Nesher
Robert A. Nesher
President
SEI Liquid Asset Trust / Annual Report / June 30, 2008 1
SCHEDULE OF INVESTMENTS
Prime Obligation Fund
June 30, 2008
(BAR CHART OMITTED)
SECTOR WEIGHTINGS (UNAUDITED)*:
Commercial Paper 70.2%
Repurchase Agreements 11.5%
U.S. Government Agency Obligations 5.1%
Certificates of Deposit 4.9%
Corporate Obligations 4.7%
Insurance Funding Agreement 2.6%
Capital Suport Agreement 1.0%
* Percentages based on total investments.
Face Amount Value
Description ($ Thousands) ($ Thousands)
- ----------- ------------- -------------
COMMERCIAL PAPER (D) (F) -- 70.2%
Amstel Funding Corporation
2.666%, 07/10/08 $ 30,000 $ 29,980
2.706%, 07/16/08 18,000 17,980
2.807%, 07/18/08 10,000 9,987
Archer-Daniels-Midland
2.107%, 07/08/08 29,367 29,355
AT&T, Inc.
2.110%, 07/30/08 13,100 13,078
Cancara Asset Securities LLC
2.872%, 07/07/08 35,000 34,983
2.820%, 07/10/08 25,000 24,982
Ciesco LLC
2.709%, 09/09/08 40,000 39,791
Clipper Receivables Corporation LLC
2.864%, 08/21/08 26,000 25,895
2.982%, 09/16/08 18,000 17,886
Edison Asset
2.623%, 08/08/08 25,000 24,931
Fairway Finance Corporation
2.783%, 08/22/08 15,000 14,940
FCAR Owner Trust I
3.023%, 07/15/08 48,000 47,944
FCAR Owner Trust II
3.038%, 07/28/08 10,000 9,977
GE Capital Corporation
2.854%, 09/22/08 15,000 14,902
2.854%, 09/23/08 14,000 13,908
Gemini Securitization Corporation
2.688%, 09/02/08 40,000 39,813
Goldman Sachs Corporation
2.658%, 08/28/08 42,719 42,537
Govco LLC
2.616%, 08/11/08 15,000 14,956
Grampian Funding LLC
2.785%, 07/11/08 35,000 34,973
2.720%, 09/08/08 20,000 19,897
Issuer Entity LLC (A) (B) (G) (H) (I) (M)
2.627%, 10/30/08 13,843 8,238
JPMorgan Chase & Company
2.658%, 07/16/08 2,000 1,998
2.516%, 08/11/08 36,000 35,898
Face Amount Value
Description ($ Thousands) ($ Thousands)
- ----------- ------------- -------------
Jupiter Securitization Corporation LLC
2.720%, 07/07/08 $ 25,000 $ 24,989
Old Line Funding LLC
2.782%, 08/15/08 25,000 24,913
Scaldis Capital LLC
2.896%, 07/02/08 35,000 34,997
2.783%, 08/18/08 15,000 14,945
Solitaire Funding LLC
2.850%, 07/11/08 25,000 24,980
2.800%, 09/04/08 30,000 29,849
Surrey Funding Corporation
2.865%, 08/20/08 18,000 17,929
Tulip Funding Corporation
2.655%, 07/15/08 18,000 17,981
Variable Funding Capital Corporation
2.719%, 07/02/08 30,000 29,998
2.587%, 08/18/08 22,000 21,925
Wickersham Issuer Entity
(A) (B) (G) (H) (I) (N)
2.963%, 05/13/09 18,968 16,349
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Total Commercial Paper
(Cost $832,179) ($ Thousands) 827,684
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CORPORATE OBLIGATIONS (A) -- 4.7%
Asscher Finance MTN
5.550%, 07/16/08 (C) (G) (H) 6,590 6,589
Axon Financial Fund LLC MTN
(B) (C) (G) (H) (I) (L)
2.718%, 05/06/09 15,000 12,150
Cheyne Finance MTN
(B) (C) (G) (H) (I) (J)
2.063%, 11/17/08 8,168 5,718
JPMorgan Chase MTN
2.448%, 09/11/08 15,000 15,000
Stanfield Victoria Funding MTN
(B) (C) (G) (H) (I) (K)
2.070%, 04/21/09 20,000 16,400
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Total Corporate Obligations
(Cost $64,756) ($ Thousands) 55,857
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U.S. GOVERNMENT AGENCY OBLIGATION -- 5.1%
FNMA DN
2.460%, 09/24/08 60,000 59,652
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Total U.S. Government Agency Obligation
(Cost $59,652) ($ Thousands) 59,652
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2 SEI Liquid Asset Trust / Annual Report / June 30, 2008
Face Amount Value
Description ($ Thousands) ($ Thousands)
- ----------- ------------- -------------
CERTIFICATE OF DEPOSIT (D) -- 4.9%
Wells Fargo
2.360%, 08/22/08 $ 58,000 $ 58,000
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Total Certificate of Deposit
(Cost $58,000) ($ Thousands) 58,000
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INSURANCE FUNDING AGREEMENT -- 2.5%
MetLife Funding Agreement
2.783%, 07/11/08 (A) (B) (I) 30,000 30,000
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Total Insurance Funding Agreement
(Cost $30,000) ($ Thousands) 30,000
----------
REPURCHASE AGREEMENT (E) -- 11.5%
Deutche Bank Securities
2.500%, dated 06/30/08, to be repurchased
on 07/01/08, repurchase price $135,751,427
(collateralized by various FHLB/FHLMC/FNMA
obligations, ranging in par value
$38,020,000- $50,000,000, 4.200%-4.600%,
06/04/12-06/24/13, with a total market
value $138,460,235) 135,742 135,742
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Total Repurchase Agreement
(Cost $135,742) ($ Thousands) 135,742
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CAPITAL SUPPORT AGREEMENT (G) -- 1.0%
SEI Capital Support Agreement 11,476 11,476
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Total Capital Support Agreement
(Cost $0) 11,476
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Total Investments -- 99.9%
(Cost $1,180,329) ($ Thousands) $1,178,411
==========
Percentages are based on Net Assets of $1,179,542 ($ Thousands).
(A) Floating Rate Security. The rate reflected on the Schedule of Investments
is the rate in effect on June 30, 2008. The demand and interest rate reset
features give this security a shorter effective maturity date.
(B) Securities considered illiquid. The total value of such securities as of
June 30, 2008 was $88,855 ($ Thousands) and represented 7.53% of Net
Assets.
(C) 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."
(D) Securities are held in connection with a letter of credit issued by a major
bank.
(E) Tri-Party Repurchase Agreement.
(F) The rate reported is the effective yield at time of purchase.
(G) The fund has entered into a Capital Support Agreement ("Agreement") with
SEI Investments Company ("SEI") which provides that SEI will contribute
capital to the fund, up to a specified maximum amount, in the event that
the Fund realizes a loss on any of these securities and such realized loss
causes the Fund's net asset value as calculated using fair value to drop
below $0.995. As of June 30, 2008, the fair value of the Agreement was
$11,476 ($ Thousands).
(H) The value shown is the market value as of June 30, 2008. Please refer to
Note 8 for the amortized cost value as of June 30, 2008.
(I) These securities are considered restricted. The total value of such
securities as of June 30, 2008 was $88,855 ($ Thousands) and represented
7.53% of Net Assets.
(J) On October 17, 2008, due to deterioration in the market value of the assets
of Cheyne Finance, LLC ("Cheyne"), provisions in the organizational
documents of Cheyne were triggered that caused the notes issued by Cheyne
to become immediately due and payable. Since no payments have been
received, the Cheyne notes are in default.
(K) On January 18, 2008, due to deterioration in the market value of the assets
of Stanfield Victoria Finance, LLC ("Victoria"), provisions in the
organizational documents of Victoria were triggered that caused the notes
issued by Victoria to become immediately due and payable. Since no payments
have been received, the Victoria notes are in default.
(L) On November 21, 2007, due to deterioration in the market value of the
assets of Axon Financial Funding, LLC ("Axon"), provisions in the
organizational documents of Axon were triggered that caused the notes
issued by Axon to become immediately due and payable. Since no payments
have been received, the Axon notes are in default.
(M) Notes issued by Issuer Entity LLC were received by the Fund in connection
with a restructuring of Ottimo Funding Ltd. ("Ottimo") on November 2, 2007.
The Fund previously held notes issued by Ottimo, which defaulted prior to
the restructuring.
(N) Notes issued by Wickersham Issuer Entity LLC were received by the Fund in
connection with a restructuring of Thornburg Mortgage Capital, Inc.
(Thornburg) on May 16, 2008. The Fund previously held notes issued by
Thornburg, which defaulted prior to restructuring.
DN -- Discount Note
FHLB -- Federal Home Loan Bank
FHLMC -- Federal Home Loan Mortgage Corporation
FNMA -- Federal National Mortgage Association
LLC -- Limited Liability Company
MTN -- Medium Term Note
The accompanying notes are an integral part of the financial statements.
SEI Liquid Asset Trust / Annual Report / June 30, 2008 3
Statement of Assets and Liabilities ($ Thousands)
as of June 30, 2008
PRIME OBLIGATION
FUND
----------------
ASSETS:
Investments at Market Value (Cost $1,044,587) $1,031,193
Affiliated Investment at Value 11,476
Repurchase Agreement (Cost $135,742) 135,742
Cash 994
Accrued Income 864
Prepaid expenses 15
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Total Assets 1,180,284
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LIABILITIES:
Payable for Income Distribution 247
Payable due to Administrator 338
Payable due to Investment Adviser 42
Chief Compliance Officer Fees Payable 2
Trustees Fees Payable 1
Accrued expenses 112
----------
Total Liabilities 742
----------
Net Assets $1,179,542
----------
NET ASSETS CONSIST OF:
Paid-in Capital $1,185,227
Distributions in excess of Net Investment Income 44
Accumulated net realized loss on Investments (3,810)
Net Unrealized Depreciation on Investments (1,919)
----------
Net Assets $1,179,542
----------
Net Asset Value, Offering and Redemption Price Per Share
-- Class A Shares
($1,179,542 / 1,185,228) $ 1.00
----------
The accompanying notes are an integral part of the financial statements.
4 SEI Liquid Asset Trust / Annual Report / June 30, 2008
Statement of Operations ($ Thousands)
For the year ended June 30, 2008
PRIME OBLIGATION
FUND
----------------
INVESTMENT INCOME:
Interest Income $ 45,395
--------
EXPENSES:
Administration Fees 4,542
Shareholder Servicing Fees -- Class A 2,700
Investment Advisory Fees 492
Trustees' Fees 16
Chief Compliance Officer Fees 4
Printing Fees 188
Professional Fees 52
Registration Fees 27
Custodian/Wire Agent Fees 20
Insurance Expense 8
Other Expenses 16
--------
Total Expenses 8,065
--------
Less, Waiver of:
Administration Fees (607)
Shareholder Servicing Fees -- Class A (2,700)
--------
Net Expenses 4,758
--------
NET INVESTMENT INCOME 40,637
========
Net Realized Loss on Investments (3,930)
Net Change in Unrealized Appreciation (Depreciation) on/from:
Investments (13,395)
Affiliated Investment 11,476
--------
Net Realized and Unrealized Loss on Investments (5,849)
--------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $ 34,788
========
The accompanying notes are an integral part of the financial statements.
SEI Liquid Asset Trust / Annual Report / June 30, 2008 5
Statements of Changes in Net Assets ($ Thousands)
For the years ended June 30,
PRIME OBLIGATION
FUND
------------------------
2008 2007
----------- -----------
OPERATIONS:
Net Investment Income $ 40,637 $ 41,318
Net Realized Loss on Investments (3,930) (8)
Net Change in Unrealized Depreciation on
Investments and Affiliated Investment (1,919) --
----------- -----------
Net Increase in Net Assets Resulting
from Operations 34,788 41,310
----------- -----------
DIVIDENDS FROM:
Net Investment Income:
Class A (40,418) (41,318)
----------- -----------
Total Dividends (40,418) (41,318)
----------- -----------
CAPITAL SHARE TRANSACTIONS (ALL AT $1.00 PER SHARE):
Class A:
Proceeds from Shares Issued 6,435,951 5,702,025
Reinvestment of Dividends 35,770 39,448
Cost of Shares Redeemed (6,092,079) (5,791,532)
----------- -----------
Increase (Decrease) in Net Assets Derived
from Capital Share Transactions 379,642 (50,059)
----------- -----------
Net Increase (Decrease) in Net Assets 374,012 (50,067)
----------- -----------
NET ASSETS:
BEGINNING OF YEAR $ 805,530 $ 855,597
----------- -----------
END OF YEAR $ 1,179,542 $ 805,530
=========== ===========
Distributions in excess of Net Investment Income $ 44 $ --
=========== ===========
Amounts designated as "--" are $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
6 SEI Liquid Asset Trust / Annual Report / June 30, 2008
Financial Highlights
For the years ended June 30,
For a share outstanding throughout each year
Net Realized
and
Net Asset Unrealized Total Dividends
Value, Net Gains from from Net
Beginning Investment on Investment Investment Total
of Period Income Securities Operations Income Dividends
--------- ---------- ------------ ---------- ---------- ---------
PRIME OBLIGATION FUND
CLASS A:
2008 $1.00 $0.04 $-- $0.04 $(0.04) $(0.04)
2007 1.00 0.05 -- 0.05 (0.05) (0.05)
2006 1.00 0.04 -- 0.04 (0.04) (0.04)
2005 1.00 0.02 -- 0.02 (0.02) (0.02)
2004 1.00 0.01 -- 0.01 (0.01) (0.01)
Ratio of
Expenses Ratio of
Ratio of to Average Investment
Net Assets Net Assets Expenses Net Assets Income
Value, End Total End of Period to Average (Excluding to Average
of Period Return+ ($ Thousands) Net Assets Waivers) Net Assets
---------- ------- ------------- ---------- ---------- ----------
PRIME OBLIGATION FUND
CLASS A:
2008 $1.00 3.96% $1,179,542 0.44% 0.75% 3.76%
2007 1.00 5.05 805,530 0.44 0.76 4.94
2006 1.00 3.88 855,597 0.44 0.76 3.82
2005 1.00 1.81 698,956 0.44 0.77 1.77
2004 1.00 0.68 887,109 0.44 0.77 0.68
+ 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.
SEI Liquid Asset Trust / Annual Report / June 30, 2008 7
Notes to Financial Statements
June 30, 2008
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
U.S. generally accepted accounting principles 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, 2008, 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.
The services provided by the Chief Compliance Officer ("CCO") and his staff,
whom are employees of the Administrator, are paid for by the Trust as incurred.
The services include regulatory oversight of the Trust's advisors, sub-advisors
and service providers as required by SEC regulations. The CCO's services have
been approved by and are reviewed by the Board.
U.S. Bank, N.A. which is a Trust shareholder, acts as custodian and wire agent
for the Trust.
CAPITAL SUPPORT AGREEMENT -- The Fund has entered into a Capital Support
Agreement with SEI Investments Company. Please see Note 8 for more information.
8 SEI Liquid Asset Trust / Annual Report / June 30, 2008
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 U.S. generally accepted accounting principles. 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. These
reclassifications, which have no impact on net asset value of the Fund, are
primarily attributable to reclass of distributions and tax treatment of paydown
gain (loss) on mortgage and asset-backed securities. Accordingly, the following
permanent differences have been reclassified to/from the following accounts
during the year ended June 30, 2008:
Undistributed Net Accumulated Net
Investment Income Realized Gain (Loss)
- ----------------- --------------------
$(174,508) $174,508
The tax character of dividends paid to Class A shareholders during the years
ended June 30, 2008 and June 30, 2007 were as follows ($ Thousands):
Ordinary
Income
----------
2008 $40,418
2007 $41,318
As of June 30, 2008, the components of accumulated losses on a tax basis were as
follows ($ Thousands):
Undistributed Ordinary Income $ 1,861
Capital Loss Carryforwards (48)
Partnership Adjustment (3,205)
Post-October Losses (558)
Unrealized Depreciation (1,600)
Other Temporary Differences (2,135)
-------
Total Accumulated Losses $(5,685)
=======
Post-October losses represent losses realized on investment transactions from
November 1, 2007 through June 30, 2008, 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 were as follows:
Expiring in 2011 $(39)
Expiring in 2013 (3)
Expiring in 2014 (1)
Expiring in 2015 (4)
Expiring in 2016 (1)
----
Total Capital Loss Carryforwards $(48)
====
The Federal tax cost and aggregate gross unrealized appreciation and
depreciation on investments held by the Fund at June 30, 2008 were as follows:
Net
Federal Appreciated Depreciated Unrealized
Tax Cost Securities Securities Depreciation
($ Thousands) ($ Thousands) ($ Thousands) ($ Thousands)
------------- ------------- ------------- -------------
Prime Obligation
Fund $1,180,011 $12,025 $13,625 $ (1,600)
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 had
to adjust their financial statements to reflect only those tax positions that
are more-likely-than-not to be sustained as of the adoption date. FIN 48 is
applied to all open tax years as of the effective date. Based on its analysis,
management has determined that the adoption of FIN 48 did not have a material
impact to the Fund's financial statements' upon adoption.
SEI Liquid Asset Trust / Annual Report / June 30, 2008 9
Notes to Financial Statements (Concluded)
June 30, 2008
6. NEW ACCOUNTING PRONOUNCEMENTS
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 June 30, 2008, 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.
7. RESTRUCTURING FUND
At a meeting held on June 29, 2007, the Board approved the liquidation of the
Trust in connection with a limited restructuring of some SEI Funds, in which
case it was planned that nearly all of the Prime Obligation Fund's shareholders
would become shareholders of a Prime Obligation Fund that is being established
within another trust in the SEI Funds Complex. However, in light of recent
volatility in the money markets, the liquidation has been postponed. The adviser
and the Board will continue to monitor the situation to determine when and if
the restructuring and the related liquidation of the Trust should proceed.
Unless and until such liquidation occurs, the Fund will continue to operate
normally.
Accounting rules require that financial statements for entities in liquidation,
or for which liquidation appears imminent, be prepared on a liquidation basis of
accounting. Liquidation basis of accounting requires the Fund to record assets
and liabilities at values expected to be achieved in liquidation. A change to
the liquidation basis of accounting would not have a material effect on the
Fund's carrying value of assets and liabilities nor its operations.
8. CAPITAL SUPPORT AGREEMENT
On December 3, 2007, the Fund entered into a Capital Support Agreement, as
amended with SEI Investments Company ("SEI"), which is the parent company of
SIMC. The Capital Support Agreement requires SEI to commit capital to the Fund,
subject to the aggregate limit of $1.5 million, if the Fund realizes payments or
sales proceeds from specified securities ("Eligible Notes") held by the Fund
which are less than the amortized cost of such securities and such loss causes
the Fund's mark-to-market net asset value to drop below $0.9950. The Eligible
Notes held in the Fund as of June 30, 2008 are presented in the footnotes on the
Schedule of Investments. On June 18, 2008, the Agreement was amended to increase
the maximum contribution amount to $12.5 million. Upon the sale or other
disposition of an Eligible Note, the amount of required capital commitment would
be the least of the following amounts: (i) the amount, if any, by which the
amortized cost of the Eligible Note exceeds the amount realized from the sale or
other disposition of the security; (ii) the amount, if any, necessary to restore
the net asset value per share of the Fund to $0.9950, or (iii) the remaining
amount of the aggregate limit of the Capital Support Agreement, taking into
account all prior contributions. SEI's obligations under the Agreement are
supported by a Letter of Credit issued by a bank having a First Tier credit
rating. The Fund will draw on the Letter of Credit in the event that SEI fails
to make a cash contribution when due under the Agreement.
The Fund will sell the Eligible Notes (i) promptly following any change in the
Letter of Credit provider's short term credit ratings such that the Letter of
Credit provider's obligations no longer qualify as First Tier Securities as
defined in paragraph (a)(12) of Rule 2a-7, or (ii) on the business day
immediately prior to the termination date of the Agreement; provided that the
Fund is not required to complete any such sale if the amount the Fund expects to
receive would not result in the payment of a Capital Contribution, or, with
respect to an event described in (i) above, if the Affiliate substitutes an
obligation or credit support that satisfies the requirement of a First Tier
Security within fifteen (15) calendar days from the occurrence of such event
and, during such 15 day period, the Letter of Credit provider's obligations
continue to qualify as Second Tier Securities under paragraph (a)(22) of Rule
2a-7. The termination date of the Agreement is December 1, 2008, although that
date may be extended upon agreement of SEI and the Fund, subject to the prior
approval of the staff of the U.S. Securities and Exchange Commission.
10 SEI Liquid Asset Trust / Annual Report / June 30, 2008
The following table shows the Eligible Notes and their amortized cost and fair
market value as of June 30, 2008.
Unrealized
Face Amortized Market (Depreciation)/
Amount Cost Value Appreciation
Description (000) (000) (000) (000)
- ----------- ------ --------- ------- ---------------
Asscher Finance MTN
5.550%, 07/16/08 6,590 $ 6,590 $ 6,589 $ (1)
Axon Financial Funding
LLC MTN
2.718%, 05/06/09 15,000 15,000 12,150 (2,850)
Cheyne Finance MTN
2.063%, 11/17/08 8,168 8,168 5,718 (2,450)
Issuer Entity LLC
2.627%, 10/30/08 13,843 13,283 8,238 (5,045)
Stanfield Victoria
Funding MTN
2.070%, 04/21/09 20,000 19,999 16,400 (3,599)
Wickersham Issuer
Entity
2.963%, 05/13/09 18,968 15,799 16,349 550
------ ------- ------- --------
Totals 82,569 $78,839 $65,444 $(13,395)
====== ======= ======= ========
9. SUBSEQUENT EVENTS
SIV Portfolio PLC (formerly Cheyne Finance PLC) (the "Cheyne SIV") is a
structured investment vehicle that defaulted on its notes in October, 2007.
Receivers were appointed with the responsibility to liquidate the assets of the
structure and deliver the proceeds to the noteholders. As an alternative to
accepting the proceeds from the auction of the underlying collateral in the
current market environment, the receivers retained an investment banking firm to
create a structure that would enable electing noteholders to exchange their
notes in the Cheyne SIV for pass-through notes in a new vehicle (Gryphon Funding
Limited) that would acquire and hold a pro rata portion of the underlying
collateral of the Cheyne SIV. The liquidation/restructuring of the Cheyne SIV
took place in July 2008. In connection with that process, the Fund elected to
exchange its Cheyne SIV notes for notes issued by Gryphon Funding Limited. This
exchange settled in the Fund's account on July 23, 2008.
On July 30, 2008, the Capital Support Agreement was amended to increase the
maximum contribution amount to $20 million. As of August 26, 2008, the Capital
Support Agreement is valued at $17,912,100 for the Fund.
SEI Liquid Asset Trust / Annual Report / June 30, 2008 11
SEI LIQUID ASSET TRUST -- JUNE 30, 2008
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and Shareholders of
SEI Liquid Asset Trust:
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of SEI Liquid Asset Trust, comprising the Prime
Obligation Fund (the "Fund"), as of June 30, 2008, and the related statement of
operations for the year then ended, the statements of changes in net assets for
each of the years in the two-year period then ended and the financial highlights
for each of the years in the three-year period then ended. These financial
statements and financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits. The financial
highlights for each of the years in the two-year period ended June 30, 2005,
were audited by other auditors, whose report dated August 19, 2005 expressed an
unqualified opinion thereon.
We conducted our audits 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 and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities owned as of June 30, 2008, by correspondence with the custodians and
brokers or other appropriate auditing procedures. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
fund comprising SEI Liquid Asset Trust as of June 30, 2008, and the results of
its operations for the year then ended, the changes in its net assets for each
of the years in the two-year period then ended, and the financial highlights for
each of the years in the three-year period then ended, in conformity with U.S.
generally accepted accounting principles.
/s/ KPMG LLP
Philadelphia, Pennsylvania
August 26, 2008
12 SEI Liquid Asset Trust / Annual Report / June 30, 2008
TRUSTEES AND OFFICERS OF THE TRUST (Unaudited)
The following information is current as of June 27, 2008.
Set forth below are the names, addresses, ages, position with the Trust, Term of
Office and Length of Time Served, 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 IN FUND
POSITION(S) LENGTH OF COMPLEX
HELD WITH TIME PRINCIPAL OCCUPATION(S) OVERSEEN BY OTHER DIRECTORSHIPS
NAME ADDRESS, AND AGE TRUSTS SERVED(1) DURING PAST FIVE YEARS TRUSTEE(2) HELD BY TRUSTEE
- --------------------- ------------- ---------- ----------------------------- ----------- ---------------------------------
INTERESTED TRUSTEES
Robert A. Nesher Chairman of since 1982 Currently performs various 80 Trustee of The Advisors' Inner
One Freedom the Board of services on behalf of SEI Circle Fund, The Advisors' Inner
Valley Drive, Trustees* Investments for which Mr. Circle Fund II, Bishop Street
Oaks, PA 19456 Nesher is compensated. Funds, Director of SEI Global
61 yrs. old Master Fund, plc, SEI Global
Assets Fund, plc, SEI Global
Investments Fund, plc, SEI
Investments Global, Limited, SEI
Investments -- Global Fund
Services, Limited, SEI
Investments (Europe), Limited,
SEI Investments -- Unit Trust
Management (UK), Limited, SEI
Global Nominee Ltd., SEI
Opportunity Fund, L.P., SEI
Multi-Strategy Funds plc and SEI
Structured Credit Fund, L.P.
William M. Doran Trustee* since 1982 Self-employed consultant 80 Trustee of The Advisors' Inner
1701 Market Street since 2003. Partner, Morgan, Circle Fund, The Advisors' Inner
Philadelphia, PA Lewis & Bockius LLP (law Circle Fund II, Bishop Street
19103 firm) from 1976 to 2003, Funds, Director of SEI since
68 yrs. old counsel to the Trust, SEI, 1974. Director of the Distributor
SIMC, the Administrator and since 2003. Director of SEI
the Distributor. Secretary Investments -- Global Fund
of SEI since 1978. Services, Limited, SEI
Investments Global, Limited, SEI
Investments (Europe), Limited,
SEI Investments (Asia), Limited
and SEI Asset Korea Co., Ltd.
TRUSTEES
James M. Storey Trustee since 1995 Attorney, sole practitioner 80 Trustee of The Advisors' Inner
One Freedom since 1994. Partner, Dechert Circle Fund, The Advisors' Inner
Valley Drive, Price & Rhoads, September Circle Fund II, Bishop Street
Oaks, PA 19456 1987- December 1993. Funds, Massachusetts Health and
77 yrs. old Education Tax- Exempt Trust, and
U.S. Charitable Gift Trust.
* MESSRS. NESHER AND DORAN ARE TRUSTEES WHO MAY BE DEEMED AS "INTERESTED"
PERSONS OF THE TRUST AS THAT TERM IS DEFINED IN THE 1940 ACT BY VIRTUE OF
THEIR AFFILIATION WITH SIMC AND THE TRUST'S DISTRIBUTOR.
(1) EACH 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.
(2) THE FUND COMPLEX INCLUDES THE FOLLOWING TRUSTS: SEI ASSET ALLOCATION TRUST,
SEI DAILY INCOME TRUST, SEI INSTITUTIONAL INVESTMENTS TRUST, SEI
INSTITUTIONAL INTERNATIONAL TRUST, SEI INSTITUTIONAL MANAGED TRUST, SEI
LIQUID ASSET TRUST, SEI TAX EXEMPT TRUST, AND SEI ALPHA STRATEGY
PORTFOLIOS, L.P.
SEI Liquid Asset Trust / Annual Report / June 30, 2008 13
TRUSTEES AND OFFICERS OF THE TRUST (Unaudited) (Concluded)
TERM OF NUMBER OF
OFFICE PORTFOLIOS
AND IN FUND
POSITION(S) LENGTH OF COMPLEX
HELD WITH TIME PRINCIPAL OCCUPATION(S) OVERSEEN BY OTHER DIRECTORSHIPS
NAME ADDRESS, AND AGE TRUSTS SERVED(1) DURING PAST FIVE YEARS TRUSTEE(2) HELD BY TRUSTEE
- --------------------- ------------- ---------- ----------------------------- ----------- ---------------------------------
TRUSTEES (CONTINUED)
George J. Sullivan, Jr. Trustee since 1996 Self-Employed Consultant, 80 Trustee of The Advisors' Inner
One Freedom Newfound Consultants Inc. Circle Fund, The Advisors' Inner
Valley Drive since April 1997. Circle Fund II, Bishop Street
Oaks, PA 19456 Funds, State Street Navigator
65 yrs. old Securities Lending Trust, SEI
Opportunity Fund, L.P. and SEI
Structured Credit Fund L.P.
Rosemarie B. Greco Trustee since 1999 Director, Governor's Office 80 Director, Sonoco, Inc.; Director,
One Freedom of Health Care Reform, Exelon Corporation; Trustee,
Valley Drive Commonwealth of Pennsylvania Pennsylvania Real Estate
Oaks, PA 19456 since 2003. Founder and Investment Trust.
62 yrs. old Principal, Grecoventures
Ltd. from 1999 to 2002.
Nina Lesavoy Trustee since 2003 Founder and Managing 80 Director of SEI Opportunity Fund,
One Freedom Director, Avec Capital since L.P. and SEI Structured Credit
Valley Drive, 2008. Managing Director, Cue Fund L.P.
Oaks, PA 19456 Capital from 2002- March
51 yrs. old 2008.
James M. Williams Trustee since 2004 Vice President and Chief 80 Trustee/Director of Ariel Mutual
One Freedom Investment Officer, J. Paul Funds, SEI Opportunity Fund, L.P.
Valley Drive, Getty Trust, Non-Profit and SEI Structured Credit Fund
Oaks, PA 19456 Foundation for Visual Arts, L.P.
60 yrs. old since December 2002.
President, Harbor Capital
Advisors and Harbor Mutual
Funds, 2000-2002.
Mitchell A. Johnson Trustee since 2007 Private Investor since 1994. Trustee of The Advisors' Inner
One Freedom Circle Fund, The Advisors' Inner
Valley Drive, Circle Fund II and Bishop Street
Oaks, PA 19456 Funds.
66 yrs. old
Hubert L. Harris, Jr. Trustee since 2008 Retired since December 2005. 80 Director of Colonial BancGroup,
One Freedom Chief Executive Officer and Inc. and Chair of the Board of
Valley Drive, Chair of the Board of Trustees, Georgia Tech
Oaks, PA 19456 Directors, AMVESCAP Foundation, Inc. (nonprofit
65 yrs. old Retirement, Inc., corporation).
1997-December 2005.
Chief Executive Officer,
INVESCO North America,
September 2003-December 2005.
OFFICERS
Robert A. Nesher President & since 2005 Currently performs various N/A N/A
One Freedom CEO services on behalf of SEI
Valley Drive, for which Mr. Nesher is
Oaks, PA 19456 compensated.
61 yrs. old
Stephen F. Panner Controller since 2005 Fund Accounting Director of N/A N/A
One Freedom and Chief the Administrator since
Valley Drive, Financial 2005. Fund Administration
Oaks, PA 19456 Officer Manager, Old Mutual Fund
38 yrs. old Services, 2000-2005. Chief
Financial Officer,
Controller and Treasurer,
PBHG Funds and PBHG
Insurance Series Fund,
2004-2005. Assistant
Treasurer, PBHG Funds and
PBHG Insurance Series Fund,
2000-2004. Assistant
Treasurer, Old Mutual
Advisors Fund, 2004-2005.
14 SEI Liquid Asset Trust / Annual Report / June 30, 2008
TERM OF NUMBER OF
OFFICE PORTFOLIOS
AND IN FUND
POSITION(S) LENGTH OF COMPLEX
HELD WITH TIME PRINCIPAL OCCUPATION(S) OVERSEEN BY OTHER DIRECTORSHIPS
NAME ADDRESS, AND AGE TRUSTS SERVED(1) DURING PAST FIVE YEARS TRUSTEE(2) HELD BY TRUSTEE
- --------------------- ------------- ---------- ----------------------------- ----------- ---------------------------------
OFFICERS (CONTINUED)
Russell Emery Chief since 2006 Chief Compliance Officer of N/A N/A
One Freedom Compliance SEI Opportunity Fund, L.P.,
Valley Drive Officer SEI Structured Credit Fund,
Oaks, PA 19456 L.P., SEI Institutional
45 yrs. old Managed Trust, SEI Asset
Allocation Trust, SEI
Institutional
International Trust,
SEI Liquid Asset
Trust, SEI Daily
Income Trust, SEI Tax
Exempt Trust, SEI
Institutional
Investments Trust,
SEI Alpha Strategy
Portfolios, L.P., The
Advisors' Inner
Circle Fund, The
Advisors' Inner
Circle Fund II and
Bishop Street Funds
since March 2006.
Director of
Investment Product
Management and
Development of SIMC,
February 2003-March
2006. Senior
Investment
Analyst--Equity Team
of SEI, March
2000-February 2003.
Timothy D. Barto Vice since 2002 General Counsel, Vice N/A N/A
One Freedom President President and Secretary of
Valley Drive and Secretary SIMC and the Administrator
Oaks, PA 19456 since 2004. Vice President
40 yrs. old and Assistant Secretary of
SEI since 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.
James Ndiaye Vice since 2005 Vice President and Assistant N/A N/A
One Freedom President Secretary of SIMC since
Valley Drive and 2005. Vice President,
Oaks, PA 19456 Assistant Deutsche Asset Management
39 yrs. old Secretary (2003-2004). Associate,
Morgan, Lewis & Bockius LLP
(2000-2003).
Michael T. Pang Vice since 2005 Vice President and Assistant N/A N/A
One Freedom President Secretary of SIMC since
Valley Drive and 2005. Counsel, Caledonian
Oaks, PA 19456 Assistant Bank & Trust's Mutual Funds
36 yrs. old Secretary Group (2004). Counsel,
Permal Asset Management
(2001-2004).
Aaron Buser Vice since 2008 Vice President and Assistant N/A N/A
One Freedom President Secretary of SIMC since
Valley Drive and 2007. Associate at Stark &
Oaks, PA 19456 Assistant Stark (2004-2007). Associate
37 yrs. old Secretary at Flaster/Greenberg, P.C.
(2000-2004).
John J. McCue Vice since 2004 Director of Portfolio N/A N/A
One Freedom President Implementations for SIMC
Valley Drive since 1995. Managing
Oaks, PA 19456 Director of Money Market
45 yrs. old Investments for SIMC since
2003.
Andrew S. Decker Anti-Money since 2008 Compliance Officer and N/A N/A
One Freedom Laundering Product Manager, SEI
Valley Drive Compliance 2005-2008. Vice President,
Oaks, PA 19456 Officer Old Mutual Capital,
44 yrs. old 2000-2005.
(1) EACH 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.
(2) THE FUND COMPLEX INCLUDES THE FOLLOWING TRUSTS: SEI ASSET ALLOCATION TRUST,
SEI DAILY INCOME TRUST, SEI INSTITUTIONAL INVESTMENTS TRUST, SEI
INSTITUTIONAL INTERNATIONAL TRUST, SEI INSTITUTIONAL MANAGED TRUST, SEI
LIQUID ASSET TRUST, SEI TAX EXEMPT TRUST, AND SEI ALPHA STRATEGY
PORTFOLIOS, L.P.
SEI Liquid Asset Trust / Annual Report / June 30, 2008 15
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:
- - 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."
- - 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
1/1/08 6/30/08 RATIOS PERIOD*
--------- --------- ---------- --------
PRIME OBLIGATION FUND -- CLASS A
ACTUAL FUND RETURN $1,000.00 $1,019.89 0.44% $2.20
HYPOTHETICAL 5% RETURN 1,000.00 1,022.68 0.44 2.21
* Expenses are equal to the Fund's annualized expense ratio multiplied by the
average account value over the period, multiplied by 182/366 (to reflect
the one-half year period shown).
16 SEI Liquid Asset Trust / Annual Report / June 30, 2008
NOTES TO FINANCIAL STATEMENTS
Board of Trustees Considerations in Approving the Advisory and Sub-Advisory
Agreements (Unaudited)
SEI Liquid Asset Trust (the "Trust") and SEI Investments Management Corporation
("SIMC") have entered into an investment advisory agreement (the "Advisory
Agreement"). Pursuant to the Advisory Agreement, SIMC oversees the investment
advisory services provided to the series of the Trust (the "Funds") and may
manage the cash portion of the Funds' assets. Pursuant to separate sub-advisory
agreements (the "Sub-Advisory Agreements" and, together with the Advisory
Agreement, the "Investment Advisory Agreements") with SIMC, and under the
supervision of SIMC and the Trust's Board of Trustees (the "Board"), the
Sub-Advisers are responsible for the day-to-day investment management of all or
a discrete portion of the assets of the Funds. The Sub-Advisers also are
responsible for managing their employees who provide services to these Funds.
The Sub-Advisers are selected based primarily upon the research and
recommendations of SIMC, which evaluates quantitatively and qualitatively the
Sub-Advisers' skills and investment results in managing assets for specific
asset classes, investment styles and strategies.
The Investment Company Act of 1940, as amended (the "1940 Act") requires that
the initial approval of, as well as the continuation of, the Funds' Investment
Advisory Agreements must be specifically approved: (i) by the vote of the Board
of Trustees or by a vote of the shareholders of the Funds; and (ii) by the vote
of a majority of the Trustees who are not parties to the Investment Advisory
Agreements or "interested persons" of any party (the "Independent Trustees"),
cast in person at a meeting called for the purpose of voting on such approval.
In connection with their consideration of such approvals, the Funds' Trustees
must request and evaluate, and SIMC and the Sub-Advisers are required to
furnish, such information as may be reasonably necessary to evaluate the terms
of the Investment Advisory Agreements. In addition, the Securities and Exchange
Commission ("SEC") takes the position that, as part of their fiduciary duties
with respect to a mutual fund's fees, mutual fund boards are required to
evaluate the material factors applicable to a decision to approve an Investment
Advisory Agreement.
Consistent with these responsibilities, the Trust's Board of Trustees calls and
holds meetings each year that are dedicated to considering whether to renew the
Investment Advisory Agreements between the Trust and SIMC and SIMC and the
Sub-Advisers with respect to the Funds of the Trust. In preparation for these
meetings, the Board requests and reviews a wide variety of materials provided by
SIMC and the Sub-Advisers, including information about SIMC's and the
Sub-Advisers' affiliates, personnel and operations. The Board also receives
extensive data provided by third parties. This information is in addition to the
detailed information about the Funds that the Board reviews during the course of
each year, including information that relates to Fund operations and Fund
performance. The Trustees also receive a memorandum from Fund counsel and
independent counsel to the Independent Trustees regarding the responsibilities
of Trustees in connection with their consideration of whether to approve the
Trust's Investment Advisory Agreements. Finally, the Independent Trustees
receive advice from independent counsel to the Independent Trustees, meet in
executive session outside the presence of Fund management and participate in
question and answer sessions with representatives of SIMC and the Sub-Advisers.
Specifically, the Board requested and received written materials from SIMC and
the Sub-Advisers regarding: (a) the quality of SIMC's and the Sub-Advisers'
investment management and other services; (b) SIMC's and the Sub-Advisers'
investment management personnel; (c) SIMC's and the Sub-Advisers' operations and
financial condition; (d) SIMC's and the Sub-Advisers' brokerage practices
(including any soft dollar arrangements) and investment strategies; (e) the
level of the advisory fees that SIMC and the Sub-Advisers charge the Funds
compared with the fees each charge to comparable mutual funds; (f) the Funds'
overall fees and operating expenses compared with similar mutual funds; (g) the
level of SIMC's and the Sub-Advisers' profitability from their Fund-related
operations; (h) SIMC's and the Sub-Advisers' compliance systems; (i) SIMC's and
the Sub-Advisers' policies on and compliance procedures for personal securities
transactions; (j) SIMC's and the Sub-Advisers' reputation, expertise and
resources in domestic and/or international financial markets; and (k) the Funds'
performance compared with similar mutual funds.
At the March 12-13, 2008 meetings of the Board of Trustees, the Trustees,
including a majority of the Independent Trustees, approved the Investment
Advisory Agreements and approved the selection of SIMC and the Sub-Advisers to
act in their respective capacities for the Funds. The Board's approval was based
on its consideration and evaluation of a variety of specific factors discussed
at the meetings and at prior meetings, including:
- - the nature, extent and quality of the services provided to the Funds under
the Investment Advisory Agreements, including the resources of SIMC and the
Sub-Advisers and their affiliates dedicated to the Funds;
- - the Funds' investment performance and how it compared to that of other
comparable mutual funds;
- - the Funds' expenses under each Investment Advisory Agreement and how those
expenses compared to those of other comparable mutual funds;
SEI Liquid Asset Trust / Annual Report / June 30, 2008 17
Board of Trustees Considerations in Approving the Advisory and Sub-Advisory
Agreements (Unaudited) (Concluded)
- - the profitability of SIMC and the Sub-Advisers and their affiliates with
respect to the Funds, including both direct and indirect benefits accruing
to SIMC and the Sub-Advisers and their affiliates; and
- - the extent to which economies of scale would be realized as the Funds grow
and whether fee levels in the Investment Advisory Agreements reflect those
economies of scale for the benefit of Fund investors.
NATURE, EXTENT AND QUALITY OF SERVICES. The Board of Trustees considered the
nature, extent and quality of the services provided by SIMC and the Sub-Advisers
to the Funds and the resources of SIMC and the Sub-Advisers and their affiliates
dedicated to the Funds. In this regard, the Trustees evaluated, among other
things, SIMC's and the Sub-Advisers' personnel, experience, track record and
compliance program. The Trustees found the level of SIMC's professional staff
and culture of compliance satisfactory. Following evaluation, the Board
concluded that, within the context of its full deliberations, the nature, extent
and quality of services provided by SIMC and the Sub-Advisers to the Funds and
the resources of SIMC and the Sub-Advisers and their affiliates dedicated to the
Funds supported renewal of the Investment Advisory Agreements.
FUND PERFORMANCE. The Board of Trustees considered Fund performance in
determining whether to renew the Investment Advisory Agreements. Specifically,
the Trustees considered the Funds' performance relative to their peer groups and
appropriate indices/benchmarks, in light of total return, yield and market
trends. As part of this review, the Trustees considered the composition of each
peer group and selection criteria. In evaluating performance, the Trustees
considered both market risk and shareholder risk expectations for the Funds. The
Trustees found Fund performance satisfactory, and where performance was below
the benchmark, the Trustees were satisfied that appropriate steps were being
taken. Following evaluation, the Board concluded that, within the context of its
full deliberations, the performance of the Funds supported renewal of the
Investment Advisory Agreements.
FUND EXPENSES. With respect to the Funds' expenses under the Investment Advisory
Agreements, the Trustees considered the rate of compensation called for by the
Investment Advisory Agreements and the Funds' net operating expense ratio in
comparison to those of other comparable mutual funds. The Trustees also
considered information about average expense ratios of comparable mutual funds
in the Funds' respective peer groups. The Trustees further considered the fact
that the comparative fee analysis either showed that the various fees were below
average or that there was a reasonable basis for the fee level. Finally, the
Trustees considered the effects of SIMC's voluntary waiver of management and
other fees and the Sub-Advisers' fees to prevent total Fund expenses from
exceeding a specified cap and that SIMC and the Sub-Advisers, through waivers,
have maintained the Funds' net operating expenses at competitive levels for
their respective distribution channels. Following evaluation, the Board
concluded that, within the context of its full deliberations, the expenses of
the Funds are reasonable and supported renewal of the Investment Advisory
Agreements.
PROFITABILITY. With regard to profitability, the Trustees considered all
compensation flowing to SIMC and the Sub-Adviser and their affiliates, directly
or indirectly. The Trustees considered whether the varied levels of compensation
and profitability under the Investment Advisory Agreements and other service
agreements were reasonable and justified in light of the quality of all services
rendered to the Funds by SIMC and the Sub-Advisers and their affiliates. The
Trustees found that profitability was reasonable and that the margin was not
increasing despite growth in assets. When considering the profitability of the
Sub-Advisers, the Board took into account the fact that the Sub-Advisers are
compensated by SIMC, and not by the Funds directly, and such compensation with
respect to any Sub-Adviser reflects an arms-length negotiation between the
Sub-Adviser and SIMC. Based on this evaluation, the Board concluded that, within
the context of its full deliberations, the profitability of SIMC and the
Sub-Advisers are reasonable and supported renewal of the Investment Advisory
Agreements.
ECONOMIES OF SCALE. The Trustees considered the existence of any economies of
scale and whether those were passed along to the Funds' shareholders through a
graduated investment advisory fee schedule or other means, including any fee
waivers by SIMC and its affiliates. Based on this evaluation, the Board
concluded that, within the context of its full deliberations, the Funds obtain
reasonable benefit from economies of scale.
Based on the Trustees' deliberation and their evaluation of the information
described above, the Board, including all of the Independent Trustees,
unanimously approved the continuation of the Investment Advisory Agreements and
concluded that the compensation under the Investment Advisory Agreements is fair
and reasonable in light of such services and expenses and such other matters as
the Trustees considered to be relevant in the exercise of their reasonable
judgment. In the course of their deliberations, the Trustees did not identify
any particular information that was all-important or controlling.
18 SEI Liquid Asset Trust / Annual Report / June 30, 2008
Notice to Shareholders (Unaudited)
For shareholders that do not have a June 30, 2008 taxable year end, this notice
is for informational purposes only. For shareholders with a June 30, 2008
taxable year end, please consult your tax adviser as to the pertinence of this
notice.
For the fiscal year ended June 30, 2008, the Fund is designating long term and
qualifying dividend income with regard to distributions paid during the year as
follows:
(C)
(A) (B) DIVIDENDS
LONG TERM ORDINARY QUALIFYING
CAPITAL GAINS INCOME TOTAL FOR CORPORATE
DISTRIBUTIONS DISTRIBUTIONS DISTRIBUTIONS DIVIDENDS REC.
(TAX BASIS) (TAX BASIS) (TAX BASIS) DEDUCTION (1)
- ------------- ------------- ------------- --------------
0% 100% 100% 0%
(D)
QUALIFYING (E) INTEREST SHORT-TERM
DIVIDEND U.S. GOVERNMENT RELATED CAPITAL GAIN
INCOME (2) INTEREST (3) DIVIDEND (4) DIVIDENDS (5)
- ---------- --------------- ------------ -------------
0% 0.53% 100% 0%
(1) Qualifying dividends represent dividends which qualify for the corporate
dividends received deduction.
(2) 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.
(3) "U.S. Government Interest" represents the amount of interest that was
derived from direct U.S. Government obligations and distributed during the
fiscal year. This amount is reflected as a percentage of "Total Ordinary
Income Distributions." Generally, interest from direct U.S. Government
obligations is exempt from state income tax. However, for shareholders of
the SEI Liquid Asset Trust - Prime Obligation Fund who are residents of
California, Connecticut or New York, the statutory threshold requirements
were or were not satisfied to permit exemption of these amounts from state
income.
(4) The percentage in this column represents the amount of "Qualifying Interest
Income" as created by the American Jobs Creation Act of 2004 and is
reflected as a percentage of net investment income distributions that is
exempt from U.S. withholding tax when paid to foreign investors. This law
is currently expected to expire for taxable years beginning after January
1, 2008.
(5) The percentage in this column represents the amount of "Qualifying
Short-Term Capital Gain" as created by the American Jobs Creation Act of
2004 and is reflected as a percentage of short-term capital gain
distributions that is exempt from U.S. withholding tax when paid to foreign
investors. This law is currently expected to expire for taxable years
beginning after January 1, 2008.
Items (A) and (B) are based on the percentage of the Fund's total distribution.
Items (C) and (D) are based on the percentage of ordinary income distributions
of the Fund.
Item (E) is based on the percentage of gross income of the Fund.
Please consult your tax adviser for proper treatment of this information. This
notification should be kept with your permanent tax records.
SEI Liquid Asset Trust / Annual Report / June 30, 2008 19
Notes
SEI LIQUID ASSET TRUST ANNUAL REPORT JUNE 30, 2008
Robert A. Nesher, CHAIRMAN
TRUSTEES
William M. Doran
James M. Storey
George J. Sullivan, Jr.
Rosemarie B. Greco
Nina Lesavoy
James M. Williams
Mitchell A. Johnson
Hubert L. Harris, Jr.
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
Aaron Buser
VICE PRESIDENT, ASSISTANT SECRETARY
John J. McCue
VICE PRESIDENT
Andrew S. Decker
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)
(SEI LOGO) New Ways.
New Answers.(R)
SEI Investments Distribution Co.
Oaks, PA 19456 1.800.DIAL.SEI (1.800.342.5734)
SEI-F-097 (6/08)
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.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a)(1) The Registrant's Board of Trustees (the "Board") 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 trustee as defined in Form N-CSR Item 3(a)(2).
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Fees billed by KPMG LLP (KPMG) related to the Registrant
KPMG billed the Registrant aggregate fees for services rendered to the
Registrant for the last two fiscal years as follows:
- --------------------- ----------------------------------------------------- -----------------------------------------------------
FISCAL YEAR 2008 FISCAL YEAR 2007
- ------- ------------- ----------------- ----------------- ----------------- ----------------- ----------------- -----------------
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 services to the services to and services
Trust that were service to service Trust that were service to service
pre-approved affiliates affiliates that pre-approved affiliates affiliates that
that were did not require that were did not require
pre-approved pre-approval pre-approved pre-approval
- ------- ------------- ----------------- ----------------- ----------------- ----------------- ----------------- -----------------
(a) Audit $22,000 N/A N/A $21,500 N/A N/A
Fees(1)
- ------- ------------- ----------------- ----------------- ----------------- ----------------- ----------------- -----------------
(b) Audit- N/A N/A N/A N/A N/A N/A
Related
Fees
- ------- ------------- ----------------- ----------------- ----------------- ----------------- ----------------- -----------------
(c) Tax Fees N/A N/A N/A N/A N/A N/A
- ------- ------------- ----------------- ----------------- ----------------- ----------------- ----------------- -----------------
(d) All Other $400 $226,000 $0 N/A $231,000 $0
Fees
- ------- ------------- ----------------- ----------------- ----------------- ----------------- ----------------- -----------------
Notes:
(1) Audit fees include amounts related to the audit of the Registrant's
annual financial statements and services normally provided by the
accountant in connection with statutory and regulatory filings.
(e)(1) All requests or applications for services to be provided by the
independent auditor shall be submitted to the Chief Financial Officer ("CFO") of
the Registrant and must include a detailed description of the services proposed
to be rendered. The Registrant's CFO will determine whether such services (1)
require specific pre-approval, (2) are included within the list of services that
have received the general pre-approval of the Audit Committee or (3) have been
previously pre-approved in connection with the independent auditor's annual
engagement letter for the applicable year or otherwise.
Requests or applications to provide services that require specific pre-approval
by the Audit Committee will be submitted to the Audit Committee by the CFO. The
Audit Committee will be informed by the CFO on a quarterly basis of all services
rendered by the independent auditor. The Audit Committee has delegated specific
pre-approval authority to either the Audit Committee Chair or financial expert,
provided that the estimated fee for any such proposed pre-approved service does
not exceed $100,000 and any pre-approval decisions are reported to the Audit
Committee at its next regularly scheduled meeting.
All services to be provided by the independent auditor shall be provided
pursuant to a signed written engagement letter with the Registrant, the
investment advisor or applicable control affiliate (except that matters as to
which an engagement letter would be impractical because of timing issues or
because the matter is small may not be the subject of an engagement letter) that
sets forth both the services to be provided by the independent auditor and the
total fees to be paid to the independent auditor for those services.
In addition, the Audit Committee has determined to take additional measures on
an annual basis to meet its responsibility to oversee the work of the
independent auditor and to assure the auditor's independence from the Funds,
such as reviewing a formal written statement from the independent auditor
delineating all relationships between the independent auditor and the
Registrant, and discussing with the independent auditor its methods and
procedures for ensuring independence.
(e)(2) Percentage of fees billed applicable to non-audit services pursuant to
waiver of pre-approval requirement were as follows:
---------------------------- ----------------- ----------------
2008 2007
---------------------------- ----------------- ----------------
Audit-Related Fees 0% 0%
---------------------------- ----------------- ----------------
Tax Fees 0% 0%
---------------------------- ----------------- ----------------
All Other Fees 0% 0%
---------------------------- ----------------- ----------------
(f) Not applicable.
(g)(1) The aggregate non-audit fees and services billed by KPMG for the fiscal
year 2008 were $226,400. Non-audit fees consist of SAS No. 70 review of fund
accounting and administration operations, attestation report in accordance with
Rule 17 Ad-13, agreed upon procedures report over certain internal controls
related to compliance with federal securities laws and regulations and tax
consulting services for various service affiliates of the Registrant.
(g)(2) The aggregate non-audit fees and services billed by KPMG for the 2007
fiscal year were $231,000.
(h) During the past fiscal year, Registrant's principal accountant provided
certain non-audit services to Registrant's investment adviser or to entities
controlling, controlled by, or under common control with Registrant's investment
adviser that provide ongoing services to Registrant that were not subject to
pre-approval pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X.
The Registrant's Audit Committee reviewed and considered these non-audit
services provided by Registrant's principal accountant to Registrant's
affiliates, including whether the provision of these non-audit services is
compatible with maintaining the principal accountant's independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS
Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT COMPANY AND
AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
The Registrant has a standing Nominating Committee (the "Committee") currently
consisting of the Independent Trustees on the Board of Trustees (the "Board").
The Committee is responsible for evaluating and recommending nominees for
election to the Board. Pursuant to the Committee's Charter, adopted on June 18th
2004, as amended, 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 Registrant'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 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.
- --------------------------------------------------------------------------------
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: September 5, 2008
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: September 5, 2008
By (Signature and Title) /s/ Stephen F. Panner
-------------------------------
Stephen F. Panner
Controller & CFO
Date: September 5, 2008