485BXT 1 a2076222z485bxt.txt 485BXT AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON APRIL 30, 2002 FILE NO. 333-70013 FILE NO. 811-09183 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ------------------------ FORM N-1A REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 /X/ POST-EFFECTIVE AMENDMENT NO. 4 AND REGISTRATION STATEMENT UNDER INVESTMENT COMPANY ACT OF 1940 /X/ AMENDMENT NO. 5 ------------------------ SEI INSURANCE PRODUCTS TRUST (Exact Name of Registrant as Specified in Charter) C/O CT CORPORATION 101 Federal Street Boston, Massachusetts 02110 (Address of Principal Executive Offices, Zip Code) EDWARD D. LOUGHLIN c/o SEI Investments Company Oaks, Pennsylvania 19456 COPIES TO: Richard W. Grant, Esquire Thomas P. Lemke, Esquire Morgan, Lewis & Bockius LLP Morgan, Lewis & Bockius LLP 1701 Market Street 1111 Pennsylvania Avenue, N.W. Philadelphia, Pennsylvania 19103 Washington, D.C. 20004 ------------------------ Title of Securities Being Registered...Units of Beneficial Interest ------------------------ It is proposed that this filing become effective (check appropriate box) / / immediately upon filing pursuant to paragraph (b) /X/ on April 30, 2002 pursuant to paragraph (b) / / 60 days after filing pursuant to paragraph (a)(1) / / on [date] pursuant to paragraph (a)(1) / / 75 days after filing pursuant to paragraph (a)(2)
If appropriate check the following box: / / This post-effective Amendment designates a new effective date for a previously filed post- effective Amendment.
------------------------ -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- SEI INSURANCE PRODUCTS TRUST PROSPECTUS CLASS A SHARES MAY 1, 2002 EQUITY FUNDS: SEI VP LARGE CAP VALUE FUND SEI VP LARGE CAP GROWTH FUND SEI VP S&P 500 INDEX FUND SEI VP SMALL CAP VALUE FUND SEI VP SMALL CAP GROWTH FUND SEI VP INTERNATIONAL EQUITY FUND SEI VP EMERGING MARKETS EQUITY FUND FIXED INCOME FUNDS: SEI VP CORE FIXED INCOME FUND SEI VP BOND INDEX FUND SEI VP HIGH YIELD BOND FUND SEI VP INTERNATIONAL FIXED INCOME FUND SEI VP EMERGING MARKETS DEBT FUND MONEY MARKET FUND: SEI VP PRIME OBLIGATION FUND INVESTMENT ADVISER: SEI INVESTMENTS MANAGEMENT CORPORATION INVESTMENT SUB-ADVISERS: ALLIANCE CAPITAL MANAGEMENT L.P. ARTISAN PARTNERS LIMITED PARTNERSHIP BARCLAYS GLOBAL FUND ADVISORS BLACKROCK FINANCIAL MANAGEMENT, INC. BLACKROCK INTERNATIONAL, LTD. THE BOSTON COMPANY ASSET MANAGEMENT, LLC CAPITAL GUARDIAN TRUST COMPANY CHARTWELL INVESTMENT PARTNERS CREDIT SUISSE ASSET MANAGEMENT LLC DAVID J. GREENE & COMPANY, LLC DEUTSCHE ASSET MANAGEMENT INC. DUNCAN-HURST CAPITAL MANAGEMENT INC. IRIDIAN ASSET MANAGEMENT LLC LSV ASSET MANAGEMENT MAZAMA CAPITAL MANAGEMENT, INC. MCKINLEY CAPITAL MANAGEMENT, INC. MELLON BOND ASSOCIATES, LLP MONTAG & CALDWELL INC. MORGAN STANLEY INVESTMENT MANAGEMENT INC. NICHOLAS-APPLEGATE CAPITAL MANAGEMENT NOMURA CORPORATE RESEARCH AND ASSET MANAGEMENT INC. OECHSLE INTERNATIONAL ADVISORS, LLC PEREGRINE CAPITAL MANAGEMENT INC. RS INVESTMENT MANAGEMENT, L.P. ROBERT W. BAIRD & CO., INCORPORATED SALOMON BROTHERS ASSET MANAGEMENT INC SANFORD C. BERNSTEIN & CO., LLC SAWGRASS ASSET MANAGEMENT, LLC SCHRODER INVESTMENT MANAGEMENT NORTH AMERICA INC. SECURITY CAPITAL RESEARCH AND MANAGEMENT INCORPORATED SG PACIFIC ASSET MANAGEMENT, INC. SGY ASSET MANAGEMENT (SINGAPORE) LTD. SHENKMAN CAPITAL MANAGEMENT, INC. STERLING CAPITAL MANAGEMENT STRATEGIC FIXED INCOME, L.L.C. TRANSAMERICA INVESTMENT MANAGEMENT, LLC WALL STREET ASSOCIATES WELLINGTON MANAGEMENT COMPANY, LLP WESTERN ASSET MANAGEMENT COMPANY THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED THESE SECURITIES OR PASSED UPON THE ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. SEI INVESTMENTS / PROSPECTUS I SEI INSURANCE PRODUCTS TRUST ------------------------------------------------------------------------------ ABOUT THIS PROSPECTUS SEI Insurance Products Trust is a mutual fund family that offers different classes of shares in separate investment portfolios (Funds). The Funds have individual investment goals and strategies and are designed exclusively as funding vehicles for variable life insurance and variable annuity contracts. This prospectus gives contract owners important information about the Class A Shares of the Funds that they should know before investing. Please read this prospectus and keep it for future reference. Variable life insurance and variable annuity account investors should also review the separate account prospectus prepared by their insurance company. This prospectus has been arranged into different sections so that you can easily review this important information. On the next page, there is some general information you should know about risk and return that is common to each of the Funds. For more detailed information about the Funds please see:
SEI VP Large Cap Value Fund 2 ------------------------------------------------------------------------ SEI VP Large Cap Growth Fund 5 ------------------------------------------------------------------------ SEI VP S&P 500 Index Fund 8 ------------------------------------------------------------------------ SEI VP Small Cap Value Fund 10 ------------------------------------------------------------------------ SEI VP Small Cap Growth Fund 13 ------------------------------------------------------------------------ SEI VP International Equity Fund 16 ------------------------------------------------------------------------ SEI VP Emerging Markets Equity Fund 19 ------------------------------------------------------------------------ SEI VP Core Fixed Income Fund 22 ------------------------------------------------------------------------ SEI VP Bond Index Fund 25 ------------------------------------------------------------------------ SEI VP High Yield Bond Fund 28 ------------------------------------------------------------------------ SEI VP International Fixed Income Fund 31 ------------------------------------------------------------------------ SEI VP Emerging Markets Debt Fund 34 ------------------------------------------------------------------------ SEI VP Prime Obligation Fund 38 ------------------------------------------------------------------------ More Information About Fund Investments 41 ------------------------------------------------------------------------ Investment Adviser and Sub-Advisers 41 ------------------------------------------------------------------------ Purchasing and Selling Fund Shares 49 ------------------------------------------------------------------------ Dividends, Distributions and Taxes 50 ------------------------------------------------------------------------ Financial Highlights 51 ------------------------------------------------------------------------ How To Obtain More Information About SEI Insurance Products Trust Back Cover ------------------------------------------------------------------------
SEI INVESTMENTS / PROSPECTUS 1 GLOBAL ASSET ALLOCATION Each Fund has its own distinct risk and reward characteristics, investment objectives, policies and strategies. In addition to managing the Funds, SEI Investments Management Corporation (SIMC) constructs and maintains global asset allocation strategies for certain clients, and the Funds are designed in part to implement those strategies. The degree to which an investor's portfolio is invested in the particular market segments and/or asset classes represented by these Funds varies, as does the investment risk/return potential represented by each Fund. Some Funds, especially the SEI VP High Yield Bond, SEI VP Emerging Markets Equity and SEI VP Emerging Markets Debt Funds, may have extremely volatile returns. Because of the historical lack of correlation among various asset classes, an investment in a mix of Funds representing a range of asset classes as part of an asset allocation strategy may reduce the strategy's overall level of volatility. As a result, a global asset allocation strategy may reduce risk. In managing the Funds, SIMC focuses on four key principles: asset allocation, portfolio structure, the use of specialist managers, and continuous portfolio management. Asset allocation across appropriate asset classes (represented by some of the Funds) is the central theme of SIMC's investment philosophy. SIMC seeks to reduce risk further by creating a portfolio that focuses on a specific asset class. SIMC then oversees a network of specialist managers who invest the assets of these Funds in distinct segments of the market or class represented by each Fund. These specialist managers adhere to distinct investment disciplines, with the goal of providing greater consistency and predictability of results, as well as broader diversification across and within asset classes. Finally, SIMC regularly rebalances to ensure that the appropriate mix of assets is constantly in place, and constantly monitors and evaluates specialist managers for these Funds to ensure that they do not deviate from their stated investment philosophy or process. RISK/RETURN INFORMATION COMMON TO THE FUNDS Each Fund is a mutual fund that is available solely as a funding vehicle for variable annuity and variable life insurance contracts sold by various insurance companies. A mutual fund pools investors' money and, using professional investment managers, invests it in securities. Each Fund has its own investment goal and strategies for reaching that goal. Each Fund's assets are managed under the direction of SIMC and one or more Sub-Advisers who manage portions of the Funds' assets in a way that they believe will help the Funds achieve their goals. SIMC acts as "manager of managers" for the Funds, and attempts to ensure that the Sub-Adviser(s) comply with the Funds' investment policies and guidelines. SIMC also recommends the appointment of additional or replacement Sub-Advisers to the Funds' Board. Still, investing in the Funds involves risks, and there is no guarantee that a Fund will achieve its goal. SIMC and the Sub-Advisers make judgments about the securities markets, the economy, and companies, but these judgments may not anticipate actual market movements or the impact of economic conditions on company performance. In fact, no matter how good a job SIMC and the Sub-Advisers do, you could lose money on your investment in a Fund, just as you could with other investments. A Fund share is not a bank deposit and it is not insured or guaranteed by the FDIC or any other government agency. The value of your investment in a Fund (other than the SEI VP Prime Obligation Fund) is based on the market prices of the securities the Fund holds. These prices change daily due to economic and other events that affect securities markets generally, as well as those that affect particular companies and other issuers. These price movements, sometimes called volatility, may be greater or lesser depending on the types of securities the Fund owns and the markets in which they trade. The estimated level of volatility for each Fund is set forth in the Fund Summaries that follow. The effect on a Fund of a change in the value of a single security will depend on how widely the Fund diversifies its holdings. THE INVESTMENT OBJECTIVES AND POLICIES OF THE FUNDS MAY BE SIMILAR TO THOSE OF OTHER RETAIL MUTUAL FUNDS WHICH CAN BE PURCHASED OUTSIDE OF A VARIABLE INSURANCE PRODUCT, AND THAT ARE MANAGED BY THE SAME INVESTMENT ADVISER OR SUB-ADVISERS. THE INVESTMENT RESULTS OF THE FUNDS, HOWEVER, MAY BE HIGHER OR LOWER THAN THE RESULTS OF SUCH OTHER RETAIL MUTUAL FUNDS. THERE CAN BE NO ASSURANCE, AND NO REPRESENTATION IS MADE, THAT THE INVESTMENT RESULTS OF ANY OF THE FUNDS WILL BE COMPARABLE TO THE INVESTMENT RESULTS OF ANY OTHER RETAIL MUTUAL FUND, EVEN IF THE OTHER RETAIL MUTUAL FUND HAS THE SAME INVESTMENT ADVISER OR SUB-ADVISERS. 2 SEI INVESTMENTS / PROSPECTUS SEI VP LARGE CAP VALUE FUND ------------------------------------------------------------------------------ FUND SUMMARY INVESTMENT GOAL: Long-term growth of capital and income SHARE PRICE VOLATILITY: Medium to high PRINCIPAL INVESTMENT Utilizing multiple specialist STRATEGY: sub-advisers that manage in a value style, the Fund invests in large cap income-producing U.S. common stocks
-------------------------------------------------------------------------------- INVESTMENT STRATEGY Under normal circumstances, the SEI VP Large Cap Value Fund will invest at least 80% of its net assets in equity securities of large companies. The Fund will invest primarily in income-producing common stocks of U.S. companies with market capitalizations of more than $1 billion. The Fund uses a multi-manager approach, relying on a number of Sub-Advisers with differing investment philosophies to manage portions of the Fund's portfolio under the general supervision of SIMC. Each Sub-Adviser, in managing its portion of the Fund's assets, selects stocks it believes are undervalued in light of such fundamental characteristics as earnings, book value or return on equity. The Fund's portfolio is diversified as to issuers and industries. WHAT ARE THE RISKS OF INVESTING IN THE FUND? Since it purchases equity securities, the Fund is subject to the risk that stock prices will fall over short or extended periods of time. Historically, the equity markets have moved in cycles, and the value of the Fund's securities may fluctuate drastically from day to day. Individual companies may report poor results or be negatively affected by industry and/or economic trends and developments. The prices of securities issued by such companies may suffer a decline in response. These factors contribute to price volatility, which is the principal risk of investing in the Fund. The Fund is also subject to the risk that large capitalization value stocks may underperform other segments of the equity markets or the equity markets as a whole. SEI INVESTMENTS / PROSPECTUS 3 PERFORMANCE INFORMATION The bar chart and the performance table below illustrate the risks and volatility of an investment in the Fund. Of course, the Fund's past performance does not necessarily indicate how the Fund will perform in the future. This bar chart shows the performance of the Fund's Class A Shares for one year. The performance information shown is based on a full calendar year. EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
2001 -2.91%
BEST QUARTER: 7.40% (12/31/01) WORST QUARTER: -10.42% (09/30/01) This table compares the Fund's average annual total returns for Class A Shares for the periods ended December 31, 2001 to those of the Frank Russell 1000 Value Index.
SINCE CLASS A SHARES 1 YEAR INCEPTION* ------------------------------------------------------------ SEI VP Large Cap Value Fund -2.91% 3.41% ------------------------------------------------------------ Frank Russell 1000 Value Index** -5.59% 1.04% ------------------------------------------------------------
* The Fund's inception date is April 5, 2000. The Index inception date is April 30, 2000. ** An index measures the market prices of a specific group of securities in a particular market or securities in a market sector. You cannot invest directly in an index. Unlike a mutual fund, an index does not have an investment adviser and does not pay any commissions or expenses. If an index had expenses, its performance would be lower. The Frank Russell 1000 Value Index is a widely-recognized, capitalization-weighted (companies with larger market capitalizations have more influence than those with smaller market capitalizations) index that consists of a subset of the 1000 largest U.S. companies with lower growth rates and price-to-book ratios. 4 SEI INVESTMENTS / PROSPECTUS FUND FEES AND EXPENSES This table describes the fees and expenses that you may pay if you buy and hold Fund shares. ANNUAL FUND OPERATING EXPENSES
(EXPENSES DEDUCTED FROM FUND ASSETS) ---------------------------------------------------------- Investment Advisory Fees 0.35% ---------------------------------------------------------- Distribution (12b-1) Fees None ---------------------------------------------------------- Other Expenses 0.79% ---------------------------------------------------------- ---------------------------------------------------------- Total Annual Fund Operating Expenses 1.14%* ---------------------------------------------------------- ----------------------------------------------------------
* The Fund's total actual annual fund operating expenses for the most recent fiscal year were less than the amount shown above because the Adviser and Administrator are each waiving a portion of the fees in order to keep total operating expenses at a specified level. The Adviser and/or Administrator may discontinue all or part of their waivers at any time. With these fee waivers, the Fund's actual total operating expenses are as follows: SEI VP Large Cap Value Fund -- Class A Shares 0.85% ---------------------------------------------------------
For more information about these fees, see "Investment Adviser and Sub-Advisers" and "Distribution of Fund Shares." The amount set forth above does not reflect the fees and expenses of the insurance contract that are charged by your insurance company. EXAMPLE This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and that you sell your shares at the end of the period. The Example also assumes that each year your investment has a 5% return, Fund operating expenses remain the same, and you reinvest all dividends and distributions. Although your actual costs and returns might be different, your approximate costs of investing $10,000 in the Fund would be:
1 YEAR 3 YEARS 5 YEARS 10 YEARS ------------------------------------------------------------------ SEI VP Large Cap Value Fund -- Class A Shares $ 116 $ 362 $ 628 $ 1,386 ------------------------------------------------------------------
SEI INVESTMENTS / PROSPECTUS 5 SEI VP LARGE CAP GROWTH FUND ------------------------------------------------------------------------------ FUND SUMMARY INVESTMENT GOAL: Capital appreciation SHARE PRICE VOLATILITY: Medium to high PRINCIPAL INVESTMENT Utilizing multiple specialist STRATEGY: sub-advisers that manage in a growth style, the Fund invests in large cap U.S. common stocks
-------------------------------------------------------------------------------- INVESTMENT STRATEGY Under normal circumstances, the SEI VP Large Cap Growth Fund will invest at least 80% of its net assets in equity securities of large companies. The Fund will invest primarily in common stocks of U.S. companies with market capitalizations of more than $1 billion. The Fund uses a multi-manager approach, relying on a number of Sub-Advisers with differing investment philosophies to manage portions of the Fund's portfolio under the general supervision of SIMC. Each Sub-Adviser, in managing its portion of the Fund's assets, selects stocks it believes have significant growth potential in light of such characteristics as revenue and earnings growth and positive earnings surprises. The Fund's portfolio is diversified as to issuers and industries. WHAT ARE THE RISKS OF INVESTING IN THE FUND? Since it purchases equity securities, the Fund is subject to the risk that stock prices will fall over short or extended periods of time. Historically, the equity markets have moved in cycles, and the value of the Fund's securities may fluctuate drastically from day to day. Individual companies may report poor results or be negatively affected by industry and/or economic trends and developments. The prices of securities issued by such companies may suffer a decline in response. These factors contribute to price volatility, which is the principal risk of investing in the Fund. The Fund is subject to the risk that large capitalization growth stocks may underperform other segments of the equity markets or the equity markets as a whole. 6 SEI INVESTMENTS / PROSPECTUS PERFORMANCE INFORMATION The bar chart and the performance table below illustrate the risks and volatility of an investment in the Fund. Of course, the Fund's past performance does not necessarily indicate how the Fund will perform in the future. This bar chart shows the performance of the Fund's Class A Shares for one year. The performance information shown is based on a full calendar year. EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
2001 -27.14%
BEST QUARTER: 18.22% (12/31/01) WORST QUARTER: -25.67% (03/31/01) This table compares the Fund's average annual total returns for Class A Shares for the periods ended December 31, 2001 to those of the Frank Russell 1000 Growth Index.
SINCE CLASS A SHARES 1 YEAR INCEPTION* ------------------------------------------------------------- SEI VP Large Cap Growth Fund -27.14% -29.50% ------------------------------------------------------------- Frank Russell 1000 Growth Index** -20.42% -26.03% -------------------------------------------------------------
* The Fund's inception date is April 5, 2000. The Index inception date is April 30, 2000. ** An index measures the market prices of a specific group of securities in a particular market or securities in a market sector. You cannot invest directly in an index. Unlike a mutual fund, an index does not have an investment adviser and does not pay any commissions or expenses. If an index had expenses, its performance would be lower. The Frank Russell 1000 Growth Index is a widely-recognized, capitalization-weighted (companies with larger market capitalizations have more influence than those with smaller market capitalizations) index that consists of a subset of the 1000 largest U.S. companies with higher growth rates and price-to-book ratios. SEI INVESTMENTS / PROSPECTUS 7 FUND FEES AND EXPENSES This table describes the fees and expenses that you may pay if you buy and hold Fund shares. ANNUAL FUND OPERATING EXPENSES
(EXPENSES DEDUCTED FROM FUND ASSETS) ---------------------------------------------------------- Investment Advisory Fees 0.40% ---------------------------------------------------------- Distribution (12b-1) Fees None ---------------------------------------------------------- Other Expenses 0.79% ---------------------------------------------------------- ---------------------------------------------------------- Total Annual Fund Operating Expenses 1.19%* ---------------------------------------------------------- ----------------------------------------------------------
* The Fund's total actual annual fund operating expenses for the most recent fiscal year were less than the amount shown above because the Adviser and Administrator are each waiving a portion of the fees in order to keep total operating expenses at a specified level. The Adviser and/or Administrator may discontinue all or part of their waivers at any time. With these fee waivers, the Fund's actual total operating expenses are as follows: SEI VP Large Cap Growth Fund -- Class A Shares 0.85% ---------------------------------------------------------
For more information about these fees, see "Investment Adviser and Sub-Advisers" and "Distribution of Fund Shares." The amount set forth above does not reflect the fees and expenses of the insurance contract that are charged by your insurance company. EXAMPLE This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and that you sell your shares at the end of the period. The Example also assumes that each year your investment has a 5% return, Fund operating expenses remain the same, and you reinvest all dividends and distributions. Although your actual costs and returns might be different, your approximate costs of investing $10,000 in the Fund would be:
1 YEAR 3 YEARS 5 YEARS 10 YEARS ------------------------------------------------------------------ SEI VP Large Cap Growth Fund -- Class A Shares $ 121 $ 378 $ 654 $ 1,443 ------------------------------------------------------------------
8 SEI INVESTMENTS / PROSPECTUS SEI VP S&P 500 INDEX FUND ------------------------------------------------------------------------------ FUND SUMMARY INVESTMENT GOAL: Investment results that correspond to the Standard & Poor's 500 Composite Index (S&P 500 Index) SHARE PRICE VOLATILITY: Medium to high PRINCIPAL INVESTMENT Utilizing a specialist sub-adviser, the STRATEGY: Fund invests in the common stocks and other equity securities included in the S&P 500 Index
-------------------------------------------------------------------------------- INVESTMENT STRATEGY The SEI VP S&P 500 Index Fund invests substantially all of its assets in securities included in the S&P 500 Index, which is comprised of 500 selected securities (mostly common stocks). The Fund's ability to replicate the performance of the S&P 500 Index will depend to some extent on the size and timing of cash flows into and out of the Fund, as well as on the level of the Fund's expenses. The Sub-Adviser selects securities under the general supervision of SIMC, but the Sub-Adviser makes no attempt to "manage" the Fund in the traditional sense (I.E., by using economic, market or financial analyses). Instead, the Sub-Adviser purchases a basket of securities that includes most of the companies in the S&P 500 Index. However, the Fund's Sub-Adviser may sell an investment if the merit of the investment has been substantially impaired by extraordinary events or adverse financial conditions. WHAT ARE THE RISKS OF INVESTING IN THE FUND? Since it purchases equity securities, the Fund is subject to the risk that stock prices will fall over short or extended periods of time. Historically, the equity markets have moved in cycles, and the value of the Fund's securities may fluctuate drastically from day to day. Individual companies may report poor results or be negatively affected by industry and/or economic trends and developments. The prices of securities issued by such companies may suffer a decline in response. These factors contribute to price volatility, which is the principal risk of investing in the Fund. The Fund is also subject to the risk that the performance of the Fund may deviate from the S&P 500 Index. The Sub-Adviser purchases only a representative portion of the securities in the S&P 500 Index, and performance of the Fund's portfolio of securities therefore may not match that of the S&P 500 Index. Depending on the Sub-Adviser's approach and the size of the Fund, the representative sample of securities in the S&P 500 Index that are actually held by the Fund may vary from time to time. In addition, the Fund is subject to the risk that its investment approach, which attempts to replicate the performance of the S&P 500 Index, may perform differently than other mutual funds which focus on particular equity market segments or invest in other asset classes. SEI INVESTMENTS / PROSPECTUS 9 PERFORMANCE INFORMATION As of May 1, 2002, the Fund had not commenced operations, and did not have a performance history. FUND FEES AND EXPENSES This table describes the fees and expenses that you may pay if you buy and hold Fund shares. ANNUAL FUND OPERATING EXPENSES
(EXPENSES DEDUCTED FROM FUND ASSETS) ----------------------------------------------------------- Investment Advisory Fees 0.03% ----------------------------------------------------------- Distribution (12b-1) Fees None ----------------------------------------------------------- Other Expenses 0.59%* ----------------------------------------------------------- ----------------------------------------------------------- Total Annual Fund Operating Expenses 0.62%** ----------------------------------------------------------- -----------------------------------------------------------
* Other expenses are based on estimated amounts for the current fiscal year. ** The Fund's total actual annual fund operating expenses for the most recent fiscal year are expected to be less than the amount shown above because the Adviser and Administrator will each voluntarily waive a portion of the fees in order to keep total operating expenses at a specified level. The Adviser and/or Administrator may discontinue all or part of these waivers at any time. With these fee waivers, the Fund's actual total operating expenses are expected to be as follows: SEI VP S&P 500 Index Fund -- Class A Shares 0.40% ---------------------------------------------------------
For more information about these fees, see "Investment Adviser and Sub-Advisers" and "Distribution of Fund Shares." The amount set forth above does not reflect the fees and expenses of the insurance contract that are charged by your insurance company. EXAMPLE This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and that you sell your shares at the end of the period. The Example also assumes that each year your investment has a 5% return, Fund expenses remain the same, and you reinvest all dividends and distributions. Although your actual costs and returns might be different, your approximate costs of investing $10,000 in the Fund would be:
1 YEAR 3 YEARS --------------------------------------------------------- SEI VP S&P 500 Index Fund -- Class A Shares $ 63 $ 199 ---------------------------------------------------------
10 SEI INVESTMENTS / PROSPECTUS SEI VP SMALL CAP VALUE FUND ------------------------------------------------------------------------------ FUND SUMMARY INVESTMENT GOAL: Capital appreciation SHARE PRICE VOLATILITY: High PRINCIPAL INVESTMENT Utilizing multiple specialist STRATEGY: sub-advisers that manage in a value style, the Fund invests in common stocks of smaller U.S. companies
-------------------------------------------------------------------------------- INVESTMENT STRATEGY Under normal circumstances, the SEI VP Small Cap Value Fund will invest at least 80% of its net assets in equity securities of small companies. The Fund will invest primarily in common stocks of U.S. companies with market capitalizations of less than $2 billion. The Fund uses a multi-manager approach, relying upon a number of Sub-Advisers to manage portions of the Fund's portfolio under the general supervision of SIMC. Each Sub-Adviser, in managing its portion of the Fund's assets, selects stocks it believes are undervalued in light of such fundamental characteristics as earnings, book value or return on equity. The Fund's portfolio is diversified as to issuers and industries. WHAT ARE THE RISKS OF INVESTING IN THE FUND? Since it purchases equity securities, the Fund is subject to the risk that stock prices will fall over short or extended periods of time. Historically, the equity markets have moved in cycles, and the value of the Fund's securities may fluctuate drastically from day to day. Individual companies may report poor results or be negatively affected by industry and/or economic trends and developments. The prices of securities issued by such companies may suffer a decline in response. These factors contribute to price volatility, which is the principal risk of investing in the Fund. The Fund is also subject to the risk that small capitalization value stocks may underperform other segments of the equity markets or the equity markets as a whole. The smaller capitalization companies that the Fund invests in may be more vulnerable to adverse business or economic events than larger, more established companies. In particular, these small companies may have limited product lines, markets and financial resources, and may depend upon a relatively small management group. Therefore, small cap stocks may be more volatile than those of larger companies. These securities may be traded over-the-counter or listed on an exchange. SEI INVESTMENTS / PROSPECTUS 11 PERFORMANCE INFORMATION The bar chart and the performance table below illustrate the risks and volatility of an investment in the Fund. Of course, the Fund's past performance does not necessarily indicate how the Fund will perform in the future. This bar chart shows the performance of the Fund's Class A Shares for one year. The performance information shown is based on a full calendar year. EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
2001 14.89%
BEST QUARTER: 16.64% (12/31/01) WORST QUARTER: -12.77% (09/30/01) This table compares the Fund's average annual total returns for Class A Shares for the periods ended December 31, 2001 to those of the Frank Russell 2000 Value Index.
SINCE CLASS A SHARES 1 YEAR INCEPTION* ------------------------------------------------------------ SEI VP Small Cap Value Fund 14.89% 21.62% ------------------------------------------------------------ Frank Russell 2000 Value Index** 14.02% 19.25% ------------------------------------------------------------
* The Fund's inception date is April 5, 2000. The Index inception date is April 30, 2000. ** An index measures the market prices of a specific group of securities in a particular market or securities in a market sector. You cannot invest directly in an index. Unlike a mutual fund, an index does not have an investment adviser and does not pay any commissions or expenses. If an index had expenses, its performance would be lower. The Frank Russell 2000 Value Index is a widely-recognized, capitalization-weighted (companies with larger market capitalizations have more influence than those with smaller market capitalizations) index that consists of a subset of the 2000 smallest U.S. companies out of the 3000 largest U.S. companies with lower growth rates and price-to-book ratios. 12 SEI INVESTMENTS / PROSPECTUS FUND FEES AND EXPENSES This table describes the fees and expenses that you may pay if you buy and hold Fund shares. ANNUAL FUND OPERATING EXPENSES
(EXPENSES DEDUCTED FROM FUND ASSETS) ---------------------------------------------------------- Investment Advisory Fees 0.65% ---------------------------------------------------------- Distribution (12b-1) Fees None ---------------------------------------------------------- Other Expenses 0.80% ---------------------------------------------------------- ---------------------------------------------------------- Total Annual Fund Operating Expenses 1.45%* ---------------------------------------------------------- ----------------------------------------------------------
* The Fund's total actual annual fund operating expenses for the most recent fiscal year were less than the amount shown above because the Adviser and Administrator are each waiving a portion of the fees in order to keep total operating expenses at a specified level. The Adviser and/or Administrator may discontinue all or part of their waivers at any time. With these fee waivers, the Fund's actual total operating expenses are as follows: SEI VP Small Cap Value Fund -- Class A Shares 1.10% ---------------------------------------------------------
For more information about these fees, see "Investment Adviser and Sub-Advisers" and "Distribution of Fund Shares." The amount set forth above does not reflect the fees and expenses of the insurance contract that are charged by your insurance company. EXAMPLE This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and that you sell your shares at the end of the period. The Example also assumes that each year your investment has a 5% return, Fund operating expenses remain the same, and you reinvest all dividends and distributions. Although your actual costs and returns might be different, your approximate costs of investing $10,000 in the Fund would be:
1 YEAR 3 YEARS 5 YEARS 10 YEARS ------------------------------------------------------------------ SEI VP Small Cap Value Fund -- Class A Shares $ 148 $ 459 $ 792 $ 1,735 ------------------------------------------------------------------
SEI INVESTMENTS / PROSPECTUS 13 SEI VP SMALL CAP GROWTH FUND ------------------------------------------------------------------------------ FUND SUMMARY INVESTMENT GOAL: Long-term capital appreciation SHARE PRICE VOLATILITY: High PRINCIPAL INVESTMENT Utilizing multiple specialist STRATEGY: sub-advisers that manage in a growth style, the Fund invests in common stocks of smaller U.S. companies
-------------------------------------------------------------------------------- INVESTMENT STRATEGY Under normal circumstances, the SEI VP Small Cap Growth Fund will invest at least 80% of its net assets in equity securities of small companies. The Fund will invest primarily in common stocks of U.S. companies with market capitalizations of less than $2 billion. The Fund uses a multi-manager approach, relying upon a number of Sub-Advisers to manage portions of the Fund's portfolio under the general supervision of SIMC. Each Sub-Adviser, in managing its portion of the Fund's assets, selects stocks it believes have significant growth potential in light of such characteristics as revenue and earnings growth and positive earnings surprises. The Fund's portfolio is diversified as to issuers and industries. WHAT ARE THE RISKS OF INVESTING IN THE FUND? Since it purchases equity securities, the Fund is subject to the risk that stock prices will fall over short or extended periods of time. Historically, the equity markets have moved in cycles, and the value of the Fund's securities may fluctuate drastically from day to day. Individual companies may report poor results or be negatively affected by industry and/or economic trends and developments. The prices of securities issued by such companies may suffer a decline in response. These factors contribute to price volatility, which is the principal risk of investing in the Fund. The Fund is also subject to the risk that small capitalization growth stocks may underperform other segments of the equity markets or the equity markets as a whole. The smaller capitalization companies that the Fund invests in may be more vulnerable to adverse business or economic events than larger, more established companies. In particular, these small companies may have limited product lines, markets and financial resources, and may depend upon a relatively small management group. Therefore, small cap stocks may be more volatile than those of larger companies. These securities may be traded over the counter or listed on an exchange. 14 SEI INVESTMENTS / PROSPECTUS PERFORMANCE INFORMATION The bar chart and the performance table below illustrate the risks and volatility of an investment in the Fund. Of course, the Fund's past performance does not necessarily indicate how the Fund will perform in the future. This bar chart shows the performance of the Fund's Class A Shares for one year. The performance information shown is based on a full calendar year. EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
2001 -21.91%
BEST QUARTER: 17.68% (12/31/01) WORST QUARTER: -28.92% (09/30/01) This table compares the Fund's average annual total returns for Class A Shares for the periods ended December 31, 2001 to those of the Frank Russell 2000 Growth Index.
SINCE CLASS A SHARES 1 YEAR INCEPTION* ------------------------------------------------------------- SEI VP Small Cap Growth Fund -21.91% -15.14% ------------------------------------------------------------- Frank Russell 2000 Growth Index** -9.23% -18.12% -------------------------------------------------------------
* The Fund's inception date is April 5, 2000. The Index inception date is April 30, 2000. ** An index measures the market prices of a specific group of securities in a particular market or securities in a market sector. You cannot invest directly in an index. Unlike a mutual fund, an index does not have an investment adviser and does not pay any commissions or expenses. If an index had expenses, its performance would be lower. The Frank Russell 2000 Growth Index is a widely recognized, capitalization-weighted (companies with larger market capitalizations have more influence than those with smaller market capitalizations) index that consists of a subset of the 2000 smallest U.S. companies out of the 3000 largest U.S. companies with higher growth rates and price-to-book ratios. SEI INVESTMENTS / PROSPECTUS 15 FUND FEES AND EXPENSES This table describes the fees and expenses that you may pay if you buy and hold Fund shares. ANNUAL FUND OPERATING EXPENSES
(EXPENSES DEDUCTED FROM FUND ASSETS) ---------------------------------------------------------- Investment Advisory Fees 0.65% ---------------------------------------------------------- Distribution (12b-1) Fees None ---------------------------------------------------------- Other Expenses 0.81% ---------------------------------------------------------- ---------------------------------------------------------- Total Annual Fund Operating Expenses 1.46%* ---------------------------------------------------------- ----------------------------------------------------------
* The Fund's total actual annual fund operating expenses for the most recent fiscal year were less than the amount shown above because the Adviser and Administrator are each waiving a portion of the fees in order to keep total operating expenses at a specified level. The Adviser and/or Administrator may discontinue all or part of their waivers at any time. With these fee waivers, the Fund's actual total operating expenses are as follows: SEI VP Small Cap Growth Fund -- Class A Shares 1.10% ---------------------------------------------------------
For more information about these fees, see "Investment Adviser and Sub-Advisers" and "Distribution of Fund Shares." The amount set forth above does not reflect the fees and expenses of the insurance contract that are charged by your insurance company. EXAMPLE This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and that you sell your shares at the end of the period. The Example also assumes that each year your investment has a 5% return, Fund operating expenses remain the same, and you reinvest all dividends and distributions. Although your actual costs and returns might be different, your approximate costs of investing $10,000 in the Fund would be:
1 YEAR 3 YEARS 5 YEARS 10 YEARS ------------------------------------------------------------------ SEI VP Small Cap Growth Fund -- Class A Shares $ 149 $ 462 $ 797 $ 1,746 ------------------------------------------------------------------
16 SEI INVESTMENTS / PROSPECTUS SEI VP INTERNATIONAL EQUITY FUND ------------------------------------------------------------------------------ FUND SUMMARY INVESTMENT GOAL: Capital appreciation SHARE PRICE VOLATILITY: Medium to high PRINCIPAL INVESTMENT Utilizing multiple specialist STRATEGY: sub-advisers, the Fund invests in equity securities of foreign companies
-------------------------------------------------------------------------------- INVESTMENT STRATEGY Under normal circumstances, the SEI VP International Equity Fund will invest at least 80% of its net assets in equity securities. The Fund will invest primarily in common stocks and other equity securities of issuers located outside the United States. The Fund primarily invests in companies located in developed countries, but may also invest in companies located in emerging markets. The Fund uses a multi-manager approach, relying upon a number of Sub-Advisers to manage portions of the Fund's portfolio under the general supervision of SIMC. WHAT ARE THE RISKS OF INVESTING IN THE FUND? Since it purchases equity securities, the Fund is subject to the risk that stock prices will fall over short or extended periods of time. Historically, the equity markets have moved in cycles, and the value of the Fund's securities may fluctuate drastically from day to day. Individual companies may report poor results or be negatively affected by industry and/or economic trends and developments. The prices of securities issued by such companies may suffer a decline in response. In the case of foreign stocks, these fluctuations will reflect international economic and political events, as well as changes in currency valuations relative to the U.S. dollar. These factors contribute to price volatility, which is the principal risk of investing in the Fund. Investing in issuers located in foreign countries poses distinct risks since political and economic events unique to a country or region will affect those markets and their issuers. These events will not necessarily affect the U.S. economy or similar issuers located in the United States. In addition, investments in foreign countries are generally denominated in a foreign currency. As a result, changes in the value of those currencies compared to the U.S. dollar may affect (positively or negatively) the value of a Fund's investments. These currency movements may happen separately from and in response to events that do not otherwise affect the value of the security in the issuer's home country. These various risks will be even greater for investments in emerging market countries. Emerging market countries are countries that the World Bank or the United Nations considers to be emerging or developing. Emerging markets may be more likely to experience political turmoil or rapid changes in market or economic conditions than more developed countries. Emerging market countries often have less uniformity in accounting and reporting requirements and less reliable securities valuations. It is sometimes difficult to obtain and enforce court judgments in such countries and there is often a greater potential for nationalization and/or expropriation of assets by the government of an emerging market country. In addition, the financial stability of issuers (including governments) in emerging markets countries may be more precarious than in other countries. As a result, there will tend to be an increased risk of price volatility associated with the Fund's investments in emerging market countries, which may be magnified by currency fluctuations relative to the U.S. dollar. The Fund is also subject to the risk that developed international equity securities may underperform other segments of the equity markets or the equity markets as a whole. SEI INVESTMENTS / PROSPECTUS 17 PERFORMANCE INFORMATION The bar chart and the performance table below illustrate the risks and volatility of an investment in the Fund. Of course, the Fund's past performance does not necessarily indicate how the Fund will perform in the future. This bar chart shows the performance of the Fund's Class A Shares for one year. The performance information shown is based on a full calendar year. EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
2001 -24.05%
BEST QUARTER: 10.18% (12/31/01) WORST QUARTER: -18.21% (09/30/01) This table compares the Fund's average annual total returns for Class A Shares for the periods ended December 31, 2001 to those of the MSCI EAFE Index.
SINCE CLASS A SHARES 1 YEAR INCEPTION* ------------------------------------------------------------- SEI VP International Equity Fund -24.05% -24.73% ------------------------------------------------------------- MSCI EAFE Index** -21.44% -18.41% -------------------------------------------------------------
* The Fund's inception date is April 5, 2000. The Index inception date is April 30, 2000. ** An index measures the market prices of a specific group of securities in a particular market or securities in a market sector. You cannot invest directly in an index. Unlike a mutual fund, an index does not have an investment adviser and does not pay any commissions or expenses. If an index had expenses, its performance would be lower. The MSCI EAFE Index is a widely-recognized, capitalization-weighted (companies with larger market capitalizations have more influence than those with smaller capitalizations) index of over 900 securities listed on the stock exchange in Europe, Australia and the Far East. 18 SEI INVESTMENTS / PROSPECTUS FUND FEES AND EXPENSES This table describes the fees and expenses that you may pay if you buy and hold Fund shares. ANNUAL FUND OPERATING EXPENSES
(EXPENSES DEDUCTED FROM FUND ASSETS) ---------------------------------------------------------- Investment Advisory Fees 0.51% ---------------------------------------------------------- Distribution (12b-1) Fees None ---------------------------------------------------------- Other Expenses 1.53% ---------------------------------------------------------- ---------------------------------------------------------- Total Annual Fund Operating Expenses 2.04%* ---------------------------------------------------------- ----------------------------------------------------------
* The Fund's total actual annual fund operating expenses for the most recent fiscal year were less than the amount shown above because the Adviser and Administrator are each waiving a portion of the fees in order to keep total operating expenses at a specified level. The Adviser and/or Administrator may discontinue all or part of their waivers at any time. With these fee waivers, the Fund's actual total operating expenses are as follows: SEI VP International Equity Fund -- Class A Shares 1.28% ---------------------------------------------------------
For more information about these fees, see "Investment Adviser and Sub-Advisers" and "Distribution of Fund Shares." The amount set forth above does not reflect the fees and expenses of the insurance contract that are charged by your insurance company. EXAMPLE This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and that you sell your shares at the end of the period. The Example also assumes that each year your investment has a 5% return, Fund operating expenses remain the same, and you reinvest all dividends and distributions. Although your actual costs and returns might be different, your approximate costs of investing $10,000 in the Fund would be:
1 YEAR 3 YEARS 5 YEARS 10 YEARS ------------------------------------------------------------------ SEI VP International Equity Fund -- Class A Shares $ 207 $ 640 $ 1,098 $ 2,369 ------------------------------------------------------------------
SEI INVESTMENTS / PROSPECTUS 19 SEI VP EMERGING MARKETS EQUITY FUND ------------------------------------------------------------------------------ FUND SUMMARY INVESTMENT GOAL: Capital appreciation SHARE PRICE VOLATILITY: Very high PRINCIPAL INVESTMENT Utilizing multiple specialist STRATEGY: sub-advisers, the Fund invests in equity securities of emerging markets companies
-------------------------------------------------------------------------------- INVESTMENT STRATEGY Under normal circumstances, the SEI VP Emerging Markets Equity Fund will invest at least 80% of its net assets in equity securities of emerging markets issuers. The Fund will invest primarily in common stocks and other equity securities of foreign companies located in emerging market countries. The Fund uses a multi-manager approach, relying upon one or more Sub-Advisers to manage portions of the Fund's portfolio under the general supervision of SIMC. The Fund's portfolio is diversified as to issuers, market capitalization, industry and country. WHAT ARE THE RISKS OF INVESTING IN THE FUND? Since it purchases equity securities, the Fund is subject to the risk that stock prices will fall over short or extended periods of time. Historically, the equity markets have moved in cycles, and the value of the Fund's securities may fluctuate drastically from day to day. Individual companies may report poor results or be negatively affected by industry and/or economic trends and developments. The prices of securities issued by such companies may suffer a decline in response. In the case of foreign stocks, these fluctuations will reflect international economic and political events, as well as changes in currency valuations relative to the U.S. dollar. These factors contribute to price volatility, which is the principal risk of investing in the Fund. Investing in issuers located in foreign countries poses distinct risks since political and economic events unique to a country or region will affect those markets and their issuers. These events will not necessarily affect the U.S. economy or similar issuers located in the United States. In addition, investments in foreign countries are generally denominated in a foreign currency. As a result, changes in the value of those currencies compared to the U.S. dollar may affect (positively or negatively) the value of a Fund's investments. These currency movements may happen separately from and in response to events that do not otherwise affect the value of the security in the issuer's home country. These various risks will be even greater for investments in emerging market countries. Emerging market countries are countries that the World Bank or the United Nations considers to be emerging or developing. Emerging markets may be more likely to experience political turmoil or rapid changes in market or economic conditions than more developed countries. Emerging market countries often have less uniformity in accounting and reporting requirements and less reliable securities valuations. It is sometimes difficult to obtain and enforce court judgments in such countries and there is often a greater potential for nationalization and/or expropriation of assets by the government of an emerging market country. In addition, the financial stability of issuers (including governments) in emerging markets countries may be more precarious than in other countries. As a result, there will tend to be an increased risk of price volatility associated with the Fund's investments in emerging market countries, which may be magnified by currency fluctuations relative to the U.S. dollar. The Fund is also subject to the risk that emerging market equity securities may underperform other segments of the equity markets or the equity markets as a whole. 20 SEI INVESTMENTS / PROSPECTUS PERFORMANCE INFORMATION The bar chart and the performance table below illustrate the risks and volatility of an investment in the Fund. Of course, the Fund's past performance does not necessarily indicate how the Fund will perform in the future. This bar chart shows the performance of the Fund's Class A Shares for one year. The performance information shown is based on a full calendar year. EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
2001 -11.08%
BEST QUARTER: 25.62% (12/31/01) WORST QUARTER: -24.23% (09/30/01) This table compares the Fund's average annual total returns for Class A Shares for the periods ended December 31, 2001 to those of the MSCI Emerging Markets Free Index.
SINCE CLASS A SHARES 1 YEAR INCEPTION* ------------------------------------------------------------- SEI VP Emerging Markets Equity Fund -11.08% -28.84% ------------------------------------------------------------- MSCI Emerging Markets Free Index** 1.34% -15.23% -------------------------------------------------------------
* The Fund's inception date is April 5, 2000. The Index inception date is April 30, 2000. ** An index measures the market prices of a specific group of securities in a particular market or securities in a market sector. You cannot invest directly in an index. Unlike a mutual fund, an index does not have an investment adviser and does not pay any commissions or expenses. If an index had expenses, its performance would be lower. The MSCI Emerging Markets Free Index is a widely-recognized, capitalization-weighted (companies with larger market capitalizations have more influence than those with smaller capitalizations) index of over 800 stocks from approximately 17 emerging market countries. SEI INVESTMENTS / PROSPECTUS 21 FUND FEES AND EXPENSES This table describes the fees and expenses that you may pay if you buy and hold Fund shares. ANNUAL FUND OPERATING EXPENSES
(EXPENSES DEDUCTED FROM FUND ASSETS) ---------------------------------------------------------- Investment Advisory Fees 1.05% ---------------------------------------------------------- Distribution (12b-1) Fees None ---------------------------------------------------------- Other Expenses 2.65% ---------------------------------------------------------- ---------------------------------------------------------- Total Annual Fund Operating Expenses 3.70%* ---------------------------------------------------------- ----------------------------------------------------------
* The Fund's total actual annual fund operating expenses for the most recent fiscal year were less than the amount shown above because the Adviser and Administrator are each waiving a portion of the fees in order to keep total operating expenses at a specified level. The Adviser and/or Administrator may discontinue all or part of their waivers at any time. With these fee waivers, the Fund's actual total operating expenses are as follows: SEI VP Emerging Markets Equity Fund -- Class A Shares 1.95% ---------------------------------------------------------
For more information about these fees, see "Investment Adviser and Sub-Advisers" and "Distribution of Fund Shares." The amount set forth above does not reflect the fees and expenses of the insurance contract that are charged by your insurance company. EXAMPLE This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and that you sell your shares at the end of the period. The Example also assumes that each year your investment has a 5% return, Fund operating expenses remain the same, and you reinvest all dividends and distributions. Although your actual costs and returns might be different, your approximate costs of investing $10,000 in the Fund would be:
1 YEAR 3 YEARS 5 YEARS 10 YEARS ------------------------------------------------------------------ SEI VP Emerging Markets Equity Fund -- Class A Shares $ 372 $1,132 $1,911 $ 3,950 ------------------------------------------------------------------
22 SEI INVESTMENTS / PROSPECTUS SEI VP CORE FIXED INCOME FUND ------------------------------------------------------------------------------ FUND SUMMARY INVESTMENT GOAL: Current income and preservation of capital SHARE PRICE VOLATILITY: Medium PRINCIPAL INVESTMENT Utilizing multiple specialist STRATEGY: sub-advisers that have fixed income investment expertise, the Fund invests in investment grade U.S. fixed income securities
-------------------------------------------------------------------------------- INVESTMENT STRATEGY Under normal circumstances, the SEI VP Core Fixed Income Fund will invest at least 80% of its net assets in fixed income securities. The Fund will invest primarily in investment grade U.S. corporate and government fixed income securities, including mortgage-backed securities. The Fund uses a multi-manager approach, relying upon one or more Sub-Advisers to manage portions of the Fund's portfolio under the general supervision of SIMC. Sub-Advisers are selected for their expertise in managing various kinds of fixed income securities, and each Sub-Adviser makes investment decisions based on an analysis of yield trends, credit ratings and other factors in accordance with its particular discipline. While each Sub-Adviser chooses securities of different types and maturities, the Fund in the aggregate generally will have a dollar-weighted average duration that is consistent with that of the broad U.S. fixed income market (currently 4.9 years). WHAT ARE THE RISKS OF INVESTING IN THE FUND? The prices of the Fund's fixed income securities respond to economic developments, particularly interest rate changes, as well as to perceptions about the creditworthiness of individual issuers, including governments and their agencies. Generally, the Fund's fixed income securities will decrease in value if interest rates rise and vice versa, and the volatility of lower-rated securities is even greater than that of higher-rated securities. Also, longer-term securities are generally more volatile, so the average maturity or duration of these securities affects risk. Although the Fund's U.S. government securities are considered to be among the safest investments, they are not guaranteed against price movements due to changing interest rates. Obligations issued by some U.S. government agencies are backed by the U.S. Treasury, while others are backed solely by the ability of the agency to borrow from the U.S. Treasury or by the agency's own resources. Mortgage-backed securities are fixed income securities representing an interest in a pool of underlying mortgage loans. Mortgage-backed securities are sensitive to changes in interest rates, but may respond to these changes differently from other fixed income securities due to the possibility of prepayment of the underlying mortgage loans. As a result, it may not be possible to determine in advance the actual maturity date or average life of a mortgage-backed security. Rising interest rates tend to discourage refinancings, with the result that the average life and volatility of the security will increase, exacerbating its decrease in market price. When interest rates fall, however, mortgage-backed securities may not gain as much in market value because of the expectation of additional mortgage prepayments, that must be reinvested at lower interest rates. Prepayment risk may make it difficult to calculate the average maturity of the Fund's mortgage-backed securities and, therefore, to assess the volatility risk of the Fund. The privately issued mortgage-backed securities that the Fund invests in are not issued or guaranteed by the U.S. government or its agencies or instrumentalities and may bear a greater risk of nonpayment than securities that are backed by the U.S. Treasury. However, the timely payment of principal and interest normally is supported, at least partially, by various credit enhancements by banks and other financial institutions. There can be no assurance, however, that such credit enhancements will support full payment of the principal and interest on such obligations. In addition, changes in the credit quality of the entity that provides credit enhancement could cause losses to the Fund and affect its share price. The Fund is also subject to the risk that U.S. fixed income securities may underperform other segments of the fixed income markets or the fixed income markets as a whole. SEI INVESTMENTS / PROSPECTUS 23 PERFORMANCE INFORMATION The bar chart and the performance table below illustrate the risks and volatility of an investment in the Fund. Of course, the Fund's past performance does not necessarily indicate how the Fund will perform in the future. This bar chart shows the performance of the Fund's Class A Shares for one year. The performance information shown is based on a full calendar year. EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
2001 7.69%
BEST QUARTER: 4.33% (09/30/01) WORST QUARTER: -0.18% (12/31/01) This table compares the Fund's average annual total returns for Class A Shares for the periods ended December 31, 2001 to those of the Lehman Brothers Aggregate Bond Index.
SINCE CLASS A SHARES 1 YEAR INCEPTION* ------------------------------------------------------------ SEI VP Core Fixed Income Fund 7.69% 9.27% ------------------------------------------------------------ Lehman Brothers Aggregate Bond Index** 8.42% 10.87% ------------------------------------------------------------
* The Fund's inception date is April 5, 2000. The Index inception date is April 30, 2000. ** An index measures the market prices of a specific group of securities in a particular market or securities in a market sector. You cannot invest directly in an index. Unlike a mutual fund, an index does not have an investment adviser and does not pay any commissions or expenses. If an index had expenses, its performance would be lower. The Lehman Brothers Aggregate Bond Index is a widely-recognized, market-weighted (higher market value bonds have more influence than lower market value bonds) index of U.S. government obligations, corporate debt securities and AAA rated mortgage-backed securities. All securities are rated investment grade (BBB) or higher, with maturities of at least 1 year. 24 SEI INVESTMENTS / PROSPECTUS FUND FEES AND EXPENSES This table describes the fees and expenses that you may pay if you buy and hold Fund shares. ANNUAL FUND OPERATING EXPENSES
(EXPENSES DEDUCTED FROM FUND ASSETS) ---------------------------------------------------------- Investment Advisory Fees 0.28% ---------------------------------------------------------- Distribution (12b-1) Fees None ---------------------------------------------------------- Other Expenses 0.72% ---------------------------------------------------------- ---------------------------------------------------------- Total Annual Fund Operating Expenses 1.00%* ---------------------------------------------------------- ----------------------------------------------------------
* The Fund's total actual annual fund operating expenses for the most recent fiscal year were less than the amount shown above because the Adviser and Administrator are each waiving a portion of the fees in order to keep total operating expenses at a specified level. The Adviser and/or Administrator may discontinue all or part of their waivers at any time. With these fee waivers, the Fund's actual total operating expenses are as follows: SEI VP Core Fixed Income Fund -- Class A Shares 0.60% ---------------------------------------------------------
For more information about these fees, see "Investment Adviser and Sub-Advisers" and "Distribution of Fund Shares." The amount set forth above does not reflect the fees and expenses of the insurance contract that are charged by your insurance company. EXAMPLE This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and that you sell your shares at the end of the period. The Example also assumes that each year your investment has a 5% return, Fund operating expenses remain the same, and you reinvest all dividends and distributions. Although your actual costs and returns might be different, your approximate costs of investing $10,000 in the Fund would be:
1 YEAR 3 YEARS 5 YEARS 10 YEARS ------------------------------------------------------------------- SEI VP Core Fixed Income Fund -- Class A Shares $ 102 $ 318 $ 552 $ 1,225 -------------------------------------------------------------------
SEI INVESTMENTS / PROSPECTUS 25 SEI VP BOND INDEX FUND ------------------------------------------------------------------------------ FUND SUMMARY INVESTMENT GOAL: Investment results that correspond to the performance of the Lehman Aggregate Bond Index (Lehman Index) SHARE PRICE VOLATILITY: Medium PRINCIPAL INVESTMENT Utilizing a specialist sub-adviser, the STRATEGY: Fund invests in investment grade fixed income securities included in the Lehman Index.
-------------------------------------------------------------------------------- INVESTMENT STRATEGY The SEI VP Bond Index Fund invests exclusively in investment grade (I.E., BBB/Baa or better at the time of purchase) corporate and government fixed income securities, including mortgage-backed securities, of U.S. and foreign issuers included in the Lehman Index. The Fund's ability to replicate the performance of the Lehman Index will depend to some extent on the size and timing of cash flows into and out of the Fund, as well as on the level of the Fund's expenses. The Sub-Adviser makes no attempt to "manage" the Fund in the traditional sense (I.E., by using economic, market or financial analyses). Instead, the Sub-Adviser will hold a representative sample of the securities in the Lehman Index, selecting a limited number of issues to represent entire "classes" of securities, and dividing those classes into sectors based on issuer, quality and maturity. The Sub-Adviser will purchase various types of securities in an attempt to approximate the class and sector weightings of the Lehman Index. The Fund's Sub-Adviser may sell a security that has been downgraded or whose value has otherwise been impaired. The Fund in the aggregate generally will have a dollar-weighted average duration that is consistent with that of the Lehman Index (currently 4.5 years). WHAT ARE THE RISKS OF INVESTING IN THE FUND? The prices of the Fund's fixed income securities respond to economic developments, particularly interest rate changes, as well as to perceptions about the creditworthiness of individual issuers, including governments and their agencies. Generally, the Fund's fixed income securities will decrease in value if interest rates rise and vice versa, and the volatility of lower-rated securities is even greater than that of higher-rated securities. Also, longer-term securities are generally more volatile, so the average maturity or duration of these securities affects risk. Although the Fund's U.S. government securities are considered to be among the safest investments, they are not guaranteed against price movements due to changing interest rates. Obligations issued by some U.S. government agencies are backed by the U.S. Treasury, while others are backed solely by the ability of the agency to borrow from the U.S. Treasury or by the agency's own resources. Mortgage-backed securities are fixed income securities representing an interest in a pool of underlying mortgage loans. Mortgage-backed securities are sensitive to changes in interest rates, but may respond to these changes differently from other fixed income securities due to the possibility of prepayment of the underlying mortgage loans. As a result, it may not be possible to determine in advance the actual maturity date or average life of a mortgage-backed security. Rising interest rates tend to discourage refinancings, with the result that the average life and volatility of the security will increase, exacerbating its decrease in market price. When interest rates fall, however, mortgage-backed securities may not gain as much in market value because of the expectation of additional mortgage prepayments that must be reinvested at lower interest rates. Prepayment risk may make it difficult to calculate the average maturity of the Fund's mortgage-backed securities and, therefore, to assess the volatility risk of the Fund. 26 SEI INVESTMENTS / PROSPECTUS The privately issued mortgage-backed securities that the Fund invests in are not issued or guaranteed by the U.S. government or its agencies or instrumentalities and may bear a greater risk of nonpayment than securities that are backed by the U.S. Treasury. However, the timely payment of principal and interest normally is supported, at least partially, by various credit enhancements by banks and other financial institutions. There can be no assurance, however, that such credit enhancements will support full payment of the principal and interest on such obligations. In addition, changes in the credit quality of the entity which provides credit enhancement could cause losses to the Fund and affect its share price. The Fund is also subject to the risk that the performance of the Fund may deviate from the Lehman Index. The Sub-Adviser purchases only a relatively small portion of the securities in the Lehman Index, and performance of the Fund's portfolio of securities therefore may not match that of the Lehman Index. Depending on the Sub-Adviser's approach and the size of the Fund, the representative sample of securities in the Lehman Index that are actually held by the Fund may vary from time to time. In addition, the Fund is subject to the risk that its investment approach, which attempts to replicate the performance of the Lehman Index, may perform differently than other mutual funds which focus on particular fixed income market segments or invest in other asset classes. SEI INVESTMENTS / PROSPECTUS 27 PERFORMANCE INFORMATION As of May 1, 2002, the Fund had not commenced operations, and did not have a performance history. FUND FEES AND EXPENSES This table describes the fees and expenses that you may pay if you buy and hold Fund shares. ANNUAL FUND OPERATING EXPENSES
(EXPENSES DEDUCTED FROM FUND ASSETS) ----------------------------------------------------------- Investment Advisory Fees 0.07% ----------------------------------------------------------- Distribution (12b-1) Fees None ----------------------------------------------------------- Other Expenses 0.89%* ----------------------------------------------------------- ----------------------------------------------------------- Total Annual Fund Operating Expenses 0.96%** ----------------------------------------------------------- -----------------------------------------------------------
* Other expenses are based on estimated amounts for the current fiscal year. ** The Fund's total actual annual fund operating expenses for the current fiscal year are expected to be less than the amount shown above because the Adviser and Administrator will each voluntarily waive a portion of its fee in order to keep total operating expenses at a specified level. The Adviser and/or Administrator may discontinue all or part of their waivers at any time. With these fee waivers, the Fund's actual total operating expenses are expected to be as follows: SEI VP Bond Index Fund -- Class A Shares 0.38% ---------------------------------------------------------
For more information about these fees, see "Investment Adviser and Sub-Advisers" and "Distribution of Fund Shares." The amount set forth above does not reflect the fees and expenses of the insurance contract that are charged by your insurance company. EXAMPLE This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and that you sell your shares at the end of the period. The Example also assumes that each year your investment has a 5% return, Fund operating expenses remain the same, and you reinvest all dividends and distributions. Although your actual costs and returns might be different, your approximate costs of investing $10,000 in the Fund would be:
1 YEAR 3 YEARS --------------------------------------------------------- SEI VP Bond Index Fund -- Class A Shares $ 98 $ 306 ---------------------------------------------------------
28 SEI INVESTMENTS / PROSPECTUS SEI VP HIGH YIELD BOND FUND ------------------------------------------------------------------------------ FUND SUMMARY INVESTMENT GOAL: Total return SHARE PRICE VOLATILITY: High PRINCIPAL INVESTMENT Utilizing multiple specialist STRATEGY: sub-advisers that have high yield investment expertise, the Fund invests in high yield, high risk securities
-------------------------------------------------------------------------------- INVESTMENT STRATEGY Under normal circumstances, the SEI VP High Yield Bond Fund will invest at least 80% of its net assets in high yield fixed income securities. The Fund will invest primarily in fixed income securities rated below investment grade ("junk bonds"), including corporate bonds and debentures, convertible and preferred securities, and zero coupon obligations. The Fund uses a multi-manager approach, relying upon one or more Sub-Advisers to manage portions of the Fund's portfolio under the general supervision of SIMC. In managing the Fund's assets, the Sub-Advisers select securities that offer a high current yield as well as total return potential. The Fund's securities are diversified as to issuers and industries. The Fund's average weighted maturity may vary, and will generally not exceed ten years. There is no limit on the maturity or on the credit quality of any security. WHAT ARE THE RISKS OF INVESTING IN THE FUND? The prices of the Fund's fixed income securities respond to economic developments, particularly interest rate changes, as well as to perceptions about the creditworthiness of individual issuers, including governments and their agencies. Generally, the Fund's fixed income securities will decrease in value if interest rates rise and vice versa, and the volatility of lower-rated securities is even greater than that of higher-rated securities. Also, longer-term securities are generally more volatile, so the average maturity or duration of these securities affects risk. Junk bonds involve greater risks of default or downgrade and are more volatile than investment grade securities. Junk bonds involve a greater risk of price declines than investment grade securities due to actual or perceived changes in an issuer's creditworthiness. In addition, issuers of junk bonds may be more susceptible than other issuers to economic downturns. Junk bonds are subject to the risk that the issuer may not be able to pay interest or dividends and ultimately to repay principal upon maturity. Discontinuation of these payments could substantially adversely affect the market value of the security. The Fund is also subject to the risk that high yield securities may underperform other segments of the fixed income markets or the fixed income markets as a whole. SEI INVESTMENTS / PROSPECTUS 29 PERFORMANCE INFORMATION The bar chart and the performance table below illustrate the risks and volatility of an investment in the Fund. Of course, the Fund's past performance does not necessarily indicate how the Fund will perform in the future. This bar chart shows the performance of the Fund's Class A Shares for one year. The performance information shown is based on a full calendar year. EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
2001 4.00%
BEST QUARTER: 4.70% (03/31/01) WORST QUARTER: -3.27% (09/30/01) This table compares the Fund's average annual total returns for Class A Shares for the periods ended December 31, 2001 to those of the CS First Boston High Yield Index.
SINCE CLASS A SHARES 1 YEAR INCEPTION* ------------------------------------------------------------ SEI VP High Yield Bond Fund 4.00% 1.39% ------------------------------------------------------------ CS First Boston High Yield Index** 5.80% 1.04% ------------------------------------------------------------
* The Fund's inception date is April 5, 2000. The Index inception date is April 30, 2000. ** An index measures the market prices of a specific group of securities in a particular market or securities in a market sector. You cannot invest directly in an index. Unlike a mutual fund, an index does not have an investment adviser and does not pay any commissions or expenses. If an index had expenses, its performance would be lower. The CS First Boston High Yield Index is an unmanaged, trader-priced portfolio constructed to mirror the public high yield debt market. Revisions to the Index are effected weekly. The Index reflects the reinvestment of dividends. 30 SEI INVESTMENTS / PROSPECTUS FUND FEES AND EXPENSES This table describes the fees and expenses that you may pay if you buy and hold Fund shares. ANNUAL FUND OPERATING EXPENSES
(EXPENSES DEDUCTED FROM FUND ASSETS) ---------------------------------------------------------- Investment Advisory Fees 0.49% ---------------------------------------------------------- Distribution (12b-1) Fees None ---------------------------------------------------------- Other Expenses 0.82% ---------------------------------------------------------- ---------------------------------------------------------- Total Annual Fund Operating Expenses 1.31%* ---------------------------------------------------------- ----------------------------------------------------------
* The Fund's total actual annual fund operating expenses for the most recent fiscal year were less than the amount shown above because the Adviser and Administrator are each waiving a portion of the fees in order to keep total operating expenses at a specified level. The Adviser and/or Administrator may discontinue all or part of their waivers at any time. With these fee waivers, the Fund's actual total operating expenses are as follows: SEI VP High Yield Bond Fund -- Class A Shares 0.85% ---------------------------------------------------------
For more information about these fees, see "Investment Adviser and Sub-Advisers" and "Distribution of Fund Shares." The amount set forth above does not reflect the fees and expenses of the insurance contract that are charged by your insurance company. EXAMPLE This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and that you sell your shares at the end of the period. The Example also assumes that each year your investment has a 5% return, Fund operating expenses remain the same, and you reinvest all dividends and distributions. Although your actual costs and returns might be different, your approximate costs of investing $10,000 in the Fund would be:
1 YEAR 3 YEARS 5 YEARS 10 YEARS ------------------------------------------------------------------ SEI VP High Yield Bond Fund -- Class A Shares $ 133 $ 415 $ 718 $ 1,579 ------------------------------------------------------------------
SEI INVESTMENTS / PROSPECTUS 31 SEI VP INTERNATIONAL FIXED INCOME FUND ------------------------------------------------------------------------------ FUND SUMMARY INVESTMENT GOAL: Capital appreciation and current income SHARE PRICE VOLATILITY: High PRINCIPAL INVESTMENT Utilizing a specialist sub-adviser, the STRATEGY: Fund invests in investment grade fixed income securities of foreign government and corporate issuers
-------------------------------------------------------------------------------- INVESTMENT STRATEGY Under normal circumstances, the SEI VP International Fixed Income Fund will invest at least 80% of its net assets in fixed income securities. The Fund will invest primarily in foreign government, corporate, and mortgage-backed securities. In selecting investments for the Fund, the Sub-Adviser chooses investment grade securities issued by corporations and governments located in various developed foreign countries, looking for opportunities for capital appreciation and gain, as well as current income. The Fund's portfolio is not hedged against currency fluctuations relative to the U.S. dollar. There are no restrictions on the Fund's average portfolio maturity or on the maturity of any specific security. WHAT ARE THE RISKS OF INVESTING IN THE FUND? The prices of the Fund's fixed income securities respond to economic developments, particularly interest rate changes, as well as to perceptions about the creditworthiness of individual issuers, including governments and their agencies. Generally, the Fund's fixed income securities will decrease in value if interest rates rise and vice versa, and the volatility of lower-rated securities is even greater than that of higher-rated securities. Also, longer-term securities are generally more volatile, so the average maturity or duration of these securities affects risk. In the case of foreign securities, price fluctuations will reflect international economic and political events, as well as changes in currency valuations relative to the U.S. dollar. Investing in issuers located in foreign countries poses distinct risks since political and economic events unique to a country or region will affect those markets and their issuers. These events will not necessarily affect the U.S. economy or similar issuers located in the United States. In addition, investments in foreign countries are generally denominated in a foreign currency. As a result, changes in the value of those currencies compared to the U.S. dollar may affect (positively or negatively) the value of a Fund's investments. These currency movements may happen separately from and in response to events that do not otherwise affect the value of the security in the issuer's home country. These various risks will be even greater for investments in emerging market countries since political turmoil and rapid changes in economic conditions are more likely to occur in these countries. The Fund is non-diversified, which means that it may invest in the securities of relatively few issuers. As a result, the Fund may be more susceptible to a single adverse economic or political occurrence affecting one or more of these issuers, and may experience increased volatility due to its investments in those securities. The Fund is also subject to the risk that developed international fixed income securities may underperform other segments of the fixed income markets or the fixed income markets as a whole. 32 SEI INVESTMENTS / PROSPECTUS PERFORMANCE INFORMATION The bar chart and the performance table below illustrate the risks and volatility of an investment in the Fund. Of course, the Fund's past performance does not necessarily indicate how the Fund will perform in the future. This bar chart shows the performance of the Fund's Class A Shares for one year. The performance information shown is based on a full calendar year. EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
2001 -5.32%
BEST QUARTER: 6.70% (09/30/01) WORST QUARTER: -5.36% (03/31/01) This table compares the Fund's average annual total returns for Class A Shares for the periods ended December 31, 2001 to those of the Salomon WGBI Non-U.S. Index.
SINCE CLASS A SHARES 1 YEAR INCEPTION* ------------------------------------------------------------ SEI VP International Fixed Income Fund -5.32% -3.71% ------------------------------------------------------------ Salomon WGBI Non-U.S. Index** -3.55% -0.39% ------------------------------------------------------------
* The Fund's inception date is April 5, 2000. The Index inception date is April 30, 2000. ** An index measures the market prices of a specific group of securities in a particular market or securities in a market sector. You cannot invest directly in an index. Unlike a mutual fund, an index does not have an investment adviser and does not pay any commissions or expenses. If an index had expenses, its performance would be lower. The Salomon WGBI Non-U.S. Index is a widely recognized index of government bonds issued by approximately 12 foreign countries. The index targets institutionally traded bonds. SEI INVESTMENTS / PROSPECTUS 33 FUND FEES AND EXPENSES This table describes the fees and expenses that you may pay if you buy and hold Fund shares. ANNUAL FUND OPERATING EXPENSES
(EXPENSES DEDUCTED FROM FUND ASSETS) ---------------------------------------------------------- Investment Advisory Fees 0.30% ---------------------------------------------------------- Distribution (12b-1) Fees None ---------------------------------------------------------- Other Expenses 1.21% ---------------------------------------------------------- ---------------------------------------------------------- Total Annual Fund Operating Expenses 1.51%* ---------------------------------------------------------- ----------------------------------------------------------
* The Fund's total actual annual fund operating expenses for the most recent fiscal year were less than the amount shown above because the Administrator is waiving a portion of the fees in order to keep total operating expenses at a specified level. The Administrator may discontinue all or part of its waiver at any time. With this fee waiver, the Fund's actual total operating expenses are as follows: SEI VP International Fixed Income Fund -- Class A Shares 1.00% ---------------------------------------------------------
For more information about these fees, see "Investment Adviser and Sub-Advisers" and "Distribution of Fund Shares." The amount set forth above does not reflect the fees and expenses of the insurance contract that are charged by your insurance company. EXAMPLE This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and that you sell your shares at the end of the period. The Example also assumes that each year your investment has a 5% return, Fund operating expenses remain the same, and you reinvest all dividends and distributions. Although your actual costs and returns might be different, your approximate costs of investing $10,000 in the Fund would be:
1 YEAR 3 YEARS 5 YEARS 10 YEARS ------------------------------------------------------------------ SEI VP International Fixed Income Fund -- Class A Shares $ 154 $ 477 $ 824 $ 1,802 ------------------------------------------------------------------
34 SEI INVESTMENTS / PROSPECTUS SEI VP EMERGING MARKETS DEBT FUND ------------------------------------------------------------------------------ FUND SUMMARY INVESTMENT GOAL: Total return SHARE PRICE VOLATILITY: High to very high PRINCIPAL INVESTMENT Utilizing a specialist sub-adviser, the STRATEGY: Fund invests in U.S. dollar denominated debt securities of emerging market issuers
-------------------------------------------------------------------------------- INVESTMENT STRATEGY Under normal circumstances, the SEI VP Emerging Markets Debt Fund will invest at least 80% of its net assets in fixed income securities of emerging markets issuers. The Fund will invest primarily in U.S. dollar denominated debt securities of government, government-related and corporate issuers in emerging markets countries, as well as entities organized to restructure the outstanding debt of such issuers. The Sub-Adviser will spread the Fund's holdings across a number of countries and industries to limit its exposure to a single emerging market economy. There are no restrictions on the Fund's average portfolio maturity, or on the maturity of any specific security. There is no minimum rating standard for the Fund's securities, and the Fund's securities will generally be in the lower or lowest rating categories (including those below investment grade, commonly referred to as "junk bonds"). WHAT ARE THE RISKS OF INVESTING IN THE FUND? The prices of the Fund's fixed income securities respond to economic developments, particularly interest rate changes, as well as to perceptions about the creditworthiness of individual issuers, including governments and their agencies. Generally, the Fund's fixed income securities will decrease in value if interest rates rise and vice versa, and the volatility of lower-rated securities is even greater than that of higher-rated securities. Also, longer-term securities are generally more volatile, so the average maturity or duration of these securities affects risk. Investing in issuers located in foreign countries poses distinct risks since political and economic events unique to a country or region will affect those markets and their issuers. These events will not necessarily affect the U.S. economy or similar issuers located in the United States. In addition, investments in foreign countries are generally denominated in a foreign currency. As a result, changes in the value of those currencies compared to the U.S. dollar may affect (positively or negatively) the value of a Fund's investments. These currency movements may happen separately from and in response to events that do not otherwise affect the value of the security in the issuer's home country. These various risks will be even greater for investments in emerging market countries. "Junk" bonds involve greater risks of default or downgrade and are more volatile than investment grade securities. Junk bonds involve greater risk of price declines than investment grade securities due to actual or perceived changes in an issuer's creditworthiness. In addition, issuers of junk bonds may be more susceptible than other issuers to economic downturns. Junk bonds are subject to the risk that the issuer may not be able to pay interest or dividends and ultimately to repay principal upon maturity. Discontinuation of these payments could substantially adversely affect the market value of the security. The volatility of junk bonds and certain foreign sovereign debt securities is even greater since the prospects for repayment of principal and interest of many of these securities is speculative. Some may even be in default. As an incentive to invest in these risky securities, they tend to offer higher returns. SEI INVESTMENTS / PROSPECTUS 35 Emerging market countries are countries that the World Bank or the United Nations considers to be emerging or developing. Emerging markets may be more likely to experience political turmoil or rapid changes in market or economic conditions than more developed countries. Emerging market countries often have less uniformity in accounting and reporting requirements and less reliable securities valuations. It is sometimes difficult to obtain and enforce court judgments in such countries and there is often a greater potential for nationalization and/or expropriation of assets by the government of an emerging market country. In addition, the financial stability of issuers (including governments) in emerging markets countries may be more precarious than in other countries. As a result, there will tend to be an increased risk of price volatility associated with the Fund's investments in emerging market countries, which may be magnified by currency fluctuations relative to the U.S. dollar. The foreign sovereign debt securities and "Brady Bonds" the Fund purchases involve specific risks, including the risk that: (i) the governmental entity that controls the repayment of sovereign debt may not be willing or able to repay the principal and/or interest when it becomes due, due to factors such as debt service burden, political constraints, cash flow problems and other national economic factors; (ii) governments may default on their sovereign debt, which may require holders of such sovereign debt to participate in debt rescheduling or additional lending to defaulting governments; and (iii) there may be no bankruptcy proceeding by which defaulted sovereign debt may be collected in whole or in part. The Fund is non-diversified, which means that it may invest in the securities of relatively few issuers. As a result, the Fund may be more susceptible to a single adverse economic or political occurrence affecting one or more of these issuers, and may experience increased volatility due to its investments in those securities. The Fund is also subject to the risk that emerging markets debt securities may underperform other segments of the fixed income markets or the fixed income markets as a whole. 36 SEI INVESTMENTS / PROSPECTUS PERFORMANCE INFORMATION The bar chart and the performance table below illustrate the risks and volatility of an investment in the Fund. Of course, the Fund's past performance does not necessarily indicate how the Fund will perform in the future. This bar chart shows the performance of the Fund's Class A Shares for one year. The performance information shown is based on a full calendar year. EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
2001 12.56%
BEST QUARTER: 8.44% (12/31/01) WORST QUARTER: -4.71% (09/30/01) This table compares the Fund's average annual total returns for Class A Shares for the periods ended December 31, 2001 to those of the J.P. Morgan EMBI Plus Index.
SINCE CLASS A SHARES 1 YEAR INCEPTION* ------------------------------------------------------------- SEI VP Emerging Markets Debt Fund 12.56% 11.04% ------------------------------------------------------------- J.P. Morgan EMBI Plus Index** -0.79% 5.14% -------------------------------------------------------------
* The Fund's inception date is April 5, 2000. The Index inception date is April 30, 2000. ** An index measures the market prices of a specific group of securities in a particular market or securities in a market sector. You cannot invest directly in an index. Unlike a mutual fund, an index does not have an investment adviser and does not pay any commissions or expenses. If an index had expenses, its performance would be lower. The J.P. Morgan EMBI Plus Index is a widely-recognized, market value-weighted (higher market value securities have more influence than lower market value securities) index of bonds issued by emerging markets countries. The index currently includes Eurobonds and Brady Bonds issued by Argentina, Brazil, Bulgaria, Mexico, Nigeria, the Philippines, Poland and Venezuela. SEI INVESTMENTS / PROSPECTUS 37 FUND FEES AND EXPENSES This table describes the fees and expenses that you may pay if you buy and hold Fund shares. ANNUAL FUND OPERATING EXPENSES
(EXPENSES DEDUCTED FROM FUND ASSETS) ---------------------------------------------------------- Investment Advisory Fees 0.85% ---------------------------------------------------------- Distribution (12b-1) Fees None ---------------------------------------------------------- Other Expenses 1.22% ---------------------------------------------------------- ---------------------------------------------------------- Total Annual Fund Operating Expenses 2.07%* ---------------------------------------------------------- ----------------------------------------------------------
* The Fund's total actual annual fund operating expenses for the most recent fiscal year were less than the amount shown above because the Adviser and Administrator are each waiving a portion of the fees in order to keep total operating expenses at a specified level. The Adviser and/or Administrator may discontinue all or part of their waivers at any time. With these fee waivers, the Fund's actual total operating expenses are as follows: SEI VP Emerging Markets Debt Fund -- Class A Shares 1.35% ---------------------------------------------------------
For more information about these fees, see "Investment Adviser and Sub-Advisers" and "Distribution of Fund Shares." The amount set forth above does not reflect the fees and expenses of the insurance contract that are charged by your insurance company. EXAMPLE This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and that you sell your shares at the end of the period. The Example also assumes that each year your investment has a 5% return, Fund operating expenses remain the same, and you reinvest all dividends and distributions. Although your actual costs and returns might be different, your approximate costs of investing $10,000 in the Fund would be:
1 YEAR 3 YEARS 5 YEARS 10 YEARS ------------------------------------------------------------------ SEI VP Emerging Markets Debt Fund -- Class A Shares $ 210 $ 649 $ 1,114 $ 2,400 ------------------------------------------------------------------
38 SEI INVESTMENTS / PROSPECTUS SEI VP PRIME OBLIGATION FUND ------------------------------------------------------------------------------ FUND SUMMARY INVESTMENT GOAL: Preserving principal and maintaining liquidity while providing current income SHARE PRICE VOLATILITY: Very low PRINCIPAL INVESTMENT The Fund is professionally managed to STRATEGY: provide liquidity, diversification and a competitive yield by investing in high quality, short-term money market instruments
-------------------------------------------------------------------------------- INVESTMENT STRATEGY The SEI VP Prime Obligation Fund is comprised of short-term debt obligations of U.S. issuers that are rated in one of the two highest rating categories by nationally recognized statistical rating organizations or securities that the Sub-Adviser determines are of comparable quality. The Fund invests in: (i) commercial paper (including asset-backed commercial paper) rated in the highest short-term rating category by at least one nationally recognized statistical rating organization; (ii) certificates of deposit, time deposits, bankers' acceptances, bank notes and other obligations of U.S. commercial banks or savings and loan institutions that meet certain asset requirements; (iii) short-term corporate obligations (including asset-backed securities) rated in one of the two highest short-term rating categories; (iv) short-term obligations issued by state and local governments; and (v) U.S. Treasury obligations and obligations issued or guaranteed as to principal and interest by agencies or instrumentalities of the U.S. government. The Fund may also enter into fully-collateralized repurchase agreements. Using a top-down strategy and bottom-up security selection, the Sub-Adviser seeks securities with an acceptable maturity (consistent with SEC requirements for money market funds), that are marketable and liquid, offer competitive yields, and are issued by issuers that are on a sound financial footing. The Sub-Adviser also considers factors such as the anticipated level of interest rates and the maturity of individual securities relative to the maturity of the Fund as a whole. The Fund follows strict guidelines about the credit quality, maturity and diversification of its investments. With respect to credit quality and maturity, these guidelines are more restrictive than Investment Company Act rules applicable to money market funds. WHAT ARE THE RISKS OF INVESTING IN THE FUND? An investment in the Fund is subject to income risk, which is the possibility that the Fund's yield will decline due to falling interest rates. Although the Fund's U.S. government securities are considered to be among the safest investments, they are not guaranteed against price movements due to changing interest rates. Obligations issued by some U.S. government agencies are backed by the U.S. Treasury, while others are backed solely by the ability of the agency to borrow from the U.S. Treasury or by the agency's own resources. AN INVESTMENT IN THE FUND IS NOT A BANK DEPOSIT. ALTHOUGH THE FUND SEEKS TO MAINTAIN A CONSTANT PRICE PER SHARE OF $1.00, YOU MAY LOSE MONEY BY INVESTING IN THE FUND. SEI INVESTMENTS / PROSPECTUS 39 PERFORMANCE INFORMATION The bar chart and the performance table below illustrate the risks and volatility of an investment in the Fund. Of course, the Fund's past performance does not necessarily indicate how the Fund will perform in the future. This bar chart shows the performance of the Fund's Class A Shares for one year. The performance information shown is based on a full calendar year. EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
2001 3.80%
BEST QUARTER: 1.36% (03/31/01) WORST QUARTER: 0.48% (12/31/01) This table shows the Fund's average annual total returns for Class A Shares for the periods ended December 31, 2001.
SINCE CLASS A SHARES 1 YEAR INCEPTION* ------------------------------------------------------------ SEI VP Prime Obligation Fund 3.80% 4.82% ------------------------------------------------------------
* The Fund's inception date is April 5, 2000. Please call 1-800-DIAL-SEI to obtain the Fund's current yield. 40 SEI INVESTMENTS / PROSPECTUS FUND FEES AND EXPENSES This table describes the fees and expenses that you may pay if you buy and hold Fund shares. ANNUAL FUND OPERATING EXPENSES
(EXPENSES DEDUCTED FROM FUND ASSETS) ---------------------------------------------------------- Investment Advisory Fees 0.08% ---------------------------------------------------------- Distribution (12b-1) Fees None ---------------------------------------------------------- Other Expenses 0.85% ---------------------------------------------------------- ---------------------------------------------------------- Total Annual Fund Operating Expenses 0.93%* ---------------------------------------------------------- ----------------------------------------------------------
* The Fund's total actual annual fund operating expenses for the most recent fiscal year were less than the amount shown above because the Administrator is waiving a portion of the fees in order to keep total operating expenses at a specified level. The Administrator may discontinue all or part of its waivers at any time. With these fee waivers, the Fund's actual total operating expenses are as follows: SEI VP Prime Obligation Fund -- Class A Shares 0.44% ---------------------------------------------------------
For more information about these fees, see "Investment Adviser and Sub-Advisers" and "Distribution of Fund Shares." The amount set forth above does not reflect the fees and expenses of the insurance contract that are charged by your insurance company. EXAMPLE This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and that you sell your shares at the end of the period. The Example also assumes that each year your investment has a 5% return, Fund operating expenses remain the same, and you reinvest all dividends and distributions. Although your actual costs and returns might be different, your approximate costs of investing $10,000 in the Fund would be:
1 YEAR 3 YEARS 5 YEARS 10 YEARS ------------------------------------------------------------------ SEI VP Prime Obligation Fund -- Class A Shares $ 95 $ 296 $ 515 $ 1,143 ------------------------------------------------------------------
SEI INVESTMENTS / PROSPECTUS 41 MORE INFORMATION ABOUT FUND INVESTMENTS This prospectus describes the Funds' primary investment strategies. However, each Fund also may invest in other securities, use other strategies and engage in other investment practices. These investments and strategies, as well as those described in this prospectus, are described in detail in the Funds' Statement of Additional Information (SAI). The investments and strategies described in this prospectus are those that the Sub-Advisers use under normal conditions. During unusual economic or market conditions or for temporary defensive or liquidity purposes, each Fund (except the SEI VP Prime Obligation and SEI VP S&P 500 Index Funds) may invest up to 100% of its assets in cash, money market instruments, repurchase agreements and other short-term obligations that would not ordinarily be consistent with the Funds' objectives. A Fund will do so only if SIMC or the Sub-Advisers believe that the risk of loss outweighs the opportunity for capital gains or higher income. During unusual economic or market conditions, or for temporary defensive or liquidity purposes, the SEI VP Prime Obligation Fund may invest up to 100% of its assets in cash or cash equivalents that would not be consistent with the Fund's objectives. Of course, there is no guarantee that any Fund will achieve its investment goal. INVESTMENT ADVISER AND SUB-ADVISERS SEI INVESTMENTS MANAGEMENT CORPORATION (SIMC) ACTS AS THE MANAGER OF MANAGERS OF THE FUNDS, AND IS RESPONSIBLE FOR THE INVESTMENT PERFORMANCE OF THE FUNDS SINCE IT ALLOCATES EACH FUND'S ASSETS TO ONE OR MORE SUB-ADVISERS AND RECOMMENDS HIRING OR CHANGING SUB-ADVISERS TO THE BOARD OF TRUSTEES. Each Sub-Adviser makes investment decisions for the assets it manages and continuously reviews, supervises and administers its investment program. SIMC oversees the Sub-Advisers to ensure compliance with the Funds' investment policies and guidelines, and monitors each Sub-Adviser's adherence to its investment style. The Board of Trustees supervises SIMC and the Sub-Advisers; establishes policies that they must follow in their management activities; and oversees the hiring and termination of Sub-Advisers recommended by SIMC. SIMC pays the Sub-Advisers out of the investment advisory fees it receives. SIMC, an SEC-registered adviser, located at One Freedom Valley Drive, Oaks, PA 19456, serves as the Adviser to the Funds. As of December 31, 2001, SIMC had approximately $50.2 billion in assets under management. For the fiscal year ended December 31, 2001, SIMC received investment advisory fees, after fee waivers, as a percentage of each Fund's average net assets, at the following annual rates: SEI VP Large Cap Value Fund 0.23% --------------------------------------------------------- SEI VP Large Cap Growth Fund 0.32% --------------------------------------------------------- SEI VP Small Cap Value Fund 0.61% --------------------------------------------------------- SEI VP Small Cap Growth Fund 0.62% --------------------------------------------------------- SEI VP International Equity Fund 0.47% --------------------------------------------------------- SEI VP Emerging Markets Equity Fund 0.73% --------------------------------------------------------- SEI VP Core Fixed Income Fund 0.20% --------------------------------------------------------- SEI VP High Yield Bond Fund 0.46% --------------------------------------------------------- SEI VP International Fixed Income Fund 0.30% --------------------------------------------------------- SEI VP Emerging Markets Debt Fund 0.53% --------------------------------------------------------- SEI VP Prime Obligation Fund 0.08% ---------------------------------------------------------
42 SEI INVESTMENTS / PROSPECTUS Each of the following Funds will pay SIMC advisory fees, as a percentage of each Fund's average net assets, at the following annual rates: SEI VP S&P 500 Index Fund 0.03% --------------------------------------------------------- SEI VP Bond Index Fund 0.07% ---------------------------------------------------------
SUB-ADVISERS AND PORTFOLIO MANAGERS Each of the Sub-Advisers listed below has been selected by SIMC and approved by the Board of Trustees to serve as a Sub-Adviser for the specified Fund. At any one point in time, however, a particular Sub-Adviser listed below may not have assets allocated to it. SEI VP LARGE CAP VALUE FUND: DEUTSCHE ASSET MANAGEMENT INC.: Deutsche Asset Management Inc. (DAMI), located at 280 Park Avenue, New York, New York 10017, serves as a Sub-Adviser to the SEI VP Large Cap Value Fund. James A. Creighton, Managing Director and Head of Global Index, serves as a portfolio manager of the portion of the SEI VP Large Cap Value Fund's assets allocated to DAMI. Prior to joining DAMI in 1999, Mr. Creighton was a Managing Director and Chief Investment Officer of Global Index Investments at Barclays Global Investors and prior to that division president of Barclays Global Investors Canada Limited. IRIDIAN ASSET MANAGEMENT LLC: Iridian Asset Management LLC (Iridian), located at 276 Post Road West, Westport, Connecticut 06880-4704, has been selected as a Sub-Adviser to the SEI VP Large Cap Value Fund. As of the date of this prospectus, no assets were allocated to Iridian. However, SIMC may allocate assets to Iridian at any time. David Cohen, Principal of Iridian, would serve as portfolio manager of the portion of the SEI VP Large Cap Value Fund's assets allocated to Iridian. Mr. Cohen is one of Iridian's founding partners, and has 21 years of investment experience. Additionally, since November 1995, Mr. Cohen has been a Portfolio Manager at Arnhold and S. Bleichroeder Advisers, Inc. with responsibility for First Eagle Fund of America, a separate series of First Eagle Trust, a registered investment company. LSV ASSET MANAGEMENT: LSV Asset Management (LSV), located at 200 West Madison Street, Chicago, Illinois 60606, serves as a Sub-Adviser to the SEI VP Large Cap Value Fund. Josef Lakonishok, Robert Vishny and Menno Vermeulen of LSV serve as portfolio managers of the portion of the SEI VP Large Cap Value Fund's assets allocated to LSV. They are all partners of LSV. An affiliate of SIMC owns an interest in LSV. SIMC pays LSV a fee, which is calculated and paid monthly, based on an annual rate of 0.20% of the average monthly market value of the assets of the Fund managed by LSV. SANFORD C. BERNSTEIN & CO., LLC: Sanford C. Bernstein & Co., LLC (Bernstein), located at 1345 Avenue of the Americas, New York, New York 10105, has been selected as a Sub-Adviser to the SEI VP Large Cap Value Fund. As of the date of this prospectus, no assets were allocated to Bernstein. However, SIMC may allocate assets to Bernstein at any time. Lewis A. Sanders and Marilyn Goldstein Fedak would serve as portfolio managers of the portion of the SEI VP Large Cap Value Fund's assets allocated to Bernstein. Mr. Sanders is a Director of Bernstein since September 2000 and is Vice Chairman, Chief Investment Officer and a Director of Alliance Capital Management Corporation since October 2000. Mr. Sanders previously served as Chairman of the Board of Directors and Chief Executive Officer of Sanford C. Bernstein & Co., Inc. since 1993. Ms. Fedak, Executive Vice President and Chief Investment Officer - U.S. Value Equities of Alliance Capital Management Corporation since October 2000 and prior to that Chief Investment Officer and Chairman of the U.S. Equity Investment Policy Group at Sanford C. Bernstein Co., Inc. since 1993. SEI VP LARGE CAP GROWTH FUND: ALLIANCE CAPITAL MANAGEMENT L.P.: Alliance Capital Management L.P. (Alliance), located at 1345 Avenue of the Americas, New York, New York 10105, serves as a Sub-Adviser to the SEI VP Large Cap Growth Fund. A committee of investment professionals at Alliance manages the portion of the SEI VP Large Cap Growth Fund's assets allocated to Alliance. SEI INVESTMENTS / PROSPECTUS 43 DUNCAN-HURST CAPITAL MANAGEMENT INC.: Duncan-Hurst Capital Management Inc. (Duncan-Hurst), located at 4365 Executive Drive, Suite 1520, San Diego, California 92121, has been selected as a Sub-Adviser to the SEI VP Large Cap Growth Fund. As of the date of this prospectus, no assets were allocated to Duncan-Hurst. However, SIMC may allocate assets to Duncan-Hurst at any time. David Magee would serve as portfolio manager of the portion of the SEI VP Large Cap Growth Fund's assets allocated to Duncan-Hurst. Mr. Magee joined Duncan-Hurst in 1992 and is Vice President and Portfolio Manager. He has over 18 years of investment experience. MONTAG & CALDWELL INC.: Montag & Caldwell Inc. (Montag), located at 3455 Peachtree Road NE, Suite 1200, Atlanta, Georgia 30326-3248, has been selected as a Sub-Adviser to the SEI VP Large Cap Growth Fund. As of the date of this prospectus, no assets were allocated to Montag. However, SIMC may allocate assets to Montag at any time. William A. Vogel, Executive Vice President of Montag, would serve as portfolio manager of the portion of the SEI VP Large Cap Growth Fund's assets allocated to Montag. Mr. Vogel has been a portfolio manager at Montag for 14 years, and has 26 years of investment experience. PEREGRINE CAPITAL MANAGEMENT INC.: Peregrine Capital Management Inc. (Peregrine), located at 800 LaSalle Avenue, Minneapolis, Minnesota 55402-2018, serves as a Sub-Adviser to the SEI VP Large Cap Growth Fund. John Dale, Senior Vice President and Portfolio Manager, and Gary Nussbaum, Senior Vice President and Portfolio Manager, serve as portfolio managers of the portion of the SEI VP Large Cap Growth Fund's assets allocated to Peregrine. Mr. Dale joined Peregrine in 1987, and has 33 years of investment management experience. Mr. Nussbaum joined Peregrine in 1990, and has 13 years of investment management experience. TRANSAMERICA INVESTMENT MANAGEMENT, LLC: Transamerica Investment Management, LLC (TIM), located at 1150 S. Olive St., 27th Floor, Los Angeles, California 90015, has been selected as a Sub-Adviser to the SEI VP Large Cap Growth Fund. As of the date of this prospectus, no assets were allocated to TIM. However, SIMC may allocate assets to TIM at any time. Jeffrey Van Harte, CFA, Senior Vice President, Portfolio Manager and Head of Equities, and Gary Rolle, CFA, President and Chief Investment Officer, of TIM would serve as portfolio managers of the portion of the SEI VP Large Cap Growth Fund's assets allocated to TIM. Mr. Van Harte has been with TIM and its predecessor firm since 1980 and has over 15 years of investment management experience. Mr. Rolle has been with TIM and its predecessor firm since 1967 and has over 30 years of investment management experience. SEI VP S&P 500 INDEX FUND: BARCLAYS GLOBAL FUND ADVISORS: Barclays Global Fund Advisors (BGFA), located at 45 Fremont Street, San Francisco, California 94105, serves as Sub-Adviser to the SEI VP S&P 500 Index Fund. SEI VP SMALL CAP VALUE FUND: ARTISAN PARTNERS LIMITED PARTNERSHIP: Artisan Partners Limited Partnership (Artisan), located at 1000 N. Water Street, Suite 1770, Milwaukee, Wisconsin 53202, has been selected as a Sub-Adviser to the SEI VP Small Cap Value Fund. As of the date of this prospectus, no assets were allocated to Artisan. However, SIMC may allocate assets to Artisan at any time. Scott Satterwhite and James C. Kieffer, both Managing Directors of Artisan, would serve as portfolio managers of the portion of the SEI VP Small Cap Value Fund's assets allocated to Artisan. Prior to joining Artisan in 1997, Mr. Satterwhite was a portfolio manager at Wachovia Bank, N.A., and Mr. Kieffer was a research analyst at the investment firm McColl Partners. CHARTWELL INVESTMENT PARTNERS: Chartwell Investment Partners (Chartwell), located at 1235 Westlakes Drive, Suite 330, Berwyn, Pennsylvania 19312, has been selected as a Sub-Adviser to the SEI VP Small Cap Value Fund. As of the date of this prospectus, no assets were allocated to Chartwell. However, SIMC may allocate assets to Chartwell at any time. David C. Dalrymple, Managing Partner and Senior Portfolio Manager, and Babak Zenouzi, Partner and Senior Portfolio Manager, would serve as portfolio managers of the portion of the SEI VP Small Cap Value Fund's assets allocated to Chartwell. Mr. Dalrymple has been with Chartwell since 1997. Prior to joining Chartwell, Mr. Dalrymple was a portfolio manager with 44 SEI INVESTMENTS / PROSPECTUS Delaware Investment Advisers from 1991-1997. Mr. Zenouzi joined the firm in November 1999 after seven years with Delaware Investment Advisers, where he served as a Portfolio Manager. Mr. Dalrymple and Mr. Zenouzi both have 16 years of investment experience. DAVID J. GREENE AND COMPANY, LLC: David J. Greene and Company, LLC (David J. Greene), located at 599 Lexington Avenue, 12th Floor, New York, New York 10022, has been selected as a Sub-Adviser to the SEI VP Small Cap Value Fund. As of the date of this prospectus, no assets were allocated to David J. Greene. However, SIMC may allocate assets to David J. Greene at any time. Michael C. Greene, Chief Executive Officer, and Benjamin H. Nahum, Vice President and Research Analyst, of David J. Greene would serve as portfolio managers of the portion of the SEI VP Small Cap Value Fund's assets allocated to David J. Greene. Messrs. Greene and Nahum have been Principals of the firm for the past five years. LSV ASSET MANAGEMENT: LSV Asset Management (LSV), located at 200 West Madison Street, Chicago, Illinois 60606, serves as a Sub-Adviser to the SEI VP Small Cap Value Fund. Josef Lakonishok, Robert Vishny and Menno Vermeulen of LSV serve as portfolio managers of the portion of the SEI VP Small Cap Value Fund's assets allocated to LSV. They all are partners of LSV. An affiliate of SIMC owns an interest in LSV. SIMC pays LSV a fee, which is calculated and paid monthly, based on an annual rate of 0.50% of the average monthly market value of the assets of the Fund managed by LSV. SECURITY CAPITAL RESEARCH AND MANAGEMENT INCORPORATED: Security Capital Research and Management Incorporated (SC-R&M), located at 11 South LaSalle Street, 2nd Floor, Chicago, Illinois 60603, has been selected as a Sub-Adviser to the SEI VP Small Cap Value Fund. As of the date of this prospectus, no assets were allocated to SC-R&M. However, SIMC may allocate assets to SC-R&M at any time. Anthony R. Manno Jr., Kenneth D. Statz, and Kevin W. Bedell comprise the Portfolio Management Committee of SC-R&M. The Portfolio Management Committee would be responsible for determining the portfolio composition for the Fund's assets allocated to SC-R&M. The members of the Portfolio Management Committee have an average of 19 years of investment experience. STERLING CAPITAL MANAGEMENT: Sterling Capital Management (Sterling), located at One Wachovia Center, 301 College Street, Suite 3200, Charlotte, North Carolina 28202, serves as a Sub-Adviser to the SEI VP Small Cap Value Fund. Eduardo A. Brea, CFA, and Brian R. Walton, CFA, serve as portfolio managers of the portion of the SEI VP Small Cap Value Fund's assets allocated to Sterling. Mr. Brea and Mr. Walton both joined Sterling in 1995, and each is a Managing Director, Equity Portfolio Manager and Analyst. Mr. Brea and Mr. Walton each have over 11 years of investment experience. SEI VP SMALL CAP GROWTH FUND: MAZAMA CAPITAL MANAGEMENT, INC.: Mazama Capital Management, Inc. (Mazama), located at One Southwest Columbia Street, Suite 1860, Portland, Oregon 97258, has been selected as a Sub-Adviser to the SEI VP Small Cap Growth Fund. As of the date of this prospectus, no assets were allocated to Mazama. However, SIMC may allocate assets to Mazama at any time. Ron Sauer and Stephen Brink, CFA, of Mazama would serve as portfolio managers of the portion of the SEI VP Small Cap Growth Fund's assets allocated to Mazama. Prior to founding Mazama, Mr. Sauer served as President and Director of Research at Black & Company and Mr. Brink served as Chief Investment Officer for the Pacific Northwest office of U.S. Trust. Mr. Sauer and Mr. Brink have over 20 and 23 years of investment experience, respectively. MCKINLEY CAPITAL MANAGEMENT, INC.: McKinley Capital Management, Inc. (McKinley), located at 3301 C Street, Suite 500, Anchorage, Alaska 99503, has been selected as a Sub-Adviser to the SEI VP Small Cap Growth Fund. As of the date of this prospectus, no assets were allocated to McKinley. However, SIMC may allocate assets to McKinley at any time. Robert B. Gillam, Frederic H. Parke and Sheldon Lien would serve as portfolio managers of the portion of the SEI VP Small Cap Growth Fund's assets allocated to McKinley. Mr. Gillam has been the Chief Investment Officer at McKinley since the firm's inception in 1990, and has over 21 years investment experience. Prior to joining McKinley in 1997, Mr. Parke was a Trader and Portfolio Manager at TransGlobal Investments from 1995 to 1997. Mr. Parke has 20 years of investment experience. Mr. Lien has been with McKinley since 1995. SEI INVESTMENTS / PROSPECTUS 45 NICHOLAS-APPLEGATE CAPITAL MANAGEMENT: Nicholas-Applegate Capital Management (Nicholas-Applegate), located at 600 West Broadway, Suite 2900, San Diego, California 92101, has been selected as a Sub-Adviser to the SEI VP Small Cap Growth Fund. As of the date of this prospectus, no assets were allocated to Nicholas-Applegate. However, SIMC may allocate assets to Nicholas-Applegate at any time. Catherine Nicholas serves as Chief Investment Officer of Nicholas- Applegate overseeing the firm's global equity management and trading strategies. Stacey R. Nutt, Ph.D. is the lead portfolio manager of the portfolio management team responsible for the day-to-day management of the portion of the SEI VP Small Cap Growth Fund's assets allocated to Nicholas-Applegate. Mr. Nutt has been a fund manager and investment team leader since 1999. Prior to joining Nicholas-Applegate, he had six years of investment experience with Vestek Systems, Inc. and Virginia Tech and Georgia Institute of Technology. RS INVESTMENT MANAGEMENT, L.P.: RS Investment Management, L.P. (RSIM), located at 388 Market Street, San Francisco, California 94111, has been selected as a Sub-Adviser to the SEI VP Small Cap Growth Fund. As of the date of this prospectus, no assets were allocated to RSIM. However, SIMC may allocate assets to RSIM at any time. Jim Callinan of RSIM would serve as portfolio manager of the portion of the SEI VP Small Cap Growth Fund's assets allocated to RSIM. Mr. Callinan is a managing director of RSIM. He joined RSIM in June 1996 after nine years at Putnam Investments (Putnam) in Boston, where he served as a portfolio manager of the Putnam OTC Emerging Growth Fund. Mr. Callinan also served as a specialty growth research analyst and portfolio manager of both the Putnam Emerging Information Science Trust Fund and the Putnam Emerging Health Sciences Trust Fund while at Putnam. SAWGRASS ASSET MANAGEMENT, LLC: Sawgrass Asset Management, LLC (Sawgrass), located at 1579 The Greens Way, Suite 20, Jacksonville, Florida 32250, serves as a Sub-Adviser to the SEI VP Small Cap Growth Fund. Dean McQuiddy of Sawgrass serves as portfolio manager of the portion of the SEI VP Small Cap Growth Fund's assets allocated to Sawgrass. Mr. McQuiddy, a founding Principal of Sawgrass, has 13 years of investment experience. Prior to joining Sawgrass, he was a portfolio manager at Barnett Capital Advisors. WALL STREET ASSOCIATES: Wall Street Associates (WSA), located at 1200 Prospect Street, Suite 100, La Jolla, California 92307, serves as a Sub-Adviser to the SEI VP Small Cap Growth Fund. William Jeffery III, Kenneth F. McCain and David Baratta of WSA serve as portfolio managers of the portion of the SEI VP Small Cap Growth Fund's assets allocated to WSA. Messrs. Jeffery and McCain are controlling principals of WSA. They each have over 28 years of investment management experience. Mr. Baratta joined WSA in 1999. Prior to joining WSA, Mr. Baratta was a portfolio manager of Morgan Grenfell, Inc. for 5 years. He has over 20 years of investment experience. WELLINGTON MANAGEMENT COMPANY, LLP: Wellington Management Company, LLP (Wellington Management), located at 75 State Street, Boston, Massachusetts 02109, has been selected as a Sub-Adviser to the SEI VP Small Cap Growth Fund. As of the date of this prospectus, no assets were allocated to Wellington Management. However, SIMC may allocate assets to Wellington Management at any time. Jamie A. Rome, CFA, Vice President and Equity Portfolio Manager of Wellington Management, would serve as portfolio manager of the portion of the SEI VP Small Cap Growth Fund's assets allocated to Wellington Management. Mr. Rome joined Wellington Management in 1994, and has 16 years of investment experience. SEI VP INTERNATIONAL EQUITY FUND: BLACKROCK INTERNATIONAL, LTD.: BlackRock International Ltd. (BlackRock International), located at 40 Torphichen Street, Edinburgh, EH3 8JB, Scotland, has been selected as a Sub-Adviser to the SEI VP International Equity Fund. As of the date of this prospectus, no assets were allocated to BlackRock International. However, SIMC may allocate assets to BlackRock International at any time. Albert B. Morillo, Managing Director and Senior Portfolio Manager, heads an investment committee at BlackRock International that would provide investment advice for the portion of the SEI VP International Equity Fund's assets allocated to BlackRock International. Prior to joining BlackRock International in January 2000, Mr. Morillo was the head of the European Team at Scottish Widows Investment Management. 46 SEI INVESTMENTS / PROSPECTUS CAPITAL GUARDIAN TRUST COMPANY: Capital Guardian Trust Company (CGTC), located at 333 South Hope Street, 55th Floor, Los Angeles, California 90071, serves as a Sub-Adviser to the SEI VP International Equity Fund. A committee of investment professionals at CGTC manages the portion of the SEI VP International Equity Fund's assets allocated to CGTC and utilizes a multi-portfolio management system. MORGAN STANLEY INVESTMENT MANAGEMENT INC.: Morgan Stanley Investment Management Inc. (MSIM), located at 1221 Avenue of the Americas, New York, New York 10020, has been selected as a Sub-Adviser to the SEI VP International Equity Fund. As of the date of this prospectus, no assets were allocated to MSIM. However, SIMC may allocate assets to MSIM at any time. A portion of the assets of the SEI VP International Equity Fund is managed by MSIM's International Equity Team. Current members of the team include Dominic Caldecott, Managing Director, Peter Wright, Managing Director, Willam Lock, Managing Director and Walter Ridderll, Vice President. OECHSLE INTERNATIONAL ADVISORS, LLC: Oechsle International Advisors, LLC (Oechsle), located at One International Place, 23rd Floor, Boston, Massachusetts 02110, serves as a Sub-Adviser to the SEI VP International Equity Fund. S. Dewey Keesler, Jr. and Kathleen Harris of Oechsle serve as portfolio managers of the portion of the SEI VP International Equity Fund's assets allocated to Oechsle. Mr.Keesler is a Managing Principal, Chief Investment Officer and Portfolio Manager/ Research Analyst with responsibility for coordinating the firm's investment activities. He has over 20 years of investment experience. Ms. Harris joined Oechsle in January 1995 and is a Principal and Portfolio Manager/Research Analyst. SEI VP EMERGING MARKETS EQUITY FUND: THE BOSTON COMPANY ASSET MANAGEMENT, LLC: The Boston Company Asset Management, LLC (The Boston Company), located at One Boston Place, Boston, Massachusetts 02108, has been selected as a Sub-Adviser to the SEI VP Emerging Markets Equity Fund. As of the date of this prospectus, no assets were allocated to The Boston Company. However, SIMC may allocate assets to The Boston Company at any time. D. Kirk Henry, CFA, and Senior Vice President of The Boston Company, would serve as portfolio manager of the portion of the SEI VP Emerging Markets Equity Fund's assets allocated to The Boston Company. Since joining The Boston Company in 1994, Mr. Henry has had primary responsibility for the firm's Emerging Markets Equity product and co-responsibility for the International Equity strategies with Sandor Cseh. MORGAN STANLEY INVESTMENT MANAGEMENT INC.: Morgan Stanley Investment Management Inc. (MSIM), located at 1221 Avenue of the Americas, New York, New York 10020, has been selected as a Sub-Adviser to the SEI VP Emerging Markets Equity Fund. As of the date of this prospectus, no assets were allocated to MSIM. However, SIMC may allocate assets to MSIM at any time. A portion of the assets of the SEI VP Emerging Markets Equity Fund is managed by MSIM's Emerging Markets Equity Team. Current members of the team include Michael Perl, Executive Director, Ana Christina Piedrahita, Vice President and Narayan Ramachandran, Managing Director. SCHRODER INVESTMENT MANAGEMENT NORTH AMERICA INC.: Schroder Investment Management North America Inc. (Schroder), located at 875 Third Avenue, 22nd Floor, New York, New York 10022, serves as a Sub-Adviser to the SEI VP Emerging Markets Equity Fund. A team of investment professionals at Schroder manages the portion of the SEI VP Emerging Markets Equity Fund's asset allocated to Schroder. Giles Neville heads the Emerging Markets Committee at Schroder. Mr. Neville has over 13 years of investment experience. SG PACIFIC ASSET MANAGEMENT, INC. AND SGY ASSET MANAGEMENT (SINGAPORE) LTD.: SG Pacific Asset Management, Inc. (SG Pacific) and SGY Asset Management (Singapore) Ltd. (SGY), located at 560 Lexington Avenue, New York, New York 10022, have been selected as Sub-Advisers to the SEI VP Emerging Markets Equity Fund. As of the date of this prospectus, no assets were allocated to SG Pacific and SGY. However, SIMC may allocate assets to SG Pacific and SGY at any time. Marco Wong of SG Pacific and SGY would serve as portfolio manager of the portion of the SEI VP Emerging Markets Equity Fund's assets allocated to SG Pacific and SGY. Mr. Wong leads the management team for the assets of the Fund allocated to SG Pacific and SGY. Mr. Wong has been with SG Yamaichi Asset Management Company, Ltd., the parent of SGY and SG Pacific, since 1986. SEI INVESTMENTS / PROSPECTUS 47 SEI VP CORE FIXED INCOME FUND: BLACKROCK FINANCIAL MANAGEMENT, INC.: BlackRock Financial Management, Inc. (BlackRock), located at 40 East 52nd Street, New York, New York 10022, has been selected as a Sub-Adviser to the SEI VP Core Fixed Income Fund. As of the date of this prospectus, no assets were allocated to BlackRock. However, SIMC may allocate assets to BlackRock at any time. Keith Anderson and Andrew Phillips of BlackRock would serve as portfolio managers of the portion of the SEI VP Core Fixed Income Fund's assets allocated to BlackRock. Mr. Anderson is a Managing Director, Chief Investment Officer, Fixed Income and Co-Chair of the income securities group. Mr. Phillips is also a Managing Director and portfolio manager with primary responsibility for the management of the firm's investment activities in fixed-rate mortgage securities and has over 15 years of experience investing in fixed income securities. ROBERT W. BAIRD & CO., INCORPORATED: Robert W. Baird & Co., Incorporated (Baird), located at 777 E. Wisconsin Avenue, Milwaukee, Wisconsin 53202, has been selected as a Sub-Adviser to the SEI VP Core Fixed Income Fund. As of the date of this prospectus, no assets were allocated to Baird. However, SIMC may allocate assets to Baird at any time. Charles B. Groeschell of Baird would serve as portfolio manager of the portion of the SEI VP Core Fixed Income Fund's assets allocated to Baird. Prior to joining Baird in March 2000, Mr. Groeschell was a Senior Vice President and portfolio manager for Firstar Investment Management & Resource Company, LLC. Mr. Groeschell has over 18 years of investment experience. WESTERN ASSET MANAGEMENT COMPANY: Western Asset Management Company (WAMC), located at 117 E. Colorado Blvd., 6th Floor, Pasadena, California 91105, serves as a Sub-Adviser to the SEI VP Core Fixed Income Fund. A committee of investment professionals at WAMC manages a portion of the assets of the SEI VP Core Fixed Income Fund. SEI VP BOND INDEX FUND: MELLON BOND ASSOCIATES, LLP: Mellon Bond Associates, LLP (MBA), located at 1735 Market Street, Room 610, Philadelphia, PA 19101, serves as the Sub-Adviser to the SEI VP Bond Index Fund. A committee of investment professionals at MBA selects securities for the SEI VP Bond Index Fund based upon a computer model. SEI VP HIGH YIELD BOND FUND: CREDIT SUISSE ASSET MANAGEMENT, LLC: Credit Suisse Asset Management, LLC (Credit Suisse), located at 466 Lexington Avenue, New York, New York 10017, has been selected as a Sub-Adviser to the SEI VP High Yield Bond Fund. As of the date of this prospectus, no assets were allocated to Credit Suisse. However, SIMC may allocate assets to Credit Suisse at any time. Richard J. Lindquist, CFA, of Credit Suisse would serve as portfolio manager of the portion of the SEI VP High Yield Bond Fund's assets allocated to Credit Suisse. Mr. Lindquist joined Credit Suisse in 1995 as a result of Credit Suisse's acquisition of CS First Boston Investment Management, and has over 15 years of investment management experience, all of which were with high yield bonds. NICHOLAS-APPLEGATE CAPITAL MANAGEMENT: Nicholas Applegate Capital Management (Nicholas-Applegate), located at 600 West Broadway, Suite 2900, San Diego, California 92101, has been selected as a Sub-Adviser to the SEI VP High Yield Bond Fund. As of the date of this prospectus, no assets were allocated to Nicholas-Applegate. However, SIMC may allocate assets to Nicholas-Applegate at any time. A team of investment professionals, led by Doug G. Forsyth, CFA, would serve as portfolio managers of the portion of the assets of the SEI VP High Yield Bond Fund's assets allocated to Nicholas-Applegate. Mr. Forsyth, Lead Portfolio Manager of High Yield & Convertibles at Nicholas-Applegate, joined Nicholas-Applegate in 1994, and has 10 years of investment experience. NOMURA CORPORATE RESEARCH AND ASSET MANAGEMENT INC.: Nomura Corporate Research and Asset Management Inc. (Nomura), located at 2 World Financial Center, Building B, New York, New York 10281-1198, has been selected as a Sub-Adviser to the SEI VP High Yield Bond Fund. As of the date of this prospectus, no assets were allocated to Nomura. However, SIMC may allocate assets to Nomura at any time. Robert Levine, CFA, President and Chief Executive Officer of Nomura, and Richard A. Buch, Managing Director and Senior Portfolio Manager of Nomura, would serve as portfolio 48 SEI INVESTMENTS / PROSPECTUS managers of the portion of the SEI VP High Yield Bond Fund's assets allocated to Nomura. Messrs. Levine and Buch are responsible for the management of Nomura's high yield bond portfolios and research analysis. Prior to joining Nomura, Mr. Levine was President of Kidder, Peabody High Yield Asset Management, Inc. and Managing Director of Kidder, Peabody & Co., where he created their first high yield bond mutual fund. Prior to joining Nomura, Mr. Buch was with Kidder, Peabody & Co., where he served as Senior Vice President of the Kidder, Peabody Asset Management, Inc. Mr. Levine and Mr. Buch each have over 21 years of investment experience. SHENKMAN CAPITAL MANAGEMENT, INC.: Shenkman Capital Management, Inc. (Shenkman), located at 461 Fifth Avenue, New York, New York 10017, serves as a Sub-Adviser to the SEI VP High Yield Bond Fund. Mark Shenkman, President and Chief Investment Officer, Frank Whitley, Executive Vice President, and Mark Flanagan, Senior Vice President, of Shenkman serve as co-portfolio managers of the portion of the SEI VP High Yield Bond Fund's assets allocated to Shenkman. Mr. Shenkman has served in these roles since he founded the firm in 1985. Mr. Whitley joined Shenkman in 1988, and has co-managed the investment process since 1994. Mr. Flanagan joined Shenkman in 1992, and after serving as Director of Credit Research, was promoted to a portfolio manager in 2002. Mr. Shenkman, Mr. Whitley and Mr. Flanagan have a combined 60 years of investment experience. SEI VP INTERNATIONAL FIXED INCOME FUND: STRATEGIC FIXED INCOME, L.L.C.: Strategic Fixed Income, L.L.C. (Strategic), located at 1001 Nineteenth Street North, Suite 1400, Arlington, Virginia 22209, serves as the Sub-Adviser to the SEI VP International Fixed Income Fund. Kenneth Windheim, Gregory Barnett and David Jallits of Strategic serve as portfolio managers of the SEI VP International Fixed Income Fund. Mr. Windheim is the President and Chief Investment Officer of Strategic. Prior to joining Strategic, Mr. Windheim was the Chief Investment Officer and Managing Director of the group which managed global fixed income portfolios at Prudential Asset Management. Prior to joining Strategic, Mr. Barnett was a portfolio manager for the Pilgrim Multi-Market Income Fund. Prior to that, he was vice president and senior fixed income portfolio manager at Lexington Management. Prior to joining Strategic, Mr. Jallits was Senior Portfolio Manager for a hedge fund at Teton Partners. SEI VP EMERGING MARKETS DEBT FUND: SALOMON BROTHERS ASSET MANAGEMENT INC: Salomon Brothers Asset Management Inc (SBAM), located at 388 Greenwich Street, New York, New York 10013, serves as the Sub-Adviser to the SEI VP Emerging Markets Debt Fund. Peter J. Wilby leads the team of professionals from SBAM that manages the assets of the SEI VP Emerging Markets Debt Fund. Mr. Wilby, a Managing Director of SBAM, joined SBAM in 1989. SEI VP PRIME OBLIGATION FUND: WELLINGTON MANAGEMENT COMPANY, LLP: Wellington Management Company, LLP (Wellington Management), located at 75 State Street, Boston, Massachusetts 02109, serves as the Sub-Adviser to the SEI VP Prime Obligation Fund. Timothy E. Smith is the portfolio manager of the assets of the SEI VP Prime Obligation Fund. Mr. Smith has been an investment professional with Wellington Management since 1992. SEI INVESTMENTS / PROSPECTUS 49 PURCHASING AND SELLING FUND SHARES HOW TO PURCHASE FUND SHARES Shares of each Fund, except the SEI VP Prime Obligation Fund, are offered on each day that the New York Stock Exchange (NYSE) is open for business and shares of the SEI VP Prime Obligation Fund are offered on any day that the NYSE and the Federal Reserve System are open for business (a Business Day). However, the SEI VP Prime Obligation Fund may close early on Business Days that the Bond Market Association recommends that the bond markets close early. In addition, Fund shares cannot be purchased by Federal Reserve wire on federal holidays on which wire transfers are restricted. The Funds offer their Class A Shares only to insurance companies for separate accounts they establish to fund variable life insurance and variable annuity contracts. An insurance company purchases or redeems shares of the Funds based on, among other things, the amount of net contract premiums or purchase payments allocated to a separate account investment division, transfers to or from a separate account investment division, contract loans and repayments, contract withdrawals and surrenders, and benefit payments. The contract prospectus describes how contract owners may allocate, transfer and withdraw amounts to, and from, separate accounts. The price per share will be the net asset value per share (NAV) next determined after the Funds receive the insurance companies' purchase orders. Each Fund calculates NAV once each Business Day at the regularly-scheduled close of normal trading on the NYSE (normally, 4:00 p.m. Eastern time). To receive the current Business Day's NAV, generally the Funds must receive an order in proper form before 4:00 p.m. Eastern time (or the earlier of 4:00 p.m. or the close of the Business Day for the SEI VP Prime Obligation Fund). The Funds will not accept purchase orders that request a particular day or price for the transaction or any other special condition. HOW THE FUNDS CALCULATE NAV NAV for one Fund share is the value of that share's portion of the net assets of the Fund. In calculating NAV, the Funds (except for the SEI VP Prime Obligation Fund) generally value their investment portfolio securities at market price. If market prices are unavailable or the Funds think that they are unreliable, fair value prices may be determined in good faith using methods approved by the Board of Trustees. Some Funds hold portfolio securities that are listed on foreign exchanges. These securities may trade on weekends or other days when the Funds do not calculate NAV. As a result, the market value of these Funds' investments may change on days when you cannot purchase or sell Fund shares. In calculating NAV for the SEI VP Prime Obligation Fund, the Fund generally values its investment portfolio using the amortized cost valuation method, which is described in detail in the SAI. If the Fund thinks amortized cost is unreliable, fair value prices may be determined in good faith using methods approved by the Board of Trustees. The Fund expects its NAV to remain constant at $1.00 per share, although there is no guarantee that the Fund can accomplish this. DISTRIBUTION OF FUND SHARES SEI Investments Distribution Co. (SIDCo.) is the distributor of the shares of the Funds. SIDCo. receives no compensation for distributing the Funds' Class A Shares. 50 SEI INVESTMENTS / PROSPECTUS DIVIDENDS, DISTRIBUTIONS AND TAXES DIVIDENDS AND DISTRIBUTIONS The Funds distribute their investment income periodically as a dividend to shareholders. It is the policy of the SEI VP Prime Obligation, SEI VP Core Fixed Income and SEI VP High Yield Bond Funds to pay dividends monthly, the SEI VP Large Cap Value, SEI VP Large Cap Growth, SEI VP S&P 500 Index, SEI VP Small Cap Value, SEI VP Small Cap Growth and SEI VP Bond Index Funds to pay dividends quarterly and SEI VP International Equity, SEI VP Emerging Markets Equity, SEI VP International Fixed Income and SEI VP Emerging Markets Debt Funds to pay dividends annually. The Funds make distributions of capital gains, if any, at least annually. TAXES PLEASE CONSULT YOUR TAX ADVISOR REGARDING YOUR SPECIFIC QUESTIONS ABOUT FEDERAL, STATE AND LOCAL INCOME TAXES. Below the Funds have summarized some important tax issues that affect the Funds and their shareholders. This summary is based on current tax laws, which may change. The Funds have been advised that they will not have to pay income taxes if they distribute all of their net investment income and net realized capital gains at least annually. Net investment income and net realized capital gains that the Funds distribute are not currently taxable to investors when left to accumulate within a variable annuity or variable life insurance contract. The Funds do not expect to be subject to federal excise taxes with respect to undistributed income. Special tax rules apply to life insurance companies, variable annuity contracts and variable life insurance contracts. For information on federal income taxation of a life insurance company with respect to its receipt of distributions from the Funds and federal income taxation of owners of variable annuity or variable life insurance contracts, refer to your contract prospectus. MORE INFORMATION ABOUT TAXES IS IN THE FUNDS' SAI. SEI INVESTMENTS / PROSPECTUS 51 FINANCIAL HIGHLIGHTS The tables that follow present performance information about Class A Shares of each Fund. This information is intended to help you understand each Fund's financial performance for the past five years, or, if shorter, the period of the Fund's operations. Some of this information reflects financial information for a single Fund share. The total returns in the table represent the rate that you would have earned (or lost) on an investment in a Fund, assuming you reinvested all of your dividends and distributions. This information has been audited by PricewaterhouseCoopers LLP, independent public accountants. Their report, along with each Fund's financial statements, appears in the annual report that accompanies the Funds' SAI. You can obtain the annual report, which contains more performance information, at no charge by calling 1-800-DIAL-SEI. SEI INSURANCE PRODUCTS TRUST -- FOR THE PERIOD ENDED DECEMBER 31, 2001 FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Net Realized and Unrealized Net Asset Net Gains Distributions Value, Investment (Losses) from Net Beginning Income on Investment of Period (Loss) Securities Income ------------------------------------------------------------------------------------------------ SEI VP LARGE CAP VALUE FUND ------------------------------------------------------------------------------------------------ 2001 $10.82 $ 0.12 $(0.44) $(0.12) ------------------------------------------------------------------------------------------------ 2000(1) 10.00 0.09 0.82 (0.09) ------------------------------------------------------------------------------------------------ SEI VP LARGE CAP GROWTH FUND ------------------------------------------------------------------------------------------------ 2001 $ 7.48 $ -- $(2.03) $ -- ------------------------------------------------------------------------------------------------ 2000(1) 10.00 (0.01) (2.51) -- ------------------------------------------------------------------------------------------------ SEI VP SMALL CAP VALUE FUND ------------------------------------------------------------------------------------------------ 2001 $11.83 $ 0.06 $ 1.64 $(0.06) ------------------------------------------------------------------------------------------------ 2000(1) 10.00 0.07 2.13 (0.07) ------------------------------------------------------------------------------------------------ SEI VP SMALL CAP GROWTH FUND ------------------------------------------------------------------------------------------------ 2001 $ 9.63 $(0.04) $(2.07) $ -- ------------------------------------------------------------------------------------------------ 2000(1) 10.00 (0.04) (0.33) -- ------------------------------------------------------------------------------------------------ SEI VP INTERNATIONAL EQUITY FUND ------------------------------------------------------------------------------------------------ 2001 $ 7.95 $ 0.01 $(1.92) $(0.01) ------------------------------------------------------------------------------------------------ 2000(1) 10.00 0.09 (2.05) (0.09) ------------------------------------------------------------------------------------------------ SEI VP EMERGING MARKETS EQUITY FUND ------------------------------------------------------------------------------------------------ 2001 $ 6.23 $ 0.03 $(0.72) $ -- ------------------------------------------------------------------------------------------------ 2000(1) 10.00 (0.05) (3.72) -- ------------------------------------------------------------------------------------------------ Distributions Net from Asset Realized Value, Net Assets Capital End of Total End of Period Gains Period Return+ ($ Thousands) -------------------------------------- SEI VP LARGE CAP VALUE FUND -------------------------------------- 2001 $(0.17) $10.21 (2.91)% $38,888 -------------------------------------- 2000(1) -- 10.82 9.17 22,170 -------------------------------------- SEI VP LARGE CAP GROWTH FUND -------------------------------------- 2001 $ -- $ 5.45 (27.14)% $28,868 -------------------------------------- 2000(1) -- 7.48 (25.20) 17,236 -------------------------------------- SEI VP SMALL CAP VALUE FUND -------------------------------------- 2001 $(0.90) $12.57 14.89% $15,719 -------------------------------------- 2000(1) (0.30) 11.83 22.25 10,498 -------------------------------------- SEI VP SMALL CAP GROWTH FUND -------------------------------------- 2001 $ -- $ 7.52 (21.91)% $ 9,625 -------------------------------------- 2000(1) -- 9.63 (3.70) 8,699 -------------------------------------- SEI VP INTERNATIONAL EQUITY FUND -------------------------------------- 2001 $ -- $ 6.03 (24.05)% $17,047 -------------------------------------- 2000(1) -- 7.95 (19.60) 12,949 -------------------------------------- SEI VP EMERGING MARKETS EQUITY FUND -------------------------------------- 2001 $ -- $ 5.54 (11.08)% $ 8,824 -------------------------------------- 2000(1) -- 6.23 (37.70) 7,286 -------------------------------------- Ratio of Net Ratio of Ratio of Investment Ratio of Net Expenses to Income (Loss) to Expenses Investment Average Net Average Net to Income Assets Assets Average (Loss) to (Excluding (Excluding Portfolio Net Average Waivers and Waivers and Turnover Assets Net Assets Reimbursements) Reimbursements) Rate -------------------------------------- SEI VP LARGE CAP VALUE FUND -------------------------------------- 2001 0.85% 1.25% 1.14% 0.96% 42% -------------------------------------- 2000(1) 0.85 1.25 1.35 0.75 49 -------------------------------------- SEI VP LARGE CAP GROWTH FUND -------------------------------------- 2001 0.85% (0.25)% 1.19% (0.59)% 84% -------------------------------------- 2000(1) 0.85 (0.26) 1.39 (0.80) 57 -------------------------------------- SEI VP SMALL CAP VALUE FUND -------------------------------------- 2001 1.10% 0.48% 1.45% 0.13% 39% -------------------------------------- 2000(1) 1.10 0.90 1.66 0.34 98 -------------------------------------- SEI VP SMALL CAP GROWTH FUND -------------------------------------- 2001 1.10% (0.82)% 1.46% (1.18)% 151% -------------------------------------- 2000(1) 1.10 (0.59) 1.65 (1.14) 116 -------------------------------------- SEI VP INTERNATIONAL EQUITY FUND -------------------------------------- 2001 1.28% 0.19% 2.04% (0.57)% 41% -------------------------------------- 2000(1) 1.28 1.61 2.13 0.76 31 -------------------------------------- SEI VP EMERGING MARKETS EQUITY FUND -------------------------------------- 2001 1.95% 0.06% 3.70% (1.69)% 149% -------------------------------------- 2000(1) 1.95 (0.62) 3.52 (2.19) 117 --------------------------------------
52 SEI INVESTMENTS / PROSPECTUS
Net Realized and Unrealized Distributions Net Net Asset Net Gains Distributions from Asset Value, Investment (Losses) from Net Realized Value, Beginning Income on Investment Capital End of of Period (Loss) Securities Income Gains Period --------------------------------------------------------------------------------------------------------------------------- SEI VP CORE FIXED INCOME FUND --------------------------------------------------------------------------------------------------------------------------- 2001 $10.36 $ 0.55 $ 0.23 $(0.55) $(0.22) $10.37 --------------------------------------------------------------------------------------------------------------------------- 2000(1) 10.00 0.45 0.36 (0.45) -- 10.36 --------------------------------------------------------------------------------------------------------------------------- SEI VP HIGH YIELD BOND FUND --------------------------------------------------------------------------------------------------------------------------- 2001 $ 9.16 $ 0.87 $(0.50) $(0.87) $ -- $ 8.66 --------------------------------------------------------------------------------------------------------------------------- 2000(1) 10.00 0.70 (0.84) (0.70) -- 9.16 --------------------------------------------------------------------------------------------------------------------------- SEI VP INTERNATIONAL FIXED INCOME FUND --------------------------------------------------------------------------------------------------------------------------- 2001 $ 9.89 $ 0.09 $(0.61) $ -- $(0.07) $ 9.30 --------------------------------------------------------------------------------------------------------------------------- 2000(1) 10.00 (0.20) 0.09 -- -- 9.89 --------------------------------------------------------------------------------------------------------------------------- SEI VP EMERGING MARKETS DEBT FUND --------------------------------------------------------------------------------------------------------------------------- 2001 $ 9.75 $ 0.96 $ 0.26 $(0.96) $ -- $10.01 --------------------------------------------------------------------------------------------------------------------------- 2000(1) 10.00 0.76 (0.11) (0.76) (0.14) 9.75 --------------------------------------------------------------------------------------------------------------------------- SEI VP PRIME OBLIGATION FUND --------------------------------------------------------------------------------------------------------------------------- 2001 $ 1.00 $ 0.04 $ -- $(0.04) $ -- $ 1.00 --------------------------------------------------------------------------------------------------------------------------- 2000(1) 1.00 0.04 -- (0.04) -- 1.00 --------------------------------------------------------------------------------------------------------------------------- Ratio of Net Ratio of Ratio of Investment Ratio of Net Expenses to Income (Loss) to Expenses Investment Average Net Average Net to Income Assets Assets Net Assets Average (Loss) to (Excluding (Excluding Total End of Period Net Average Waivers and Waivers and Return+ ($ Thousands) Assets Net Assets Reimbursements) Reimbursements) -------------------------------------- SEI VP CORE FIXED INCOME FUND -------------------------------------- 2001 7.69% $45,394 0.60% 5.15% 1.00% 4.75% -------------------------------------- 2000(1) 8.31 19,215 0.60 6.10 1.19 5.51 -------------------------------------- SEI VP HIGH YIELD BOND FUND -------------------------------------- 2001 4.00% $12,595 0.85% 9.54% 1.31% 9.08% -------------------------------------- 2000(1) (1.51) 10,427 0.85 9.75 1.51 9.09 -------------------------------------- SEI VP INTERNATIONAL FIXED INCOME FUND -------------------------------------- 2001 (5.32)% $ 9,945 1.00% 2.99% 1.51% 2.48% -------------------------------------- 2000(1) (1.10) 7,391 1.00 3.39 1.70 2.69 -------------------------------------- SEI VP EMERGING MARKETS DEBT FUND -------------------------------------- 2001 12.56% $ 8,239 1.35% 9.61% 2.07% 8.89% -------------------------------------- 2000(1) 6.56 6,563 1.35 10.55 2.26 9.64 -------------------------------------- SEI VP PRIME OBLIGATION FUND -------------------------------------- 2001 3.80% $16,203 0.44% 3.35% 0.93% 2.86% -------------------------------------- 2000(1) 4.56 5,685 0.44 6.04 1.14 5.34 -------------------------------------- Portfolio Turnover Rate -------------------------------------- SEI VP CORE FIXED INCOME FUND -------------------------------------- 2001 423% -------------------------------------- 2000(1) 342 -------------------------------------- SEI VP HIGH YIELD BOND FUND -------------------------------------- 2001 72% -------------------------------------- 2000(1) 5 -------------------------------------- SEI VP INTERNATIONAL FIXED INCOME FUND -------------------------------------- 2001 301% -------------------------------------- 2000(1) 100 -------------------------------------- SEI VP EMERGING MARKETS DEBT FUND -------------------------------------- 2001 201% -------------------------------------- 2000(1) 140 -------------------------------------- SEI VP PRIME OBLIGATION FUND -------------------------------------- 2001 N/A -------------------------------------- 2000(1) N/A --------------------------------------
+ Returns are for the period indicated and have not been annualized. (1) Commenced operations on April 5, 2000. All ratios for the period have been annualized. Amounts designated as "--" are either $0 or have been rounded to $0. SEI INVESTMENTS / PROSPECTUS 53 INVESTMENT ADVISER SEI Investments Management Corporation One Freedom Valley Drive Oaks, PA 19456 DISTRIBUTOR SEI Investments Distribution Co. One Freedom Valley Drive Oaks, PA 19456 LEGAL COUNSEL Morgan, Lewis & Bockius LLP More information about the Funds is available without charge through the following: STATEMENT OF ADDITIONAL INFORMATION (SAI) The SAI dated May 1, 2002, includes more detailed information about SEI Insurance Products Trust. The SAI is on file with the SEC and is incorporated by reference into this prospectus. This means that the SAI, for legal purposes, is a part of this prospectus. ANNUAL AND SEMI-ANNUAL REPORTS These reports will typically list the Funds' holdings and contain information from the Funds' managers about strategies and market conditions and trends and their impact on performance. The reports will also contain detailed financial information about the Funds. TO OBTAIN AN SAI, ANNUAL OR SEMI-ANNUAL REPORT, OR MORE INFORMATION: By Telephone: Call 1-800-DIAL-SEI By Mail: Write to the Funds at: One Freedom Valley Drive Oaks, PA 19456 By Internet: HTTP://WWW.SEIC.COM From the SEC: You can obtain the SAI or the Annual and Semi-Annual Reports, as well as other information about SEI Insurance Products Trust, from the EDGAR Database on the SEC's website ("http://www.sec.gov"). You may review and copy documents at the SEC Public Reference Room in Washington, D.C. (for information on the operation of the Public Reference Room, call 202-942-8090). You may request documents by mail from the SEC, upon payment of a duplicating fee, by writing to: Securities and Exchange Commission, Public Reference Section, Washington, DC 20549-0102. You may also obtain this information, upon payment of a duplicating fee, by e-mailing the SEC at the following address: publicinfo@sec.gov. The Trust's Investment Company Act registration number is 811-9183. SEI INSURANCE PRODUCTS TRUST PROSPECTUS CLASS B SHARES MAY 1, 2002 MONEY MARKET FUND: SEI VP PRIME OBLIGATION FUND INVESTMENT ADVISER: SEI INVESTMENTS MANAGEMENT CORPORATION INVESTMENT SUB-ADVISER: WELLINGTON MANAGEMENT COMPANY, LLP THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED THESE SECURITIES OR PASSED UPON THE ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. SEI INVESTMENTS / PROSPECTUS I SEI INSURANCE PRODUCTS TRUST ------------------------------------------------------------------------------ ABOUT THIS PROSPECTUS SEI Insurance Products Trust is a mutual fund family that offers different classes of shares in separate investment portfolios (Funds). The Funds have individual investment goals and strategies and are designed exclusively as funding vehicles for variable life insurance and variable annuity contracts. This prospectus gives contract owners important information about the Class B Shares of the SEI VP Prime Obligation Fund that you should know before investing. Please read this prospectus and keep it for future reference. Variable life insurance and variable annuity account investors should also review the separate account prospectus prepared by their insurance company. This prospectus has been arranged into different sections so that you can easily review this important information. On the next page, there is some general information you should know about risk and return applicable to the Fund. For more detailed information about the Fund, please see:
Principal Investment Strategies and Risks, Performance Information and Expenses 2 ------------------------------------------------------------------------ More Information About Fund Investments 5 ------------------------------------------------------------------------ Investment Adviser and Sub-Adviser 5 ------------------------------------------------------------------------ Purchasing and Selling Fund Shares 6 ------------------------------------------------------------------------ Dividends, Distributions and Taxes 7 ------------------------------------------------------------------------ Financial Highlights 8 ------------------------------------------------------------------------ How To Obtain More Information About SEI Insurance Products Trust Back Cover ------------------------------------------------------------------------
SEI INVESTMENTS / PROSPECTUS 1 RISK/RETURN INFORMATION The SEI VP Prime Obligation Fund is a mutual fund that is available solely as a funding vehicle for variable annuity and variable life insurance contracts sold by various insurance companies. A mutual fund pools investors' money and, using professional investment managers, invests it in securities. The Fund has its own investment goal and strategies for reaching that goal. The Fund's assets are managed under the direction of SEI Investments Management Corporation (SIMC) and one or more Sub-Advisers who manage portions of the Fund's assets in a way that they believe will help the Fund achieve its goal. No matter how good a job SIMC and the Sub-Advisers do, you could lose money on your investment in the Fund, just as you could with other investments. A Fund share is not a bank deposit and it is not insured or guaranteed by the FDIC or any other government agency. THE INVESTMENT OBJECTIVES AND POLICIES OF THE FUND MAY BE SIMILAR TO THOSE OF OTHER RETAIL MUTUAL FUNDS WHICH CAN BE PURCHASED OUTSIDE OF A VARIABLE INSURANCE PRODUCT, AND THAT ARE MANAGED BY THE SAME INVESTMENT ADVISER OR SUB-ADVISER. THE INVESTMENT RESULTS OF THE FUND, HOWEVER, MAY BE HIGHER OR LOWER THAN THE RESULTS OF SUCH OTHER RETAIL MUTUAL FUNDS. THERE CAN BE NO ASSURANCE, AND NO REPRESENTATION IS MADE, THAT THE INVESTMENT RESULTS OF THE FUND WILL BE COMPARABLE TO THE INVESTMENT RESULTS OF ANY OTHER RETAIL MUTUAL FUND, EVEN IF THE OTHER RETAIL MUTUAL FUND HAS THE SAME INVESTMENT ADVISER OR SUB-ADVISER. 2 SEI INVESTMENTS / PROSPECTUS SEI VP PRIME OBLIGATION FUND ------------------------------------------------------------------------------ FUND SUMMARY INVESTMENT GOAL: Preserving principal and maintaining liquidity while providing current income SHARE PRICE VOLATILITY: Very low PRINCIPAL INVESTMENT The Fund is professionally managed to STRATEGY: provide liquidity, diversification and a competitive yield by investing in high quality, short-term money market instruments
-------------------------------------------------------------------------------- INVESTMENT STRATEGY The SEI VP Prime Obligation Fund is comprised of short-term debt obligations of U.S. issuers that are rated in one of the two highest rating categories by nationally recognized statistical rating organizations or securities that the Sub-Adviser determines are of comparable quality. The Fund invests in: (i) commercial paper (including asset-backed commercial paper) rated in the highest short-term rating category by at least one nationally recognized statistical rating organization; (ii) certificates of deposit, time deposits, bankers' acceptances, bank notes and other obligations of U.S. commercial banks or savings and loan institutions that meet certain asset requirements; (iii) short-term corporate obligations (including asset-backed securities) rated in one of the two highest short-term rating categories; (iv) short-term obligations issued by state and local governments; and (v) U.S. Treasury obligations and obligations issued or guaranteed as to principal and interest by agencies or instrumentalities of the U.S. government. The Fund may also enter into fully-collateralized repurchase agreements. Using a top-down strategy and bottom-up security selection, the Sub-Adviser seeks securities with an acceptable maturity (consistent with SEC requirements for money market funds), that are marketable and liquid, offer competitive yields, and are issued by issuers that are on a sound financial footing. The Sub-Adviser also considers factors such as the anticipated level of interest rates and the maturity of individual securities relative to the maturity of the Fund as a whole. The Fund follows strict guidelines about the credit quality, maturity and diversification of its investments. With respect to credit quality and maturity, these guidelines are more restrictive than Investment Company Act rules applicable to money market funds. WHAT ARE THE RISKS OF INVESTING IN THE FUND? An investment in the Fund is subject to income risk, which is the possibility that the Fund's yield will decline due to falling interest rates. Although the Fund's U.S. government securities are considered to be among the safest investments, they are not guaranteed against price movements due to changing interest rates. Obligations issued by some U.S. government agencies are backed by the U.S. Treasury, while others are backed solely by the ability of the agency to borrow from the U.S. Treasury or by the agency's own resources. AN INVESTMENT IN THE FUND IS NOT A BANK DEPOSIT. ALTHOUGH THE FUND SEEKS TO MAINTAIN A CONSTANT PRICE PER SHARE OF $1.00, YOU MAY LOSE MONEY BY INVESTING IN THE FUND. SEI INVESTMENTS / PROSPECTUS 3 PERFORMANCE INFORMATION The bar chart and the performance table below illustrate the risks and volatility of an investment in the Fund. Of course, the Fund's past performance does not necessarily indicate how the Fund will perform in the future. This bar chart shows changes in the performance of the Fund's Class A Shares for one year. Since Class A Shares are invested in the same portfolio of securities, returns for Class B Shares will be substantially similar to those of the Class A Shares shown here, and will differ only to the extent that Class A Shares have lower expenses. The performance information shown is based on a full calendar year. EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC 2001 3.80%
BEST QUARTER: 1.36% (03/31/01) WORST QUARTER: 0.48% (12/31/01) This table shows the Fund's average annual total returns for Class A Shares for the periods ended December 31, 2001.
SINCE CLASS A SHARES 1 YEAR INCEPTION* ------------------------------------------------------------ SEI VP Prime Obligation Fund 3.80% 4.82% ------------------------------------------------------------
* The Fund's inception date is April 5, 2000. Please call 1-800-DIAL-SEI to obtain the Fund's current yield. 4 SEI INVESTMENTS / PROSPECTUS FUND FEES AND EXPENSES This table describes the fees and expenses that you may pay if you buy and hold Fund shares. ANNUAL FUND OPERATING EXPENSES
(EXPENSES DEDUCTED FROM FUND ASSETS) CLASS B SHARES ------------------------------------------------------------------ Investment Advisory Fees 0.08% ------------------------------------------------------------------ Distribution (12b-1) Fees None ------------------------------------------------------------------ Other Expenses 1.10% ------------------------------------------------------------------ ------------------------------------------------------------------ Total Annual Fund Operating Expenses 1.18%* ------------------------------------------------------------------
* The Fund's total actual annual fund operating expenses for the most recent fiscal year were less than the amount shown above because the Adviser and Administrator are each waiving a portion of the fees in order to keep total operating expenses at a specified level. The Adviser and/or Administrator may discontinue all or part of their waivers at any time. With these fee waivers, the Fund's actual total operating expenses are as follows: SEI VP Prime Obligation Fund 0.69% ---------------------------------------------------------
For more information about these fees, see "Investment Adviser and Sub-Adviser" and "Distribution of Fund Shares." The amount set forth above does not reflect the fees and expenses of the insurance contract that are charged by your insurance company. EXAMPLE This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and that you sell your shares at the end of the period. The Example also assumes that each year your investment has a 5% return, Fund operating expenses remain the same, and you reinvest all dividends and distributions. Although your actual costs and returns might be different, your approximate costs of investing $10,000 in the Fund would be:
1 YEAR 3 YEARS 5 YEARS 10 YEARS ------------------------------------------------------------------ SEI VP Prime Obligation Fund -- Class B Shares $ 120 $ 375 $ 649 $ 1,432 ------------------------------------------------------------------
SEI INVESTMENTS / PROSPECTUS 5 MORE INFORMATION ABOUT FUND INVESTMENTS This prospectus describes the Fund's primary investment strategies. However, the Fund also may invest in other securities, use other strategies and engage in other investment practices. These investments and strategies, as well as those described in this prospectus, are described in detail in the Fund's Statement of Additional Information (SAI). Of course, there is no guarantee that the Fund will achieve its investment goal. The investments and strategies described in this prospectus are those that the Fund uses under normal conditions. During unusual economic or market conditions, or for temporary defensive or liquidity purposes, the Fund may invest up to 100% of its assets in cash or cash equivalents that would not be consistent with the Fund's objectives. INVESTMENT ADVISER AND SUB-ADVISER SEI INVESTMENTS MANAGEMENT CORPORATION (SIMC) ACTS AS THE MANAGER OF MANAGERS OF THE FUND, AND IS RESPONSIBLE FOR THE INVESTMENT PERFORMANCE OF THE FUND SINCE IT ALLOCATES THE FUND'S ASSETS TO ONE OR MORE SUB-ADVISERS AND RECOMMENDS HIRING OR CHANGING SUB-ADVISERS TO THE BOARD OF TRUSTEES. The Sub-Adviser makes investment decisions for the assets it manages and continuously reviews, supervises and administers its investment program. SIMC oversees the Sub-Adviser to ensure compliance with the Fund's investment policies and guidelines, and monitors the Sub-Adviser's adherence to its investment style. The Board of Trustees supervises SIMC and the Sub-Adviser; establishes policies that they must follow in their management activities; and oversees the hiring and termination of Sub-Advisers recommended by SIMC. SIMC pays the Sub-Adviser out of the investment advisory fees it receives. SIMC, an SEC-registered adviser, located at One Freedom Valley Drive, Oaks, PA 19456, serves as the Adviser to the Fund. As of December 31, 2001, SIMC had approximately $50.2 billion in assets under management. SIMC received investment advisory fees of 0.08% of the average daily net assets of the Fund. SUB-ADVISER AND PORTFOLIO MANAGER WELLINGTON MANAGEMENT COMPANY, LLP: Wellington Management Company, LLP (Wellington Management), located at 75 State Street, Boston, Massachusetts 02109, serves as the Sub-Adviser to the Fund. Timothy E. Smith is the portfolio manager of the Fund. Mr. Smith has been an investment professional with Wellington Management since 1992. 6 SEI INVESTMENTS / PROSPECTUS PURCHASING AND SELLING FUND SHARES HOW TO PURCHASE FUND SHARES Shares are offered on each day that the New York Stock Exchange (NYSE) and the Federal Reserve System are open for business (a Business Day). However, the Fund may close early on Business Days that the Bond Market Association recommends that the bond markets close early. In addition, Fund shares cannot be purchased by Federal Reserve wire on federal holidays on which wire transfers are restricted. The Fund offers its Class B Shares only to insurance companies for separate accounts they establish to fund variable life insurance and variable annuity contracts. An insurance company purchases or redeems shares of the Fund based on, among other things, the amount of net contract premiums or purchase payments allocated to a separate account investment division, transfers to or from a separate account investment division, contract loans and repayments, contract withdrawals and surrenders, and benefit payments. The contract prospectus describes how contract owners may allocate, transfer and withdraw amounts to, and from, separate accounts. The price per share will be the net asset value per share (NAV) next determined after the Fund receives the insurance companies' purchase orders. The Fund calculates NAV once each Business Day at the regularly-scheduled close of normal trading on the NYSE (normally, 4:00 p.m. Eastern time), or as of the close of the Business Day. To receive the current Business Day's NAV, generally the Fund must receive an order in proper form before 4:00 p.m. Eastern time. The Fund will not accept purchase orders that request a particular day or price for the transaction or any other special condition. HOW THE FUND CALCULATES NAV NAV for one Fund share is the value of that share's portion of the net assets of the Fund. In calculating NAV, the Fund generally values its investment portfolio using the amortized cost valuation method, which is described in detail in the SAI. If the Fund thinks amortized cost is unreliable, fair value prices may be determined in good faith using methods approved by the Board of Trustees. The Fund expects its NAV to remain constant at $1.00 per share, although there is no guarantee that the Fund can accomplish this. DISTRIBUTION OF FUND SHARES SEI Investments Distribution Co. (SIDCo.) is the distributor of the shares of the Fund. SIDCo. receives no compensation for distributing the Fund's Class B Shares. For Class B Shares, shareholder servicing fees, as a percentage of average daily net assets, may be up to 0.25%. SEI INVESTMENTS / PROSPECTUS 7 DIVIDENDS, DISTRIBUTIONS AND TAXES DIVIDENDS AND DISTRIBUTIONS The Fund declares dividends daily and distributes its income monthly. The Fund makes distributions of capital gains, if any, at least annually. TAXES PLEASE CONSULT YOUR TAX ADVISOR REGARDING YOUR SPECIFIC QUESTIONS ABOUT FEDERAL, STATE AND LOCAL INCOME TAXES. Below the Fund has summarized some important tax issues that affect the Fund and its shareholders. This summary is based on current tax laws, which may change. The Fund expects that it will not have to pay income taxes if it distributes all of its net investment income and net realized capital gains at least annually. Net investment income and net realized capital gains that the Fund distributes are not currently taxable to investors when left to accumulate within a variable annuity or variable life insurance contract. The Fund does not expect to be subject to Federal excise taxes with respect to undistributed income. Special tax rates apply to life insurance companies, variable annuity contracts and variable life insurance contracts. For information on federal income taxation of a life insurance company with respect to its receipt of distributions from the Fund and federal income taxation of owners of variable annuity or variable life insurance contracts, refer to your contract prospectus. MORE INFORMATION ABOUT TAXES IS IN THE FUND'S SAI. 8 SEI INVESTMENTS / PROSPECTUS FINANCIAL HIGHLIGHTS The tables that follow present performance information about Class B Shares of the Fund. This information is intended to help you understand the Fund's financial performance for the past five years, or, if shorter, the period of the Fund's operations. The total returns in the table represent the rate that you would have earned (or lost) on an investment in the Fund, assuming you reinvested all of your dividends and distributions. This information has been audited by PricewaterhouseCoopers LLP, independent public accountants. Their report, along with the Fund's financial statements, appears in the annual report that accompanies the Funds' SAI. You can obtain the annual report, which contains more performance information, at no charge by calling 1-800-DIAL-SEI. SEI INSURANCE PRODUCTS TRUST -- FOR THE PERIOD ENDED DECEMBER 31, 2001 FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Net Realized and Unrealized Distributions Net Net Asset Gains Distributions From Asset Value, Net (Losses) from Net Realized Value, Beginning Investment on Investment Capital End of Total of Period Income Securities Income Gains Period Return+ ------------------------------------------------------------------------------------------------------------------ SEI VP PRIME OBLIGATION FUND ------------------------------------------------------------------------------------------------------------------ 2001(1) $1.00 $0.01 $ -- $(0.01) $ -- $1.00 1.48% ------------------------------------------------------------------------------------------------------------------ Ratio of Ratio of Net Investment Ratio of Ratio of Expenses Income Expenses Net to Average to Average to Investment Net Assets Net Assets Net Assets Average Income (Excluding (Excluding End of Period Net to Average Waivers and Waivers and ($ Thousands) Assets Net Assets Reimbursements) Reimbursements) ------------------------------ SEI VP PRIME OBLIGATION FUND ------------------------------ 2001(1) $246 0.69% 2.15% 1.18% 1.66% ------------------------------
+ Returns are for the period indicated and have not been annualized. (1) Commenced operations on June 1, 2001. All ratios for the period have been annualized. Amounts designated as "--" are either $0 or have been rounded to $0. SEI INVESTMENTS / PROSPECTUS 9 INVESTMENT ADVISER SEI Investments Management Corporation One Freedom Valley Drive Oaks, PA 19456 DISTRIBUTOR SEI Investments Distribution Co. One Freedom Valley Drive Oaks, PA 19456 LEGAL COUNSEL Morgan, Lewis & Bockius LLP More information about the Fund is available without charge through the following: STATEMENT OF ADDITIONAL INFORMATION (SAI) The SAI dated May 1, 2002, includes more detailed information about SEI Insurance Products Trust. The SAI is on file with the SEC and is incorporated by reference into this prospectus. This means that the SAI, for legal purposes, is a part of this prospectus. ANNUAL AND SEMI-ANNUAL REPORTS These reports will typically list the Fund's holdings and contain information from the Fund's managers about strategies and market conditions and trends and their impact on performance. The reports will also contain detailed financial information about the Fund. TO OBTAIN AN SAI, ANNUAL OR SEMI-ANNUAL REPORT, OR MORE INFORMATION: By Telephone: Call 1-800-DIAL-SEI By Mail: Write to the Fund at: One Freedom Valley Drive Oaks, PA 19456 By Internet: http://www.seic.com From the SEC: You can obtain the SAI or the Annual and Semi-Annual Reports, as well as other information about SEI Insurance Products Trust, from the EDGAR Database on the SEC's website ("http://www.sec.gov"). You may review and copy documents at the SEC Public Reference Room in Washington, D.C. (for information on the operation of the Public Reference Room, call 202-942-8090). You may request documents by mail from the SEC, upon payment of a duplicating fee, by writing to: Securities and Exchange Commission, Public Reference Section, Washington, DC 20549-0102. You may also obtain this information, upon payment of a duplicating fee, by e-mailing the SEC at the following address: publicinfo@sec.gov. The Trust's Investment Company Act registration number is 811-9183. SEI INSURANCE PRODUCTS TRUST PROSPECTUS CLASS A SHARES MAY 1, 2002 EQUITY FUNDS: SEI VP LARGE CAP VALUE FUND SEI VP LARGE CAP GROWTH FUND SEI VP SMALL CAP VALUE FUND SEI VP SMALL CAP GROWTH FUND SEI VP INTERNATIONAL EQUITY FUND SEI VP EMERGING MARKETS EQUITY FUND FIXED INCOME FUNDS: SEI VP CORE FIXED INCOME FUND SEI VP HIGH YIELD BOND FUND SEI VP INTERNATIONAL FIXED INCOME FUND SEI VP EMERGING MARKETS DEBT FUND MONEY MARKET FUND: SEI VP PRIME OBLIGATION FUND INVESTMENT ADVISER: SEI INVESTMENTS MANAGEMENT CORPORATION INVESTMENT SUB-ADVISERS: ALLIANCE CAPITAL MANAGEMENT L.P. ARTISAN PARTNERS LIMITED PARTNERSHIP BLACKROCK FINANCIAL MANAGEMENT, INC. BLACKROCK INTERNATIONAL, LTD. THE BOSTON COMPANY ASSET MANAGEMENT, LLC CAPITAL GUARDIAN TRUST COMPANY CHARTWELL INVESTMENT PARTNERS CREDIT SUISSE ASSET MANAGEMENT LLC DAVID J. GREENE & COMPANY, LLC DEUTSCHE ASSET MANAGEMENT INC. DUNCAN-HURST CAPITAL MANAGEMENT INC. IRIDIAN ASSET MANAGEMENT LLC LSV ASSET MANAGEMENT MAZAMA CAPITAL MANAGEMENT, INC. MCKINLEY CAPITAL MANAGEMENT, INC. MONTAG & CALDWELL INC. MORGAN STANLEY INVESTMENT MANAGEMENT INC. NICHOLAS-APPLEGATE CAPITAL MANAGEMENT NOMURA CORPORATE RESEARCH AND ASSET MANAGEMENT INC. OECHSLE INTERNATIONAL ADVISORS, LLC PEREGRINE CAPITAL MANAGEMENT INC. RS INVESTMENT MANAGEMENT, L.P. ROBERT W. BAIRD & CO., INCORPORATED SALOMON BROTHERS ASSET MANAGEMENT INC SANFORD C. BERNSTEIN & CO., LLC SAWGRASS ASSET MANAGEMENT, LLC SCHRODER INVESTMENT MANAGEMENT NORTH AMERICA INC. SECURITY CAPITAL RESEARCH AND MANAGEMENT INCORPORATED SG PACIFIC ASSET MANAGEMENT, INC. SGY ASSET MANAGEMENT (SINGAPORE) LTD. SHENKMAN CAPITAL MANAGEMENT, INC. STERLING CAPITAL MANAGEMENT STRATEGIC FIXED INCOME, L.L.C. TRANSAMERICA INVESTMENT MANAGEMENT, LLC WALL STREET ASSOCIATES WELLINGTON MANAGEMENT COMPANY, LLP WESTERN ASSET MANAGEMENT COMPANY THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED THESE SECURITIES OR PASSED UPON THE ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. SEI INVESTMENTS / PROSPECTUS I SEI INSURANCE PRODUCTS TRUST ------------------------------------------------------------------------------ ABOUT THIS PROSPECTUS SEI Insurance Products Trust is a mutual fund family that offers different classes of shares in separate investment portfolios (Funds). The Funds have individual investment goals and strategies and are designed exclusively as funding vehicles for variable life insurance and variable annuity contracts. This prospectus gives contract owners important information about the Class A Shares of the Funds that they should know before investing. Please read this prospectus and keep it for future reference. Variable life insurance and variable annuity account investors should also review the separate account prospectus prepared by their insurance company. This prospectus has been arranged into different sections so that you can easily review this important information. On the next page, there is some general information you should know about risk and return that is common to each of the Funds. For more detailed information about the Funds please see:
SEI VP Large Cap Value Fund 2 ------------------------------------------------------------------------ SEI VP Large Cap Growth Fund 5 ------------------------------------------------------------------------ SEI VP Small Cap Value Fund 8 ------------------------------------------------------------------------ SEI VP Small Cap Growth Fund 11 ------------------------------------------------------------------------ SEI VP International Equity Fund 14 ------------------------------------------------------------------------ SEI VP Emerging Markets Equity Fund 17 ------------------------------------------------------------------------ SEI VP Core Fixed Income Fund 20 ------------------------------------------------------------------------ SEI VP High Yield Bond Fund 23 ------------------------------------------------------------------------ SEI VP International Fixed Income Fund 26 ------------------------------------------------------------------------ SEI VP Emerging Markets Debt Fund 29 ------------------------------------------------------------------------ SEI VP Prime Obligation Fund 33 ------------------------------------------------------------------------ More Information About Fund Investments 36 ------------------------------------------------------------------------ Investment Adviser and Sub-Advisers 36 ------------------------------------------------------------------------ Purchasing and Selling Fund Shares 44 ------------------------------------------------------------------------ Dividends, Distributions and Taxes 45 ------------------------------------------------------------------------ Financial Highlights 46 ------------------------------------------------------------------------ How To Obtain More Information About SEI Insurance Products Trust Back Cover ------------------------------------------------------------------------
SEI INVESTMENTS / PROSPECTUS 1 GLOBAL ASSET ALLOCATION Each Fund has its own distinct risk and reward characteristics, investment objectives, policies and strategies. In addition to managing the Funds, SEI Investments Management Corporation (SIMC) constructs and maintains global asset allocation strategies for certain clients, and the Funds are designed in part to implement those strategies. The degree to which an investor's portfolio is invested in the particular market segments and/or asset classes represented by these Funds varies, as does the investment risk/return potential represented by each Fund. Some Funds, especially the SEI VP High Yield Bond, SEI VP Emerging Markets Equity and SEI VP Emerging Markets Debt Funds, may have extremely volatile returns. Because of the historical lack of correlation among various asset classes, an investment in a mix of Funds representing a range of asset classes as part of an asset allocation strategy may reduce the strategy's overall level of volatility. As a result, a global asset allocation strategy may reduce risk. In managing the Funds, SIMC focuses on four key principles: asset allocation, portfolio structure, the use of specialist managers, and continuous portfolio management. Asset allocation across appropriate asset classes (represented by some of the Funds) is the central theme of SIMC's investment philosophy. SIMC seeks to reduce risk further by creating a portfolio that focuses on a specific asset class. SIMC then oversees a network of specialist managers who invest the assets of these Funds in distinct segments of the market or class represented by each Fund. These specialist managers adhere to distinct investment disciplines, with the goal of providing greater consistency and predictability of results, as well as broader diversification across and within asset classes. Finally, SIMC regularly rebalances to ensure that the appropriate mix of assets is constantly in place, and constantly monitors and evaluates specialist managers for these Funds to ensure that they do not deviate from their stated investment philosophy or process. RISK/RETURN INFORMATION COMMON TO THE FUNDS Each Fund has its own investment goal and strategies for reaching that goal. Each Fund's assets are managed under the direction of SIMC and one or more Sub-Advisers who manage portions of the Funds' assets in a way that they believe will help the Funds achieve their goals. SIMC acts as "manager of managers" for the Funds, and attempts to ensure that the Sub-Adviser(s) comply with the Funds' investment policies and guidelines. SIMC also recommends the appointment of additional or replacement Sub-Advisers to the Funds' Board. Still, investing in the Funds involves risks, and there is no guarantee that a Fund will achieve its goal. SIMC and the Sub-Advisers make judgments about the securities markets, the economy, and companies, but these judgments may not anticipate actual market movements or the impact of economic conditions on company performance. In fact, no matter how good a job SIMC and the Sub-Advisers do, you could lose money on your investment in a Fund, just as you could with other investments. A Fund share is not a bank deposit and it is not insured or guaranteed by the FDIC or any other government agency. Each Fund is a mutual fund that is available solely as a funding vehicle for variable annuity and variable life insurance contracts sold by various insurance companies. A mutual fund pools investors' money and, using professional investment managers, invests it in securities. The value of your investment in a Fund (other than the SEI VP Prime Obligation Fund) is based on the market prices of the securities the Fund holds. These prices change daily due to economic and other events that affect securities markets generally, as well as those that affect particular companies and other issuers. These price movements, sometimes called volatility, may be greater or lesser depending on the types of securities the Fund owns and the markets in which they trade. The estimated level of volatility for each Fund is set forth in the Fund Summaries that follow. The effect on a Fund of a change in the value of a single security will depend on how widely the Fund diversifies its holdings. THE INVESTMENT OBJECTIVES AND POLICIES OF THE FUNDS MAY BE SIMILAR TO THOSE OF OTHER RETAIL MUTUAL FUNDS WHICH CAN BE PURCHASED OUTSIDE OF A VARIABLE INSURANCE PRODUCT, AND THAT ARE MANAGED BY THE SAME INVESTMENT ADVISER OR SUB-ADVISERS. THE INVESTMENT RESULTS OF THE FUNDS, HOWEVER, MAY BE HIGHER OR LOWER THAN THE RESULTS OF SUCH OTHER RETAIL MUTUAL FUNDS. THERE CAN BE NO ASSURANCE, AND NO REPRESENTATION IS MADE, THAT THE INVESTMENT RESULTS OF ANY OF THE FUNDS WILL BE COMPARABLE TO THE INVESTMENT RESULTS OF ANY OTHER RETAIL MUTUAL FUND, EVEN IF THE OTHER RETAIL MUTUAL FUND HAS THE SAME INVESTMENT ADVISER OR SUB-ADVISERS. 2 SEI INVESTMENTS / PROSPECTUS SEI VP LARGE CAP VALUE FUND ------------------------------------------------------------------------------ FUND SUMMARY INVESTMENT GOAL: Long-term growth of capital and income SHARE PRICE VOLATILITY: Medium to high PRINCIPAL INVESTMENT Utilizing multiple specialist STRATEGY: sub-advisers that manage in a value style, the Fund invests in large cap income-producing U.S. common stocks
-------------------------------------------------------------------------------- INVESTMENT STRATEGY Under normal circumstances, the SEI VP Large Cap Value Fund will invest at least 80% of its net assets in equity securities of large companies. The Fund will invest primarily in income-producing common stocks of U.S. companies with market capitalizations of more than $1 billion. The Fund uses a multi-manager approach, relying on a number of Sub-Advisers with differing investment philosophies to manage portions of the Fund's portfolio under the general supervision of SIMC. Each Sub-Adviser, in managing its portion of the Fund's assets, selects stocks it believes are undervalued in light of such fundamental characteristics as earnings, book value or return on equity. The Fund's portfolio is diversified as to issuers and industries. WHAT ARE THE RISKS OF INVESTING IN THE FUND? Since it purchases equity securities, the Fund is subject to the risk that stock prices will fall over short or extended periods of time. Historically, the equity markets have moved in cycles, and the value of the Fund's securities may fluctuate drastically from day to day. Individual companies may report poor results or be negatively affected by industry and/or economic trends and developments. The prices of securities issued by such companies may suffer a decline in response. These factors contribute to price volatility, which is the principal risk of investing in the Fund. The Fund is also subject to the risk that large capitalization value stocks may underperform other segments of the equity markets or the equity markets as a whole. SEI INVESTMENTS / PROSPECTUS 3 PERFORMANCE INFORMATION The bar chart and the performance table below illustrate the risks and volatility of an investment in the Fund. Of course, the Fund's past performance does not necessarily indicate how the Fund will perform in the future. This bar chart shows the performance of the Fund's Class A Shares for one year. The performance information shown is based on a full calendar year. EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
2001 -2.91%
BEST QUARTER: 7.40% (12/31/01) WORST QUARTER: -10.42% (09/30/01) This table compares the Fund's average annual total returns for Class A Shares for the periods ended December 31, 2001 to those of the Frank Russell 1000 Value Index.
SINCE CLASS A SHARES 1 YEAR INCEPTION* ------------------------------------------------------------ SEI VP Large Cap Value Fund -2.91% 3.41% ------------------------------------------------------------ Frank Russell 1000 Value Index** -5.59% 1.04% ------------------------------------------------------------
* The Fund's inception date is April 5, 2000. The Index inception date is April 30, 2000. ** An index measures the market prices of a specific group of securities in a particular market or securities in a market sector. You cannot invest directly in an index. Unlike a mutual fund, an index does not have an investment adviser and does not pay any commissions or expenses. If an index had expenses, its performance would be lower. The Frank Russell 1000 Value Index is a widely-recognized, capitalization-weighted (companies with larger market capitalizations have more influence than those with smaller market capitalizations) index that consists of a subset of the 1000 largest U.S. companies with lower growth rates and price-to-book ratios. 4 SEI INVESTMENTS / PROSPECTUS FUND FEES AND EXPENSES This table describes the fees and expenses that you may pay if you buy and hold Fund shares. ANNUAL FUND OPERATING EXPENSES
(EXPENSES DEDUCTED FROM FUND ASSETS) ----------------------------------------------------------- Investment Advisory Fees 0.35% ----------------------------------------------------------- Distribution (12b-1) Fees None ----------------------------------------------------------- Other Expenses 0.79% ----------------------------------------------------------- ----------------------------------------------------------- Total Annual Fund Operating Expenses 1.14%* ----------------------------------------------------------- -----------------------------------------------------------
* The Fund's total actual annual fund operating expenses for the most recent fiscal year were less than the amount shown above because the Adviser and Administrator are each waiving a portion of the fees in order to keep total operating expenses at a specified level. The Adviser and/or Administrator may discontinue all or part of their waivers at any time. With these fee waivers, the Fund's actual total operating expenses are as follows: SEI VP Large Cap Value Fund -- Class A Shares 0.85% ---------------------------------------------------------
For more information about these fees, see "Investment Adviser and Sub-Advisers" and "Distribution of Fund Shares." The amount set forth above does not reflect the fees and expenses of the insurance contract that are charged by your insurance company. EXAMPLE This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and that you sell your shares at the end of the period. The Example also assumes that each year your investment has a 5% return, Fund operating expenses remain the same, and you reinvest all dividends and distributions. Although your actual costs and returns might be different, your approximate costs of investing $10,000 in the Fund would be:
1 YEAR 3 YEARS 5 YEARS 10 YEARS ------------------------------------------------------------------ SEI VP Large Cap Value Fund -- Class A Shares $ 116 $ 362 $ 628 $ 1,386 ------------------------------------------------------------------
SEI INVESTMENTS / PROSPECTUS 5 SEI VP LARGE CAP GROWTH FUND ------------------------------------------------------------------------------ FUND SUMMARY INVESTMENT GOAL: Capital appreciation SHARE PRICE VOLATILITY: Medium to high PRINCIPAL INVESTMENT Utilizing multiple specialist STRATEGY: sub-advisers that manage in a growth style, the Fund invests in large cap U.S. common stocks
-------------------------------------------------------------------------------- INVESTMENT STRATEGY Under normal circumstances, the SEI VP Large Cap Growth Fund will invest at least 80% of its net assets in equity securities of large companies. The Fund will invest primarily in common stocks of U.S. companies with market capitalizations of more than $1 billion. The Fund uses a multi-manager approach, relying on a number of Sub-Advisers with differing investment philosophies to manage portions of the Fund's portfolio under the general supervision of SIMC. Each Sub-Adviser, in managing its portion of the Fund's assets, selects stocks it believes have significant growth potential in light of such characteristics as revenue and earnings growth and positive earnings surprises. The Fund's portfolio is diversified as to issuers and industries. WHAT ARE THE RISKS OF INVESTING IN THE FUND? Since it purchases equity securities, the Fund is subject to the risk that stock prices will fall over short or extended periods of time. Historically, the equity markets have moved in cycles, and the value of the Fund's securities may fluctuate drastically from day to day. Individual companies may report poor results or be negatively affected by industry and/or economic trends and developments. The prices of securities issued by such companies may suffer a decline in response. These factors contribute to price volatility, which is the principal risk of investing in the Fund. The Fund is subject to the risk that large capitalization growth stocks may underperform other segments of the equity markets or the equity markets as a whole. 6 SEI INVESTMENTS / PROSPECTUS PERFORMANCE INFORMATION The bar chart and the performance table below illustrate the risks and volatility of an investment in the Fund. Of course, the Fund's past performance does not necessarily indicate how the Fund will perform in the future. This bar chart shows the performance of the Fund's Class A Shares for one year. The performance information shown is based on a full calendar year. EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
2001 -27.14%
BEST QUARTER: 18.22% (12/31/01) WORST QUARTER: -25.67% (03/31/01) This table compares the Fund's average annual total returns for Class A Shares for the periods ended December 31, 2001 to those of the Frank Russell 1000 Growth Index.
SINCE CLASS A SHARES 1 YEAR INCEPTION* ------------------------------------------------------------- SEI VP Large Cap Growth Fund -27.14% -29.50% ------------------------------------------------------------- Frank Russell 1000 Growth Index** -20.42% -26.03% -------------------------------------------------------------
* The Fund's inception date is April 5, 2000. The Index inception date is April 30, 2000. ** An index measures the market prices of a specific group of securities in a particular market or securities in a market sector. You cannot invest directly in an index. Unlike a mutual fund, an index does not have an investment adviser and does not pay any commissions or expenses. If an index had expenses, its performance would be lower. The Frank Russell 1000 Growth Index is a widely-recognized, capitalization-weighted (companies with larger market capitalizations have more influence than those with smaller market capitalizations) index that consists of a subset of the 1000 largest U.S. companies with higher growth rates and price-to-book ratios. SEI INVESTMENTS / PROSPECTUS 7 FUND FEES AND EXPENSES This table describes the fees and expenses that you may pay if you buy and hold Fund shares. ANNUAL FUND OPERATING EXPENSES
(EXPENSES DEDUCTED FROM FUND ASSETS) ----------------------------------------------------------- Investment Advisory Fees 0.40% ----------------------------------------------------------- Distribution (12b-1) Fees None ----------------------------------------------------------- Other Expenses 0.79% ----------------------------------------------------------- ----------------------------------------------------------- Total Annual Fund Operating Expenses 1.19%* ----------------------------------------------------------- -----------------------------------------------------------
* The Fund's total actual annual fund operating expenses for the most recent fiscal year were less than the amount shown above because the Adviser and Administrator are each waiving a portion of the fees in order to keep total operating expenses at a specified level. The Adviser and/or Administrator may discontinue all or part of their waivers at any time. With these fee waivers, the Fund's actual total operating expenses are as follows: SEI VP Large Cap Growth Fund -- Class A Shares 0.85% ---------------------------------------------------------
For more information about these fees, see "Investment Adviser and Sub-Advisers" and "Distribution of Fund Shares." The amount set forth above does not reflect the fees and expenses of the insurance contract that are charged by your insurance company. EXAMPLE This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and that you sell your shares at the end of the period. The Example also assumes that each year your investment has a 5% return, Fund operating expenses remain the same, and you reinvest all dividends and distributions. Although your actual costs and returns might be different, your approximate costs of investing $10,000 in the Fund would be:
1 YEAR 3 YEARS 5 YEARS 10 YEARS ------------------------------------------------------------------ SEI VP Large Cap Growth Fund -- Class A Shares $ 121 $ 378 $ 654 $ 1,443 ------------------------------------------------------------------
8 SEI INVESTMENTS / PROSPECTUS SEI VP SMALL CAP VALUE FUND ------------------------------------------------------------------------------ FUND SUMMARY INVESTMENT GOAL: Capital appreciation SHARE PRICE VOLATILITY: High PRINCIPAL INVESTMENT Utilizing multiple specialist STRATEGY: sub-advisers that manage in a value style, the Fund invests in common stocks of smaller U.S. companies
-------------------------------------------------------------------------------- INVESTMENT STRATEGY Under normal circumstances, the SEI VP Small Cap Value Fund will invest at least 80% of its net assets in equity securities of small companies. The Fund will invest primarily in common stocks of U.S. companies with market capitalizations of less than $2 billion. The Fund uses a multi-manager approach, relying upon a number of Sub-Advisers to manage portions of the Fund's portfolio under the general supervision of SIMC. Each Sub-Adviser, in managing its portion of the Fund's assets, selects stocks it believes are undervalued in light of such fundamental characteristics as earnings, book value or return on equity. The Fund's portfolio is diversified as to issuers and industries. WHAT ARE THE RISKS OF INVESTING IN THE FUND? Since it purchases equity securities, the Fund is subject to the risk that stock prices will fall over short or extended periods of time. Historically, the equity markets have moved in cycles, and the value of the Fund's securities may fluctuate drastically from day to day. Individual companies may report poor results or be negatively affected by industry and/or economic trends and developments. The prices of securities issued by such companies may suffer a decline in response. These factors contribute to price volatility, which is the principal risk of investing in the Fund. The Fund is also subject to the risk that small capitalization value stocks may underperform other segments of the equity markets or the equity markets as a whole. The smaller capitalization companies that the Fund invests in may be more vulnerable to adverse business or economic events than larger, more established companies. In particular, these small companies may have limited product lines, markets and financial resources, and may depend upon a relatively small management group. Therefore, small cap stocks may be more volatile than those of larger companies. These securities may be traded over the counter or listed on an exchange. SEI INVESTMENTS / PROSPECTUS 9 PERFORMANCE INFORMATION The bar chart and the performance table below illustrate the risks and volatility of an investment in the Fund. Of course, the Fund's past performance does not necessarily indicate how the Fund will perform in the future. This bar chart shows the performance of the Fund's Class A Shares for one year. The performance information shown is based on a full calendar year. EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
2001 14.89%
BEST QUARTER: 16.64% (12/31/01) WORST QUARTER: -12.77% (09/30/01) This table compares the Fund's average annual total returns for Class A Shares for the periods ended December 31, 2001 to those of the Frank Russell 2000 Value Index.
SINCE CLASS A SHARES 1 YEAR INCEPTION* ------------------------------------------------------------ SEI VP Small Cap Value Fund 14.89% 21.62% ------------------------------------------------------------ Frank Russell 2000 Value Index** 14.02% 19.25% ------------------------------------------------------------
* The Fund's inception date is April 5, 2000. The Index inception date is April 30, 2000. ** An index measures the market prices of a specific group of securities in a particular market or securities in a market sector. You cannot invest directly in an index. Unlike a mutual fund, an index does not have an investment adviser and does not pay any commissions or expenses. If an index had expenses, its performance would be lower. The Frank Russell 2000 Value Index is a widely-recognized, capitalization-weighted (companies with larger market capitalizations have more influence than those with smaller market capitalizations) index that consists of a subset of the 2000 smallest U.S. companies out of the 3000 largest U.S. companies with lower growth rates and price-to-book ratios. 10 SEI INVESTMENTS / PROSPECTUS FUND FEES AND EXPENSES This table describes the fees and expenses that you may pay if you buy and hold Fund shares. ANNUAL FUND OPERATING EXPENSES
(EXPENSES DEDUCTED FROM FUND ASSETS) ----------------------------------------------------------- Investment Advisory Fees 0.65% ----------------------------------------------------------- Distribution (12b-1) Fees None ----------------------------------------------------------- Other Expenses 0.80% ----------------------------------------------------------- ----------------------------------------------------------- Total Annual Fund Operating Expenses 1.45%* ----------------------------------------------------------- -----------------------------------------------------------
* The Fund's total actual annual fund operating expenses for the most recent fiscal year were less than the amount shown above because the Adviser and Administrator are each waiving a portion of the fees in order to keep total operating expenses at a specified level. The Adviser and/or Administrator may discontinue all or part of their waivers at any time. With these fee waivers, the Fund's actual total operating expenses are as follows: SEI VP Small Cap Value Fund -- Class A Shares 1.10% ---------------------------------------------------------
For more information about these fees, see "Investment Adviser and Sub-Advisers" and "Distribution of Fund Shares." The amount set forth above does not reflect the fees and expenses of the insurance contract that are charged by your insurance company. EXAMPLE This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and that you sell your shares at the end of the period. The Example also assumes that each year your investment has a 5% return, Fund operating expenses remain the same, and you reinvest all dividends and distributions. Although your actual costs and returns might be different, your approximate costs of investing $10,000 in the Fund would be:
1 YEAR 3 YEARS 5 YEARS 10 YEARS ------------------------------------------------------------------ SEI VP Small Cap Value Fund -- Class A Shares $ 148 $ 459 $ 792 $ 1,735 ------------------------------------------------------------------
SEI INVESTMENTS / PROSPECTUS 11 SEI VP SMALL CAP GROWTH FUND ------------------------------------------------------------------------------ FUND SUMMARY INVESTMENT GOAL: Long-term capital appreciation SHARE PRICE VOLATILITY: High PRINCIPAL INVESTMENT Utilizing multiple specialist STRATEGY: sub-advisers that manage in a growth style, the Fund invests in common stocks of smaller U.S. companies
-------------------------------------------------------------------------------- INVESTMENT STRATEGY Under normal circumstances, the SEI VP Small Cap Growth Fund will invest at least 80% of its net assets in equity securities of small companies. The Fund will invest primarily in common stocks of U.S. companies with market capitalizations of less than $2 billion. The Fund uses a multi-manager approach, relying upon a number of Sub-Advisers to manage portions of the Fund's portfolio under the general supervision of SIMC. Each Sub-Adviser, in managing its portion of the Fund's assets, selects stocks it believes have significant growth potential in light of such characteristics as revenue and earnings growth and positive earnings surprises. The Fund's portfolio is diversified as to issuers and industries. WHAT ARE THE RISKS OF INVESTING IN THE FUND? Since it purchases equity securities, the Fund is subject to the risk that stock prices will fall over short or extended periods of time. Historically, the equity markets have moved in cycles, and the value of the Fund's securities may fluctuate drastically from day to day. Individual companies may report poor results or be negatively affected by industry and/or economic trends and developments. The prices of securities issued by such companies may suffer a decline in response. These factors contribute to price volatility, which is the principal risk of investing in the Fund. The Fund is also subject to the risk that small capitalization growth stocks may underperform other segments of the equity markets or the equity markets as a whole. The smaller capitalization companies that the Fund invests in may be more vulnerable to adverse business or economic events than larger, more established companies. In particular, these small companies may have limited product lines, markets and financial resources, and may depend upon a relatively small management group. Therefore, small cap stocks may be more volatile than those of larger companies. These securities may be traded over the counter or listed on an exchange. 12 SEI INVESTMENTS / PROSPECTUS PERFORMANCE INFORMATION The bar chart and the performance table below illustrate the risks and volatility of an investment in the Fund. Of course, the Fund's past performance does not necessarily indicate how the Fund will perform in the future. This bar chart shows the performance of the Fund's Class A Shares for one year. The performance information shown is based on a full calendar year. EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
2001 -21.91%
BEST QUARTER: 17.68% (12/31/01) WORST QUARTER: -28.92% (09/30/01) This table compares the Fund's average annual total returns for Class A Shares for the periods ended December 31, 2001 to those of the Frank Russell 2000 Growth Index.
SINCE CLASS A SHARES 1 YEAR INCEPTION* ------------------------------------------------------------- SEI VP Small Cap Growth Fund -21.91% -15.14% ------------------------------------------------------------- Frank Russell 2000 Growth Index** -9.23% -18.12% -------------------------------------------------------------
* The Fund's inception date is April 5, 2000. The Index inception date is April 30, 2000. ** An index measures the market prices of a specific group of securities in a particular market or securities in a market sector. You cannot invest directly in an index. Unlike a mutual fund, an index does not have an investment adviser and does not pay any commissions or expenses. If an index had expenses, its performance would be lower. The Frank Russell 2000 Growth Index is a widely recognized, capitalization-weighted (companies with larger market capitalizations have more influence than those with smaller market capitalizations) index that consists of a subset of the 2000 smallest U.S. companies out of the 3000 largest U.S. companies with higher growth rates and price-to-book ratios. SEI INVESTMENTS / PROSPECTUS 13 FUND FEES AND EXPENSES This table describes the fees and expenses that you may pay if you buy and hold Fund shares. ANNUAL FUND OPERATING EXPENSES
(EXPENSES DEDUCTED FROM FUND ASSETS) ----------------------------------------------------------- Investment Advisory Fees 0.65% ----------------------------------------------------------- Distribution (12b-1) Fees None ----------------------------------------------------------- Other Expenses 0.81% ----------------------------------------------------------- ----------------------------------------------------------- Total Annual Fund Operating Expenses 1.46%* ----------------------------------------------------------- -----------------------------------------------------------
* The Fund's total actual annual fund operating expenses for the most recent fiscal year were less than the amount shown above because the Adviser and Administrator are each waiving a portion of the fees in order to keep total operating expenses at a specified level. The Adviser and/or Administrator may discontinue all or part of their waivers at any time. With these fee waivers, the Fund's actual total operating expenses are as follows: SEI VP Small Cap Growth Fund -- Class A Shares 1.10% ---------------------------------------------------------
For more information about these fees, see "Investment Adviser and Sub-Advisers" and "Distribution of Fund Shares." The amount set forth above does not reflect the fees and expenses of the insurance contract that are charged by your insurance company. EXAMPLE This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and that you sell your shares at the end of the period. The Example also assumes that each year your investment has a 5% return, Fund operating expenses remain the same, and you reinvest all dividends and distributions. Although your actual costs and returns might be different, your approximate costs of investing $10,000 in the Fund would be:
1 YEAR 3 YEARS 5 YEARS 10 YEARS ------------------------------------------------------------------ SEI VP Small Cap Growth Fund -- Class A Shares $ 149 $ 462 $ 797 $ 1,746 ------------------------------------------------------------------
14 SEI INVESTMENTS / PROSPECTUS SEI VP INTERNATIONAL EQUITY FUND ------------------------------------------------------------------------------ FUND SUMMARY INVESTMENT GOAL: Capital appreciation SHARE PRICE VOLATILITY: Medium to high PRINCIPAL INVESTMENT Utilizing multiple specialist STRATEGY: sub-advisers, the Fund invests in equity securities of foreign companies
-------------------------------------------------------------------------------- INVESTMENT STRATEGY Under normal circumstances, the SEI VP International Equity Fund will invest at least 80% of its net assets in equity securities. The Fund will invest primarily in common stocks and other equity securities of issuers located outside the United States. The Fund primarily invests in companies located in developed countries, but may also invest in companies located in emerging markets. The Fund uses a multi-manager approach, relying upon a number of Sub-Advisers to manage portions of the Fund's portfolio under the general supervision of SIMC. WHAT ARE THE RISKS OF INVESTING IN THE FUND? Since it purchases equity securities, the Fund is subject to the risk that stock prices will fall over short or extended periods of time. Historically, the equity markets have moved in cycles, and the value of the Fund's securities may fluctuate drastically from day to day. Individual companies may report poor results or be negatively affected by industry and/or economic trends and developments. The prices of securities issued by such companies may suffer a decline in response. In the case of foreign stocks, these fluctuations will reflect international economic and political events, as well as changes in currency valuations relative to the U.S. dollar. These factors contribute to price volatility, which is the principal risk of investing in the Fund. Investing in issuers located in foreign countries poses distinct risks since political and economic events unique to a country or region will affect those markets and their issuers. These events will not necessarily affect the U.S. economy or similar issuers located in the United States. In addition, investments in foreign countries are generally denominated in a foreign currency. As a result, changes in the value of those currencies compared to the U.S. dollar may affect (positively or negatively) the value of a Fund's investments. These currency movements may happen separately from and in response to events that do not otherwise affect the value of the security in the issuer's home country. These various risks will be even greater for investments in emerging market countries. Emerging market countries are countries that the World Bank or the United Nations considers to be emerging or developing. Emerging markets may be more likely to experience political turmoil or rapid changes in market or economic conditions than more developed countries. Emerging market countries often have less uniformity in accounting and reporting requirements and less reliable securities valuations. It is sometimes difficult to obtain and enforce court judgments in such countries and there is often a greater potential for nationalization and/or expropriation of assets by the government of an emerging market country. In addition, the financial stability of issuers (including governments) in emerging markets countries may be more precarious than in other countries. As a result, there will tend to be an increased risk of price volatility associated with the Fund's investments in emerging market countries, which may be magnified by currency fluctuations relative to the U.S. dollar. The Fund is also subject to the risk that developed international equity securities may underperform other segments of the equity markets or the equity markets as a whole. SEI INVESTMENTS / PROSPECTUS 15 PERFORMANCE INFORMATION The bar chart and the performance table below illustrate the risks and volatility of an investment in the Fund. Of course, the Fund's past performance does not necessarily indicate how the Fund will perform in the future. This bar chart shows the performance of the Fund's Class A Shares for one year. The performance information shown is based on a full calendar year. EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
2001 -24.05%
BEST QUARTER: 10.18% (12/31/01) WORST QUARTER: -18.21% (09/30/01) This table compares the Fund's average annual total returns for Class A Shares for the periods ended December 31, 2001 to those of the MSCI EAFE Index.
SINCE CLASS A SHARES 1 YEAR INCEPTION* ------------------------------------------------------------- SEI VP International Equity Fund -24.05% -24.73% ------------------------------------------------------------- MSCI EAFE Index** -21.44% -18.41% -------------------------------------------------------------
* The Fund's inception date is April 5, 2000. The Index inception date is April 30, 2000. ** An index measures the market prices of a specific group of securities in a particular market or securities in a market sector. You cannot invest directly in an index. Unlike a mutual fund, an index does not have an investment adviser and does not pay any commissions or expenses. If an index had expenses, its performance would be lower. The MSCI EAFE Index is a widely-recognized, capitalization-weighted (companies with larger market capitalizations have more influence than those with smaller capitalizations) index of over 900 securities listed on the stock exchange in Europe, Australia and the Far East. 16 SEI INVESTMENTS / PROSPECTUS FUND FEES AND EXPENSES This table describes the fees and expenses that you may pay if you buy and hold Fund shares. ANNUAL FUND OPERATING EXPENSES
(EXPENSES DEDUCTED FROM FUND ASSETS) ----------------------------------------------------------- Investment Advisory Fees 0.51% ----------------------------------------------------------- Distribution (12b-1) Fees None ----------------------------------------------------------- Other Expenses 1.53% ----------------------------------------------------------- ----------------------------------------------------------- Total Annual Fund Operating Expenses 2.04%* ----------------------------------------------------------- -----------------------------------------------------------
* The Fund's total actual annual fund operating expenses for the most recent fiscal year were less than the amount shown above because the Adviser and Administrator are each waiving a portion of the fees in order to keep total operating expenses at a specified level. The Adviser and/or Administrator may discontinue all or part of their waivers at any time. With these fee waivers, the Fund's actual total operating expenses are as follows: SEI VP International Equity Fund -- Class A Shares 1.28% ---------------------------------------------------------
For more information about these fees, see "Investment Adviser and Sub-Advisers" and "Distribution of Fund Shares." The amount set forth above does not reflect the fees and expenses of the insurance contract that are charged by your insurance company. EXAMPLE This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and that you sell your shares at the end of the period. The Example also assumes that each year your investment has a 5% return, Fund operating expenses remain the same, and you reinvest all dividends and distributions. Although your actual costs and returns might be different, your approximate costs of investing $10,000 in the Fund would be:
1 YEAR 3 YEARS 5 YEARS 10 YEARS ------------------------------------------------------------------ SEI VP International Equity Fund -- Class A Shares $ 207 $ 640 $ 1,098 $ 2,369 ------------------------------------------------------------------
SEI INVESTMENTS / PROSPECTUS 17 SEI VP EMERGING MARKETS EQUITY FUND ------------------------------------------------------------------------------ FUND SUMMARY INVESTMENT GOAL: Capital appreciation SHARE PRICE VOLATILITY: Very high PRINCIPAL INVESTMENT Utilizing multiple specialist STRATEGY: sub-advisers, the Fund invests in equity securities of emerging markets companies
-------------------------------------------------------------------------------- INVESTMENT STRATEGY Under normal circumstances, the SEI VP Emerging Markets Equity Fund will invest at least 80% of its net assets in equity securities of emerging market issuers. The Fund will invest primarily in common stocks and other equity securities of foreign companies located in emerging market countries. The Fund uses a multi-manager approach, relying upon one or more Sub-Advisers to manage portions of the Fund's portfolio under the general supervision of SIMC. The Fund's portfolio is diversified as to issuers, market capitalization, industry and country. WHAT ARE THE RISKS OF INVESTING IN THE FUND? Since it purchases equity securities, the Fund is subject to the risk that stock prices will fall over short or extended periods of time. Historically, the equity markets have moved in cycles, and the value of the Fund's securities may fluctuate drastically from day to day. Individual companies may report poor results or be negatively affected by industry and/or economic trends and developments. The prices of securities issued by such companies may suffer a decline in response. In the case of foreign stocks, these fluctuations will reflect international economic and political events, as well as changes in currency valuations relative to the U.S. dollar. These factors contribute to price volatility, which is the principal risk of investing in the Fund. Investing in issuers located in foreign countries poses distinct risks since political and economic events unique to a country or region will affect those markets and their issuers. These events will not necessarily affect the U.S. economy or similar issuers located in the United States. In addition, investments in foreign countries are generally denominated in a foreign currency. As a result, changes in the value of those currencies compared to the U.S. dollar may affect (positively or negatively) the value of a Fund's investments. These currency movements may happen separately from and in response to events that do not otherwise affect the value of the security in the issuer's home country. These various risks will be even greater for investments in emerging market countries. Emerging market countries are countries that the World Bank or the United Nations considers to be emerging or developing. Emerging markets may be more likely to experience political turmoil or rapid changes in market or economic conditions than more developed countries. Emerging market countries often have less uniformity in accounting and reporting requirements and less reliable securities valuations. It is sometimes difficult to obtain and enforce court judgments in such countries and there is often a greater potential for nationalization and/or expropriation of assets by the government of an emerging market country. In addition, the financial stability of issuers (including governments) in emerging markets countries may be more precarious than in other countries. As a result, there will tend to be an increased risk of price volatility associated with the Fund's investments in emerging market countries, which may be magnified by currency fluctuations relative to the U.S. dollar. The Fund is also subject to the risk that emerging market equity securities may underperform other segments of the equity markets or the equity markets as a whole. 18 SEI INVESTMENTS / PROSPECTUS PERFORMANCE INFORMATION The bar chart and the performance table below illustrate the risks and volatility of an investment in the Fund. Of course, the Fund's past performance does not necessarily indicate how the Fund will perform in the future. This bar chart shows the performance of the Fund's Class A Shares for one year. The performance information shown is based on a full calendar year. EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
2001 -11.08%
BEST QUARTER: 25.62% (12/31/01) WORST QUARTER: -24.23% (09/30/01) This table compares the Fund's average annual total returns for Class A Shares for the periods ended December 31, 2001 to those of the MSCI Emerging Markets Free Index.
SINCE CLASS A SHARES 1 YEAR INCEPTION* ------------------------------------------------------------- SEI VP Emerging Markets Equity Fund -11.08% -28.84% ------------------------------------------------------------- MSCI Emerging Markets Free Index** 1.34% -15.23% -------------------------------------------------------------
* The Fund's inception date is April 5, 2000. The Index inception date is April 30, 2000. ** An index measures the market prices of a specific group of securities in a particular market or securities in a market sector. You cannot invest directly in an index. Unlike a mutual fund, an index does not have an investment adviser and does not pay any commissions or expenses. If an index had expenses, its performance would be lower. The MSCI Emerging Markets Free Index is a widely-recognized, capitalization-weighted (companies with larger market capitalizations have more influence than those with smaller capitalizations) index of over 800 stocks from approximately 17 emerging market countries. SEI INVESTMENTS / PROSPECTUS 19 FUND FEES AND EXPENSES This table describes the fees and expenses that you may pay if you buy and hold Fund shares. ANNUAL FUND OPERATING EXPENSES
(EXPENSES DEDUCTED FROM FUND ASSETS) ----------------------------------------------------------- Investment Advisory Fees 1.05% ----------------------------------------------------------- Distribution (12b-1) Fees None ----------------------------------------------------------- Other Expenses 2.65% ----------------------------------------------------------- ----------------------------------------------------------- Total Annual Fund Operating Expenses 3.70%* ----------------------------------------------------------- -----------------------------------------------------------
* The Fund's total actual annual fund operating expenses for the most recent fiscal year were less than the amount shown above because the Adviser and Administrator are each waiving a portion of the fees in order to keep total operating expenses at a specified level. The Adviser and/or Administrator may discontinue all or part of their waivers at any time. With these fee waivers, the Fund's actual total operating expenses are as follows: SEI VP Emerging Markets Equity Fund -- Class A Shares 1.95% ---------------------------------------------------------
For more information about these fees, see "Investment Adviser and Sub-Advisers" and "Distribution of Fund Shares." The amount set forth above does not reflect the fees and expenses of the insurance contract that are charged by your insurance company. EXAMPLE This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and that you sell your shares at the end of the period. The Example also assumes that each year your investment has a 5% return, Fund operating expenses remain the same, and you reinvest all dividends and distributions. Although your actual costs and returns might be different, your approximate costs of investing $10,000 in the Fund would be:
1 YEAR 3 YEARS 5 YEARS 10 YEARS ------------------------------------------------------------------ SEI VP Emerging Markets Equity Fund -- Class A Shares $ 372 $1,132 $1,911 $ 3,950 ------------------------------------------------------------------
20 SEI INVESTMENTS / PROSPECTUS SEI VP CORE FIXED INCOME FUND ------------------------------------------------------------------------------ FUND SUMMARY INVESTMENT GOAL: Current income and preservation of capital SHARE PRICE VOLATILITY: Medium PRINCIPAL INVESTMENT Utilizing multiple specialist STRATEGY: sub-advisers that have fixed income investment expertise, the Fund invests in investment grade U.S. fixed income securities
-------------------------------------------------------------------------------- INVESTMENT STRATEGY Under normal circumstances, the SEI VP Core Fixed Income Fund will invest at least 80% of its net assets in fixed income securities. The Fund will invest primarily in investment grade U.S. corporate and government fixed income securities, including mortgage-backed securities. The Fund uses a multi-manager approach, relying upon one or more Sub-Advisers to manage portions of the Fund's portfolio under the general supervision of SIMC. Sub-Advisers are selected for their expertise in managing various kinds of fixed income securities, and each Sub-Adviser makes investment decisions based on an analysis of yield trends, credit ratings and other factors in accordance with its particular discipline. While each Sub-Adviser chooses securities of different types and maturities, the Fund in the aggregate generally will have a dollar-weighted average duration that is consistent with that of the broad U.S. fixed income market (currently 4.9 years). WHAT ARE THE RISKS OF INVESTING IN THE FUND? The prices of the Fund's fixed income securities respond to economic developments, particularly interest rate changes, as well as to perceptions about the creditworthiness of individual issuers, including governments and their agencies. Generally, the Fund's fixed income securities will decrease in value if interest rates rise and vice versa, and the volatility of lower-rated securities is even greater than that of higher-rated securities. Also, longer-term securities are generally more volatile, so the average maturity or duration of these securities affects risk. Although the Fund's U.S. government securities are considered to be among the safest investments, they are not guaranteed against price movements due to changing interest rates. Obligations issued by some U.S. government agencies are backed by the U.S. Treasury, while others are backed solely by the ability of the agency to borrow from the U.S. Treasury or by the agency's own resources. Mortgage-backed securities are fixed income securities representing an interest in a pool of underlying mortgage loans. Mortgage-backed securities are sensitive to changes in interest rates, but may respond to these changes differently from other fixed income securities due to the possibility of prepayment of the underlying mortgage loans. As a result, it may not be possible to determine in advance the actual maturity date or average life of a mortgage-backed security. Rising interest rates tend to discourage refinancings, with the result that the average life and volatility of the security will increase, exacerbating its decrease in market price. When interest rates fall, however, mortgage-backed securities may not gain as much in market value because of the expectation of additional mortgage prepayments, that must be reinvested at lower interest rates. Prepayment risk may make it difficult to calculate the average maturity of the Fund's mortgage-backed securities and, therefore, to assess the volatility risk of the Fund. The privately issued mortgage-backed securities that the Fund invests in are not issued or guaranteed by the U.S. government or its agencies or instrumentalities and may bear a greater risk of nonpayment than securities that are backed by the U.S. Treasury. However, the timely payment of principal and interest normally is supported, at least partially, by various credit enhancements by banks and other financial institutions. There can be no assurance, however, that such credit enhancements will support full payment of the principal and interest on such obligations. In addition, changes in the credit quality of the entity that provides credit enhancement could cause losses to the Fund and affect its share price. The Fund is also subject to the risk that U.S. fixed income securities may underperform other segments of the fixed income markets or the fixed income markets as a whole. SEI INVESTMENTS / PROSPECTUS 21 PERFORMANCE INFORMATION The bar chart and the performance table below illustrate the risks and volatility of an investment in the Fund. Of course, the Fund's past performance does not necessarily indicate how the Fund will perform in the future. This bar chart shows the performance of the Fund's Class A Shares for one year. The performance information shown is based on a full calendar year. EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
2001 7.69%
BEST QUARTER: 4.33% (09/30/01) WORST QUARTER: -0.18% (12/31/01) This table compares the Fund's average annual total returns for Class A Shares for the periods ended December 31, 2001 to those of the Lehman Brothers Aggregate Bond Index.
SINCE CLASS A SHARES 1 YEAR INCEPTION* ------------------------------------------------------------ SEI VP Core Fixed Income Fund 7.69% 9.27% ------------------------------------------------------------ Lehman Brothers Aggregate Bond Index** 8.42% 10.87% ------------------------------------------------------------
* The Fund's inception date is April 5, 2000. The Index inception date is April 30, 2000. ** An index measures the market prices of a specific group of securities in a particular market or securities in a market sector. You cannot invest directly in an index. Unlike a mutual fund, an index does not have an investment adviser and does not pay any commissions or expenses. If an index had expenses, its performance would be lower. The Lehman Brothers Aggregate Bond Index is a widely-recognized, market-weighted (higher market value bonds have more influence than lower market value bonds) index of U.S. government obligations, corporate debt securities and AAA rated mortgage-backed securities. All securities are rated investment grade (BBB) or higher, with maturities of at least 1 year. 22 SEI INVESTMENTS / PROSPECTUS FUND FEES AND EXPENSES This table describes the fees and expenses that you may pay if you buy and hold Fund shares. ANNUAL FUND OPERATING EXPENSES
(EXPENSES DEDUCTED FROM FUND ASSETS) ----------------------------------------------------------- Investment Advisory Fees 0.28% ----------------------------------------------------------- Distribution (12b-1) Fees None ----------------------------------------------------------- Other Expenses 0.72% ----------------------------------------------------------- ----------------------------------------------------------- Total Annual Fund Operating Expenses 1.00%* ----------------------------------------------------------- -----------------------------------------------------------
* The Fund's total actual annual fund operating expenses for the most recent fiscal year were less than the amount shown above because the Adviser and Administrator are each waiving a portion of the fees in order to keep total operating expenses at a specified level. The Adviser and/or Administrator may discontinue all or part of their waivers at any time. With these fee waivers, the Fund's actual total operating expenses are as follows: SEI VP Core Fixed Income Fund -- Class A Shares 0.60% ---------------------------------------------------------
For more information about these fees, see "Investment Adviser and Sub-Advisers" and "Distribution of Fund Shares." The amount set forth above does not reflect the fees and expenses of the insurance contract that are charged by your insurance company. EXAMPLE This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and that you sell your shares at the end of the period. The Example also assumes that each year your investment has a 5% return, Fund operating expenses remain the same, and you reinvest all dividends and distributions. Although your actual costs and returns might be different, your approximate costs of investing $10,000 in the Fund would be:
1 YEAR 3 YEARS 5 YEARS 10 YEARS ------------------------------------------------------------------ SEI VP Core Fixed Income Fund -- Class A Shares $ 102 $ 318 $ 552 $ 1,225 ------------------------------------------------------------------
SEI INVESTMENTS / PROSPECTUS 23 SEI VP HIGH YIELD BOND FUND ------------------------------------------------------------------------------ FUND SUMMARY INVESTMENT GOAL: Total return SHARE PRICE VOLATILITY: High PRINCIPAL INVESTMENT Utilizing multiple specialist STRATEGY: sub-advisers that have high yield investment expertise, the Fund invests in high yield, high risk securities
-------------------------------------------------------------------------------- INVESTMENT STRATEGY Under normal circumstances, the SEI VP High Yield Bond Fund will invest at least 80% of its net assets in high yield fixed income securities. The Fund will invest primarily in fixed income securities rated below investment grade ("junk bonds"), including corporate bonds and debentures, convertible and preferred securities, and zero coupon obligations. The Fund uses a multi-manager approach, relying upon one or more Sub-Advisers to manage portions of the Fund's portfolio under the general supervision of SIMC. In managing the Fund's assets, the Sub-Advisers select securities that offer a high current yield as well as total return potential. The Fund's securities are diversified as to issuers and industries. The Fund's average weighted maturity may vary, and will generally not exceed ten years. There is no limit on the maturity or on the credit quality of any security. WHAT ARE THE RISKS OF INVESTING IN THE FUND? The prices of the Fund's fixed income securities respond to economic developments, particularly interest rate changes, as well as to perceptions about the creditworthiness of individual issuers, including governments and their agencies. Generally, the Fund's fixed income securities will decrease in value if interest rates rise and vice versa, and the volatility of lower-rated securities is even greater than that of higher-rated securities. Also, longer-term securities are generally more volatile, so the average maturity or duration of these securities affects risk. Junk bonds involve greater risks of default or downgrade and are more volatile than investment grade securities. Junk bonds involve a greater risk of price declines than investment grade securities due to actual or perceived changes in an issuer's creditworthiness. In addition, issuers of junk bonds may be more susceptible than other issuers to economic downturns. Junk bonds are subject to the risk that the issuer may not be able to pay interest or dividends and ultimately to repay principal upon maturity. Discontinuation of these payments could substantially adversely affect the market value of the security. The Fund is also subject to the risk that high yield securities may underperform other segments of the fixed income markets or the fixed income markets as a whole. 24 SEI INVESTMENTS / PROSPECTUS PERFORMANCE INFORMATION The bar chart and the performance table below illustrate the risks and volatility of an investment in the Fund. Of course, the Fund's past performance does not necessarily indicate how the Fund will perform in the future. This bar chart shows the performance of the Fund's Class A Shares for one year. The performance information shown is based on a full calendar year. EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
2001 4.00%
BEST QUARTER: 4.70% (03/31/01) WORST QUARTER: -3.27% (09/30/01) This table compares the Fund's average annual total returns for Class A Shares for the periods ended December 31, 2001 to those of the CS First Boston High Yield Index.
SINCE CLASS A SHARES 1 YEAR INCEPTION* ------------------------------------------------------------ SEI VP High Yield Bond Fund 4.00% 1.39% ------------------------------------------------------------ CS First Boston High Yield Index** 5.80% 1.04% ------------------------------------------------------------
* The Fund's inception date is April 5, 2000. The Index inception date is April 30, 2000. ** An index measures the market prices of a specific group of securities in a particular market or securities in a market sector. You cannot invest directly in an index. Unlike a mutual fund, an index does not have an investment adviser and does not pay any commissions or expenses. If an index had expenses, its performance would be lower. The CS First Boston High Yield Index is an unmanaged, trader-priced portfolio constructed to mirror the public high yield debt market. Revisions to the Index are effected weekly. The Index reflects the reinvestment of dividends. SEI INVESTMENTS / PROSPECTUS 25 FUND FEES AND EXPENSES This table describes the fees and expenses that you may pay if you buy and hold Fund shares. ANNUAL FUND OPERATING EXPENSES
(EXPENSES DEDUCTED FROM FUND ASSETS) ----------------------------------------------------------- Investment Advisory Fees 0.49% ----------------------------------------------------------- Distribution (12b-1) Fees None ----------------------------------------------------------- Other Expenses 0.82% ----------------------------------------------------------- ----------------------------------------------------------- Total Annual Fund Operating Expenses 1.31%* ----------------------------------------------------------- -----------------------------------------------------------
* The Fund's total actual annual fund operating expenses for the most recent fiscal year were less than the amount shown above because the Adviser and Administrator are each waiving a portion of the fees in order to keep total operating expenses at a specified level. The Adviser and/or Administrator may discontinue all or part of their waivers at any time. With these fee waivers, the Fund's actual total operating expenses are as follows: SEI VP High Yield Bond Fund -- Class A Shares 0.85% ---------------------------------------------------------
For more information about these fees, see "Investment Adviser and Sub-Advisers" and "Distribution of Fund Shares." The amount set forth above does not reflect the fees and expenses of the insurance contract that are charged by your insurance company. EXAMPLE This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and that you sell your shares at the end of the period. The Example also assumes that each year your investment has a 5% return, Fund operating expenses remain the same, and you reinvest all dividends and distributions. Although your actual costs and returns might be different, your approximate costs of investing $10,000 in the Fund would be:
1 YEAR 3 YEARS 5 YEARS 10 YEARS ------------------------------------------------------------------ SEI VP High Yield Bond Fund -- Class A Shares $ 133 $ 415 $ 718 $ 1,579 ------------------------------------------------------------------
26 SEI INVESTMENTS / PROSPECTUS SEI VP INTERNATIONAL FIXED INCOME FUND ------------------------------------------------------------------------------ FUND SUMMARY INVESTMENT GOAL: Capital appreciation and current income SHARE PRICE VOLATILITY: High PRINCIPAL INVESTMENT Utilizing a specialist sub-adviser, the STRATEGY: Fund invests in investment grade fixed income securities of foreign government and corporate issuers
-------------------------------------------------------------------------------- INVESTMENT STRATEGY Under normal circumstances, the SEI VP International Fixed Income Fund will invest at least 80% of its net assets in fixed income securities. The Fund will invest primarily in foreign government, corporate, and mortgage-backed securities. In selecting investments for the Fund, the Sub-Adviser chooses investment grade securities issued by corporations and governments located in various developed foreign countries, looking for opportunities for capital appreciation and gain, as well as current income. The Fund's portfolio is not hedged against currency fluctuations relative to the U.S. dollar. There are no restrictions on the Fund's average portfolio maturity or on the maturity of any specific security. WHAT ARE THE RISKS OF INVESTING IN THE FUND? The prices of the Fund's fixed income securities respond to economic developments, particularly interest rate changes, as well as to perceptions about the creditworthiness of individual issuers, including governments and their agencies. Generally, the Fund's fixed income securities will decrease in value if interest rates rise and vice versa, and the volatility of lower-rated securities is even greater than that of higher-rated securities. Also, longer-term securities are generally more volatile, so the average maturity or duration of these securities affects risk. In the case of foreign securities, price fluctuations will reflect international economic and political events, as well as changes in currency valuations relative to the U.S. dollar. Investing in issuers located in foreign countries poses distinct risks since political and economic events unique to a country or region will affect those markets and their issuers. These events will not necessarily affect the U.S. economy or similar issuers located in the United States. In addition, investments in foreign countries are generally denominated in a foreign currency. As a result, changes in the value of those currencies compared to the U.S. dollar may affect (positively or negatively) the value of a Fund's investments. These currency movements may happen separately from and in response to events that do not otherwise affect the value of the security in the issuer's home country. These various risks will be even greater for investments in emerging market countries since political turmoil and rapid changes in economic conditions are more likely to occur in these countries. The Fund is non-diversified, which means that it may invest in the securities of relatively few issuers. As a result, the Fund may be more susceptible to a single adverse economic or political occurrence affecting one or more of these issuers, and may experience increased volatility due to its investments in those securities. The Fund is also subject to the risk that developed international fixed income securities may underperform other segments of the fixed income markets or the fixed income markets as a whole. SEI INVESTMENTS / PROSPECTUS 27 PERFORMANCE INFORMATION The bar chart and the performance table below illustrate the risks and volatility of an investment in the Fund. Of course, the Fund's past performance does not necessarily indicate how the Fund will perform in the future. This bar chart shows the performance of the Fund's Class A Shares for one year. The performance information shown is based on a full calendar year. EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
2001 -5.32%
BEST QUARTER: 6.70% (09/30/01) WORST QUARTER: -5.36% (03/31/01) This table compares the Fund's average annual total returns for Class A Shares for the periods ended December 31, 2001 to those of the Salomon WGBI Non-U.S. Index.
SINCE CLASS A SHARES 1 YEAR INCEPTION* ------------------------------------------------------------ SEI VP International Fixed Income Fund -5.32% -3.71% ------------------------------------------------------------ Salomon WGBI Non-U.S. Index** -3.55% -0.39% ------------------------------------------------------------
* The Fund's inception date is April 5, 2000. The Index inception date is April 30, 2000. ** An index measures the market prices of a specific group of securities in a particular market or securities in a market sector. You cannot invest directly in an index. Unlike a mutual fund, an index does not have an investment adviser and does not pay any commissions or expenses. If an index had expenses, its performance would be lower. The Salomon WGBI Non-U.S. Index is a widely recognized index of government bonds issued by approximately 12 foreign countries. The index targets institutionally traded bonds. 28 SEI INVESTMENTS / PROSPECTUS FUND FEES AND EXPENSES This table describes the fees and expenses that you may pay if you buy and hold Fund shares. ANNUAL FUND OPERATING EXPENSES
(EXPENSES DEDUCTED FROM FUND ASSETS) ----------------------------------------------------------- Investment Advisory Fees 0.30% ----------------------------------------------------------- Distribution (12b-1) Fees None ----------------------------------------------------------- Other Expenses 1.21% ----------------------------------------------------------- ----------------------------------------------------------- Total Annual Fund Operating Expenses 1.51%* ----------------------------------------------------------- -----------------------------------------------------------
* The Fund's total actual annual fund operating expenses for the most recent fiscal year were less than the amount shown above because the Administrator is waiving a portion of the fees in order to keep total operating expenses at a specified level. The Administrator may discontinue all or part of its waiver at any time. With this fee waiver, the Fund's actual total operating expenses are as follows: SEI VP International Fixed Income Fund -- Class A Shares 1.00% ---------------------------------------------------------
For more information about these fees, see "Investment Adviser and Sub-Advisers" and "Distribution of Fund Shares." The amount set forth above does not reflect the fees and expenses of the insurance contract that are charged by your insurance company. EXAMPLE This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and that you sell your shares at the end of the period. The Example also assumes that each year your investment has a 5% return, Fund operating expenses remain the same, and you reinvest all dividends and distributions. Although your actual costs and returns might be different, your approximate costs of investing $10,000 in the Fund would be:
1 YEAR 3 YEARS 5 YEARS 10 YEARS ------------------------------------------------------------------ SEI VP International Fixed Income Fund -- Class A Shares $ 154 $ 477 $ 824 $ 1,802 ------------------------------------------------------------------
SEI INVESTMENTS / PROSPECTUS 29 SEI VP EMERGING MARKETS DEBT FUND ------------------------------------------------------------------------------ FUND SUMMARY INVESTMENT GOAL: Total return SHARE PRICE VOLATILITY: High to very high PRINCIPAL INVESTMENT Utilizing a specialist sub-adviser, the STRATEGY: Fund invests in U.S. dollar denominated debt securities of emerging market issuers
-------------------------------------------------------------------------------- INVESTMENT STRATEGY Under normal circumstances, the SEI VP Emerging Markets Debt Fund will invest at least 80% of its net assets in fixed income securities of emerging markets issuers. The Fund will invest primarily in U.S. dollar denominated debt securities of government, government-related and corporate issuers in emerging markets countries, as well as entities organized to restructure the outstanding debt of such issuers. The Sub-Adviser will spread the Fund's holdings across a number of countries and industries to limit its exposure to a single emerging market economy. There are no restrictions on the Fund's average portfolio maturity, or on the maturity of any specific security. There is no minimum credit rating standard for the Fund's securities, and the Fund's securities will generally be in the lower or lowest rating categories (including those below investment grade, commonly referred to as "junk bonds"). WHAT ARE THE RISKS OF INVESTING IN THE FUND? The prices of the Fund's fixed income securities respond to economic developments, particularly interest rate changes, as well as to perceptions about the creditworthiness of individual issuers, including governments and their agencies. Generally, the Fund's fixed income securities will decrease in value if interest rates rise and vice versa, and the volatility of lower-rated securities is even greater than that of higher-rated securities. Also, longer-term securities are generally more volatile, so the average maturity or duration of these securities affects risk. Investing in issuers located in foreign countries poses distinct risks since political and economic events unique to a country or region will affect those markets and their issuers. These events will not necessarily affect the U.S. economy or similar issuers located in the United States. In addition, investments in foreign countries are generally denominated in a foreign currency. As a result, changes in the value of those currencies compared to the U.S. dollar may affect (positively or negatively) the value of a Fund's investments. These currency movements may happen separately from and in response to events that do not otherwise affect the value of the security in the issuer's home country. These various risks will be even greater for investments in emerging market countries. "Junk" bonds involve greater risks of default or downgrade and are more volatile than investment grade securities. Junk bonds involve greater risk of price declines than investment grade securities due to actual or perceived changes in an issuer's creditworthiness. In addition, issuers of junk bonds may be more susceptible than other issuers to economic downturns. Junk bonds are subject to the risk that the issuer may not be able to pay interest or dividends and ultimately to repay principal upon maturity. Discontinuation of these payments could substantially adversely affect the market value of the security. The volatility of junk bonds and certain foreign sovereign debt securities is even greater since the prospects for repayment of principal and interest of many of these securities is speculative. Some may even be in default. As an incentive to invest in these risky securities, they tend to offer higher returns. Emerging market countries are countries that the World Bank or the United Nations considers to be emerging or developing. Emerging markets may be more likely to experience political turmoil or rapid changes in market or economic conditions 30 SEI INVESTMENTS / PROSPECTUS than more developed countries. Emerging market countries often have less uniformity in accounting and reporting requirements and less reliable securities valuations. It is sometimes difficult to obtain and enforce court judgments in such countries and there is often a greater potential for nationalization and/or expropriation of assets by the government of an emerging market country. In addition, the financial stability of issuers (including governments) in emerging markets countries may be more precarious than in other countries. As a result, there will tend to be an increased risk of price volatility associated with the Fund's investments in emerging market countries, which may be magnified by currency fluctuations relative to the U.S. dollar. The foreign sovereign debt securities and "Brady Bonds" the Fund purchases involve specific risks, including the risk that: (i) the governmental entity that controls the repayment of sovereign debt may not be willing or able to repay the principal and/or interest when it becomes due, due to factors such as debt service burden, political constraints, cash flow problems and other national economic factors; (ii) governments may default on their sovereign debt, which may require holders of such sovereign debt to participate in debt rescheduling or additional lending to defaulting governments; and (iii) there may be no bankruptcy proceeding by which defaulted sovereign debt may be collected in whole or in part. The Fund is non-diversified, which means that it may invest in the securities of relatively few issuers. As a result, the Fund may be more susceptible to a single adverse economic or political occurrence affecting one or more of these issuers, and may experience increased volatility due to its investments in those securities. The Fund is also subject to the risk that emerging markets debt securities may underperform other segments of the fixed income markets or the fixed income markets as a whole. SEI INVESTMENTS / PROSPECTUS 31 PERFORMANCE INFORMATION The bar chart and the performance table below illustrate the risks and volatility of an investment in the Fund. Of course, the Fund's past performance does not necessarily indicate how the Fund will perform in the future. This bar chart shows the performance of the Fund's Class A Shares for one year. The performance information shown is based on a full calendar year. EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
2001 12.56%
BEST QUARTER: 8.44% (12/31/01) WORST QUARTER: -4.71% (09/30/01) This table compares the Fund's average annual total returns for Class A Shares for the periods ended December 31, 2001 to those of the J.P. Morgan EMBI Plus Index.
SINCE CLASS A SHARES 1 YEAR INCEPTION* ------------------------------------------------------------ SEI VP Emerging Markets Debt Fund 12.56% 11.04% ------------------------------------------------------------ J.P. Morgan EMBI Plus Index** -0.79% 5.14% ------------------------------------------------------------
* The Fund's inception date is April 5, 2000. The Index inception date is April 30, 2000. ** An index measures the market prices of a specific group of securities in a particular market or securities in a market sector. You cannot invest directly in an index. Unlike a mutual fund, an index does not have an investment adviser and does not pay any commissions or expenses. If an index had expenses, its performance would be lower. The J.P. Morgan EMBI Plus Index is a widely-recognized, market value-weighted (higher market value securities have more influence than lower market value securities) index of bonds issued by emerging markets countries. The index currently includes Eurobonds and Brady Bonds issued by Argentina, Brazil, Bulgaria, Mexico, Nigeria, the Philippines, Poland and Venezuela. 32 SEI INVESTMENTS / PROSPECTUS FUND FEES AND EXPENSES This table describes the fees and expenses that you may pay if you buy and hold Fund shares. ANNUAL FUND OPERATING EXPENSES
(EXPENSES DEDUCTED FROM FUND ASSETS) ----------------------------------------------------------- Investment Advisory Fees 0.85% ----------------------------------------------------------- Distribution (12b-1) Fees None ----------------------------------------------------------- Other Expenses 1.22% ----------------------------------------------------------- ----------------------------------------------------------- Total Annual Fund Operating Expenses 2.07%* ----------------------------------------------------------- -----------------------------------------------------------
* The Fund's total actual annual fund operating expenses for the most recent fiscal year were less than the amount shown above because the Adviser and Administrator are each waiving a portion of the fees in order to keep total operating expenses at a specified level. The Adviser and/or Administrator may discontinue all or part of their waivers at any time. With these fee waivers, the Fund's actual total operating expenses are as follows: SEI VP Emerging Markets Debt Fund -- Class A Shares 1.35% ---------------------------------------------------------
For more information about these fees, see "Investment Adviser and Sub-Advisers" and "Distribution of Fund Shares." The amount set forth above does not reflect the fees and expenses of the insurance contract that are charged by your insurance company. EXAMPLE This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and that you sell your shares at the end of the period. The Example also assumes that each year your investment has a 5% return, Fund operating expenses remain the same, and you reinvest all dividends and distributions. Although your actual costs and returns might be different, your approximate costs of investing $10,000 in the Fund would be:
1 YEAR 3 YEARS 5 YEARS 10 YEARS ------------------------------------------------------------------ SEI VP Emerging Markets Debt Fund -- Class A Shares $ 210 $ 649 $ 1,114 $ 2,400 ------------------------------------------------------------------
SEI INVESTMENTS / PROSPECTUS 33 SEI VP PRIME OBLIGATION FUND ------------------------------------------------------------------------------ FUND SUMMARY INVESTMENT GOAL: Preserving principal and maintaining liquidity while providing current income SHARE PRICE VOLATILITY: Very low PRINCIPAL INVESTMENT The Fund is professionally managed to STRATEGY: provide liquidity, diversification and a competitive yield by investing in high quality, short-term money market instruments
-------------------------------------------------------------------------------- INVESTMENT STRATEGY The SEI VP Prime Obligation Fund is comprised of short-term debt obligations of U.S. issuers that are rated in one of the two highest rating categories by nationally recognized statistical rating organizations or securities that the Sub-Adviser determines are of comparable quality. The Fund invests in: (i) commercial paper (including asset-backed commercial paper) rated in the highest short-term rating category by at least one nationally recognized statistical rating organization; (ii) certificates of deposit, time deposits, bankers' acceptances, bank notes and other obligations of U.S. commercial banks or savings and loan institutions that meet certain asset requirements; (iii) short-term corporate obligations (including asset-backed securities) rated in one of the two highest short-term rating categories; (iv) short-term obligations issued by state and local governments; and (v) U.S. Treasury obligations and obligations issued or guaranteed as to principal and interest by agencies or instrumentalities of the U.S. government. The Fund may also enter into fully-collateralized repurchase agreements. Using a top-down strategy and bottom-up security selection, the Sub-Adviser seeks securities with an acceptable maturity (consistent with SEC requirements for money market funds) that are marketable and liquid, offer competitive yields, and are issued by issuers that are on a sound financial footing. The Sub-Adviser also considers factors such as the anticipated level of interest rates and the maturity of individual securities relative to the maturity of the Fund as a whole. The Fund follows strict guidelines about the credit quality, maturity and diversification of its investments. With respect to credit quality and maturity, these guidelines are more restrictive than Investment Company Act rules applicable to money market funds. WHAT ARE THE RISKS OF INVESTING IN THE FUND? An investment in the Fund is subject to income risk, which is the possibility that the Fund's yield will decline due to falling interest rates. Although the Fund's U.S. government securities are considered to be among the safest investments, they are not guaranteed against price movements due to changing interest rates. Obligations issued by some U.S. government agencies are backed by the U.S. Treasury, while others are backed solely by the ability of the agency to borrow from the U.S. Treasury or by the agency's own resources. AN INVESTMENT IN THE FUND IS NOT A BANK DEPOSIT. ALTHOUGH THE FUND SEEKS TO MAINTAIN A CONSTANT PRICE PER SHARE OF $1.00, YOU MAY LOSE MONEY BY INVESTING IN THE FUND. 34 SEI INVESTMENTS / PROSPECTUS PERFORMANCE INFORMATION The bar chart and the performance table below illustrate the risks and volatility of an investment in the Fund. Of course, the Fund's past performance does not necessarily indicate how the Fund will perform in the future. This bar chart shows the performance of the Fund's Class A Shares for one year. The performance information shown is based on a full calendar year. EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
2001 3.80%
BEST QUARTER: 1.36% (03/31/01) WORST QUARTER: 0.48% (12/31/01) This table shows the Fund's average annual total returns for Class A Shares for the periods ended December 31, 2001.
SINCE CLASS A SHARES 1 YEAR INCEPTION* ------------------------------------------------------------ SEI VP Prime Obligation Fund 3.80% 4.82% ------------------------------------------------------------
* The Fund's inception date is April 5, 2000. Please call 1-800-DIAL-SEI to obtain the Fund's current yield. SEI INVESTMENTS / PROSPECTUS 35 FUND FEES AND EXPENSES This table describes the fees and expenses that you may pay if you buy and hold Fund shares. ANNUAL FUND OPERATING EXPENSES
(EXPENSES DEDUCTED FROM FUND ASSETS) ----------------------------------------------------------- Investment Advisory Fees 0.08% ----------------------------------------------------------- Distribution (12b-1) Fees None ----------------------------------------------------------- Other Expenses 0.85% ----------------------------------------------------------- ----------------------------------------------------------- Total Annual Fund Operating Expenses 0.93%* ----------------------------------------------------------- -----------------------------------------------------------
* The Fund's total actual annual fund operating expenses for the most recent fiscal year were less than the amount shown above because the Administrator is waiving a portion of the fees in order to keep total operating expenses at a specified level. The Administrator may discontinue all or part of its waivers at any time. With these fee waivers, the Fund's actual total operating expenses are as follows: SEI VP Prime Obligation Fund -- Class A Shares 0.44% ---------------------------------------------------------
For more information about these fees, see "Investment Adviser and Sub-Advisers" and "Distribution of Fund Shares." The amount set forth above does not reflect the fees and expenses of the insurance contract that are charged by your insurance company. EXAMPLE This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and that you sell your shares at the end of the period. The Example also assumes that each year your investment has a 5% return, Fund operating expenses remain the same, and you reinvest all dividends and distributions. Although your actual costs and returns might be different, your approximate costs of investing $10,000 in the Fund would be:
1 YEAR 3 YEARS 5 YEARS 10 YEARS ------------------------------------------------------------------ SEI VP Prime Obligation Fund -- Class A Shares $ 95 $ 296 $ 515 $ 1,143 ------------------------------------------------------------------
36 SEI INVESTMENTS / PROSPECTUS MORE INFORMATION ABOUT FUND INVESTMENTS This prospectus describes the Funds' primary investment strategies. However, each Fund also may invest in other securities, use other strategies and engage in other investment practices. These investments and strategies, as well as those described in this prospectus, are described in detail in the Funds'Statement of Additional Information (SAI). The investments and strategies described in this prospectus are those that the Sub-Advisers use under normal conditions. During unusual economic or market conditions or for temporary defensive or liquidity purposes, each Fund (except the SEI VP Prime Obligation Fund) may invest up to 100% of its assets in cash, money market instruments, repurchase agreements and other short-term obligations that would not ordinarily be consistent with the Funds' objectives. A Fund will do so only if SIMC or the Sub-Advisers believe that the risk of loss outweighs the opportunity for capital gains or higher income. During unusual economic or market conditions, or for temporary defensive or liquidity purposes, the SEI VP Prime Obligation Fund may invest up to 100% of its assets in cash or cash equivalents that would not be consistent with the Fund's objectives. Of course, there is no guarantee that any Fund will achieve its investment goal. INVESTMENT ADVISER AND SUB-ADVISERS SEI INVESTMENTS MANAGEMENT CORPORATION (SIMC) ACTS AS THE MANAGER OF MANAGERS OF THE FUNDS, AND IS RESPONSIBLE FOR THE INVESTMENT PERFORMANCE OF THE FUNDS SINCE IT ALLOCATES EACH FUND'S ASSETS TO ONE OR MORE SUB-ADVISERS AND RECOMMENDS HIRING OR CHANGING SUB-ADVISERS TO THE BOARD OF TRUSTEES. Each Sub-Adviser makes investment decisions for the assets it manages and continuously reviews, supervises and administers its investment program. SIMC oversees the Sub-Advisers to ensure compliance with the Funds' investment policies and guidelines, and monitors each Sub-Adviser's adherence to its investment style. The Board of Trustees supervises SIMC and the Sub-Advisers; establishes policies that they must follow in their management activities; and oversees the hiring and termination of Sub-Advisers recommended by SIMC. SIMC pays the Sub-Advisers out of the investment advisory fees it receives. SIMC, an SEC-registered adviser, located at One Freedom Valley Drive, Oaks, PA 19456, serves as the Adviser to the Funds. As of December 31, 2001, SIMC had approximately $50.2 billion in assets under management. For the fiscal year ended December 31, 2001, SIMC received investment advisory fees, after fee waivers, as a percentage of each Fund's average net assets, at the following annual rates: SEI VP Large Cap Value Fund 0.23% --------------------------------------------------------- SEI VP Large Cap Growth Fund 0.32% --------------------------------------------------------- SEI VP Small Cap Value Fund 0.61% --------------------------------------------------------- SEI VP Small Cap Growth Fund 0.62% --------------------------------------------------------- SEI VP International Equity Fund 0.47% --------------------------------------------------------- SEI VP Emerging Markets Equity Fund 0.73% --------------------------------------------------------- SEI VP Core Fixed Income Fund 0.20% --------------------------------------------------------- SEI VP High Yield Bond Fund 0.46% --------------------------------------------------------- SEI VP International Fixed Income Fund 0.30% --------------------------------------------------------- SEI VP Emerging Markets Debt Fund 0.53% --------------------------------------------------------- SEI VP Prime Obligation Fund 0.08% ---------------------------------------------------------
SEI INVESTMENTS / PROSPECTUS 37 SUB-ADVISERS AND PORTFOLIO MANAGERS Each of the Sub-Advisers listed below has been selected by SIMC and approved by the Board of Trustees to serve as a Sub-Adviser for the specified Fund. At any one point in time, however, a particular Sub-Adviser listed below may not have assets allocated to it. SEI VP LARGE CAP VALUE FUND: DEUTSCHE ASSET MANAGEMENT INC.: Deutsche Asset Management Inc. (DAMI), located at 280 Park Avenue, New York, New York 10017, serves as a Sub-Adviser to the SEI VP Large Cap Value Fund. James A. Creighton, Managing Director and Head of Global Index, serves as a portfolio manager of the portion of the SEI VP Large Cap Value Fund's assets allocated to DAMI. Prior to joining DAMI in 1999, Mr. Creighton was a Managing Director and Chief Investment Officer of Global Index Investments at Barclays Global Investors and prior to that division president at Barclays Global Investors Canada Limited. IRIDIAN ASSET MANAGEMENT LLC: Iridian Asset Management LLC (Iridian), located at 276 Post Road West, Westport, Connecticut 06880-4704, has been selected as a Sub-Adviser to the SEI VP Large Cap Value Fund. As of the date of this prospectus, no assets were allocated to Iridian. However, SIMC may allocate assets to Iridian at any time. David Cohen, Principal of Iridian, would serve as portfolio manager of the portion of the SEI VP Large Cap Value Fund's assets allocated to Iridian. Mr. Cohen is one of Iridian's founding partners, and has 21 years of investment experience. Additionally, since November 1995, Mr. Cohen has been a Portfolio Manager at Arnhold and S. Bleichroeder Advisers, Inc. with responsibility for First Eagle Fund of America, a separate series of First Eagle Trust, a registered investment company. LSV ASSET MANAGEMENT: LSV Asset Management (LSV), located at 200 West Madison Street, Chicago, Illinois 60606, serves as a Sub-Adviser to the SEI VP Large Cap Value Fund. Josef Lakonishok, Robert Vishny and Menno Vermuelen of LSV serve as portfolio managers of the portion of the SEI VP Large Cap Value Fund's assets allocated to LSV. They are all partners of LSV. An affiliate of SIMC owns an interest in LSV. SIMC pays LSV a fee, which is calculated and paid monthly, based on an annual rate of 0.20% of the average monthly market value of the assets of the Fund managed by LSV. SANFORD C. BERNSTEIN & CO., LLC.: Sanford C. Bernstein & Co., LLC (Bernstein), located at 1345 Avenue of the Americas, New York, New York 10105, has been selected as a Sub-Adviser to the SEI VP Large Cap Value Fund. As of the date of this prospectus, no assets were allocated to Bernstein. However, SIMC may allocate assets to Bernstein at any time. Lewis A. Sanders and Marilyn Goldstein Fedak would serve as portfolio managers of the portion of the SEI VP Large Cap Value Fund's assets allocated to Bernstein. Mr. Sanders is a Director of Bernstein since September 2000 and is Vice Chairman, Chief Investment Officer and a Director of Alliance Capital Management Corporation since October 2000. Mr. Sanders previously served as Chairman of the Board of Directors and Chief Executive Officer of Sanford C. Bernstein & Co., Inc. since 1993. Ms. Fedak, Executive Vice President and Chief Investment Officer-U.S. Value Equities of Alliance Capital Management Corporation since October 2000 and prior to that Chief Investment Officer and Chairman of the U.S. Equity Investment Policy Group at Sanford C. Bernstein Co., Inc. since 1993. SEI VP LARGE CAP GROWTH FUND: ALLIANCE CAPITAL MANAGEMENT L.P.: Alliance Capital Management L.P. (Alliance), located at 1345 Avenue of the Americas, New York, New York 10105, serves as a Sub-Adviser to the SEI VP Large Cap Growth Fund. A committee of investment professionals at Alliance manages the portion of the SEI VP Large Cap Growth Fund's assets allocated to Alliance. DUNCAN-HURST CAPITAL MANAGEMENT INC.: Duncan-Hurst Capital Management Inc. (Duncan-Hurst), located at 4365 Executive Drive, Suite 1520, San Diego, California 92121, has been selected as a Sub-Adviser to the SEI VP Large Cap Growth Fund. As of the date of this prospectus, no assets were allocated to Duncan-Hurst. However, SIMC may allocate assets to Duncan- 38 SEI INVESTMENTS / PROSPECTUS Hurst at any time. David Magee would serve as portfolio manager of the portion of the SEI VP Large Cap Growth Fund's assets allocated to Duncan-Hurst. Mr. Magee joined Duncan-Hurst in 1992 and is Vice President and Portfolio Manager. He has over 18 years of investment experience. MONTAG & CALDWELL INC.: Montag & Caldwell Inc. (Montag), located at 3455 Peachtree Road NE, Suite 1200, Atlanta, Georgia 30326-3248, has been selected as a Sub-Adviser to the SEI VP Large Cap Growth Fund. As of the date of this prospectus, no assets were allocated to Montag. However, SIMC may allocate assets to Montag at any time. William A. Vogel, Executive Vice President of Montag, would serve as portfolio manager of the portion of the SEI VP Large Cap Growth Fund's assets allocated to Montag. Mr. Vogel has been a portfolio manager at Montag for 14 years, and has 26 years of investment experience. PEREGRINE CAPITAL MANAGEMENT INC.: Peregrine Capital Management Inc. (Peregrine), located at 800 LaSalle Avenue, Minneapolis, Minnesota 55402-2018, serves as a Sub-Adviser to the SEI VP Large Cap Growth Fund. John Dale, Senior Vice President and Portfolio Manager, and Gary Nussbaum, Senior Vice President and Portfolio Manager, serve as portfolio managers of the portion of the SEI VP Large Cap Growth Fund's assets allocated to Peregrine. Mr. Dale joined Peregrine in 1987, and has 33 years of investment management experience. Mr. Nussbaum joined Peregrine in 1990, and has 13 years of investment management experience. TRANSAMERICA INVESTMENT MANAGEMENT, LLC: Transamerica Investment Management, LLC (TIM), located at 1150 S. Olive St., 27th Floor, Los Angeles, California 90015, has been selected as a Sub-Adviser to the SEI VP Large Cap Growth Fund. As of the date of this prospectus, no assets were allocated to TIM. However, SIMC may allocate assets to TIM at any time. Jeffrey Van Harte, CFA, Senior Vice President, Portfolio Manager and Head of Equities, and Gary Rolle, CFA, President and Chief Investment Officer, of TIM would serve as portfolio managers of the portion of the SEI VP Large Cap Growth Fund's assets allocated to TIM. Mr. Van Harte has been with TIM and its predecessor firm since 1980 and has over 15 years of investment management experience. Mr. Rolle has been with TIM and its predecessor firm since 1967 and has over 30 years of investment management experience. SEI VP SMALL CAP VALUE FUND: ARTISAN PARTNERS LIMITED PARTNERSHIP: Artisan Partners Limited Partnership (Artisan), located at 1000 N. Water Street, Suite 1770, Milwaukee, Wisconsin 53202, has been selected as a Sub-Adviser to the SEI VP Small Cap Value Fund. As of the date of this prospectus, no assets were allocated to Artisan. However, SIMC may allocate assets to Artisan at any time. Scott Satterwhite and James C. Kieffer, both Managing Directors of Artisan, would serve as portfolio managers of the portion of the SEI VP Small Cap Value Fund's assets allocated to Artisan. Prior to joining Artisan in 1997, Mr. Satterwhite was a portfolio manager at Wachovia Bank, N.A., and Mr. Kieffer was a research analyst at the investment firm McColl Partners. CHARTWELL INVESTMENT PARTNERS: Chartwell Investment Partners (Chartwell), located at 1235 Westlakes Drive, Suite 330, Berwyn, Pennsylvania 19312, has been selected as a Sub-Adviser to the SEI VP Small Cap Value Fund. As of the date of this prospectus, no assets were allocated to Chartwell. However, SIMC may allocate assets to Chartwell at any time. David C. Dalrymple, Managing Partner and Senior Portfolio Manager, and Babak Zenouzi, Partner and Senior Portfolio Manager, would serve as portfolio managers of the portion of the SEI VP Small Cap Value Fund's assets allocated to Chartwell. Mr. Dalrymple has been with Chartwell since 1997. Prior to joining Chartwell, Mr. Dalrymple was a portfolio manager with Delaware Investment Advisers from 1991-1997. Mr. Zenouzi joined the firm in November 1999 after seven years with Delaware Investment Advisers, where he served as a Portfolio Manager. Mr. Dalrymple and Mr. Zenouzi both have 16 years of investment experience. DAVID J. GREENE AND COMPANY, LLC: David J. Greene and Company, LLC (David J. Greene), located at 599 Lexington Avenue, 12th Floor, New York, New York 10022, has been selected as a Sub-Adviser to the SEI VP Small Cap Value Fund. SEI INVESTMENTS / PROSPECTUS 39 As of the date of this prospectus, no assets were allocated to David J. Greene. However, SIMC may allocate assets to David J. Greene at any time. Michael C. Greene, Chief Executive Officer, and Benjamin H. Nahum, Vice President and Research Analyst, of David J. Greene would serve as portfolio managers of the portion of the SEI VP Small Cap Value Fund's assets allocated to David J. Greene. Messrs. Greene and Nahum have been Principals of the firm for the past five years. LSV ASSET MANAGEMENT: LSV Asset Management (LSV), located at 200 West Madison Street, Chicago, Illinois 60606, serves as a Sub-Adviser to the SEI VP Small Cap Value Fund. Josef Lakonishok, Robert Vishny and Menno Vermeulen of LSV serve as portfolio managers of the portion of the SEI VP Small Cap Value Fund's assets allocated to LSV. They are all partners of LSV. An affiliate of SIMC owns an interest in LSV. SIMC pays LSV a fee, which is calculated and paid monthly, based on an annual rate of 0.50% of the average monthly market value of the assets of the Fund managed by LSV. SECURITY CAPITAL RESEARCH AND MANAGEMENT INCORPORATED: Security Capital Research and Management Incorporated (SC-R&M), located at 11 South LaSalle Street, 2nd Floor, Chicago, Illinois 60603, has been selected as a Sub-Adviser to the SEI VP Small Cap Value Fund. As of the date of this prospectus, no assets were allocated to SC-R&M. However, SIMC may allocate assets to SC-R&M at any time. Anthony R. Manno Jr., Kenneth D. Statz, and Kevin W. Bedell comprise the Portfolio Management Committee of SC-R&M. The Portfolio Management Committee would be responsible for determining the portfolio composition for the Fund's assets allocated to SC-R&M. The members of the Portfolio Management Committee have an average of 19 years of investment experience. STERLING CAPITAL MANAGEMENT: Sterling Capital Management (Sterling), located at One Wachovia Center, 301 College Street, Suite 3200, Charlotte, North Carolina 28202, serves as a Sub-Adviser to the SEI VP Small Cap Value Fund. Eduardo A. Brea, CFA, and Brian R. Walton, CFA, serve as portfolio managers of the portion of the SEI VP Small Cap Value Fund's assets allocated to Sterling. Mr. Brea and Mr. Walton both joined Sterling in 1995, and each is a Managing Director, Equity Portfolio Manager and Analyst. Mr. Brea and Mr. Walton each have over 11years of investment experience. SEI VP SMALL CAP GROWTH FUND: MAZAMA CAPITAL MANAGEMENT, INC.: Mazama Capital Management, Inc. (Mazama), located at One Southwest Columbia Street, Suite 1860, Portland, Oregon 97258, has been selected as a Sub-Adviser to the SEI VP Small Cap Growth Fund. As of the date of this prospectus, no assets were allocated to Mazama. However, SIMC may allocate assets to Mazama at any time. Ron Sauer and Stephen Brink, CFA, of Mazama would serve as portfolio managers of the portion of the SEI VP Small Cap Growth Fund's assets allocated to Mazama. Prior to founding Mazama, Mr. Sauer served as President and Director of Research at Black & Company and Mr. Brink served as Chief Investment Officer for the Pacific Northwest office of U.S. Trust. Mr. Sauer and Mr. Brink have over 20 and 23 years of investment experience, respectively. MCKINLEY CAPITAL MANAGEMENT, INC.: McKinley Capital Management, Inc. (McKinley), located at 3301 C Street, Suite 500, Anchorage, Alaska 99503, has been selected as a Sub-Adviser to the SEI VP Small Cap Growth Fund. As of the date of this prospectus, no assets were allocated to McKinley. However, SIMC may allocate assets to McKinley at any time. Robert B. Gillam, Frederic H. Parke and Sheldon Lien would serve as portfolio managers of the portion of the SEI VP Small Cap Growth Fund's assets allocated to McKinley. Mr. Gillam has been the Chief Investment Officer at McKinley since the firm's inception in 1990, and has over 21 years investment experience. Prior to joining McKinley in 1997, Mr. Parke was a Trader and Portfolio Manager at TransGlobal Investments from 1995 to 1997. Mr. Parke has 20 years of investment experience. Mr. Lien has been with McKinley since 1995. NICHOLAS-APPLEGATE CAPITAL MANAGEMENT: Nicholas-Applegate Capital Management (Nicholas-Applegate), located at 600 West Broadway, Suite 2900, San Diego, California 92101, has been selected as a Sub-Adviser to the SEI VP Small Cap Growth Fund. As of the date of this prospectus, no assets were allocated to Nicholas-Applegate. However, SIMC may allocate assets to Nicholas-Applegate at any time. Catherine Nicholas serves as Chief Investment Officer of Nicholas- 40 SEI INVESTMENTS / PROSPECTUS Applegate overseeing the firm's global equity management and trading strategies. Stacey R. Nutt, Ph.D. is the lead portfolio manager of the portfolio management team responsible for the day-to-day management of the portion of the SEI VP Small Cap Growth Fund's assets allocated to Nicholas-Applegate. Mr. Nutt has been a fund manager and investment team leader since 1999. Prior to joining Nicholas-Applegate, he had six years of investment experience with Vestek Systems, Inc. and Virginia Tech and Georgia Institute of Technology. RS INVESTMENT MANAGEMENT, L.P.: RS Investment Management, L.P. (RSIM), located at 388 Market Street, San Francisco, California 94111, has been selected as a Sub-Adviser to the SEI VP Small Cap Growth Fund. As of the date of this prospectus, no assets were allocated to RSIM. However, SIMC may allocate assets to RSIM at any time. Jim Callinan of RSIM would serve as portfolio manager of the portion of the SEI VP Small Cap Growth Fund's assets allocated to RSIM. Mr. Callinan is a managing director of RSIM. He joined RSIM in June 1996 after nine years at Putnam Investments ("Putnam") in Boston, where he served as a portfolio manager of the Putnam OTC Emerging Growth Fund. Mr. Callinan also served as a specialty growth research analyst and portfolio manager of both the Putnam Emerging Information Science Trust Fund and the Putnam Emerging Health Sciences Trust Fund while at Putnam. SAWGRASS ASSET MANAGEMENT, LLC: Sawgrass Asset Management, LLC (Sawgrass), located at 1579 The Greens Way, Suite 20, Jacksonville, Florida 32250, serves as a Sub-Adviser to the SEI VP Small Cap Growth Fund. Dean McQuiddy of Sawgrass serves as portfolio manager of the portion of the SEI VP Small Cap Growth Fund's assets allocated to Sawgrass. Mr. McQuiddy, a founding Principal of Sawgrass, has 13 years of investment experience. Prior to joining Sawgrass, he was a portfolio manager at Barnett Capital Advisors. WALL STREET ASSOCIATES: Wall Street Associates (WSA), located at 1200 Prospect Street, Suite 100, La Jolla, California 92307, serves as a Sub-Adviser to the SEI VP Small Cap Growth Fund. William Jeffery III, Kenneth F. McCain and David Baratta of WSA serve as portfolio managers of the portion of the SEI VP Small Cap Growth Fund's assets allocated to WSA. Messrs. Jeffery and McCain are controlling principals of WSA. They each have over 28 years of investment management experience. Mr. Baratta joined WSA in 1999. Prior to joining WSA, Mr. Baratta was a portfolio manager of Morgan Grenfell, Inc. for 5 years. He has over 20 years of investment experience. WELLINGTON MANAGEMENT COMPANY, LLP: Wellington Management Company, LLP (Wellington Management), located at 75 State Street, Boston, Massachusetts 02109, has been selected as a Sub-Adviser to the SEI VP Small Cap Growth Fund. As of the date of this prospectus, no assets were allocated to Wellington Management. However, SIMC may allocate assets to Wellington Management at any time. Jamie A. Rome, CFA, Vice President and Equity Portfolio Manager of Wellington Management, would serve as portfolio manager of the portion of the SEI VP Small Cap Growth Fund's assets allocated to Wellington Management. Mr. Rome joined Wellington Management in 1994, and has 16 years of investment experience. SEI VP INTERNATIONAL EQUITY FUND: BLACKROCK INTERNATIONAL, LTD.: BlackRock International Ltd. (BlackRock International), located at 40 Torphichen Street, Edinburgh, EH3 8JB, Scotland, has been selected as a Sub-Adviser to the SEI VP International Equity Fund. As of the date of this prospectus, no assets were allocated to BlackRock International. However, SIMC may allocate assets to BlackRock International at any time. Albert B. Morillo, Managing Director and Senior Portfolio Manager, heads an investment committee at BlackRock International that would provide investment advice for the portion of the SEI VP International Equity Fund's assets allocated to BlackRock International. Prior to joining BlackRock International in January 2000, Mr. Morillo was the head of the European Team at Scottish Widows Investment Management. CAPITAL GUARDIAN TRUST COMPANY: Capital Guardian Trust Company (CGTC), located at 333 South Hope Street, 55th Floor, Los Angeles, California 90071, serves as a Sub-Adviser to the SEI VP International Equity Fund. A committee of investment professionals at CGTC manages the portion of the SEI VP International Equity Fund's assets allocated to CGTC and utilizes a multi-portfolio management system. SEI INVESTMENTS / PROSPECTUS 41 MORGAN STANLEY INVESTMENT MANAGEMENT INC.: Morgan Stanley Investment Management Inc. (MSIM), located at 1221 Avenue of the Americas, New York, New York 10020, has been selected as a Sub-Adviser to the SEI VP International Equity Fund. As of the date of this prospectus, no assets were allocated to MSIM. However, SIMC may allocate assets to MSIM at any time. A portion of the assets of the SEI VP International Equity Fund is managed by MSIM's International Equity Team. Current members of the team include Dominic Caldecott, Managing Director, Peter Wright, Managing Director, Willam Lock, Managing Director and Walter Ridderll, Vice President. OECHSLE INTERNATIONAL ADVISORS, LLC: Oechsle International Advisors, LLC (Oechsle), located at One International Place, 23rd Floor, Boston, Massachusetts 02110, serves as a Sub-Adviser to the SEI VP International Equity Fund. S. Dewey Keesler, Jr. and Kathleen Harris of Oechsle serve as portfolio managers of the portion of the SEI VP International Equity Fund's assets allocated to Oechsle. Mr. Keesler is a Managing Principal, Chief Investment Officer and Portfolio Manager/Research Analyst with responsibility for coordinating the firm's investment activities. He has over 20 years of investment experience. Ms. Harris joined Oechsle in January 1995 and is a Principal and Portfolio Manager/Research Analyst. SEI VP EMERGING MARKETS EQUITY FUND: THE BOSTON COMPANY ASSET MANAGEMENT, LLC: The Boston Company Asset Management, LLC (The Boston Company), located at One Boston Place, Boston, Massachusetts 02108, has been selected as a Sub-Adviser to the SEI VP Emerging Markets Equity Fund. As of the date of this prospectus, no assets were allocated to The Boston Company. However, SIMC may allocate assets to The Boston Company at any time. D. Kirk Henry, CFA, and Senior Vice President of The Boston Company, would serve as portfolio manager of the portion of the SEI VP Emerging Markets Equity Fund's assets allocated to The Boston Company. Since joining The Boston Company in 1994, Mr. Henry has had primary responsibility for the firm's Emerging Markets Equity product and co-responsibility for the International Equity strategies with Sandor Cseh. MORGAN STANLEY INVESTMENT MANAGEMENT INC.: Morgan Stanley Investment Management Inc. (MSIM), located at 1221 Avenue of the Americas, New York, New York 10020, has been selected as a Sub-Adviser to the SEI VP Emerging Markets Equity Fund. As of the date of this prospectus, no assets were allocated to MSIM. However, SIMC may allocate assets to MSIM at any time. A portion of the assets of the SEI VP Emerging Markets Equity Fund is managed by MSIM's Emerging Markets Equity Team. Current members of the team include Michael Perl, Executive Director, Ana Christina Piedrahita, Vice President and Narayan Ramachandran, Managing Director. SCHRODER INVESTMENT MANAGEMENT NORTH AMERICA INC.: Schroder Investment Management North America Inc. (Schroder), located at 875 Third Avenue, 22nd Floor, New York, New York 10022, serves as a Sub-Adviser to the SEI VP Emerging Markets Equity Fund. A team of investment professionals at Schroder manages the portion of the SEI VP Emerging Markets Equity Fund's assets allocated to Schroder. Giles Neville heads the Emerging Markets Committee at Schroder. Mr. Neville has over 13 years of investment experience. SG PACIFIC ASSET MANAGEMENT, INC. AND SGY ASSET MANAGEMENT (SINGAPORE) LTD.: SG Pacific Asset Management, Inc. (SG Pacific) and SGY Asset Management (Singapore) Ltd. (SGY), located at 560 Lexington Avenue, New York, New York 10022, have been selected as Sub-Advisers to the SEI VP Emerging Markets Equity Fund. As of the date of this prospectus, no assets were allocated to SG Pacific and SGY. However, SIMC may allocate assets to SG Pacific and SGY at any time. Marco Wong of SG Pacific and SGY would serve as portfolio manager of the portion of the SEI VP Emerging Markets Equity Fund's assets allocated to SG Pacific and SGY. Mr. Wong leads the management team for the assets of the Fund allocated to SG Pacific and SGY. Mr. Wong has been with SG Yamaichi, the parent of SGY and SG Pacific, since 1986. SEI VP CORE FIXED INCOME FUND: BLACKROCK FINANCIAL MANAGEMENT, INC.: BlackRock Financial Management, Inc. (BlackRock), located at 40 East 52nd Street, New York, New York 10022, has been selected as a Sub-Adviser to the SEI VP Core Fixed Income Fund. As of the 42 SEI INVESTMENTS / PROSPECTUS date of this prospectus, no assets were allocated to BlackRock. However, SIMC may allocate assets to BlackRock at any time. Keith Anderson and Andrew Phillips of BlackRock would serve as portfolio managers of the portion of the SEI VP Core Fixed Income Fund's assets allocated to BlackRock. Mr. Anderson is a Managing Director, Chief Investment Officer, Fixed Income and Co-Chair of the income securities group. Mr. Phillips is also a Managing Director and portfolio manager with primary responsibility for the management of the firm's investment activities in fixed-rate mortgage securities and has over 15 years of experience investing in fixed income securities. ROBERT W. BAIRD & CO., INCORPORATED: Robert W. Baird & Co., Incorporated (Baird), located at 777 E. Wisconsin Avenue, Milwaukee, Wisconsin 53202, has been selected as a Sub-Adviser to the SEI VP Core Fixed Income Fund. As of the date of this prospectus, no assets were allocated to Baird. However, SIMC may allocate assets to Baird at any time. Charles B. Groeschell of Baird would serve as portfolio manager of the portion of the SEI VP Core Fixed Income Fund's assets allocated to Baird. Prior to joining Baird in March 2000, Mr. Groeschell was a Senior Vice President and portfolio manager for Firstar Investment Management & Resource Company, LLC. Mr. Groeschell has over 18 years of investment experience. WESTERN ASSET MANAGEMENT COMPANY: Western Asset Management Company (WAMC), located at 117 E. Colorado Blvd., 6th Floor, Pasadena, California 91105, serves as a Sub-Adviser to the SEI VP Core Fixed Income Fund. A committee of investment professionals at WAMC manages a portion of the assets of the SEI VP Core Fixed Income Fund. SEI VP HIGH YIELD BOND FUND: CREDIT SUISSE ASSET MANAGEMENT, LLC: Credit Suisse Asset Management, LLC (Credit Suisse), located at 466 Lexington Avenue, New York, New York 10017, has been selected as a Sub-Adviser to the SEI VP High Yield Bond Fund. As of the date of this prospectus, no assets were allocated to Credit Suisse. However, SIMC may allocate assets to Credit Suisse at any time. Richard J. Lindquist, CFA, of Credit Suisse would serve as portfolio manager of the portion of the SEI VP High Yield Bond Fund's assets allocated to Credit Suisse. Mr. Lindquist joined Credit Suisse in 1995 as a result of Credit Suisse's acquisition of CS First Boston Investment Management, and has over 15 years of investment management experience, all of which were with high yield bonds. NICHOLAS-APPLEGATE CAPITAL MANAGEMENT: Nicholas Applegate Capital Management (Nicholas-Applegate), located at 600 West Broadway, Suite 2900, San Diego, California 92101, has been selected as a Sub-Adviser to the SEI VP High Yield Bond Fund. As of the date of this prospectus, no assets were allocated to Nicholas-Applegate. However, SIMC may allocate assets to Nicholas-Applegate at any time. A team of investment professionals, led by Doug G. Forsyth, CFA, would serve as portfolio managers of the portion of the SEI VP High Yield Bond Fund's assets allocated to Nicholas-Applegate. Mr. Forsyth, Lead Portfolio Manager of High Yield & Convertibles at Nicholas-Applegate, joined Nicholas-Applegate in 1994, and has 10 years of investment experience. NOMURA CORPORATE RESEARCH AND ASSET MANAGEMENT INC.: Nomura Corporate Research and Asset Management Inc. (Nomura), located at 2 World Financial Center, Building B, New York, New York 10281-1198, has been selected as a Sub-Adviser to the SEI VP High Yield Bond Fund. As of the date of this prospectus, no assets were allocated to Nomura. However, SIMC may allocate assets to Nomura at any time. Robert Levine, CFA, President and Chief Executive Officer of Nomura, and Richard A. Buch, Managing Director and Senior Portfolio Manager of Nomura, would serve as portfolio managers of the portion of the SEI VP High Yield Bond Fund's assets allocated to Nomura. Messrs. Levine and Buch are responsible for the management of Nomura's high yield bond portfolios and research analysis. Prior to joining Nomura, Mr. Levine was President of Kidder, Peabody High Yield Asset Management, Inc. and Managing Director of Kidder, Peabody & Co., where he created their first high yield bond mutual fund. Prior to joining Nomura, Mr. Buch was with Kidder, Peabody & Co., where he served as Senior Vice President of the Kidder, Peabody Asset Management, Inc. Mr. Levine and Mr. Buch each have over 21 years of investment experience. SEI INVESTMENTS / PROSPECTUS 43 SHENKMAN CAPITAL MANAGEMENT, INC.: Shenkman Capital Management, Inc. (Shenkman), located at 461 Fifth Avenue, New York, New York 10017, serves as a Sub-Adviser to the SEI VP High Yield Bond Fund. Mark Shenkman, President and Chief Investment Officer, Frank Whitley, Executive Vice President, and Mark Flanagan, Senior Vice President, of Shenkman serve as co-portfolio managers of the portion of the SEI VP High Yield Bond Fund's assets allocated to Shenkman. Mr. Shenkman has served in these roles since he founded the firm in 1985. Mr. Whitley joined Shenkman in 1988, and has co-managed the investment process since 1994. Mr. Flanagan joined Shenkman in 1992, and after serving as Director of Credit Research, was promoted to a portfolio manager in 2002. Mr. Shenkman, Mr. Whitley and Mr. Flanagan have a combined 60 years of investment experience. SEI VP INTERNATIONAL FIXED INCOME FUND: STRATEGIC FIXED INCOME, L.L.C.: Strategic Fixed Income, L.L.C. (Strategic), located at 1001 Nineteenth Street North, Suite 1400, Arlington, Virginia 22209, serves as the Sub-Adviser to the SEI VP International Fixed Income Fund. Kenneth Windheim, Gregory Barnett and David Jallits of Strategic serve as portfolio managers of the SEI VP International Fixed Income Fund. Mr. Windheim is the President and Chief Investment Officer of Strategic. Prior to joining Strategic, Mr. Windheim was the Chief Investment Officer and Managing Director of the group which managed global fixed income portfolios at Prudential Asset Management. Prior to joining Strategic, Mr. Barnett was a portfolio manager for the Pilgrim Multi-Market Income Fund. Prior to that, he was vice president and senior fixed income portfolio manager at Lexington Management. Prior to joining Strategic, Mr. Jallits was Senior Portfolio Manager for a hedge fund at Teton Partners. SEI VP EMERGING MARKETS DEBT FUND: SALOMON BROTHERS ASSET MANAGEMENT INC: Salomon Brothers Asset Management Inc (SBAM), located at 388 Greenwich Street, New York, New York 10013, serves as the Sub-Adviser to the SEI VP Emerging Markets Debt Fund. Peter J. Wilby leads the team of professionals from SBAM that manages the assets of the SEI VP Emerging Markets Debt Fund. Mr. Wilby, a Managing Director of SBAM, joined SBAM in 1989. SEI VP PRIME OBLIGATION FUND: WELLINGTON MANAGEMENT COMPANY, LLP: Wellington Management Company, LLP (Wellington Management), located at 75 State Street, Boston, Massachusetts 02109, serves as the Sub-Adviser to the SEI VP Prime Obligation Fund. Timothy E. Smith is the portfolio manager of the SEI VP Prime Obligation Fund. Mr. Smith has been an investment professional with Wellington Management since 1992. 44 SEI INVESTMENTS / PROSPECTUS PURCHASING AND SELLING FUND SHARES HOW TO PURCHASE FUND SHARES Shares of each Fund, except the SEI VP Prime Obligation Fund, are offered on each day that the New York Stock Exchange (NYSE) is open for business and shares of the SEI VP Prime Obligation Fund are offered on any day that the NYSE and the Federal Reserve System are open for business (a Business Day). However, the SEI VP Prime Obligation Fund may close early on Business Days that the Bond Market Association recommends that the bond markets close early. In addition, Fund shares cannot be purchased by Federal Reserve wire on federal holidays on which wire transfers are restricted. The Funds offer their Class A Shares only to insurance companies for separate accounts they establish to fund variable life insurance and variable annuity contracts. An insurance company purchases or redeems shares of the Funds based on, among other things, the amount of net contract premiums or purchase payments allocated to a separate account investment division, transfers to or from a separate account investment division, contract loans and repayments, contract withdrawals and surrenders, and benefit payments. The contract prospectus describes how contract owners may allocate, transfer and withdraw amounts to, and from, separate accounts. The price per share will be the net asset value per share (NAV) next determined after the Funds receive the insurance companies' purchase orders. Each Fund calculates NAV once each Business Day at the regularly-scheduled close of normal trading on the NYSE (normally, 4:00 p.m. Eastern time). To receive the current Business Day's NAV, generally the Funds must receive an order in proper form before 4:00 p.m. Eastern time (or the earlier of 4:00 p.m. or the close of the Business Day for the SEI VP Prime Obligation Fund). The Funds will not accept purchase orders that request a particular day or price for the transaction or any other special condition. HOW THE FUNDS CALCULATE NAV NAV for one Fund share is the value of that share's portion of the net assets of the Fund. In calculating NAV, the Funds (except the SEI VP Prime Obligation Fund) generally value their investment portfolio securities at market price. If market prices are unavailable or the Funds think that they are unreliable, fair value prices may be determined in good faith using methods approved by the Board of Trustees. Some Funds hold portfolio securities that are listed on foreign exchanges. These securities may trade on weekends or other days when the Funds do not calculate NAV. As a result, the market value of these Funds' investments may change on days when you cannot purchase or sell Fund shares. In calculating NAV for the SEI VP Prime Obligation Fund, the Fund generally values its investment portfolio using the amortized cost valuation method, which is described in detail in the SAI. If the Fund thinks amortized cost is unreliable, fair value prices may be determined in good faith using methods approved by the Board of Trustees. The Fund expects its NAV to remain constant at $1.00 per share, although there is no guarantee that the Fund can accomplish this. DISTRIBUTION OF FUND SHARES SEI Investments Distribution Co. (SIDCo.) is the distributor of the shares of the Funds. SIDCo. receives no compensation for distributing the Funds' Class A Shares. SEI INVESTMENTS / PROSPECTUS 45 DIVIDENDS, DISTRIBUTIONS AND TAXES DIVIDENDS AND DISTRIBUTIONS The Funds distribute their investment income periodically as a dividend to shareholders. It is the policy of the SEI VP Prime Obligation, SEI VP Core Fixed Income and SEI VP High Yield Bond Funds to pay dividends monthly, the SEI VP Large Cap Value, SEI VP Large Cap Growth, SEI VP Small Cap Value and SEI VP Small Cap Growth Funds to pay dividends quarterly and SEI VP International Equity, SEI VP Emerging Markets Equity, SEI VP International Fixed Income and SEI VP Emerging Markets Debt Funds to pay dividends annually. The Funds make distributions of capital gains, if any, at least annually. TAXES PLEASE CONSULT YOUR TAX ADVISOR REGARDING YOUR SPECIFIC QUESTIONS ABOUT FEDERAL, STATE AND LOCAL INCOME TAXES. Below the Funds have summarized some important tax issues that affect the Funds and their shareholders. This summary is based on current tax laws, which may change. The Funds expect that they will not have to pay income taxes if they distribute all of their net investment income and net realized capital gains at least annually. Net investment income and net realized capital gains that the Funds distribute are not currently taxable to investors when left to accumulate within a variable annuity or variable life insurance contract. The Funds do not expect to be subject to Federal excise taxes with respect to undistributed income. Special tax rules apply to life insurance companies, variable annuity contracts and variable life insurance contracts. For information on federal income taxation of a life insurance company with respect to its receipt of distributions from the Funds and federal income taxation of owners of variable annuity or variable life insurance contracts, refer to your contract prospectus. MORE INFORMATION ABOUT TAXES IS IN THE FUNDS' SAI. 46 SEI INVESTMENTS / PROSPECTUS FINANCIAL HIGHLIGHTS The tables that follow present performance information about Class A Shares of each Fund. This information is intended to help you understand each Fund's financial performance for the past five years, or, if shorter, the period of the Fund's operations. Some of this information reflects financial information for a single Fund share. The total returns in the table represent the rate that you would have earned (or lost) on an investment in a Fund, assuming you reinvested all of your dividends and distributions. This information has been audited by PricewaterhouseCoopers LLP, independent public accountants. Their report, along with each Fund's financial statements, appears in the annual report that accompanies the Funds' SAI. You can obtain the annual report, which contains more performance information, at no charge by calling 1-800-DIAL-SEI. SEI INSURANCE PRODUCTS TRUST -- FOR THE PERIOD ENDED DECEMBER 31, 2001 FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Net Realized and Unrealized Distributions Net Net Asset Net Gains Distributions from Asset Value, Investment (Losses) from Net Realized Value, Beginning Income on Investment Capital End of Total of Period (Loss) Securities Income Gains Period Return+ ---------------------------------------------------------------------------------------------------------------------- SEI VP LARGE CAP VALUE FUND ---------------------------------------------------------------------------------------------------------------------- 2001 $10.82 $ 0.12 $(0.44) $(0.12) $(0.17) $10.21 (2.91)% ---------------------------------------------------------------------------------------------------------------------- 2000(1) 10.00 0.09 0.82 (0.09) -- 10.82 9.17 ---------------------------------------------------------------------------------------------------------------------- SEI VP LARGE CAP GROWTH FUND ---------------------------------------------------------------------------------------------------------------------- 2001 $ 7.48 $ -- $(2.03) $ -- $ -- $ 5.45 (27.14)% ---------------------------------------------------------------------------------------------------------------------- 2000(1) 10.00 (0.01) (2.51) -- -- 7.48 (25.20) ---------------------------------------------------------------------------------------------------------------------- SEI VP SMALL CAP VALUE FUND ---------------------------------------------------------------------------------------------------------------------- 2001 $11.83 $ 0.06 $ 1.64 $(0.06) $(0.90) $12.57 14.89% ---------------------------------------------------------------------------------------------------------------------- 2000(1) 10.00 0.07 2.13 (0.07) (0.30) 11.83 22.25 ---------------------------------------------------------------------------------------------------------------------- SEI VP SMALL CAP GROWTH FUND ---------------------------------------------------------------------------------------------------------------------- 2001 $ 9.63 $(0.04) $(2.07) $ -- $ -- $ 7.52 (21.91)% ---------------------------------------------------------------------------------------------------------------------- 2000(1) 10.00 (0.04) (0.33) -- -- 9.63 (3.70) ---------------------------------------------------------------------------------------------------------------------- SEI VP INTERNATIONAL EQUITY FUND ---------------------------------------------------------------------------------------------------------------------- 2001 $ 7.95 $ 0.01 $(1.92) $(0.01) $ -- $ 6.03 (24.05)% ---------------------------------------------------------------------------------------------------------------------- 2000(1) 10.00 0.09 (2.05) (0.09) -- 7.95 (19.60) ---------------------------------------------------------------------------------------------------------------------- SEI VP EMERGING MARKETS EQUITY FUND ---------------------------------------------------------------------------------------------------------------------- 2001 $ 6.23 $ 0.03 $(0.72) $ -- $ -- $ 5.54 (11.08)% ---------------------------------------------------------------------------------------------------------------------- 2000(1) 10.00 (0.05) (3.72) -- -- 6.23 (37.70) ---------------------------------------------------------------------------------------------------------------------- Ratio of Net Ratio of Ratio of Investment Ratio of Net Expenses to Income (Loss) to Expenses Investment Average Net Average Net to Income Assets Assets Net Assets Average (Loss) to (Excluding (Excluding Portfolio End of Period Net Average Waivers and Waivers and Turnover ($ Thousands) Assets Net Assets Reimbursements) Reimbursements) Rate ----------------------------------- SEI VP LARGE CAP VALUE FUND ----------------------------------- 2001 $38,888 0.85% 1.25% 1.14% 0.96% 42% ----------------------------------- 2000(1) 22,170 0.85 1.25 1.35 0.75 49 ----------------------------------- SEI VP LARGE CAP GROWTH FUND ----------------------------------- 2001 $28,868 0.85% (0.25)% 1.19% (0.59)% 84% ----------------------------------- 2000(1) 17,236 0.85 (0.26) 1.39 (0.80) 57 ----------------------------------- SEI VP SMALL CAP VALUE FUND ----------------------------------- 2001 $15,719 1.10% 0.48% 1.45% 0.13% 39% ----------------------------------- 2000(1) 10,498 1.10 0.90 1.66 0.34 98 ----------------------------------- SEI VP SMALL CAP GROWTH FUND ----------------------------------- 2001 $ 9,625 1.10% (0.82)% 1.46% (1.18)% 151% ----------------------------------- 2000(1) 8,699 1.10 (0.59) 1.65 (1.14) 116 ----------------------------------- SEI VP INTERNATIONAL EQUITY FUND ----------------------------------- 2001 $17,047 1.28% 0.19% 2.04% (0.57)% 41% ----------------------------------- 2000(1) 12,949 1.28 1.61 2.13 0.76 31 ----------------------------------- SEI VP EMERGING MARKETS EQUITY FUND ----------------------------------- 2001 $ 8,824 1.95% 0.06% 3.70% (1.69)% 149% ----------------------------------- 2000(1) 7,286 1.95 (0.62) 3.52 (2.19) 117 -----------------------------------
SEI INVESTMENTS / PROSPECTUS 47
Net Realized and Unrealized Distributions Net Net Asset Net Gains Distributions from Asset Value, Investment (Losses) from Net Realized Value, Beginning Income on Investment Capital End of Total of Period (Loss) Securities Income Gains Period Return+ ---------------------------------------------------------------------------------------------------------------------- SEI VP CORE FIXED INCOME FUND ---------------------------------------------------------------------------------------------------------------------- 2001 $10.36 $ 0.55 $ 0.23 $(0.55) $(0.22) $10.37 7.69% ---------------------------------------------------------------------------------------------------------------------- 2000(1) 10.00 0.45 0.36 (0.45) -- 10.36 8.31 ---------------------------------------------------------------------------------------------------------------------- SEI VP HIGH YIELD BOND FUND ---------------------------------------------------------------------------------------------------------------------- 2001 $ 9.16 $ 0.87 $(0.50) $(0.87) $ -- $ 8.66 4.00% ---------------------------------------------------------------------------------------------------------------------- 2000(1) 10.00 0.70 (0.84) (0.70) -- 9.16 (1.51) ---------------------------------------------------------------------------------------------------------------------- SEI VP INTERNATIONAL FIXED INCOME FUND ---------------------------------------------------------------------------------------------------------------------- 2001 $ 9.89 $ 0.09 $(0.61) $ -- $(0.07) $ 9.30 (5.32)% ---------------------------------------------------------------------------------------------------------------------- 2000(1) 10.00 (0.20) 0.09 -- -- 9.89 (1.10) ---------------------------------------------------------------------------------------------------------------------- SEI VP EMERGING MARKETS DEBT FUND ---------------------------------------------------------------------------------------------------------------------- 2001 $ 9.75 $ 0.96 $ 0.26 $(0.96) $ -- $10.01 12.56% ---------------------------------------------------------------------------------------------------------------------- 2000(1) 10.00 0.76 (0.11) (0.76) (0.14) 9.75 6.56 ---------------------------------------------------------------------------------------------------------------------- SEI VP PRIME OBLIGATION FUND ---------------------------------------------------------------------------------------------------------------------- 2001 $ 1.00 $ 0.04 $ -- $(0.04) $ -- $ 1.00 3.80% ---------------------------------------------------------------------------------------------------------------------- 2000(1) 1.00 0.04 -- (0.04) -- 1.00 4.56 ---------------------------------------------------------------------------------------------------------------------- Ratio of Net Ratio of Ratio of Investment Ratio of Net Expenses to Income (Loss) to Expenses Investment Average Net Average Net to Income Assets Assets Net Assets Average (Loss) to (Excluding (Excluding Portfolio End of Period Net Average Waivers and Waivers and Turnover ($ Thousands) Assets Net Assets Reimbursements) Reimbursements) Rate ----------------------------------- SEI VP CORE FIXED INCOME FUND ----------------------------------- 2001 $45,394 0.60% 5.15% 1.00% 4.75% 423% ----------------------------------- 2000(1) 19,215 0.60 6.10 1.19 5.51 342 ----------------------------------- SEI VP HIGH YIELD BOND FUND ----------------------------------- 2001 $12,595 0.85% 9.54% 1.31% 9.08% 72% ----------------------------------- 2000(1) 10,427 0.85 9.75 1.51 9.09 5 ----------------------------------- SEI VP INTERNATIONAL FIXED INCOME F ----------------------------------- 2001 $ 9,945 1.00% 2.99% 1.51% 2.48% 301% ----------------------------------- 2000(1) 7,391 1.00 3.39 1.70 2.69 100 ----------------------------------- SEI VP EMERGING MARKETS DEBT FUND ----------------------------------- 2001 $ 8,239 1.35% 9.61% 2.07% 8.89% 201% ----------------------------------- 2000(1) 6,563 1.35 10.55 2.26 9.64 140 ----------------------------------- SEI VP PRIME OBLIGATION FUND ----------------------------------- 2001 $16,203 0.44% 3.35% 0.93% 2.86% N/A ----------------------------------- 2000(1) 5,685 0.44 6.04 1.14 5.34 N/A -----------------------------------
+ Returns are for the period indicated and have not been annualized. (1) Commenced operations on April 5, 2000. All ratios for the period have been annualized. Amounts designated as "--" are either $0 or have been rounded to $0. 48 SEI INVESTMENTS / PROSPECTUS INVESTMENT ADVISER SEI Investments Management Corporation One Freedom Valley Drive Oaks, PA 19456 DISTRIBUTOR SEI Investments Distribution Co. One Freedom Valley Drive Oaks, PA 19456 LEGAL COUNSEL Morgan, Lewis & Bockius LLP More information about the Funds is available without charge through the following: STATEMENT OF ADDITIONAL INFORMATION (SAI) The SAI dated May 1, 2002, includes more detailed information about SEI Insurance Products Trust. The SAI is on file with the SEC and is incorporated by reference into this prospectus. This means that the SAI, for legal purposes, is a part of this prospectus. ANNUAL AND SEMI-ANNUAL REPORTS These reports will typically list the Funds' holdings and contain information from the Funds' managers about strategies and market conditions and trends and their impact on performance. The reports will also contain detailed financial information about the Funds. TO OBTAIN AN SAI, ANNUAL OR SEMI-ANNUAL REPORT, OR MORE INFORMATION: By Telephone: Call 1-800-DIAL-SEI By Mail: Write to the Funds at: One Freedom Valley Drive Oaks, PA 19456 By Internet: http://www.seic.com From the SEC: You can obtain the SAI or the Annual and Semi-Annual Reports, as well as other information about SEI Insurance Products Trust, from the EDGAR Database on the SEC's website ("http://www.sec.gov"). You may review and copy documents at the SEC Public Reference Room in Washington, D.C. (for information on the operation of the Public Reference Room, call 202-942-8090). You may request documents by mail from the SEC, upon payment of a duplicating fee, by writing to: Securities and Exchange Commission, Public Reference Section, Washington, DC 20549-0102. You may also obtain this information, upon payment of a duplicating fee, by e-mailing the SEC at the following address: publicinfo@sec.gov. The Trust's Investment Company Act registration number is 811-9183. SEI INSURANCE PRODUCTS TRUST PROSPECTUS CLASS A SHARES MAY 1, 2002 EQUITY FUNDS: SEI VP LARGE CAP VALUE FUND SEI VP LARGE CAP GROWTH FUND SEI VP SMALL CAP VALUE FUND SEI VP SMALL CAP GROWTH FUND SEI VP INTERNATIONAL EQUITY FUND SEI VP EMERGING MARKETS EQUITY FUND FIXED INCOME FUNDS: SEI VP CORE FIXED INCOME FUND SEI VP HIGH YIELD BOND FUND SEI VP INTERNATIONAL FIXED INCOME FUND SEI VP EMERGING MARKETS DEBT FUND INVESTMENT ADVISER: SEI INVESTMENTS MANAGEMENT CORPORATION INVESTMENT SUB-ADVISERS: ALLIANCE CAPITAL MANAGEMENT L.P. ARTISAN PARTNERS LIMITED PARTNERSHIP BLACKROCK FINANCIAL MANAGEMENT, INC. BLACKROCK INTERNATIONAL, LTD. THE BOSTON COMPANY ASSET MANAGEMENT, LLC CAPITAL GUARDIAN TRUST COMPANY CHARTWELL INVESTMENT PARTNERS CREDIT SUISSE ASSET MANAGEMENT LLC DAVID J. GREENE & COMPANY, LLC DEUTSCHE ASSET MANAGEMENT INC. DUNCAN-HURST CAPITAL MANAGEMENT INC. IRIDIAN ASSET MANAGEMENT LLC LSV ASSET MANAGEMENT MAZAMA CAPITAL MANAGEMENT, INC. MCKINLEY CAPITAL MANAGEMENT, INC. MONTAG & CALDWELL INC. MORGAN STANLEY INVESTMENT MANAGEMENT INC. NICHOLAS-APPLEGATE CAPITAL MANAGEMENT NOMURA CORPORATE RESEARCH AND ASSET MANAGEMENT INC. OECHSLE INTERNATIONAL ADVISORS, LLC PEREGRINE CAPITAL MANAGEMENT INC. RS INVESTMENT MANAGEMENT, L.P. ROBERT W. BAIRD & CO., INCORPORATED SALOMON BROTHERS ASSET MANAGEMENT INC SANFORD C. BERNSTEIN & CO., LLC SAWGRASS ASSET MANAGEMENT, LLC SCHRODER INVESTMENT MANAGEMENT NORTH AMERICA INC. SECURITY CAPITAL RESEARCH AND MANAGEMENT INCORPORATED SG PACIFIC ASSET MANAGEMENT, INC. SGY ASSET MANAGEMENT (SINGAPORE) LTD. SHENKMAN CAPITAL MANAGEMENT, INC. STERLING CAPITAL MANAGEMENT STRATEGIC FIXED INCOME, L.L.C. TRANSAMERICA INVESTMENT MANAGEMENT, LLC WALL STREET ASSOCIATES WELLINGTON MANAGEMENT COMPANY, LLP WESTERN ASSET MANAGEMENT COMPANY THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED THESE SECURITIES OR PASSED UPON THE ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. SEI INVESTMENTS / PROSPECTUS I SEI INSURANCE PRODUCTS TRUST ------------------------------------------------------------------------------ ABOUT THIS PROSPECTUS SEI Insurance Products Trust is a mutual fund family that offers different classes of shares in separate investment portfolios (Funds). The Funds have individual investment goals and strategies and are designed exclusively as funding vehicles for variable life insurance and variable annuity contracts. This prospectus gives contract owners important information about the Class A Shares of the Funds that they should know before investing. Please read this prospectus and keep it for future reference. Variable life insurance and variable annuity account investors should also review the separate account prospectus prepared by their insurance company. This prospectus has been arranged into different sections so that you can easily review this important information. On the next page, there is some general information you should know about risk and return that is common to each of the Funds. For more detailed information about the Funds please see:
SEI VP Large Cap Value Fund 2 ------------------------------------------------------------------------ SEI VP Large Cap Growth Fund 5 ------------------------------------------------------------------------ SEI VP Small Cap Value Fund 8 ------------------------------------------------------------------------ SEI VP Small Cap Growth Fund 11 ------------------------------------------------------------------------ SEI VP International Equity Fund 14 ------------------------------------------------------------------------ SEI VP Emerging Markets Equity Fund 17 ------------------------------------------------------------------------ SEI VP Core Fixed Income Fund 20 ------------------------------------------------------------------------ SEI VP High Yield Bond Fund 23 ------------------------------------------------------------------------ SEI VP International Fixed Income Fund 26 ------------------------------------------------------------------------ SEI VP Emerging Markets Debt Fund 29 ------------------------------------------------------------------------ More Information About Fund Investments 33 ------------------------------------------------------------------------ Investment Adviser and Sub-Advisers 33 ------------------------------------------------------------------------ Purchasing and Selling Fund Shares 41 ------------------------------------------------------------------------ Dividends, Distributions and Taxes 42 ------------------------------------------------------------------------ Financial Highlights 43 ------------------------------------------------------------------------ How To Obtain More Information About SEI Insurance Products Trust Back Cover ------------------------------------------------------------------------
SEI INVESTMENTS / PROSPECTUS 1 GLOBAL ASSET ALLOCATION Each Fund has its own distinct risk and reward characteristics, investment objectives, policies and strategies. In addition to managing the Funds, SEI Investments Management Corporation (SIMC) constructs and maintains global asset allocation strategies for certain clients, and the Funds are designed in part to implement those strategies. The degree to which an investor's portfolio is invested in the particular market segments and/or asset classes represented by these Funds varies, as does the investment risk/return potential represented by each Fund. Some Funds, especially the SEI VP High Yield Bond, SEI VP Emerging Markets Equity and SEI VP Emerging Markets Debt Funds, may have extremely volatile returns. Because of the historical lack of correlation among various asset classes, an investment in a mix of Funds representing a range of asset classes as part of an asset allocation strategy may reduce the strategy's overall level of volatility. As a result, a global asset allocation strategy may reduce risk. In managing the Funds, SIMC focuses on four key principles: asset allocation, portfolio structure, the use of specialist managers, and continuous portfolio management. Asset allocation across appropriate asset classes (represented by the Funds) is the central theme of SIMC's investment philosophy. SIMC seeks to reduce risk further by creating a portfolio that focuses on a specific asset class. SIMC then oversees a network of specialist managers who invest the assets of these Funds in distinct segments of the market or class represented by each Fund. These specialist managers adhere to distinct investment disciplines, with the goal of providing greater consistency and predictability of results, as well as broader diversification across and within asset classes. Finally, SIMC regularly rebalances to ensure that the appropriate mix of assets is constantly in place, and constantly monitors and evaluates specialist managers for these Funds to ensure that they do not deviate from their stated investment philosophy or process. RISK/RETURN INFORMATION COMMON TO THE FUNDS Each Fund is a mutual fund that is available solely as a funding vehicle for variable annuity and variable life insurance contracts sold by various insurance companies. A mutual fund pools investors' money and, using professional investment managers, invests it in securities. Each Fund has its own investment goal and strategies for reaching that goal. Each Fund's assets are managed under the direction of SIMC and one or more Sub-Advisers who manage portions of the Funds' assets in a way that they believe will help the Funds achieve their goals. SIMC acts as "manager of managers" for the Funds, and attempts to ensure that the Sub-Adviser(s) comply with the Funds' investment policies and guidelines. SIMC also recommends the appointment of additional or replacement Sub-Advisers to the Funds' Board. Still, investing in the Funds involves risks, and there is no guarantee that a Fund will achieve its goal. SIMC and the Sub-Advisers make judgments about the securities markets, the economy, and companies, but these judgments may not anticipate actual market movements or the impact of economic conditions on company performance. In fact, no matter how good a job SIMC and the Sub-Advisers do, you could lose money on your investment in a Fund, just as you could with other investments. A Fund share is not a bank deposit and it is not insured or guaranteed by the FDIC or any other government agency. The value of your investment in a Fund based on the market prices of the securities the Fund holds. These prices change daily due to economic and other events that affect securities markets generally, as well as those that affect particular companies and other issuers. These price movements, sometimes called volatility, may be greater or lesser depending on the types of securities the Fund owns and the markets in which they trade. The estimated level of volatility for each Fund is set forth in the Fund Summaries that follow. The effect on a Fund of a change in the value of a single security will depend on how widely the Fund diversifies its holdings. THE INVESTMENT OBJECTIVES AND POLICIES OF THE FUNDS MAY BE SIMILAR TO THOSE OF OTHER RETAIL MUTUAL FUNDS WHICH CAN BE PURCHASED OUTSIDE OF A VARIABLE INSURANCE PRODUCT, AND THAT ARE MANAGED BY THE SAME INVESTMENT ADVISER OR SUB-ADVISERS. THE INVESTMENT RESULTS OF THE FUNDS, HOWEVER, MAY BE HIGHER OR LOWER THAN THE RESULTS OF SUCH OTHER RETAIL MUTUAL FUNDS. THERE CAN BE NO ASSURANCE, AND NO REPRESENTATION IS MADE, THAT THE INVESTMENT RESULTS OF ANY OF THE FUNDS WILL BE COMPARABLE TO THE INVESTMENT RESULTS OF ANY OTHER RETAIL MUTUAL FUND, EVEN IF THE OTHER RETAIL MUTUAL FUND HAS THE SAME INVESTMENT ADVISER OR SUB-ADVISERS. 2 SEI INVESTMENTS / PROSPECTUS SEI VP LARGE CAP VALUE FUND ------------------------------------------------------------------------------ FUND SUMMARY INVESTMENT GOAL: Long-term growth of capital and income SHARE PRICE VOLATILITY: Medium to high PRINCIPAL INVESTMENT Utilizing multiple specialist STRATEGY: sub-advisers that manage in a value style, the Fund invests in large cap income-producing U.S. common stocks
-------------------------------------------------------------------------------- INVESTMENT STRATEGY Under normal circumstances, the SEI VP Large Cap Value Fund will invest at least 80% of its net assets in equity in securities of large companies. The Fund will invest primarily in income-producing common stocks of U.S. companies with market capitalizations of more than $1 billion. The Fund uses a multi-manager approach, relying on a number of Sub-Advisers with differing investment philosophies to manage portions of the Fund's portfolio under the general supervision of SIMC. Each Sub-Adviser, in managing its portion of the Fund's assets, selects stocks it believes are undervalued in light of such fundamental characteristics as earnings, book value or return on equity. The Fund's portfolio is diversified as to issuers and industries. WHAT ARE THE RISKS OF INVESTING IN THE FUND? Since it purchases equity securities, the Fund is subject to the risk that stock prices will fall over short or extended periods of time. Historically, the equity markets have moved in cycles, and the value of the Fund's securities may fluctuate drastically from day to day. Individual companies may report poor results or be negatively affected by industry and/or economic trends and developments. The prices of securities issued by such companies may suffer a decline in response. These factors contribute to price volatility, which is the principal risk of investing in the Fund. The Fund is also subject to the risk that large capitalization value stocks may underperform other segments of the equity markets or the equity markets as a whole. SEI INVESTMENTS / PROSPECTUS 3 PERFORMANCE INFORMATION The bar chart and the performance table below illustrate the risks and volatility of an investment in the Fund. Of course, the Fund's past performance does not necessarily indicate how the Fund will perform in the future. This bar chart shows the performance of the Fund's Class A Shares for one year. The performance information shown is based on a full calendar year. EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC 2001 -2.91%
BEST QUARTER: 7.40% (12/31/01) WORST QUARTER: -10.42% (09/30/01) This table compares the Fund's average annual total returns for Class A Shares for the periods ended December 31, 2001 to those of the Frank Russell 1000 Value Index.
SINCE CLASS A SHARES 1 YEAR INCEPTION* ------------------------------------------------------------ SEI VP Large Cap Value Fund -2.91% 3.41% ------------------------------------------------------------ Frank Russell 1000 Value Index** -5.59% 1.04% ------------------------------------------------------------
* The Fund's inception date is April 5, 2000. The Index inception date is April 30, 2000. ** An index measures the market prices of a specific group of securities in a particular market or securities in a market sector. You cannot invest directly in an index. Unlike a mutual fund, an index does not have an investment adviser and does not pay any commissions or expenses. If an index had expenses, its performance would be lower. The Frank Russell 1000 Value Index is a widely-recognized, capitalization-weighted (companies with larger market capitalizations have more influence than those with smaller market capitalizations) index that consists of a subset of the 1000 largest U.S. companies with lower growth rates and price-to-book ratios. 4 SEI INVESTMENTS / PROSPECTUS FUND FEES AND EXPENSES This table describes the fees and expenses that you may pay if you buy and hold Fund shares. ANNUAL FUND OPERATING EXPENSES
(EXPENSES DEDUCTED FROM FUND ASSETS) ---------------------------------------------------------- Investment Advisory Fees 0.35% ---------------------------------------------------------- Distribution (12b-1) Fees None ---------------------------------------------------------- Other Expenses 0.79% ---------------------------------------------------------- ---------------------------------------------------------- Total Annual Fund Operating Expenses 1.14%* ----------------------------------------------------------
* The Fund's total actual annual fund operating expenses for the most recent fiscal year were less than the amount shown above because the Adviser and Administrator are each waiving a portion of the fees in order to keep total operating expenses at a specified level. The Adviser and/or Administrator may discontinue all or part of their waivers at any time. With these fee waivers, the Fund's actual total operating expenses are as follows: SEI VP Large Cap Value Fund -- Class A Shares 0.85% ---------------------------------------------------------
For more information about these fees, see "Investment Adviser and Sub-Advisers" and "Distribution of Fund Shares." The amount set forth above does not reflect the fees and expenses of the insurance contract that are charged by your insurance company. EXAMPLE This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and that you sell your shares at the end of the period. The Example also assumes that each year your investment has a 5% return, Fund operating expenses remain the same, and you reinvest all dividends and distributions. Although your actual costs and returns might be different, your approximate costs of investing $10,000 in the Fund would be:
1 YEAR 3 YEARS 5 YEARS 10 YEARS ------------------------------------------------------------------ SEI VP Large Cap Value Fund -- Class A Shares $ 116 $ 362 $ 628 $ 1,386 ------------------------------------------------------------------
SEI INVESTMENTS / PROSPECTUS 5 SEI VP LARGE CAP GROWTH FUND ------------------------------------------------------------------------------ FUND SUMMARY INVESTMENT GOAL: Capital appreciation SHARE PRICE VOLATILITY: Medium to high PRINCIPAL INVESTMENT Utilizing multiple specialist STRATEGY: sub-advisers that manage in a growth style, the Fund invests in large cap U.S. common stocks
-------------------------------------------------------------------------------- INVESTMENT STRATEGY Under normal circumstances, the SEI VP Large Cap Growth Fund will invest at least 80% of its net assets in equity securities of large companies. The Fund will invest primarily in common stocks of U.S. companies with market capitalizations of more than $1 billion. The Fund uses a multi-manager approach, relying on a number of Sub-Advisers with differing investment philosophies to manage portions of the Fund's portfolio under the general supervision of SIMC. Each Sub-Adviser, in managing its portion of the Fund's assets, selects stocks it believes have significant growth potential in light of such characteristics as revenue and earnings growth and positive earnings surprises. The Fund's portfolio is diversified as to issuers and industries. WHAT ARE THE RISKS OF INVESTING IN THE FUND? Since it purchases equity securities, the Fund is subject to the risk that stock prices will fall over short or extended periods of time. Historically, the equity markets have moved in cycles, and the value of the Fund's securities may fluctuate drastically from day to day. Individual companies may report poor results or be negatively affected by industry and/or economic trends and developments. The prices of securities issued by such companies may suffer a decline in response. These factors contribute to price volatility, which is the principal risk of investing in the Fund. The Fund is subject to the risk that large capitalization growth stocks may underperform other segments of the equity markets or the equity markets as a whole. 6 SEI INVESTMENTS / PROSPECTUS PERFORMANCE INFORMATION The bar chart and the performance table below illustrate the risks and volatility of an investment in the Fund. Of course, the Fund's past performance does not necessarily indicate how the Fund will perform in the future. This bar chart shows the performance of the Fund's Class A Shares for one year. The performance information shown is based on a full calendar year. EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC 2001 -27.14%
BEST QUARTER: 18.22% (12/31/01) WORST QUARTER: -25.67% (03/31/01) This table compares the Fund's average annual total returns for Class A Shares for the periods ended December 31, 2001 to those of the Frank Russell 1000 Growth Index.
SINCE CLASS A SHARES 1 YEAR INCEPTION* ------------------------------------------------------------- SEI VP Large Cap Growth Fund -27.14% -29.50% ------------------------------------------------------------- Frank Russell 1000 Growth Index** -20.42% -26.03% -------------------------------------------------------------
* The Fund's inception date is April 5, 2000. The Index inception date is April 30, 2000. ** An index measures the market prices of a specific group of securities in a particular market or securities in a market sector. You cannot invest directly in an index. Unlike a mutual fund, an index does not have an investment adviser and does not pay any commissions or expenses. If an index had expenses, its performance would be lower. The Frank Russell 1000 Growth Index is a widely-recognized, capitalization-weighted (companies with larger market capitalizations have more influence than those with smaller market capitalizations) index that consists of a subset of the 1000 largest U.S. companies with higher growth rates and price-to-book ratios. SEI INVESTMENTS / PROSPECTUS 7 FUND FEES AND EXPENSES This table describes the fees and expenses that you may pay if you buy and hold Fund shares. ANNUAL FUND OPERATING EXPENSES
(EXPENSES DEDUCTED FROM FUND ASSETS) ---------------------------------------------------------- Investment Advisory Fees 0.40% ---------------------------------------------------------- Distribution (12b-1) Fees None ---------------------------------------------------------- Other Expenses 0.79% ---------------------------------------------------------- ---------------------------------------------------------- Total Annual Fund Operating Expenses 1.19%* ----------------------------------------------------------
* The Fund's total actual annual fund operating expenses for the most recent fiscal year were less than the amount shown above because the Adviser and Administrator are each waiving a portion of the fees in order to keep total operating expenses at a specified level. The Adviser and/or Administrator may discontinue all or part of their waivers at any time. With these fee waivers, the Fund's actual total operating expenses are as follows: SEI VP Large Cap Growth Fund -- Class A Shares 0.85% ---------------------------------------------------------
For more information about these fees, see "Investment Adviser and Sub-Advisers" and "Distribution of Fund Shares." The amount set forth above does not reflect the fees and expenses of the insurance contract that are charged by your insurance company. EXAMPLE This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and that you sell your shares at the end of the period. The Example also assumes that each year your investment has a 5% return, Fund operating expenses remain the same, and you reinvest all dividends and distributions. Although your actual costs and returns might be different, your approximate costs of investing $10,000 in the Fund would be:
1 YEAR 3 YEARS 5 YEARS 10 YEARS ------------------------------------------------------------------ SEI VP Large Cap Growth Fund -- Class A Shares $ 121 $ 378 $ 654 $ 1,443 ------------------------------------------------------------------
8 SEI INVESTMENTS / PROSPECTUS SEI VP SMALL CAP VALUE FUND ------------------------------------------------------------------------------ FUND SUMMARY INVESTMENT GOAL: Capital appreciation SHARE PRICE VOLATILITY: High PRINCIPAL INVESTMENT Utilizing multiple specialist STRATEGY: sub-advisers that manage in a value style, the Fund invests in common stocks of smaller U.S. companies
-------------------------------------------------------------------------------- INVESTMENT STRATEGY Under normal circumstances, the SEI VP Small Cap Value Fund will invest at least 80% of its net assets in equity securities of small companies. The Fund will invest primarily in common stocks of U.S. companies with market capitalizations of less than $2 billion. The Fund uses a multi-manager approach, relying upon a number of Sub-Advisers to manage portions of the Fund's portfolio under the general supervision of SIMC. Each Sub-Adviser, in managing its portion of the Fund's assets, selects stocks it believes are undervalued in light of such fundamental characteristics as earnings, book value or return on equity. The Fund's portfolio is diversified as to issuers and industries. WHAT ARE THE RISKS OF INVESTING IN THE FUND? Since it purchases equity securities, the Fund is subject to the risk that stock prices will fall over short or extended periods of time. Historically, the equity markets have moved in cycles, and the value of the Fund's securities may fluctuate drastically from day to day. Individual companies may report poor results or be negatively affected by industry and/or economic trends and developments. The prices of securities issued by such companies may suffer a decline in response. These factors contribute to price volatility, which is the principal risk of investing in the Fund. The Fund is also subject to the risk that small capitalization value stocks may underperform other segments of the equity markets or the equity markets as a whole. The smaller capitalization companies that the Fund invests in may be more vulnerable to adverse business or economic events than larger, more established companies. In particular, these small companies may have limited product lines, markets and financial resources, and may depend upon a relatively small management group. Therefore, small cap stocks may be more volatile than those of larger companies. These securities may be traded over the counter or listed on an exchange. SEI INVESTMENTS / PROSPECTUS 9 PERFORMANCE INFORMATION The bar chart and the performance table below illustrate the risks and volatility of an investment in the Fund. Of course, the Fund's past performance does not necessarily indicate how the Fund will perform in the future. This bar chart shows the performance of the Fund's Class A Shares for one year. The performance information shown is based on a full calendar year. EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC 2001 14.89%
BEST QUARTER: 16.64% (12/31/01) WORST QUARTER: -12.77% (09/30/01) This table compares the Fund's average annual total returns for Class A Shares for the periods ended December 31, 2001 to those of the Frank Russell 2000 Value Index.
SINCE CLASS A SHARES 1 YEAR INCEPTION* ------------------------------------------------------------ SEI VP Small Cap Value Fund 14.89% 21.62% ------------------------------------------------------------ Frank Russell 2000 Value Index** 14.02% 19.25% ------------------------------------------------------------
* The Fund's inception date is April 5, 2000. The Index inception date is April 30, 2000. ** An index measures the market prices of a specific group of securities in a particular market or securities in a market sector. You cannot invest directly in an index. Unlike a mutual fund, an index does not have an investment adviser and does not pay any commissions or expenses. If an index had expenses, its performance would be lower. The Frank Russell 2000 Value Index is a widely-recognized, capitalization-weighted (companies with larger market capitalizations have more influence than those with smaller market capitalizations) index that consists of a subset of the 2000 smallest U.S. companies out of the 3000 largest U.S. companies with lower growth rates and price-to-book ratios. 10 SEI INVESTMENTS / PROSPECTUS FUND FEES AND EXPENSES This table describes the fees and expenses that you may pay if you buy and hold Fund shares. ANNUAL FUND OPERATING EXPENSES
(EXPENSES DEDUCTED FROM FUND ASSETS) ---------------------------------------------------------- Investment Advisory Fees 0.65% ---------------------------------------------------------- Distribution (12b-1) Fees None ---------------------------------------------------------- Other Expenses 0.80% ---------------------------------------------------------- ---------------------------------------------------------- Total Annual Fund Operating Expenses 1.45%* ----------------------------------------------------------
* The Fund's total actual annual fund operating expenses for the most recent fiscal year were less than the amount shown above because the Adviser and Administrator are each waiving a portion of the fees in order to keep total operating expenses at a specified level. The Adviser and/or Administrator may discontinue all or part of their waivers at any time. With these fee waivers, the Fund's actual total operating expenses are as follows: SEI VP Small Cap Value Fund -- Class A Shares 1.10% ---------------------------------------------------------
For more information about these fees, see "Investment Adviser and Sub-Advisers" and "Distribution of Fund Shares." The amount set forth above does not reflect the fees and expenses of the insurance contract that are charged by your insurance company. EXAMPLE This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and that you sell your shares at the end of the period. The Example also assumes that each year your investment has a 5% return, Fund operating expenses remain the same, and you reinvest all dividends and distributions. Although your actual costs and returns might be different, your approximate costs of investing $10,000 in the Fund would be:
1 YEAR 3 YEARS 5 YEARS 10 YEARS ------------------------------------------------------------------ SEI VP Small Cap Value Fund -- Class A Shares $ 148 $ 459 $ 792 $ 1,735 ------------------------------------------------------------------
SEI INVESTMENTS / PROSPECTUS 11 SEI VP SMALL CAP GROWTH FUND ------------------------------------------------------------------------------ FUND SUMMARY INVESTMENT GOAL: Long-term capital appreciation SHARE PRICE VOLATILITY: High PRINCIPAL INVESTMENT Utilizing multiple specialist STRATEGY: sub-advisers that manage in a growth style, the Fund invests in common stocks of smaller U.S. companies
-------------------------------------------------------------------------------- INVESTMENT STRATEGY Under normal circumstances, the SEI VP Small Cap Growth Fund will invest at least 80% of its net assets in equity securities of small companies. The Fund will invest primarily in common stocks of U.S. companies with market capitalizations of less than $2 billion. The Fund uses a multi-manager approach, relying upon a number of Sub-Advisers to manage portions of the Fund's portfolio under the general supervision of SIMC. Each Sub-Adviser, in managing its portion of the Fund's assets, selects stocks it believes have significant growth potential in light of such characteristics as revenue and earnings growth and positive earnings surprises. The Fund's portfolio is diversified as to issuers and industries. WHAT ARE THE RISKS OF INVESTING IN THE FUND? Since it purchases equity securities, the Fund is subject to the risk that stock prices will fall over short or extended periods of time. Historically, the equity markets have moved in cycles, and the value of the Fund's securities may fluctuate drastically from day to day. Individual companies may report poor results or be negatively affected by industry and/or economic trends and developments. The prices of securities issued by such companies may suffer a decline in response. These factors contribute to price volatility, which is the principal risk of investing in the Fund. The Fund is also subject to the risk that small capitalization growth stocks may underperform other segments of the equity markets or the equity markets as a whole. The smaller capitalization companies that the Fund invests in may be more vulnerable to adverse business or economic events than larger, more established companies. In particular, these small companies may have limited product lines, markets and financial resources, and may depend upon a relatively small management group. Therefore, small cap stocks may be more volatile than those of larger companies. These securities may be traded over the counter or listed on an exchange. 12 SEI INVESTMENTS / PROSPECTUS PERFORMANCE INFORMATION The bar chart and the performance table below illustrate the risks and volatility of an investment in the Fund. Of course, the Fund's past performance does not necessarily indicate how the Fund will perform in the future. This bar chart shows the performance of the Fund's Class A Shares for one year. The performance information shown is based on a full calendar year. EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC 2001 -21.91%
BEST QUARTER: 17.68% (12/31/01) WORST QUARTER: -28.92% (09/30/01) This table compares the Fund's average annual total returns for Class A Shares for the periods ended December 31, 2001 to those of the Frank Russell 2000 Growth Index.
SINCE CLASS A SHARES 1 YEAR INCEPTION* ------------------------------------------------------------- SEI VP Small Cap Growth Fund -21.91% -15.14% ------------------------------------------------------------- Frank Russell 2000 Growth Index** -9.23% -18.12% -------------------------------------------------------------
* The Fund's inception date is April 5, 2000. The Index inception date is April 30, 2000. ** An index measures the market prices of a specific group of securities in a particular market or securities in a market sector. You cannot invest directly in an index. Unlike a mutual fund, an index does not have an investment adviser and does not pay any commissions or expenses. If an index had expenses, its performance would be lower. The Frank Russell 2000 Growth Index is a widely recognized, capitalization-weighted (companies with larger market capitalizations have more influence than those with smaller market capitalizations) index that consists of a subset of the 2000 smallest U.S. companies out of the 3000 largest U.S. companies with higher growth rates and price-to-book ratios. SEI INVESTMENTS / PROSPECTUS 13 FUND FEES AND EXPENSES This table describes the fees and expenses that you may pay if you buy and hold Fund shares. ANNUAL FUND OPERATING EXPENSES
(EXPENSES DEDUCTED FROM FUND ASSETS) ---------------------------------------------------------- Investment Advisory Fees 0.65% ---------------------------------------------------------- Distribution (12b-1) Fees None ---------------------------------------------------------- Other Expenses 0.81% ---------------------------------------------------------- ---------------------------------------------------------- Total Annual Fund Operating Expenses 1.46%* ----------------------------------------------------------
* The Fund's total actual annual fund operating expenses for the most recent fiscal year were less than the amount shown above because the Adviser and Administrator are each waiving a portion of the fees in order to keep total operating expenses at a specified level. The Adviser and/or Administrator may discontinue all or part of their waivers at any time. With these fee waivers, the Fund's actual total operating expenses are as follows: SEI VP Small Cap Growth Fund -- Class A Shares 1.10% ---------------------------------------------------------
For more information about these fees, see "Investment Adviser and Sub-Advisers" and "Distribution of Fund Shares." The amount set forth above does not reflect the fees and expenses of the insurance contract that are charged by your insurance company. EXAMPLE This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and that you sell your shares at the end of the period. The Example also assumes that each year your investment has a 5% return, Fund operating expenses remain the same, and you reinvest all dividends and distributions. Although your actual costs and returns might be different, your approximate costs of investing $10,000 in the Fund would be:
1 YEAR 3 YEARS 5 YEARS 10 YEARS ------------------------------------------------------------------ SEI VP Small Cap Growth Fund -- Class A Shares $ 149 $ 462 $ 797 $ 1,746 ------------------------------------------------------------------
14 SEI INVESTMENTS / PROSPECTUS SEI VP INTERNATIONAL EQUITY FUND ------------------------------------------------------------------------------ FUND SUMMARY INVESTMENT GOAL: Capital appreciation SHARE PRICE VOLATILITY: Medium to high PRINCIPAL INVESTMENT Utilizing multiple specialist STRATEGY: sub-advisers, the Fund invests in equity securities of foreign companies
-------------------------------------------------------------------------------- INVESTMENT STRATEGY Under normal circumstances, the SEI VP International Equity Fund will invest at least 80% of its net assets in equity securities. The Fund will invest primarily in common stocks and other equity securities of issuers located outside the United States. The Fund primarily invests in companies located in developed countries, but may also invest in companies located in emerging markets. The Fund uses a multi-manager approach, relying upon a number of Sub-Advisers to manage portions of the Fund's portfolio under the general supervision of SIMC. WHAT ARE THE RISKS OF INVESTING IN THE FUND? Since it purchases equity securities, the Fund is subject to the risk that stock prices will fall over short or extended periods of time. Historically, the equity markets have moved in cycles, and the value of the Fund's securities may fluctuate drastically from day to day. Individual companies may report poor results or be negatively affected by industry and/or economic trends and developments. The prices of securities issued by such companies may suffer a decline in response. In the case of foreign stocks, these fluctuations will reflect international economic and political events, as well as changes in currency valuations relative to the U.S. dollar. These factors contribute to price volatility, which is the principal risk of investing in the Fund. Investing in issuers located in foreign countries poses distinct risks since political and economic events unique to a country or region will affect those markets and their issuers. These events will not necessarily affect the U.S. economy or similar issuers located in the United States. In addition, investments in foreign countries are generally denominated in a foreign currency. As a result, changes in the value of those currencies compared to the U.S. dollar may affect (positively or negatively) the value of a Fund's investments. These currency movements may happen separately from and in response to events that do not otherwise affect the value of the security in the issuer's home country. These various risks will be even greater for investments in emerging market countries. Emerging market countries are countries that the World Bank or the United Nations considers to be emerging or developing. Emerging markets may be more likely to experience political turmoil or rapid changes in market or economic conditions than more developed countries. Emerging market countries often have less uniformity in accounting and reporting requirements and less reliable securities valuations. It is sometimes difficult to obtain and enforce court judgments in such countries and there is often a greater potential for nationalization and/or expropriation of assets by the government of an emerging market country. In addition, the financial stability of issuers (including governments) in emerging markets countries may be more precarious than in other countries. As a result, there will tend to be an increased risk of price volatility associated with the Fund's investments in emerging market countries, which may be magnified by currency fluctuations relative to the U.S. dollar. The Fund is also subject to the risk that developed international equity securities may underperform other segments of the equity markets or the equity markets as a whole. SEI INVESTMENTS / PROSPECTUS 15 PERFORMANCE INFORMATION The bar chart and the performance table below illustrate the risks and volatility of an investment in the Fund. Of course, the Fund's past performance does not necessarily indicate how the Fund will perform in the future. This bar chart shows the performance of the Fund's Class A Shares for one year. The performance information shown is based on a full calendar year. EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC 2001 -24.05%
BEST QUARTER: 10.18% (12/31/01) WORST QUARTER: -18.21% (09/30/01) This table compares the Fund's average annual total returns for Class A Shares for the periods ended December 31, 2001 to those of the MSCI EAFE Index.
SINCE CLASS A SHARES 1 YEAR INCEPTION* ------------------------------------------------------------- SEI VP International Equity Fund -24.05% -24.73% ------------------------------------------------------------- MSCI EAFE Index** -21.44% -18.41% -------------------------------------------------------------
* The Fund's inception date is April 5, 2000. The Index inception date is April 30, 2000. ** An index measures the market prices of a specific group of securities in a particular market or securities in a market sector. You cannot invest directly in an index. Unlike a mutual fund, an index does not have an investment adviser and does not pay any commissions or expenses. If an index had expenses, its performance would be lower. The MSCI EAFE Index is a widely-recognized, capitalization-weighted (companies with larger market capitalizations have more influence than those with smaller capitalizations) index of over 900 securities listed on the stock exchange in Europe, Australia and the Far East. 16 SEI INVESTMENTS / PROSPECTUS FUND FEES AND EXPENSES This table describes the fees and expenses that you may pay if you buy and hold Fund shares. ANNUAL FUND OPERATING EXPENSES
(EXPENSES DEDUCTED FROM FUND ASSETS) ---------------------------------------------------------- Investment Advisory Fees 0.51% ---------------------------------------------------------- Distribution (12b-1) Fees None ---------------------------------------------------------- Other Expenses 1.53% ---------------------------------------------------------- ---------------------------------------------------------- Total Annual Fund Operating Expenses 2.04%* ----------------------------------------------------------
* The Fund's total actual annual fund operating expenses for the most recent fiscal year were less than the amount shown above because the Adviser and Administrator are each waiving a portion of the fees in order to keep total operating expenses at a specified level. The Adviser and/or Administrator may discontinue all or part of their waivers at any time. With these fee waivers, the Fund's actual total operating expenses are as follows: SEI VP International Equity Fund -- Class A Shares 1.28% ---------------------------------------------------------
For more information about these fees, see "Investment Adviser and Sub-Advisers" and "Distribution of Fund Shares." The amount set forth above does not reflect the fees and expenses of the insurance contract that are charged by your insurance company. EXAMPLE This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and that you sell your shares at the end of the period. The Example also assumes that each year your investment has a 5% return, Fund operating expenses remain the same, and you reinvest all dividends and distributions. Although your actual costs and returns might be different, your approximate costs of investing $10,000 in the Fund would be:
1 YEAR 3 YEARS 5 YEARS 10 YEARS ------------------------------------------------------------------ SEI VP International Equity Fund -- Class A Shares $ 207 $ 640 $ 1,098 $ 2,369 ------------------------------------------------------------------
SEI INVESTMENTS / PROSPECTUS 17 SEI VP EMERGING MARKETS EQUITY FUND ------------------------------------------------------------------------------ FUND SUMMARY INVESTMENT GOAL: Capital appreciation SHARE PRICE VOLATILITY: Very high PRINCIPAL INVESTMENT Utilizing multiple specialist STRATEGY: sub-advisers, the Fund invests in equity securities of emerging markets companies
-------------------------------------------------------------------------------- INVESTMENT STRATEGY Under normal circumstances, the SEI VP Emerging Markets Equity Fund will invest at least 80% of its net assets in equity securities of emerging markets issuers. The Fund will invest primarily in common stocks and other equity securities of foreign companies located in emerging market countries. The Fund uses a multi-manager approach, relying upon one or more Sub-Advisers to manage portions of the Fund's portfolio under the general supervision of SIMC. The Fund's portfolio is diversified as to issuers, market capitalization, industry and country. WHAT ARE THE RISKS OF INVESTING IN THE FUND? Since it purchases equity securities, the Fund is subject to the risk that stock prices will fall over short or extended periods of time. Historically, the equity markets have moved in cycles, and the value of the Fund's securities may fluctuate drastically from day to day. Individual companies may report poor results or be negatively affected by industry and/or economic trends and developments. The prices of securities issued by such companies may suffer a decline in response. In the case of foreign stocks, these fluctuations will reflect international economic and political events, as well as changes in currency valuations relative to the U.S. dollar. These factors contribute to price volatility, which is the principal risk of investing in the Fund. Investing in issuers located in foreign countries poses distinct risks since political and economic events unique to a country or region will affect those markets and their issuers. These events will not necessarily affect the U.S. economy or similar issuers located in the United States. In addition, investments in foreign countries are generally denominated in a foreign currency. As a result, changes in the value of those currencies compared to the U.S. dollar may affect (positively or negatively) the value of a Fund's investments. These currency movements may happen separately from and in response to events that do not otherwise affect the value of the security in the issuer's home country. These various risks will be even greater for investments in emerging market countries. Emerging market countries are countries that the World Bank or the United Nations considers to be emerging or developing. Emerging markets may be more likely to experience political turmoil or rapid changes in market or economic conditions than more developed countries. Emerging market countries often have less uniformity in accounting and reporting requirements and less reliable securities valuations. It is sometimes difficult to obtain and enforce court judgments in such countries and there is often a greater potential for nationalization and/or expropriation of assets by the government of an emerging market country. In addition, the financial stability of issuers (including governments) in emerging markets countries may be more precarious than in other countries. As a result, there will tend to be an increased risk of price volatility associated with the Fund's investments in emerging market countries, which may be magnified by currency fluctuations relative to the U.S. dollar. The Fund is also subject to the risk that emerging market equity securities may underperform other segments of the equity markets or the equity markets as a whole. 18 SEI INVESTMENTS / PROSPECTUS PERFORMANCE INFORMATION The bar chart and the performance table below illustrate the risks and volatility of an investment in the Fund. Of course, the Fund's past performance does not necessarily indicate how the Fund will perform in the future. This bar chart shows the performance of the Fund's Class A Shares for one year. The performance information shown is based on a full calendar year. EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC 2001 -11.08%
BEST QUARTER: 25.62% (12/31/01) WORST QUARTER: -24.23% (09/30/01) This table compares the Fund's average annual total returns for Class A Shares for the periods ended December 31, 2001 to those of the MSCI Emerging Markets Free Index.
SINCE CLASS A SHARES 1 YEAR INCEPTION* ------------------------------------------------------------- SEI VP Emerging Markets Equity Fund -11.08% -28.84% ------------------------------------------------------------- MSCI Emerging Markets Free Index** 1.34% -15.23% -------------------------------------------------------------
* The Fund's inception date is April 5, 2000. The Index inception date is April 30, 2000. ** An index measures the market prices of a specific group of securities in a particular market or securities in a market sector. You cannot invest directly in an index. Unlike a mutual fund, an index does not have an investment adviser and does not pay any commissions or expenses. If an index had expenses, its performance would be lower. The MSCI Emerging Markets Free Index is a widely-recognized, capitalization-weighted (companies with larger market capitalizations have more influence than those with smaller capitalizations) index of over 800 stocks from approximately 17 emerging market countries. SEI INVESTMENTS / PROSPECTUS 19 FUND FEES AND EXPENSES This table describes the fees and expenses that you may pay if you buy and hold Fund shares. ANNUAL FUND OPERATING EXPENSES
(EXPENSES DEDUCTED FROM FUND ASSETS) ---------------------------------------------------------- Investment Advisory Fees 1.05% ---------------------------------------------------------- Distribution (12b-1) Fees None ---------------------------------------------------------- Other Expenses 2.65% ---------------------------------------------------------- ---------------------------------------------------------- Total Annual Fund Operating Expenses 3.70%* ----------------------------------------------------------
* The Fund's total actual annual fund operating expenses for the most recent fiscal year were less than the amount shown above because the Adviser and Administrator are each waiving a portion of the fees in order to keep total operating expenses at a specified level. The Adviser and/or Administrator may discontinue all or part of their waivers at any time. With these fee waivers, the Fund's actual total operating expenses are as follows: SEI VP Emerging Markets Equity Fund -- Class A Shares 1.95% ---------------------------------------------------------
For more information about these fees, see "Investment Adviser and Sub-Advisers" and "Distribution of Fund Shares." The amount set forth above does not reflect the fees and expenses of the insurance contract that are charged by your insurance company. EXAMPLE This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and that you sell your shares at the end of the period. The Example also assumes that each year your investment has a 5% return, Fund operating expenses remain the same, and you reinvest all dividends and distributions. Although your actual costs and returns might be different, your approximate costs of investing $10,000 in the Fund would be:
1 YEAR 3 YEARS 5 YEARS 10 YEARS ------------------------------------------------------------------ SEI VP Emerging Markets Equity Fund -- Class A Shares $ 372 $1,132 $1,911 $ 3,950 ------------------------------------------------------------------
20 SEI INVESTMENTS / PROSPECTUS SEI VP CORE FIXED INCOME FUND ------------------------------------------------------------------------------ FUND SUMMARY INVESTMENT GOAL: Current income and preservation of capital SHARE PRICE VOLATILITY: Medium PRINCIPAL INVESTMENT Utilizing multiple specialist STRATEGY: sub-advisers that have fixed income investment expertise, the Fund invests in investment grade U.S. fixed income securities
-------------------------------------------------------------------------------- INVESTMENT STRATEGY Under normal circumstances, the SEI VP Core Fixed Income Fund will invest at least 80% of its net assets in fixed income securities. The Fund will invest primarily in investment grade U.S. corporate and government fixed income securities, including mortgage-backed securities. The Fund uses a multi-manager approach, relying upon one or more Sub-Advisers to manage portions of the Fund's portfolio under the general supervision of SIMC. Sub-Advisers are selected for their expertise in managing various kinds of fixed income securities, and each Sub-Adviser makes investment decisions based on an analysis of yield trends, credit ratings and other factors in accordance with its particular discipline. While each Sub-Adviser chooses securities of different types and maturities, the Fund in the aggregate generally will have a dollar-weighted average duration that is consistent with that of the broad U.S. fixed income market (currently 4.9 years). WHAT ARE THE RISKS OF INVESTING IN THE FUND? The prices of the Fund's fixed income securities respond to economic developments, particularly interest rate changes, as well as to perceptions about the creditworthiness of individual issuers, including governments and their agencies. Generally, the Fund's fixed income securities will decrease in value if interest rates rise and vice versa, and the volatility of lower-rated securities is even greater than that of higher-rated securities. Also, longer-term securities are generally more volatile, so the average maturity or duration of these securities affects risk. Although the Fund's U.S. government securities are considered to be among the safest investments, they are not guaranteed against price movements due to changing interest rates. Obligations issued by some U.S. government agencies are backed by the U.S. Treasury, while others are backed solely by the ability of the agency to borrow from the U.S. Treasury or by the agency's own resources. Mortgage-backed securities are fixed income securities representing an interest in a pool of underlying mortgage loans. Mortgage-backed securities are sensitive to changes in interest rates, but may respond to these changes differently from other fixed income securities due to the possibility of prepayment of the underlying mortgage loans. As a result, it may not be possible to determine in advance the actual maturity date or average life of a mortgage-backed security. Rising interest rates tend to discourage refinancings, with the result that the average life and volatility of the security will increase, exacerbating its decrease in market price. When interest rates fall, however, mortgage-backed securities may not gain as much in market value because of the expectation of additional mortgage prepayments, that must be reinvested at lower interest rates. Prepayment risk may make it difficult to calculate the average maturity of the Fund's mortgage-backed securities and, therefore, to assess the volatility risk of the Fund. The privately issued mortgage-backed securities that the Fund invests in are not issued or guaranteed by the U.S. government or its agencies or instrumentalities and may bear a greater risk of nonpayment than securities that are backed by the U.S. Treasury. However, the timely payment of principal and interest normally is supported, at least partially, by various credit enhancements by banks and other financial institutions. There can be no assurance, however, that such credit enhancements will support full payment of the principal and interest on such obligations. In addition, changes in the credit quality of the entity that provides credit enhancement could cause losses to the Fund and affect its share price. The Fund is also subject to the risk that U.S. fixed income securities may underperform other segments of the fixed income markets or the fixed income markets as a whole. SEI INVESTMENTS / PROSPECTUS 21 PERFORMANCE INFORMATION The bar chart and the performance table below illustrate the risks and volatility of an investment in the Fund. Of course, the Fund's past performance does not necessarily indicate how the Fund will perform in the future. This bar chart shows the performance of the Fund's Class A Shares for one year. The performance information shown is based on a full calendar year. EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC 2001 7.69%
BEST QUARTER: 4.33% (09/30/01) WORST QUARTER: -0.18% (12/31/01) This table compares the Fund's average annual total returns for Class A Shares for the periods ended December 31, 2001 to those of the Lehman Brothers Aggregate Bond Index.
SINCE CLASS A SHARES 1 YEAR INCEPTION* ------------------------------------------------------------ SEI VP Core Fixed Income Fund 7.69% 9.27% ------------------------------------------------------------ Lehman Brothers Aggregate Bond Index** 8.42% 10.87% ------------------------------------------------------------
* The Fund's inception date is April 5, 2000. The Index inception date is April 30, 2000. ** An index measures the market prices of a specific group of securities in a particular market or securities in a market sector. You cannot invest directly in an index. Unlike a mutual fund, an index does not have an investment adviser and does not pay any commissions or expenses. If an index had expenses, its performance would be lower. The Lehman Brothers Aggregate Bond Index is a widely-recognized, market-weighted (higher market value bonds have more influence than lower market value bonds) index of U.S. government obligations, corporate debt securities and AAA rated mortgage-backed securities. All securities are rated investment grade (BBB) or higher, with maturities of at least 1 year. 22 SEI INVESTMENTS / PROSPECTUS FUND FEES AND EXPENSES This table describes the fees and expenses that you may pay if you buy and hold Fund shares. ANNUAL FUND OPERATING EXPENSES
(EXPENSES DEDUCTED FROM FUND ASSETS) ---------------------------------------------------------- Investment Advisory Fees 0.28% ---------------------------------------------------------- Distribution (12b-1) Fees None ---------------------------------------------------------- Other Expenses 0.72% ---------------------------------------------------------- ---------------------------------------------------------- Total Annual Fund Operating Expenses 1.00%* ----------------------------------------------------------
* The Fund's total actual annual fund operating expenses for the most recent fiscal year were less than the amount shown above because the Adviser and Administrator are each waiving a portion of the fees in order to keep total operating expenses at a specified level. The Adviser and/or Administrator may discontinue all or part of their waivers at any time. With these fee waivers, the Fund's actual total operating expenses are as follows: SEI VP Core Fixed Income Fund -- Class A Shares 0.60% ---------------------------------------------------------
For more information about these fees, see "Investment Adviser and Sub-Advisers" and "Distribution of Fund Shares." The amount set forth above does not reflect the fees and expenses of the insurance contract that are charged by your insurance company. EXAMPLE This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and that you sell your shares at the end of the period. The Example also assumes that each year your investment has a 5% return, Fund operating expenses remain the same, and you reinvest all dividends and distributions. Although your actual costs and returns might be different, your approximate costs of investing $10,000 in the Fund would be:
1 YEAR 3 YEARS 5 YEARS 10 YEARS ------------------------------------------------------------------ SEI VP Core Fixed Income Fund -- Class A Shares $ 102 $ 318 $ 552 $ 1,225 ------------------------------------------------------------------
SEI INVESTMENTS / PROSPECTUS 23 SEI VP HIGH YIELD BOND FUND ------------------------------------------------------------------------------ FUND SUMMARY INVESTMENT GOAL: Total return SHARE PRICE VOLATILITY: High PRINCIPAL INVESTMENT Utilizing multiple specialist STRATEGY: sub-advisers that have high yield investment expertise, the Fund invests in high yield, high risk securities
-------------------------------------------------------------------------------- INVESTMENT STRATEGY Under normal circumstances, the SEI VP High Yield Bond Fund will invest at least 80% of its net assets in high yield fixed income securities. The Fund will invest primarily in fixed income securities rated below investment grade ("junk bonds"), including corporate bonds and debentures, convertible and preferred securities, and zero coupon obligations. The Fund uses a multi-manager approach, relying upon one or more Sub-Advisers to manage portions of the Fund's portfolio under the general supervision of SIMC. In managing the Fund's assets, the Sub-Advisers select securities that offer a high current yield as well as total return potential. The Fund's securities are diversified as to issuers and industries. The Fund's average weighted maturity may vary, and will generally not exceed ten years. There is no limit on the maturity or on the credit quality of any security. WHAT ARE THE RISKS OF INVESTING IN THE FUND? The prices of the Fund's fixed income securities respond to economic developments, particularly interest rate changes, as well as to perceptions about the creditworthiness of individual issuers, including governments and their agencies. Generally, the Fund's fixed income securities will decrease in value if interest rates rise and vice versa, and the volatility of lower-rated securities is even greater than that of higher-rated securities. Also, longer-term securities are generally more volatile, so the average maturity or duration of these securities affects risk. Junk bonds involve greater risks of default or downgrade and are more volatile than investment grade securities. Junk bonds involve a greater risk of price declines than investment grade securities due to actual or perceived changes in an issuer's creditworthiness. In addition, issuers of junk bonds may be more susceptible than other issuers to economic downturns. Junk bonds are subject to the risk that the issuer may not be able to pay interest or dividends and ultimately to repay principal upon maturity. Discontinuation of these payments could substantially adversely affect the market value of the security. The Fund is also subject to the risk that high yield securities may underperform other segments of the fixed income markets or the fixed income markets as a whole. 24 SEI INVESTMENTS / PROSPECTUS PERFORMANCE INFORMATION The bar chart and the performance table below illustrate the risks and volatility of an investment in the Fund. Of course, the Fund's past performance does not necessarily indicate how the Fund will perform in the future. This bar chart shows the performance of the Fund's Class A Shares for one year. The performance information shown is based on a full calendar year. EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC 2001 4.00%
BEST QUARTER: 4.70% (03/31/01) WORST QUARTER: -3.27% (09/30/01) This table compares the Fund's average annual total returns for Class A Shares for the periods ended December 31, 2001 to those of the CS First Boston High Yield Index.
SINCE CLASS A SHARES 1 YEAR INCEPTION* ------------------------------------------------------------ SEI VP High Yield Bond Fund 4.00% 1.39% ------------------------------------------------------------ CS First Boston High Yield Index** 5.80% 1.04% ------------------------------------------------------------
* The Fund's inception date is April 5, 2000. The Index inception date is April 30, 2000. ** An index measures the market prices of a specific group of securities in a particular market or securities in a market sector. You cannot invest directly in an index. Unlike a mutual fund, an index does not have an investment adviser and does not pay any commissions or expenses. If an index had expenses, its performance would be lower. The CS First Boston High Yield Index is an unmanaged, trader-priced portfolio constructed to mirror the public high yield debt market. Revisions to the Index are effected weekly. The Index reflects the reinvestment of dividends. SEI INVESTMENTS / PROSPECTUS 25 FUND FEES AND EXPENSES This table describes the fees and expenses that you may pay if you buy and hold Fund shares. ANNUAL FUND OPERATING EXPENSES
(EXPENSES DEDUCTED FROM FUND ASSETS) ---------------------------------------------------------- Investment Advisory Fees 0.49% ---------------------------------------------------------- Distribution (12b-1) Fees None ---------------------------------------------------------- Other Expenses 0.82% ---------------------------------------------------------- ---------------------------------------------------------- Total Annual Fund Operating Expenses 1.31%* ----------------------------------------------------------
* The Fund's total actual annual fund operating expenses for the most recent fiscal year were less than the amount shown above because the Adviser and Administrator are each waiving a portion of the fees in order to keep total operating expenses at a specified level. The Adviser and/or Administrator may discontinue all or part of their waivers at any time. With these fee waivers, the Fund's actual total operating expenses are as follows: SEI VP High Yield Bond Fund -- Class A Shares 0.85% ---------------------------------------------------------
For more information about these fees, see "Investment Adviser and Sub-Advisers" and "Distribution of Fund Shares." The amount set forth above does not reflect the fees and expenses of the insurance contract that are charged by your insurance company. EXAMPLE This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and that you sell your shares at the end of the period. The Example also assumes that each year your investment has a 5% return, Fund operating expenses remain the same, and you reinvest all dividends and distributions. Although your actual costs and returns might be different, your approximate costs of investing $10,000 in the Fund would be:
1 YEAR 3 YEARS 5 YEARS 10 YEARS ------------------------------------------------------------------ SEI VP High Yield Bond Fund -- Class A Shares $ 133 $ 415 $ 718 $ 1,579 ------------------------------------------------------------------
26 SEI INVESTMENTS / PROSPECTUS SEI VP INTERNATIONAL FIXED INCOME FUND ------------------------------------------------------------------------------ FUND SUMMARY INVESTMENT GOAL: Capital appreciation and current income SHARE PRICE VOLATILITY: High PRINCIPAL INVESTMENT Utilizing a specialist sub-adviser, the STRATEGY: Fund invests in investment grade fixed income securities of foreign government and corporate issuers
-------------------------------------------------------------------------------- INVESTMENT STRATEGY Under normal circumstances, the SEI VP International Fixed Income Fund will invest at least 80% of its net assets in fixed income securities. The Fund will invest primarily in foreign government, corporate, and mortgage-backed securities. In selecting investments for the Fund, the Sub-Adviser chooses investment grade securities issued by corporations and governments located in various developed foreign countries, looking for opportunities for capital appreciation and gain, as well as current income. The Fund's portfolio is not hedged against currency fluctuations relative to the U.S. dollar. There are no restrictions on the Fund's average portfolio maturity or on the maturity of any specific security. WHAT ARE THE RISKS OF INVESTING IN THE FUND? The prices of the Fund's fixed income securities respond to economic developments, particularly interest rate changes, as well as to perceptions about the creditworthiness of individual issuers, including governments and their agencies. Generally, the Fund's fixed income securities will decrease in value if interest rates rise and vice versa, and the volatility of lower-rated securities is even greater than that of higher-rated securities. Also, longer-term securities are generally more volatile, so the average maturity or duration of these securities affects risk. In the case of foreign securities, price fluctuations will reflect international economic and political events, as well as changes in currency valuations relative to the U.S. dollar. Investing in issuers located in foreign countries poses distinct risks since political and economic events unique to a country or region will affect those markets and their issuers. These events will not necessarily affect the U.S. economy or similar issuers located in the United States. In addition, investments in foreign countries are generally denominated in a foreign currency. As a result, changes in the value of those currencies compared to the U.S. dollar may affect (positively or negatively) the value of a Fund's investments. These currency movements may happen separately from and in response to events that do not otherwise affect the value of the security in the issuer's home country. These various risks will be even greater for investments in emerging market countries since political turmoil and rapid changes in economic conditions are more likely to occur in these countries. The Fund is non-diversified, which means that it may invest in the securities of relatively few issuers. As a result, the Fund may be more susceptible to a single adverse economic or political occurrence affecting one or more of these issuers, and may experience increased volatility due to its investments in those securities. The Fund is also subject to the risk that developed international fixed income securities, may underperform other segments of the fixed income market or the fixed income markets as a whole. SEI INVESTMENTS / PROSPECTUS 27 PERFORMANCE INFORMATION The bar chart and the performance table below illustrate the risks and volatility of an investment in the Fund. Of course, the Fund's past performance does not necessarily indicate how the Fund will perform in the future. This bar chart shows the performance of the Fund's Class A Shares for one year. The performance information shown is based on a full calendar year. EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC 2001 -5.32%
BEST QUARTER: 6.70% (09/30/01) WORST QUARTER: -3.71% (03/31/01) This table compares the Fund's average annual total returns for Class A Shares for the periods ended December 31, 2001 to those of the Salomon WGBI Non-U.S. Index.
SINCE CLASS A SHARES 1 YEAR INCEPTION* ------------------------------------------------------------ SEI VP International Fixed Income Fund -5.32% -3.71% ------------------------------------------------------------ Salomon WGBI Non-U.S. Index** -3.55% -0.39% ------------------------------------------------------------
* The Fund's inception date is April 5, 2000. The Index inception date is April 30, 2000. ** An index measures the market prices of a specific group of securities in a particular market or securities in a market sector. You cannot invest directly in an index. Unlike a mutual fund, an index does not have an investment adviser and does not pay any commissions or expenses. If an index had expenses, its performance would be lower. The Salomon WGBI Non-U.S. Index is a widely recognized index of government bonds issued by approximately 12 foreign countries. The index targets institutionally traded bonds. 28 SEI INVESTMENTS / PROSPECTUS FUND FEES AND EXPENSES This table describes the fees and expenses that you may pay if you buy and hold Fund shares. ANNUAL FUND OPERATING EXPENSES
(EXPENSES DEDUCTED FROM FUND ASSETS) ---------------------------------------------------------- Investment Advisory Fees 0.30% ---------------------------------------------------------- Distribution (12b-1) Fees None ---------------------------------------------------------- Other Expenses 1.21% ---------------------------------------------------------- ---------------------------------------------------------- Total Annual Fund Operating Expenses 1.51%* ----------------------------------------------------------
* The Fund's total actual annual fund operating expenses for the most recent fiscal year were less than the amount shown above because the Administrator is waiving a portion of the fees in order to keep total operating expenses at a specified level. The Administrator may discontinue all or part of its waiver at any time. With this fee waiver, the Fund's actual total operating expenses are as follows: SEI VP International Fixed Income Fund -- Class A Shares 1.00% ---------------------------------------------------------
For more information about these fees, see "Investment Adviser and Sub-Advisers" and "Distribution of Fund Shares." The amount set forth above does not reflect the fees and expenses of the insurance contract that are charged by your insurance company. EXAMPLE This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and that you sell your shares at the end of the period. The Example also assumes that each year your investment has a 5% return, Fund operating expenses remain the same, and you reinvest all dividends and distributions. Although your actual costs and returns might be different, your approximate costs of investing $10,000 in the Fund would be:
1 YEAR 3 YEARS 5 YEARS 10 YEARS ------------------------------------------------------------------ SEI VP International Fixed Income Fund -- Class A Shares $ 154 $ 477 $ 824 $ 1,802 ------------------------------------------------------------------
SEI INVESTMENTS / PROSPECTUS 29 SEI VP EMERGING MARKETS DEBT FUND ------------------------------------------------------------------------------ FUND SUMMARY INVESTMENT GOAL: Total return SHARE PRICE VOLATILITY: High to very high PRINCIPAL INVESTMENT Utilizing a specialist sub-adviser, the STRATEGY: Fund invests in U.S. dollar denominated debt securities of emerging market issuers
-------------------------------------------------------------------------------- INVESTMENT STRATEGY Under normal circumstances, the SEI VP Emerging Markets Debt Fund will invest at least 80% of its net assets in fixed income securities of emerging markets issuers. The Fund will invest primarily in U.S. dollar denominated debt securities of government, government-related and corporate issuers in emerging markets countries, as well as entities organized to restructure the outstanding debt of such issuers. The Sub-Adviser will spread the Fund's holdings across a number of countries and industries to limit its exposure to a single emerging market economy. There are no restrictions on the Fund's average portfolio maturity, or on the maturity of any specific security. There is no minimum credit rating standard for the Fund's securities, and the Fund's securities will generally be in the lower or lowest rating categories (including those below investment grade, commonly referred to as "junk bonds"). WHAT ARE THE RISKS OF INVESTING IN THE FUND? The prices of the Fund's fixed income securities respond to economic developments, particularly interest rate changes, as well as to perceptions about the creditworthiness of individual issuers, including governments and their agencies. Generally, the Fund's fixed income securities will decrease in value if interest rates rise and vice versa, and the volatility of lower-rated securities is even greater than that of higher-rated securities. Also, longer-term securities are generally more volatile, so the average maturity or duration of these securities affects risk. Investing in issuers located in foreign countries poses distinct risks since political and economic events unique to a country or region will affect those markets and their issuers. These events will not necessarily affect the U.S. economy or similar issuers located in the United States. In addition, investments in foreign countries are generally denominated in a foreign currency. As a result, changes in the value of those currencies compared to the U.S. dollar may affect (positively or negatively) the value of a Fund's investments. These currency movements may happen separately from and in response to events that do not otherwise affect the value of the security in the issuer's home country. These various risks will be even greater for investments in emerging market countries. "Junk" bonds involve greater risks of default or downgrade and are more volatile than investment grade securities. Junk bonds involve greater risk of price declines than investment grade securities due to actual or perceived changes in an issuer's creditworthiness. In addition, issuers of junk bonds may be more susceptible than other issuers to economic downturns. Junk bonds are subject to the risk that the issuer may not be able to pay interest or dividends and ultimately to repay principal upon maturity. Discontinuation of these payments could substantially adversely affect the market value of the security. The volatility of junk bonds and certain foreign sovereign debt securities is even greater since the prospects for repayment of principal and interest of many of these securities is speculative. Some may even be in default. As an incentive to invest in these risky securities, they tend to offer higher returns. Emerging market countries are countries that the World Bank or the United Nations considers to be emerging or developing. Emerging markets may be more likely to experience political turmoil or rapid changes in market or economic conditions 30 SEI INVESTMENTS / PROSPECTUS than more developed countries. Emerging market countries often have less uniformity in accounting and reporting requirements and less reliable securities valuations. It is sometimes difficult to obtain and enforce court judgments in such countries and there is often a greater potential for nationalization and/or expropriation of assets by the government of an emerging market country. In addition, the financial stability of issuers (including governments) in emerging markets countries may be more precarious than in other countries. As a result, there will tend to be an increased risk of price volatility associated with the Fund's investments in emerging market countries, which may be magnified by currency fluctuations relative to the U.S. dollar. The foreign sovereign debt securities and "Brady Bonds" the Fund purchases involve specific risks, including the risk that: (i) the governmental entity that controls the repayment of sovereign debt may not be willing or able to repay the principal and/or interest when it becomes due, due to factors such as debt service burden, political constraints, cash flow problems and other national economic factors; (ii) governments may default on their sovereign debt, which may require holders of such sovereign debt to participate in debt rescheduling or additional lending to defaulting governments; and (iii) there may be no bankruptcy proceeding by which defaulted sovereign debt may be collected in whole or in part. The Fund is non-diversified, which means that it may invest in the securities of relatively few issuers. As a result, the Fund may be more susceptible to a single adverse economic or political occurrence affecting one or more of these issuers, and may experience increased volatility due to its investments in those securities. The Fund is also subject to the risk that emerging markets debt securities may underperform other segments of the fixed income market or the fixed income markets as a whole. SEI INVESTMENTS / PROSPECTUS 31 PERFORMANCE INFORMATION The bar chart and the performance table below illustrate the risks and volatility of an investment in the Fund. Of course, the Fund's past performance does not necessarily indicate how the Fund will perform in the future. This bar chart shows the performance of the Fund's Class A Shares for one year. The performance information shown is based on a full calendar year. EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC 2001 12.56%
BEST QUARTER: 8.44% (12/31/01) WORST QUARTER: -4.71% (09/30/01) This table compares the Fund's average annual total returns for Class A Shares for the periods ended December 31, 2001 to those of the J.P. Morgan EMBI Plus Index.
SINCE CLASS A SHARES 1 YEAR INCEPTION* ------------------------------------------------------------ SEI VP Emerging Markets Debt Fund 12.56% 11.04% ------------------------------------------------------------ J.P. Morgan EMBI Plus Index** -0.79% 5.14% ------------------------------------------------------------
* The Fund's inception date is April 5, 2000. The Index inception date is April 30, 2000. ** An index measures the market prices of a specific group of securities in a particular market or securities in a market sector. You cannot invest directly in an index. Unlike a mutual fund, an index does not have an investment adviser and does not pay any commissions or expenses. If an index had expenses, its performance would be lower. The J.P. Morgan EMBI Plus Index is a widely-recognized, market value-weighted (higher market value securities have more influence than lower market value securities) index of bonds issued by emerging markets countries. The index currently includes Eurobonds and Brady Bonds issued by Argentina, Brazil, Bulgaria, Mexico, Nigeria, the Philippines, Poland and Venezuela. 32 SEI INVESTMENTS / PROSPECTUS FUND FEES AND EXPENSES This table describes the fees and expenses that you may pay if you buy and hold Fund shares. ANNUAL FUND OPERATING EXPENSES
(EXPENSES DEDUCTED FROM FUND ASSETS) ---------------------------------------------------------- Investment Advisory Fees 0.85% ---------------------------------------------------------- Distribution (12b-1) Fees None ---------------------------------------------------------- Other Expenses 1.22% ---------------------------------------------------------- ---------------------------------------------------------- Total Annual Fund Operating Expenses 2.07%* ----------------------------------------------------------
* The Fund's total actual annual fund operating expenses for the most recent fiscal year were less than the amount shown above because the Adviser and Administrator are each waiving a portion of the fees in order to keep total operating expenses at a specified level. The Adviser and/or Administrator may discontinue all or part of their waivers at any time. With these fee waivers, the Fund's actual total operating expenses are as follows: SEI VP Emerging Markets Debt Fund -- Class A Shares 1.35% ---------------------------------------------------------
For more information about these fees, see "Investment Adviser and Sub-Advisers" and "Distribution of Fund Shares." The amount set forth above does not reflect the fees and expenses of the insurance contract that are charged by your insurance company. EXAMPLE This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and that you sell your shares at the end of the period. The Example also assumes that each year your investment has a 5% return, Fund operating expenses remain the same, and you reinvest all dividends and distributions. Although your actual costs and returns might be different, your approximate costs of investing $10,000 in the Fund would be:
1 YEAR 3 YEARS 5 YEARS 10 YEARS ------------------------------------------------------------------ SEI VP Emerging Markets Debt Fund -- Class A Shares $ 210 $ 649 $ 1,114 $ 2,400 ------------------------------------------------------------------
SEI INVESTMENTS / PROSPECTUS 33 MORE INFORMATION ABOUT FUND INVESTMENTS This prospectus describes the Funds' primary investment strategies. However, each Fund also may invest in other securities, use other strategies and engage in other investment practices. These investments and strategies, as well as those described in this prospectus, are described in detail in the Funds' Statement of Additional Information (SAI). The investments and strategies described in this prospectus are those that the Sub-Advisers use under normal conditions. During unusual economic or market conditions or for temporary defensive or liquidity purposes, each Fund may invest up to 100% of its assets in cash, money market instruments, repurchase agreements and other short-term obligations that would not ordinarily be consistent with the Funds' objectives. A Fund will do so only if SIMC or the Sub-Advisers believe that the risk of loss outweighs the opportunity for capital gains or higher income. Of course, there is no guarantee that any Fund will achieve its investment goal. INVESTMENT ADVISER AND SUB-ADVISERS SEI INVESTMENTS MANAGEMENT CORPORATION (SIMC) ACTS AS THE MANAGER OF MANAGERS OF THE FUNDS, AND IS RESPONSIBLE FOR THE INVESTMENT PERFORMANCE OF THE FUNDS SINCE IT ALLOCATES EACH FUND'S ASSETS TO ONE OR MORE SUB-ADVISERS AND RECOMMENDS HIRING OR CHANGING SUB-ADVISERS TO THE BOARD OF TRUSTEES. Each Sub-Adviser makes investment decisions for the assets it manages and continuously reviews, supervises and administers its investment program. SIMC oversees the Sub-Advisers to ensure compliance with the Funds' investment policies and guidelines, and monitors each Sub-Adviser's adherence to its investment style. The Board of Trustees supervises SIMC and the Sub-Advisers; establishes policies that they must follow in their management activities; and oversees the hiring and termination of Sub-Advisers recommended by SIMC. SIMC pays the Sub-Advisers out of the investment advisory fees it receives. SIMC, an SEC-registered adviser, located at One Freedom Valley Drive, Oaks, PA 19456, serves as the Adviser to the Funds. As of December 31, 2001, SIMC had approximately $50.2 billion in assets under management. For the fiscal year ended December 31, 2001, SIMC received investment advisory fees, after fee waivers, as a percentage of each Fund's average net assets, at the following annual rates: SEI VP Large Cap Value Fund 0.23% --------------------------------------------------------- SEI VP Large Cap Growth Fund 0.32% --------------------------------------------------------- SEI VP Small Cap Value Fund 0.61% --------------------------------------------------------- SEI VP Small Cap Growth Fund 0.62% --------------------------------------------------------- SEI VP International Equity Fund 0.47% --------------------------------------------------------- SEI VP Emerging Markets Equity Fund 0.73% --------------------------------------------------------- SEI VP Core Fixed Income Fund 0.20% --------------------------------------------------------- SEI VP High Yield Bond Fund 0.46% --------------------------------------------------------- SEI VP International Fixed Income Fund 0.30% --------------------------------------------------------- SEI VP Emerging Markets Debt Fund 0.53% ---------------------------------------------------------
34 SEI INVESTMENTS / PROSPECTUS SUB-ADVISERS AND PORTFOLIO MANAGERS Each of the Sub-Advisers listed below has been selected by SIMC and approved by the Board of Trustees to serve as a Sub-Adviser for the specified Fund. At any one point in time, however, a particular Sub-Adviser listed below may not have assets allocated to it. SEI VP LARGE CAP VALUE FUND: DEUTSCHE ASSET MANAGEMENT INC.: Deutsche Asset Management Inc. (DAMI), located at 280 Park Avenue, New York, New York 10017, serves as a Sub-Adviser to the SEI VP Large Cap Value Fund. James A. Creighton, Managing Director and Head of Global Index, serves as a portfolio manager of the portion of the SEI VP Large Cap Value Fund's assets allocated to DAMI. Prior to joining DAMI in 1999, Mr. Creighton was a Managing Director and Chief Investment Officer of Global Index Investments at Barclays Global Investors and prior to that division president of Barclays Global Investors Canada Limited. IRIDIAN ASSET MANAGEMENT LLC: Iridian Asset Management LLC (Iridian), located at 276 Post Road West, Westport, Connecticut 06880-4704, has been selected as a Sub-Adviser to the SEI VP Large Cap Value Fund. As of the date of this prospectus, no assets were allocated to Iridian. However, SIMC may allocate assets to Iridian at any time. David Cohen, Principal of Iridian, would serve as portfolio manager of the portion of the SEI VP Large Cap Value Fund's assets allocated to Iridian. Mr. Cohen is one of Iridian's founding partners, and has 21 years of investment experience. Additionally, since November 1995, Mr. Cohen has been a Portfolio Manager at Arnhold and S. Bleichroeder Advisers, Inc. with responsibility for First Eagle Fund of America, a separate series of First Eagle Trust, a registered investment company. LSV ASSET MANAGEMENT: LSV Asset Management (LSV), located at 200 West Madison Street, Chicago, Illinois 60606, serves as a Sub-Adviser to the SEI VP Large Cap Value Fund. Josef Lakonishok, Robert Vishny and Menno Vermeulen of LSV serve as portfolio managers of the portion of the SEI VP Large Cap Value Fund's assets allocated to LSV. They are all partners of LSV. An affiliate of SIMC owns an interest in LSV. SIMC pays LSV a fee, which is calculated and paid monthly, based on an annual rate of 0.20% of the average monthly market value of the assets of the Fund managed by LSV. SANFORD C. BERNSTEIN & CO., LLC.: Sanford C. Bernstein & Co., LLC (Bernstein), located at 1345 Avenue of the Americas, New York, New York 10105, has been selected as a Sub-Adviser to the SEI VP Large Cap Value Fund. As of the date of this prospectus, no assets were allocated to Bernstein. However, SIMC may allocate assets to Bernstein at any time. Lewis A. Sanders and Marilyn Goldstein Fedak would serve as portfolio managers of the portion of the SEI VP Large Cap Value Fund's assets allocated to Bernstein. Mr. Sanders is a Director of Bernstein since September 2000 and is Vice Chairman, Chief Investment Officer and a Director of Alliance Capital Management Corporation since October 2000. Mr. Sanders previously served as Chairman of the Board of Directors and Chief Executive Officer of Sanford C. Bernstein & Co., Inc. since 1993. Ms. Fedak, Executive Vice President and Chief Investment Officer-U.S. Value Equities of Alliance Capital Management Corporation since October 2000 and prior to that Chief Investment Officer and Chairman of the U.S. Equity Investment Policy Group at Sanford C. Bernstein Co., Inc. since 1993. SEI VP LARGE CAP GROWTH FUND: ALLIANCE CAPITAL MANAGEMENT L.P.: Alliance Capital Management L.P. (Alliance), located at 1345 Avenue of the Americas, New York, New York 10105, serves as a Sub-Adviser to the SEI VP Large Cap Growth Fund. A committee of investment professionals at Alliance manages the portion of the SEI VP Large Cap Growth Fund's assets allocated to Alliance. DUNCAN-HURST CAPITAL MANAGEMENT INC.: Duncan-Hurst Capital Management Inc. (Duncan-Hurst), located at 4365 Executive Drive, Suite 1520, San Diego, California 92121, has been selected as a Sub-Adviser to the SEI VP Large Cap Growth Fund. As of the date of this prospectus, no assets were allocated to Duncan-Hurst. However, SIMC may allocate assets to Duncan-Hurst at any time. David Magee would serve as portfolio manager of the portion of the SEI VP Large Cap Growth SEI INVESTMENTS / PROSPECTUS 35 Fund's assets allocated to Duncan-Hurst. Mr. Magee joined Duncan-Hurst in 1992 and is Vice President and Portfolio Manager. He has over 18 years of investment experience. MONTAG & CALDWELL INC.: Montag & Caldwell Inc. (Montag), located at 3455 Peachtree Road NE, Suite 1200, Atlanta, Georgia 30326-3248, has been selected as a Sub-Adviser to the SEI VP Large Cap Growth Fund. As of the date of this prospectus, no assets were allocated to Montag. However, SIMC may allocate assets to Montag at any time. William A. Vogel, Executive Vice President of Montag, would serve as portfolio manager of the portion of the SEI VP Large Cap Growth Fund's assets allocated to Montag. Mr. Vogel has been a portfolio manager at Montag for 14 years, and has 26 years of investment experience. PEREGRINE CAPITAL MANAGEMENT INC.: Peregrine Capital Management Inc. (Peregrine), located at 800 LaSalle Avenue, Minneapolis, Minnesota 55402-2018, serves as a Sub-Adviser to the SEI VP Large Cap Growth Fund. John Dale, Senior Vice President and Portfolio Manager, and Gary Nussbaum, Senior Vice President and Portfolio Manager, serve as portfolio managers of the portion of the SEI VP Large Cap Growth Fund's assets allocated to Peregrine. Mr. Dale joined Peregrine in 1987, and has 33 years of investment management experience. Mr. Nussbaum joined Peregrine in 1990, and has 13 years of investment management experience. TRANSAMERICA INVESTMENT MANAGEMENT, LLC: Transamerica Investment Management, LLC (TIM), located at 1150 S. Olive St., 27th Floor, Los Angeles, California 90015, has been selected as a Sub-Adviser to the SEI VP Large Cap Growth Fund. As of the date of this prospectus, no assets were allocated to TIM. However, SIMC may allocate assets to TIM at any time. Jeffrey Van Harte, CFA, Senior Vice President, Portfolio Manager and Head of Equities, and Gary Rolle, CFA, President and Chief Investment Officer, of TIM would serve as portfolio managers of the portion of the SEI VP Large Cap Growth Fund's assets allocated to TIM. Mr. Van Harte has been with TIM and its predecessor firm since 1980 and has over 15 years of investment management experience. Mr. Rolle has been with TIM and its predecessor firm since 1967 and has over 30 years of investment management experience. SEI VP SMALL CAP VALUE FUND: ARTISAN PARTNERS LIMITED PARTNERSHIP: Artisan Partners Limited Partnership (Artisan), located at 1000 N. Water Street, Suite 1770, Milwaukee, Wisconsin 53202, has been selected as a Sub-Adviser to the SEI VP Small Cap Value Fund. As of the date of this prospectus, no assets were allocated to Artisan. However, SIMC may allocate assets to Artisan at any time. Scott Satterwhite and James C. Kieffer, both Managing Directors of Artisan, would serve as portfolio managers of the portion of the SEI VP Small Cap Value Fund's assets allocated to Artisan. Prior to joining Artisan in 1997, Mr. Satterwhite was a portfolio manager at Wachovia Bank, N.A., and Mr. Kieffer was a research analyst at the investment firm McColl Partners. CHARTWELL INVESTMENT PARTNERS: Chartwell Investment Partners (Chartwell), located at 1235 Westlakes Drive, Suite 330, Berwyn, Pennsylvania 19312, has been selected as a Sub-Adviser to the SEI VP Small Cap Value Fund. As of the date of this prospectus, no assets were allocated to Chartwell. However, SIMC may allocate assets to Chartwell at any time. David C. Dalrymple, Managing Partner and Senior Portfolio Manager, and Babak Zenouzi, Partner and Senior Portfolio Manager, would serve as portfolio managers of the portion of the SEI VP Small Cap Value Fund's assets allocated to Chartwell. Mr. Dalrymple has been with Chartwell since 1997. Prior to joining Chartwell, Mr. Dalrymple was a portfolio manager with Delaware Investment Advisers from 1991-1997. Mr. Zenouzi joined the firm in November 1999 after seven years with Delaware Investment Advisers, where he served as a Portfolio Manager. Mr. Dalrymple and Mr. Zenouzi both have 16 years of investment experience. DAVID J. GREENE AND COMPANY, LLC: David J. Greene and Company, LLC (David J. Greene), located at 599 Lexington Avenue, 12th Floor, New York, New York 10022, has been selected as a Sub-Adviser to the SEI VP Small Cap Value Fund. As of the date of this prospectus, no assets were allocated to David J. Greene. However, SIMC may allocate assets to David J. Greene at any time. Michael C. Greene, Chief Executive Officer, and Benjamin H. Nahum, Vice President and 36 SEI INVESTMENTS / PROSPECTUS Research Analyst, of David J. Greene would serve as portfolio managers of the portion of the SEI VP Small Cap Value Fund's assets allocated to David J. Greene. Messrs. Greene and Nahum have been Principals of the firm for the past five years. LSV ASSET MANAGEMENT: LSV Asset Management (LSV), located at 200 West Madison Street, Chicago, Illinois 60606, serves as a Sub-Adviser to the SEI VP Small Cap Value Fund. Josef Lakonishok, Robert Vishny and Menno Vermeulen of LSV serve as portfolio managers of the portion of the SEI VP Small Cap Value Fund's assets allocated to LSV. They are all partners of LSV. An affiliate of SIMC owns an interest in LSV. SIMC pays LSV a fee, which is calculated and paid monthly, based on an annual rate of 0.50% of the average monthly market value of the assets of the Fund managed by LSV. SECURITY CAPITAL RESEARCH AND MANAGEMENT INCORPORATED: Security Capital Research and Management Incorporated (SC-R&M), located at 11 South LaSalle Street, 2nd Floor, Chicago, Illinois 60603, has been selected as a Sub-Adviser to the SEI VP Small Cap Value Fund. As of the date of this prospectus, no assets were allocated to SC-R&M. However, SIMC may allocate assets to SC-R&M at any time. Anthony R. Manno Jr., Kenneth D. Statz, and Kevin W. Bedell comprise the Portfolio Management Committee of SC-R&M. The Portfolio Management Committee would be responsible for determining the portfolio composition for the Fund's assets allocated to SC-R&M. The members of the Portfolio Management Committee have an average of 19 years of investment experience. STERLING CAPITAL MANAGEMENT: Sterling Capital Management (Sterling), located at One Wachovia Center, 301 College Street, Suite 3200, Charlotte, North Carolina 28202, serves as a Sub-Adviser to the SEI VP Small Cap Value Fund. Eduardo A. Brea, CFA, and Brian R. Walton, CFA, serve as portfolio managers of the portion of the SEI VP Small Cap Value Fund's assets allocated to Sterling. Mr. Brea and Mr. Walton both joined Sterling in 1995, and each is a Managing Director, Equity Portfolio Manager and Analyst. Mr. Brea and Mr. Walton each have over 11 years of investment experience. SEI VP SMALL CAP GROWTH FUND: MAZAMA CAPITAL MANAGEMENT, INC.: Mazama Capital Management, Inc. (Mazama), located at One Southwest Columbia Street, Suite 1860, Portland, Oregon 97258, has been selected as a Sub-Adviser to the SEI VP Small Cap Growth Fund. As of the date of this prospectus, no assets were allocated to Mazama. However, SIMC may allocate assets to Mazama at any time. Ron Sauer and Stephen Brink, CFA, of Mazama would serve as portfolio managers of the portion of the SEI VP Small Cap Growth Fund's assets allocated to Mazama. Prior to founding Mazama, Mr. Sauer served as President and Director of Research at Black & Company and Mr. Brink served as Chief Investment Officer for the Pacific Northwest office of U.S. Trust. Mr. Sauer and Mr. Brink have over 20 and 23 years of investment experience, respectively. MCKINLEY CAPITAL MANAGEMENT, INC.: McKinley Capital Management, Inc. (McKinley), located at 3301 C Street, Suite 500, Anchorage, Alaska 99503, has been selected as a Sub-Adviser to the SEI VP Small Cap Growth Fund. As of the date of this prospectus, no assets were allocated to McKinley. However, SIMC may allocate assets to McKinley at any time. Robert B. Gillam, Frederic H. Parke and Sheldon Lien would serve as portfolio managers of the portion of the SEI VP Small Cap Growth Fund's assets allocated to McKinley. Mr. Gillam has been the Chief Investment Officer at McKinley since the firm's inception in 1990, and has over 21 years investment experience. Prior to joining McKinley in 1997, Mr. Parke was a Trader and Portfolio Manager at TransGlobal Investments from 1995 to 1997. Mr. Parke has 20 years of investment experience. Mr. Lien has been with McKinley since 1995. NICHOLAS-APPLEGATE CAPITAL MANAGEMENT: Nicholas-Applegate Capital Management (Nicholas-Applegate), located at 600 West Broadway, Suite 2900, San Diego, California 92101, has been selected as a Sub-Adviser to the SEI VP Small Cap Growth Fund. As of the date of this prospectus, no assets were allocated to Nicholas-Applegate. However, SIMC may allocate assets to Nicholas-Applegate at any time. Catherine Nicholas serves as Chief Investment Officer of Nicholas- Applegate overseeing the firm's global equity management and trading strategies. Stacey R. Nutt, Ph.D. is the lead portfolio manager of the portfolio management team responsible for the day-to-day management of the portion of the SEI VP Small Cap Growth Fund's assets allocated to Nicholas-Applegate. Mr. Nutt has been a fund manager and investment team leader SEI INVESTMENTS / PROSPECTUS 37 since 1999. Prior to joining Nicholas-Applegate, he had six years of investment experience with Vestek Systems, Inc. and Virginia Tech and Georgia Institute of Technology. RS INVESTMENT MANAGEMENT, L.P.: RS Investment Management, L.P. (RSIM), located at 388 Market Street, San Francisco, California 94111, has been selected as a Sub-Adviser to the SEI VP Small Cap Growth Fund. As of the date of this prospectus, no assets were allocated to RSIM. However, SIMC may allocate assets to RSIM at any time. Jim Callinan of RSIM would serve as portfolio manager of the portion of the SEI VP Small Cap Growth Fund's assets allocated to RSIM. Mr. Callinan is a managing director of RSIM. He joined RSIM in June 1996 after nine years at Putnam Investments (Putnam) in Boston, where he served as a portfolio manager of the Putnam OTC Emerging Growth Fund. Mr. Callinan also served as a specialty growth research analyst and portfolio manager of both the Putnam Emerging Information Science Trust Fund and the Putnam Emerging Health Sciences Trust Fund while at Putnam. SAWGRASS ASSET MANAGEMENT, LLC: Sawgrass Asset Management, LLC (Sawgrass), located at 1579 The Greens Way, Suite 20, Jacksonville, Florida 32250, serves as a Sub-Adviser to the SEI VP Small Cap Growth Fund. Dean McQuiddy of Sawgrass serves as portfolio manager of the portion of the SEI VP Small Cap Growth Fund. Mr. McQuiddy, a founding Principal of Sawgrass, has 13 years of investment experience. Prior to joining Sawgrass, he was a portfolio manager at Barnett Capital Advisors. WALL STREET ASSOCIATES: Wall Street Associates (WSA), located at 1200 Prospect Street, Suite 100, La Jolla, California 92307, serves as a Sub-Adviser to the SEI VP Small Cap Growth Fund. William Jeffery III, Kenneth F. McCain and David Baratta of WSA serve as portfolio managers of the portion of the SEI VP Small Cap Growth Fund's assets allocated to WSA. Messrs. Jeffery and McCain are controlling principals of WSA. They each have over 28 years of investment management experience. Mr. Baratta joined WSA in 1999. Prior to joining WSA, Mr. Baratta was a portfolio manager of Morgan Grenfell, Inc. for 5 years. He has over 20 years of investment experience. WELLINGTON MANAGEMENT COMPANY, LLP: Wellington Management Company, LLP (Wellington Management), located at 75 State Street, Boston, Massachusetts 02109, has been selected as a Sub-Adviser to the SEI VP Small Cap Growth Fund. As of the date of this prospectus, no assets were allocated to Wellington Management. However, SIMC may allocate assets to Wellington Management at any time. Jamie A. Rome, CFA, Vice President and Equity Portfolio Manager of Wellington Management, would serve as portfolio manager of the portion of the SEI VP Small Cap Growth Fund's assets allocated to Wellington Management. Mr. Rome joined Wellington Management in 1994, and has 16 years of investment experience. SEI VP INTERNATIONAL EQUITY FUND: BLACKROCK INTERNATIONAL, LTD.: BlackRock International Ltd. (BlackRock International), located at 40 Torphichen Street, Edinburgh, EH3 8JB, Scotland, has been selected as a Sub-Adviser to the SEI VP International Equity Fund. As of the date of this prospectus, no assets were allocated to BlackRock International. However, SIMC may allocate assets to BlackRock International at any time. Albert B. Morillo, Managing Director and Senior Portfolio Manager, heads an investment committee at BlackRock International that would provide investment advice for the portion of the SEI VP International Equity Fund's assets allocated to BlackRock International. Prior to joining BlackRock International in January 2000, Mr. Morillo was the head of the European Team at Scottish Widows Investment Management. CAPITAL GUARDIAN TRUST COMPANY: Capital Guardian Trust Company (CGTC), located at 333 South Hope Street, 55th Floor, Los Angeles, California 90071, serves as a Sub-Adviser to the SEI VP International Equity Fund. A committee of investment professionals at CGTC manages the portion of the SEI VP International Equity Fund's assets allocated to CGTC and utilizes a multi-portfolio management system. MORGAN STANLEY INVESTMENT MANAGEMENT INC.: Morgan Stanley Investment Management Inc. (MSIM), located at 1221 Avenue of the Americas, New York, New York 10020, has been selected as a Sub-Adviser to the SEI VP International Equity 38 SEI INVESTMENTS / PROSPECTUS Fund. As of the date of this prospectus, no assets were allocated to MSIM. However, SIMC may allocate assets to MSIM at any time. A portion of the assets of the SEI VP International Equity Fund is managed by MSIM's International Equity Team. Current members of the team include Dominic Caldecott, Managing Director, Peter Wright, Managing Director, Willam Lock, Managing Director and Walter Ridderll, Vice President. OECHSLE INTERNATIONAL ADVISORS, LLC: Oechsle International Advisors, LLC (Oechsle), located at One International Place, 23rd Floor, Boston, Massachusetts 02110, serves as a Sub-Adviser to the SEI VP International Equity Fund. S. Dewey Keesler, Jr. and Kathleen Harris of Oechsle serve as portfolio managers of the portion of the SEI VP International Equity Fund's assets allocated to Oechsle. Mr. Keesler is a Managing Principal, Chief Investment Officer and Portfolio Manager/Research Analyst with responsibility for coordinating the firm's investment activities. He has over 20 years of investment experience. Ms. Harris joined Oechsle in January 1995 and is a Principal and Portfolio Manager/Research Analyst. SEI VP EMERGING MARKETS EQUITY FUND: THE BOSTON COMPANY ASSET MANAGEMENT, LLC: The Boston Company Asset Management, LLC (The Boston Company), located at One Boston Place, Boston, Massachusetts 02108, has been selected as a Sub-Adviser to the SEI VP Emerging Markets Equity Fund. As of the date of this prospectus, no assets were allocated to The Boston Company. However, SIMC may allocate assets to The Boston Company at any time. D. Kirk Henry, CFA, and Senior Vice President of The Boston Company, would serve as portfolio manager of the portion of the SEI VP Emerging Markets Equity Fund's assets allocated to The Boston Company. Since joining The Boston Company in 1994, Mr. Henry has had primary responsibility for the firm's Emerging Markets Equity product and co-responsibility for the International Equity strategies with Sandor Cseh. MORGAN STANLEY INVESTMENT MANAGEMENT INC.: Morgan Stanley Investment Management Inc. (MSIM), located at 1221 Avenue of the Americas, New York, New York 10020, has been selected as a Sub-Adviser to the SEI VP Emerging Markets Equity Fund. As of the date of this prospectus, no assets were allocated to MSIM. However, SIMC may allocate assets to MSIM at any time. A portion of the assets of the SEI VP Emerging Markets Equity Fund is managed by MSIM's Emerging Markets Equity Team. Current members of the team include Michael Perl, Executive Director, Ana Christina Piedrahita, Vice President and Narayan Ramachandran, Managing Director. SCHRODER INVESTMENT MANAGEMENT NORTH AMERICA INC.: Schroder Investment Management North America Inc. (Schroder), located at 875 Third Avenue, 22nd Floor, New York, New York 10022, serves as a Sub-Adviser to the SEI VP Emerging Markets Equity Fund. A team of investment professionals at Schroder manages the portion of the SEI VP Emerging Markets Equity Fund's assets allocated to Schroder. Giles Neville heads the Emerging Markets Committee at Schroder. Mr. Neville has over 13 years of investment experience. SG PACIFIC ASSET MANAGEMENT, INC. AND SGY ASSET MANAGEMENT (SINGAPORE) LTD.: SG Pacific Asset Management, Inc. (SG Pacific) and SGY Asset Management (Singapore) Ltd. (SGY), located at 560 Lexington Avenue, New York, New York 10022, have been selected as Sub-Advisers to the SEI VP Emerging Markets Equity Fund. As of the date of this prospectus, no assets were allocated to SG Pacific and SGY. However, SIMC may allocate assets to SG Pacific and SGY at any time. Marco Wong of SG Pacific and SGY would serve as portfolio manager of the portion of the SEI VP Emerging Markets Equity Fund's assets allocated to SG Pacific and SGY. Mr. Wong leads the management team for the assets of the Fund allocated to SG Pacific and SGY. Mr. Wong has been with SG Yamaichi, the parent of SGY and SG Pacific, since 1986. SEI VP CORE FIXED INCOME FUND: BLACKROCK FINANCIAL MANAGEMENT, INC.: BlackRock Financial Management, Inc. (BlackRock), located at 40 East 52nd Street, New York, New York 10022, has been selected as a Sub-Adviser to the SEI VP Core Fixed Income Fund. As of the date of this prospectus, no assets were allocated to BlackRock. However, SIMC may allocate assets to BlackRock at any time. Keith Anderson and Andrew Phillips of BlackRock would serve as portfolio managers of the portion of the SEI VP Core SEI INVESTMENTS / PROSPECTUS 39 Fixed Income Fund's assets allocated to BlackRock. Mr. Anderson is a Managing Director, Chief Investment Officer, Fixed Income and Co-Chair of the income securities group. Mr. Phillips is also a Managing Director and portfolio manager with primary responsibility for the management of the firm's investment activities in fixed-rate mortgage securities and has over 15 years of experience investing in fixed income securities. ROBERT W. BAIRD & CO., INCORPORATED: Robert W. Baird & Co., Incorporated (Baird), located at 777 E. Wisconsin Avenue, Milwaukee, Wisconsin 53202, has been selected as a Sub-Adviser to the SEI VP Core Fixed Income Fund. As of the date of this prospectus, no assets were allocated to Baird. However, SIMC may allocate assets to Baird at any time. Charles B. Groeschell of Baird would serve as portfolio manager of the portion of the SEI VP Core Fixed Income Fund's assets allocated to Baird. Prior to joining Baird in March 2000, Mr. Groeschell was a Senior Vice President and portfolio manager for Firstar Investment Management & Resource Company, LLC. Mr. Groeschell has over 18 years of investment experience. WESTERN ASSET MANAGEMENT COMPANY: Western Asset Management Company (WAMC), located at 117 E. Colorado Blvd., 6th Floor, Pasadena, California 91105, serves as a Sub-Adviser to the SEI VP Core Fixed Income Fund. A committee of investment professionals at WAMC manages a portion of the assets of the SEI VP Core Fixed Income Fund. SEI VP HIGH YIELD BOND FUND: CREDIT SUISSE ASSET MANAGEMENT, LLC: Credit Suisse Asset Management, LLC (Credit Suisse), located at 466 Lexington Avenue, New York, New York 10017, has been selected as a Sub-Adviser to the SEI VP High Yield Bond Fund. As of the date of this prospectus, no assets were allocated to Credit Suisse. However, SIMC may allocate assets to Credit Suisse at any time. Richard J. Lindquist, CFA, of Credit Suisse would serve as portfolio manager of the portion of the SEI VP High Yield Bond Fund's assets allocated to Credit Suisse. Mr. Lindquist joined Credit Suisse in 1995 as a result of Credit Suisse's acquisition of CS First Boston Investment Management, and has over 15 years of investment management experience, all of which were with high yield bonds. NICHOLAS-APPLEGATE CAPITAL MANAGEMENT: Nicholas Applegate Capital Management (Nicholas-Applegate), located at 600 West Broadway, Suite 2900, San Diego, California 92101, has been selected as a Sub-Adviser to the SEI VP High Yield Bond Fund. As of the date of this prospectus, no assets were allocated to Nicholas-Applegate. However, SIMC may allocate assets to Nicholas-Applegate at any time. A team of investment professionals, led by Doug G. Forsyth, CFA, would serve as portfolio managers of the portion of the SEI VP High Yield Bond Fund's assets allocated to Nicholas-Applegate. Mr. Forsyth, Lead Portfolio Manager of High Yield & Convertibles at Nicholas Applegate, joined Nicholas Applegate in 1994, and has 10 years of investment experience. NOMURA CORPORATE RESEARCH AND ASSET MANAGEMENT INC.: Nomura Corporate Research and Asset Management Inc. (Nomura), located at 2 World Financial Center, Building B, New York, New York 10281-1198, has been selected as a Sub-Adviser to the SEI VP High Yield Bond Fund. As of the date of this prospectus, no assets were allocated to Nomura. However, SIMC may allocate assets to Nomura at any time. Robert Levine, CFA, President and Chief Executive Officer of Nomura, and Richard A. Buch, Managing Director and Senior Portfolio Manager of Nomura, would serve as portfolio managers of the portion of the SEI VP High Yield Bond Fund's assets allocated to Nomura. Messrs. Levine and Buch are responsible for the management of Nomura's high yield bond portfolios and research analysis. Prior to joining Nomura, Mr. Levine was President of Kidder, Peabody High Yield Asset Management, Inc. and Managing Director of Kidder, Peabody & Co., where he created their first high yield bond mutual fund. Prior to joining Nomura, Mr. Buch was with Kidder, Peabody & Co., where he served as Senior Vice President of the Kidder, Peabody Asset Management, Inc. Mr. Levine and Mr. Buch each have over 21 years of investment experience. SHENKMAN CAPITAL MANAGEMENT, INC.: Shenkman Capital Management, Inc. (Shenkman), located at 461 Fifth Avenue, New York, New York 10017, serves as a Sub-Adviser to the SEI VP High Yield Bond Fund. Mark Shenkman, President and Chief Investment Officer, Frank Whitley, Executive Vice President, and Mark Flanagan, Senior Vice President, of Shenkman serve 40 SEI INVESTMENTS / PROSPECTUS as co-portfolio managers of the portion of the SEI VP High Yield Bond Fund's assets allocated to Shenkman. Mr. Shenkman has served in these roles since he founded the firm in 1985. Mr. Whitley joined Shenkman in 1988, and has co-managed the investment process since 1994. Mr. Flanagan joined Shenkman in 1992, and after serving as Director of Credit Research, was promoted to a portfolio manager in 2002. Mr. Shenkman, Mr. Whitley and Mr. Flanagan have a combined 60 years of investment experience. SEI VP INTERNATIONAL FIXED INCOME FUND: STRATEGIC FIXED INCOME, L.L.C.: Strategic Fixed Income, L.L.C. (Strategic), located at 1001 Nineteenth Street North, Suite 1400, Arlington, Virginia 22209, serves as the Sub-Adviser to the SEI VP International Fixed Income Fund. Kenneth Windheim, Gregory Barnett and David Jallits of Strategic serve as portfolio managers of the SEI VP International Fixed Income Fund. Mr. Windheim is the President and Chief Investment Officer of Strategic. Prior to joining Strategic, Mr. Windheim was the Chief Investment Officer and Managing Director of the group which managed global fixed income portfolios at Prudential Asset Management. Prior to joining Strategic, Mr. Barnett was a portfolio manager for the Pilgrim Multi-Market Income Fund. Prior to that, he was vice president and senior fixed income portfolio manager at Lexington Management. Prior to joining Strategic, Mr. Jallits was Senior Portfolio Manager for a hedge fund at Teton Partners. SEI VP EMERGING MARKETS DEBT FUND: SALOMON BROTHERS ASSET MANAGEMENT INC: Salomon Brothers Asset Management Inc (SBAM), located at 388 Greenwich Street, New York, New York 10013, serves as the Sub-Adviser to the SEI VP Emerging Markets Debt Fund. Peter J. Wilby leads the team of professionals from SBAM that manages the assets of the SEI VP Emerging Markets Debt Fund. Mr. Wilby, a Managing Director of SBAM, joined SBAM in 1989. SEI INVESTMENTS / PROSPECTUS 41 PURCHASING AND SELLING FUND SHARES HOW TO PURCHASE FUND SHARES Shares are offered on each day that the New York Stock Exchange (NYSE) is open for business (a Business Day). The Funds offer their Class A Shares only to insurance companies for separate accounts they establish to fund variable life insurance and variable annuity contracts. An insurance company purchases or redeems shares of the Funds based on, among other things, the amount of net contract premiums or purchase payments allocated to a separate account investment division, transfers to or from a separate account investment division, contract loans and repayments, contract withdrawals and surrenders, and benefit payments. The contract prospectus describes how contract owners may allocate, transfer and withdraw amounts to, and from, separate accounts. The price per share will be the net asset value per share (NAV) next determined after the Funds receive the insurance companies' purchase orders. The Funds calculate NAV once each Business Day at the regularly-scheduled close of normal trading on the NYSE (normally, 4:00 p.m. Eastern time). To receive the current Business Day's NAV, generally the Funds must receive an order in proper form before 4:00 p.m. Eastern time. The Fund will not accept purchase orders that request a particular day or price for the transaction or any other special condition. HOW THE FUNDS CALCULATE NAV NAV for one Fund share is the value of that share's portion of the net assets of the Fund. In calculating NAV, the Funds generally value their portfolio securities at market price. If market prices are unavailable or the Funds think that they are unreliable, fair value prices may be determined in good faith using methods approved by the Board of Trustees. Some Funds hold portfolio securities that are listed on foreign exchanges. These securities may trade on weekends or other days when the Funds do not calculate NAV. As a result, the market value of these Funds' investments may change on days when you cannot purchase or sell Fund shares. DISTRIBUTION OF FUND SHARES SEI Investments Distribution Co. (SIDCo.) is the distributor of the shares of the Funds. SIDCo. receives no compensation for distributing the Funds' Class A Shares. 42 SEI INVESTMENTS / PROSPECTUS DIVIDENDS, DISTRIBUTIONS AND TAXES DIVIDENDS AND DISTRIBUTIONS The Funds distribute their investment income periodically as a dividend to shareholders. It is the policy of the SEI VP Core Fixed Income and SEI VP High Yield Bond Funds to pay dividends monthly, the SEI VP Large Cap Value, SEI VP Large Cap Growth, SEI VP Small Cap Value and SEI VP Small Cap Growth Funds to pay dividends quarterly and SEI VP International Equity, SEI VP Emerging Markets Equity, SEI VP International Fixed Income and SEI VP Emerging Markets Debt Funds to pay dividends annually. The Funds make distributions of capital gains, if any, at least annually. TAXES PLEASE CONSULT YOUR TAX ADVISOR REGARDING YOUR SPECIFIC QUESTIONS ABOUT FEDERAL, STATE AND LOCAL INCOME TAXES. Below the Funds have summarized some important tax issues that affect the Funds and their shareholders. This summary is based on current tax laws, which may change. The Funds expect that they will not have to pay income taxes if they distribute all of their net investment income and net realized capital gains at least annually. Net investment income and net realized capital gains that the Funds distribute are not currently taxable to investors when left to accumulate within a variable annuity or variable life insurance contract. The Funds do not expect to be subject to Federal excise taxes with respect to undistributed income. Special tax rules apply to life insurance companies, variable annuity contracts and variable life insurance contracts. For information on federal income taxation of a life insurance company with respect to its receipt of distributions from the Funds and federal income taxation of owners of variable annuity or variable life insurance contracts, refer to your contract prospectus. MORE INFORMATION ABOUT TAXES IS IN THE FUNDS' SAI. SEI INVESTMENTS / PROSPECTUS 43 FINANCIAL HIGHLIGHTS The tables that follow present performance information about Class A Shares of each Fund. This information is intended to help you understand each Fund's financial performance for the past five years, or, if shorter, the period of the Fund's operations. Some of this information reflects financial information for a single Fund share. The total returns in the table represent the rate that you would have earned (or lost) on an investment in a Fund, assuming you reinvested all of your dividends and distributions. This information has been audited by PricewaterhouseCoopers LLP, independent public accountants. Their report, along with each Fund's financial statements, appears in the annual report that accompanies the Funds' SAI. You can obtain the annual report, which contains more performance information, at no charge by calling 1-800-DIAL-SEI. SEI INSURANCE PRODUCTS TRUST -- FOR THE PERIOD ENDED DECEMBER 31, 2001 FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Net Realized and Unrealized Distributions Net Net Asset Net Gains Distributions from Asset Value, Investment (Losses) from Net Realized Value, Beginning Income on Investment Capital End of Total of Period (Loss) Securities Income Gains Period Return+ --------------------------------------------------------------------------------------------------------------------------- SEI VP LARGE CAP VALUE FUND --------------------------------------------------------------------------------------------------------------------------- 2001 $10.82 $ 0.12 $(0.44) $(0.12) $(0.17) $10.21 (2.91)% --------------------------------------------------------------------------------------------------------------------------- 2000(1) 10.00 0.09 0.82 (0.09) -- 10.82 9.17 --------------------------------------------------------------------------------------------------------------------------- SEI VP LARGE CAP GROWTH FUND --------------------------------------------------------------------------------------------------------------------------- 2001 $ 7.48 $ -- $(2.03) $ -- $ -- $ 5.45 (27.14)% --------------------------------------------------------------------------------------------------------------------------- 2000(1) 10.00 (0.01) (2.51) -- -- 7.48 (25.20) --------------------------------------------------------------------------------------------------------------------------- SEI VP SMALL CAP VALUE FUND --------------------------------------------------------------------------------------------------------------------------- 2001 $11.83 $ 0.06 $ 1.64 $(0.06) $(0.90) $12.57 14.89% --------------------------------------------------------------------------------------------------------------------------- 2000(1) 10.00 0.07 2.13 (0.07) (0.30) 11.83 22.25 --------------------------------------------------------------------------------------------------------------------------- SEI VP SMALL CAP GROWTH FUND --------------------------------------------------------------------------------------------------------------------------- 2001 $ 9.63 $(0.04) $(2.07) $ -- $ -- $ 7.52 (21.91)% --------------------------------------------------------------------------------------------------------------------------- 2000(1) 10.00 (0.04) (0.33) -- -- 9.63 (3.70) --------------------------------------------------------------------------------------------------------------------------- SEI VP INTERNATIONAL EQUITY FUND --------------------------------------------------------------------------------------------------------------------------- 2001 $ 7.95 $ 0.01 $(1.92) $(0.01) $ -- $ 6.03 (24.05)% --------------------------------------------------------------------------------------------------------------------------- 2000(1) 10.00 0.09 (2.05) (0.09) -- 7.95 (19.60) --------------------------------------------------------------------------------------------------------------------------- Ratio of Net Ratio of Ratio of Investment Ratio of Net Expenses to Income (Loss) to Expenses Investment Average Net Average Net to Income Assets Assets Net Assets Average (Loss) to (Excluding (Excluding Portfolio End of Period Net Average Waivers and Waivers and Turnover ($ Thousands) Assets Net Assets Reimbursements) Reimbursements) Rate ---------------------------------------- SEI VP LARGE CAP VALUE FUND ---------------------------------------- 2001 $38,888 0.85% 1.25% 1.14% 0.96% 42% ---------------------------------------- 2000(1) 22,170 0.85 1.25 1.35 0.75 49 ---------------------------------------- SEI VP LARGE CAP GROWTH FUND ---------------------------------------- 2001 $28,868 0.85% (0.25)% 1.19% (0.59)% 84% ---------------------------------------- 2000(1) 17,236 0.85 (0.26) 1.39 (0.80) 57 ---------------------------------------- SEI VP SMALL CAP VALUE FUND ---------------------------------------- 2001 $15,719 1.10% 0.48% 1.45% 0.13% 39% ---------------------------------------- 2000(1) 10,498 1.10 0.90 1.66 0.34 98 ---------------------------------------- SEI VP SMALL CAP GROWTH FUND ---------------------------------------- 2001 $ 9,625 1.10% (0.82)% 1.46% (1.18)% 151% ---------------------------------------- 2000(1) 8,699 1.10 (0.59) 1.65 (1.14) 116 ---------------------------------------- SEI VP INTERNATIONAL EQUITY FUND ---------------------------------------- 2001 $17,047 1.28% 0.19% 2.04% (0.57)% 41% ---------------------------------------- 2000(1) 12,949 1.28 1.61 2.13 0.76 31 ----------------------------------------
44 SEI INVESTMENTS / PROSPECTUS
Net Realized and Unrealized Distributions Net Net Asset Net Gains Distributions from Asset Value, Investment (Losses) from Net Realized Value, Beginning Income on Investment Capital End of Total of Period (Loss) Securities Income Gains Period Return+ ----------------------------------------------------------------------------------------------------------------------------- SEI VP EMERGING MARKETS EQUITY FUND ----------------------------------------------------------------------------------------------------------------------------- 2001 $ 6.23 $ 0.03 $(0.72) $ -- $ -- $ 5.54 (11.08)% ----------------------------------------------------------------------------------------------------------------------------- 2000(1) 10.00 (0.05) (3.72) -- -- 6.23 (37.70) ----------------------------------------------------------------------------------------------------------------------------- SEI VP CORE FIXED INCOME FUND ----------------------------------------------------------------------------------------------------------------------------- 2001 $10.36 $ 0.55 $ 0.23 $(0.55) $(0.22) $10.37 7.69% ----------------------------------------------------------------------------------------------------------------------------- 2000(1) 10.00 0.45 0.36 (0.45) -- 10.36 8.31 ----------------------------------------------------------------------------------------------------------------------------- SEI VP HIGH YIELD BOND FUND ----------------------------------------------------------------------------------------------------------------------------- 2001 $ 9.16 $ 0.87 $(0.50) $(0.87) $ -- $ 8.66 4.00% ----------------------------------------------------------------------------------------------------------------------------- 2000(1) 10.00 0.70 (0.84) (0.70) -- 9.16 (1.51) ----------------------------------------------------------------------------------------------------------------------------- SEI VP INTERNATIONAL FIXED INCOME FUND ----------------------------------------------------------------------------------------------------------------------------- 2001 $ 9.89 $ 0.09 $(0.61) $ -- $(0.07) $ 9.30 (5.32)% ----------------------------------------------------------------------------------------------------------------------------- 2000(1) 10.00 (0.20) 0.09 -- -- 9.89 (1.10) ----------------------------------------------------------------------------------------------------------------------------- SEI VP EMERGING MARKETS DEBT FUND ----------------------------------------------------------------------------------------------------------------------------- 2001 $ 9.75 $ 0.96 $ 0.26 $(0.96) $ -- $10.01 12.56% ----------------------------------------------------------------------------------------------------------------------------- 2000(1) 10.00 0.76 (0.11) (0.76) (0.14) 9.75 6.56 ----------------------------------------------------------------------------------------------------------------------------- Ratio of Net Ratio of Ratio of Investment Ratio of Net Expenses to Income (Loss) to Expenses Investment Average Net Average Net to Income Assets Assets Net Assets Average (Loss) to (Excluding (Excluding Portfolio End of Period Net Average Waivers and Waivers and Turnover ($ Thousands) Assets Net Assets Reimbursements) Reimbursements) Rate ---------------------------------------- SEI VP EMERGING MARKETS EQUITY FUND ---------------------------------------- 2001 $ 8,824 1.95% 0.06% 3.70% (1.69)% 149% ---------------------------------------- 2000(1) 7,286 1.95 (0.62) 3.52 (2.19) 117 ---------------------------------------- SEI VP CORE FIXED INCOME FUND ---------------------------------------- 2001 $45,394 0.60% 5.15% 1.00% 4.75% 423% ---------------------------------------- 2000(1) 19,215 0.60 6.10 1.19 5.51 342 ---------------------------------------- SEI VP HIGH YIELD BOND FUND ---------------------------------------- 2001 $12,595 0.85% 9.54% 1.31% 9.08% 72% ---------------------------------------- 2000(1) 10,427 0.85 9.75 1.51 9.09 5 ---------------------------------------- SEI VP INTERNATIONAL FIXED INCOME FUND ---------------------------------------- 2001 $ 9,945 1.00% 2.99% 1.51% 2.48% 301% ---------------------------------------- 2000(1) 7,391 1.00 3.39 1.70 2.69 100 ---------------------------------------- SEI VP EMERGING MARKETS DEBT FUND ---------------------------------------- 2001 $ 8,239 1.35% 9.61% 2.07% 8.89% 201% ---------------------------------------- 2000(1) 6,563 1.35 10.55 2.26 9.64 140 ----------------------------------------
+ Returns are for the period indicated and have not been annualized. (1) Commenced operations on April 5, 2000. All ratios for the period have been annualized. Amounts designated as -- are either $0 or have been rounded to $0. SEI INVESTMENTS / PROSPECTUS 45 INVESTMENT ADVISER SEI Investments Management Corporation One Freedom Valley Drive Oaks, PA 19456 DISTRIBUTOR SEI Investments Distribution Co. One Freedom Valley Drive Oaks, PA 19456 LEGAL COUNSEL Morgan, Lewis & Bockius LLP More information about the Funds is available without charge through the following: STATEMENT OF ADDITIONAL INFORMATION (SAI) The SAI dated May 1, 2002, includes more detailed information about SEI Insurance Products Trust. The SAI is on file with the SEC and is incorporated by reference into this prospectus. This means that the SAI, for legal purposes, is a part of this prospectus. ANNUAL AND SEMI-ANNUAL REPORTS These reports will typically list the Funds' holdings and contain information from the Funds' managers about strategies and market conditions and trends and their impact on performance. The reports will also contain detailed financial information about the Funds. TO OBTAIN AN SAI, ANNUAL OR SEMI-ANNUAL REPORT, OR MORE INFORMATION: By Telephone: Call 1-800-DIAL-SEI By Mail: Write to the Funds at: One Freedom Valley Drive Oaks, PA 19456 By Internet: HTTP://WWW.SEIC.COM From the SEC: You can obtain the SAI or the Annual and Semi-Annual Reports, as well as other information about SEI Insurance Products Trust, from the EDGAR Database on the SEC's website ("http://www.sec.gov"). You may review and copy documents at the SEC Public Reference Room in Washington, D.C. (for information on the operation of the Public Reference Room, call 202-942-8090). You may request documents by mail from the SEC, upon payment of a duplicating fee, by writing to: Securities and Exchange Commission, Public Reference Section, Washington, DC 20549-0102. You may also obtain this information, upon payment of a duplicating fee, by e-mailing the SEC at the following address: publicinfo@sec.gov. The Trust's Investment Company Act registration number is 811-9183. SEI INSURANCE PRODUCTS TRUST Adviser: SEI Investments Management Corporation Administrator: SEI Investments Fund Management Distributor: SEI Investments Distribution Co. Sub-Advisers: Alliance Capital Management L.P. Artisan Partners Limited Partnership Barclays Global Fund Advisors BlackRock Financial Management, Inc. BlackRock International, Ltd. The Boston Company Asset Management, LLC Capital Guardian Trust Company Chartwell Investment Partners Credit Suisse Asset Management LLC David J. Greene and Company, LLC Deutsche Asset Management Inc. Duncan-Hurst Capital Management Inc. Iridian Asset Management LLC JF International Management, Inc. LSV Asset Management Mazama Capital Management, LLC McKinley Capital Management Inc. Mellon Bond Associates, LLP Montag & Caldwell Inc. Morgan Stanley Investment Management Inc. Nicholas-Applegate Capital Management Nomura Corporate Research and Asset Management Inc. Oechsle International Advisors, LLC Peregrine Capital Management Inc. Robert W. Baird & Co. Incorporated RS Investment Management, L.P. Salomon Brothers Asset Management Inc Sanford C. Bernstein & Co., LLC Sawgrass Asset Management, LLC Schroder Investment Management North America Inc. Security Capital Research and Management Incorporated SG Pacific Asset Management, Inc. SGY Asset Management (Singapore) Limited Shenkman Capital Management Sterling Capital Management Strategic Fixed Income, L.L.C. Transamerica Investment Management LLC Wall Street Associates Wellington Management Company, LLP Western Asset Management Company This STATEMENT OF ADDITIONAL INFORMATION is not a Prospectus. It is intended to provide additional information regarding the activities and operations of SEI Insurance Products Trust (the "Trust") and should be read in conjunction with the Trust's Prospectuses dated May 1, 2002. Prospectuses may be obtained through SEI Investments Distribution Co., Oaks, Pennsylvania 19456 or by calling 1-800-342-5734. The Trust's financial statements for the fiscal year ended December 31, 2001, including notes thereto and the report of PricewaterhouseCoopers, LLP thereon, are herein incorporated by reference from the Trust's 2001 Annual Report. A copy of the 2001 Annual Report must accompany the delivery of this Statement of Additional Information. May 1, 2002 TABLE OF CONTENTS The Trust................................................... S-3 Investment Objectives and Policies.......................... S-3 Description of Permitted Investments and Risk Factors....... S-13 Description of Ratings...................................... S-36 Investment Limitations...................................... S-41 The Administrator and Transfer Agent........................ S-43 The Adviser and The Sub-Advisers............................ S-45 Distribution and Shareholder Servicing...................... S-51 Code of Ethics.............................................. S-51 Trustees and Officers of the Trust.......................... S-52 Performance................................................. S-56 Purchase and Redemption of Shares........................... S-60 Taxes....................................................... S-60 Portfolio Transactions...................................... S-62 Description of Shares....................................... S-66 Limitation of Trustees' Liability........................... S-66 Voting...................................................... S-66 Custodians.................................................. S-66 Shareholder Liability....................................... S-66 Control Persons and Principal Holders of Securities......... S-67 Experts..................................................... S-70 Legal Counsel............................................... S-70
May 1, 2002 S-2 THE TRUST SEI Insurance Products Trust (the "Trust") is an open-end management investment company that has diversified and non-diversified portfolios. The Trust was organized as a Massachusetts business trust under a Declaration of Trust dated December 14, 1998. The Declaration of Trust permits the Trust to offer separate series ("portfolios") of units of beneficial interest ("shares") and separate classes of portfolios. Except for differences between the Class A shares and Class B shares pertaining to sales charges, distribution and shareholder servicing, voting rights, dividend and transfer agent expenses, each share of each portfolio represents an equal proportionate interest in that portfolio with each other share of that portfolio. All consideration received by the Trust for shares of any class of any portfolio and all assets of such portfolio or class belong to that portfolio or class, respectively, and would be subject to the liabilities related thereto. The Trust pays its expenses, including fees of its service providers, audit and legal expenses, expenses of preparing prospectuses, proxy solicitation materials and reports to shareholders, costs of custodial services and registering the shares under federal and state securities laws, pricing, insurance expenses, litigation and other extraordinary expenses, brokerage costs, interest charges, taxes and organization expenses. Certain shareholders in one or more of the portfolios may obtain asset allocation services from the Adviser and other financial intermediaries with respect to their investments in such portfolios. If a sufficient amount of a portfolio's assets are subject to such asset allocation services, a portfolio may incur higher transaction costs and a higher portfolio turnover rate than would otherwise be anticipated as a result of redemptions and purchases of portfolio shares pursuant to such services. Further, to the extent that the Adviser is providing asset allocation services and providing investment advice to the portfolios, it may face conflicts of interest in fulfilling its responsibilities because of the possible differences between the interests of its allocation clients and the interest of the portfolios. This Statement of Additional Information relates to the Class A shares of the SEI VP Large Cap Value, SEI VP Large Cap Growth, SEI VP S&P 500 Index, SEI VP Small Cap Value, SEI VP Small Cap Growth, SEI VP International Equity, SEI VP Emerging Markets Equity, SEI VP Core Fixed Income, SEI VP Bond Index, SEI VP High Yield Bond, SEI VP International Fixed Income, SEI VP Emerging Markets Debt and SEI VP Prime Obligation Funds and Class B shares of the SEI VP Prime Obligation Fund (each a "Fund" and, together, the "Funds"). The investment adviser and investment sub-advisers to the Funds are referred to collectively as "advisers." INVESTMENT OBJECTIVES AND POLICIES SEI VP LARGE CAP VALUE FUND--The investment objective of the SEI VP Large Cap Value Fund is long-term growth of capital and income. There can be no assurance that the Fund will achieve its investment objective. Under normal circumstances, the Fund will invest at least 80% of its net assets in equity securities of large companies (I.E., companies with market capitalizations of more than $1 billion). The Fund will notify its shareholders at least 60 days prior to any change to this policy. The Fund will invest primarily in a diversified portfolio of high quality, income producing common stocks of large companies which, in the opinion of the advisers, are undervalued in the marketplace at the time of purchase. In general, the advisers characterize high quality securities as those that have above-average reinvestment rates. The advisers also consider other factors, such as earnings and dividend growth prospects, as well as industry outlook and market share. Any remaining assets may be invested in other equity securities and in investment grade fixed income securities. Investment grade fixed income securities are securities that are rated in one of four highest long-term ratings categories by a nationally recognized statistical ratings organization ("NRSRO") such as those rated at least BBB by Standard & Poor's Corporation ("S&P") or S-3 Baa by Moody's Investors Service, Inc. ("Moody's"). The Fund may also borrow money, invest in illiquid securities, when-issued and delayed-delivery securities, shares of real estate investment trusts ("REITs"), and shares of other investment companies, and lend its securities to qualified borrowers. SEI VP LARGE CAP GROWTH FUND--The investment objective of the SEI VP Large Cap Growth Fund is capital appreciation. There can be no assurance that the Fund will achieve its investment objective. Under normal circumstances, the Fund will invest at least 80% of its net assets in equity securities of large companies (I.E., companies with market capitalizations of more than $1 billion). The Fund will notify its shareholders at least 60 days prior to any change to this policy. The Fund will invest primarily in equity securities of large companies which, in the opinion of the advisers, possess significant growth potential. Any remaining assets may be invested in investment grade fixed income securities or in equity securities of smaller companies that the Fund's advisers believe are appropriate in light of the Fund's objective. The Fund may also borrow money, invest in illiquid securities, when-issued and delayed-delivery securities, shares of REITs, and shares of other investment companies, and lend its securities to qualified borrowers. SEI VP S&P 500 INDEX FUND--The SEI VP S&P 500 Index Fund seeks to provide investment results that correspond to the aggregate price and dividend performance of the securities in the Standard & Poor's 500 Composite Stock Price Index (the "S&P 500 Index"), which is comprised of 500 selected securities (most of which are common stocks listed on the New York Stock Exchange). There can be no assurance that the Fund will achieve its investment objective. The Fund's ability to duplicate the performance of the S&P 500 Index will depend to some extent on the size and timing of cashflows into and out of the Fund, as well as on the level of the Fund's expenses. Adjustments made to accommodate cash flows will track the S&P 500 Index to the maximum extent possible, and may result in brokerage expenses for the Fund. Over time, the correlation between the performance of the Fund and the S&P 500 Index is expected to be over 0.95. A correlation of 1.00 would indicate perfect correlation, which would be achieved when the net asset value of the Fund, including the value of its dividend and capital gains distributions, increased or decreased in exact proportion to changes in the S&P 500 Index. The Fund will normally be invested in all of the stocks and other securities which comprise the S&P 500 Index, except when changes are made to the S&P 500 Index itself. The Fund's policy is to be fully invested in common stocks and other securities included in the S&P 500 Index, and it is expected that cash reserve items would normally be less than 10% of net assets. Accordingly, an investment in shares of the Fund involves risks similar to those of investing in a portfolio consisting of the common stocks and other securities of some or all of the companies included in the S&P 500 Index. The weightings of securities in the S&P 500 Index are based on each security's relative total market value, I.E., market price per share times the number of shares outstanding. Because of this weighting, approximately 50% of the S&P 500 Index is currently composed of stocks of the 50 largest companies in the S&P 500 Index, and the S&P 500 Index currently represents over 65% of the market value of all U.S. common stocks listed on the New York Stock Exchange. The Fund's sub-adviser, makes no attempt to "manage" the Fund in the traditional sense (I.E., by using economic, financial or market analyses). The Fund does not seek to "beat" the markets it tracks and does not seek temporary defensive positions when markets appear overvalued. In addition, the adverse financial situation of a company usually will not result in the elimination of a security from the Fund. However, an investment may be removed from the Fund if, in the judgment of the Fund's sub-adviser, the merit of the investment has been substantially impaired by extraordinary events or adverse financial conditions. Furthermore, administrative adjustments may be made in the Fund from time to time because of mergers, changes in the composition of the S&P 500 Index and similar reasons. In certain circumstances, the Fund's sub-adviser may exercise discretion in determining whether to exercise warrants or rights issued in respect to Fund securities or whether to tender Fund securities pursuant to a tender or exchange offer. S-4 The equity securities in which the Fund invests are common stocks, preferred stocks, securities convertible into common stock and American Depositary Receipts ("ADRs"). The Fund may also purchase shares of REITs and lend its securities to qualified borrowers. The Fund may enter into stock index futures contracts to maintain adequate liquidity to meet its redemption demands while maximizing the level of the Fund's assets which are tracking the performance of the S&P 500 Index, provided that the value of these contracts does not exceed 20% of the Fund's total assets. The Fund may only purchase those stock index futures contracts--such as futures contracts on the S&P 500 Index--that are likely to closely replicate the performance of the S&P 500 Index. The Fund also can sell such futures contracts in order to close out a previously established position. The Fund will not enter into any stock index futures contract for the purpose of speculation, and will only enter into contracts traded on national securities exchanges with standardized maturity dates. The Fund may invest cash reserves in securities issued by the U.S. Government, its agencies or instrumentalities, bankers' acceptances, commercial paper rated at least A-1 by S&P and/or Prime-1 by Moody's, certificates of deposit and repurchase agreements involving such obligations. Such investments will not be used for defensive purposes. The Fund is not sponsored, endorsed, sold or promoted by S&P. S&P makes no representation or warranty, implied or express, to the purchasers of the Fund or any member of the public regarding the advisability of investing in index funds or the Fund or the ability of the Index to track general stock market performance. SEI VP SMALL CAP VALUE FUND--The investment objective of the SEI VP Small Cap Value Fund is capital appreciation. There can be no assurance that the Fund will achieve its investment objective. Under normal circumstances, the Fund will invest at least 80% of its net assets in the equity securities of small companies (I.E., companies with market capitalizations of less than $2 billion). The Fund will notify its shareholders at least 60 days prior to any change to this policy. The Fund will invest in the equity securities of smaller companies which, in the opinion of the advisers, have prices that appear low relative to certain fundamental characteristics such as earnings, book value, or return on equity. Any remaining assets may be invested in investment grade fixed income securities or equity securities of larger, more established companies that the Fund's advisers believe are appropriate in light of the Fund's objective. The Fund may also borrow money, invest in illiquid securities, when-issued and delayed-delivery securities, shares of REITs, and shares of other investment companies, and lend its securities to qualified borrowers. SEI VP SMALL CAP GROWTH FUND--The investment objective of the SEI VP Small Cap Growth Fund is long-term capital appreciation. There can be no assurance that the Fund will achieve its investment objective. Under normal circumstances, the Fund will invest at least 80% of its net assets in the equity securities of small growth companies (I.E., companies with market capitalizations of less than $2 billion). The Fund will notify its shareholders at least 60 days prior to any change to this policy. The Fund will invest in the equity securities of smaller growth companies which, in the opinion of the advisers, are in an early stage or transitional point in their development and have demonstrated or have the potential for above average capital growth. Any remaining assets may be invested in the equity securities of more established companies that the advisers believe may offer strong capital appreciation potential due to their relative market position, anticipated earnings growth, changes in management or other similar opportunities. For temporary defensive purposes, the Fund may invest all or a portion of its assets in common stocks or larger, more established companies and in investment grade fixed income securities. The Fund may also borrow money, invest in illiquid securities, when-issued and delayed-delivery securities, shares of REITs, and shares of other investment companies, and lend its securities to qualified borrowers. The Fund's annual turnover rate may exceed 100%. Such a turnover rate may result in higher transaction costs and in additional taxes for shareholders. S-5 SEI VP INTERNATIONAL EQUITY FUND--The SEI VP International Equity Fund seeks to provide long-term capital appreciation by investing primarily in a diversified portfolio of equity securities of non-U.S. issuers. There can be no assurance that the Fund will achieve its investment objective. Under normal circumstances, the Fund will invest at least 80% of its net assets in equity securities. The Fund will notify its shareholders at least 60 days prior to any change to this policy. The Fund will invest primarily in equity securities of non-U.S. issuers located in at least three countries other than the United States. The Fund will invest primarily in companies located in developed countries, but may also invest, to a limited extent, in securities of issuers located in emerging market countries. Securities of non-U.S. issuers purchased by the Fund will typically be listed on recognized foreign exchanges, but also may be purchased in over-the-counter markets, on U.S. registered exchanges, or in the form of sponsored or unsponsored ADRs traded on registered exchanges or NASDAQ, or sponsored or unsponsored European Depositary Receipts ("EDRs"), Continental Depositary Receipts ("CDRs") or Global Depositary Receipts ("GDRs"). The Fund expects its investments to include large, intermediate and small capitalization companies. The Fund expects to be fully invested in the primary investments described above, but may invest up to 20% of its net assets in U.S. or non-U.S. cash reserves; money market instruments; swaps; options on securities and non-U.S. indices; futures contracts, including stock index futures contracts; options on futures contracts and equity-linked warrants. The Fund is permitted to acquire floating and variable rate securities, purchase securities on a when-issued or delayed delivery basis, and invest up to 15% of its net assets in illiquid securities. The Fund may also lend its securities to qualified borrowers. Although permitted to do so, the Fund does not currently intend to invest in securities issued by passive foreign investment companies. For temporary defensive purposes, when the advisers determine that market conditions warrant, the Fund may invest up to 100% of its assets in U.S. dollar-denominated fixed income securities or debt obligations and the following domestic and foreign money market instruments: government obligations, certificates of deposit, bankers' acceptances, time deposits, commercial paper, short-term corporate debt issues and repurchase agreements, and may hold a portion of their assets in cash. In addition, the Fund may invest in the foregoing instruments and hold cash for liquidity purposes. For temporary defensive purposes when the advisers determine that market conditions warrant, the Fund may invest up to 50% of its assets in U.S. and non-U.S. money market instruments and in other U.S. and non-U.S. long- and short-term debt instruments which are rated BBB or higher by S&P or Baa or higher by Moody's at the time of purchase, or which are determined by the advisers to be of comparable quality; maintain a portion of such assets in cash; and invest such assets in obligations of supranational entities which are rated A or higher by S&P or Moody's at the time of purchase or which are determined by the advisers to be of comparable quality. SEI VP EMERGING MARKETS EQUITY FUND--The SEI VP Emerging Markets Equity Fund seeks to provide capital appreciation by investing primarily in a diversified portfolio of equity securities of emerging market issuers. There can be no assurance that the Fund will achieve its investment objective. Under normal circumstances, the Fund will invest at least 80% of its net assets in equity securities of emerging market issuers. The Fund will notify its shareholders at least 60 days prior to any change to this policy. The Fund normally maintains investments in at least six emerging market countries and does not invest more than 35% of its total assets in any one emerging market country. The Fund defines an emerging market country as any country the economy and market of which the World Bank or the United Nations considers to be emerging or developing. The Fund's advisers consider emerging market issuers to include companies the securities of which are principally traded in the capital markets of emerging market countries; that derive at least 50% of their total revenue from either goods produced or services rendered in emerging market countries, regardless of where the securities of such companies are principally traded; or that are organized under the laws of and have a principal office in an emerging market country. S-6 The Fund expects to be fully invested in the primary investments described above, but may invest up to 20% of its net assets in debt securities, including up to 5% of its total assets in debt securities rated below investment grade. These debt securities will include debt securities of governmental and private issuers in emerging market countries. Bonds rated below investment grade are often referred to as "junk bonds." Such securities involve greater risk of default or price volatility than investment grade securities. The Fund may invest in certain debt securities issued by the governments of emerging market countries that are or may be eligible for conversion into investments in emerging market companies under debt conversion programs sponsored by such governments. The Fund may invest up to 15% of its total assets in illiquid securities. The Fund's advisers believe that carefully selected investments in joint ventures, cooperatives, partnerships, private placements, unlisted securities and other similar situations (collectively, "special situations") could enhance the Fund's capital appreciation potential. Investments in special situations may be liquid, as determined by the Fund's advisers based on criteria approved by the Board of Trustees. To the extent these investments are deemed illiquid, the Fund's investment in them will be subject to its 15% restriction on investment in illiquid securities. The Fund may invest up to 10% of its total assets in shares of other investment companies. The Fund may invest in futures contracts and purchase securities on a when-issued or delayed delivery basis. The Fund may also purchase and write options to buy or sell futures contracts and lend its securities to qualified borrowers. For temporary defensive purposes, when the advisers determine that market conditions warrant, the Fund may invest up to 100% of its assets in U.S. dollar-denominated fixed income securities or debt obligations and the following domestic and foreign money market instruments: government obligations, certificates of deposit, bankers' acceptances, time deposits, commercial paper, short-term corporate debt issues and repurchase agreements, and may hold a portion of their assets in cash. In addition, the Fund may invest in the foregoing instruments and hold cash for liquidity purposes. For temporary defensive purposes when the advisers determine that market conditions warrant, the Fund may invest up to 20% of its total assets in the equity securities of companies included in the Morgan Stanley Capital International Europe, Australia, Far East Index. These companies typically have larger average market capitalizations than the emerging market companies in which the Fund generally invests. SEI VP CORE FIXED INCOME FUND--The investment objective of the SEI VP Core Fixed Income Fund is current income consistent with the preservation of capital. There can be no assurance that the Fund will achieve its investment objective. Under normal circumstances, the Fund will invest at least 80% of its net assets in fixed income securities. The Fund will notify its shareholders at least 60 days prior to any change to this policy. The Fund will invest primarily in fixed income securities that are rated investment grade, I.E., rated in one of the four highest rating categories by an NRSRO at the time of purchase, or, if not rated, determined to be of comparable quality by the advisers. Fixed income securities in which the Fund may invest consist of: (i) corporate bonds and debentures, (ii) debt obligations issued or guaranteed as to principal and interest by the United States Government, its agencies and instrumentalities ("U.S. Government securities"), (iii) municipal securities of issuers located in all fifty states, the District of Columbia, Puerto Rico and other U.S. territories and possessions, consisting of municipal bonds, municipal notes, tax-exempt commercial paper and municipal lease obligations, (iv) receipts involving U.S. Treasury obligations, (v) mortgage-backed securities, (vi) asset-backed securities, (vii) zero coupon, pay-in-kind or deferred payment securities and (viii) securities issued on a when-issued and a delayed-delivery basis, including TBA mortgage-backed securities. Any remaining assets may be invested in: (i) interest-only and principal-only components of mortgage-backed securities, (ii) mortgage dollar rolls, (iii) warrants, (iv) money market securities, (v) construction loans and (vi) Yankee obligations. In addition, the Fund may purchase or write options, futures (including S-7 futures on U.S. Treasury obligations and Eurodollar instruments) and options on futures and enter into swap transactions, including caps, collars, floors and swaptions. The Fund may also borrow money, invest in illiquid securities and shares of other investment companies, and lend its securities to qualified borrowers. Duration is a measure of the expected life of a fixed income security on a cash flow basis. Most debt obligations provide interest payments and a final payment at maturity. Some also have put or call provisions that allow the security to be redeemed at special dates prior to maturity. Duration incorporates yield, coupon interest payments, final maturity and call features into a single measure. The advisers therefore consider duration a more accurate measure of a security's expected life and sensitivity to interest rate changes than is the security's term to maturity. The Fund invests in a portfolio with a dollar-weighted average duration that will, under normal market conditions, stay within plus or minus 20% of what the advisers believe to be the average duration of the domestic bond market as a whole. The advisers base their analysis of the average duration of the domestic bond market on the bond market indices which they believe to be representative. The advisers currently use the Lehman Aggregate Bond Index (the "Lehman Index") for this purpose. The Fund's annual turnover rate may exceed 100%. Such a turnover rate may lead to higher transaction costs and may result in higher taxes for shareholders. SEI VP BOND INDEX FUND--The SEI VP Bond Index Fund currently seeks to provide investment results that correspond to the aggregate price and interest performance of the Lehman Index, which tracks the performance of debt securities. There can be no assurance that the Fund will achieve its investment objective. The Lehman Index is made up of the Government/Corporate Index, the Mortgage-Backed Securities Index and the Asset-Backed Securities Index. The Lehman Index includes fixed rate debt issues rated investment grade or higher by one or more NRSROs. All issues have at least one year to maturity and an outstanding par value of at least $100 million. Lehman Brothers, Inc. is neither a sponsor of nor in any other way affiliated with the Trust. Inclusion of a security in the Lehman Index in no way implies an opinion of Lehman Brothers, Inc. as to its attractiveness or appropriateness as an investment. In seeking to generate results that correspond to the performance of the Lehman Index, the Fund will invest in the following obligations: (i) U.S. Government securities; (ii) investment-grade debt obligations issued by U.S. corporations; (iii) debt obligations issued or guaranteed by foreign sovereign governments, municipalities, governmental agencies or international agencies; (iv) mortgage-backed securities, including conventional 15- and 30-year fixed rate mortgages, graduated payment mortgages, balloon mortgages and adjustable rate mortgages; (v) asset-backed securities; and (vi) any other issues that are included in the Lehman Index. Fixed income securities in which the Fund may invest must be rated BBB or better by S&P or Baa or better by Moody's at the time of purchase. Debt securities rated BBB or Baa lack outstanding investment characteristics and have speculative characteristics as well. In the event that a security held by the Fund is downgraded below investment grade, the adviser will promptly review the situation and take appropriate action. If an obligation which is included in the Lehman Index on the first day of the month ceases to meet any of the qualifications for inclusion in the Lehman Index during that month, the obligation remains in the Lehman Index through the end of that month and then is eliminated from the Lehman Index. The Fund's sub-adviser, will monitor portfolio securities in order to determine whether any of these obligations have ceased to qualify for inclusion in the Lehman Index. If an obligation has ceased to qualify for inclusion in the Lehman Index as a result of: (i) a lowered investment rating, (ii) an aggregate outstanding principal amount of less than $100 million, or (iii) a remaining maturity that no longer exceeds one year (collectively, "Ineligible Obligations"), the Fund's sub-adviser may either undertake to sell such Ineligible S-8 Obligations as quickly as is financially prudent, which may be prior to or later than the time that obligation is removed from the Lehman Index, or may determine to retain the security. To the extent that the Fund's sub-adviser determines to retain Ineligible Obligations, such Ineligible Obligations, together with cash and money market instruments, will not exceed 20% of the Fund's net assets. Although the Fund retains the right to invest up to 20% of its net assets in Ineligible Obligations, cash and money market instruments, these items are expected to constitute less than 10% of the net assets of the Fund. Obligations held by the Fund that became Ineligible Obligations as a result of being rated below investment grade (which securities are often referred to as "junk bonds") will not constitute more than 5% of the Fund's net assets. In addition, cash holdings will not exceed 5% of the Fund's net assets. In addition, obligations that become eligible for inclusion in the Lehman Index during a particular month generally will not actually be included in the Lehman Index until the next month. However, the Fund may elect to purchase any such obligation and deem it to be included in the Lehman Index once it becomes eligible. The Fund generally will not hold all of the individual issues which comprise the Lehman Index because of the large number of securities involved. Instead, the Fund will hold a representative sample of the securities in the Index, selecting issues to represent entire "classes" or types of securities in the Lehman Index. Obligations included in the Lehman Index have been categorized by the Fund's sub-adviser into sectors which have been organized on the basis of type of issuer, and then further classified by quality and remaining maturities. The percentage of the Fund's assets to be invested in the aggregate obligations included in a particular sector of the Lehman Index will approximate, to the maximum extent feasible, the percentage such sector represents in the Lehman Index. The Fund's ability to duplicate the performance of the Lehman Index will depend to some extent on the size and timing of cash flows into and out of the Portfolio, as well as on the level of the Fund's expenses, and the capability of the Fund's sub-adviser to select a representative sample of the securities included in the Lehman Index. To the extent that the size of the Fund's assets limits the number of issues that the Fund can purchase, there is more potential for deviation from the Lehman Index's performance than at larger asset levels. The Fund may invest in restricted securities, including Rule 144A securities, included in the Lehman Index, and lend its securities to qualified borrowers. SEI VP HIGH YIELD BOND FUND--The investment objective of the SEI VP High Yield Bond Fund is to maximize total return. There can be no assurance that the Fund will achieve its investment objective. Under normal circumstances, the Fund will invest at least 80% of its net assets in fixed income securities that are rated below investment grade, I.E., rated below the top four rating categories by an NRSRO at the time of purchase, or, if not rated, determined to be of comparable quality by the advisers. Below investment grade securities are commonly referred to as "junk bonds," and generally entail increased credit and market risk. Securities rated in the lowest rating categories may have predominantly speculative characteristics or may be in default. The Fund may invest in all types of fixed income securities issued by domestic and foreign issuers, including: (i) mortgage-backed securities; (ii) asset-backed securities; (iii) zero coupon, pay-in-kind or deferred payment securities; and (iv) variable and floating rate instruments. Any assets of the Fund not invested in the fixed income securities described above may be invested in: (i) convertible securities; (ii) preferred stocks; (iii) equity securities; (iv) investment grade fixed income securities; (v) money market securities; (vi) securities issued on a when-issued and delayed-delivery basis, including TBA mortgage-backed securities; (vii) forward foreign currency contracts; and (viii) Yankee obligations. In addition, the Fund may purchase or write options, futures and options on futures. The Fund may also borrow money, invest in illiquid securities and shares of other investment companies, and lend its securities to qualified borrowers. The advisers may vary the average maturity of the securities in the Fund without limit, and there is no restriction on the maturity of any individual security. S-9 This Statement of Additional Information sets forth a description of the bond rating categories of several NRSROs. The ratings established by each NRSRO represents its opinion of the safety of principal and interest payments (and not the market risk) of bonds and other fixed income securities it undertakes to rate at the time of issuance. Ratings are not absolute standards of quality, and may not reflect changes in an issuer's creditworthiness. Accordingly, although the advisers will consider ratings, they will perform their own analyses and will not rely principally on ratings. The advisers will consider, among other things, the price of the security and the financial history and condition, the prospects and the management of an issuer in selecting securities for the Fund. The achievement of the Fund's investment objective may be more dependent on the adviser's own credit analysis than would be the case if the Fund invested in higher rated securities. There is no bottom limit on the ratings of high yield securities that may be purchased or held by the Fund. SEI VP INTERNATIONAL FIXED INCOME FUND--The SEI VP International Fixed Income Fund seeks to provide capital appreciation and current income through investment primarily in investment grade, non-U.S. dollar denominated government, corporate, mortgage-backed and asset-backed fixed income securities. There can be no assurance that the Fund will achieve its investment objective. Under normal circumstances, the Fund will invest at least 80% of its net assets in fixed income securities. The Fund will notify its shareholders at least 60 days prior to any change to this policy. The Fund will invest primarily in investment grade foreign government and foreign corporate, mortgage, and/or asset-backed fixed income securities of issuers located in at least three countries other than the United States. The International Fixed Income Fund will invest primarily in: (i) fixed income securities issued or guaranteed by a foreign government or one of its agencies, authorities, instrumentalities or political subdivisions; (ii) fixed income securities issued or guaranteed by supranational entities; (iii) fixed income securities issued by foreign or multinational corporations; (iv) convertible securities issued by foreign or multinational corporations; (v) fixed income securities issued by foreign banks or bank holding companies; (vi) asset-backed securities; and (vii) mortgage-backed securities. All such investments will be in investment grade securities denominated in various currencies, including the euro. Investment grade securities are rated in one of the highest four rating categories by an NRSRO or determined by the adviser to be of comparable quality at the time of purchase. The Fund expects to be fully invested in the primary investments described above, but may invest in U.S. Government securities, swaps, options and futures. The Fund may also purchase and write options to buy or sell futures contracts, purchase securities on a when-issued or delayed delivery basis and engage in short selling and lend its securities to qualified borrowers. The Fund may invest up to 10% of its total assets in illiquid securities. Furthermore, although the Fund will concentrate its investments in relatively developed countries, the Fund may invest up to 20% of its assets in fixed income securities of issuers in, or denominated in the currencies of, developing countries and that are investment-grade securities or determined by the advisers to be of comparable quality to such securities and debt obligations at the time of purchase. For temporary defensive purposes, when the advisers determine that market conditions warrant, the Fund may invest up to 100% of its assets in U.S. dollar-denominated fixed income securities or debt obligations and the following domestic and foreign money market instruments: government obligations, certificates of deposit, bankers' acceptances, time deposits, commercial paper, short-term corporate debt issues and repurchase agreements, and may hold a portion of their assets in cash. In addition, the Fund may invest in the foregoing instruments and hold cash for liquidity purposes. Under normal circumstances, the portfolio turnover rate for this Fund is expected to exceed 200% per year. Higher portfolio turnover rates can result in corresponding increases in portfolio transaction costs and taxes. The Fund will not consider portfolio turnover a limiting factor in implementing investment decisions which are consistent with the Fund's objectives and policies. S-10 The Fund is non-diversified, which means that it may invest in the securities of relatively few issuers. As a result, the Fund may be more susceptible to a single adverse economic or political occurrence affecting one or more of these issuers, and may experience increased volatility due to its investments in those securities. SEI VP EMERGING MARKETS DEBT FUND--The investment objective of the SEI VP Emerging Markets Debt Fund is to maximize total return. There can be no assurance that the Fund will achieve its investment objective. Under normal circumstances, the Fund will invest at least 80% of its net assets in fixed income securities of issuers in emerging countries. The Fund will notify its shareholders at least 60 days prior to any change to this policy. The Fund will invest primarily in fixed income securities of government, government-related and corporate issuers in emerging market countries and of entities organized to restructure the outstanding debt of such issuers. The Fund defines an emerging market country as any country the economy and market of which the World Bank or the United Nations considers to be emerging or developing. The Fund's advisers consider emerging market issuers to be companies the securities of which are principally traded in the capital markets of emerging market countries; that derive at least 50% of their total revenue from either goods produced or services rendered in emerging market countries, regardless of where the securities of such companies are principally traded; that are organized under the laws of and have a principal office in an emerging market country; or that are government issuers located in an emerging market country. Emerging market country fixed income securities in which the Fund may invest are U.S. dollar-denominated and non-U.S. dollar-denominated corporate and government debt securities, including bonds, notes, bills, debentures, convertible securities, warrants, bank debt obligations, short-term paper, mortgage and other asset-backed securities, preferred stock, loan participations and assignments and interests issued by entities organized and operated for the purpose of restructuring the investment characteristics of instruments issued by emerging market country issuers. The Fund may invest in Brady Bonds, which are debt securities issued by debtor nations to restructure their outstanding external indebtedness, and which comprise a significant portion of the emerging debt market. The Fund's investments in high yield government, government-related and restructured debt securities will consist of: (i) debt securities or obligations issued or guaranteed by governments, governmental agencies or instrumentalities and political subdivisions located in emerging market countries (including participations in loans between governments and financial institutions); (ii) debt securities or obligations issued by government-owned, controlled or sponsored entities located in emerging market countries (including participations in loans between governments and financial institutions); and (iii) interests in structured securities of issuers organized and operated for the purpose of restructuring the investment characteristics of instruments issued by any of the entities described above. Even though many of these securities are issued by governmental issuers, they may still be considered junk bonds on account of the governmental issuer's poor credit rating. The Fund may also purchase investment grade obligations of the foregoing governmental issuers. The Fund's investments in debt securities of corporate issuers in emerging market countries may include high yield or investment grade debt securities or other obligations issued by: (i) banks located in emerging market countries or by branches of emerging market country banks located in other emerging market countries; or (ii) companies organized under the laws of an emerging market country. The Fund expects to be fully invested in the primary investments described above, but may invest up to 10% of its total assets in common stock, convertible securities, warrants or other equity securities when consistent with the Fund's objective. The Fund will generally hold such equity investments as a result of purchases of unit offerings of fixed-income securities which include such securities or in connection with an actual or proposed conversion or exchange of fixed income securities. The Fund may also enter into repurchase agreements and reverse repurchase agreements, may purchase when-issued and delayed- S-11 delivery securities, lend portfolio securities and invest in shares of other investment companies. The Fund may purchase restricted securities and may invest up to 15% of the value of its total assets in illiquid securities. The Fund may invest in options and futures for hedging purposes, and may enter into swaps or related transactions. The Fund may invest in receipts, zero coupon securities, pay-in-kind bonds, Eurobonds, dollar rolls, and deferred payment securities. The securities in which the Fund will invest will not be required to meet a minimum rating standard and may not be rated for creditworthiness by any internationally recognized credit rating organization. Generally, the Fund's investments are expected to be in the lower and lowest rating categories established by internationally recognized credit rating organizations or determined to be of comparable quality. Such securities, commonly known as "junk bonds," involve significantly greater risks, including price volatility and the risk of default of payment of interest and principal, than higher rated securities. For temporary defensive purposes, when the advisers determine that market conditions warrant, the Fund may invest up to 100% of its assets in U.S. dollar-denominated fixed income securities or debt obligations and the following domestic and foreign money market instruments: government obligations, certificates of deposit, bankers' acceptances, time deposits, commercial paper, short-term corporate debt issues and repurchase agreements, and may hold a portion of their assets in cash. In addition, the Fund may invest in the foregoing instruments and hold cash for liquidity purposes. There is no limit on the percentage of the Fund's assets that may be invested in non-U.S. dollar denominated securities. However, it is expected that the majority of the Fund's assets will be denominated in U.S. dollars. The Fund is non-diversified, which means that it may invest in the securities of relatively few issuers. As a result, the Fund may be more susceptible to a single adverse economic or political occurence affecting one or more of these issuers, and may experience increased volatility due to its investments in those securities. SEI VP PRIME OBLIGATION FUND--The SEI VP Prime Obligation Fund seeks to preserve principal and maintain liquidity while providing current income. The Fund will attempt to maintain a constant $1.00 net asset value per share. There can be no assurance that the Fund will achieve its investment objective, or that the Fund will be able to maintain a constant $1.00 net asset value per share. Under normal circumstances, the Fund will invest exclusively in the following obligations of U.S. issuers (excluding foreign branches of U.S. banks or U.S. branches of foreign banks): (i) commercial paper (including asset-backed commercial paper) rated at least A-1 by S&P or Prime-1 by Moody's at the time of investment, or, if not rated, determined by the Adviser to be of comparable quality; (ii) obligations (including certificates of deposit, time deposits, bankers' acceptances and bank notes) of U.S. commercial banks or savings and loan institutions that are members of the Federal Reserve System or are insured by the Federal Deposit Insurance Corporation, which banks or institutions have total assets of $500 million or more as shown on their most recent public financial statements at the time of investment, provided that such obligations are rated in the top two NRSROs or short-term rating categories by two or more or one NRSRO if only one NRSRO has rated the security at the time of investment or, if not rated, determined by the sub-adviser to be of comparable quality; (iii) short-term corporate obligations rated (including asset backed securities) AAA or AA by S&P or Aaa or Aa by Moody's at the time of investment or, if not rated, determined by the sub-adviser to be of comparable quality; (iv) short-term obligations issued by state and local governmental issuers which are rated, at the time of investment, by at least two NRSROs in one of the two highest municipal bond rating categories, and which carry yields that are competitive with those of other types of money market instruments of comparable quality; (v) U.S. Treasury obligations and U.S. Government securities; and (vi) repurchase agreements involving any of the foregoing obligations. The Fund may lend its securities to qualified borrowers. S-12 DESCRIPTION OF PERMITTED INVESTMENTS AND RISK FACTORS AMERICAN DEPOSITARY RECEIPTS, EUROPEAN DEPOSITARY RECEIPTS, CONTINENTAL DEPOSITARY RECEIPTS AND GLOBAL DEPOSITARY RECEIPTS--ADRs are securities, typically issued by a U.S. financial institution (a "depositary"), that evidence ownership interests in a security or a pool of securities issued by a foreign issuer and deposited with the depositary. ADRs include American Depositary Shares and New York Shares. EDRs, which are sometimes referred to as Continental Depositary Receipts ("CDRs"), are securities, typically issued by a non-U.S. financial institution, that evidence ownership interests in a security or a pool of securities issued by either a U.S. or foreign issuer. GDRs are issued globally and evidence a similar ownership arrangement. Generally, ADRs are designed for trading in the U.S. securities market, EDRs are designed for trading in European securities market and GDRs are designed for trading in non-U.S. securities markets. ADRs, EDRs, CDRs and GDRs may be available for investment through "sponsored" or "unsponsored" facilities. A sponsored facility is established jointly by the issuer of the security underlying the receipt and a depositary, whereas an unsponsored facility may be established by a depositary without participation by the issuer of the reciept's underlying security. Holders of an unsponsored depositary receipt generally bear all the costs of the unsponsored facility. The depositary of an unsponsored facility frequently is under no obligation to distribute shareholder communications received from the issuer of the deposited security or to pass through to the holders of the receipts voting rights with respect to the deposited securities. ASSET-BACKED SECURITIES--Asset-backed securities are secured by non-mortgage assets such as company receivables, truck and auto loans, leases and credit card receivables. Such securities are generally issued as pass-through certificates, which represent undivided fractional ownership interests in the underlying pools of assets. Such securities also may be debt instruments, which are also known as collateralized obligations and are generally issued as the debt of a special purpose entity, such as a trust, organized solely for the purpose of owning such assets and issuing such debt. Credit support for asset-backed securities may be based on the underlying assets and/or provided through credit enhancements by a third party. Credit enhancement techniques include letters of credit, insurance bonds, limited guarantees (which are generally provided by the issuer), senior-subordinated structures and overcollateralization. A Fund may also invest in other asset-backed securities that may be created in the future if the advisers determine that they are suitable. Asset-backed securities are not issued or guaranteed by the U.S. Government or its agencies or instrumentalities; however, the payment of principal and interest on such obligations may be guaranteed up to certain amounts and for a certain period by a letter of credit issued by a financial institution (such as a bank or insurance company) unaffiliated with the issuers of such securities. The purchase of asset-backed securities raises risk considerations peculiar to the financing instruments underlying such securities. For example, there is a risk that another party could acquire an interest in the obligations superior to that of the holders of the asset-backed securities. There also is the possibility that recoveries on repossessed collateral may not, in some cases, be available to support payments on those securities. Asset-backed securities entail prepayment risk, which may vary depending on the type of asset, but is generally less than the prepayment risk associated with mortgage-backed securities. In addition, credit card receivables are unsecured obligations of the card holder. The market for asset-backed securities is at a relatively early stage of development. Accordingly, there may be limited secondary market for such securities. BANKERS' ACCEPTANCES--A banker's acceptance is a bill of exchange or time draft drawn on and accepted by a commercial bank. It is used by corporations to finance the shipment and storage of goods and to furnish dollar exchange. Maturities are generally six months or less. BRADY BONDS--Certain debt obligations, customarily referred to as "Brady Bonds," are created through the exchange of existing commercial bank loans to foreign entities for new obligations in connection with a debt restructuring. Brady Bonds have only been issued since 1989, and, accordingly, do S-13 not have a long payment history. In addition, they are issued by governments that may have previously defaulted on the loans being restructured by the Brady Bonds, so are subject to the risk of default by the issuer. They may be fully or partially collateralized or uncollateralized and issued in various currencies (although most are U.S. dollar denominated) and they are actively traded in the over-the-counter secondary market. U.S. dollar-denominated, collateralized Brady Bonds, which may be fixed rate par bonds or floating rate discount bonds, are generally collateralized in full as to principal due at maturity by U.S. Treasury zero coupon obligations which have the same maturity as the Brady Bonds. Certain interest payments on these Brady Bonds may be collateralized by cash or securities in an amount that, in the case of fixed rate bonds, is typically equal to between 12 and 18 months of rolling interest payments or, in the case of floating rate bonds, initially is typically equal to between 12 and 18 months rolling interest payments based on the applicable interest rate at that time and is adjusted at regular intervals thereafter with the balance of interest accruals in each case being uncollateralized. Payment of interest and (except in the case of principal collateralized Brady Bonds) principal on Brady Bonds with no or limited collateral depends on the willingness and ability of the foreign government to make payment. In the event of a default on collateralized Brady Bonds for which obligations are accelerated, the collateral for the payment of principal will not be distributed to investors, nor will such obligations be sold and the proceeds distributed. The collateral will be held by the collateral agent to the scheduled maturity of the defaulted Brady Bonds, which will continue to be outstanding, at which time the face amount of the collateral will equal the principal payments which would have then been due on the Brady Bonds in the normal course. Based upon current market conditions, a Fund would not intend to purchase Brady Bonds which, at the time of investment, are in default as to payment. However, in light of the residual risk of Brady Bonds and, among other factors, the history of default with respect to commercial bank loans by public and private entities of countries issuing Brady Bonds, investments in Brady Bonds are to be viewed as speculative. A substantial portion of the Brady Bonds and other sovereign debt securities in which a Fund invests in likely to be acquired at a discount, which involves certain additional considerations. Sovereign obligors in developing and emerging market countries are among the world's largest debtors to commercial banks, other governments, international financial organizations and other financial institutions. These obligors have in the past experienced substantial difficulties in servicing their external debt obligations, which led to defaults on certain obligations and the restructuring of certain indebtedness. Restructuring arrangements have included, among other things, reducing and rescheduling interest and principal payments by negotiating new or amended credit agreements or converting outstanding principal and unpaid interest to Brady Bonds, and obtaining new credit to finance interest payments. Holders of certain foreign sovereign debt securities may be requested to participate in the restructuring of such obligations and to extend further loans to their issuers. There can be no assurance that the Brady Bonds and other foreign sovereign debt securities in which the Fund may invest will not be subject to similar restructuring arrangements or to requests for new credit which may adversely affect a Fund's holdings. Furthermore, certain participants in the secondary market for such debt may be directly involved in negotiating the terms of these arrangements and may therefore have access to information not available to other market participants. CERTIFICATES OF DEPOSIT--A certificate of deposit is negotiable interest bearing instruments with specific maturities. Certificates of deposit are issued by banks and savings and loan institutions in exchange for the deposit of funds and normally can be traded in the secondary market, prior to maturity. Certificates of deposit have penalties for early withdrawal. COMMERCIAL PAPER--The term commercial paper is used to designate unsecured short-term promissory notes issued by corporations and other entities. Maturities on these issues vary from a few days to nine months. (See "Description of Ratings".) CONSTRUCTION LOANS--In general, construction loans are mortgages on multifamily homes that are insured by the Federal Housing Administration (FHA) under various federal programs of the National Housing Act of 1934 and its amendments. Several FHA programs have evolved to ensure the construction S-14 financing and permanent mortgage financing on multifamily residences, nursing homes, elderly residential facilities, and health care units. Project loans typically trade in two forms: either as FHA- or Government National Mortgage Association ("GNMA")-insured pass-through securities. In this case, a qualified issuer issues the pass-through securities while holding the underlying mortgage loans as collateral. Regardless of form, all projects are government-guaranteed by the U.S. Department of Housing and Urban Development (HUD) through the FHA insurance fund. The credit backing of all FHA and GNMA projects derives from the FHA insurance fund, and so projects issued in either form enjoy the full faith and credit backing of the U.S. Government. Most project pools consist of one large mortgage loan rather than numerous smaller mortgages, as is typically the case with agency single-family mortgage securities. As such, prepayments on projects are driven by the incentives most mortgagors have to refinance, and are very project-specific in nature. However, to qualify for certain government programs, many project securities contain specific prepayment restrictions and penalties. Under multifamily insurance programs, the government insures the construction financing of projects as well as the permanent mortgage financing on the completed structures. This is unlike the single-family mortgage market, in which the government only insures mortgages on completed homes. Investors purchase new projects by committing to fund construction costs on a monthly basis until the project is built. Upon project completion, an investors construction loan commitments are converted into a proportionate share of the final permanent project mortgage loan. The construction financing portion of a project trades in the secondary market as an insured Construction Loan Certificate (CLC). When the project is completed, the investor exchanges all the monthly CLCs for an insured Permanent Loan Certificate (PLC). The PLC is an insured pass-through security backed by the final mortgage on the completed property. As such, PLCs typically have a thirty-five to forty year maturity, depending on the type of final project. There are vastly more PLCs than CLCs in the market, owing to the long economic lives of the project structures. While neither CLCs or PLCs are as liquid as agency single-family mortgage securities, both are traded on the secondary market and would generally not be considered illiquid. The benefit to owning these securities is a relatively high yield combined with significant prepayment protection, which generally makes these types of securities more attractive when prepayments are expected to be high in the mortgage market. CLCs typically offer a higher yield due to the fact that they are somewhat more administratively burdensome to account for. CONVERTIBLE SECURITIES--Convertible securities are corporate securities that are exchangeable for a set number of another security at a prestated price. Convertible securities typically have characteristics similar to both fixed income and equity securities. Because of the conversion feature, the market value of a convertible security tends to move with the market value of the underlying stock. As a result, a Fund's selection of convertible securities is based, to a great extent, on the potential for capital appreciation that may exist in the underlying stock. The value of a convertible security is also affected by prevailing interest rates, the credit quality of the issuer, and any call provisions. EQUITY-LINKED WARRANTS--Equity-linked warrants provide a way for investors to access foreign markets where entry is difficult and time consuming due to regulation. Typically, a broker issues warrants to an investor and then purchases shares in the local market and issues a call warrant hedged on the underlying holding. If the investor exercises his call and closes his position the shares are sold and the warrant redeemed with the proceeds. Each warrant represents one share of the underlying stock, therefore, the price, performance and liquidity of the warrant are all directly linked to the underlying stock. The warrants can be redeemed for 100% of the value of the underlying stock (less transaction costs). Being American style warrants, they can be redeemed at any time. The warrants are U.S. dollar denominated and priced daily on several international stock exchanges. S-15 There are risks associated with equity-linked warrants. The investor will bear the full counterparty risk to the issuing broker, (but the advisers can mitigate this by only purchasing from issuers with the highest credit rating). They also have a longer settlement period because they go through the same registration process as the underlying shares (about three weeks) and during this time the shares cannot be sold. In addition, certain issuers of such warrants may be deemed to be "investment companies" as defined in the Investment Company Act of 1940, as amended (the "1940 Act"). As a result, the Fund's investment in such warrants may be limited by certain investment restrictions contained in the 1940 Act. EQUITY SECURITIES--Equity securities represent ownership interests in a company or corporation and consist of common stock, preferred stock, warrants and other rights to acquire such instruments. Equity securities may be listed on exchanges or traded in the over-the-counter market. Investments in common stocks are subject to market risks which may cause their prices to fluctuate over time. The value of convertible securities is also affected by prevailing interest rates, the credit quality of the issuer and any call provisions. Changes in the value of fund securities will not necessarily affect cash income derived from these securities, but will affect a Fund's net asset value. Investments in the equity securities of small capitalization companies involves greater risk than is customarily associated with larger, more established companies due to the greater business risks of small size, limited markets and financial resources, narrow product lines and the frequent lack of depth of management. The securities of small companies are often traded over-the-counter and may not be traded in volumes typical on a national securities exchange. Consequently, the securities of smaller companies may have limited market stability and may be subject to more abrupt or erratic market movements than securities of larger, more established growth companies or the market averages in general. THE EURO--The single currency for the European Economic and Monetary Union ("EMU") began replacing the national currencies for participating countries on January 1, 1999 and is scheduled to be completed in July 2002. At the end of that period, use of the euro will be compulsory and countries in the EMU will no longer maintain separate currencies in any form. Until then, however, each country and issuers within each country are free to choose whether to use the euro. Implementation of this plan means that financial transactions and market information in participating countries, including share quotations and company accounts, will be denominated in euros. A significant percentage of the stock exchange capitalization of the total European market may be reflected in Euros, and participating governments will issue their bonds in Euros. Monetary policy for participating countries will be uniformly managed by a new central bank, the European Central Bank (ECB). Although it is not possible to predict the eventual impact of the Euro implementation plan on the Funds, the transition to the Euro has changed the economic environment and behavior of investors, particularly in European markets. For example, investors may begin to view those countries participating in the EMU as a single entity, and the advisers may need to adapt their investment strategy accordingly. The process of implementing the Euro also may adversely affect financial markets world-wide and may result in changes in the relative strength and value of the U.S. dollar or other major currencies, as well as possible adverse tax consequences. The ongoing transition to the Euro is likely to have a significant impact on fiscal and monetary policy in the participating countries and may produce unpredictable effects on trade and commerce generally. These resulting uncertainties could create increased volatility in financial markets world-wide. FIXED INCOME SECURITIES--Fixed income securities consist primarily of debt obligations issued by governments, corporations, municipalities and other borrowers, but may also include structured securities that provide for participation interests in debt obligations. The market value of fixed income investments will generally change in response to interest rate changes and other factors. During periods of falling interest rates, the values of outstanding fixed income securities generally rise. Conversely, during periods of rising interest rates, the values of such securities generally decline. Moreover, while securities with longer maturities tend to produce higher yields, the prices of longer maturity securities are also S-16 subject to greater market fluctuations as a result of changes in interest rates. Changes by recognized agencies in the rating of any fixed income security and in the ability of an issuer to make payments of interest and principal also affect the value of these investments. Changes in the value of these securities will not affect cash income derived from these securities, but will affect a Fund's net asset value. Fixed income securities are considered investment grade if they are rated in one of the four highest rating categories by an NRSRO, or, if not rated, are determined to be of comparable quality by a Fund's advisers. The "Appendix" to this Statement of Additional Information sets forth a description of the bond rating categories of several NRSROs. Ratings of each NRSRO represents its opinion of the safety of principal and interest payments (and not the market risk) of bonds and other fixed income securities it undertakes to rate at the time of issuance. Ratings are not absolute standards of quality and may not reflect changes in an issuer's creditworthiness. Fixed income securities rated BBB or Baa lack outstanding investment characteristics, and have speculative characteristics as well. In the event a security owned by a Fund is downgraded, the adviser will review the situation and take appropriate action with regard to the security. FOREIGN CURRENCY TRANSACTIONS--Certain of the Funds may enter into forward foreign currency contracts to manage foreign currency exposure and as a hedge against possible variations in foreign exchange rates. The Funds may enter into forward foreign currency contracts to hedge a specific security transaction or to hedge a portfolio position. These contracts may be bought or sold to protect the Funds, to some degree, against possible losses resulting from an adverse change in the relationship between foreign currencies and the U.S. dollar. The Funds also may invest in foreign currency futures and in options on currencies. FOREIGN AND EMERGING MARKET SECURITIES--Foreign and emerging market securities may consist of obligations of foreign branches of U.S. banks and foreign banks, including European Certificates of Deposit, European Time Deposits, Canadian Time Deposits and Yankee Certificates of Deposit and investments in Canadian Commercial Paper, foreign securities and Europaper. In addition, a Fund may invest in ADRs traded on registered exchanges or NASDAQ. While a Fund expects to invest primarily in sponsored ADRs, a joint arrangement between the issuer and the depositary, some ADRs may be unsponsored. These instruments may subject a Fund to investment risks that differ in some respects from those related to investments in obligations of U.S. domestic issuers. Such risks include future adverse political and economic developments, the possible imposition of withholding taxes on interest or other income, possible seizure, nationalization, or expropriation of foreign deposits, the possible establishment of exchange controls or taxation at the source, greater fluctuations in value due to changes in the exchange rates, or the adoption of other foreign governmental restrictions which might adversely affect the payment of principal and interest on such obligations, less uniformity in accounting and reporting requirements, the possibility that there will be less information on such securities and their issuers available to the public, the difficulty of obtaining or enforcing court judgments abroad, restrictions on foreign investments in other jurisdictions, difficulties in effecting repatriation of capital invested abroad and difficulties in transaction settlements and the effect of delay on shareholder equity. Foreign securities may be subject to foreign taxes, and may be less marketable than comparable U.S. securities. The value of a Fund's investments denominated in foreign currencies will depend on the relative strengths of those currencies and the U.S. dollar, and a Fund may be affected favorably or unfavorably by changes in the exchange rates or exchange or currency control regulations between foreign currencies and the U.S. dollar. Changes in foreign currency exchange rates also may affect the value of dividends and interest earned, gains and losses realized on the sale of securities and net investment income and gains if any, to be distributed to shareholders by a Fund. Such investments may also entail higher custodial fees and sales commissions than domestic investments. Foreign issuers of securities or obligations are often subject to accounting treatment and engage in business practices different from those respecting domestic issuers of similar securities or obligations. Foreign branches of U.S. banks and foreign banks may be subject to less stringent reserve requirements than those applicable to domestic branches of U.S. banks. S-17 A Fund's investments in emerging markets can be considered speculative, and therefore may offer higher potential for gains and losses than investments in developed markets of the world. With respect to any emerging country, there may be a greater potential for nationalization, expropriation or confiscatory taxation, political changes, government regulation, social instability or diplomatic developments (including war) which could affect adversely the economies of such countries or investments in such countries. The economies of developing countries generally are heavily dependent upon international trade and, accordingly, have been and may continue to be adversely affected by trade barriers, exchange or currency controls, managed adjustments in relative currency values and other protectionist measures imposed or negotiated by the countries with which they trade. In addition to the risks of investing in emerging market country debt securities, a Fund's investment in government, government-related and restructured debt instruments are subject to special risks, including the inability or unwillingness to repay principal and interest, requests to reschedule or restructure outstanding debt, and requests to extend additional loan amounts. A Fund may have limited recourse in the event of default on such debt instruments. FORWARD FOREIGN CURRENCY CONTRACTS--A forward foreign currency contract involves an obligation to purchase or sell a specified currency at a future date at a price set at the time of the contract, agreed upon by the parties, at a price set at the time of contract. A Fund may enter into a contract to sell, for a fixed amount of U.S. dollars or other appropriate currency, the amount of foreign currency approximating the value of some or all of the Fund's securities denominated in such foreign currency. Forward currency contracts do not eliminate fluctuations in the values of fund securities but rather allow a Fund to establish a rate of exchange for a future point in time. At the maturity of a forward contract, the Fund may either sell a fund security and make delivery of the foreign currency, or it may retain the security and terminate its contractual obligation to deliver the foreign currency by purchasing an "offsetting" contract with the same currency trader, obligating it to purchase, on the same maturity date, the same amount of the foreign currency. The Fund may realize a gain or loss from currency transactions. When entering into a contract for the purchase or sale of a security in a foreign currency, a Fund may enter into a foreign forward currency contract for the amount of the purchase or sale price to protect against variations, between the date the security is purchased or sold and the date on which payment is made or received, in the value of the foreign currency relative to the U.S. dollar or other foreign currency. Also, when an adviser anticipates that a particular foreign currency may decline substantially relative to the U.S. dollar or other leading currencies, in order to reduce risk, a Fund may enter into a forward contract to sell, for a fixed amount, the amount of foreign currency approximating the value of its securities denominated in such foreign currency. With respect to any such forward foreign currency contract, it generally will not be possible to match precisely the amount covered by that contract and the value of the securities involved due to changes in the values of such securities resulting from market movements between the date the forward contract is entered into and the date it matures. In addition, while forward currency contracts may offer protection from losses resulting from declines in value of a particular foreign currency, they also limit potential gains which might result from increases in the value of such currency. A Fund will also incur costs in connection with forward foreign currency contracts and conversions of foreign currencies into U.S. dollars. A Fund will place assets in a segregated account to assure that its obligations under forward foreign currency contracts are covered. FUTURES AND OPTIONS ON FUTURES--Futures contracts provide for the future sale by one party and purchase by another party of a specified amount of a specific security at a specified future time and at a specified price. An option on a futures contract gives the purchaser the right, in exchange for a premium, to assume a position in a futures contract at a specified exercise price during the term of the option. A Fund may use futures contracts and related options for BONA FIDE hedging and risk management purposes, including to offset changes in the value of securities held or expected to be acquired or be disposed of, to minimize fluctuations in foreign currencies, or to gain exposure to a particular market or instrument. A S-18 Fund will seek to minimize the risk that it will be unable to close out a futures contract by only entering into futures contracts which are traded on national futures exchanges. An index futures contract is a bilateral agreement pursuant to which two parties agree to take or make delivery of an amount of cash equal to a specified dollar amount times the difference between the index value at the close of trading of the contract and the price at which the futures contract is originally struck. No physical delivery of the securities comprising the index is made; generally contracts are closed out prior to the expiration date of the contract. In order to avoid leveraging and related risks, when a Fund invests in futures contracts, it will cover its position by earmarking or segregating an amount of cash or liquid securities, equal to the market value of the futures positions held, less margin deposits, and that amount will be marked to market on a daily basis. A Fund may enter into futures contracts and options on futures contracts traded on an exchange regulated by the Commodities Futures Trading Commission ("CFTC"), as long as, to the extent that such transactions are not for "bona fide hedging purposes," the aggregate initial margin and premiums on such positions (excluding the amount by which such options are in the money) do not exceed 5% of a Fund's net assets. There are risks associated with these activities, including the following: (1) the success of a hedging strategy may depend on an ability to predict movements in the prices of individual securities, fluctuations in markets and movements in interest rates; (2) there may be an imperfect or no correlation between the changes in market value of the securities held by the Fund and the prices of futures and options on futures; (3) there may not be a liquid secondary market for a futures contract or option; (4) trading restrictions or limitations may be imposed by an exchange; and (5) government regulations may restrict trading in futures contracts and futures options. In addition, some strategies reduce a Fund's exposure to price fluctuations, while others tend to increase its market exposure. Futures and options on futures can be volatile instruments and involve certain risks that could negatively impact a Fund's return. HIGH YIELD FOREIGN SOVEREIGN DEBT SECURITIES--Investing in fixed and floating rate high yield foreign sovereign debt securities will expose a Fund to the direct or indirect consequences of political, social or economic changes in the countries that issue the securities. The ability of a foreign sovereign obligor to make timely payments on its external debt obligations will also be strongly influenced by the obligor's balance of payments, including export performance, its access to international credits and investments, fluctuations in interest rates and the extent of its foreign reserves. Countries such as those in which the Fund may invest have historically experienced, and may continue to experience, high rates of inflation, high interest rates, exchange rate or trade difficulties and extreme poverty and unemployment. Many of these countries are also characterized by political uncertainty or instability. Additional factors which may influence the ability or willingness to service debt include, but are not limited to, a country's cash flow situation, the availability of sufficient foreign exchange on the date a payment is due, the relative size of its debt service burden to the economy as a whole, and its government's policy towards the International Monetary Fund, the World Bank and other international agencies. A country whose exports are concentrated in a few commodities or whose economy depends on certain strategic imports could be vulnerable to fluctuations in international prices of these commodities or imports. To the extent that a country receives payment for its exports in currencies other than dollars, its ability to make debt payments denominated in dollars could be adversely affected. If a foreign sovereign obligor cannot generate sufficient earnings from foreign trade to service its external debt, it may need to depend on continuing loans and aid from foreign governments, commercial banks and multilateral organizations and inflows of foreign investment. The commitment on the part of these foreign governments, multilateral organizations and others to make such disbursements may be conditioned on the government's implementation of economic reforms and/or economic performance and the timely service of its obligations. Failure to implement such reforms, achieve such levels of economic performance or repay principal or interest when due may result in the cancellation of such third parties' commitments to lend funds, which may further impair the obligor's ability or willingness to timely service its debts. S-19 ILLIQUID SECURITIES--Illiquid securities are securities that cannot be disposed of within seven business days at approximately the price at which they are being carried on the Fund's books. Illiquid securities include demand instruments with a demand notice period exceeding seven days, securities for which there is no active secondary market, and repurchase agreements with durations over 7 days in length. The SEI VP Emerging Markets Equity Fund's advisers believe that carefully selected investments in joint ventures, cooperatives, partnerships, private placements, unlisted securities and other similar situations (collectively, "special situations") could enhance its capital appreciation potential. Investments in special situations may be illiquid, as determined by the SEI VP Emerging Markets Equity Fund's advisers based on criteria approved by the Board of Trustees. To the extent these investments are deemed illiquid, the SEI VP Emerging Markets Equity Fund's investment in them will be consistent with its 15% restriction on investment in illiquid securities. INVESTMENT COMPANIES--Because of restrictions on direct investment by U.S. entities in certain countries, investment in other investment companies may be the most practical or only manner in which an international and global fund can invest in the securities markets of those countries. A Fund does not intend to invest in other investment companies unless, in the judgment of its advisers, the potential benefits of such investments exceed the associated costs (which includes any investment advisory fees charged by the investment companies) relative to the benefits and costs associated with direct investments in the underlying securities. Investments in closed-end investment companies may involve the payment of substantial premiums above the net asset value of such issuers' fund securities, and are subject to limitations under the 1940 Act. A Fund may incur tax liability to the extent it invests in the stock of a foreign issuer that constitutes a "passive foreign investment company." LOAN PARTICIPATIONS AND ASSIGNMENTS--Loan participations are interests in loans to corporations or governments which are administered by the lending bank or agent for a syndicate of lending banks, and sold by the lending bank, financial institution or syndicate member ("intermediary bank"). In a loan participation, the borrower will be deemed to be the issuer of the participation interest, except to the extent the Fund derives its rights from the intermediary bank. Because the intermediary bank does not guarantee a loan participation in any way, a loan participation is subject to the credit risks generally associated with the underlying borrower. In the event of the bankruptcy or insolvency of the borrower, a loan participation may be subject to certain defenses that can be asserted by such borrower as a result of improper conduct by the intermediary bank. In addition, in the event the underlying borrower fails to pay principal and interest when due, the Fund may be subject to delays, expenses and risks that are greater than those that would have been involved if the Fund had purchased a direct obligation of such borrower. Under the terms of a loan participation, the Fund may be regarded as a creditor of the intermediary bank, (rather than of the underlying borrower), so that the Fund may also be subject to the risk that the intermediary bank may become insolvent. Loan assignments are investments in assignments of all or a portion of certain loans from third parties. When a Fund purchases assignments from lenders it will acquire direct rights against the borrower on the loan. Since assignments are arranged through private negotiations between potential assignees and assignors, however, the rights and obligations acquired by the Fund may differ from, and be more limited than, those held by the assigning lender. Loan participations and assignments may be considered liquid, as determined by the Funds' advisers based on criteria approved by the Board of Trustees. LOWER RATED SECURITIES--Lower-rated bonds are commonly referred to as "junk bonds" or high yield/high risk securities. These securities are rated lower than "Baa" or "BBB" by an NRSRO. These ratings indicate that the obligations are speculative and may be in default. Fixed income securities are subject to the risk of an issuer's ability to meet principal and interest payments on the obligation (credit risk), and may also be subject to price volatility due to such factors as interest rate sensitivity, market S-20 perception of the creditworthiness of the issuer and general market liquidity (market risk). Lower rated or unrated (I.E., high yield) securities are more likely to react to developments affecting market and credit risk than are more highly rated securities, which primarily react to movements in the general level of interest rates. Yields and market values of high yield securities will fluctuate over time, reflecting not only changing interest rates but the market's perception of credit quality and the outlook for economic growth. When economic conditions appear to be deteriorating, medium to lower rated securities may decline in value due to heightened concern over credit quality, regardless of prevailing interest rates. Investors should carefully consider the relative risks of investing in high yield securities and understand that such securities generally are not meant for short-term investing. The high yield market is relatively new and its growth paralleled a long period of economic expansion and an increase in merger, acquisition and leveraged buyout activity. Adverse economic developments can disrupt the market for high yield securities, and severely affect the ability of issuers, especially highly leveraged issuers, to service their debt obligations or to repay their obligations upon maturity which may lead to a higher incidence of default on such securities. In addition, the secondary market for high yield securities, which is concentrated in relatively few market makers, may not be as liquid as the secondary market for more highly rated securities. As a result, a Fund's advisers could find it more difficult to sell these securities or may be able to sell the securities only at prices lower than if such securities were widely traded. Furthermore, a Fund may experience difficulty in valuing certain securities at certain times. Prices realized upon the sale of such lower rated or unrated securities, under these circumstances, may be less than the prices used in calculating such Fund's net asset value. Prices for high yield securities may also be affected by legislative and regulatory developments. Lower rated or unrated fixed income obligations also present risks based on payment expectations. If an issuer calls the obligations for redemption, a Fund may have to replace the security with a lower yielding security, resulting in a decreased return for investors. If a Fund experiences unexpected net redemptions, it may be forced to sell its higher rated securities, resulting in a decline in the overall credit quality of the Fund's investment portfolio and increasing the exposure of the Fund to the risks of high yield securities. GROWTH OF HIGH YIELD BOND, HIGH-RISK BOND MARKET. The widespread expansion of government, consumer and corporate debt within the U.S. economy has made the corporate sector more vulnerable to economic downturns or increased interest rates. Further, an economic downturn could severely disrupt the market for lower rated bonds and adversely affect the value of outstanding bonds and the ability of the issuers to repay principal and interest. SENSITIVITY TO INTEREST RATE AND ECONOMIC CHANGES. Lower rated bonds are very sensitive to adverse economic changes and corporate developments. During an economic down turn or substantial period of rising interest rates, highly leveraged issuers may experience financial stress that would adversely affect their ability to service their principal and interest payment obligations, to meet projected business goals, and to obtain additional financing. If the issuer of a bond defaulted on its obligations to pay interest or principal or entered into bankruptcy proceedings, a Fund may incur losses or expenses in seeking recovery of amounts owed to it. In addition, periods of economic uncertainty and change can be expected to result in increased volatility of market prices of high-yield, high-risk bonds and a Fund's net asset value. PAYMENT EXPECTATIONS. High-yield, high-risk bonds may contain redemption or call provisions. If an issuer exercised these provisions in a declining interest rate market, a Fund would have to replace the security with a lower yielding security, resulting in a decreased return for investors. Conversely, a high- yield, high-risk bond's value will decrease in a rising interest rate market, as will the value of a Fund's assets. If a Fund experiences significant unexpected net redemptions, this may force it to sell high-yield, high-risk bonds without regard to their investment merits, thereby decreasing the asset base upon which expenses can be spread and possibly reducing the Fund's rate of return. S-21 LIQUIDITY AND VALUATION. There may be little trading in the secondary market for particular bonds, which may adversely affect a Fund's ability to value accurately or dispose of such bonds. Adverse publicity and investor perception, whether or not based on fundamental analysis, may decrease the value and liquidity of high-yield, high-risk bonds, especially in a thin market. CERTAIN DISTRIBUTION REQUIREMENTS. A Fund may purchase debt securities (such as zero-coupon or pay-in-kind securities) that contain original issue discount. Original issue discount that accretes in a taxable year is treated as earned by a Fund and therefore is subject to the distribution requirements of the Internal Revenue Code of 1986, as amended (the "Code"). Because the original issue discount earned by a Fund in a taxable year may not be represented by cash income, the Fund may have to dispose of other securities and use the proceeds to make distributions to shareholders. MONEY MARKET SECURITIES--Money market securities are dollar- and nondollar-denominated, short-term debt instruments. They consist of: (i) bankers' acceptances, certificates of deposits, notes and time deposits of U.S. and foreign banks; (ii) U.S. Treasury obligations and obligations issued or guaranteed by the agencies and instrumentalities of the U.S. Government; (iii) commercial paper issued by U.S. and foreign corporations; (iv) repurchase agreements involving any of the foregoing obligations entered into with banks and broker-dealers; and (v) foreign government obligations. MORTGAGE-BACKED SECURITIES--Mortgage-backed securities in which the Funds (except the SEI VP Prime Obligation Fund) may invest represent pools of mortgage loans assembled for sale to investors by various government agencies such as the GNMA and certain government-related organizations such as Fannie Mae and the Federal Home Loan Mortgage Corporation ("FHLMC"). The SEI VP High Yield Bond Fund also may invest in pools of mortgage loans from nongovernmental issuers such as commercial banks, savings and loan institutions, mortgage bankers, and private mortgage insurance companies. Mortgage-backed securities are instruments that entitle the holder to a share of all interest and principal payments from mortgages underlying the security. The mortgages backing these securities include conventional fifteen- and thirty-year fixed-rate mortgages, graduated payment mortgages, adjustable rate mortgages and balloon mortgages. During periods of declining interest rates, prepayment of mortgages underlying mortgage-backed securities can be expected to accelerate. Prepayment of mortgages which underlie securities purchased at a premium often results in capital losses, while prepayment of mortgages purchased at a discount often results in capital gains. Because of these unpredictable prepayment characteristics, it is often not possible to predict accurately the average life or realized yield of a particular issue. Although certain mortgage-backed securities are guaranteed by a third party or otherwise similarly secured, the market value of the security, which may fluctuate, is not so secured. If a Fund purchases a mortgage-backed security at a premium, that portion may be lost if there is a decline in the market value of the security whether resulting from changes in interest rates or prepayments in the underlying mortgage collateral. As with other interest-bearing securities, the prices of such securities are inversely affected by changes in interest rates. However, though the value of a mortgage-backed security may decline when interest rates rise, the converse is not necessarily true since in periods of declining interest rates the mortgages underlying the securities are prone to prepayment. For this and other reasons, a mortgage-backed security's stated maturity may be shortened by unscheduled prepayments on the underlying mortgages and, therefore, it is not possible to predict accurately the security's return to a Fund. In addition, regular payments received in respect of mortgage-backed securities include both interest and principal. No assurance can be given as to the return a Fund will receive when these amounts are reinvested. A Fund may also invest in mortgage-backed securities that are collateralized mortgage obligations structured on pools of mortgage pass-through certificates or mortgage loans. For purposes of determining the average maturity of a mortgage-backed security in its investment portfolio, the SEI VP Core Fixed Income Fund will utilize the expected average life of the security, as estimated in good faith by the Fund's advisers. Unlike most single family residential mortgages, commercial real estate property loans often contain provisions which substantially reduce the likelihood that such securities will be prepaid. The S-22 provisions generally impose significant prepayment penalties on loans and, in some cases there may be prohibitions on principal prepayments for several years following origination. GOVERNMENT PASS-THROUGH SECURITIES: These are securities that are issued or guaranteed by a U.S. Government agency representing an interest in a pool of mortgage loans. The primary issuers or guarantors of these mortgage-backed securities are the Fannie Mae and the FHLMC. Fannie Mae and FHLMC obligations are not backed by the full faith and credit of the U.S. Government as GNMA certificates are, but Fannie Mae and FHLMC securities are supported by the instrumentalities' right to borrow from the U.S. Treasury. GNMA, Fannie Mae and FHLMC each guarantee timely distributions of interest to certificate holders. GNMA and Fannie Mae also each guarantee timely distributions of scheduled principal. There are a number of important differences among the agencies and instrumentalities of the U.S. Government that issue mortgage-backed securities and among the securities that they issue. Mortgage-backed securities issued by GNMA include GNMA Mortgage Pass-Through Certificates (also known as "Ginnie Maes") which are guaranteed as to the timely payment of principal and interest by GNMA and are backed by the full faith and credit of the United States. GNMA certificates also are supported by the authority of GNMA to borrow funds from the U.S. Treasury to make payments under its guarantee. Mortgage-backed securities issued by Fannie Mae include Fannie Mae Guaranteed Mortgage Pass- Through Certificates (also known as "Fannie Maes") which are solely the obligations of Fannie Mae and are not backed by or entitled to the full faith and credit of the United States. Fannie Mae is a government-sponsored organization owned entirely by private stockholders. Fannie Maes are guaranteed as to timely payment of the principal and interest by Fannie Mae. Mortgage-backed securities issued by FHLMC include FHLMC Mortgage Participation Certificates (also known as "Freddie Macs" or "PCs"). FHLMC is a corporate instrumentality of the United States, created pursuant to an Act of Congress, which is owned entirely by Federal Home Loan Banks. Freddie Macs are not guaranteed by the United States or by any Federal Home Loan Banks and do not constitute a debt or obligation of the United States or of any Federal Home Loan Bank. Freddie Macs entitle the holder to timely payment of interest, which is guaranteed by FHLMC. FHLMC guarantees either ultimate collection or timely payment of all principal payments on the underlying mortgage loans. FHLMC has in the past guaranteed only the ultimate collection of principal of the underlying mortgage loan; however, FHLMC now issues mortgage-backed securities (FHLMC Gold PCs) which also guarantee timely payment of monthly principal reductions. Government and private guarantees do not extend to the securities' value, which is likely to vary inversely with fluctuations in interest rates. When FHLMC does not guarantee timely payment of principal, FHLMC may remit the amount due on account of its guarantee of ultimate payment of principal at any time after default on an underlying mortgage, but in no event later than one year after it becomes payable. PRIVATE PASS-THROUGH SECURITIES: These are mortgage-backed securities issued by a non-governmental entity, such as a trust. While they are generally structured with one or more types of credit enhancement, private pass-through securities typically lack a guarantee by an entity having the credit status of a governmental agency or instrumentality. COMMERCIAL MORTGAGE-BACKED SECURITIES ("CMBS"): CMBS are generally multi-class or pass-through securities backed by a mortgage loan or a pool of mortgage loans secured by commercial property, such as industrial and warehouse properties, office buildings, retail space and shopping malls, multifamily properties and cooperative apartments. The commercial mortgage loans that underlie CMBS have certain distinct characteristics. Commercial mortgage loans are generally not amortizing or not fully amortizing. That is, at their maturity date, repayment of the remaining principal balance or "balloon" is due and is repaid through the attainment of an additional loan of sale of the property. Unlike most single family residential mortgages, commercial real estate property loans often contain provisions which substantially reduce the likelihood that such securities will be prepaid. The provisions generally impose significant prepayment penalties on loans and, in some cases there may be prohibitions on principal prepayments for several years following origination. S-23 COLLATERALIZED MORTGAGE OBLIGATIONS ("CMOS"): CMOs are debt obligations of multiclass pass-through certificates issued by agencies or instrumentalities of the U.S. Government or by private originators or investors in mortgage loans. In a CMO, series of bonds or certificates are usually issued in multiple classes. Principal and interest paid on the underlying mortgage assets may be allocated among the several classes of a series of a CMO in a variety of ways. Each class of a CMO is issued with a specific fixed or floating coupon rate and has a stated maturity or final distribution date. REMICS: A REMIC is a CMO that qualifies for special tax treatment under the Code and invests in certain mortgages principally secured by interests in real property. Guaranteed REMIC pass-through certificates ("REMIC Certificates") issued by Fannie Mae or FHLMC represent beneficial ownership interests in a REMIC trust consisting principally of mortgage loans or Fannie Mae, FHLMC or GNMA-guaranteed mortgage pass-through certificates. STRIPPED MORTGAGE-BACKED SECURITIES ("SMBS"): SMBs are usually structured with two classes that receive specified proportions of the monthly interest and principal payments from a pool of mortgage securities. One class may receive all of the interest payments while the other class may receive all of the principal payments. SMBs are extremely sensitive to changes in interest rates because of the impact thereon of prepayment of principal on the underlying mortgage securities. The market for SMBs is not as fully developed as other markets; SMBs therefore may be illiquid. PARALLEL PAY SECURITIES; PAC BONDS: Parallel pay CMOs and REMICS are structured to provide payments of principal on each payment date to more than one class. These simultaneous payments are taken into account in calculating the stated maturity date or final distribution date of each class, which must be retired by its stated maturity date or final distribution date, but may be retired earlier. It is possible that payments on one class of parallel pay security may be deferred or subordinated to payments on other classes. Planned Amortization Class CMOs ("PAC Bonds") generally require payments of a specified amount of principal on each payment date. PAC Bonds are always parallel pay CMOs with the required principal payment on such securities having the highest priority after interest has been paid to all classes. MORTGAGE DOLLAR ROLLS--Mortgage "dollar rolls" or "covered rolls" are transactions in which a Fund sells securities (usually mortgage-backed securities) and simultaneously contracts to repurchase typically in 30 or 60 days, substantially similar, but not identical, securities on a specified future date. During the roll period, a Fund foregoes principal and interest paid on such securities. A Fund is compensated by the difference between the current sales price and the forward price for the future purchase (often referred to as the "drop") as well as by the interest earned on the cash proceeds of the initial sale. At the end of the roll commitment period, a Fund may or may not take delivery of the securities it has contracted to purchase. Mortgage dollar rolls may be renewed prior to cash settlement and initially may involve only a firm commitment agreement by the Fund to buy a security. A "covered roll" is a specific type of mortgage dollar roll for which there is an offsetting cash position or cash equivalent securities position that matures on or before the forward settlement date of the mortgage dollar roll transaction. As used herein the term "mortgage dollar roll" refers to mortgage dollar rolls that are not "covered rolls." If the broker-dealer to whom the Fund sells the security becomes insolvent, the Fund's right to repurchase the security may be restricted. Other risks involved in entering into mortgage dollar rolls include the risk that the value of the security may change adversely over the term of the mortgage dollar roll and that the security the Fund is required to repurchase may be worth less than the security that the Fund originally held. To avoid any leveraging concerns, the Fund will place liquid securities in a segregated account in an amount sufficient to cover its repurchase obligation. MUNICIPAL SECURITIES--Municipal securities consist of (i) debt obligations issued by or on behalf of public authorities to obtain funds to be used for various public facilities, for refunding outstanding obligations, for general operating expenses, and for lending such funds to other public institutions and facilities, and (ii) certain private activity and industrial development bonds issued by or on behalf of public S-24 authorities to obtain funds to provide for the construction, equipment, repair or improvement of privately operated facilities. The two principal classifications of Municipal Securities are "general obligation" and "revenue" issues. General obligation issues are issues involving the credit of an issuer possessing taxing power and are payable from the issuer's general unrestricted revenues, although the characteristics and method of enforcement of general obligation issues may vary according to the law applicable to the particular issuer. Revenue issues are payable only from the revenues derived from a particular facility or class of facilities or other specific revenue source. A Fund may also invest in "moral obligation" issues, which are normally issued by special purpose authorities. Moral obligation issues are not backed by the full faith and credit of the state and are generally backed by the agreement of the issuing authority to request appropriations from the state legislative body. Municipal Securities include debt obligations issued by governmental entities to obtain funds for various public purposes, such as the construction of a wide range of public facilities, the refunding of outstanding obligations, the payment of general operating expenses, and the extension of loans to other public institutions and facilities. Certain private activity bonds that are issued by or on behalf of public authorities to finance various privately-owned or operated facilities are included within the term "Municipal Securities." Private activity bonds and industrial development bonds are generally revenue bonds, the credit and quality of which are directly related to the credit of the private user of the facilities. Municipal Securities may also include general obligation notes, tax anticipation notes, bond anticipation notes, revenue anticipation notes, project notes, certificates of indebtedness, demand notes, tax-exempt commercial paper, construction loan notes and other forms of short-term, tax-exempt loans. Such instruments are issued with a short-term maturity in anticipation of the receipt of tax funds, the proceeds of bond placements or other revenues. Project notes are issued by a state or local housing agency and are sold by the Department of Housing and Urban Development. While the issuing agency has the primary obligation with respect to its project notes, they are also secured by the full faith and credit of the United States through agreements with the issuing authority which provide that, if required, the federal government will lend the issuer an amount equal to the principal of and interest on the project notes. The quality of Municipal Securities, both within a particular classification and between classifications, will vary, and the yields on Municipal Securities depend upon a variety of factors, including general money market conditions, the financial condition of the issuer (or other entity whose financial resources are supporting the securities), general conditions of the municipal bond market, the size of a particular offering, the maturity of the obligation and the rating(s) of the issue. In this regard, it should be emphasized that the ratings of any NRSRO are general and are not absolute standards of quality. Municipal Securities with the same maturity, interest rate and rating(s) may have different yields, while Municipal Securities of the same maturity and interest rate with different rating(s) may have the same yield. An issuer's obligations under its Municipal Securities are subject to the provisions of bankruptcy, insolvency, and other laws affecting the rights and remedies of creditors, such as the Federal Bankruptcy Code, and laws, if any, which may be enacted by Congress or state legislatures extending the time for payment of principal or interest, or both, or imposing other constraints upon the enforcement of such obligations or upon the ability of municipalities to levy taxes. The power or ability of an issuer to meet its obligations for the payment of interest on and principal of its Municipal Securities may be materially adversely affected by litigation or other conditions. NON-DIVERSIFICATION--The SEI VP International Fixed Income and SEI VP Emerging Markets Debt Funds are non-diversified investment companies, as defined in the 1940 Act, which means that a relatively high percentage of assets of the Funds may be invested in the obligations of a limited number of issuers. Although the advisers generally do not intend to invest more than 5% of each Fund's assets in any single issuer (with the exception of securities which are issued or guaranteed by a national government), the value of shares of the Funds may be more susceptible to any single economic, political or regulatory occurrence than the shares of a diversified investment company would be. The Funds intend to satisfy the S-25 diversification requirements necessary to qualify as a regulated investment company under the Code, which requires that the Funds be diversified (I.E., not invest more than 5% of their assets in the securities in any one issuer) as to 50% of their assets. OBLIGATIONS OF SUPRANATIONAL AGENCIES--Supranational entities are entities established through the joint participation of several governments, and include the Asian Development Bank, the Inter-American Development Bank, International Bank for Reconstruction and Development (World Bank), African Development Bank, European Economic Community, European Investment Bank and the Nordic Investment Bank. The governmental members, or "stockholders," usually make initial capital contributions to the supranational entity and, in many cases, are committed to make additional capital contributions if the supranational entity is unable to repay its borrowings. OPTIONS--A Fund may purchase and write put and call options on indices or securities and enter into related closing transactions. A put option on a security gives the purchaser of the option the right to sell, and the writer of the option the obligation to buy, the underlying security at any time during the option period. A call option on a security gives the purchaser of the option the right to buy, and the writer of the option the obligation to sell, the underlying security at any time during the option period. The premium paid to the writer is the consideration for undertaking the obligations under the option contract. Options on an index give the holder the right to receive, upon exercise of the option, an amount of cash if the closing level of the underlying index is greater than (or less than, in the case of puts) the exercise price of the option. Alternatively, a Fund may choose to terminate an option position by entering into a closing transaction. All settlements are in cash, and gain or loss depends on price movements in the particular market represented by the index generally, rather than the price movements in individual securities. All options written on indices or securities must be covered. When a Fund writes an option or security on an index, it will establish a segregated account containing cash or liquid securities in an amount at least equal to the market value of the option and will maintain the account while the option is open, or will otherwise cover the transaction. The initial purchase (sale) of an option contract is an "opening transaction." In order to close out an option position, a Fund may enter into a "closing transaction," which is simply the sale (purchase) of an option contract on the same security with the same exercise price and expiration date as the option contract originally opened. If a Fund is unable to effect a closing purchase transaction with respect to an option it has written, it will not be able to sell the underlying security until the option expires or the Fund delivers the security upon exercise. A Fund may purchase put and call options on securities to protect against a decline in the market value of the securities in its portfolio or to anticipate an increase in the market value of securities that the Fund may seek to purchase in the future. A Fund purchasing put and call options pays a premium therefor. If price movements in the underlying securities are such that exercise of the options would not be profitable for the Fund, loss of the premium paid may be offset by an increase in the value of the Fund's securities or by a decrease in the cost of acquisition of securities by the Fund. A Fund may write covered call options on securities as a means of increasing the yield on its fund and as a means of providing limited protection against decreases in its market value. When a Fund writes an option, if the underlying securities do not increase or decrease to a price level that would make the exercise of the option profitable to the holder thereof, the option generally will expire without being exercised and the Fund will realize as profit the premium received for such option. When a call option of which a Fund is the writer is exercised, the Fund will be required to sell the underlying securities to the option holder at the strike price, and will not participate in any increase in the price of such securities above the strike price. When a put option of which a Fund is the writer is exercised, the Fund will be required to purchase the underlying securities at a price in excess of the market value of such securities. A segregated account is maintained to cover the difference between the closing price of the index and the exercise price of the index option, expressed in dollars multiplied by a specified number. Thus, unlike S-26 options on individual securities, the ability of a Fund to enter into closing transactions depends upon the existence of a liquid secondary market for such transactions. A Fund may purchase and write options on an exchange or over-the-counter. Over-the-counter options ("OTC options") differ from exchange-traded options in several respects. They are transacted directly with dealers and not with a clearing corporation, and therefore entail the risk of non-performance by the dealer. OTC options are available for a greater variety of securities and for a wider range of expiration dates and exercise prices than are available for exchange-traded options. Because OTC options are not traded on an exchange, pricing is done normally by reference to information from a market maker. It is the position of the SEC that OTC options are generally illiquid. RISK FACTORS. Risks associated with options transactions include: (1) the success of a hedging strategy may depend on an ability to predict movements in the prices of individual securities, fluctuations in markets and movements in interest rates; (2) there may be an imperfect correlation between the movement in prices of options and the securities underlying them; (3) there may not be a liquid secondary market for options; and (4) while a Fund will receive a premium when it writes covered call options, it may not participate fully in a rise in the market value of the underlying security. PRIVATIZATIONS--Privatizations are foreign government programs for selling all or part of the interests in government owned or controlled enterprises. The ability of a U.S. entity to participate in privatizations in certain foreign countries may be limited by local law, or the terms on which the Fund may be permitted to participate may be less advantageous than those applicable for local investors. There can be no assurance that foreign governments will continue to sell their interests in companies currently owned or controlled by them or that privatization programs will be successful. PUT TRANSACTIONS--A Fund may purchase securities at a price which would result in a yield to maturity lower than generally offered by the seller at the time of purchase when a Fund can simultaneously acquire the right to sell the securities back to the seller, the issuer or a third party (the "writer") at an agreed-upon price at any time during a stated period or on a certain date. Such a right is generally denoted as a "standby commitment" or a "put." The purpose of engaging in transactions involving puts is to maintain flexibility and liquidity to permit a Fund to meet redemptions and remain as fully invested as possible in municipal securities. A Fund reserves the right to engage in put transactions. The right to put the securities depends on the writer's ability to pay for the securities at the time the put is exercised. A Fund would limit its put transactions to institutions which the Fund's advisers believe present minimum credit risks, and the Fund's advisers would use their best efforts to initially determine and continue to monitor the financial strength of the sellers of the options by evaluating their financial statements and such other information as is available in the marketplace. It may, however, be difficult to monitor the financial strength of the writers because adequate current financial information may not be available. In the event that any writer is unable to honor a put for financial reasons, a Fund would be a general creditor (I.E., on a parity with all other unsecured creditors) of the writer. Furthermore, particular provisions of the contract between a Fund and the writer may excuse the writer from repurchasing the securities; for example, a change in the published rating of the underlying municipal securities or any similar event that has an adverse effect on the issuer's credit or a provision in the contract that the put will not be exercised except in certain special cases, for example, to maintain fund liquidity. A Fund could, however, at any time sell the underlying portfolio security in the open market or wait until the portfolio security matures, at which time it should realize the full par value of the security. The securities purchased subject to a put may be sold to third persons at any time, even though the put is outstanding, but the put itself, unless it is an integral part of the security as originally issued, may not be marketable or otherwise assignable. Therefore, the put would have value only to that particular Fund. Sale of the securities to third parties or lapse of time with the put unexercised may terminate the right to put the securities. Prior to the expiration of any put option, a Fund could seek to negotiate terms for the extension of such an option. If such a renewal cannot be negotiated on terms satisfactory to the Fund, the S-27 Fund could, of course, sell the portfolio security. The maturity of the underlying security will generally be different from that of the put. There will be no limit to the percentage of fund securities that a Fund may purchase subject to a put but the amount paid directly or indirectly for puts which are not integral parts of the security as originally issued will not exceed 1/2 of 1% of the value of the total assets of such Fund calculated immediately after any such put is acquired. For the purpose of determining the "maturity" of securities purchased subject to an option to put, and for the purpose of determining the dollar-weighted average maturity of a Fund including such securities, the Trust will consider "maturity" to be the first date on which it has the right to demand payment from the writer of the put although the final maturity of the security is later than such date. RECEIPTS--Receipts are interests in separately traded interest and principal component parts of U.S. Government obligations that are issued by banks or brokerage firms and are created by depositing U.S. Government obligations into a special account at a custodian bank. The custodian holds the interest and principal payments for the benefit of the registered owners of the certificates or receipts. The custodian arranges for the issuance of the certificates or receipts evidencing ownership and maintains the register. Receipts include "Treasury Receipts" ("TRs"), "Treasury Investment Growth Receipts" ("TIGRs"), and "Certificates of Accrual on Treasury Securities" ("CATS"). TIGRs and CATS are interests in private proprietary accounts while TRs and STRIPS (See "U.S. Treasury Obligations") are interests in accounts sponsored by the U.S. Treasury. Receipts are sold as zero coupon securities which means that they are sold at a substantial discount and redeemed at face value at their maturity date without interim cash payments of interest or principal. This discount is accreted over the life of the security, and such accretion will constitute the income earned on the security for both accounting and tax purposes. Because of these features, such securities may be subject to greater interest rate volatility than interest paying fixed income securities. REITS--REITs are trusts that invest primarily in commercial real estate or real estate-related loans. A REIT is not taxed on income distributed to its shareholders or unitholders if it complies with regulatory requirements relating to its organization, ownership, assets and income, and with a regulatory requirement that it distribute to its shareholders or unitholders at least 95% of its taxable income for each taxable year. Generally, REITs can be classified as Equity REITs, Mortgage REITs and Hybrid REITs. Equity REITs invest the majority of their assets directly in real property and derive their income primarily from rents and capital gains from appreciation realized through property sales. Mortgage REITs invest the majority of their assets in real estate mortgages and derive their income primarily from interest payments. Hybrid REITs combine the characteristics of both Equity and Mortgage REITs. By investing in REITs indirectly through the Fund, shareholders will bear not only the proportionate share of the expenses of the Fund, but also, indirectly, similar expenses of underlying REITs. A Fund may be subject to certain risks associated with the direct investments of the REITs. REITs may be affected by changes in the value of their underlying properties and by defaults by borrowers or tenants. Mortgage REITs may be affected by the quality of the credit extended. Furthermore, REITs are dependent on specialized management skills. Some REITs may have limited diversification and may be subject to risks inherent in financing a limited number of properties. REITs depend generally on their ability to generate cash flow to make distributions to shareholders or unitholders, and may be subject to defaults by borrowers and to self-liquidations. In addition, a REIT may be affected by its failure to qualify for tax-free pass-through of income under the Code or its failure to maintain exemption from registration under the 1940 Act. REPURCHASE AGREEMENTS--Repurchase agreements are agreements under which securities are acquired from a securities dealer or bank subject to resale on an agreed upon date and at an agreed upon price which includes principal and interest. A Fund involved bears a risk of loss in the event that the other party to a repurchase agreement defaults on its obligations and the Fund is delayed or prevented from exercising its rights to dispose of the collateral securities. A Fund's advisers enter into repurchase agreements only with financial institutions that they deem to present minimal risk of bankruptcy during the S-28 term of the agreement, based on guidelines that are periodically reviewed by the Board of Trustees. These guidelines currently permit a Fund to enter into repurchase agreements only with approved banks and primary securities dealers, as recognized by the Federal Reserve Bank of New York, which have minimum net capital of $100 million, or with a member bank of the Federal Reserve System. Repurchase agreements are considered to be loans collateralized by the underlying security. Repurchase agreements entered into by a Fund will provide that the underlying security at all times shall have a value at least equal to 102% of the price stated in the agreement. This underlying security will be marked to market daily. A Fund's sub-advisers will monitor compliance with this requirement. Under all repurchase agreements entered into by a Fund, the Custodian or its agent must take possession of the underlying collateral. However, if the seller defaults, a Fund could realize a loss on the sale of the underlying security to the extent the proceeds of the sale are less than the resale price. In addition, even though the Bankruptcy Code provides protection for most repurchase agreements, if the seller should be involved in bankruptcy or insolvency proceedings, a Fund may incur delay and costs in selling the security and may suffer a loss of principal and interest if the Fund is treated as an unsecured creditor. SECURITIES LENDING--A Fund may lend portfolio securities to brokers, dealers and other financial organizations that meet capital and other credit requirements or other criteria established by the Fund's Board of Trustees. These loans, if and when made, may not exceed 33 1/3% of the total asset value of the Fund (including the loan collateral). No Fund will lend portfolio securities to its advisers, or their affiliates unless it has applied for and received specific authority to do so from the SEC. Loans of portfolio securities will be fully collateralized by cash, letters of credit or U.S. Government securities, and the collateral will be maintained in an amount equal to at least 100% of the current market value of the loaned securities by marking to market daily, although the borrower will be required to deliver collateral of 102% and 105% of the market value of borrowed securities for domestic and foreign securities, respectively. Any gain or loss in the market price of the securities loaned that might occur during the term of the loan would be for the account of the Fund. The Fund may pay a part of the interest earned from the investment of collateral, or other fee, to an unaffiliated third party for acting as the Fund's securities lending agent. By lending its securities, a Fund may increase its income by receiving payments from the borrower that reflect the amount of any interest or any dividends payable on the loaned securities as well as by either investing cash collateral received from the borrower in short-term instruments or obtaining a fee from the borrower when U.S. Government securities or letters of credit are used as collateral. A Fund will adhere to the following conditions whenever its portfolio securities are loaned: (i) the Fund must receive at least 100% cash collateral or equivalent securities of the type discussed in the preceding paragraph from the borrower; (ii) the borrower must increase such collateral whenever the market value of the securities rises above the level of such collateral; (iii) the Fund must be able to terminate the loan on demand; (iv) the Fund must receive reasonable interest on the loan, as well as any dividends, interest or other distributions on the loaned securities and any increase in market value; (v) the Fund may pay only reasonable fees in connection with the loan (which fees may include fees payable to the lending agent, the borrower, the Fund's administrator and the custodian); and (vi) voting rights on the loaned securities may pass to the borrower, provided, however, that if a material event adversely affecting the investment occurs, the Fund must terminate the loan and regain the right to vote the securities. The Board has adopted procedures reasonably designed to ensure that the foregoing criteria will be met. Loan agreements involve certain risks in the event of default or insolvency of the borrower, including possible delays or restrictions upon a Fund's ability to recover the loaned securities or dispose of the collateral for the loan, which could give rise to loss because of adverse market action, expenses and/or delays in connection with the disposition of the underlying securities. SHORT SALES--Selling securities short involves selling securities the Fund does not own (but has borrowed) in anticipation of a decline in the market price of such securities. To deliver the securities to the buyer, the seller must arrange through a broker to borrow the securities and, in so doing, the seller S-29 becomes obligated to replace the securities borrowed at their market price at the time of replacement. In a short sale, the proceeds the seller receives from the sale are retained by a broker until the seller replaces the borrowed securities. The seller may have to pay a premium to borrow the securities and must pay any dividends or interest payable on the securities until they are replaced. A Fund may only sell securities short "against the box." A short sale is "against the box" if, at all times during which the short position is open, the Fund owns at least an equal amount of the securities or securities convertible into, or exchangeable without further consideration for, securities of the same issue as the securities that are sold short. STOCK INDEX FUTURES--A stock index futures contract is a bilateral agreement pursuant to which two parties agree to take or make delivery of an amount of cash equal to a specified dollar amount times the difference between the stock index value at the close of trading of the contract and the price at which the futures contract is originally struck. No physical delivery of the securities comprising the index is made; generally contracts are closed out prior to the expiration date of the contract. In order to avoid leveraging and related risks, when a Fund purchases futures contracts, it will collateralize its position by depositing an amount of cash or liquid securities equal to the market value of the futures positions held, less margin deposits, in a segregated account. Collateral equal to the current market value of the futures position will be marked to market on a daily basis. There are risks associated with these activities, including the following: (1) the success of a hedging strategy may depend on an ability to predict movements in the prices of individual securities, fluctuations in markets and movements in interest rates; (2) there may be an imperfect or no correlation between the changes in market value of the securities held by the Fund and the prices of futures and options on futures; (3) there may not be a liquid secondary market for a futures contract or option; (4) trading restrictions or limitations may be imposed by an exchange; and (5) government regulations may restrict trading in futures contracts and options on futures. No price is paid upon entering into futures contracts. Instead, a Fund is required to deposit an amount of cash or U.S. Treasury securities known as "initial margin." Subsequent payments, call "variation margin," to and from the broker, would be made on a daily basis as the value of the futures position varies (a process known as "marking to market"). The nature of initial and variation margin in futures transactions is different from that of margin in security transactions in that futures contract margin does not involve the borrowing of funds to finance the transactions. Rather, the margin is in the nature of a performance bond or good-faith deposit on the contract that is returned to the Fund upon termination of the contract, assuming all contractual obligations have been satisfied. Positions in futures contracts may be closed only on an exchange or board of trade providing a secondary market for such futures contracts. The value of the contract usually will vary in direct proportion to the total face value. Market value of a stock index futures position is defined as the closing value of the index multiplied by 500 times the number of contracts held. A Fund's ability to effectively utilize futures contracts depends on several factors. First, it is possible that there will not be a perfect price correlation between the futures contracts and their underlying stock index. In addition, the purchase of a futures contract involves the risk that the Fund could lose more than the original margin deposit required to initiate a futures transaction. In considering the proposed use of futures contracts, particular note should be taken that futures contracts relate to the anticipated levels at some point in the future not to the current level of the underlying instrument; thus, for example, trading of stock index futures may not reflect the trading of the securities which are used to formulate an index or even actual fluctuations in the relevant index itself. There is, in addition, a risk that movements in the price of futures contracts will not correlate with the movement in prices of the stock index being tracked. There may be several reasons unrelated to the value of the underlying securities which causes this situation to occur. First, all participants in the futures market are subject to initial and variation margin requirements. If, to avoid meeting additional margin deposit requirements or for other reasons, investors choose to close a significant number of futures contracts S-30 through offsetting transactions, distortions in the normal price relationship between the securities markets and the futures markets may occur. Second, because the deposit requirements in the futures market are less onerous than margin requirements in the securities market, there may be increased participation by speculators in the futures market which may also cause temporary price distortions. The Fund will not engage in transactions in futures contracts for speculative purposes. STRUCTURED SECURITIES--The SEI VP Emerging Markets Debt Fund may invest a portion of its assets in entities organized and operated solely for the purpose of restructuring the investment characteristics of sovereign debt obligations of emerging market issuers. This type of restructuring involves the deposit with, or purchase by, an entity, such as a corporation or trust, of specified instruments (such as commercial bank loans or Brady Bonds) and the issuance by that entity of one or more classes of securities ("Structured Securities") backed by, or representing interests in, the underlying instruments. The cash flow on the underlying instruments may be apportioned among the newly issued Structured Securities to create securities with different investment characteristics, such as varying maturities, payment priorities and interest rate provisions, and the extent of the payments made with respect to Structured Securities is dependent on the extent of the cash flow on the underlying instruments. Because Structured Securities of the type in which the Fund anticipates it will invest typically involve no credit enhancement, their credit risk generally will be equivalent to that of the underlying instruments. The Fund is permitted to invest in a class of Structured Securities that is either subordinated or unsubordinated to the right of payment of another class. Subordinated Structured Securities typically have higher yields and present greater risks than unsubordinated Structured Securities. Structured Securities are typically sold in private placement transactions, and there currently is no active trading market for Structured Securities. Certain issuers of such Structured Securities may be deemed to be "investment companies" as defined in the 1940 Act. As a result, the Fund's investment in such securities may be limited by certain investment restrictions contained in the 1940 Act. SWAPS, CAPS, FLOORS, COLLARS AND SWAPTIONS--Swaps are privately negotiated over-the-counter derivative products in which two parties agree to exchange payment streams calculated in relation to a rate, index, instrument or certain securities (referred to as the "underlying") and a predetermined amount (referred to as the "notional amount"). The underlying for a swap may be an interest rate (fixed or floating), a currency exchange rate, a commodity price index, a security, group of securities or a securities index, a combination of any of these, or various other rates, assets or indices. Swap agreements generally do not involve the delivery of the underlying or principal, and a party's obligations generally are equal to only the net amount to be paid or received under the agreement based on the relative values of the positions held by each party to the swap agreement. A great deal of flexibility is possible in the way swaps may be structured. For example, in a simple fixed-to-floating interest rate swap, one party makes payments equivalent to a fixed interest rate, and the other party makes payments calculated with reference to a specified floating interest rate, such as LIBOR or the prime rate. In a currency swap, the parties generally enter into an agreement to pay interest streams in one currency based on a specified rate in exchange for receiving interest streams denominated in another currency. Currency swaps may involve initial and final exchanges that correspond to the agreed upon notional amount. A Fund may engage in simple or more complex swap transactions involving a wide variety of underlyings for various reasons. For example, a Fund may enter into a swap to gain exposure to investments (such as an index of securities in a market) or currencies without actually purchasing those stocks or currencies; to make an investment without owning or taking physical custody of securities or currencies in circumstances in which direct investment is restricted for legal reasons or is otherwise impracticable; to hedge an existing position; to obtain a particular desired return at a lower cost to the Fund than if it had invested directly in an instrument that yielded the desired return; or for various other reasons. S-31 Caps, floors, collars and swaptions are privately-negotiated option-based derivative products. Like a put or call option, the buyer of a cap or floor pays a premium to the writer. In exchange for that premium, the buyer receives the right to a payment equal to the differential if the specified index or rate rises above (in the case of a cap) or falls below (in the case of a floor) a pre-determined strike level. Like swaps, obligations under caps and floors are calculated based upon an agreed notional amount, and, like most swaps (other than currency swaps), the entire notional amount is not exchanged. A collar is a combination product in which one party buys a cap from and sells a floor to the another party. Swaptions give the holder the right to enter into a swap. A Fund may use one or more of these derivative products in addition to or in lieu of a swap involving a similar rate or index. Under current market practice, swaps, caps, collars and floors between the same two parties are generally documented under a "master agreement." In some cases, options and forwards between the parties may also be governed by the same master agreement. In the event of a default, amounts owed under all transactions entered into under, or covered by, the same master agreement would be netted, and only a single payment would be made. The swap market has grown substantially in recent years with a large number of banks and investment banking firms acting both as principals and as agents using standardized swap agreements. As a result, the swap market has become relatively liquid in comparison with the markets for other similar instruments that are also traded in over-the-counter markets. Swaps and other derivatives involve risks. One significant risk in a swap, cap, floor, collar or swaption is the volatility of the specific interest rate, currency or other underlying that determines the amount of payments due to and from a Fund. This is true whether these derivative products are used to create additional risk exposure for a Fund or to hedge, or manage, existing risk exposure. If under a swap, cap, floor, collar or swaption agreement a Fund is obligated to make a payment to the counterparty, the Fund must be prepared to make the payment when due. A Fund could suffer losses with respect to such an agreement if the Fund is unable to terminate the agreement or reduce its exposure through offsetting transactions. Further, the risks of caps, floors and collars, like put and call options, may be unlimited for the seller if the cap, or floor is not hedged or covered, but is limited for the buyer. Because under swap, cap, floor, collar and swaption agreements a counterparty may be obligated to make payments to a Fund, these derivative products are subject to risks related to the counterparty's creditworthiness. If a counterparty defaults, a Fund's risk of loss will consist of any payments that the Fund is entitled to receive from the counterparty under the agreement (this may not be true for currency swaps that require the delivery of the entire notional amount of one designated currency in exchange for the other). Upon default by a counterparty, however, a Fund may have contractual remedies under the swap agreement. A Fund will enter into swaps only with counterparties that the advisers believe to be creditworthy. In addition, a Fund will earmark or segregate cash or liquid securities in an amount equal to any liability amount owned under a swap, cap, floor, collar or swaption agreement, or will otherwise cover the transaction by entering into an offsetting position or agreement. TIME DEPOSITS--Time deposits are a non-negotiable receipt issued by a bank in exchange for the deposit of funds. Like a certificate of deposit, it earns a specified rate of interest over a definite period of time; however, it cannot be traded in the secondary market. Time deposits with a withdrawal penalty are considered to be illiquid securities. U.S. GOVERNMENT AGENCY OBLIGATIONS--Obligations issued or guaranteed by agencies of the U.S. Government, including, among others, the Federal Farm Credit Bank, the Federal Housing Administration and the Small Business Administration, and obligations issued or guaranteed by instrumentalities of the U.S. Government, including, among others, the FHLMC, the Federal Land Banks and the U.S. Postal Service. Some of these securities are supported by the full faith and credit of the U.S. Treasury (E.G., GNMA securities), others are supported by the right of the issuer to borrow from the Treasury S-32 (E.G., Federal Farm Credit Bank securities), while still others are supported only by the credit of the instrumentality (E.G., Fannie Mae securities). Agencies of the United States Government that issue obligations, including, among others, Export Import Bank of the United States, Farmers Home Administration, Federal Farm Credit System, Federal Housing Administration, Government National Mortgage Association, Maritime Administration, Small Business Administration and The Tennessee Valley Authority. A Fund may purchase securities issued or guaranteed by the GNMA which represent participations in Veterans Administration and Federal Housing Administration backed mortgage pools. Guarantees of principal by agencies or instrumentalities of the U.S. Government may be a guarantee of payment at the maturity of the obligation so that in the event of a default prior to maturity there might not be a market and thus no means of realizing on the obligation prior to maturity. Guarantees as to the timely payment of principal and interest do not extend to the value or yield of these securities or to the value of a Fund's shares. U.S. TREASURY OBLIGATIONS--U.S. Treasury Obligations are bills, notes and bonds issued by the U.S. Treasury and separately traded interest and principal component parts of such obligations that are transferable through the Federal book-entry system known as Separately Traded Registered Interest and Principal Securities ("STRIPS"). No Fund may actively trade STRIPS. STRIPS are sold as zero coupon securities; for more information, see "Zero Coupon Securities." U.S. TREASURY RECEIPTS--U.S. Treasury receipts are interests in separately traded interest and principal component parts of U.S. Treasury obligations that are issued by banks or brokerage firms and are created by depositing U.S. Treasury notes and obligations into a special account at a custodian bank. The custodian holds the interest and principal payments for the benefit of the registered owners of the certificates of receipts. The custodian arranges for the issuance of the certificates or receipts evidencing ownership and maintains the register. VARIABLE AND FLOATING RATE INSTRUMENTS--Certain obligations may carry variable or floating rates of interest, and may involve a conditional or unconditional demand feature. Such instruments bear interest at rates that are not fixed, but which vary with changes in specified market rates or indices. The interest rates on these securities may be reset daily, weekly, quarterly or some other reset period, and may have a floor or ceiling on interest rate changes. These instruments may involve a demand feature and may include variable amount master demand notes available through the Custodian, or otherwise. Variable or floating rate instruments bear interest at a rate which varies with changes in market rates. The holder of an instrument with a demand feature may tender the instrument back to the issuer at par prior to maturity. A variable amount master demand note is issued pursuant to a written agreement between the issuer and the holder, its amount may be increased by the holder or decreased by the holder or issuer, it is payable on demand, and the rate of interest varies based upon an agreed formula. The quality of the underlying credit must, in the opinion of the Fund's sub-advisers, be equivalent to the long-term bond or commercial paper ratings applicable to permitted investments for each Fund. The Fund's sub-advisers will monitor on an ongoing basis the earning power, cash flow, and liquidity ratios of the issuers of such instruments and will similarly monitor the ability of an issuer of a demand instrument to pay principal and interest on demand. There is a risk that the current interest rate on such obligations may not accurately reflect existing market interest rates. A demand instrument with a demand notice exceeding seven days may be considered illiquid if there is no secondary market for such security. In case of obligations which include a put feature at the option of the debt holder, the date of the put may be used as an effective maturity date for the purpose of determining weighted average fund maturity. WARRANTS--Warrants are instruments giving holders the right, but not the obligation, to buy equity or fixed income securities of a company at a given price during a specified period. WHEN-ISSUED AND DELAYED DELIVERY SECURITIES--When-issued and delayed delivery securities involve the purchase of debt obligations on a when-issued basis, in which case delivery and payment normally take place within 45 days after the date of commitment to purchase. The payment obligation and S-33 the interest rate that will be received on the securities are each fixed at the time the purchaser enters into the commitment. These securities are subject to market fluctuation due to changes in market interest rates, and it is possible that the market value at the time of settlement could be higher or lower than the purchase price if the general level of interest rates has changed. Although a Fund generally purchases securities on a when-issued or forward commitment basis with the intention of actually acquiring securities, a Fund may dispose of a when-issued security or forward commitment prior to settlement if it deems it appropriate to do so. When investing in when-issued securities, a Fund will not accrue income until delivery of the securities and will invest in such securities only for purposes of actually acquiring the securities and not for purposes of leveraging. One form of when-issued or delayed-delivery security that a Fund may purchase is a "to be announced" ("TBA") mortgage-backed security. A TBA mortgage-backed security transaction arises when a mortgage-backed security, such as a GNMA pass-through security, is purchased or sold with specific pools that will constitute that GNMA pass-through security to be announced on a future settlement date. Purchasing obligations on a when-issued basis is a form of leveraging and can involve a risk that the yields available in the market when the delivery takes place may actually be higher than those obtained in the transaction itself. In that case there could be an unrealized loss at the time of delivery. A Fund will earmark or segregate cash or liquid securities in an amount at least equal in value to that Fund's commitments to purchase when-issued securities. If the value of these assets declines, the Fund involved will earmark or segregate additional cash or liquid securities in the account on a daily basis so that the value of the assets in the account is equal to the amount of such commitments. YANKEE OBLIGATIONS--Yankee obligations ("Yankees") are U.S. dollar-denominated instruments of foreign issuers who either register with the SEC or issue under Rule 144A under the Securities Act of 1933. These obligations consist of debt securities (including preferred or preference stock of non- governmental issuers), certificates of deposit, fixed time deposits and bankers' acceptances issued by foreign banks, and debt obligations of foreign governments or their subdivisions, agencies and instrumentalities, international agencies and supranational entities. Some securities issued by foreign governments or their subdivisions, agencies and instrumentalities may not be backed by the full faith and credit of the foreign government. The Yankee obligations selected for a Fund will adhere to the same quality standards as those utilized for the selection of domestic debt obligations. ZERO COUPON SECURITIES--Zero coupon securities are securities that are sold at a discount to par value, and securities on which interest payments are not made during the life of the security. Upon maturity, the holder is entitled to receive the par value of the security. While interest payments are not made on such securities, holders of such securities are deemed to have received "phantom income" annually. Because a Fund will distribute its "phantom income" to shareholders, to the extent that shareholders elect to receive dividends in cash rather than reinvesting such dividends in additional shares, a Fund will have fewer assets with which to purchase income producing securities. Pay-in-kind securities pay interest in either cash or additional securities, at the issuer's option, for a specified period. Pay-in-kind bonds, like zero coupon bonds, are designed to give an issuer flexibility in managing cash flow. Pay-in-kind bonds are expected to reflect the market value of the underlying debt plus an amount representing accrued interest since the last payment. Pay-in-kind bonds are usually less volatile than zero coupon bonds, but more volatile than cash pay securities. Pay-in-kind securities are securities that have interest payable by delivery of additional securities. Upon maturity, the holder is entitled to receive the aggregate par value of the securities. Deferred payment securities are securities that remain zero coupon securities until a predetermined date, at which time the stated coupon rate becomes effective and interest becomes payable at regular intervals. To avoid any leveraging concerns, a Fund will place cash or liquid securities in a segregated account in an amount sufficient to cover its repurchase obligation. Zero coupon, pay-in-kind and deferred payment S-34 securities may be subject to greater fluctuation in value and lesser liquidity in the event of adverse market conditions than comparably rated securities paying cash interest at regular interest payment periods. STRIPS and receipts (TRs, TIGRs and CATS) are sold as zero coupon securities, that is, fixed income securities that have been stripped of their unmatured interest coupons. Zero coupon securities are sold at a (usually substantial) discount and redeemed at face value at their maturity date without interim cash payments of interest or principal. The amount of this discount is accreted over the life of the security, and the accretion constitutes the income earned on the security for both accounting and tax purposes. Because of these features, the market prices of zero coupon securities are generally more volatile than the market prices of securities that have similar maturity but that pay interest periodically. Zero coupon securities are likely to respond to a greater degree to interest rate changes than are non-zero coupon securities with similar maturity and credit qualities. Corporate zero coupon securities are: (i) notes or debentures which do not pay current interest and are issued at substantial discounts from par value, or (ii) notes or debentures that pay no current interest until a stated date one or more years into the future, after which the issuer is obligated to pay interest until maturity, usually at a higher rate than if interest were payable from the date of issuance and may also make interest payments in kind (e.g., with identical zero coupon securities). Such corporate zero coupon securities, in addition to the risks identified above, are subject to the risk of the issuer's failure to pay interest and repay principal in accordance with the terms of the obligation. A Fund must accrete the discount or interest on high-yield bonds structured as zero coupon securities as income even though it does not receive a corresponding cash interest payment until the security's maturity or payment date. A Fund may have to dispose of its securities under disadvantageous circumstances to generate cash, or may have to leverage itself by borrowing cash to satisfy distribution requirements. A Fund accrues income with respect to the securities prior to the receipt of cash payments. S-35 DESCRIPTION OF RATINGS MOODY'S RATINGS DEFINITIONS LONG TERM Aaa Bonds which are rated Aaa are judged to be of the best quality. They carry the smallest degree of investment risk and are generally referred to as "gilt edged." Interest payments are protected by a large or by an exceptionally stable margin and principal is secure. While the various protective elements are protected by a large or by an exceptionally stable margin and principal is secure. While the various protective elements are likely to change, such changes as can be visualized are most unlikely to impair the fundamentally strong position of such issues. Aa Bonds which are rated Aa are judged to be of high quality by all standards. Together with the Aaa group they comprise what are generally known as high-grade bonds. They are rated lower than the best bonds because margins of protection may not be as large as in Aaa securities or fluctuation of protective elements may be of greater amplitude or there may be other elements present which make the long-term risk appear somewhat larger than the Aaa securities. A Bonds which are rated A possess many favorable investment attributes and are to be considered as upper-medium grade obligations. Factors giving security to principal and interest are considered adequate, but elements may be present which suggest a susceptibility to impairment some time in the future. Baa Bonds which are rated Baa are considered as medium-grade obligations (i.e., they are neither highly protected nor poorly secured). Interest payments and principal security appear adequate for the present but certain protective elements may be lacking or may be characteristically unreliable over any great length of time. Such bonds lack outstanding investment characteristics and in fact have speculative characteristics as well. Ba Bonds which are rated Ba are judged to have speculative elements; their future cannot be considered as well-assured. Often the protection of interest and principal payments may be very moderate and thereby not well safeguarded during both good and bad times over the future. Uncertainty of position characterizes bonds in this class. B Bonds which are rated B generally lack characteristics of the desirable investment. Assurance of interest and principal payments or of maintenance of other terms of the contract over any long period of time may be small. Caa Bonds which are rated Caa are of poor standing. Such issues may be in default or there may be present elements of danger with respect to principal or interest. Ca Bonds which are rated Ca represent obligations which are speculative in a high degree. Such issues are often in default or have other marked shortcomings. C Bonds which are rated C are the lowest rated class of bonds, and issues so rated can be regarded as having extremely poor prospects of ever attaining any real investment standing.
SHORT-TERM PRIME-1 Issuers rated Prime-1 (or supporting institutions) have a superior ability for repayment of senior short-term debt obligations. Prime-1 repayment ability will often be evidenced by many of the following characteristics: - Leading market positions in well-established industries. - High rates of return on funds employed. - Conservative capitalization structure with moderate reliance on debt and ample asset protection. S-36 - Broad margins in earnings coverage of fixed financial charges and high internal cash generation. - Well-established access to a range of financial markets and assured sources of alternate liquidity. PRIME-2 Issuers rated Prime-2 (or supporting institutions) have a strong ability for repayment of senior short-term debt obligations. This will normally be evidenced by many of the characteristics cited above but to a lesser degree. Earnings trends and coverage ratios, while sound, may be more subject to variation. Capitalization characteristics, while still appropriate, may be more affected by external conditions. Ample alternate liquidity is maintained. PRIME-3 Issuers rated Prime-3 (or supporting institutions) have an acceptable ability for repayment of senior short-term obligations. The effect of industry characteristics and market compositions may be more pronounced. Variability in earnings and profitability may result in changes in the level of debt protection measurements and may require relatively high financial leverage. Adequate alternate liquidity is maintained. NOT PRIME Issuers rated Not Prime do not fall within any of the Prime rating categories. STANDARD & POOR'S RATINGS DEFINITIONS A Standard & Poor's corporate or municipal debt rating is a current assessment of creditworthiness of an obligor with respect to a specific obligation. This assessment may take into consideration obligors such as guarantors, insurers, or lessees. The debt rating is not a recommendation to purchase, sell or hold a security, as it does not comment on market price or suitability for a particular investor. The ratings are based, in varying degrees, on the following considerations: (1) Likelihood of default. The rating assesses the obligor's capacity and willingness as to timely payment of interest and repayment of principal in accordance with the terms of the obligation. (2) The obligation's nature and provisions. (3) Protection afforded to, and relative position of, the obligation in the event of bankruptcy, reorganization, or other arrangement under bankruptcy laws and other laws affecting creditor's rights. Likelihood of default is indicated by an issuer's senior debt rating. If senior debt is not rated, an implied senior debt rating is determined. Subordinated debt usually is rated lower than senior debt to better reflect relative position of the obligation in bankruptcy. Unsecured debt, where significant secured debt exists, is treated similarly to subordinated debt. LONG-TERM INVESTMENT GRADE AAA Debt rated 'AAA' has the highest rating assigned by S&P. Capacity to pay interest and repay principal is extremely strong. AA Debt rated 'AA' has a very strong capacity to pay interest and repay principal and differs from the highest rated debt only in small degree. A Debt rated 'A' has a strong capacity to pay interest and repay principal, although it is somewhat more susceptible to adverse effects of changes in circumstances and economic conditions than debt in higher-rated categories.
S-37 BBB Debt rated 'BBB' is regarded as having an adequate capacity to pay interest and repay principal. Whereas it normally exhibits adequate protection parameters, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity to pay interest and repay principal for debt in this category than in higher rated categories.
SPECULATIVE GRADE Debt rated 'BB', 'B', 'CCC', 'CC', and 'C' is regarded as having predominantly speculative characteristics with respect to capacity to pay interest and repay principal. 'BB' indicates the least degree of speculation and 'C' the highest degree of speculation. While such debt will likely have some quality and protective characteristics, these are outweighed by large uncertainties or major risk exposure to adverse conditions. BB Debt rated 'BB' has less near-term vulnerability to default than other speculative grade debt. However, it faces major ongoing uncertainties or exposure to adverse business, financial, or economic conditions that could lead to inadequate capacity to meet timely interest and principal payments. The 'BB' rating category is also used for debt subordinated to senior debt that is assigned an actual or implied 'BBB-' rating. B Debt rate 'B' has greater vulnerability to default but presently has the capacity to meet interest payments and principal repayments. Adverse business, financial, or economic conditions would likely impair capacity or willingness to pay interest and repay principal. The 'B' rating category also is used for debt subordinated to senior debt that is assigned an actual or implied 'BB' or 'BB-' rating. CCC Debt rated 'CCC' has a current identifiable vulnerability to default, and is dependent on favorable business, financial and economic conditions to meet timely payment of interest and repayment of principal. In the event of adverse business, financial, or economic conditions, it is not likely to have the capacity to pay interest and repay principal. The 'CCC' rating category also is used for debt subordinated to senior debt that is assigned an actual or implied 'B' or 'B-' rating. CC The rating 'CC' is typically applied to debt subordinated to senior debt which is assigned an actual or implied 'CCC' rating. C The rating 'C' is typically applied to debt subordinated to senior debt which is assigned an actual or implied 'CCC' debt rating. The 'C' rating may be used to cover a situation where a bankruptcy petition has been filed, but debt service payment are continued. CI Debt rated 'CI' is reserved for income bonds on which no interest is being paid. D Debt is rated 'D' when the issue is in payment default, or the obligor has filed for bankruptcy. The 'D' rating is used when interest or principal payments are not made on the date due, even if the applicable grace period has not expired, unless S&P believes that such payments will be made during such grace period.
Plus (+) or minus (-): The ratings from 'AA' to 'CCC' may be modified by the addition of a plus or minus sign to show relative standing within the major rating categories. c The letter 'C' indicates that the holder's option to tender the security for purchase may be canceled under certain prestated conditions enumerated in the tender option documents. p The letter 'p' indicates that the rating is provisional. A provisional rating assumes the successful completion of the project financed by the debt being rated and indicates that payment of the debt service requirements is largely or entirely dependent upon the successful timely completion of the project. This rating, however, while addressing credit quality subsequent to completion of the project, makes no comment on the likelihood of, or the risk of default upon failure of such completion. The investor should exercise his own judgement with respect to such likelihood and risk.
S-38 L The letter 'L' indicates that the rating pertains to the principal amount of those bonds to the extent that the underlying deposit collateral is federally insured, and interest is adequately collateralized. In the case of certificates of deposit, the letter 'L' indicates that the deposit, combined with other deposits being held in the same right and capacity, will be honored for principal and pre-default interest up to federal insurance limits within 30 days after closing of the insured institution or, in the event that the deposit is assumed by a successor insured institution, upon maturity.
------------------------ *Continuance of the rating is contingent upon S&P's receipt of an executed copy of the escrow agreement or closing documentation confirming investments and cash flows. N.R. Not rated. Debt obligations of issuers outside the United States and its territories are rated on the same basis as domestic corporate and municipal issues. The ratings measure the creditworthiness of the obligor but do not take into account currency exchange and related uncertainties. If an issuer's actual or implied senior debt rating is 'AAA', its subordinated or junior debt is rated 'AAA' or 'AA+'. If an issuer's actual or implied senior debt rating is lower than 'AAA' but higher than 'BB+', its junior debt is typically rated one designation lower than the senior debt ratings. For example, if the senior debt rating is 'A', subordinated debt normally would be rated 'A-'. If an issuer's actual or implied senior debt rating is 'BB+' or lower, its subordinated debt is typically rated two designations lower than the senior debt rating. NOTE: The term "investment grade" was originally used by various regulatory bodies to connote obligations eligible for investment by institutions such as banks, insurance companies, and savings and loan associations. Over time, this term gained widespread usage throughout the investment community. Issues rated in the four highest categories, 'AAA', 'AA', 'A', 'BBB', generally are recognized as being investment grade. Debt 'BB' or below generally is referred to as speculative grade. The term "junk bond" is merely a more irreverent expression for this category of more risky debt. Neither term indicates which securities S&P deems worthy of investment, as an investor with a particular risk preference may appropriately invest in securities that are not investment grade. SHORT-TERM A-1 This highest category indicates that the degree of safety regarding timely payment is strong. Debt determined to possess extremely strong safety characteristics is denoted with a plus sign (+) designation. A-2 Capacity for timely payment on issues with this designation is satisfactory. However, the relative degree of safety is not as high as for issues designated "A-1". A-3 Debt carrying this designation has an adequate capacity for timely payment. It is, however, more vulnerable to the adverse effects of changes in circumstances than obligations carrying the higher designations. B Debt rated "B" is regarded as having only speculative capacity for timely payment. C This rating is assigned to short-term debt obligations with a doubtful capacity for payment. D This rating indicates that the obligation is in payment default.
S-39 FITCH, INC. RATINGS DEFINITIONS LONG-TERM INVESTMENT GRADE AAA Highest credit quality. "AAA" ratings denote the lowest expectation of credit risk. They are assigned only in case of exceptionally strong capacity for timely payment of financial commitments. This capacity is highly unlikely to be adversely affected by foreseeable events. AA Very high credit quality. "AA" ratings denote a very low expectation of credit risk. They indicate very strong capacity for timely payment of financial commitments. This capacity is not significantly vulnerable to foreseeable events. A High credit quality. "A" ratings denote a low expectation of credit risk. The capacity for timely payment of financial commitments is considered strong. This capacity may, nevertheless, be more vulnerable to changes in circumstances or in economic conditions than is the case for higher ratings. BBB Good credit quality. "BBB" ratings indicate that there is currently a low expectation of credit risk. The capacity for timely payment of financial commitments is considered adequate, but adverse changes in circumstances and in economic conditions are more likely to impair this capacity. This is the lowest investment-grade category. SPECULATIVE GRADE BB Speculative. "BB" ratings indicate that there is a possibility of credit risk developing, particularly as the result of adverse economic change over time; however, business or financial alternatives may be available to allow financial commitments to be met. Securities rated in this category are not investment grade. B Highly speculative. "B" ratings indicate that significant credit risk is present, but a limited margin of safety remains. Financial commitments are currently being met; however, capacity for continued payment is contingent upon a sustained, favorable business and economic environment. CCC High default risk. Default is a real possibility. Capacity CC for meeting financial commitments is solely reliant upon C sustained, favorable business or economic developments. A "CC" rating indicates that default of some kind appears probable. "C" ratings signal imminent default. DDD Default. The ratings of obligations in this category are DD based on their prospects for achieving partial or full D recovery in a reorganization or liquidation of the obligor. While expected recovery values are highly speculative and cannot be estimated with any precision, the following serve as general guidelines. "DDD" obligations have the highest potential for recovery, around 90%-100% of outstanding amounts and accrued interest. "DD" indicates potential recoveries in the range of 50%-90%, and "D" the lowest recovery potential, i.e., below 50%. Entities rated in this category have defaulted on some or all of their obligations. Entities rated "DDD" have the highest prospect for resumption of performance or continued operation with or without a formal reorganization process. Entities rated "DD" and "D" are generally undergoing a formal reorganization or liquidation process; those rated "DD" are likely to satisfy a higher portion of their outstanding obligations, while entities rated "D" have a poor prospect for repaying all obligations.
SHORT-TERM F1 Highest credit quality. Indicates the Best capacity for timely payment of financial commitments; may have an added "+" to denote any exceptionally strong credit feature. F2 Good credit quality. A satisfactory capacity for timely payment of financial commitments, but the margin of safety is not as great as in the case of the higher ratings. F3 Fair credit quality. The capacity for timely payment of financial commitments is adequate; however, near-term adverse changes could result in a reduction to non-investment grade.
S-40 B Speculative. Minimal capacity for timely payment of financial commitments, plus vulnerability to near-term adverse changes in financial and economic conditions. C High default risk. Default is a real possibility. Capacity for meeting financial commitments is solely reliant upon a sustained, favorable business and economic environment. D Default. Denotes actual or imminent payment default.
NOTES TO LONG-TERM AND SHORT-TERM RATINGS: "+" or "-" may be appended to a rating to denote relative status within major rating categories. Such suffixes are not added to the "AAA" long-term rating category, to categories below "CCC," or to short-term ratings other than "F1". "NR" indicates that Fitch, Inc. does not rate the issuer or issue in question. "WITHDRAWN": A rating is withdrawn when Fitch, Inc. deems the amount of information available to be inadequate for rating purposes, or when an obligation matures, is called, or refinanced. RATING ALERT: Ratings are placed on RatingAlert to notify investors that there is a reasonable probability of a rating change and the likely direction of such change. These are designated as "Positive," indicating a potential upgrade, "Negative," for a potential downgrade, or "Evolving", if ratings may be raised, lowered or maintained. RatingAlert is typically resolved over a relatively short period. INVESTMENT LIMITATIONS FUNDAMENTAL POLICIES The following investment limitations are fundamental policies of the Trust and may not be changed without shareholder approval. A Fund may not: 1. With respect to 75% of its total assets, (i) purchase securities of any issuer (except securities issued or guaranteed by the U.S. Government, its agencies or instrumentalities) if, as a result, more than 5% of its total assets would be invested in the securities of such issuer; or (ii) acquire more than 10% of the outstanding voting securities of any one issuer. This restriction does not apply to the SEI VP International Fixed Income and SEI VP Emerging Markets Debt Funds. The SEI VP Prime Obligation Fund may invest up to 25% of its total assets without regard to this restriction as permitted by Rule 2a-7 under the 1940 Act. 2. Purchase any securities which could cause more than 25% of its total assets to be invested in the securities of one or more issuers conducting their principal business activities in the same industry, provided that this limitation does not apply to investments in securities issued or guaranteed by the U.S. Government, its agencies or instrumentalities (and, in the case of the SEI VP Prime Obligation Fund, to securities issued or guaranteed by domestic banks). 3. Borrow money in an amount exceeding 33 1/3% of the value of its total assets, provided that, for purposes of this limitation, investment strategies which either obligate a Fund to purchase securities or require a Fund to segregate assets are not considered to be borrowings. To the extent that its borrowings exceed 5% of its assets, (i) all borrowings will be repaid before making additional investments and any interest paid on such borrowings will reduce income; and (ii) asset coverage of at least 300% is required. 4. Make loans if, as a result, more than 33 1/3% of its total assets would be loaned to other parties, except that each Fund may: (i) purchase or hold debt instruments in accordance with its investment objective and policies; (ii) enter into repurchase agreements; and (iii) lend its securities. 5. Purchase or sell real estate, physical commodities, or commodities contracts, except that each Fund may purchase (i) marketable securities issued by companies which own or invest in real estate (including real estate investment trusts), commodities, or commodities contracts, and (ii) commodities S-41 contracts relating to financial instruments, such as financial futures contracts and options on such contracts. 6. Act as an underwriter of securities of other issuers except as it may be deemed an underwriter in selling a portfolio security. 7. Invest in interests in oil, gas or other mineral exploration or development programs and oil, gas or mineral leases. NON-FUNDAMENTAL POLICIES The following investment limitations are non-fundamental policies of the Trust and may be changed without shareholder approval. A Fund may not: 1. Pledge, mortgage or hypothecate assets except to secure borrowings permitted by the Fund's fundamental limitation on borrowing. 2. Invest in companies for the purpose of exercising control. 3. Purchase securities on margin or effect short sales, except that each Fund may (i) obtain short-term credits as necessary for the clearance of security transactions, (ii) provide initial and variation margin payments in connection with transactions involving futures contracts and options on such contracts, and (iii) make short sales "against the box" or in compliance with the SEC's position regarding the asset segregation requirements of section 18 of the 1940 Act. 4. Invest its assets in securities of any investment company, except as permitted by the 1940 Act or any rule or order thereunder. 5. Purchase or hold illiquid securities, I.E., securities that cannot be disposed of for their approximate carrying value in seven days or less (which includes repurchase agreements and time deposits maturing in more than seven days) if, in the aggregate, more than 15% of its net assets would be invested in illiquid securities (10% for the SEI VP Prime Obligation Fund). 6. Purchase securities which are not readily marketable if, in the aggregate, more than 15% of its total assets would be invested in such securities (10% for the SEI VP Prime Obligation Fund). Unless otherwise noted, compliance with all investment limitations (except for the borrowing limitations) in this Statement of Additional Information and the Prospectus(es) are measured at the time of purchase of a security. S-42 THE ADMINISTRATOR AND TRANSFER AGENT SEI Investments Fund Management ("SEI Management" or the "Administrator") provides the Trust with overall administrative services, regulatory reporting, all necessary office space, equipment, personnel and facilities, and acts as dividend disbursing agent. SEI Management also serves as transfer agent (the "Transfer Agent") for the Funds. For these administrative services, SEI Management is entitled to a fee, which is calculated daily and paid monthly, as a percentage of the average daily net assets of each Fund at the following rates:
FUND ADMINISTRATION FEE ------------------------------------------------------------ ------------------ SEI VP Large Cap Value Fund................................. 0.35% SEI VP Large Cap Growth Fund................................ 0.35% SEI VP S&P 500 Index Fund................................... 0.22% SEI VP Small Cap Value Fund................................. 0.35% SEI VP Small Cap Growth Fund................................ 0.35% SEI VP International Equity Fund............................ 0.45% SEI VP Emerging Markets Equity Fund......................... 0.65% SEI VP Bond Index Fund...................................... 0.35% SEI VP Core Fixed Income Fund............................... 0.28% SEI VP High Yield Bond...................................... 0.35% SEI VP International Fixed Income Fund...................... 0.60% SEI VP Emerging Markets Debt Fund........................... 0.65% SEI VP Prime Obligation Fund................................ 0.42%
SEI Investments Management Corporation ("SIMC") and SEI Management have agreed, on a voluntary basis, to waive a portion of their Management/Administration Fees and/or reimburse Other Expenses to the extent necessary to keep Total Operating Expenses from exceeding certain levels. The Total Operating Expenses reflect anticipated fee waivers. The Administration Agreement provides that the Administrator shall not be liable for any error of judgment or mistake of law or for any loss suffered by the Trust in connection with the matters to which the Administration Agreement relates, except a loss resulting from willful misfeasance, bad faith or gross negligence on the part of SEI Management in the performance of its duties or from reckless disregard of its duties and obligations thereunder. After an initial term, the continuance of the Administration Agreement must be specifically approved: (i) by the vote of a majority of the Trustees or by the vote of a majority of the outstanding voting securities of the Fund; and (ii) by the vote of a majority of the Trustees of the Trust who are not parties to the Administration Agreement or an "interested person" (as that term is defined in the 1940 Act) of any party thereto, cast in person at a meeting called for the purpose of voting on such approval. The Administration Agreement is terminable at any time as to any Fund without penalty by the Trustees of the Trust, by a vote of a majority of the outstanding shares of the Fund or by SEI Management on not less than 30 days' nor more than 60 days' written notice. This Agreement shall not be assignable by either party without the written consent of the other party. The Administrator, a Delaware business trust, has its principal business offices at Oaks, Pennsylvania 19456. SIMC, a wholly-owned subsidiary of SEI Investments Company ("SEI Investments"), is the owner of all beneficial interest in the Administrator. SEI Investments and its subsidiaries and affiliates, including the Administrator, are leading providers of funds evaluation services, trust accounting systems, and brokerage and information services to financial institutions, institutional investors, and money managers. The Administrator and its affiliates also serve as administrator or sub-administrator to the following mutual funds including, but without limitation: The Advisors' Inner Circle Fund, Alpha Select Funds, Amerindo Funds Inc., The Arbor Fund, Armada Funds, The Armada Advantage Fund, Bishop Street Funds, Causeway Capital Management Trust, CNI Charter Funds, Excelsior Funds Inc., Excelsior Funds S-43 Trust, Excelsior Tax-Exempt Funds, Inc., Expedition Funds, First Focus Funds, Inc., HighMark Funds, JohnsonFamily Funds, Inc., The MDL Funds, The Nevis Fund, Inc., Oak Associates Funds, The PBHG Funds, Inc., PBHG Insurance Series Fund, Inc., Pitcairn Funds, SEI Asset Allocation Trust, SEI Daily Income Trust, SEI Index Funds, SEI Institutional International Trust, SEI Institutional Investments Trust, SEI Institutional Managed Trust, SEI Liquid Asset Trust, SEI Tax Exempt Trust, STI Classic Funds, STI Classic Variable Trust, Turner Funds, UAM Funds Trust, UAM Funds, Inc. and UAM Funds, Inc. II. If operating expenses of any Fund exceed applicable limitations, SEI Management will pay such excess. SEI Management will not be required to bear expenses of any Fund to an extent which would result in the Fund's inability to qualify as a regulated investment company under provisions of the Code. The term "expenses" is defined in such laws or regulations, and generally excludes brokerage commissions, distribution expenses, taxes, interest and extraordinary expenses. For the fiscal years ended December 31, 2000 and 2001, the Funds paid fees to the Administrator as follows:
ADMINISTRATIVE REIMBURSEMENT ADMISTRATIVE FEES WAIVED BY ADMINISTRATOR FEES PAID (000) (000) (000) ---------------------- ---------------------- ---------------------- 2000** 2001 2000** 2001 2000** 2001 -------- -------- -------- -------- -------- -------- SEI VP Large Cap Value Fund................ $ 0 $ 54 $43 $54 $14 $ 0 SEI VP Large Cap Growth Fund............... $ 0 $ 20 $43 $58 $18 $ 0 SEI VP S&P 500 Index Fund.................. * * * * * * SEI VP Small Cap Value Fund................ $ 0 $ 6 $23 $40 $12 $ 0 SEI VP Small Cap Growth Fund............... $ 0 $ 2 $22 $29 $12 $ 0 SEI VP International Equity Fund........... $ 0 $ 0 $40 $67 $32 $41 SEI VP Emerging Markets Equity Fund........ $ 0 $ 0 $40 $50 $38 $61 SEI VP Core Fixed Income Fund.............. $ 0 $ 0 $25 $91 $25 $14 SEI VP Bond Index Fund..................... * * * * * SEI VP High Yield Bond Fund................ $ 0 $ 0 $26 $41 $19 $10 SEI VP International Fixed Income Fund..... $ 0 $ 9 $27 $43 $ 5 $ 0 SEI VP Emerging Markets Debt Fund.......... $ 0 $ 18 $29 $30 $ 0 $ 0 SEI VP Prime Obligation Fund............... $ 0 $ 0 $16 $38 $10 $ 7
* Not in operation during such period. ** For fiscal period of April 5, 2000 to December 31, 2001. S-44 THE ADVISER AND THE SUB-ADVISERS SIMC (or the "Adviser") is a wholly-owned subsidiary of SEI Investments a financial services company. The principal business address of SIMC and SEI Investments is Oaks, Pennsylvania, 19456. SEI Investments was founded in 1968, and is a leading provider of investment solutions to banks, institutional investors, investment advisers and insurance companies. Affiliates of SIMC have provided consulting advice to institutional investors for more than 20 years, including advice regarding selection and evaluation of money managers. SIMC and its affiliates currently serve as manager or administrator to more than 9 investment companies, including more than 70 funds, with more than $50.2 billion in assets as of December 31, 2001. SIMC is the investment adviser for each of the Funds, and operates as a "manager of managers." SIMC and the Trust have obtained an exemptive order from the Securities and Exchange Commission (the "SEC") that permits SIMC, with the approval of the Trust's Board of Trustees, to retain sub-advisers unaffiliated with SIMC for the Funds without submitting the sub-advisory agreements to a vote of the Fund's shareholders. The exemptive relief permits SIMC to disclose only the aggregate amount payable by SIMC to the sub-advisers under all such sub-advisory agreements for each Fund. The Funds will notify shareholders in the event of any addition or change in the identity of its sub-advisers. SIMC oversees the investment advisory services provided to the Funds and may manage the cash portion of the Funds' assets. Pursuant to separate sub-advisory agreements with SIMC, and under the supervision of the Adviser and the Board of Trustees, a number of sub-advisers (the "Sub-Advisers") are responsible for the day-to-day investment management of all or a discrete portion of the assets of the Funds. Sub-Advisers also are responsible for managing their employees who provide services to these Funds. Sub-Advisers are selected for the Funds based primarily upon the research and recommendations of SIMC, which evaluates quantitatively and qualitatively a Sub-Adviser's skills and investment results in managing assets for specific asset classes, investment styles and strategies. Subject to Board review, SIMC allocates and, when appropriate, reallocates the Funds' assets among Sub-Advisers, monitors and evaluates Sub-Adviser performance, and oversees Sub-Adviser compliance with the Funds' investment objectives, policies and restrictions. SIMC HAS ULTIMATE RESPONSIBILITY FOR THE INVESTMENT PERFORMANCE OF THE FUNDS DUE TO ITS RESPONSIBILITY TO OVERSEE SUB-ADVISERS AND RECOMMEND THEIR HIRING, TERMINATION AND REPLACEMENT. For these advisory services, SIMC receives a fee, which is calculated daily and paid monthly, at the following annual rates (shown as a percentage of the average daily net assets of each Fund):
FUND ADVISORY FEE ------------------------------------------------------------ ------------ SEI VP Large Cap Value Fund................................. 0.35% SEI VP Large Cap Growth Fund................................ 0.40% SEI VP S&P 500 Index Fund................................... 0.03% SEI VP Small Cap Value Fund................................. 0.65% SEI VP Small Cap Growth Fund................................ 0.65% SEI VP International Equity Fund............................ 0.51% SEI VP Emerging Markets Equity Fund......................... 1.05% SEI VP Core Fixed Income Fund............................... 0.28% SEI VP Bond Index Fund...................................... 0.07% SEI VP High Yield Bond Fund................................. 0.49% SEI VP International Fixed Income Fund...................... 0.30% SEI VP Emerging Markets Debt Fund........................... 0.85% SEI VP Prime Obligation Fund................................ 0.08%
SIMC pays the Sub-Advisers a fee out of its advisory fee, which fee is based on a percentage of the average monthly market value of the assets managed by each Sub-Adviser. S-45 For the fiscal years ended December 31, 2000 and 2001, the Funds paid advisory fees as follows:
ADVISORY FEES ADVISORY FEES PAID (000) WAIVED (000) ---------------------- ---------------------- 2000** 2001 2000** 2001 -------- -------- -------- -------- SEI VP Large Cap Value Fund........................... $39 $ 72 $ 4 $36 SEI VP Large Cap Growth Fund.......................... $43 $ 72 $ 6 17 SEI VP S&P 500 Index Fund............................. * * * * SEI VP Small Cap Value Fund........................... $41 $ 80 $ 2 $ 5 SEI VP Small Cap Growth Fund.......................... $39 $ 54 $ 1 $ 3 SEI VP International Equity Fund...................... $41 $ 69 $ 4 $ 6 SEI VP Emerging Markets Equity Fund................... $45 $ 57 $19 $25 SEI VP Core Fixed Income Fund......................... $21 $ 66 $ 4 $23 SEI VP Bond Index Fund................................ * * * * SEI VP High Yield Bond Fund........................... $32 $ 54 $ 5 $ 3 SEI VP International Fixed Income Fund................ $14 $ 25 $ 0 $ 1 SEI VP Emerging Markets Debt Fund..................... $26 $ 39 $12 $24 SEI VP Prime Obligation Fund.......................... $ 3 $ 7 $ 0 $ 0
* Not in operation during such period. ** For fiscal period of April 5, 2000 to December 31, 2001. For the fiscal years ended December 31, 2000 and 2001, the Funds paid sub-advisory fees as follows:
SUB-ADVISORY FEES PAID (000) ------------------- 2000** 2001 -------- -------- SEI VP Large Cap Value Fund................................. $21 $31 SEI VP Large Cap Growth Fund................................ $24 $43 SEI VP S&P 500 Index Fund................................... * * SEI VP Small Cap Value Fund................................. $31 $65 SEI VP Small Cap Growth Fund................................ $31 $44 SEI VP International Equity Fund............................ $28 $47 SEI VP Emerging Markets Equity Fund......................... $37 $45 SEI VP Core Fixed Income Fund............................... $ 8 $29 SEI VP Bond Index Fund...................................... * * SEI VP High Yield Bond Fund................................. $21 $33 SEI VP International Fixed Income Fund...................... $ 7 $13 SEI VP Emerging Markets Debt Fund........................... $19 $28 SEI VP Prime Obligation Fund................................ $ 3 $ 7
* Not in operation during such period. ** For fiscal period of April 5, 2000 to December 31, 2001. For the fiscal years ended December 31, 2000 and 2001, SIMC paid LSV, which is an affiliated person of SIMC, as follows:
FEES PAID FEE WAIVERS (000) (000) ------------------- ------------------- 2000* 2001 2000* 2001 -------- -------- -------- -------- SEI VP Large Cap Value Fund................................. $10 $16 $0 $0 SEI VP Small Cap Value Fund................................. $25 $33 $0 $0
* For fiscal period of April 5, 2000 to December 31, 2000. S-46 THE SUB-ADVISERS ALLIANCE CAPITAL MANAGEMENT L.P.--Alliance Capital Management L.P. ("Alliance Capital") serves as a Sub-Adviser for a portion of the assets of the SEI VP Large Cap Growth Fund. Alliance Capital is a Delaware limited partnership of which Alliance Capital Management Corporation ("ACMC"), an indirect wholly-owned subsidiary of AXA Financial, Inc. ("AXA Financial") is the general partner. Alliance Capital Management Holding L.P. ("Alliance Holding") owns approximately 30% of the outstanding units of limited partnership interest in Alliance Capital ("Alliance Units"). Equity interests of Alliance Holding are traded on the NYSE in the form of units ("Alliance Holding Units"). AXA Financial, together with ACMC and certain of its wholly-owned subsidiaries, beneficially owned approximately 2% of the outstanding Alliance Holding Units and 51.7% of the outstanding Alliance Units. AXA Financial, a Delaware corporation, is a wholly-owned subsidiary of AXA, a French company. ARTISAN PARTNERS LIMITED PARTNERSHIP--Artisan Partners Limited Partnership ("Artisan") has been approved as a Sub-Adviser for a portion of the assets of the SEI VP Small Cap Value Fund. Artisan, a privately owned multidiscipline investment firm, was founded in 1994 and is a registered investment adviser. BARCLAYS GLOBAL FUND ADVISORS--Barclays Global Fund Advisors ("BGFA") has been approved as the Sub-Adviser to the SEI VP S&P 500 Index Fund. BGFA is a majority-owned indirect subsidiary of Barclays Bank PLC, which is wholly-owned by Barclays PLC, a publicly listed holding company based in London, England. BGFA is entitled to a fee for its investment sub-advisory services, which is based on the average monthly market value of the assets of the Fund. BLACKROCK FINANCIAL MANAGEMENT, INC.--BlackRock Financial Management, Inc. ("Black-Rock") has been approved as a Sub-Adviser for a portion of the assets of the SEI VP Core Fixed Income Fund. BlackRock is a wholly-owned subsidiary of BlackRock, Inc. and an indirect, majority-owned subsidiary of The PNC Financial Services Group, Inc. BlackRock, a registered investment adviser, is a Delaware corporation. BLACKROCK INTERNATIONAL, LTD.--BlackRock International Ltd. ("BlackRock International") has been approved as a Sub-Adviser for a portion of the assets of the SEI VP International Equity Fund. BlackRock International is a wholly-owned subsidiary of BlackRock, Inc. and an indirect, majority-owned subsidiary of The PNC Financial Services Group, Inc. THE BOSTON COMPANY ASSET MANAGEMENT, LLC--The Boston Company Asset Management, LLC ("The Boston Company") has been approved as a Sub-Adviser for a portion of the assets of the SEI VP Emerging Markets Equity Fund. The Boston Company is a wholly-owned subsidiary of Mellon Financial Corporation and is a registered investment adviser. CAPITAL GUARDIAN TRUST COMPANY--Capital Guardian Trust Company ("CGTC") serves as a Sub-Adviser for a portion of the assets of the SEI VP International Equity Fund. CGTC is a wholly-owned subsidiary of The Capital Group. CHARTWELL INVESTMENT PARTNERS--Chartwell Investment Partners ("Chartwell") has been approved as a Sub-Adviser for a portion of the assets of the SEI VP Small Cap Value Fund. Chartwell is an employee-owned firm founded on April 1, 1997 and is a registered investment adviser. CREDIT SUISSE ASSET MANAGEMENT LLC--Credit Suisse Asset Management, LLC ("Credit Suisse") has been approved as a Sub-Adviser for a portion of the assets of the SEI VP High Yield Bond Fund. Credit Suisse together with its predecessor firms, has been engaged in the investment advisory business for more than 50 years. Credit Suisse is an indirect, wholly-owned subsidiary of Credit Suisse Group, one of the worlds leading banks. DEUTSCHE ASSET MANAGEMENT INC.--Deutsche Asset Management Inc. ("DAMI") serves as a Sub-Adviser to a portion of the assets of the SEI VP Large Cap Value Fund. DAMI was founded in 1838 as S-47 Morgan Grenfell, Inc. and has provided asset management services since 1953. DAMI is part of the Deutsche Asset Management Group, the asset management division of Deutsche Bank AG. DAVID J. GREENE AND COMPANY, LLC--David J. Greene and Company, LLC ("David J. Greene") has been approved as a Sub-Adviser to a portion of the assets of the SEI VP Small Cap Value Fund. David J. Greene is a New York limited liability company founded in 1938, and changed from a partnership to an LLC in January 1998. Three family principals, Michael Greene, Alan Greene, and James Greene, collectively own more than 25% of the firm. DUNCAN-HURST CAPITAL MANAGEMENT INC.--Duncan-Hurst Capital Management Inc. ("Duncan-Hurst") has been approved as a Sub-Adviser for a portion of the assets of the SEI VP Large Cap Growth Fund. Duncan-Hurst is 100% owned by William Duncan, Jr., Frank P. Hurst and Rebecca LaFerney, all active employees of the firm. IRIDIAN ASSET MANAGEMENT LLC--Iridian Asset Management LLC ("Iridian") has been approved as a Sub-Adviser for a portion of the assets of the SEI VP Large Cap Value Fund. Iridian, a registered investment adviser, is approximately 69.7% owned by active employees. LSV ASSET MANAGEMENT--LSV Asset Management ("LSV") serves as a Sub-Adviser to a portion of the assets of the SEI VP Large Cap Value and SEI VP Small Cap Value Funds. The general partners of LSV developed a quantitative value investment philosophy that has been used to manage assets over the past 7 years. LSV is a registered investment adviser organized as a Delaware general partnership. An affiliate of SIMC owns an interest in LSV. MAZAMA CAPITAL MANAGEMENT, LLC--Mazama Capital Management, Inc. ("Mazama"), has been approved as a Sub-Adviser for a portion of the assets of the SEI VP Small Cap Growth Fund. Mazama, a registered investment adviser, is 93% employee-owned. MCKINLEY CAPITAL MANAGEMENT INC.--McKinley Capital Management, Inc. ("McKinley Capital") has been approved a Sub-Adviser to a portion of the assets of the SEI VP Small Cap Growth Fund. McKinley Capital was founded in 1990 and is wholly-owned by its employees. MELLON BOND ASSOCIATES, LLP--Mellon Bond Associates, LLP ("MBA") has been approved as the Sub-Adviser to the SEI VP Bond Index Fund. MBA is a limited liability partnership, which is majority owned by its limited partner, Mellon Bank, N.A. Mellon Bank, N.A., is in turn a wholly-owned subsidiary of Mellon Financial Corporation. MONTAG & CALDWELL, INC.--Montag & Caldwell, Inc. ("Montag & Caldwell") has been approved as a Sub-Adviser to a portion of the assets of the SEI VP Large Cap Growth Fund. Montag & Caldwell was founded in 1945 and is incorporated in Georgia. ABN AMRO Asset Management Holdings, Inc. is the parent company of Montag & Caldwell. MORGAN STANLEY INVESTMENT MANAGEMENT INC.--Morgan Stanley Investment Management Inc. ("Morgan Stanley") has been approved as a Sub-Adviser for a portion of the assets of the SEI VP Emerging Markets Equity and SEI VP International Equity Funds. Morgan Stanley is a registered investment adviser and Morgan Stanley Dean Witter & Co. is the direct parent of Morgan Stanley. NICHOLAS-APPLEGATE CAPITAL MANAGEMENT--Nicholas-Applegate Capital Management ("Nicholas-Applegate") has been approved as a Sub-Adviser to a portion of the assets of the SEI VP High Yield Bond and SEI VP Small Cap Growth Funds. Nicholas-Applegate is an affiliate of Allianz AG. Allianz AG owns Allianz of America, Inc., which in turn, through its wholly-owned subsidiary Allianz Dresner Asset Management, owns Nicholas-Applegate. NOMURA CORPORATE RESEARCH AND ASSET MANAGEMENT INC.--Nomura Corporate Research and Asset Management Inc. ("Nomura") has been approved as a Sub-Adviser to a portion of the assets of the SEI VP High Yield Bond Fund. Nomura, a subsidiary of Nomura Holdings America, Inc., is a registered investment adviser. S-48 OECHSLE INTERNATIONAL ADVISERS, LLC--Oechsle International Advisers, LLC ("Oechsle") serves as a Sub-Adviser for a portion of the assets of the SEI VP International Equity Fund. Oechsle, a registered investment adviser, is controlled by Oechsle Group, LLC ("OIA Group"), which owns approximately 44% of Oechsle. The Executive Committee of OIA Group, whose members are L. Sean Roche, Steven P. Langer, S. Dewey Keesler and Warren R. Walker, also exercises control of Oechsle. Each member of OIA Group owns less than 25% of the firm. PEREGRINE CAPITAL MANAGEMENT INC.--Peregrine Capital Management Inc. ("Peregrine") serves as a Sub-Adviser for a portion of the assets of the SEI VP Large Cap Growth Fund. Peregrine, a registered investment adviser, is a wholly-owned subsidiary of Wells Fargo Bank Minnesota, N.A. ROBERT W. BAIRD & CO., INCORPORATED-- Robert W. Baird & Co., Incorporated ("Baird") has been approved a Sub-Adviser for a portion of the assets of the SEI VP Core Fixed Income Fund. Robert W. Baird, a registered investment adviser, is 64% owned by Northwestern Mutual Life and 36% employee owned. RS INVESTMENT MANAGEMENT, L.P.--RS Investment Management, L.P. ("RSIM"), has been approved as a Sub-Adviser for a portion of the assets of the SEI VP Small Cap Growth Fund. RSIM, an employee-owned organization, is a registered investment adviser. SALOMON BROTHERS ASSET MANAGEMENT INC--Salomon Brothers Asset Management Inc ("SBAM") serves as the Sub-Adviser for the assets of the SEI VP Emerging Markets Debt Fund. SBAM is owned by Salomon Brothers Holding Company Inc., which is indirectly owned by Citigroup Inc. SANFORD C. BERNSTEIN & CO., LLC--Sanford C. Bernstein & Co., LLC ("Bernstein"), has been approved as a Sub-Adviser to a portion of the assets of the SEI VP Large Cap Value Fund. Bernstein is a registered investment adviser that is a wholly-owned indirect subsidiary of Alliance Capital Management L.P. ("Alliance Capital"). Bernstein's investment professionals continue the former investment management business of Sanford C. Bernstein & Co., Inc., a registered investment adviser acquired by Alliance Capital on October 2000 that was founded in 1967 and managed value oriented investment portfolios for institutions and individuals. SAWGRASS ASSET MANAGEMENT, LLC--Sawgrass Asset Management, LLC ("Sawgrass") serves as a Sub-Adviser for a portion of the assets of the SEI VP Small Cap Growth Fund. Sawgrass, an entrepreneurial startup by an experienced team of investment professionals, was founded in 1998. Sawgrass, a registered investment adviser, is primarily owned by the members of Sawgrass Asset Management Inc. and Amsouth Bank Corporation. SCHRODER INVESTMENT MANAGEMENT NORTH AMERICA INC.--Schroder Investment Management North America Inc. ("Schroders"), serves as a Sub-Adviser for a portion of the assets of the SEI VP Emerging Markets Equity Fund. Schroders is owned by two shareholders, Schroders Public Limited Company and Beinn Dubh Limited. SECURITY CAPITAL RESEARCH AND MANAGEMENT INCORPORATED--Security Capital Research and Management Incorporated ("SC-R&M") has been approved as a Sub-Adviser for a portion of the assets of the SEI VP Small Cap Value Fund. SC-R&M, a registered investment adviser, is 100% owned by Security Capital Investment Research Incorporated. SG PACIFIC ASSET MANAGEMENT, INC., AND SGY ASSET MANAGEMENT (SINGAPORE) LIMITED--SG Pacific Asset Management, Inc. ("SG Pacific") and SGY Asset Management (Singapore) Ltd. ("SGY") jointly has been approved as Sub-Advisers for a portion of the assets of the SEI VP Emerging Markets Equity Fund. Societe Generale Asset Management (North Pacific), a French financial services conglomerate, has a controlling interest in SG Yamaichi Asset Management Co., Ltd. (formerly, Yamaichi International Capital Management Co., Ltd.), the parent of SG Pacific and SGY. S-49 SHENKMAN CAPITAL MANAGEMENT--Shenkman Capital Management ("Shenkman") serves as a Sub-Adviser to a portion of the assets of the SEI VP High Yield Bond Fund. Shenkman was founded in 1985 and is independently owned by four shareholders. STERLING CAPITAL MANAGEMENT--Sterling Capital Management ("Sterling") serves as a Sub-Adviser for a portion of the assets of the SEI VP Small Cap Value Fund. Sterling, a registered investment adviser, is 100% employee owned. The five Managing Directors of Sterling Capital Management, Mark W. Whalen, David M. Ralston, Alexander W. McAlister, Eduardo A. Brea, and Brian R. Walter, share equal ownership in the firm. STRATEGIC FIXED INCOME, L.L.C.--Strategic Fixed Income, L.L.C. ("Strategic") serves as the Sub-Adviser for the SEI VP International Fixed Income Fund. Strategic is a Delaware limited liability company whose predecessor was formed in 1991 to manage multi-currency fixed income and hedge fun portfolios. The managing member of the firm is Gobi Investment Inc., of which Kenneth Windheim is the sole shareholder, and the member is Strategic Investment Management. TRANSAMERICA INVESTMENT MANAGEMENT, LLC--Transamerica Investment Management, LLC ("TIM") has been approved as a Sub-Adviser to a portion of the assets of the SEI VP Large Cap Growth Fund. TIM was founded in 1999, and is wholly-owned by Transamerica Investment Services, Inc., a subsidiary of AEGON, N.V. WALL STREET ASSOCIATES--Wall Street Associates ("WSA") serves as a Sub-Adviser for a portion of the assets of the SEI VP Small Cap Growth Fund. WSA, a registered investment adviser and founded in 1987, is wholly owned by five active employees: William Jeffery, III, Kenneth McCain, David Baratta, Dirk Anderson and Paul LeCoq. WELLINGTON MANAGEMENT COMPANY, LLP--Wellington Management Company, LLP ("Wellington Management"), has been approved as a Sub-Adviser for the SEI VP Prime Obligation and SEI VP Small Cap Growth Funds. Wellington Management and its predecessor organizations have provided investment advisory services to investment companies since 1928 and to investment counseling clients since 1960. Wellington Management is a Massachusetts limited liability partnership whose managing partners are Laurie A. Gabriel, Duncan M. McFarland and John R. Ryan. WESTERN ASSET MANAGEMENT COMPANY--Western Asset Management Company ("Western") serves as a Sub-Adviser for a portion of the assets of the SEI VP Core Fixed Income Fund. Western is a wholly-owned subsidiary of Legg Mason, Inc., a financial services company located in Baltimore, Maryland. Western was founded in 1971 and specializes in the management of fixed income funds. The Advisory Agreement and certain of the sub-advisory agreements provide that SIMC (or any Sub-Adviser) shall not be protected against any liability to the Trust or its shareholders by reason of willful misfeasance, bad faith or gross negligence on its part in the performance of its duties or from reckless disregard of its obligations or duties thereunder. In addition, certain of the sub-advisory agreements provide that the Sub-Adviser shall not be protected against any liability to the Trust or its shareholders by reason of willful misfeasance, bad faith or negligence on its part in the performance of its duties, or from reckless disregard of its obligations or duties thereunder. The continuance of each advisory and sub-advisory agreement must be specifically approved at least annually (i) by the vote of a majority of the outstanding shares of that Fund or by the Trustees, and (ii) by the vote of a majority of the Trustees who are not parties to such agreement or "interested persons" of any party thereto, cast in person at a meeting called for the purpose of voting on such approval. Each advisory or sub-advisory agreement will terminate automatically in the event of its assignment, and is terminable at any time without penalty by the Trustees of the Trust or, with respect to a Fund, by a majority of the outstanding shares of that Fund, on not less than 30 days' nor more than 60 days' written notice to the Adviser or Sub-Adviser, or by the Adviser or Sub-Adviser on 90 days' written notice to the Trust. S-50 DISTRIBUTION AND SHAREHOLDER SERVICING SEI Investments Distribution Co. (the "Distributor"), a wholly-owned subsidiary of SEI Investments serves as each Fund's distributor pursuant to a distribution agreement (the "Distribution Agreement") with the Trust. The Distributor and the Trust are parties to a distribution agreement ("Distribution Agreement"). No compensation is paid to the Distributor under the Distribution Agreement for distribution services for the shares of any Fund. The Fund may execute brokerage or other agency transactions through the Distributor, for which the Distributor may receive compensation. The Distributor may, from time to time and at its own expense, provide promotional incentives, in the form of cash or other compensation, to certain financial institutions whose representatives have sold or are expected to sell significant amounts of the Funds' shares. The Distribution Agreement shall be reviewed and ratified at least annually (i) by the Trust's Trustees or by the vote of a majority of the outstanding shares of the Trust, and (ii) by the vote of a majority of the Trustees of the Trust who are not parties to the Distribution Agreement or interested persons (as defined in the 1940 Act) of any party to the Distribution Agreement, cast in person at a meeting called for the purpose of voting on such approval. The Distribution Agreement will terminate in the event of any assignment, as defined in the 1940 Act, and is terminable with respect to a particular Fund on not less than sixty days' notice by the Trust's Trustees, by vote of a majority of the outstanding shares of such Fund or by the Distributor. The Distributor will receive no compensation for the distribution of Fund shares. The SEI VP Prime Obligation Fund has adopted a shareholder servicing plan for its Class B Shares (the "Service Plan"). Under the Service Plan, the Distributor may perform, or may compensate other service providers for performing, the following shareholder services: maintaining client accounts; arranging for bank wires; responding to client inquiries concerning services provided on investments; assisting clients in changing dividend options, account designations and addresses; sub-accounting; providing information on share positions to clients; forwarding shareholder communications to clients; processing purchase, exchange and redemption orders; and processing dividend payments. Under the Service Plan, the Distributor may retain as a profit any difference between the fee it receives and the amount it pays to third parties. Although banking laws and regulations prohibit banks from distributing shares of open-end investment companies such as the Trust, according to an opinion issued to the staff of the SEC by the Office of the Comptroller of the Currency, financial institutions are not prohibited from acting in other capacities for investment companies, such as providing shareholder services. Should future legislative, judicial or administrative action prohibit or restrict the activities of financial institutions in connection with providing shareholder services, the Trust may be required to alter materially or discontinue its arrangements with such financial institutions. CODE OF ETHICS The Board of Trustees of SEI Insurance Products Trust has adopted a Code of Ethics pursuant to Rule 17j-1 under the Investment Company Act of 1940. In addition, the Adviser, Sub-Adviser and Distributor have adopted Codes of Ethics pursuant to Rule 17j-1. These Codes of Ethics apply to the personal investing activities of trustees, officers and certain employees ("access persons"). Rule 17j-1 and the Codes are reasonably designed to prevent unlawful practices in connection with the purchase or sale of securities by access persons. Under each Code of Ethics, access persons are permitted to engage in personal securities transactions, but are required to report their personal securities transactions for monitoring purposes. In addition, certain access persons are required to obtain approval before investing in initial public offerings or private placements, or are prohibited from making such investments. Copies of these Codes of Ethics are on file with the Securities and Exchange Commission, and are available to the public. S-51 TRUSTEES AND OFFICERS OF THE TRUST BOARD RESPONSIBILITIES. The management and affairs of the Trust and each of the Funds are supervised by the Trustees under the laws of the Commonwealth of Massachusetts. Each Trustee is responsible for overseeing each of the Funds and each fund of SEI Asset Allocation Trust, SEI Daily Income Trust, SEI Index Funds, SEI Institutional International Trust, SEI Institutional Investments Trust, SEI Liquid Asset Trust and SEI Tax Exempt Trust (the "Fund Complex"), which includes funds not described in this SAI. The Trustees have approved contracts, as described above, under which certain companies provide essential management services to the Trust. MEMBERS OF THE BOARD. Set forth below are the names, dates of birth, position with the Trust, length of term of office, and the principal occupations for the last five years of each of the persons currently serving as Trustees of the Trust. Unless otherwise noted, the business address of each Trustee is SEI Investments Company, Oaks, Pennsylvania 19456. ROBERT A. NESHER (DOB 08/17/46)--Chairman of the Board of Trustees* (since 1999)--Currently performs various services on behalf of SEI Investments for which Mr. Nesher is compensated. Executive Vice President of SEI Investments, 1986-1994. Director and Executive Vice President of the Adviser, the Administrator and the Distributor, 1981-1994. Trustee of The Advisors' Inner Circle Fund, The Arbor Fund, Bishop Street Funds, Expedition Funds, The MDL Funds, SEI Asset Allocation Trust, SEI Daily Income Trust, SEI Index Funds, SEI Institutional International Trust, SEI Institutional Investments Trust, SEI Institutional Managed Trust, SEI Liquid Asset Trust and SEI Tax Exempt Trust. WILLIAM M. DORAN (DOB 05/26/40)--Trustee* (since 1999)--1701 Market Street, Philadelphia, PA 19103. Partner, Morgan, Lewis & Bockius LLP (law firm), counsel to the Trust, SEI Investments, the Adviser, the Administrator and the Distributor. Director of SEI Investments since 1974; Secretary of SEI Investments since 1978. Trustee of The Advisors' Inner Circle Fund, The Arbor Fund, Expedition Funds, The MDL Funds, SEI Asset Allocation Trust, SEI Daily Income Trust, SEI Index Funds, SEI Institutional International Trust, SEI Institutional Investments Trust, SEI Institutional Managed Trust, SEI Liquid Asset Trust and SEI Tax Exempt Trust. F. WENDELL GOOCH (DOB 12/03/32)--Trustee (since 1999)--President, Orange County Publishing Co., Inc.; Publisher, Paoli News and Paoli Republican; and Editor, Paoli Republican, October 1981-January 1997. President, H&W Distribution, Inc., since July 1984. Executive Vice President, Trust Department, Harris Trust and Savings Bank and Chairman of the Board of Directors of The Harris Trust Company of Arizona before January 1981. Trustee of SEI Asset Allocation Trust, SEI Daily Income Trust, SEI Index Funds, SEI Institutional International Trust, SEI Institutional Investments Trust, SEI Institutional Managed Trust, SEI Liquid Asset Trust, SEI Tax Exempt Trust, STI Classic Funds and STI Classic Variable Trust. JAMES M. STOREY (DOB 04/12/31)--Trustee (since 1999)--Partner, Dechert Price & Rhoads (law firm), September 1987-December 1993. Trustee of The Advisors' Inner Circle Fund, The Arbor Fund, Expedition Funds, SEI Asset Allocation Trust, SEI Daily Income Trust, SEI Index Funds, SEI Institutional International Trust, SEI Institutional Investments Trust, SEI Institutional Managed Trust, SEI Liquid Asset Trust and SEI Tax Exempt Trust. GEORGE J. SULLIVAN, JR. (DOB 11/13/42)--Trustee (since 1999)--Self Employed Consultant, Newfound Consultants Inc. since April 1997. Hedge Fund Manager, Teton Partners, L.P., June 1991-December 1996; Hedge Fund Manager, Noble Partners, L.P., March 1991-December 1996; Treasurer and Clerk, Peak Asset Management, Inc., since 1991; Trustee, State Street Navigator Securities Lending Trust, since 1995; Trustee, The Fulcrum Trust (Allmerica Insurance). Trustee of The Advisors' Inner Circle Fund, ------------------------ *Messrs. Nesher and Doran are Trustees who may be deemed to be "interested" persons of the Fund as that term is defined in the 1940 Act by virtue of their affiliation with the Trust's Adviser and Distributor. S-52 The Arbor Fund, Expedition Funds, SEI Asset Allocation Trust, SEI Daily Income Trust, SEI Index Funds, SEI Institutional International Trust, SEI Institutional Investments Trust, SEI Institutional Managed Trust, SEI Liquid Asset Trust and SEI Tax Exempt Trust. ROSEMARIE B. GRECO (DOB 03/31/46)--Trustee (since 1999)--Consultant, Grecoventures Ltd. Consulting since May 1999. Interim President & Chief Executive Officer, Private Industry Council of Philadelphia , April 1998- August 1998; Co-Chairman, Welfare to Work Program. President, Corestates Financial Corp., 1996-1997; Chief Executive Officer and President, Corestates Bank, N.A., 1994-1997; Director, Sunoco, Inc.; Director, Exelon Corporation; Director, Radian Group, Inc.; Trustee, Pennsylvania Real Estate Investment Trust. Trustee of SEI Asset Allocation Trust, SEI Daily Income Trust, SEI Index Funds, SEI Institutional International Trust, SEI Institutional Investments Trust, SEI Institutional Managed Trust, SEI Liquid Asset Trust and SEI Tax Exempt Trust. BOARD STANDING COMMITTEES. The Board has established the following standing committees: - AUDIT COMMITTEE. The Board has a standing Audit Committee that is composed of each of the independent Trustees of the Trust. The Audit Committee operates under a written charter approved by the Board. The principal responsibilities of the Audit Committee include: recommending which firm to engage as the Trust's independent auditor and whether to terminate this relationship; reviewing the independent auditors' compensation, the proposed scope and terms of its engagement, and the firm's independence; serving as a channel of communication between the independent auditor and the Trustees; reviewing the results of each external audit, including any qualifications in the independent auditors' opinion, any related management letter, management's responses to recommendations made by the independent auditors in connection with the audit, reports submitted to the Committee by the internal auditing department of the Trust's Administrator that are material to the Trust as a whole, if any, and management's responses to any such reports; reviewing the Trust's audited financial statements and considering any significant disputes between the Trust's management and the independent auditor that arose in connection with the preparation of those financial statements; considering, in consultation with the independent auditors and the Trust's senior internal accounting executive, if any, the independent auditors' report on the adequacy of the Trust's internal financial controls; reviewing, in consultation with the Trust's independent auditors, major changes regarding auditing and accounting principles and practices to be followed when preparing the Trust's financial statements; and other audit related matters. Messrs. Gooch, Storey and Sullivan and Ms. Greco currently serve as members of the Audit Committee. The Audit Committee meets periodically, as necessary, and met 4 times in the most recently completed Trust fiscal year. - FAIR VALUE PRICING COMMITTEE. The Board has a standing Fair Value Pricing Committee that is composed of at least one Trustee and various representatives of the Trust's service providers, as appointed by the Board. The Fair Value Pricing Committee operates under procedures approved by the Board. The principal responsibilities of the Fair Value Pricing Committee are to determine the fair value of securities for which current market quotations are not readily available. The Fair Value Pricing Committee's determinations are reviewed by the Board. Messrs. Nesher and Sullivan currently serves as the Board's delegates on the Fair Value Pricing Committee. The Fair Value Pricing Committee meets periodically, as necessary, and met 19 times in the most recently completed Trust fiscal year. - NOMINATING COMMITTEE. The Board has a standing Nominating Committee that is composed of each of the independent Trustees of the Trust. The principal responsibility of the Nominating Committee are to consider, recommend and nominate candidates to fill vacancies on the Trust's Board, if any. The Nominating Committee does not have specific procedures in place to consider nominees recommended by shareholders, but would consider such nominees if submitted in accordance with Rule 14a-8 of the Securities Exchange Act of 1934 (the "1934 Act") in conjunction with a shareholder meeting to consider the election of Trustees. Messrs. Gooch, Storey and Sullivan S-53 and Ms. Greco currently serve as members of the Nominating Committee. The Nominating Committee meets periodically, as necessary, and did not meet in during the most recently completed Trust fiscal year. BOARD CONSIDERATIONS IN APPROVING THE ADVISORY AND SUB-ADVISORY AGREEMENTS. As discussed in the section of this SAI entitled "The Adviser and the Sub-Advisers," the Board continuance of the advisory and each sub-advisory agreement must be specifically approved at least annually (i) by the vote of the Trustees or by a vote of the shareholders of the Fund and (ii) by the vote of a majority of the Trustees who are not parties to the advisory and each sub-advisory agreement or "interested persons" of any party thereto, cast in person at a meeting called for the purpose of voting on such approval. Each year, the Board of Trustees calls and holds a meeting to decide whether to renew each advisory and sub-advisory agreement for the upcoming year. In preparation for the meeting, the Board requests and reviews a wide variety of information from the Adviser and sub-advisers. The Trustees use this information, as well as other information that the Adviser, the sub-advisers and other Fund service providers may submit to the Board, to help them decide whether to renew each advisory and sub-advisory agreement for another year. Before meeting for the renewal of the advisory or sub-advisory agreements, the Board requested and received written materials from the Adviser and each sub-adviser about: (a) the quality of the Adviser's and sub-adviser's investment management and other services; (b) the Adviser's and sub-adviser's investment management personnel; (c) the Adviser's and sub-adviser's operations and financial condition; (d) the Adviser's and sub-adviser's brokerage practices (including any soft dollar arrangements) and investment strategies; (e) the level of the advisory fees that the Adviser and each sub-adviser charges a Fund compared with the fees each charges to comparable mutual funds or accounts (if any); (f) a Fund's overall fees and operating expenses compared with similar mutual funds; (g) the level of the Adviser's and each sub-adviser's profitability from its Fund-related operations; (h) the Adviser's compliance systems; (i) the Adviser's and sub-adviser's policies on and compliance procedures for personal securities transactions; (j) the Adviser's and sub-adviser's reputation, expertise and resources in domestic financial markets; and (k) a Fund's performance compared with similar mutual funds. At the meeting, representatives from the Adviser and sub-adviser presented additional oral and written information to the Board to help the Board evaluate the Adviser's and sub-adviser's fee and other aspects of the agreements. Other Fund service providers also provided the Board with additional information at the meeting. The Trustees then discussed the written materials that the Board received before the meeting and the Adviser's and sub-adviser's oral presentation and any other information that the Board received at the meeting, and deliberated on the renewal of each advisory and sub-advisory agreement in light of this information. In its deliberations, the Board did not identify any single piece of information that was all-important, controlling or determinative of its decision. Based on the Board's deliberations and its evaluation of the information described above, the Board, including all of the independent Trustees, unanimously: (a) concluded that terms of the agreements are fair and reasonable; (b) concluded that the Adviser's and each sub-adviser's fees are reasonable in light of the services that the Adviser and each sub-adviser provide to the Fund; and (c) agreed to renew the advisory and each sub-advisory agreement for another year. FUND SHARES OWNED BY BOARD MEMBERS. The following table shows the dollar amount range of each Trustee's "beneficial ownership" of shares of each of the Funds as of the end of the most recently completed calendar year. Dollar amount ranges disclosed are established by the SEC. "Beneficial ownership" is determined in accordance with Rule 16a-1(a)(2) under the Securities Exchange Act of 1934 S-54 ("1934 Act"). The Trustees and officers of the Trust own less than 1% of the outstanding shares of the Trust.
AGGREGATE DOLLAR RANGE OF SHARES NAME DOLLAR RANGE OF FUND SHARES (FUND)* (ALL FUNDS)* ---------------------------- ----------------------------------- -------------------------------- Nesher...................... None Over $100,000 Doran....................... None None Gooch....................... None Over $100,000 Storey...................... None None Sullivan.................... None None Greco....................... None None
------------------------ *Valuation date is December 31, 2001. BOARD COMPENSATION. The Trust paid the following fees to the Trustees during its most recently completed fiscal year.
PENSION OR RETIREMENT ESTIMATED ANNUAL TOTAL COMPENSATION AGGREGATE BENEFITS ACCRUED AS BENEFITS UPON FROM THE TRUST AND NAME COMPENSATION PART OF FUND EXPENSES RETIREMENT FUND COMPLEX* --------------------- ------------ --------------------- ---------------- ------------------ Nesher............... $ 0 N/A N/A $ 0 Doran................ $ 0 N/A N/A $ 0 Gooch................ $18,903 N/A N/A $122,100 Storey............... $18,903 N/A N/A $122,100 Sullivan............. $18,903 N/A N/A $122,100 Greco................ $18,903 N/A N/A $122,100
Mr. Edward W. Binshadler is a Trustee Emeritus of the Trust. Mr. Binshadler serves as a consultant to the Audit Committee and receives as compensation, $5,000 per Audit Committee meeting attended. TRUST OFFICERS. Set forth below are the names, dates of birth, position with the Trust, length of term of office, and the principal occupations for the last five years of each of the persons currently serving as Executive Officers of the Trust. Unless otherwise noted, the business address of each Officer is SEI Investments Company, Oaks, Pennsylvania 19456. None of the Officers receive compensation from the Trust for their services. Certain officers of the Trust also serve as officers of some or all of the following: The Achievement Funds Trust, Alpha Select Funds, Amerindo Funds Inc., The Arbor Fund, Armada Funds, The Armada Advantage Fund, Bishop Street Funds, Causeway Capital Management Trust, CNI Charter Funds, The Expedition Funds, First Focus Funds, Inc., Friends Ivory Funds, HighMark Funds, iShares, Inc., iShares Trust, JohnsonFamily Funds, Inc., The MDL Funds, The Nevis Fund, Inc., Oak Associates Funds, The PBHG Funds, Inc., PBHG Insurance Series Fund, Inc., SEI Asset Allocation Trust, Pitcairn Funds, SEI Daily Income Trust, SEI Index Funds, SEI Institutional International Trust, SEI Institutional Investments Trust, SEI Institutional Managed Trust, SEI Liquid Asset Trust, SEI Tax Exempt Trust, STI Classic Funds, STI Classic Variable Trust, TIP Funds, UAM Funds Trust, UAM Funds, Inc. and UAM Funds, Inc. II., each of which is an open-end management investment company managed by SEI Investments Mutual Funds Services or its affiliates and, except for PBHG Advisor Funds, Inc., distributed by SEI Investments Distribution Co. EDWARD D. LOUGHLIN (DOB 03/07/51)--President and Chief Executive Officer (since 1999)--Executive Vice President and President--Asset Management Division of SEI Investments since 1993. Executive Vice President of the Adviser and the Administrator since 1994. Senior Vice President of the Distributor, 1986-1991; Vice President of the Distributor, 1981-1986. TIMOTHY D. BARTO (DOB03/28/68)--Vice President and Assistant Secretary (since 1999)--Employed by SEI Investments since October 1999. Vice President and Assistant Secretary of the Adviser, S-55 Administrator and Distributor since December 1999. Associate, Dechert Price & Rhoads (law firm), 1997-1999. Associate, Richter, Miller & Finn (law firm), 1993-1997. TODD B. CIPPERMAN (DOB 02/14/66)--Vice President and Assistant Secretary (since 1999)--Senior Vice President and General Counsel of SEI Investments; Senior Vice President, General Counsel and Secretary of the Adviser, the Administrator and the Distributor since 2000. Vice President and Assistant Secretary of SEI Investments, the Adviser, the Administrator and the Distributor, 1995-2000. Associate, Dewey Ballantine (law firm), 1994-1995. JAMES R. FOGGO (DOB 06/30/64)--Controller and Chief Financial Officer (since 2000)--Vice President and Assistant Secretary of SEI Investments since January 1998. Vice President and Secretary of the Adviser, Administrator and Distributor since May 1999. Associate, Paul, Weiss, Rifkind, Wharton & Garrison (law firm), 1998. Associate, Baker & McKenzie (law firm), 1995-1998. Associate, Battle Fowler L.L.P. (law firm), 1993-1995. LYDIA A. GAVALIS (DOB 06/05/64)--Vice President and Assistant Secretary (since 1999)--Vice President and Assistant Secretary of SEI Investments, the Adviser, the Administrator and the Distributor since 1998. Assistant General Counsel and Director of Arbitration, Philadelphia Stock Exchange, 1989-1998. CHRISTINE M. MCCULLOUGH (DOB 12/02/60)--Vice President and Assistant Secretary (since 1999)--Employed by SEI Investments since November 1, 1999. Vice President and Assistant Secretary of the Adviser, the Administrator and the Distributor since December 1999. Associate, White and Williams LLP (law firm), 1991-1999. Associate, Montgomery, McCracken, Walker & Rhoads (law firm), 1990-1991. SHERRY KAJDAN VETTERLEIN (DOB 06/22/62)--Vice President and Secretary (since 2001)--Vice President and Assistant Secretary of the Administrator and Distributor since January 2001. Shareholder/ Partner, Buchanan Ingersoll Professional Corporation, 1992-2000. ROBERT S. LUDWIG (DOB 3/12/50)--Vice President and Assistant Secretary (since 1999)--Employed by SEI Investments since 1985. Senior Vice President and Chief Investment Officer of SEI Asset Management Group since 1995. Manager of Product Development for SEI's institutional mutual funds and repurchase trading desk from 1985- 1995. Held various product management and development positions at Chase Econometrics and Interactive Data Corporation from 1974-1985. WILLIAM E. ZITELLI, JR. (DOB 6/14/68)--Vice President and Assistant Secretary (since 2001)--Vice President and Assistant Secretary of the Administrator and Distributor since August 2000. Vice President, Merrill Lynch & Co. Asset Management Group, 1998-2000. Associate, Pepper Hamilton LLP (law firm), 1997-1998. Associate, Reboul, MacMurray, Hewitt, Maynard & Kristol (law firm), 1994-1997. JOHN C. MUNCH (DOB 05/07/71)--Vice President and Assistant Secretary (since 2002)--Vice President and Assistant Secretary of the Administrator and Distributor since November 2001. Associate, Howard, Rice, Nemorvoski, Canady, Falk & Rabkin (law firm), 1998-2001. Associate, Seward & Kissel LLP (law firm), 1996-1998. PERFORMANCE From time to time, each Fund may advertise yield and/or total return. These figures will be based on historical earnings and are not intended to indicate future performance. The current yield of the SEI VP Prime Obligation Fund is calculated daily based upon the 7 days ending on the date of calculation ("base period"). The yield is computed by determining the net change (exclusive of capital changes) in the value of a hypothetical pre-existing shareholder account having a balance of one share at the beginning of the period, subtracting a hypothetical charge reflecting deductions from shareholder accounts and dividing such net change by the value of the account at the beginning of the S-56 same period to obtain the base period return and multiplying the result by (365/7). Realized and unrealized gains and losses are not included in the calculation of the yield. The SEI VP Prime Obligation Fund computes its effective compound yield by determining the net changes, exclusive of capital changes, in the value of a hypothetical pre-existing account having a balance of one share at the beginning of the period, subtracting a hypothetical charge reflecting deductions from shareholder accounts, and dividing the difference by the value of the account at the beginning of the base period to obtain the base period return, and then compounding the base period return by adding 1, raising the sum to a power equal to 365 divided by 7, and subtracting 1 from the result, according to the following formula: Effective Yield = [(Base Period Return + 1)TO THE POWER OF 365/7] - 1. The current and the effective yields reflect the reinvestment of net income earned daily on portfolio assets. The yield of a non-money market Fund refers to the annualized income generated by an investment in such Fund over a specified 30-day period ending on the date of the most recent balance sheet. The yield is calculated by assuming that the income generated by the investment during that period generated each period over one year and is shown as a percentage of the investment. In particular, yield will be calculated according to the following formula: Yield = 2[(((a-b)/cd) + 1) TO THE POWER OF 6 -1], where a = dividends and interest earned during the period; b = expenses accrued for the period (net of reimbursement); c = the average daily number of shares outstanding during the period that were entitled to receive dividends; and d = the maximum offering price per share on the last day of the period. Actual yield will depend on such variables as asset quality, average asset maturity, the type of instruments a Fund invests in, changes in interest rates on money market instruments, changes in the expenses of the Fund and other factors. Yields are one basis upon which investors may compare the Funds with other mutual funds; however, yields of other mutual funds and other investment vehicles may not be comparable because of the factors set forth above and differences in the methods used in valuing portfolio instruments. For the seven-day period ended December 31, 2001, the end of the Trust's most recent fiscal year, the current and effective yields for the SEI VP Prime Obligation Fund were 1.56% for Class A Shares and 1.31% for Class B Shares and 1.57% for Class A Shares and 1.32% for Class B Shares, respectively. For the 30-day period ended December 31, 2001, the yield of each non-money market Fund was as follows:
FUND 30-DAY YIELD ------------------------------------------------------------ ------------ CLASS A SHARES SEI VP Large Cap Value Fund................................. 1.37% SEI VP Large Cap Growth Fund................................ 0% SEI VP S&P 500 Index Fund................................... * SEI VP Small Cap Value Fund................................. 0.31% SEI VP Small Cap Growth Fund................................ 0% SEI VP International Equity Fund............................ 0% SEI VP Emerging Markets Equity Fund......................... 0% SEI VP Core Fixed Income Fund............................... 4.75% SEI VP Bond Index Fund...................................... * SEI VP High Yield Bond Fund................................. 8.07% SEI VP International Fixed Income Fund...................... 2.83% SEI VP Emerging Markets Debt Fund........................... 8.37%
* Not in operation during such period. S-57 The total return of a non-money market Fund refers to the average compounded rate of return to a hypothetical investment for designated time periods (including, but not limited to, the period from which the Fund commenced operations through the specified date), assuming that the entire investment is redeemed at the end of each period. In particular, total return will be calculated according to the following formula: P(1 + T)TO THE POWER OF n = ERV, where P = a hypothetical initial payment of $1,000; T = average annual total return; n = number of years; and ERV = ending redeemable value of a hypothetical $1,000 payment made at the beginning of the designated time period as of the end of such period. Based on the foregoing, the average annual returns for the Funds from inception through December 31, 2001 and for the one, five and ten year periods ended December 31, 2001 were as follows:
AVERAGE ANNUAL TOTAL RETURN --------------------------------------- SINCE FUND CLASS ONE YEAR FIVE YEARS TEN YEARS INCEPTION -------------------------------- ----------- -------------- ---------- --------- -------------- SEI VP Large Cap Value Fund..... Class A(1) -2.91% * * 3.41% SEI VP Large Cap Growth Fund.... Class A(1) -27.14% * * -29.50% SEI VP S&P 500 Index Fund....... Class A(2) * * * * SEI VP Small Cap Value Fund..... Class A(1) 14.89% * * 21.62% SEI VP Small Cap Growth Fund.... Class A(1) -21.91% * * -15.14% SEI VP International Equity Class A(1) -24.05% * * -24.73% Fund........................... SEI VP Emerging Markets Equity Class A(1) -11.08% * * -28.84% Fund........................... SEI VP Core Fixed Income Fund... Class A(1) 7.69% * * 9.27% SEI VP Bond Index Fund.......... Class A(2) * * * * SEI VP High Yield Bond Fund..... Class A(1) 4.00% * * 1.39% SEI VP International Fixed Class A(1) -5.32% * * -3.71% Income Fund.................... SEI VP Emerging Markets Debt Class A(1) 12.56% * * 11.04% Fund........................... SEI VP Prime Obligation Fund.... Class A(1) 3.80% * * 4.82% Class B(3) 1.48% * * 1.48%
* Not in operation during such period. (1) April 5, 2000. (2) SEI VP S&P 500 Index Fund and SEI VP Bond Index Fund shares have not been offered prior to the date of this Statement of Additional Information. (3) June 1, 2001. The Funds may, from time to time, compare their performance to other mutual funds tracked by mutual fund rating services, to broad groups of comparable mutual funds or to unmanaged indices which may assume investment of dividends but generally do not reflect deductions for administrative and management costs. From time to time the Trust may include the names of clients of the Adviser in advertisements and/or sales literature for the Trust. DETERMINATION OF NET ASSET VALUE Each Fund's securities are valued by SEI Management. SEI Management values securities pursuant to valuations provided by an independent pricing service (generally the last quoted sale price) for each Fund except the SEI VP Prime Obligation Fund. Fund's securities listed on a securities exchange for which market quotations are available are valued at the last quoted sale price on each Business Day (defined as days on which the New York Stock Exchange is open for business ("Business Day")) or, if there is no such S-58 reported sale, at the most recently quoted bid price. Unlisted securities for which market quotations are readily available are valued at the most recently quoted bid price. The pricing service may also use a matrix system to determine valuations. This system considers such factors as security prices, yields, maturities, call features, ratings and developments relating to specific securities in arriving at valuations. The procedures of the pricing service and its valuations are reviewed by the officers of the Trust under the general supervision of the Trustees. Information about the market value of each portfolio security may be obtained by SEI Management from an independent pricing service. The pricing service relies primarily on prices of actual market transactions as well as trader quotations. However, the pricing service may use a matrix system to determine valuations of fixed income securities. This system considers such factors as security prices, yields, maturities, call features, ratings and developments relating to specific securities in arriving at valuations. The procedures used by the pricing service and its valuations are reviewed by the officers of the Trust under the general supervision of the Trustees. Securities with remaining maturities of 60 days or less and all of the securities of the SEI VP Prime Obligation Fund will be valued by the amortized cost method, which involves valuing a security at its cost on the date of purchase and thereafter (absent unusual circumstances) assuming a constant amortization to maturity of any discount or premium, regardless of the impact of fluctuations in general market rates of interest on the value of the instrument. While this method provides certainty in valuation, it may result in periods during which value, as determined by this method, is higher or lower than the price the Trust would receive if it sold the instrument. During periods of declining interest rates, the daily yield of a Fund may tend to be higher than a like computation made by a company with identical investments utilizing a method of valuation based upon market prices and estimates of market prices for all of its portfolio securities. Thus, if the use of amortized cost by a Fund resulted in a lower aggregate portfolio value on a particular day, a prospective investor in a Fund would be able to obtain a somewhat higher yield that would result from investment in a company utilizing solely market values, and existing shareholders in the Fund would experience a lower yield. The converse would apply during a period of rising interest rates. The Trust's use of amortized cost valuation with respect to SEI VP Prime Obligation Fund and the maintenance of the Fund net asset value at $1.00 are permitted, provided certain conditions are met, by Rule 2a-7, promulgated by the SEC under the 1940 Act. Under Rule 2a-7, as amended, a money market portfolio must maintain a dollar-weighted average maturity of 90 days or less and not purchase any instrument having a remaining maturity of more than 397 days. In addition, money market funds may acquire only U.S. dollar denominated obligations that present minimal credit risks and that are "eligible securities." An "eligible security" is one that is (i) rated, at the time of investment, by at least two NRSROs (one if it is the only organization rating such obligation) in the highest short-term rating category or, if unrated, determined to be of comparable quality (a "first tier security"), or (ii) rated according to the foregoing criteria in the second highest short-term rating category or, if unrated, determined to be of comparable quality ("second tier security"). The Adviser will determine that an obligation presents minimal credit risks or that unrated instruments are of comparable quality in accordance with guidelines established by the Trustees. In addition, investments in second tier securities are subject to the further constraints that (i) no more than 5% of a money market portfolio's assets may be invested in such securities in the aggregate, and (ii) any investment in such securities of one issuer is limited to the greater of 1% of the Fund's total assets or $1 million. The regulations also require the Trustees to establish procedures which are reasonably designed to stabilize the net asset value per share at $1.00 for the Fund. However, there is no assurance that the Trust will be able to meet this objective for the Fund. The Trust's procedures include the determination of the extent of deviation, if any, of the Fund's current net asset value per share calculated using available market quotations from the Fund's amortized cost price per share at such intervals as the Trustees deem appropriate and reasonable in light of market conditions and periodic reviews of the amount of the deviation and the methods used to calculate such deviation. In the event that such deviation exceeds 1/2 of 1%, the Trustees are required to consider promptly what action, if any, should be initiated, and, if the Trustees believe that the extent of any deviation may result in material dilution or other unfair results to shareholders, the Trustees are required to take such corrective action as S-59 they deem appropriate to eliminate or reduce such dilution or unfair results to the extent reasonably practicable. In addition, if the Fund incurs a significant loss or liability, the Trustees have the authority to reduce pro rata the number of shares of the Fund in each shareholder's account and to offset each shareholder's PRO RATA portion of such loss or liability from the shareholder's accrued but unpaid dividends or from future dividends. PURCHASE AND REDEMPTION OF SHARES It is currently the Trust's policy to pay all redemptions in cash. The Trust retains the right, however, to alter this policy to provide for redemptions in whole or in part by a distribution in kind of readily marketable securities held by a Fund in lieu of cash. Shareholders may incur brokerage charges on the sale of any such securities so received in payment of redemptions. However, a shareholder will at all times be entitled to aggregate cash redemptions from all Funds of the Trust during any 90-day period of up to the lesser of $250,000 or 1% of the Trust's net assets. A gain or loss for federal income tax purposes may be realized by a taxable shareholder upon an in-kind redemption depending upon the shareholder's basis in the shares of the Trust redeemed. Purchases and redemptions of shares of the SEI VP Prime Obligation Fund may be made on any day the New York Stock Exchange and the Federal Reserve System are open for business. The SEI VP Prime Obligation Fund may operate on any day that the New York Stock Exchange is closed for business, but the Federal Reserve System is open for business, for such time as sufficient liquidity exists in the Fund's principal trading markets, based on the determination of the officers of the Trust, acting in consultation with the Adviser. The Funds will notify shareholders that the SEI VP Prime Obligation Fund is open for business. The Trust reserves the right to suspend the right of redemption and/or to postpone the date of payment upon redemption for any period during which trading on the New York Stock Exchange is restricted, or during the existence of an emergency (as determined by the SEC by rule or regulation) as a result of which disposal or evaluation of the fund securities is not reasonably practicable, or for such other periods as the SEC may by order permit. The Trust also reserves the right to suspend sales of shares of the Funds for any period during which the New York Stock Exchange, the Adviser, the Administrator, the Distributor, the Sub-Advisers and/or the Custodian are not open for business. Currently, the following holidays are observed by the Trust: New Year's Day, Martin Luther King, Jr. Day, Presidents' Day, Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day. The securities may be traded on foreign markets on days other than Business Days or the net asset value of a Fund may be computed on days when such foreign markets are closed. In addition, foreign markets may close at times other than 4:00 p.m. Eastern time. As a consequence, the net asset value of a share of a Fund may not reflect all events that may affect the value of the Fund's foreign securities unless the Sub-Advisers determine that such events materially affect net asset value in which case net asset value will be determined by consideration of other factors. TAXES The following is only a summary of certain additional federal tax considerations generally affecting the Funds and their shareholders that are not described in the Funds' Prospectus. No attempt is made to present a detailed explanation of the federal, state or local tax treatment of the Funds or their shareholders and the discussion here and in the Funds' Prospectus is not intended as a substitute for careful tax planning. This discussion of federal income tax consequences is based on the Code and the regulations issued thereunder as in effect on the date of this Statement of Additional Information. New legislation, as well as administrative changes or court decisions, may significantly change the conclusions expressed herein, and may have a retroactive effect with respect to the transactions contemplated herein. S-60 Each Fund is treated as a separate entity for federal income tax purposes and is not combined with the Trust's other Funds. Each Fund intends to qualify as a regulated investment company ("RIC") under Subchapter M of the Code so that it will be relieved of federal income tax on that part of its income that is distributed to shareholders. In order to qualify for treatment as a RIC, a Fund must distribute annually to its shareholders at least 90% of its investment company taxable income (generally, net investment income plus the excess, if any, of net short-term capital gain over net long-term capital losses) ("Distribution Requirement") and also must meet several additional requirements. Among these requirements are the following: (i) at least 90% of a Fund's gross income each taxable year must be derived from dividends, interest, payments with respect to securities loans, and gains from the sale or other disposition of stock, securities or foreign currencies, or other income derived with respect to its business of investing in such stock or securities or currencies; (ii) at the close of each quarter of a Fund's taxable year, at least 50% of the value of its total assets must be represented by cash and cash items, U.S. government securities, securities of other RICs and other securities, with such other securities limited, in respect of any one issuer, to an amount that does not exceed 5% of the value of a Fund's assets and that does not represent more than 10% of the outstanding voting securities of such issuer; and (iii) at the close of each quarter of a Fund's taxable year, not more than 25% of the value of its assets may be invested in securities (other than U.S. government securities or the securities of other RICs) of any one issuer or of two or more issuers which the Fund controls and which are engaged in the same, similar, or related trades or businesses. For purposes of the 90% gross income requirement above, foreign currency gains that are not directly related to a Fund's principal business of investing in stock or securities (or options or futures with respect to stock or securities) may be excluded from income that qualifies under the 90% requirement. A Fund may invest in complex securities such as equity options, index options, repurchase agreements, and futures contracts. These investments may be subject to numerous special and complex tax rules. These rules could affect whether gains and losses recognized by a Fund are treated as ordinary income or capital gain, accelerate the recognition of income to a Fund and/or defer a Fund's ability to recognize losses. In turn, those rules may affect the amount, timing, or character of the income distributed by a Fund. Any gain or loss recognized on a sale, exchange or redemption of shares of a Fund by a shareholder who is not a dealer in securities will generally, for individual shareholders, be treated as a long-term capital gain or loss if the shares have been held for more than twelve months and otherwise will be treated as a short-term capital gain or loss. However, if shares on which a shareholder has received a net capital gain distribution are subsequently sold, exchanged or redeemed and such shares have been held for six months or less, any loss recognized will be treated as a long-term capital loss to the extent of the net capital gain distribution. In addition, the loss realized on a sale or other disposition of shares will be disallowed to the extent a shareholder repurchases (or enters into a contract to or option to repurchase) shares within a period of 61 days (beginning 30 days before and ending 30 days after the disposition of the shares). This loss disallowance rule will apply to shares received through the reinvestment of dividends during the 61-day period. If a Fund fails to qualify as a RIC for any year, all of its income will be subject to federal income tax at corporate rates, and in such event, may have an effect on the diversification of a variable separate account holding shares of such Fund. A Fund will be required in certain cases to withhold at applicable withholding rates and remit to the U.S. Treasury the amount withheld on amounts payable to any shareholder who (1) has provided the Fund either an incorrect tax identification number or no number at all, (2) who is subject to backup withholding by the Internal Revenue Service for failure to properly report payments of interest or dividends, or (3) who has failed to certify to the Fund that such shareholder is not subject to backup withholding, or (4) who has failed to certify to the Fund that such shareholder is a U.S. person (including a resident alien). No Fund will be subject to the 4% excise tax normally imposed on RICs that do not distribute substantially all of their income and gains each calendar year, because that tax does not apply to a RIC whose only shareholders are segregated asset accounts of life insurance companies held in connection with S-61 variable annuity accounts and/or variable life insurance policies, and certain trusts under qualified pension and retirement plans. Each Fund that invests in foreign securities may be subject to foreign withholding taxes with respect to its dividend and interest income from foreign countries, thus reducing the net amount available for distribution to a Fund's shareholders. The United States has entered into tax treaties with many foreign countries that may entitle a Fund to a reduced rate of, or exemption from, taxes on such income. It is impossible to determine the effective rate of foreign tax in advance because the amount of a Fund's assets to be invested within various countries is not known. STATE TAXES A Fund is not liable for any income or franchise tax in Massachusetts if it qualifies as a RIC for federal income tax purposes. Distributions by a Fund to shareholders and the ownership of shares may be subject to state and local taxes. Shareholders should consult their own tax advisers regarding the affect of federal, state and local taxes in their own individual circumstances. PORTFOLIO TRANSACTIONS The Trust has no obligation to deal with any dealer or group of dealers in the execution of transactions in portfolio securities. Subject to policies established by the Trustees, the Sub-Advisers are responsible for placing orders to execute portfolio transactions. In placing orders, it is the Trust's policy to seek to obtain the best net results taking into account such factors as price (including the applicable dealer spread), size, type and difficulty of the transaction involved, the firm's general execution and operational facilities, and the firm's risk in positioning the securities involved. While the Sub-Advisers generally seek reasonably competitive spreads or commissions, the Trust will not necessarily be paying the lowest spread or commission available. The Trust will not purchase portfolio securities from any affiliated person acting as principal except in conformity with the regulations of the SEC. The money market securities in which a Fund invests are traded primarily in the over-the-counter market. Bonds and debentures are usually traded over-the-counter, but may be traded on an exchange. Where possible, the Sub-Advisers will deal directly with the dealers who make a market in the securities involved except in those circumstances where better prices and execution are available elsewhere. Such dealers usually are acting as principal for their own account. On occasion, securities may be purchased directly from the issuer. Money market securities are generally traded on a net basis and do not normally involve either brokerage commissions or transfer taxes. The cost of executing portfolio securities transactions of a Fund will primarily consist of dealer spreads and underwriting commissions. It is expected that the Funds may execute brokerage or other agency transactions through the Distributor, a registered broker-dealer, for a commission, in conformity with the 1940 Act, the 1934 Act, as amended, and rules of the SEC. Under these provisions, the Distributor is permitted to receive and retain compensation for effecting fund transactions for a Fund on an exchange. These provisions further require that commissions paid to the Distributor by the Trust for exchange transactions not exceed "usual and customary" brokerage commissions. The rules define "usual and customary" commissions to include amounts which are "reasonable and fair compared to the commission, fee or other remuneration received or to be received by other brokers in connection with comparable transactions involving similar securities being purchased or sold on a securities exchange during a comparable period of time." In addition, a Fund may direct commission business to one or more designated broker-dealers, including the Distributor, in connection with such broker-dealer's payment of certain of the Fund's expenses. The Trustees, including those who are not "interested persons" of the Trust, have adopted procedures for evaluating the reasonableness of commissions paid to the Distributor and will review these procedures periodically. Consistent with their duty to obtain best execution, Sub-Advisers may allocate brokerage or principal business to certain broker-dealers in recognition of the sale of Fund shares. In addition, a Fund's adviser or sub-advisers may place Fund orders with qualified broker-dealers who recommend the Trust to clients, and S-62 may, when a number of brokers and dealers can provide best execution of a particular transaction, consider such recommendations by a broker or dealer in selecting among broker-dealers. The Trust does not expect to use one particular broker or dealer, and when one or more broker is believed capable of providing the best combination of price and execution, the Funds' Sub-Advisers may select a broker based upon brokerage or research services provided to the Sub-Advisers. The Sub-Advisers may pay a higher commission than otherwise obtainable from other brokers in return for such services only if a good faith determination is made that the commission is reasonable in relation to the services provided. Section 28(e) of the Securities Exchange Act of 1934 ("Section 28(e)") permits the advisers and sub-advisers, under certain circumstances, to cause each Fund to pay a broker or dealer a commission for effecting a transaction in excess of the amount of commission another broker or dealer would have charged for effecting the transaction in recognition of the value of brokerage and research services provided by the broker or dealer. Brokerage and research services include (1) furnishing advice as to the value of securities, the advisability of investing in, purchasing or selling securities, and the availability of securities or purchasers or sellers of securities; (2) furnishing analyses and reports concerning issuers, industries, securities, economic factors and trends, portfolio strategy, and the performance of accounts; and (3) effecting securities transactions and performing functions incidental thereto (such as clearance, settlement, and custody). In the case of research services, the Sub-Advisers believe that access to independent investment research is beneficial to their investment decision-making processes and, therefore, to each Fund. In addition to agency transactions, the Sub-Advisers may receive brokerage and research services in connection with certain riskless principal transactions, in accordance with applicable SEC guidance. To the extent research services may be a factor in selecting brokers, such services may be in written form or through direct contact with individuals and may include information as to particular companies and securities as well as market, economic, or institutional areas and information which assists in the valuation and pricing of investments. Examples of research-oriented services for which the Sub-Advisers might utilize Fund commissions include research reports and other information on the economy, industries, sectors, groups of securities, individual companies, statistical information, political developments, technical market action, pricing and appraisal services, credit analysis, risk measurement analysis, performance and other analysis. The Sub-Advisers may use research services furnished by brokers in servicing all client accounts and not all services may necessarily be used in connection with the account that paid commissions to the broker providing such services. Information so received by the Sub-Advisers will be in addition to and not in lieu of the services required to be performed by the Funds' Sub-Advisers under the Sub-Advisory Agreement. Any advisory or other fees paid to the Sub-Advisers are not reduced as a result of the receipt of research services. In some cases the Sub-Advisers may receive a service from a broker that has both a "research" and a "non-research" use. When this occurs, the Sub-Advisers make a good faith allocation, under all the circumstances, between the research and non-research uses of the service. The percentage of the service that is used for research purposes may be paid for with client commissions, while the Sub-Advisers will use their own funds to pay for the percentage of the service that is used for non-research purposes. In making this good faith allocation, the Sub-Advisers face a potential conflict of interest, but the Sub-Advisers believe that its allocation procedures are reasonably designed to ensure that it appropriately allocates the anticipated use of such services to their research and non-research uses. From time to time, the Fund may purchase new issues of securities for clients in a fixed price offering. In these situations, the seller may be a member of the selling group that will, in addition to selling securities, provide the Sub-Advisers with research services. The NASD has adopted rules expressly permitting these types of arrangements under certain circumstances. Generally, the seller will provide research "credits" in these situations at a rate that is higher than that which is available for typical secondary market transactions. These arrangements may not fall within the safe harbor of Section 28(e). S-63 In connection with transactions effected for Funds operating within the "Manager of Managers" structure, under this policy, the various firms that serve as money managers to certain Funds of the Trust, in the exercise of investment discretion over the assets of a Fund, may direct a portion of a Fund's brokerage to the Distributor. All such transactions directed to the Distributor must be accomplished in a manner that is consistent with the Trust's policy to achieve best net results, and must comply with the Trust's procedures regarding the execution of transactions through affiliated brokers. For the fiscal years ended December 31, 2000 and 2001, the Funds paid the following brokerage fees:
% TOTAL OF % OF TOTAL BROKERED BROKERAGE TRANSACTIONS TOTAL $ AMOUNT OF COMMISSIONS EFFECTED TOTAL $ AMOUNT OF BROKERAGE PAID THROUGH BROKERAGE COMMISSIONS PAID TO AFFILIATED AFFILIATED COMMISSIONS PAID TO AFFILIATED BROKERS BROKERS BROKERS ----------------------- --------------------- ------------------- ------------------- 2000** 2001 2000** 2001 2000** 2001 2000** 2001 ---------- ---------- --------- --------- -------- -------- -------- -------- SEI VP Large Cap Value Fund..................... $25,704.81 $25,613.94 $ 186.13 $ 276.48 1% 1% 60% 99% SEI VP Large Cap Growth Fund..................... $23,660.50 $51,140.35 $ 74.91 $ 299.24 0% 1% 26% 99% SEI VP S&P 500 Index Fund.. * * * * * * * * SEI VP Small Cap Value Fund..................... $28,745.07 $24,144.43 $ 61.41 $ 147.28 0% 1% 47% 98% SEI VP Small Cap Growth Fund..................... $19,239.20 $28,404.71 $ 48.12 $ 150.60 0% 1% 15% 99% SEI VP International Equity Fund..................... $33,299.64 $36,206.46 $ 54.34 $3,692.44 0% 10% 90% 7% SEI VP Emerging Markets Equity Fund.............. $54,114.46 $58,194.70 $ 21.13 $9,742.32 0% 18% 91% 19% SEI VP Core Fixed Income Fund..................... $ 3,971.43 $10,961.06 $1,021.43 $1,976.06 26% 18% 96% 96% SEI VP Bond Index Fund..... * * * * * * * * SEI VP High Yield Bond Fund..................... $ 0 $ 0 $ 0 $ 0 0% 0% 0% 0% SEI VP International Fixed Income Fund.............. $ 0 $ 0 $ 0 $ 0 0% 0% 0% 0% SEI VP Emerging Markets Debt Fund................ $ 0 $ 0 $ 0 $ 0 0% 0% 0% 0% SEI VP Prime Obligation Fund..................... $ 0 $ 0 $ 0 $ 0 0% 0% 0% 0%
* Not in operation during such period. ** For fiscal period of April 5, 2000 to December 31, 2000. S-64 The portfolio turnover rate for each Fund for the fiscal years ended December 31, 2000 and 2001 was:
FUND 2000** 2001 ---- -------- -------- SEI VP Large Cap Value Fund................................. 49% 42% SEI VP Large Cap Growth Fund................................ 57% 84% SEI VP S&P 500 Index Fund................................... * * SEI VP Small Cap Value Fund................................. 98% 39% SEI VP Small Cap Growth Fund................................ 116% 151% SEI VP International Equity Fund............................ 31% 41% SEI VP Emerging Markets Equity Fund......................... 117% 149% SEI VP Core Fixed Income Fund............................... 342% 423% SEI VP Bond Index Fund...................................... * * SEI VP High Yield Bond Fund................................. 5% 72% SEI VP International Fixed Income Fund...................... 100% 301% SEI VP Emerging Markets Debt Fund........................... 140% 201% SEI VP Prime Obligation Fund................................ N/A N/A
* Not in operation during such period. ** For fiscal period of April 5, 2000 to December 31, 2000. Consistent with their duty to obtain best execution, the Trust's Sub-Advisers may allocate brokerage or principal business to certain broker-dealers in recognition of the sale of Fund shares. In addition, a Fund's Sub-Advisers may place portfolio orders with qualified broker-dealers who recommend the Trust to clients, and may, when a number of brokers and dealers can provide best price and execution on a particular transaction, consider such recommendations by a broker or dealer in selecting among broker-dealers. The Trust is required to identify any securities of its "regular brokers or dealers" (as such term is defined in the 1940 Act) which the Trust has acquired during its most recent fiscal year. As of December 31, 2001, the Trust held the following securities:
AMOUNT FUND TYPE OF SECURITY NAME OF ISSUER (000) ---- ---------------- -------------------- -------- SEI VP Large Cap Value Fund..................... Equity Bear Stearns $304,000 Equity Instinet Corporation $ 2,000 Equity Lehman Brothers $ 68,000 Equity Merrill Lynch $189,000 Equity Goldman Sachs $ 81,000 SEI VP Large Cap Growth Fund.................... Equity Goldman Sachs $557,000 SEI VP S&P 500 Index Fund....................... * * * SEI VP Small Cap Value Fund..................... None None $ 0 SEI VP Small Cap Growth Fund.................... None None $ 0 SEI VP International Equity Fund................ Debt Morgan Stanley $369,000 SEI VP Emerging Markets Equity Fund............. Debt Morgan Stanley $108,000 SEI VP Core Fixed Income Fund................... Debt Goldman Sachs $105,000 SEI VP Bond Index Fund.......................... * * * SEI VP International Fixed Income Fund.......... None None $ 0 SEI VP Emerging Markets Debt Fund............... None None $ 0 SEI VP Prime Obligation Fund.................... None None $ 0
* Not in operation during such period. S-65 DESCRIPTION OF SHARES The Declaration of Trust authorizes the issuance of an unlimited number of shares of each Fund, each of which represents an equal proportionate interest in that Fund. Each share upon liquidation entitles a shareholder to a pro rata share in the net assets of that Fund. Shareholders have no preemptive rights. The Declaration of Trust provides that the Trustees of the Trust may create additional series of shares or separate classes of funds. Share certificates representing the shares will not be issued. LIMITATION OF TRUSTEES' LIABILITY The Declaration of Trust provides that a Trustee shall be liable only for his or her own willful defaults and, if reasonable care has been exercised in the selection of officers, agents, employees or administrators, shall not be liable for any neglect or wrongdoing of any such person. The Declaration of Trust also provides that the Trust will indemnify its Trustees and officers against liabilities and expenses incurred in connection with actual or threatened litigation in which they may be involved because of their offices with the Trust unless it is determined in the manner provided in the Declaration of Trust that they have not acted in good faith in the reasonable belief that their actions were in the best interests of the Trust. However, nothing in the Declaration of Trust shall protect or indemnify a Trustee against any liability for his or her willful misfeasance, bad faith, gross negligence or reckless disregard of his or her duties. VOTING Each share held entitles the shareholder of record to one vote. The shareholders of each Fund or class will vote separately on matters pertaining solely to that Fund or class, such as any distribution plan. As a Massachusetts business trust, the Trust is not required to hold annual meetings of shareholders, but approval will be sought for certain changes in the operation of the Trust and for the election of Trustees under certain circumstances. In addition, a Trustee may be removed by the remaining Trustees or by shareholders at a special meeting called upon written request of shareholders owning at least 10% of the outstanding shares of the Trust. In the event that such a meeting is requested, the Trust will provide appropriate assistance and information to the shareholders requesting the meeting. Where this Statement of Additional Information states that a Fund's investment limitation or a fundamental policy may not be changed without shareholder approval, such approval means the vote of (i) 67% or more of the Fund's shares present at a meeting if the holders of more than 50% of the outstanding shares of the Fund are present or represented by Proxy, or (ii) more than 50% of the Fund's outstanding shares, whichever is less. CUSTODIANS First Union National Bank, Broad and Chestnut Streets, P.O. Box 7618, Philadelphia, Pennsylvania 19101 acts as custodian and wire agent for the assets of SEI VP Large Cap Growth, SEI VP Large Cap Value, SEI VP S&P 500 Index, SEI VP Small Cap Growth, SEI VP Small Cap Value, SEI VP Core Fixed Income, SEI VP Bond Index, SEI VP High Yield Bond and SEI VP Prime Obligation Funds. State Street Bank and Trust Company, 225 Franklin Street, Boston, Massachusetts, 02110, acts as custodian for the assets of SEI VP International Equity, SEI VP Emerging Markets Equity, SEI VP International Fixed Income and SEI VP Emerging Markets Debt Fund. First Union National Bank and State Street Bank and Trust Company (each a "Custodian," and, together, the "Custodians") holds cash, securities and other assets of the respective Funds for which they act as Custodians as required by the 1940 Act. SHAREHOLDER LIABILITY The Trust is an entity of the type commonly known as a "Massachusetts business trust." Under Massachusetts law, shareholders of such a Trust could, under certain circumstances, be held personally liable as partners for the obligations of the Trust. Even if, however, the Trust were held to be a partnership, the possibility of the shareholders' incurring financial loss for that reason appears remote because the S-66 Trust's Declaration of Trust (i) contains an express disclaimer of shareholder liability for obligations of the Trust and requires that notice of such disclaimer be given in each agreement, obligation or instrument entered into or executed by or on behalf of the Trust or the Trustees, and (ii) provides for indemnification out of the Trust property for any shareholders held personally liable for the obligations of the Trust. CONTROL PERSONS AND PRINCIPAL HOLDERS OF SECURITIES As of April 4, 2002, the following persons were the only persons who were record owners (or, to the knowledge of the Trust, beneficial owners) of 5% and 25% or more of the shares of the Funds. Persons who owned of record or beneficially more than 25% of a Fund's outstanding shares may be deemed to control the Fund within the meaning of the 1940 Act. The Trust believes that most of the shares referred to below were held by the following persons in accounts for their fiduciary, agency or custodial customers.
PERCENTAGE FUND AND CLASS NAME AND ADDRESS OF SHAREHOLDER OF FUND ------------------------------------------- ------------------------------------- ---------- SEI VP Large Cap Value Fund-Class A General American Life Insurance Co. 14.98% Brian Pereda B1-08 13045 Tesson Ferry Rd. Saint Louis, MO 63128-3499 Transamerica Life Insurance Company 22.36% 4333 Edgewood Road NE MS2220 Cedar Rapids, IA 52499-0001 Lincoln Life Variable Annuity 61.61% SEI Variable Annuity Separate Accounts-Mutual Funds 1300 S. Clinton St. Fort Wayne, IN 46802-3518 SEI VP Large Cap Growth Fund-Class A General American Life Insurance Co. 12.36% Brian Pereda B1-08 13045 Tesson Ferry Rd. Saint Louis, MO 63128-3499 Transamerica Life Insurance Company 15.24% 4333 Edgewood Road NE MS2220 Cedar Rapids, IA 52499-0001 Lincoln Life Variable Annuity 71.68% SEI Variable Annuity Separate Accounts-Mutual Funds 1300 S. Clinton St. Fort Wayne, IN 46802-3518 SEI VP Small Cap Value Fund-Class A Transamerica Life Insurance Company 9.65% 4333 Edgewood Road NE MS2220 Cedar Rapids, IA 52499-0001 Lincoln Life Variable Annuity 59.38% SEI Variable Annuity Separate Accounts-Mutual Funds 1300 S. Clinton St. Fort Wayne, IN 46802-3518
S-67
PERCENTAGE FUND AND CLASS NAME AND ADDRESS OF SHAREHOLDER OF FUND ------------------------------------------- ------------------------------------- ---------- General American Life Insurance Co. 14.28% Brian Pereda B1-08 13045 Tesson Ferry Rd. Saint Louis, MO 63128-3499 SEI VP Small Cap Growth Fund-Class A General American Life Insurance Co. 11.66% Brian Pereda B1-08 13045 Tesson Ferry Rd. Saint Louis, MO 63128-3499 Transamerica Life Insurance Company 5.65% 4333 Edgewood Road NE MS2220 Cedar Rapids, IA 52499-0001 Lincoln Life Variable Annuity 5.06% SEI Variable Annuity Separate Accounts-Mutual Funds 1300 S. Clinton St. Fort Wayne, IN 46802-3518 SEI VP International Equity Fund-Class A General American Life Insurance Co. 15.33% Brian Pereda B1-08 13045 Tesson Ferry Rd. Saint Louis, MO 63128-3499 Lincoln Life Variable Annuity 63.25% SEI Variable Annuity Separate Accounts-Mutual Funds 1300 S. Clinton St. Fort Wayne, IN 46802-3518 Transamerica Life Insurance Company 18.59% 4333 Edgewood Road NE MS2220 Cedar Rapids, IA 52499-0001 SEI VP Emerging Markets Equity General American Life Insurance Co. 14.46% Fund-Class A Brian Pereda B1-08 13045 Tesson Ferry Rd. Saint Louis, MO 63128-3499 Transamerica Life Insurance Company 17.42% 4333 Edgewood Road NE MS2220 Cedar Rapids, IA 52499-0001 Lincoln Life Variable Annuity 56.36% SEI Variable Annuity Separate Accounts-Mutual Funds 1300 S. Clinton St. Fort Wayne, IN 46802-3518 SEI VP Core Fixed Income Fund-Class A General American Life Insurance Co. 17.91% Brian Pereda B1-08 13045 Tesson Ferry Rd. Saint Louis, MO 63128-3499
S-68
PERCENTAGE FUND AND CLASS NAME AND ADDRESS OF SHAREHOLDER OF FUND ------------------------------------------- ------------------------------------- ---------- Transamerica Life Insurance Company 10.31% 4333 Edgewood Road NE MS2220 Cedar Rapids, IA 52499-0001 Lincoln Life Variable Annuity 70.81% SEI Variable Annuity Separate Accounts-Mutual Funds 1300 S. Clinton St. Fort Wayne, IN 46802-3518 SEI VP High Yield Bond Fund-Class A General American Life Insurance Co. 7.65% Brian Pereda B1-08 13045 Tesson Ferry Rd. Saint Louis, MO 63128-3499 Transamerica Life Insurance Company 5.83% 4333 Edgewood Road NE MS2220 Cedar Rapids, IA 52499-0001 Lincoln Life Variable Annuity 52.06% SEI Variable Annuity Separate Accounts-Mutual Funds 1300 S. Clinton St. Fort Wayne, IN 46802-3518 SEI VP International Fixed Income General American Life Insurance Co. 8.49% Fund-Class A Brian Pereda B1-08 13045 Tesson Ferry Rd. Saint Louis, MO 63128-3499 Transamerica Life Insurance Company 9.44% 4333 Edgewood Road NE MS2220 Cedar Rapids, IA 52499-0001 Lincoln Life Variable Annuity 81.57% SEI Variable Annuity Separate Accounts-Mutual Funds 1300 S. Clinton St. Fort Wayne, IN 46802-3518 SEI VP Emerging Markets Debt Fund-Class A Transamerica Life Insurance Company 10.52% 4333 Edgewood Road NE MS2220 Cedar Rapids, IA 52499-0001 Lincoln Life Variable Annuity 87.06% SEI Variable Annuity Separate Accounts-Mutual Funds 1300 S. Clinton St. Fort Wayne, IN 46802-3518
S-69
PERCENTAGE FUND AND CLASS NAME AND ADDRESS OF SHAREHOLDER OF FUND ------------------------------------------- ------------------------------------- ---------- SEI VP Prime Obligation Fund-Class A Lincoln Life Variable Annuity 71.68% SEI Variable Annuity Separate Accounts-Mutual Funds 1300 S. Clinton St. Fort Wayne, IN 46802-3518 SEI VP Prime Obligation Fund-Class B American Family Life Insurance Co. 73.81% 6000 American Pkwy Madison, WI 53783-0001 American Family Life Insurance Co. 26.17% FBO Variable Account II 6000 American Pkwy Madison, WI 53783-0001
EXPERTS The financial statements incorporated by reference into this Statement of Additional Information have been incorporated by reference in reliance on the report of PricewaterhouseCoopers LLP, independent accountants, given on the authority of said firm as experts in auditing and accounting. PricewaterhouseCoopers LLP is located at Two Commerce Square, Suite 1700, 2001 Market Street, Philadelphia, Pennsylvania 19103. LEGAL COUNSEL Morgan, Lewis & Bockius LLP serves as counsel to the Trust. S-70 PART C: OTHER INFORMATION ITEM 23. EXHIBITS: (a) Agreement and Declaration of Trust dated December 14, 1998, is incorporated by reference to Exhibit (a) of Registrant's Initial Registration Statement, filed December 31, 1998. (b) By-Laws are incorporated by reference to Exhibit (a) of Registrant's Initial Registration Statement, filed December 31, 1998. (b)(2) Amended By-Laws dated February 20, 2001 are incorporated by reference to exhibit (b)(2) of Post-Effective Amendment No. 3 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 30, 2001. (c) Not Applicable. (d)(1) Investment Advisory Agreement between the Registrant and SEI Investments Management Corporation ("SIMC") is incorporated by reference to exhibit (d)(1) of Pre-Effective Amendment No. 1 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on October 12, 1999. (d)(2) Form of Investment Sub-Advisory Agreements between SIMC and [Sub-Adviser] is incorporated by reference to exhibit (d)(2) of Pre-Effective Amendment No. 1 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on October 12, 1999. (d)(3) Investment Sub-Advisory Agreement between SIMC and Alliance Capital Management, L.P. with respect to the SEI VP Large Cap Growth Fund is incorporated by reference to exhibit (d)(3) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (d)(4) Investment Sub-Advisory Agreement between SIMC and Capital Guardian Trust Company with respect to the SEI VP International Equity Fund is incorporated by reference to exhibit (d)(4) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (d)(5) Investment Sub-Advisory Agreement between SIMC and Credit Suisse Asset Management, LLC with respect to the SEI VP High Yield Bond Fund is incorporated by reference to exhibit (d)(5) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (d)(6) Investment Sub-Advisory Agreement between SIMC and LSV Asset Management, L.P. with respect to the SEI VP Large Cap Value and SEI VP Small Cap Value Funds is incorporated by reference to exhibit (d)(6) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (d)(7) Investment Sub-Advisory Agreement between SIMC and Mellon Equity Associates, LLP with respect to the SEI VP Large Cap Value Fund is incorporated by reference to exhibit (d)(7) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (d)(8) Investment Sub-Advisory Agreement between SIMC and Mellon Equity Associates, LLP with respect to the SEI VP Small Cap Value Fund is incorporated by reference to exhibit (d)(8) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (d)(9) Investment Sub-Advisory Agreement between SIMC and Nicholas-Applegate Capital Management with respect to the SEI VP Emerging Markets Equity and SEI VP Small Cap Value Funds is 2 incorporated by reference to exhibit (d)(9) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (d)(10) Investment Sub-Advisory Agreement between SIMC and Oechsle International Advisors, LLC with respect to the SEI VP International Equity Fund is incorporated by reference to exhibit (d)(10) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (d)(11) Investment Sub-Advisory Agreement between SIMC and Provident Investment Counsel, Inc. With respect to the SEI VP Large Cap Growth Fund is incorporated by reference to exhibit (d)(11) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (d)(12) Investment Sub-Advisory Agreement between SIMC and Robert W. Baird & Co., Incorporated with respect to the SEI VP Core Fixed Income Fund is incorporated by reference to exhibit (d)(12) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (d)(13) Investment Sub-Advisory Agreement between SIMC and Sawgrass Asset Management, L.L.C. with respect to the SEI VP Small Cap Growth Fund is incorporated by reference to exhibit (d)(13) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (d)(14) Investment Sub-Advisory Agreement between SIMC and Schroder Investment Management North America Inc. with respect to the SEI VP Emerging Market Equity Fund is incorporated by reference to exhibit (d)(14) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (d)(15) Investment Sub-Advisory Agreement between SIMC and Strategic Fixed Income, LLC with respect to the SEI VP International Fixed Income Fund is incorporated by reference to exhibit (d)(15) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (d)(16) Investment Sub-Advisory Agreement between SIMC and Wall Street Associates with respect to the SEI VP Small Cap Growth Fund is incorporated by reference to exhibit (d)(16) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (d)(17) Investment Sub-Advisory Agreement between SIMC and Wellington Management Company, LLP with respect to the SEI VP Prime Obligation Fund is incorporated by reference to exhibit (d)(17) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (d)(18) Investment Sub-Advisory Agreement between SIMC and Western Asset Management Company with respect to the SEI VP Core Fixed Income Fund is incorporated by reference to exhibit (d)(18) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (d)(19) Investment Sub-Advisory Agreement between SIMC and Salomon Brothers Asset Management Inc with respect to the SEI VP Emerging Markets Debt Fund is incorporated by reference to exhibit (d)(19) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (d)(20) Form of Investment Sub-Advisory Agreement between SIMC and Chartwell Investment Partners with respect to the SEI VP Small Cap Value Fund is incorporated by reference to exhibit (d)(20) of Post-Effective Amendment No. 3 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 30, 2001. 3 (d)(21) The Investment Sub-Advisory Agreement between SIMC and Duncan-Hurst Capital Management, Inc. with respect to the SEI VP Large Cap Growth Fund is incorporated by reference to exhibit (d)(21) of Post-Effective Amendment No. 3 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 30, 2001. (d)(22) The Investment Sub-Advisory Agreement between SIMC and Iridian Asset Management, LLC with respect to the SEI VP Large Cap Value Fund is incorporated by reference to exhibit (d)(22) of Post-Effective Amendment No. 3 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 30, 2001. (d)(23) Form of Investment Sub-Advisory Agreement between SIMC and McKinley Capital Management, Inc. with respect to the SEI VP Small Cap Growth Fund is incorporated by reference to exhibit (d)(25) of Post-Effective Amendment No. 3 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 30, 2001. (d)(24) The Investment Sub-Advisory Agreement between SIMC and Peregrine Capital Management Inc. with respect to the SEI VP Large Cap Growth Fund is incorporated by reference to exhibit (d)(26) of Post-Effective Amendment No. 3 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 30, 2001. (d)(25) Form of Investment Sub-Advisory Agreement between SIMC and Sanford C. Bernstein & Co., LLC with respect to the SEI VP Large Cap Value Fund is incorporated by reference to exhibit (d)(27) of Post-Effective Amendment No. 3 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 30, 2001. (d)(26) The Investment Sub-Advisory Agreement between SIMC and Sterling Capital Management with respect to the SEI VP Small Cap Value Fund is incorporated by reference to exhibit (d)(28) of Post-Effective Amendment No. 3 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 30, 2001. (d)(27) Form of Investment Sub-Advisory Agreement between SIMC and The Boston Company Asset Management LLC with respect to the SEI VP Emerging Markets Equity Fund is incorporated by reference to exhibit (d)(29) of Post-Effective Amendment No. 3 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 30, 2001. (d)(28) The Investment Sub-Advisory Agreement between SIMC and Montag & Caldwell Inc. with respect to the SEI VP Large Cap Growth Fund is filed herewith. (d)(29) Form of Investment Sub-Advisory Agreement between SIMC and Wellington Management Company, LLP with respect to the SEI VP Small Cap Growth Fund is filed herewith. (d)(30) Investment Sub-Advisory Agreement between SIMC and Barclays Global Fund Advisors with respect to the SEI VP S&P 500 Index Fund is filed herewith. (d)(31) Investment Sub-Advisory Agreement between SIMC and Transamerica Investment Management, LLC with respect to the SEI VP Large Cap Growth Fund is filed herewith. (d)(32) Investment Sub-Advisory Agreement between SIMC and David J. Greene & Co., LLC with respect to the SEI VP Small Cap Value Fund is filed herewith. (d)(33) Investment Sub-Advisory Agreement between SIMC and Deutsche Asset Management Inc. with respect to the SEI VP Large Cap Value Fund is filed herewith. (d)(34) Form of Investment Sub-Advisory Agreement between SIMC and Shenkman Capital Management, Inc. with respect to the SEI VP High Yield Bond Fund is filed herewith. 4 (e) Distribution Agreement between the Registrant and SEI Investments Distribution Co. is incorporated by reference to exhibit (e) of Pre-Effective Amendment No. 1 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on October 12, 1999. (f) Not Applicable. (g)(1) Form of Custodian Agreement with between the Registrant and First Union National Bank is incorporated by reference to exhibit (g)(1) of Pre-Effective Amendment No. 1 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on October 12, 1999. (g)(2) Custodian Agreement with between the Registrant and State Street Bank and Trust Company is incorporated by reference to exhibit (g)(2) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (h)(1) Administration Agreement between the Registrant and SEI Investments Fund Management is incorporated by reference to exhibit (h)(1) of Pre-Effective Amendment No. 1 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on October 12, 1999. (i) Opinion and Consent of Counsel, Morgan, Lewis & Bockius LLP, is filed herewith. (j) Opinion and Consent of Independent Public Accountants, is filed herewith. (k) Not Applicable. (n) Not Applicable. (p)(1) The Code of Ethics for SEI Investments Company, as amended December 2000, is incorporated by reference to exhibit (p)(1) of Post-Effective Amendment No. 3 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 30, 2001. (p)(2) The Code of Ethics for SEI Insurance Products Trust is incorporated by reference to exhibit (p)(2) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (p)(3) The Code of Ethics for Alliance Capital Management L.P. is incorporated by reference to exhibit (p)(3) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (p)(4) The Code of Ethics for Capital Guardian Trust Company is incorporated by reference to exhibit (p)(4) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (p)(5) The Code of Ethics for Credit Suisse Asset Management, LLC is incorporated by reference to exhibit (p)(5) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (p)(6) The Code of Ethics for LSV Asset Management, L.P. is incorporated by reference to exhibit (p)(6) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (p)(7) The Code of Ethics for Mellon Bond Associates, LLP is incorporated by reference to exhibit (p)(7) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (p)(8) The Code of Ethics for Nicholas-Applegate Capital Management is incorporated by reference to exhibit (p)(8) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. 5 (p)(9) The Code of Ethics for Oechsle International Advisors, LLC is incorporated by reference to exhibit (p)(9) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (p)(10) The Code of Ethics for Provident Investment Counsel, Inc. is incorporated by reference to exhibit (p)(15) of Post-Effective Amendment No. 35 to SEI Institutional Managed Trust's Registration Statement on Form N-1A (File No. 33-9504) filed with the SEC on July 3, 2000. (p)(11) The Code of Ethics for Robert W. Baird & Co., Incorporated is incorporated by reference to exhibit (p)(11) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (p)(12) The Code of Ethics for RS Investment Management, L.P. is incorporated by reference to exhibit (p)(12) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (p)(13) The Code of Ethics for Salomon Brothers Asset Management Inc is incorporated by reference to exhibit (p)(13) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (p)(14) The Code of Ethics for Sanford C. Bernstein & Co., Inc. is incorporated by reference to exhibit (p)(14) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (p)(15) The Code of Ethics for Sawgrass Asset Management, LLC is incorporated by reference to exhibit (p)(15) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (p)(16) The Code of Ethics for Schroder Investment Management North America Inc. is incorporated by reference to exhibit (p)(16) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (p)(17) The Code of Ethics for Strategic Fixed Income, L.L.C. is incorporated by reference to exhibit (p)(17) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (p)(18) The Code of Ethics for Wall Street Associates is incorporated by reference to exhibit (p)(18) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (p)(19) The Code of Ethics for Wellington Management Company, LLP is incorporated by reference to exhibit (p)(19) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (p)(20) The Code of Ethics for Western Asset Management Company is incorporated by reference to exhibit (p)(20) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (p)(21) The Code of Ethics for Chartwell Investment Partners is incorporated by reference to exhibit (p)(11) of Post-Effective Amendment No. 6 to SEI Institutional Investments Trust's Registration Statement on Form N-1A (File No. 33-58041) filed with the SEC on September 28, 2000. (p)(22) The Code of Ethics for Duncan-Hurst Capital Management, Inc. is incorporated by reference to exhibit (p)(29) of Post-Effective Amendment No. 36 of SEI Institutional Managed Trust's Registration Statement on Form N-1A (File No. 33-9504) filed with the SEC on January 29, 2001. 6 (p)(23) The Code of Ethics for Iridian Asset Management, LLC is incorporated by reference to exhibit (p)(30) of Post-Effective Amendment No. 36 to SEI Institutional Managed Trust's Registration Statement on Form N-1A (File No. 33-9504) filed with the SEC on January 29, 2001. (p)(24) The Code of Ethics for McKinley Capital Management, Inc. is incorporated by reference to exhibit (p)(19) of Post-Effective Amendment No. 6 to SEI Institutional Investments Trust's Registration Statement on Form N-1A (File No. 33-58041) filed with the SEC on September 28, 2000. (p)(25) The Code of Ethics for Peregrine Capital Management Inc. is incorporated by reference to exhibit (p)(31) of Post-Effective Amendment No. 36 of SEI Institutional Managed Trust's Registration Statement on Form N-1A (File No. 33-9504) filed with the SEC on January 29, 2001. (p)(26) The Code of Ethics for Sterling Capital Management is incorporated by reference to exhibit (p)(32) of Post-Effective Amendment No. 36 of SEI Institutional Managed Trust's Registration Statement on Form N-1A (File No. 33-9504) filed with the SEC on January 29, 2001. (p)(27) The Code of Ethics for The Boston Company Asset Management, LLC is incorporated by reference to exhibit (p)(8) of Post-Effective Amendment No. 6 of SEI Institutional Investments Trust's Registration Statement on Form N-1A (File No. 33-58041) filed with the SEC on September 28, 2000. (p)(28) The Code of Ethics for Barclays Global Fund Advisors is herein incorporated by reference to Exhibit (p)(42) of Post-Effective Amendment No. 9 to SEI Institutional Investments Trust's Registration Statement on (File Nos. 33-58041 and 811-7257) on Form N-1A filed with the SEC on March 29, 2002. (p)(29) The Code of Ethics for Montag & Caldwell Inc. is herein incorporated by reference to exhibit (p)(43) of Post-Effective Amendment No. 9 to SEI Institutional Investments Trust's Registration Statement (File Nos. 33-58041 and 811-7257) on Form N-1A filed with the SEC on March 29, 2002. (p)(30) The Code of Ethics for Transamerica Investment Management, LLC is herein incorporated by reference to exhibit (p)(41) of Post-Effective Amendment No. 7 to SEI Institutional Investments Trust's Registration Statement (File Nos. 33-58041 and 811-7257) on Form N-1A filed with the SEC on September 28, 2001. (p)(31) The Code of Ethics for Artisan Partners Limited Partnership is herein incorporated by reference to exhibit (p)(4) of Post-Effective Amendment No. 33 to SEI Institutional Managed Trust's Registration Statement (File Nos. 33-9504 and 811-4878) on Form N-1A filed with the SEC on July 3, 2000. (p)(32) The Code of Ethics for BlackRock Financial Management, Inc. is herein incorporated by reference to exhibit (p)(6) of Post-Effective Amendment No. 37 to SEI Institutional Managed Trust's Registration Statement (File Nos. 33-9504 and 811-4878) on Form N-1A filed with the SEC on January 28, 2002. (p)(33) The Code of Ethics for BlackRock International, Ltd. is herein incorporated by reference to exhibit (p)(4) of Post-Effective Amendment No. 34 to SEI Institutional International Trust's Registration Statement (File Nos. 33-22821 and 811-5601) on Form N-1A filed with the SEC on January 28, 2002. (p)(34) The Code of Ethics for David J. Greene & Company, LLC is herein incorporated by reference to exhibit (p)(24) of Post-Effective Amendment No. 37 to SEI Institutional Managed Trust's Registration Statement (File Nos. 33-9504 and 811-4878) on Form N-1A filed with the SEC on January 28, 2002. (p)(35) The Code of Ethics for Deutsche Asset Management Inc. is herein incorporated by reference to exhibit (p)(36) of Post-Effective Amendment No. 7 to SEI Institutional Investments Trust's Registration Statement (File Nos. 33-58041 and 811-7257) on Form N-1A filed with the SEC on September 28, 2001. (p)(36) The Code of Ethics for Mazama Capital Management, Inc. is herein incorporated by reference to exhibit (p)(11) of Post-Effective Amendment No. 33 to SEI Institutional Managed Trust's 7 Registration Statement (File Nos. 33-9504 and 811-4878) on Form N-1A filed with the SEC on July 3, 2000. (p)(37) The Code of Ethics for Morgan Stanley Investment Management Inc. is herein incorporated by reference to exhibit (p)(20) of Post-Effective Amendment No. 7 to SEI Institutional Investments Trust's Registration Statement (File Nos. 33-58041 and 811-7257) on Form N-1A filed with the SEC on September 28, 2001. (p)(38) The Code of Ethics for Nomura Corporate Research and Asset Management Inc. is herein incorporated by reference to exhibit (p)(14) of Post-Effective Amendment No. 33 to SEI Institutional Managed Trust's Registration Statement (File Nos. 33-9504 and 811-4878) on Form N-1A filed with the SEC on July 3, 2000. (p)(39) The Code of Ethics for Security Capital Research and Management Incorporated is herein incorporated by reference to exhibit (p)(19) of Post-Effective Amendment No. 33 to SEI Institutional Managed Trust's Registration Statement (File Nos. 33-9504 and 811-4878) on Form N-1A filed with the SEC on July 3, 2000. (p)(40) The Code of Ethics for SG Pacific Asset Management, Inc. and SGY Asset Management (Singapore) Ltd. is herein incorporated by reference to exhibit (p)(12) of Post-Effective Amendment No. 30 to SEI Institutional International Trust's Registration Statement (File Nos. 33-22821 and 811-5601) on Form N-1A filed with the SEC on June 30, 2000. (p)(41) The Code of Ethics for Shenkman Capital Management, Inc. is herein incorporated by reference to exhibit (p)(38) of Post-Effective Amendment No. 7 to SEI Institutional Investments Trust's Registration Statement (File Nos. 33-58041 and 811-7257) on Form N-1A filed with the SEC on September 28, 2001. (q) Powers of Attorney for Robert A. Nesher, William M. Doran, James R. Foggo, F. Wendell Gooch, George J. Sullivan, Jr., James M. Storey, Rosemarie B. Greco and Edward D. Loughlin are incorporated by reference to exhibit (p)(1) of Post-Effective Amendment No. 3 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 30, 2001. ITEM 24. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH REGISTRANT: See the Prospectus and the Statement of Additional Information regarding the Registrant's control relationships. SEI Investments Management Corporation (formerly, SEI Financial Management Corporation) is the owner of all beneficial interest in the Administrator and is a subsidiary of SEI Investments Company, which also controls the distributor of the Registrant, SEI Investments Distribution Co. (formerly, SEI Financial Services Company), as well as to other corporations engaged in providing various financial and record keeping services, primarily to bank trust departments, pension plan sponsors, and investment managers. ITEM 25. INDEMNIFICATION: Article VII of the Agreement and Declaration of Trust empowers the Trustees of the Trust, to the full extent permitted by law, to purchase with Trust assets insurance for indemnification from liability and to pay for all expenses reasonably incurred or paid or expected to be paid by a Trustee or officer in connection with any claim, action, suit or proceeding in which he or she becomes involved by virtue of his or her capacity or former capacity with the Trust. Article VI of the By-Laws of the Trust provides that the Trust shall indemnify any person who was or is a party or is threatened to be made a party to any proceeding by reason of the fact that such person is and other amounts or was an agent of the Trust, against expenses, judgments, fines, settlement and other amounts actually and reasonable incurred in connection with such proceeding if that person acted in good faith and reasonably believed his or her conduct to be in the best interests of the Trust. Indemnification will 8 not be provided in certain circumstances, however, including instances of willful misfeasance, bad faith, gross negligence, and reckless disregard of the duties involved in the conduct of the particular office involved. Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to the Trustees, officers and controlling persons of the Registrant pursuant to the foregoing provisions or otherwise, the Registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act of 1933 and is, therefore, unenforceable in the event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by a Trustee, officer or controlling person of the Registrant in the successful defense of any action, suit or proceeding) is asserted by such Trustee, officer or controlling person in connection with the securities being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act of 1933 and will be governed by the final adjudication of such issue. ITEM 26. BUSINESS AND OTHER CONNECTIONS OF INVESTMENT ADVISER: Other business, profession, vocation, or employment of a substantial nature in which each director or principal officer of the adviser and each sub-adviser is or has been, at any time during the last two fiscal years, engaged for his own account or in the capacity of director, officer, employee, partner or trustee are as follows: ALLIANCE CAPITAL MANAGEMENT L.P. Alliance Capital Management L.P. ("Alliance") is a sub-adviser for the Registrant's SEI VP Large Cap Growth Fund. The principal business address of Alliance is 1345 Avenue of the Americas, New York, New York 10105. Alliance is an investment adviser registered under the Advisers Act.
NAME AND POSITION WITH ALLIANCE OTHER COMPANY POSITION WITH OTHER COMPANY ------------------------------- ------------------------------ ------------------------------ Bruce W. Calvert AXA Financial, Inc. Director Chairman of the Board, Chief Executive Officer The Equitable Life Assurance Director Society of the United States Donald H. Brydon AXA Investment Managers S.A. Chairman of the Board, Chief Director Executive Officer John D. Carifa -- -- Director, President, Chief Operating Officer Henri de Castries AXA Investment Managers S.A. Chairman, Management Board Director AXA Financial, Inc. Chairman of the Board The Equitable Life Assurance Director Society of the United States Christopher M. Condron AXA Financial, Inc. Director, President, Chief Director Executive Officer
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NAME AND POSITION WITH ALLIANCE OTHER COMPANY POSITION WITH OTHER COMPANY ------------------------------- ------------------------------ ------------------------------ The Equitable Life Assurance Chairman of the Board, Chief Society of the United States Executive Officer AXA Investment Managers S.A. Member, Management Board Denis Duverne AXA Investment Managers S.A. Group Executive Vice Director President- Finance, Control & Strategy Richard S. Dziadzio AXA Investment Managers S.A. Senior Vice President- Director Investment Management Activities Alfred Harrison -- -- Vice Chairman Roger Hertog -- -- Vice Chairman Benjamin D. Holloway Continental Companies Financial Consultant Director W. Edwin Jarmain Jarmain Group Inc. President Director Peter D. Noris AXA Financial, Inc. Executive Vice President, Director Chief Investment Officer The Equitable Life Assurance Executive Vice President, Society of the United States Chief Investment Officer Lewis A. Sanders -- -- Vice Chairman, Chief Investment Officer Frank Savage Savage Holdings LLC Chief Executive Officer Director Peter J. Tobin Tobin College of Business Dean Director Administration Stanley B. Tulin AXA Financial, Inc. Vice Chairman,Chief Financial Director, Chief Financial Officer Officer The Equitable Life Assurance Vice Chairman, Chief Financial Society of the United States Officer Dave H. Williams White Williams Private Equity Chairman, Managing Board Chairman Emeritus Partners GmbH Kathleen A. Corbet -- -- Executive Vice President, Chief Executive Officer, Alliance Fixed Income Investors Gerald M. Lieberman -- -- Executive Vice President, Finance & Operations
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NAME AND POSITION WITH ALLIANCE OTHER COMPANY POSITION WITH OTHER COMPANY ------------------------------- ------------------------------ ------------------------------ Robert H. Joseph, Jr. -- -- Senior Vice President, Chief Financial Officer David R. Brewer, Jr. -- -- Senior Vice President, General Counsel
ARTISAN PARTNERS LIMITED PARTNERSHIP Artisan Partners Limited Partnership ("Artisan") is a sub-adviser for the SEI VP Small Cap Value Fund. The principal business address of Artisan is 1000 N. Water Street, Suite 1770, Milwaukee, Wisconsin 53202. Artisan is an investment adviser registered under the Advisers Act.
NAME AND POSITION WITH INVESTMENT ADVISER OTHER COMPANY POSITION WITH OTHER COMPANY ----------------------------- ----------------------------- ----------------------------- Andrew A. Ziegler Artisan Distributors LLC Officer Chief Executive Officer Lawrence A. Totsky Artisan Distributors LLC Officer Chief Financial Officer Carlene M. Ziegler Heidrick + Struggles Independent Director Portfolio Manager
BLACKROCK FINANCIAL MANAGEMENT, INC. BlackRock Financial Management, Inc. ("BlackRock") is a sub-adviser for the Registrant's SEI VP Core Fixed Income Fund. The principal business address of BlackRock is 40 East 52nd Street, New York, New York 10022. BlackRock is an investment adviser registered under the Advisers Act.
NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ----------------------------- ----------------------------- ----------------------------- Laurence D. Fink BlackRock, Inc. Chairman & CEO Chairman & CEO BlackRock Financial Chairman & CEO Management, Inc. BlackRock Advisors, Inc. CEO BlackRock Institutional CEO Management Corporation BlackRock Capital CEO Management, Inc. BlackRock (Japan), Inc. Chairman & CEO BlackRock Investments, Inc. Chairman & CEO BlackRock Funds President, Treasurer & Trustee BlackRock Closed-End Funds Chairman & CEO
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NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ----------------------------- ----------------------------- ----------------------------- Black Rock Asia Limited Chairman, CEO Anthracite Capital, Inc. Chairman Ralph L. Sclosstein BlackRock, Inc. President & Director President and Director BlackRock Financial President & Director Management, Inc. BlackRock Advisors, Inc. President & Director BlackRock Institutional President & Director Management Corporation BlackRock Capital President & Director Management, Inc. BlackRock (Japan), Inc. President & Director BlackRock Investments, Inc. Director BlackRock Closed-End Funds President & Director BlackRock Asia Limited President & Director BlackRock Provident Chairman & President Institutional Funds Robert S. Kapito BlackRock, Inc. Vice Chairman Vice Chairman, Director BlackRock Financial Vice Chairman & Director Management, Inc. BlackRock Advisors, Inc. Vice Chairman & Director BlackRock Institutional Vice Chairman & Director Management Corporation BlackRock Capital Vice Chairman & Director Management, Inc. BlackRock (Japan), Inc. Vice Chairman & Director BlackRock Investments, Inc. Director BlackRock's Closed-End Funds Vice President BlackRock Asia Limited Vice Chairman, Director Robert P. Connolly BlackRock, Inc. Managing Director, General Managing Director, General Counsel & Secretary Counsel & Secretary BlackRock Financial Managing Director, General Management, Inc. Counsel & Secretary BlackRock Advisors, Inc. Managing Director, General Counsel & Secretary
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NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ----------------------------- ----------------------------- ----------------------------- BlackRock Institutional Managing Director, General Management Corporation Counsel & Secretary BlackRock Capital Managing Director, General Management, Inc. Counsel & Secretary BlackRock (Japan), Inc. Managing Director, General Counsel & Secretary BlackRock Investments, Inc. General Counsel & Secretary Paul L. Audet BlackRock, Inc. Chief Financial Officer & Chief Financial Officer, Managing Director Managing Director BlackRock Financial Chief Financial Officer & Management, Inc. Managing Director BlackRock Advisors, Inc. Managing Director BlackRock Institutional Director Management Corporation BlackRock Capital Director Management, Inc. BlackRock (Japan), Inc. Chief Financial Officer & Managing Director Keith T. Anderson BlackRock, Inc. Managing Director Managing Director BlackRock Financial Managing Director Management, Inc. BlackRock Advisors, Inc. Managing Director BlackRock Institutional Managing Director Management Corporation BlackRock Capital Managing Director Management, Inc. BlackRock (Japan), Inc. Managing Director Gordon Anderson BlackRock, Inc. Managing Director Chief Operating Officer & Managing Director Albert Morillo BlackRock, Inc. Managing Director Managing Director BlackRock Financial Managing Director Management, Inc. BlackRock (Japan), Inc. Managing Director
13 BLACKROCK INTERNATIONAL, LTD. BlackRock International, Ltd. ("BlackRock International") is a sub-adviser for the Registrant's SEI VP International Equity Fund. The principal address of BlackRock is 40 Torphichen Street, Edinburgh, EH3 8JB Scotland, United Kingdom. BlackRock International is an investment adviser registered under the Advisers Act.
NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ----------------------------- ----------------------------- ----------------------------- Laurence D. Fink BlackRock, Inc. Chairman & CEO Chairman & CEO BlackRock Financial Chairman & CEO Management, Inc. BlackRock Advisors, Inc. CEO BlackRock Institutional CEO Management Corporation BlackRock Capital CEO Management, Inc. BlackRock (Japan), Inc. Chairman & CEO BlackRock Investments, Inc. Chairman & CEO BlackRock Funds President, Treasurer & Trustee BlackRock Closed-End Funds Chairman & CEO Black Rock Asia Limited Chairman, CEO Anthracite Capital, Inc. Chairman Ralph L. Sclosstein BlackRock, Inc. President & Director President and Director BlackRock Financial President & Director Management, Inc. BlackRock Advisors, Inc. President & Director BlackRock Institutional President & Director Management Corporation BlackRock Capital President & Director Management, Inc. BlackRock (Japan), Inc. President & Director BlackRock Investments, Inc. Director BlackRock Closed-End Funds President & Director BlackRock Asia Limited President & Director BlackRock Provident Chairman & President Institutional Funds Robert S. Kapito BlackRock, Inc. Vice Chairman Vice Chairman, Director
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NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ----------------------------- ----------------------------- ----------------------------- BlackRock Financial Vice Chairman & Director Management, Inc. BlackRock Advisors, Inc. Vice Chairman & Director BlackRock Institutional Vice Chairman & Director Management Corporation BlackRock Capital Vice Chairman & Director Management, Inc. BlackRock (Japan), Inc. Vice Chairman & Director BlackRock Investments, Inc. Director BlackRock's Closed-End Funds Vice President BlackRock Asia Limited Vice Chairman, Director Robert P. Connolly BlackRock, Inc. Managing Director, General Managing Director, General Counsel & Secretary Counsel & Secretary BlackRock Financial Managing Director, General Management, Inc. Counsel & Secretary BlackRock Advisors, Inc. Managing Director, General Counsel & Secretary BlackRock Institutional Managing Director, General Management Corporation Counsel & Secretary BlackRock Capital Managing Director, General Management, Inc. Counsel & Secretary BlackRock (Japan), Inc. Managing Director, General Counsel & Secretary BlackRock Investments, Inc. General Counsel & Secretary Paul L. Audet BlackRock, Inc. Chief Financial Officer & Chief Financial Officer, Managing Director Managing Director BlackRock Financial Chief Financial Officer & Management, Inc. Managing Director BlackRock Advisors, Inc. Managing Director BlackRock Institutional Director Management Corporation BlackRock Capital Director Management, Inc. BlackRock (Japan), Inc. Chief Financial Officer & Managing Director Keith T. Anderson BlackRock, Inc. Managing Director Managing Director
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NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ----------------------------- ----------------------------- ----------------------------- BlackRock Financial Managing Director Management, Inc. BlackRock Advisors, Inc. Managing Director BlackRock Institutional Managing Director Management Corporation BlackRock Capital Managing Director Management, Inc. BlackRock (Japan), Inc. Managing Director Gordon Anderson BlackRock, Inc. Managing Director Chief Operating Officer & Managing Director Albert Morillo BlackRock, Inc. Managing Director Managing Director BlackRock Financial Managing Director Management, Inc. BlackRock (Japan), Inc. Managing Director
THE BOSTON COMPANY ASSET MANAGEMENT, LLC The Boston Company Asset Management, LLC ("The Boston Company") is a sub-adviser for the Registrant's SEI VP Emerging Markets Equity Fund. The principal business address of The Boston Company is 1 Boston Place, Boston, MA 02108-4402. The Boston Company is a registered investment adviser under the Advisers Act.
NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ----------------------------- ----------------------------- ----------------------------- Francis D. Antin Mellon Growth Advisors LLC President President, Chief Executive Officer, Director Certus Asset Advisors Director and Chairman Corporation Boston Safe Deposit and Trust Senior Vice President Company TBCAM Holdings, LLC Director Corey Griffin Boston Safe Deposit and Trust Senior Vice President COO, Director Company TBCAM Holdings, LCC Director Stephen Canter Dreyfus Corporation President, CEO, COO, Director Director, Chairman of the Board Dreyfus Investment Chairman of the Board, Advisors, Inc. Director, President
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NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ----------------------------- ----------------------------- ----------------------------- Dreyfus Trust Company Director, Chairman, President, CEO Newton Management Limited Director Franklin Portfolio Director Associates, LLC Franklin Portfolio Director Holdings, Inc. TBCAM Holdings, LCC Director Mellon Capital Management Director Corp. Mellon Equity Associates, LLP Executive Committee Mellon Bond Associates, LLP Executive Committee Founders Asset Management, Member of Board of Managers LLC John Nagoniak Franklin Portfolio Holdings Chairman of the Board, Director LLC Director Mellon Equity Associates, LLP Executive Committee Mellon Bond Associates, LLP Executive Committee Certus Asset Advisors Director Corporation TBCAM Holdings LLC Director Mellon Capital Management Director Corp. Newton Investment Management Director Limited Standish Mellon Asset Member of Board of Managers Management LLC Standish Mellon Asset Member of Board of Managers Management Holdings LLC Ronald O'Hanley Mellon Financial Corporation Vice Chairman Director Mellon Institutional Asset President Management Boston Safe Deposit & Trust Director Company Mellon Growth Advisors Director Newton Asset Management Director Mellon Capital Management Director
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NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ----------------------------- ----------------------------- ----------------------------- Standish Mellon Asset Director Management LLC Certus Advisors Director Prime Advisors Director Franklin Portfolio Associates Director Mellon Bond Associates, LLP Director Mellon Equity Associates, LLP Director TBCAM Holdings LLC Director Sandor Cseh The Dreyfus Corporation Portfolio Manager Senior Vice President Boston Safe Deposit & Trust Senior Vice President Company David K. Henry Boston Safe Deposit and Trust Senior Vice President Senior Vice President and Company Portfolio Manager The Dreyfus Corporation Portfolio Manager
CAPITAL GUARDIAN TRUST COMPANY Capital Guardian Trust Company ("Capital Guardian") is a sub-adviser for the Registrant's SEI VP International Equity Fund. The principal business address of Capital Guardian is 333 South Hope Street, 95th Floor, Los Angeles, CA 90071. Capital Guardian is a California trust company and is exempt from registration under the Advisers Act.
NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY POSITION WITH OTHER COMPANY ----------------------- --------------------------------- -------------------------------- Andrew F. Barth Capital Research and Management Director Director Company Capital International Research, Director, President and Research Inc. Director Capital Guardian Research Company Director and President Michael D. Beckman Capital Bank and Trust Company Senior Vice President and Chief Director, Senior Vice Financial Officer President and Treasurer The Capital Group Companies Director Capital International Asset Chief Financial Officer and Management (Canada), Inc. Secretary Capital Group International, Inc. Senior Vice President Capital Guardian Trust Company of Director Nevada
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NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY POSITION WITH OTHER COMPANY ----------------------- --------------------------------- -------------------------------- Capital International Research, Treasurer Inc. Capital Guardian Research Company Treasurer Capital Guardian (Canada), Inc. Treasurer Capital International Asset Director and President Management, Inc. Capital International Financial Director, President and Services, Inc. Treasurer Michael A. Burik Capital International Financial Vice President and Secretary Senior Vice President Services, Inc. and Senior Counsel Capital International, Inc. Senior Vice President and Senior Counsel Elizabeth A. Burns -- -- Senior Vice President Larry P. Clemmensen Capital Strategy, Inc. Treasurer Director Capital Research and Management Director and Senior Vice Company President Capital Management Services, Inc. Director and President The Capital Group Companies, Inc. Director and President American Funds Service Company Director and Chairman American Funds Distributors, Inc. Director Kevin G. Clifford American Funds Distributors, Inc. Director and President Director The Capital Group Companies Director Roberta A. Conroy Capital Group International, Inc. Secretary Director, Senior Vice President, and Senior Counsel Capital International, Inc. Senior Vice President, Senior Counsel and Secretary John B. Emerson Capital Guardian Trust Company, a Director and Executive Vice Senior Vice President Nevada Corporation President Michael R. Ericksen Capital International Limited. Director and Senior Vice Director and Senior President Vice President David I. Fisher Capital International, Inc. Director, Vice Chairman Capital International Limited Director, Vice Chairman
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NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY POSITION WITH OTHER COMPANY ----------------------- --------------------------------- -------------------------------- Capital International K.K. Director, Vice Chairman Capital Group Director, Chairman International, Inc. Capital Guardian Trust Company Director, Chairman Capital International Limited Director, President (Bermuda) The Capital Group Companies, Inc. Director Capital International Director Research, Inc. Capital Group Research, Inc. Director Capital Research and Management Director Company Clive N. Gershon -- -- Senior Vice President Richard N. Havas Capital International, Inc. Senior Vice President Senior Vice President Capital International Limited Senior Vice President Capital International Senior Vice President Research, Inc. Capital Guardian (Canada), Inc. Director and Senior Vice President Capital International Asset Director Management (Canada), Inc. Frederick M. Hughes, -- -- Jr. Senior Vice President Mary M. Humphrey -- -- Senior Vice President William H. Hurt Capital Guardian Trust Company, a Director, Chairman Director, Senior Vice Nevada Corporation President Capital Strategy Research, Inc. Director, Chairman Peter C. Kelly Capital International, Inc. Director, Senior Vice President Senior Vice President, Senior Counsel Charles A. King -- -- Senior Vice President Robert G. Kirby -- -- Chairman Emeritus Nancy J. Kyle Capital Guardian (Canada), Inc. Director, President Director, Senior Vice President
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NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY POSITION WITH OTHER COMPANY ----------------------- --------------------------------- -------------------------------- Karin L. Larson The Capital Group Director Director Companies, Inc. Capital Group Research, Inc. Director, Chairperson, President Capital Guardian Research Company Director, Chairperson Capital International Director, Chairperson Research, Inc. Lianne K. Mair -- -- Senior Vice President James R. Mulally Capital International Limited Senior Vice President Director, Senior Vice President Shelby Notkin Capital Guardian Trust Company, a Director Senior Vice President Nevada Corporation Michael E. Nyeholt -- -- Senior Vice President Mary M. O'Hern Capital International Limited Senior Vice President Senior Vice President Capital International, Inc. Vice President Jeffrey C. Paster -- -- Senior Vice President Robert V. Pennington -- -- Senior Vice President Jason M. Pilalas Capital International Senior Vice President Director Research, Inc. Paula B. Pretlow -- -- Senior Vice President George L. Romine, Jr. -- -- Senior Vice President Robert Ronus Capital Guardian (Canada), Inc. Director, Chairman Director, President The Capital Group Director Companies, Inc. Capital Group Director International, Inc. Capital International, Inc. Senior Vice President Capital International Limited Senior Vice President Capital International S.A. Senior Vice President James F. Rothenberg American Funds Director Director Distributors, Inc. American Funds Service Company Director The Capital Group Director Companies, Inc.
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NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY POSITION WITH OTHER COMPANY ----------------------- --------------------------------- -------------------------------- Capital Group Research, Inc. Director Capital Management Director Services, Inc. Capital Research and Director, President Management, Inc. Theodore R. Samuels Capital Guardian Trust Company, a Director Director, Senior Vice Nevada Corporation President Lionel A. Sauvage Capital International, Inc. Senior Vice President Director, Senior Vice President John H. Seiter The Capital Group Companies Director Director, Executive Vice President Karen L. Sexton -- -- Senior Vice President Eugene P. Stein -- -- Director, Executive Vice President Andrew P. Stenovec -- -- Senior Vice President Phillip A. Swan -- -- Senior Vice President Shaw B. Wagener The Capital Group Director Director Companies, Inc. Capital International Management Director Company S. A. Capital International, Inc. Director, President Capital Group Director, Senior Vice President International, Inc. Eugene M. Waldron -- -- Senior Vice President Joanne Weckbacher -- -- Senior Vice President
22 CHARTWELL INVESTMENT PARTNERS Chartwell Investment Partners ("Chartwell") is a sub-adviser for the Registrant's SEI VP Small Cap Value Fund. The principal business address of Chartwell is 1235 Westlakes Drive, Suite 330, Berwyn, PA 19312. Chartwell is a registered investment adviser under the Advisers Act.
NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ----------------------------- ----------------------------- ----------------------------- Chartwell G.P., Inc. -- -- General Partner Michael J. McCloskey -- -- Partner Alexander K. Melich -- -- Partner/Portfolio Manager Bernard P. Schaffer -- -- Partner/Portfolio Manager Edward N. Antoian -- -- Partner/Portfolio Manager Timothy J. Riddle -- -- Partner/Compliance Officer Terry F. Bovarnick -- -- Partner/Portfolio Manager David C. Dalrymple -- -- Partner/Portfolio Manager Winthrop S. Jessup -- -- Partner Harold A. Ofstie -- -- Partner/Portfolio Manager Mark A. Sullivan -- -- Vice President, Client Services Michael D. Jones -- -- Partner/Portfolio Manager Leslie M. Varrelman -- -- Director/Fixed Income John P. McNiff CAM Investment Advisors Vice President Indirect Limited Partner Longwood Investment Advisors, Managing Director Inc. Michael T. Kennedy Radnor Holdings Corp. President Indirect Limited Partner Trinity Capital Partners President and Treasurer
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NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ----------------------------- ----------------------------- ----------------------------- Alden Merle Stewart -- -- Executive Vice President of General Partner Peter J. Tobin -- -- Director of General Partner Stanley B. Tulin The Equitable Life Insurance Vice Chairman & CFO Director of General Partner Society of the United States Dave H. Williams The Equitable Companies Inc. Director Chairman of the Board Reda White Williams -- -- Director of General Partner Robert Bruce Zoellick Center for Strategic and President & CEO Director of General Partner International Studies Harry Lewis Carr, Jr. -- -- Chairman of Shields/Alliance Division of General Partner Michael Francis Deltino -- -- Chairman of Regent Division of General Partner
CREDIT SUISSE ASSET MANAGEMENT LLC Credit Suisse Asset Management LLC ("Credit Suisse") is the sub-adviser for the Registrant's SEI VP High Yield Bond Fund. The principal business address of Credit Suisse is 466 Lexington Ave., New York, New York 10017. Credit Suisse is an investment adviser registered under the Advisers Act.
NAME AND POSITION CONNECTION WITH WITH INVESTMENT ADVISER OTHER COMPANY OTHER COMPANY ----------------------------- ----------------------------- ----------------------------- CSAM Americas Holding Corp. -- -- General Partner Credit Suisse Asset -- -- Management Holding Corp. Indirect Owner Credit Suisse First Boston -- -- Indirect Owner Credit Suisse Group -- -- Indirect Owner
24 DEUTSCHE ASSET MANAGEMENT INC. Deutsche Asset Management Inc. ("DAMI") is a sub-adviser for the Registrant's SEI VP Large Cap Value and SEI Large Cap Growth Funds. The principal business address of DAMI is 280 Park Avenue, New York, New York 10017. DAMI is a registered investment adviser under the Advisers Act.
NAME AND POSITION WITH INVESTMENT ADVISOR NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ------------------------------ ------------------------------ ------------------------------ Dean Barr Bankers Trust Company Managing Director President William Butterly -- -- Secretary, Executive Vice President Lori Callahan Bankers Trust Company Managing Director Director, Vice President Richard Goldman -- -- Executive Vice President Audrey M. T. Jones The Small Cap Fund Inc. Director Executive Vice President, Director Mary Mullin Bankers Trust Company Managing Director Compliance Officer, Executive Vice President Gwyn Thomas -- -- Director, Vice President
DAVID J. GREENE & CO., LLC David J. Greene & Co. LLC ("D.J. Greene") is a sub-adviser to the Registrant's SEI VP Small Cap Value Fund. The principal business address of D.J. Greene is 599 Lexington Avenue, 12th Floor, New York, NY 10022. D. J. Greene is an investment adviser registered under the Advisers Act.
NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER OTHER COMPANY ------------------------------ ------------------------------ ----------------------------------- Michael C. Greene -- -- Chief Executive Officer Alan I. Greene -- -- Chairman of Investment Committee Marcia R. Dachs, CPA -- -- Chief Financial Officer E. Stephen Walsh -- -- Chief Administrative Officer David R. Pedowitz -- -- Director of Research
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NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER OTHER COMPANY ------------------------------ ------------------------------ ----------------------------------- Erwin A. Zeuschner -- -- Director of Portfolio Management Ralph Ruiz -- -- Director of Trading Robert J. Ravitz, CFA -- -- Senior Vice President Benjamin H. Nahum -- -- Executive Vice President Jordan F. Posner -- -- Vice President James R. Greene -- -- Senior Vice President Clarissa Moore -- -- Director of Marketing/Client Services Jack Estes -- -- Vice President Pong Chan -- -- Director of MIS
DUNCAN-HURST CAPITAL MANAGEMENT INC. Duncan-Hurst Capital Management Inc. ("Duncan-Hurst") is a sub-adviser for the Registrant's SEI VP Large Cap Growth Fund. The principal business address of Duncan-Hurst is 4365 Executive Drive, Suite 1520, San Diego, CA 92121. Duncan-Hurst is a registered investment adviser under the Advisers Act.
NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ----------------------------- ----------------------------- ----------------------------- William Hale Duncan, Jr. -- -- CEO, Chairman, CFO Frank Page Hurst -- -- President
26 IRIDIAN ASSET MANAGEMENT LLC Iridian Asset Management LLC ("Iridian") is a sub-adviser for the Registrant's Large Cap and Large Cap Value Funds. The principal business address of Iridian is 276 Post Road West, Westport, CT 06880-4704. IAM is a registered investment adviser under the Advisers Act.
NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ----------------------------- ----------------------------- ----------------------------- David L. Cohen Arnhold and S. Bleichroeder Portfolio Manager Principal, Portfolio Manager Advisers, Inc. Jeffrey M. Elliott -- -- Executive Vice President, Chief Operating Officer, and Secretary Alice B. Hicks -- -- Executive Vice President Harold J. Levy Arnhold and S. Bleichroeder Portfolio Manager Principal, Portfolio Manager Advisers, Inc.
LSV ASSET MANAGEMENT LSV Asset Management ("LSV") is a sub-adviser for the Registrant's SEI VP Large Cap Value Fund and Small Cap Value Funds. The principal business address of LSV is 200 West Madison Street, Chicago, Illinois 60606. LSV is an investment adviser registered under the Advisers Act.
NAME AND POSITION WITH INVESTMENT ADVISER OTHER COMPANY CONNECTION WITH OTHER COMPANY ----------------------------- ----------------------------- ----------------------------- Lakonishok Corporation -- -- General Partner SEI Funds, Inc. -- -- General Partner Shleifer Corporation -- -- General Partner Vishny Corporation -- -- General Partner Josef Lakonishok University of Illinois Professor Principal, CEO Andrei Shleifer Harvard University Professor Partner Robert Vishny University of Chicago Professor Principal Menno Vermeulen -- -- Principal 11-11 LLC -- -- General Partner
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NAME AND POSITION WITH INVESTMENT ADVISER OTHER COMPANY CONNECTION WITH OTHER COMPANY ----------------------------- ----------------------------- ----------------------------- Christopher J. LaCroix -- -- Managing Director Menno LLC -- -- General Partner Tremaine Atkinson -- -- Partner, Chief Operating Officer LaCroix LLC -- -- General Partner
MAZAMA CAPITAL MANAGMENT, INC. Mazama Capital Managment, Inc. ("Mazama") is a sub-adviser for the Registrant's SEI VP Small Cap Growth Fund. The principal business address of Mazama is One SW Columbia Street, Suite 1860, Portland, Oregon 97258. Mazama is an investment adviser registered under the Advisers Act.
NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ----------------------------- ----------------------------- ----------------------------- Ronald Adair Sauer -- -- President, Chairman and Senior Portfolio Manager Helen McDonald Degener The Mathes Company VP and Portfolio Manager Director and Chief Investment (four large cap accounts) Officer Jill Ronne Collins -- -- Senior VP Marketing & Client Service Brian Paul Alfrey -- -- Director, Executive Vice President and Chief Operating Officer Stephen Charles Brink -- -- Senior Vice President, Director Research
MCKINLEY CAPITAL MANAGEMENT, INC. McKinley Capital Management, Inc. ("McKinley Capital") is an investment sub-adviser for the Registrant's SEI VP Small Cap Growth Fund. The principal address of McKinley Capital is 3301 C Street, Anchorage, Alaska 99503. McKinley Capital is an investment adviser registered under the Advisers Act.
NAME AND POSITION WITH INVESTMENT ADVISER OTHER COMPANY TITLE ------------------------------- -------------------------------- -------------------------------- Robert B. Gillam FAS Alaska, Inc. Officer, Director President, CIO McKinley Offshore Management, Director Ltd.
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NAME AND POSITION WITH INVESTMENT ADVISER OTHER COMPANY TITLE ------------------------------- -------------------------------- -------------------------------- McKinley Market Neutral Offshore Director Limited McKinley Partners LLC Manager Diane M. Wilke McKinley Market Neutral Offshore Director Executive Vice President, COO Limited McKinley Partners LLC Director FAS Alaska, Inc. Officer, Director B. Thomas Willison -- -- Director Tamara L. Leitis -- -- Assistant Vice President, HR Manager
MELLON BOND ASSOCIATES, LLP Mellon Bond Associates, LLP ("Mellon Bond") is a Sub-Adviser to the Fund's SEI VP Bond Index Fund. The principal business address of Mellon Bond is Mellon Bank Center, 1735 Market Street, Philadelphia, Pennsylvania 19101-7899. Mellon Bond is an investment adviser registered under the Advisers Act.
NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ---------------------------- ------------------------------- ------------------------------- Ronald Phillip O'Hanley, III Boston Safe Deposit & Trust Executive Committee/Director Chairman, Trustee Company The Boston Company, Inc. Executive Committee/Director Buck Consultants, Inc. Director Newton Management LTD Executive Committee/Director Mellon Asset Mgmt (Japan) Non-Resident Director Company Franklin Portfolio Holdings Director Mellon Bank, N.A. Senior Vice President The Dreyfus Corporation Vice Chairman TBCAM Holdings, Inc. Director The Boston Company Asset Director Management, Inc. Boston Safe Advisors, Inc. Chairman/Director Mellon Capital Management Director Corporation Certus Asset Advisors Director Corporation
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NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ---------------------------- ------------------------------- ------------------------------- Mellon Equity Associates, LLP Trustee, Chairman Mellon-France Corporation Director Laurel Capital Advisors, LLP Trustee Pareto Partners Partner Representative John Joseph Nagorniak Franklin Portfolio Holdings, Chairman/Director Executive Committee LLC Mellon Equity Associates, LLP Executive Committee Member Certus Asset Advisors Director Corporation TBCAM Holdings, LLC Director Mellon Capital Mgmt Corporation Director Franklin Portfolio Chairman/CEO/Director Holdings, Inc. Franklin Portfolio Associates, Chairman/CEO LLC William F. Adam -- -- CEO, Executive Committee John K. Milne -- -- President, CIO, Executive Committee Stephen Edward Canter The Dreyfus Corporation Chairman, CEO Executive Committee Newon Management Limited Director Mellon Equity Associates, LLP Executive Committee Member Franklin Portfolio Associates, LLC Franklin Portfolio Holdings, Inc. The Boston Co. Asset Management, LLC TBCAM Holdings, LLC Mellon Capital Management Corporation Dreyfus Investment Chairman/President Advisors, Inc. Founders Asset Management, LLC Board of Managers Member The Dreyfus Trust Company Chairman/President/CEO Mellon Financial Corporation Vice Chairman James Milton Gockley LTCB Investment, LLC Secretary Executive Committee MFSC #17, LLC Vice President Mellon Accounting Vice President Services, Inc.
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NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ---------------------------- ------------------------------- ------------------------------- Mellon Bank, N.A. Assistant Secretary Mellon Securities Trust Company Vice President Mellon Accounting Vice President Services, Inc. Mellon Capital Management Vice President Corporation Mellon Equity Associates, LLP Vice President, Executive Committee Member Mellon Financial Services Corp Vice President #17 Mellon-France Corporation Vice President
MONTAG & CALDWELL, INC. Montag & Caldwell, Inc. ("Montag & Caldwell") is a sub-adviser for the Registrant's SEI VP Large Cap Growth Funds. The principal business address of Montag & Caldwell is 3455 Peachtree Street, NE, Suite 1200, Atlanta, Georgia 30326. Montag & Caldwell is a registered investment adviser under the Advisers Act.
NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY POSITION WITH OTHER COMPANY ----------------------------- ----------------------------- ----------------------------- Ronald E. Canakaris, CFA -- -- CEO, President, Director and CIO Solon P. Patterson, CFA -- -- CEO, Director & Chairman Andrew Neil Rithet -- -- Director Tom C. Brown Director
MORGAN STANLEY INVESTMENT MANAGEMENT INC. Morgan Stanley Investment Management Inc. ("MSIM") is a sub-adviser for the Registrant's SEI VP Emerging Market Equity Fund. The principal business address of MSIM is 1221 Avenue of the Americas, New York, NY 10020. MSIM is an investment adviser registered under the Adviser Act.
NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ------------------------------------ ------------------------------------ ------------------------------------ Barton M. Biggs -- -- Chairman, Director and Managing Director James P. Wallin -- -- Chief Compliance Officer and Executive Director
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NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ------------------------------------ ------------------------------------ ------------------------------------ Ronald E. Robison Miller Anderson & Sherrerd, LLP Exec. Committee Member Chief Operating Officer, Managing Director Richard B. Worley -- -- President, Director and Managing Director Arthur Lev -- -- General Counsel, Managing Director & Secretary Alexander C. Frank -- -- Treasurer Mitchell M. Merin Morgan Stanley Investment Advisors President, Chief Officer, Director Executive Director, President, COO Inc. Morgan Stanley Dean Witter & Co. President, COO Morgan Stanley Distributors Inc. Chairman, CEO, Director Morgan Stanley Trust Chairman, CEO, Director Morgan Stanley Services Company Inc. Chairman, CEO, Director Morgan Stanley Funds President Morgan Stanley DW Inc. Executive Vice President, Director Various MSDW Subsidiaries Director Various Van Kampen investment Trustee companies Joseph J. McAlinden Morgan Stanley Investment Advisors CIO Managing Director, CIO Inc. Morgan Stanley Dean Witter & Co. CIO Morgan Stanley Funds Vice President Morgan Stanley Trust Director Rajesh Kuman Gupta Morgan Stanley Investment Advisors Senior Vice President, Director of Chief Administrative Officer Inc. the Taxable Fixed Income Investments Group and Chief Administrative Officer--Investments Various Morgan Stanley Funds Vice President
NICHOLAS-APPLEGATE CAPITAL MANAGEMENT Nicholas-Applegate Capital Management ("Nicholas-Applegate") is a sub-adviser for the Registrant's SEI VP High Yield Bond and SEI VP Small Cap Growth Funds. The principal business address of 32 Nicholas-Applegate is 600 West Broadway, 29th Floor, San Diego, California 92101. Nicholas-Applegate is an investment adviser registered under the Advisers Act.
NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ----------------------------- ----------------------------- ----------------------------- Arthur E. Nicholas Nicholas-Applegate Holdings, Chief Executive Officer Chairman, Chief Executive LLC Officer Nicholas-Applegate Chairman Securities, LLC Nicholas-Applegate Chairman & Trustee Institutional Funds Nicholas-Applegate Securities President International LDC Nicholas-Applegate US Growth Director Equity Fund, Ltd. Edward Blake Moore, Jr. Nicholas-Applegate Holdings, Secretary, General Counsel General Counsel LLC Nicholas-Applegate General Counsel, Secretary Securities, LLC Nicholas-Applegate President Institutional Funds Marna P. Whittington, Ph. D Allianz Dresner Asset Chief Operating Officer President, Executive Management Committee Nicholas-Applegate Holdings, President LLC Nicholas-Applegate President Securities, LLC Eric Spencer Sagerman Nicholas-Applegate Southeast Director Head of Global Marketing, Asia Fund Executive Committee Nicholas-Applegate India Director Fund, Ltd. PCC William Charles Maher, CPA Nicholas-Applegate Holdings, Chief Financial Officer, Chief Financial Officer LLC Treasurer Nicholas-Applegate Treasurer Institutional Funds Nicholas-Applegate Chief Financial Officer Securities, LLC Catherine Charlotte Nicholas -- -- Chief Investment Officer, Global Equity Management Peter James Johnson Nicholas-Applegate Vice President Senior Vice President, Securities, LLC Director of Institutional Sales
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NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ----------------------------- ----------------------------- ----------------------------- Scott Allan Long -- -- Head of Global Operations Victoria Proctor Hulick -- -- Director of Compliance Nicholas-Applegate Holdings Allianz Dresner Asset Limited Partner LLC Management Managing Member Allianz Dresner Asset Allianz of America, Inc. Sole Shareholder Management of America, LLC Limited Partner
NOMURA CORPORATE RESEARCH AND ASSET MANAGEMENT INC. Nomura Corporate Research and Asset Management Inc. ("Nomura") is a sub-adviser for the Registrant's SEI VP High Yield Bond Fund. The principal business address of Nomura is Two World Financial Center, Building B, New York, New York 10281-1198. Nomura is an investment adviser registered under the Advisers Act.
NAME AND POSITION WITH INVESTMENT ADVISER OTHER COMPANY CONNECTION WITH OTHER COMPANY ----------------------------- ----------------------------- ----------------------------- Robert Levine -- -- Managing Director, President, CEO and Board Member Lance Bernard Fraser -- -- Managing Director, Chief Operating Officer Atsushi Yoshikawa Nomura Securities Chairman, Board Member Co-Chairman of the Board International, Inc. Joseph Redmond Schmuckler Nomura Securities President, Chief Operating Co-Chairman of the Board International, Inc. Officer David Mair Findlay Nomura Holding America, Inc. Chief Legal Officer, Board Executive Managing Director, Member, Executive Managing Board Member, Chief Legal Director Officer Nomura Securities Chief Legal Officer, Board International, Inc. Member, Executive Managing Director Hideyuki Takahashi Nomura Securities Chief Executive Officer Board Member International, Inc.
34 OECHSLE INTERNATIONAL ADVISORS, LLC Oechsle International Advisors, LLC ("Oechsle") is a sub-adviser for the Registrant's SEI VP International Equity Fund. The principal business address of Oechsle is One International Place, 23rd Floor, Boston, Massachusetts 02110. Oechsle is an investment adviser registered under the Advisers Act.
NAME AND POSITION WITH INVESTMENT ADVISER OTHER COMPANY CONNECTION WITH OTHER COMPANY ----------------------------- ----------------------------- ----------------------------- Singleton Dewey Keesler -- -- CIO and Executive Managing Principal Stephen P. Langer -- -- Executive Managing Principal/ Director of Marketing Lawrence Sean Roche -- -- COO and Executive Managing Principal Warren Walker Oechsle International Portfolio Manager Executive Managing Principal Advisors, Ltd. Steven Henry Schaefer Oechsle International Portfolio Manager Managing Principal/Portfolio Advisors, Ltd. Manager Paula Nicole Drake -- -- General Counsel/Principal Martin Dyer -- -- Director of Compliance Officer Steven James Butters -- -- Marketing Officer/Portfolio Manager Kathleen Mary Harris -- -- Principal/Portfolio Manager Peter Mentz Jebsen OIA European Management Portfolio Manager Portfolio Manager Company, LLC John G. Power, III -- -- Senior Vice President
PEREGRINE CAPITAL MANAGEMENT INC. Peregrine Capital Management Inc. ("Peregrine") is a sub-adviser for the Registrant's SEI VP Large Cap Growth Fund. The principal business address of Peregrine is LaSalle Plaza, 800 LaSalle Avenue, Suite 1850, Minneapolis, Minnesota 55402-2018. Peregrine is a registered investment adviser under the Advisers Act.
NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ----------------------------- ----------------------------- ----------------------------- Jon Richard Campbell Wells Fargo Company Banking/ Commercial Lending/ Director Management
35
NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ----------------------------- ----------------------------- ----------------------------- Robert Bruce Mersky -- -- Chairman of the Board, CEO, President Ronald George Hoffman -- -- COO, CCO, CFO, Senior Vice President William Daniel Giese -- -- Senior Vice President, Portfolio Manager Paul Edward von Kuster, III -- -- Senior Vice President, Portfolio Manager Patricia Deeney Burns -- -- Senior Vice President, Portfolio Manager Paul Robert Wurm -- -- Senior Vice President, Equity Trader John Sorenson Dale -- -- Senior Vice President, Portfolio Manager Jeannine McCormick -- -- Senior Vice President, Investment Analyst Barbara Kloepfer McFadden -- -- Senior Vice President, Equity Trader Gary Edward Nussbaum -- -- Senior Vice President, Portfolio Manager Tasso Harry Coin -- -- Senior Vice President, Portfolio Manager Julie McDonell Gerend -- -- Senior Vice President, Client Service & Marketing Daniel John Hagen -- -- Senior Vice President, Portfolio Manager Jay Hendrickson Strohmaier -- -- Senior Vice President, Client Service & Marketing
36
NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ----------------------------- ----------------------------- ----------------------------- James Patrick Ross -- -- Senior Vice President, Senior Portfolio Advisor Douglas Gordon Pugh -- -- Senior Vice President, Portfolio Manager Janelle Mae Walter -- -- Assistant President, Client Services Colin Michael Sharp -- -- Vice President, Technology Manager William Austen Grierson -- -- Vice President, Investment Analyst John Arthur Maschoff -- -- Senior Vice President, Client Service & Marketing
ROBERT W. BAIRD & CO., INCORPORATED Robert W. Baird & Co., Incorporated ("Baird") is a sub-adviser for the Registrant's SEI VP Core Fixed Income Fund. The principal business address of Baird is 777 E. Wisconsin Avenue, Milwaukee, WI 53202. Baird is an investment adviser registered under the Advisers Act.
NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ----------------------------- ----------------------------- ----------------------------- Robert J. Berden -- -- Director Glen Fredrick Hackmann -- -- Secretary George Frederick Kasten, Jr. -- -- Chairman Deborah J. Fabritz -- -- Assistant Secretary Paul Edward Purcell -- -- Director, President, Chief Executive Officer Edward J. Zore -- -- Director
37 RS INVESTMENT MANAGEMENT, L.P. RS Investment Management, L.P. ("RSIM") is a sub-adviser for the Registrant's SEI VP Small Cap Growth Fund. The principal business address of RSIM is 388 Market Street, San Francisco, California 94111. RSIM is an investment adviser registered under the Advisers Act.
NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ----------------------------- ----------------------------- ----------------------------- RS Regulated 1 LLC (RSR1) -- -- Robertson Stephens Investment -- -- Member of RSR1 Bank America Corporation -- -- Indirect Parent George Randall Hecht Robertson, Stephens & Co. Indirect Owner Director and President Investment Management, L.P. Roberston, Stephens President, CEO, Director & Investment Indirect Owner Management, Inc. Robertson, Stephens Trustee Investment Trust Paul Harbor Stephens Roberston, Stephens Indirect Owner Member of Group Investment Management, Inc.
SALOMON BROTHERS ASSET MANAGEMENT INC. Salomon Brothers Asset Management Inc. ("SBAM") is the sub-adviser for the Registrant's SEI VP Emerging Markets Debt Fund. The principal address of SBAM is 388 Greenwich Street, New York, New York 10013. SBAM is an investment adviser registered under the Advisers Act.
NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ----------------------------- ----------------------------- ----------------------------- Andrew W. Alter Salomon Brothers Inc. Counsel Assistant Secretary Howard M. Darmstadter Travelers Group, Inc. Assistant General Counsel Assistant Secretary Vilas V. Gadkari Salomon Brothers Asset Managing Director & Chief Managing Director Management Limited Investment Officer Salomon Brothers Inc. Managing Director Salomon Brothers Managing Director International Limited Thomas W. Jasper Salomon Brothers Inc. Managing Director Treasurer Ross S. Margolies Salomon Brothers Inc. Managing Director Managing Director Heath B. McLendon Salomon Smith Barney Managing Director Managing Director
38
NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ----------------------------- ----------------------------- ----------------------------- Smith Barney Strategy Director, Chairman Advisers Inc. The Travelers Investment Investment Director Management Company Mary L. McNiff Salomon Brothers Inc. Director Director Pamela P. Milunovich Salomon Brothers Inc. Director Director Nancy A. Noyes Salomon Brothers Inc. Director Director Maureen J. O'Callaghan Salomon Brothers Inc. Director Director Marcus A. Peckman Salomon Brothers, Inc. Director Director-Chief Financial Officer Michael F. Rosenbaum Salomon Smith Barney Inc. Managing Director Chief Legal Officer, General Counsel Salomon Brothers Asset Chief Legal Officer Management Limited Salomon Brothers Asset Chief Legal Officer Management Asia Pacific Limited The Travelers Group Inc. General Counsel to Asset Management Mitchel J. Schulman Salomon Brothers Inc. Director, COO-Portfolios Director Jeffrey S. Scott -- -- Chief Compliance Officer Beth A. Simmel Salomon Brothers Inc. Director Director David A. Torchia Salomon Brothers Inc. Director Director Peter J. Wilby Salomon Brothers Inc. Managing Director Managing Director
SANFORD C. BERNSTEIN & CO., LLC Sanford C. Bernstein & Co., LLC ("Sanford Bernstein") is a sub-adviser for the Registrant's SEI VP Large Cap Value Fund. The principal business address of Sanford Bernstein is 1345 Avenue of the 39 Americas, New York, New York 10105. Sanford Bernstein is an investment adviser registered under the Advisers Act.
NAME AND POSITION CONNECTION WITH WITH INVESTMENT ADVISER NAME OF OTHER COMPANY OTHER COMPANY ----------------------------- ----------------------------- ----------------------------- Lewis Alan Sanders Alliance Capital Management Vice Chairman, CIO Director Corporation Gerald M. Lieberman Alliance Capital Management Executive Vice President-- Chief Financial Officer & Corporation Finance and Administration Director John Donato Carifa Alliance Capital Management Director, President & COO Director Corporation Michael Thomas Borgia Alliance Capital Management COO Director, in charge of Corporation Operations Sallie L. Krawcheck -- -- CEO, Chairman Nick J. Spencer Sanford C. Bernstein Ltd Director, CEO, Senior Director, President & Global Executive Officer Strategist
SAWGRASS ASSET MANAGEMENT, LLC Sawgrass Asset Management, LLC ("Sawgrass") is a sub-adviser for the Registrant's SEI VP Small Cap Growth Fund. The principal business address of Sawgrass is 1579 The Greens Way, Suite 20, Jacksonville, FL 32250. Sawgrass is an investment adviser registered under the Advisers Act.
NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ----------------------------- ----------------------------- ----------------------------- Sawgrass Asset -- -- Management, Inc. ("S.A.M., Inc.") Member, Shareholder of 50% AmSouth Bank -- -- Member, Shareholder of 50% AmSouth Bancorporation -- -- 100% Shareholder of AmSouth Bank Andrew M. Cantor, CFA S.A.M., Inc. 1/3 Owner Principal, Director of Fixed Income Investing Dean E. McQuiddy, CFA S.A.M., Inc. 1/3 Owner Principal, Director of Equity Investing Brian K. Monroe S.A.M., Inc. 1/3 Owner Principal, Director of Sales & Marketing
40 SCHRODER INVESTMENT MANAGEMENT NORTH AMERICA INC. Schroder Investment Management North America Inc. ("Schroders") is a sub-adviser for the Registrant's SEI VP Emerging Markets Equity Fund. The principal business address for Schroders is 875 Third Avenue 22nd Floor, New York, NY 10022. Schroders is an investment adviser registered under the Advisers Act.
NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ----------------------------- ----------------------------- ----------------------------- Andrew R. Barker Schroder Investment First Vice President Director, Senior Vice Management North America President Ltd. William H. Barnes -- -- Director, Senior Vice President Andrew Anthony Beal Schroder Investment Investment Manager Investment Manager Management North America Ltd. Stefan Bottcher Schroder Investment Director Director Management North America Ltd. Marie C. Boyveresser Bertic -- -- Manager Donal Fergal Cassidy -- -- Comptroller, Vice President/NY Denis Henry Clough Schroder Capital Management Investment Manager Investment Manager International Ltd. Schroder Investment Director Management International Ltd. Schroder Investment Director Management (UK) Limited Heather Frances Crighton Schroder Capital Management Fund Manager Senior Vice President, International Inc. Director Schroder Capital Management First Vice President, International Ltd. Director Louise Croset Schroder Capital Management Director, First Vice Executive Vice President, International Ltd. President Director Nancy Curtin -- -- Managing Director, Director Tappan Datta Schroder Capital Management Economist, First Vice Senior Vice President, International Ltd. President Director Robert Geoffrey Davy Schroder Investment Director Executive Vice President, Management International Director Ltd.
41
NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ----------------------------- ----------------------------- ----------------------------- Schroder Mildesa Investment Director Management S.A. Schroder Capital Funds Vice President Margaret Douglas-Hamilton Schroder US Holdings Inc. Senior Vice President, Director, Secretary Secretary, General Counsel Schroder Structured Secretary Investments Inc. Schroder Venture Managers, Secretary Inc. Donald H.M. Farquharson Schroder Capital Management Vice President Senior Vice President, International Ltd. Director Richard Ralston Foulkes Schroder Investment Deputy Chairman Deputy Chairman, Director Management International Ltd. Schroder Investment Director Management (Europe) Ltd. Schroder Capital Management Deputy Chairman International Ltd. Schroder Asseily & Company, Director Ltd. Schroder Investment Deputy Chairman Management International Ltd. Roger Goodchild Schroder Investment Finance Officer, Vice Vice President/Controller- Management North America President London Ltd. Schroder Investment Finance Officer, Vice Management North America President Ltd. Philip Hardy Schroder Capital Management Director, Investment Manager Director International Ltd. Sharon Louise Haugh Schroder Investment Member of Management Chairman, Director Management Ltd. Committee Schroder Investment Chairman, Director Management North America Ltd. Schroder Fund Advisors Inc. Chairman, Director Susan B. Kenneally Schroder Capital Management Director, First Vice Senior Vice President, International Ltd. President Director
42
NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ----------------------------- ----------------------------- ----------------------------- Barbara Brooke Manning Schroder Fund Advisors Inc. First Vice President First Vice President, Chief Compliance Officer Catherine A. Mazza Schroder Fund Advisors Inc. Executive Vice President, Senior Vice President, Director Director Thomas Melendez Schroder Mildesa Investment First Vice President, Senior Vice President, Management SA Assistant Director Director Robert C. Michele -- -- Director, Managing Director Connie Moak Mazur -- -- Director, Senior Vice President Paul M. Morris Schroder Fund Advisors Inc. Registered Representative Director, Managing Director Michael Mark Perelstein Schroder Capital Management Director, Senior Vice Senior Investment Officer International Ltd. President Gavin Douglas Lewis Ralston Schroder Capital Management Director, Senior Vice Managing Director, Director International Ltd. President David J. Ridgway Schroder Capital Management First Vice President, Senior Vice President, International Ltd. Director Director David Murray Salisbury Schroder Investment Chairman, Director Director Management Ltd. Schroder Investment Director Management North America Ltd. Schroder Investment Director Management (Europe) Ltd. Schroders plc. Director Schroder Property Investments Director Limited Schroder US Holdings Inc. Director Schroder Investment Director Management (UK) Ltd. Frances P. Selby -- -- Director, Senior Vice President Mark Julian Smith Schroder Investment Group Operations Director, Executive Vice President, Management Limited Director Director Schroder Capital Management Senior Vice President, International Ltd. Director Schroder Fund Advisors Inc. Senior Vice President, Director
43
NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ----------------------------- ----------------------------- ----------------------------- Schroder Investment Director Management (Guernsey) Ltd. Ellen B. Sullivan -- -- Senior Vice President, Director Nancy B. Tooke -- -- Executive Vice President, Director John Alexander Troiano Schroder Capital Management Chief Executive Officer, Chief Executive Officer, International Ltd. Senior Vice Director President/Managing Director Schroder Capital Management Director Inc. Ira L. Unschuld -- -- Senior Vice President, Director Jan Kees Van Heusde Schroder Capital Management Director, First Vice Senior Vice President, International Ltd. President Director Guy Varney Schroder Capital Management Director, First Vice Senior Vice President, International Ltd. President Director Reza Vishkai Schroder Investment Divisional Director Senior Vice President, Management Ltd. Director Schroder Capital Management Director, First Vice International Ltd. President Ash C. Williams -- -- Executive Vice President, Director Thomas Jeremy Willoughby Schroder Investment Compliance Officer Compliance Officer Management International Ltd. Schroder Capital Management Compliance Officer International Ltd. Schroder Investment Head of Compliance Management Ltd. Lucinda Jenkins Schroder Capital Management Investment Manager/Analyst Investment Manager/Analyst International Ltd. Schroder Investment Investment Manager/Analyst Management International Limited James Anthony Warren Gotto Schroder Capital Management Portfolio Manager Portfolio Manager International Ltd. Jane Paula Lucas -- -- Senior Vice President, Director
44
NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ----------------------------- ----------------------------- ----------------------------- Abdallah Nauphal -- -- Senior Vice President Giles Nevillet Schroder Capital Management Assistant Director, Investment Manager International Ltd. Investment Manager Richard John Sennitt Schroder Investment Investment Manager Investment Manager Management International Limited Schroder Capital Management Investment Manager International Ltd. Andrew William Smethurst Schroder Fund Advisors Inc. Registered Representative First Vice President, Portfolio Manager Olga Maria Garcia Tascon Schroder Capital Management Analyst, Investment Manager Analyst, Investment Manager International Ltd. Schroder Investment Analyst, Investment Manager Management International Limited Shigemi Takagi -- -- First Vice President, Portfolio Manager The Personal Investment Director Authority, Ltd.
SECURITY CAPITAL RESEARCH AND MANAGEMENT, INC. Security Capital Research and Management, Inc. is a Sub-adviser for the Registrant's SEI VP Small Cap Value Fund. The principal business address of SC-RRM is 11 South LaSalle St., 2nd Floor, Chicago, IL 60603. SC-RRM is an investment adviser registered under the Adviser Act.
NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ----------------------------- ----------------------------- ----------------------------- Kevin W. Bedell -- -- Senior Vice President Anthony R. Manno, Jr. -- -- President, Director, and Managing Director David E. Rosenbaum -- -- Senior Vice President Jeffrey C. Nellessen -- -- Vice President, Secretary, Treasurer, and Controller Kenneth D. Statz -- -- Managing Director
45
NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ----------------------------- ----------------------------- ----------------------------- Russell C. Plah -- -- Managing Director
SEI INVESTMENTS MANAGEMENT CORPORATION SEI Investments Management Corporation ("SIMC") is the adviser for the SEI VP Large Cap Value, SEI VP Large Cap Growth, SEI VP Small Cap Value, SEI VP Small Cap Growth, SEI VP S&P 500 Index, SEI VP Emerging Markets Equity, SEI VP International Equity, SEI VP Core Fixed Income, SEI VP High Yield Bond, SEI VP Bond Index, SEI VP International Fixed Income, SEI VP Prime Obligation and SEI VP Emerging Markets Debt Funds. The principal address of SIMC is One Freedom Valley Drive, Oaks, Pennsylvania 19456. SIMC is an investment adviser registered under the Advisers Act.
NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ------------------------------------ ------------------------------------ ------------------------------------ Alfred P. West, Jr. SEI Investments Company Director, Chairman & CEO Chairman, CEO, Director SEI Investments Director, Chairman of the Board of Distribution Co. Directors SEI Inc. (Canada) Director SEI Ventures, Inc. Director, Chairman, President SEI Funds, Inc. CEO, Chairman of the Board of Directors SEI Global Investment Corp. Director, CEO, Chairman SEI Investments Global (Cayman), Chairman, CEO Limited SEI Capital AG Director, Chairman of the Board SEI Global Capital Director, CEO, Chairman Investments, Inc. CR Financial Services Company Director, Chairman of the Board SEI Investments Mutual Fund Services Chairman, CEO SEI Investments Fund Management Chairman, CEO SEI Global Holdings (Cayman) Inc. Chairman, CEO SEI Investments De Mexico Director SEI Asset Korea Director SEI Venture Capital, Inc. Director, Chairman, CEO
46
NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ------------------------------------ ------------------------------------ ------------------------------------ Carmen V. Romeo SEI Investments Company Director, Executive Vice President, Executive Vice President, Director President-Investment Advisory Group SEI Private Trust Company Director SEI Investments Director Distribution Co. SEI Trust Company Director SEI Investments, Inc. Director, President SEI Ventures, Inc. Director, Executive Vice President SEI Investments Developments, Inc. Director, President SEI Funds, Inc. Director, Executive Vice President SEI Global Investments Corp. Executive Vice President SEI Global Capital Executive Vice President, Director Investments, Inc. SEI Insurance Group, Inc. Director SEI Primus Holding Corp. Director, President CR Financial Services Company Director SEI Investments Mutual Fund Services Executive Vice President SEI Investments Fund Management Executive Vice President SEI Venture Capital, Inc. Director Richard B. Lieb SEI Investments Company Director, Executive Vice President, Director, Executive Vice President President-Investment Systems & Services Division SEI Investments Director, Executive Vice President Distribution Co. SEI Trust Company Director, Chairman of the Board SEI Investments-Global Fund Services Director Limited SEI Investments Mutual Fund Services Executive Vice President SEI Investments Fund Management Executive Vice President
47
NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ------------------------------------ ------------------------------------ ------------------------------------ SEI Private Trust Company Director Edward D. Loughlin SEI Investments Company Executive Vice President, Executive Vice President President-Asset Management Division SEI Trust Company Director SEI Funds, Inc. Executive Vice President SEI Capital Limited (Canada) Director SEI Advanced Capital Director, President Management, Inc. SEI Investments Mutual Fund Services Executive Vice President SEI Investments Fund Management Executive Vice President SEI Investments Canada Company Director CCF-SEI Investments Director SEI Asset Korea Director Dennis J. McGonigle SEI Investments Company Executive Vice President Executive Vice President SEI Investments Executive Vice President Distribution Co. SEI Investments Mutual Fund Services Senior Vice President SEI Investments Fund Management Senior Vice President Ed Daly -- -- Senior Vice President, Managing Director Carl A. Guarino SEI Investments Company Senior Vice President Senior Vice President SEI Investments Distribution Company Senior Vice President SEI Global Investments Corp. Senior Vice President SEI Investments Global, Limited Director SEI Global Holdings (Cayman) Inc. Director SEI Investments Argentina S.A. Director Quadrum S.A. Director
48
NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ------------------------------------ ------------------------------------ ------------------------------------ SEI Investments De Mexico Director SEI Asset Korea Director SEI Investments (Europe) Ltd. Director SEI Investments (South Africa) Director Limited CCF SEI Investments Chairman SEI Venture Capital, Inc. Executive Vice President SEI Investments-Unit Trust Director Management (UK) Limited Robert S. Ludwig SEI Funds, Inc. Vice President Senior Vice President, CIO SEI Investments Mutual Fund Services Vice President, Team Leader SEI Investments Fund Management Vice President, Team Leader Jack May SEI Investments Senior Vice President Senior Vice President Distribution Co. James V. Morris -- -- Senior Vice President, Managing Director Steve Onofrio -- -- Senior Vice President, Managing Director Kevin P. Robins SEI Investments Company Senior Vice President Senior Vice President SEI Investments Senior Vice President Distribution Co. SEI Investments Global (Cayman) Director Limited SEI Trust Company Director SEI Insurance Group, Inc. Director SEI Global Capital Senior Vice President, Secretary Investments Inc. CR Financial Services Company President SEI Investments Mutual Fund Services Senior Vice President, Secretary SEI Global Holdings (Cayman) Inc. Director
49
NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ------------------------------------ ------------------------------------ ------------------------------------ SEI Private Trust Company Director Kenneth Zimmer SEI Investments Company Senior Vice President Senior Vice President, Managing Director Timothy D. Barto SEI Investments Company Vice President, Assistant Secretary Vice President, Assistant Secretary SEI Investments Distribution Company Vice President, Assistant Secretary SEI Investments, Inc. Vice President, Assistant Secretary SEI Ventures, Inc. Vice President, Assistant Secretary SEI Investments Developments, Inc. Vice President, Assistant Secretary SEI Insurance Group, Inc. Vice President, Assistant Secretary SEI Funds, Inc. Vice President, Assistant Secretary SEI Global Investments Corp. Vice President, Assistant Secretary SEI Advanced Capital Vice President, Assistant Secretary Management, Inc. SEI Global Capital Vice President, Assistant Secretary Investments, Inc. SEI Primus Holding Corp. Vice President, Assistant Secretary SEI Investments Mutual Fund Services Vice President, Assistant Secretary SEI Investments Fund Management Vice President, Assistant Secretary SEI Venture Capital, Inc. Vice President, Assistant Secretary Jay Brown -- -- Vice President Todd Cipperman SEI Investments Company Senior Vice President, General General Counsel, Senior Vice Counsel, Assistant Secretary President, Secretary SEI Investments General Counsel, Senior Vice Distribution Co. President
50
NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ------------------------------------ ------------------------------------ ------------------------------------ SEI Inc. (Canada) Senior Vice President, General Counsel & Secretary SEI Trust Company General Counsel, Senior Vice President, Assistant Secretary SEI Investments, Inc. General Counsel, Senior Vice President, Secretary SEI Ventures, Inc. General Counsel, Senior Vice President, Secretary SEI Investments Developments, Inc. General Counsel, Senior Vice President, Secretary SEI Insurance Group, Inc. Director, Senior Vice President & General Counsel SEI Funds, Inc. General Counsel, Senior Vice President, Secretary SEI Global Investments Corp. General Counsel, Senior Vice President, Secretary SEI Advanced Capital General Counsel, Senior Vice Management, Inc. President, Director, Secretary SEI Investments Global (Cayman), General Counsel, Director, Secretary Limited SEI Global Capital General Counsel, Senior Vice Investments, Inc. President, Secretary SEI Investments Global, Limited Director SEI Primus Holding Corp. General Counsel, Senior Vice President, Secretary SEI Investments Mutual Fund Services General Counsel, Senior Vice President, Secretary SEI Investments Fund Management General Counsel, Senior Vice President, Secretary SEI Global Holdings (Cayman) Inc. Director, General Counsel, Secretary SEI Investments (Europe) Ltd. Director SEI Investments Canada Company Senior Vice President, General Counsel SEI Investments (South Africa) Director Limited SEI Venture Capital, Inc. Senior Vice President, General Counsel, Secretary
51
NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ------------------------------------ ------------------------------------ ------------------------------------ SEI Investments-Unit Trust Director Management (UK) Limited Robert Crudup SEI Investments Distribution Company Vice President, Managing Director Vice President, Managing Director SEI Investments Mutual Fund Services Vice President, Managing Director SEI Investments Fund Management Vice President, Managing Director SEI Investments Company Senior Vice President Richard A. Deak SEI Investments Company Vice President, Assistant Secretary Vice President, Assistant Secretary SEI Investments Distribution Company Vice President, Assistant Secretary SEI Trust Company Vice President, Assistant Secretary SEI Investments, Inc. Vice President, Assistant Secretary SEI Ventures, Inc. Vice President, Assistant Secretary SEI Investments Developments, Inc. Vice President, Assistant Secretary SEI Funds, Inc. Vice President, Assistant Secretary SEI Global Investments Corp. Vice President, Assistant Secretary SEI Advanced Capital Vice President, Assistant Secretary Management, Inc. SEI Global Capital Vice President, Assistant Secretary Investments, Inc. SEI Primus Holding Corp. Vice President, Assistant Secretary SEI Investments Mutual Fund Services Vice President, Assistant Secretary SEI Investments Fund Management Vice President, Assistant Secretary SEI Venture Capital, Inc. Vice President, Assistant Secretary
52
NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ------------------------------------ ------------------------------------ ------------------------------------ Melissa Doran Rayer -- -- Vice President Michael Farrell -- -- Vice President Vic Galef SEI Investments Distribution Company Vice President, Managing Director Vice President, Managing Director SEI Investments Mutual Fund Services Vice President, Managing Director SEI Investments Fund Management Vice President, Managing Director Lydia A. Gavalis SEI Investments Company Vice President, Assistant Secretary Vice President, Assistant Secretary SEI Investments Distribution Company Vice President, Assistant Secretary SEI Trust Company Vice President, Assistant Secretary SEI Investments, Inc. Vice President, Assistant Secretary SEI Ventures, Inc. Vice President, Assistant Secretary SEI Investments Developments, Inc. Vice President, Assistant Secretary SEI Insurance Group, Inc. Vice President, Assistant Secretary SEI Funds, Inc. Vice President, Assistant Secretary SEI Global Investments Corp. Vice President, Assistant Secretary SEI Advanced Capital Vice President, Assistant Secretary Management, Inc. SEI Global Capital Vice President, Assistant Secretary Investments, Inc. SEI Primus Holding Corp. Vice President, Assistant Secretary SEI Investments Mutual Fund Services Vice President, Assistant Secretary SEI Investments Fund Management Vice President, Assistant Secretary
53
NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ------------------------------------ ------------------------------------ ------------------------------------ SEI Venture Capital, Inc. Vice President, Assistant Secretary Greg Gettinger SEI Investments Company Vice President Vice President SEI Investments Distribution Company Vice President SEI Trust Company Vice President SEI Investments, Inc. Vice President SEI Ventures, Inc. Vice President SEI Investments Developments, Inc. Vice President SEI Realty Capital Corporation Vice President, Secretary SEI Funds, Inc. Vice President SEI Global Investments Corp. Vice President SEI Advanced Capital Vice President Management, Inc. SEI Global Capital Vice President Investments, Inc. SEI Primus Holding Corp. Vice President SEI Investments Mutual Fund Services Vice President SEI Investments Fund Management Vice President SEI Venture Capital, Inc. Vice President Susan R. Hartley -- -- Vice President Kathy Heilig SEI Inc. (Canada) Vice President, Treasurer Vice President, Treasurer SEI Investments Company Vice President, Treasurer, Chief Accounting Officer SEI Investments Distribution Company Vice President SEI Trust Company Vice President, Treasurer SEI Ventures, Inc Vice President, Treasurer SEI Insurance Group, Inc. Vice President, Treasurer SEI Realty Capital Corporation Vice President, Treasurer
54
NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ------------------------------------ ------------------------------------ ------------------------------------ SEI Global Investments Corp. Director, Vice President, Treasurer SEI Advanced Capital Director, Vice President, Treasurer Management, Inc. SEI Investments Global (Cayman), Vice President, Treasurer Limited SEI Primus Holding Corp. Director, Vice President, Treasurer SEI Global Capital Investments, Inc. Director, Vice President, Treasurer SEI Investments Mutual Fund Services Vice President, Treasurer SEI Investments Fund Management Vice President, Treasurer SEI Global Holdings (Cayman) Inc. Vice President, Assistant Secretary, Treasurer SEI Venture Capital, Inc. Director, Vice President, Treasurer Kim Kirk SEI Investments Distribution Company Vice President, Managing Director Vice President, Managing Director SEI Investments-Global Fund Services Director Limited SEI Investments Mutual Fund Services Vice President, Managing Director SEI Investments Fund Management Vice President, Managing Director John Krzeminski SEI Investments Distribution Company Vice President, Managing Director Vice President, Managing Director SEI Investments Mutual Fund Services Vice President, Managing Director SEI Investments Fund Management Vice President, Managing Director SEI Venture Capital, Inc. Vice President Vicki Malloy SEI Investments Mutual Fund Services Vice President, Team Leader Vice President, Managing Director SEI Investments Fund Management Vice President, Team Leader
55
NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ------------------------------------ ------------------------------------ ------------------------------------ Christine M. McCullough SEI Investments Company Vice President, Assistant Secretary Vice President, Assistant Secretary SEI Investments Distribution Company Vice President, Assistant Secretary SEI Trust Company Vice President, Assistant Secretary SEI Investments, Inc. Vice President, Assistant Secretary SEI Ventures, Inc. Vice President, Assistant Secretary SEI Investments Developments, Inc. Vice President, Assistant Secretary SEI Insurance Group, Inc. Vice President, Assistant Secretary SEI Funds, Inc. Vice President, Assistant Secretary SEI Global Investments Corp. Vice President, Assistant Secretary SEI Advanced Capital Vice President, Assistant Secretary Management, Inc. SEI Global Capital Vice President, Assistant Secretary Investments, Inc. SEI Primus Holding Corp. Vice President, Assistant Secretary SEI Investments Mutual Fund Services Vice President, Assistant Secretary SEI Investments Fund Management Vice President, Assistant Secretary SEI Venture Capital, Inc. Vice President, Assistant Secretary SEI Private Trust Company General Counsel Carolyn McLaurin SEI Investments Distribution Company Vice President, Managing Director Vice President, Managing Director SEI Investments Mutual Fund Services Vice President, Managing Director SEI Investments Fund Management Vice President, Managing Director
56
NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ------------------------------------ ------------------------------------ ------------------------------------ Roger Messina -- -- Vice President Robert Prucnal -- -- Vice President Daniel Spaventa SEI Investments Distribution Company Vice President Vice President SEI Vermogens Services B.V. Managing Director B Kathryn L. Stanton SEI Investments Vice President Vice President Distribution Co. CR Financial Services Company Secretary, Treasurer Mary Vogan -- -- Vice President Raymond B. Webster -- -- Vice President Susan R. West -- -- Vice President, Managing Director Lori L. White SEI Investments Vice President, Assistant Secretary Vice President, Assistant Secretary Distribution Co. SEI Investments Company Vice President, Assistant Secretary SEI Investments, Inc. Vice President, Assistant Secretary SEI Ventures, Inc. Vice President, Assistant Secretary SEI Investments Developments, Inc. Vice President, Assistant Secretary SEI Insurance Group, Inc. Vice President, Assistant Secretary SEI Funds, Inc. Vice President, Assistant Secretary SEI Global Investments Corp. Vice President, Assistant Secretary SEI Advanced Capital Vice President, Assistant Secretary Management, Inc. SEI Global Capital Vice President, Assistant Secretary Investments, Inc. SEI Primus Holding Corp. Vice President, Assistant Secretary
57
NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ------------------------------------ ------------------------------------ ------------------------------------ SEI Investments Mutual Fund Services Vice President, Assistant Secretary SEI Investments Fund Management Vice President, Assistant Secretary SEI Venture Capital, Inc. Vice President, Assistant Secretary Mark S. Wilson -- -- Vice President Wayne M. Withrow SEI Investments Senior Vice President Senior Vice President Distribution Co. SEI Investments Company Executive Vice President, Chief Investment Officer SEI Investments Mutual Fund Services Senior Vice President SEI Investments Fund Management Senior Vice President John D. Anderson SEI Investments Distribution Co. Vice President, Managing Director Vice President, Managing Director Scott W. Dellorfano SEI Investments Distribution Co. Vice President, Managing Director Vice President, Managing Director Scott C. Fanatico SEI Investments Distribution Co. Vice President, Managing Director Vice President, Managing Director Steven A. Gardner SEI Investments Distribution Co. Vice President, Managing Director Vice President, Managing Director Bridget Jensen SEI Investments Distribution Co. Vice President Vice President SEI Investments Mutual Funds Vice President Services SEI Investments Fund Management Vice President John Kirk SEI Investments Distribution Co. Vice President, Managing Director Vice President, Managing Director Alan H. Lauder SEI Investments Distribution Co. Vice President Vice President SEI Global Investments Corp. Vice President
58
NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ------------------------------------ ------------------------------------ ------------------------------------ SEI Investments (South Africa) Director Limited Paul Lonergan SEI Investments Distribution Co. Vice President, Managing Director Vice President, Managing Director Ellen Marquis SEI Investments Global (Cayman), Vice President Vice President Limited Sherry Kajdan Vetterlein SEI Investments Company Vice President, Assistant Secretary Vice President, Assistant Secretary SEI Investments Distribution Co. Vice President, Assistant Secretary SEI Investments, Inc. Vice President, Assistant Secretary SEI Ventures, Inc. Vice President, Assistant Secretary SEI Investments Developments, Inc. Vice President, Assistant Secretary SEI Insurance Group, Inc. Vice President, Assistant Secretary SEI Funds, Inc. Vice President, Assistant Secretary SEI Global Investments Corp. Vice President, Assistant Secretary SEI Advanced Capital Vice President, Assistant Secretary Management, Inc. SEI Primus Holding Corp. Vice President, Assistant Secretary SEI Global Capital Investments, Inc. Vice President, Assistant Secretary SEI Investments Mutual Funds Vice President, Assistant Secretary Services SEI Investments Fund Management Vice President, Assistant Secretary SEI Venture Capital, Inc. Vice President, Assistant Secretary William E. Zitelli, Jr. SEI Investments Company Vice President, Assistant Secretary Vice President, Assistant Secretary
59
NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ------------------------------------ ------------------------------------ ------------------------------------ SEI Investments Distribution Co. Vice President, Assistant Secretary SEI Investments, Inc. Vice President, Assistant Secretary SEI Ventures, Inc. Vice President, Assistant Secretary SEI Investments Developments, Inc. Vice President, Assistant Secretary SEI Insurance Group, Inc. Vice President, Assistant Secretary SEI Funds, Inc. Vice President, Assistant Secretary SEI Global Investments Corp. Vice President, Assistant Secretary SEI Advanced Capital Vice President, Assistant Secretary Management, Inc. SEI Primus Holding Corp. Vice President, Assistant Secretary SEI Global Capital Investments, Inc. Vice President, Assistant Secretary SEI Investments Mutual Funds Vice President, Assistant Secretary Services SEI Investments Fund Management Vice President, Assistant Secretary SEI Venture Capital, Inc. Vice President, Assistant Secretary
SG PACIFIC ASSET MANAGEMENT, INC. SG Pacific Asset Management, Inc. ("SG Pacific") is a sub-adviser for the Registrant's SEI VP Emerging Markets Equity Fund. The principal business address of SG Pacific is 560 Lexington Avenue, New York, New York 10022. SG Pacific is an investment adviser registered under the Advisers Act.
NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ------------------------------------ ------------------------------------ ------------------------------------ Tokuo Ukon SG Yamaichi--Asset Management Co., Director, President, CEO Director Ltd. Akio Mizuta Yamaichi DAE Fund Director President and CEO
60 SGY ASSET MANAGEMENT (SINGAPORE) LIMITED SGY Asset Management (Singapore) Limited ("SGY") is a sub-adviser for the Registrant's SEI VP Emerging Markets Equity Fund. The principal address of SGY is 80 Robinson Road #13-03, Singapore, 068906. SGY is an investment adviser registered under the Advisers Act.
NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ------------------------------------ ------------------------------------ ------------------------------------ Marco Sau Kwan Wong -- -- Director, CIO Winson Kwan Ming Fong -- -- Senior Portfolio Manager Laurent Michel Bertiau Societe Generale Asset Management Director, CEO Managing Director, CEO (Asia) Ltd., Singapore Akio Mizuta -- -- Director, COO Phillippe Collas -- -- Director Tokuo Ukon -- -- Director Christian D'allest Director
SHENKMAN CAPITAL MANAGEMENT, INC. Shenkman Capital Management, Inc. ("Shenkman") is a sub-adviser for the Registrant's SEI VP High Yield Bond Fund. The principal business address of Shenkman is 461 Fifth Avenue, New York, New York 10017-6283. Shenkman is a registered investment adviser under the Advisers Act.
NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ------------------------------ ------------------------------ ------------------------------ Mark Ronald Shenkman -- -- President, Director Albert Fuss International Asset Chairman Director Management, Ltd. Victor M. Rosenzweig Olshan, Grundman, Frome & Partner Director Rosenzweig, LLP (law firm) Frank X. Whitley -- -- Executive Vice President Mark J. Flanagan -- -- Senior Vice President, Director of Credit Research Richard H. Weinstein -- -- Senior Vice President & General Counsel
61
NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ------------------------------ ------------------------------ ------------------------------ Robert Stricker -- -- Senior Vice President, Director of Credit Research
STERLING CAPITAL MANAGEMENT Sterling Capital Management ("Sterling") is a sub-adviser for the Registrant's SEI VP Small Cap Value Fund. The principal business address of Sterling is One Wachovia Center, 301 College Street, Suite 3200, Charlotte, North Carolina 28202. Sterling is a registered investment adviser under the Advisers Act.
NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ----------------------------- ----------------------------- ----------------------------- Mark Whittaker Whalen -- -- President & Managing Director David Michael Ralston -- -- CIO & Managing Director Alexander Worth McAlister -- -- Managing Director Eduardo Alejandro Brea -- -- Managing Director Brian R. Walton -- -- Managing Director Robert Bridges -- -- Director Robert Clark -- -- Director Anthony Corallo -- -- Director Rosary Ezarsky -- -- Director Mary Weeks Fountain -- -- Director Mark Montgomery -- -- Director Kenneth Cotner -- -- Director, Chief Operating Officer James Davis -- -- Associate Director Michael McVicker -- -- Associate Director
62
NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ----------------------------- ----------------------------- ----------------------------- Cathy Sawyer -- -- Associate Director Patrick Rau -- -- Associate Director Russel Duckworth -- -- Associate Director Mitchell Kaczmarek -- -- Associate Director Jo Sisco -- -- Associate Director Mary Chaney -- -- Associate Director
STRATEGIC FIXED INCOME, LLC Strategic Fixed Income, LLC ("SFI") is a sub-adviser for the Registrant's SEI VP International Fixed Income Fund. The principal business address of SFI is 1001 Nineteenth Street North, Suite 1400, Arlington, Virginia 22209. SFI is an investment adviser registered under the Advisers Act.
NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ------------------------------------ ------------------------------------ ------------------------------------ Gobi Investment, Inc. -- -- Manager Strategic Investment Management -- -- (SIM) Member Kenneth A. Windheim -- -- President, Treasurer, CIO Patricia M. Arcoleo -- -- Vice President, Secretary, COO Gregory Barnett -- -- Director & Senior Portfolio Manager David Jallits -- -- Director & Senior Portfolio Manager
63 TRANSAMERICA INVESTMENT MANAGEMENT, LLC Transamerica Investment Management, LLC ("TIM") is a sub-adviser for the Registrant's SEI VP Large Cap Growth Fund. The principal business address of TIM is 1150 S. Olive St., 27th Floor, Los Angeles, California 90015. TIM is a registered investment adviser under the Advisers Act.
NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ------------------------------ ------------------------------ ------------------------------ Richard N. Latzer -- -- Manager Gary U. Rolle -- -- President, Manager Jeffrey S. Van Harte -- -- Senior Vice President, Manager Transamerica Investment -- -- Services, Inc. Owner John R. Raymond -- -- Manager Douglas C. Kolsrud -- -- Manager Patrick S. Baird -- -- Manager John C. Riazzi -- -- Chief Executive Officer Larry N. Norman -- -- Manager William T. Miller -- -- Chief Operating Officer, Manager
WALL STREET ASSOCIATES Wall Street Associates ("WSA") is a sub-advisor for the Registrant's SEI VP Small Cap Growth Fund. The principal business address of WSA is 1200 Prospect Street, Suite 100, La Jolla, California 92037. WSA is an investment advisor registered under the Advisers Act.
NAME AND POSITION WITH INVESTMENT ADVISER OTHER COMPANY POSITION WITH OTHER COMPANY ------------------------------- -------------------------------- -------------------------------- Richard S. Coons -- -- Director/Portfolio Manager William Jeffrey, III -- -- Director/Portfolio Manager Kenneth F. McCain -- -- Director/Portfolio Manager
64 WELLINGTON MANAGEMENT COMPANY, LLP Wellington Management Company, LLP ("Wellington Management") serves as an investment adviser for each of the SEI VP Prime Obligation and SEI VP Small Cap Growth Funds. The principal address of Wellington Management is 75 State Street, Boston, Massachusetts 02109. Wellington Management is an investment adviser registered under the Advisers Act.
NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ------------------------------ ------------------------------ ------------------------------ Kenneth Lee Abrams -- -- Partner Nicholas Charles Adams -- -- Partner Rand Lawrence Alexander -- -- Partner Deborah Louise Allinson Wellington Trust Company, NA Vice President Partner Steven C. Angeli -- -- Partner James Halsey Averill -- -- Partner John F. Averill Wellington Hedge Vice President Partner Management, Inc. Karl E. Bandtel Wellington Global Sr. Vice President Partner Administrator, Ltd. Wellington Global Holdings, Sr. Vice President Ltd. Wellington Hedge Sr. Vice President Management, Inc. Mark James Beckwith -- -- Partner James A. Bevilacqua Wellington Hedge Sr. Vice President Partner Management, Inc. Wellington Global Holdings, Vice President Ltd. Wellington Global Vice President Administrator, Ltd. Kevin J. Blake -- -- Partner William Nicholas Booth -- -- Partner
65
NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ------------------------------ ------------------------------ ------------------------------ Michael J. Boudens Wellington Global Sr. Vice President Partner Administrator, Ltd. Wellington Hedge Sr. Vice President Management, Inc. Paul Braverman Wellington Global Treasurer Partner Administrator, Ltd. Wellington Global Holdings, Treasurer Ltd. Wellington Hedge Treasurer Management, Inc. Wellington International Director Management Company Pte Ltd. Wellington Management Global Treasurer Holdings, Ltd. Wellington Management Partner & CFO International, LLP Wellington Sales Corporation President and Treasurer Wellington Trust Company, NA Vice President and Treasurer/ Cashier Robert A. Bruno -- -- Partner Maryann Evelyn Carroll -- -- Partner William R.H. Clark Wellington International Managing Director Partner Management Company Pte Ltd. Pamela Dippel Wellington Trust Company, NA Vice President Partner Scott M. Elliott -- -- Partner Robert Lloyd Evans -- -- Partner Lisa de la Fuente Finkel Wellington Global Sr. Vice President & Director Partner Administrator, Ltd. Wellington Global Holdings, Director Ltd. Wellington Hedge Sr. Vice President Management, Inc. Wellington Luxembourg S.C.A. Supervisory Board
66
NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ------------------------------ ------------------------------ ------------------------------ Wellington Management Global Director Holdings, Ltd. Wellington Sales Corporation Sr. Vice President & Director Mark T. Flaherty Wellington Trust Company, NA Vice President Partner Charles Townsend Freeman -- -- Partner Laurie Allen Gabriel Wellington Global Sr. Vice President Managing Partner Administrator, Ltd. Wellington Hedge Sr. Vice President & Director Management, Inc. Wellington Trust Company, NA Vice President John Herrick Gooch Wellington Global Director Partner Administrator, Ltd. Wellington Global Holdings, Director Ltd. Wellington Hedge President Management, Inc. Wellington Management Global Director Holdings, Ltd. Wellington Management Partner International, LLP Wellington Trust Company, NA Vice President & Director Nicholas Peter Greville Wellington Global Sr. Vice President Partner Administrator, Ltd. Wellington International Director Management Company Pte Ltd. Wellington Management Partner International, LLP Paul J. Hamel Wellington Trust Company, NA Vice President Partner Lucius Tuttle Hill, III -- -- Partner Jean M. Hynes -- -- Partner Paul David Kaplan Wellington Global Director Partner Administrator, Ltd.
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NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ------------------------------ ------------------------------ ------------------------------ Wellington Global Holdings, Director Ltd. Wellington Management Global Director Holdings, Ltd. Lorraine A. Keady Wellington Hedge Sr. Vice President Partner Management, Inc. Wellington Trust Company, NA Vice President, Trust Officer John Charles Keogh Wellington Trust Company, NA Vice President Partner George Cabot Lodge, Jr. Wellington Global Sr. Vice President Partner Administrator, Ltd. Wellington Hedge Sr. Vice President Management, Inc. Nancy Therese Lukitsh Wellington Global Sr. Vice President Partner Administrator, Ltd. Wellington Hedge Sr. Vice President Management, Inc. Wellington Trust Company, NA Vice President & Director Mark Thomas Lynch -- -- Partner Mark D. Mandel -- -- Partner Christine Smith Manfredi Wellington Global Sr. Vice President Partner Administrator, Ltd. Wellington Global Holdings, Sr. Vice President Ltd. Wellington Hedge Sr. Vice President Management, Inc. Wellington Trust Company, NA Vice President Earl Edward McEvoy -- -- Partner Duncan Mathieu McFarland Wellington Global Director Managing Partner Administrator, Ltd. Wellington Global Holdings, Director Ltd. Wellington Hedge Chairman & Director Management, Inc.
68
NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ------------------------------ ------------------------------ ------------------------------ Wellington International Director Management Company Pte Ltd. Wellington Management Global Director Holdings, Ltd. Wellington Management Partner International, LLP Wellington Trust Company, NA Vice President & Director Paul Mulford Mecray III -- -- Partner Matthew Edward Megargel -- -- Partner James Nelson Mordy -- -- Partner Diane Carol Nordin Wellington Global Sr. Vice President Partner Administrator, Ltd. Wellington Hedge Sr. Vice President Management, Inc. Stephen T. O'Brien -- -- Partner Andrew S. Offit -- -- Partner Edward Paul Owens -- -- Partner Saul Joseph Pannell -- -- Partner Thomas Louis Pappas -- -- Partner Jonathan Martin Payson Wellington Global Chairman & Director Partner Administrator, Ltd. Wellington Global Holdings, Chairman & Director Ltd. Wellington Management Global Chairman & Director Holdings, Ltd. Wellington Sales Corporation Sr. Vice President Wellington Trust Company, NA President, Chairman of the Board, Director Philip H. Perelmuter -- -- Partner
69
NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ------------------------------ ------------------------------ ------------------------------ Robert Douglas Rands -- -- Partner Eugene Edward Record, Jr. Wellington Trust Company, NA Vice President Partner James Albert Rullo Partner John Robert Ryan Wellington Hedge Director Managing Partner Management, Inc. Joseph Harold Schwartz -- -- Partner James H. Shakin -- -- Partner Theodore Shasta -- -- Partner Binkley Calhoun Shorts -- -- Partner Scott E. Simpson -- -- Partner Trond Skramstad -- -- Partner Catherine Anne Smith -- -- Partner Stephen Albert Soderberg -- -- Partner Eric Stromquist -- -- Partner Brendan James Swords Wellington Global President & Director Partner Administrator, Ltd. Wellington Global Holdings, President & Director Ltd. Wellington Hedge Sr. Vice President Management, Inc. Wellington Management Global President & Director Holdings, Ltd. Harriett Tee Taggart -- -- Partner Perry Marques Traquina -- -- Partner Gene Roger Tremblay -- -- Partner
70
NAME AND POSITION WITH INVESTMENT ADVISER NAME OF OTHER COMPANY CONNECTION WITH OTHER COMPANY ------------------------------ ------------------------------ ------------------------------ Michael Aaron Tyler -- -- Partner Mary Ann Tynan Wellington Luxembourg S.C.A. Supervisory Board Partner Wellington Management Partner & Compliance Officer International, LLP Wellington Sales Corporation Sr. Vice President, Clerk & Director Wellington Trust Company, NA Vice President & Trust Officer Nilesh P. Undavia Partner Wellington Global Holdings, Vice President Ltd. Clare Villari -- -- Partner Ernst Hans von Metzsch Wellington Global Sr. Vice President Partner Administrator, Ltd. Wellington Global Holdings, Sr. Vice President Ltd. Wellington Hedge Sr. Vice President Management, Inc. James Leland Walters Wellington Global Deputy Chairman & Director Partner Administrator, Ltd. Wellington Global Holdings, Deputy Chairman & Director Ltd. Wellington International Director Management Company Pte Ltd. Wellington Luxembourg S.C.A. Supervisory Board Wellington Management Global Deputy Chairman, Sr. Vice Holdings, Inc. President & Director Wellington Sales Corporation Sr. Vice President, Assistant Clerk & Director Wellington Trust Company, NA Trust Counsel & Director Kim Williams -- -- Partner Itsuki Yamashita Wellington International Sr. Managing Director Partner Management Company Pte Ltd.
71 WESTERN ASSET MANAGEMENT COMPANY Western Asset Management Company ("Western Asset") is a sub-adviser for the Registrant's SEI VP Core Fixed Income Fund. The principal business address of Western Asset is 117 East Colorado Boulevard, Pasadena, California 91105. Western Asset is an investment adviser registered under the Advisers Act.
NAME AND POSITION CONNECTION WITH WITH INVESTMENT ADVISER NAME OF COMPANY OTHER COMPANY ----------------------------- ----------------------------- ----------------------------- Legg Mason, Inc. -- -- Sole Shareholder Ilene Schiowitz Harker -- -- Secretary, Director of Compliance & Controls James William -- -- Hirschmann III Director, President & CEO Stephen Kenneth Leech -- -- CIO Stephen A. Walsh -- -- Deputy Chief Investment Officer Edward Albert Taber III Legg Mason, Inc. Senior Executive Vice Director President Bruce Daniel Alberts -- -- Chief Financial Officer Randolph L. Kohn -- -- Director of Global Client Services Timothy Charles Scheve Legg Mason Wood Walker, Inc. Senior Executive Vice Director President Legg Mason Wood Walker, Inc. Senior Executive Vice President, Director
ITEM 27. PRINCIPAL UNDERWRITERS: (a) Furnish the name of each investment company (other than the Registrant) for which each principal underwriter currently distributing the securities of the Registrant also acts as a principal underwriter, distributor or investment adviser. Registrant's distributor, SEI Investments Distribution Co. (the "Distributor"), acts as distributor for: SEI Daily Income Trust July 15, 1982 SEI Liquid Asset Trust November 29, 1982 SEI Tax Exempt Trust December 3, 1982 SEI Index Funds July 10, 1985 SEI Institutional Managed Trust January 22, 1987 SEI Institutional International Trust August 30, 1988 The Advisors' Inner Circle Fund November 14, 1991 STI Classic Funds May 29, 1992
72 The Arbor Fund January 28, 1993 Bishop Street Funds January 27, 1995 STI Classic Variable Trust August 18, 1995 SEI Asset Allocation Trust April 1, 1996 SEI Institutional Investments Trust June 14, 1996 HighMark Funds February 15, 1997 Armada Funds March 8, 1997 Expedition Funds June 9, 1997 Oak Associates Funds February 27, 1998 The Nevis Fund, Inc. June 29, 1998 CNI Charter Funds April 1, 1999 The Armada Advantage Fund May 1, 1999 Amerindo Funds Inc. July 13, 1999 Friends Ivory Funds December 16, 1999 iShares Inc. January 28, 2000 iShares Trust April 25, 2000 Pitcairn Funds August 1, 2000 First Focus Funds, Inc. October 1, 2000 JohnsonFamily Funds, Inc. November 1, 2000 The MDL Funds January 24, 2001 Causeway Capital Management Trust September 20, 2001
The Distributor provides numerous financial services to investment managers, pension plan sponsors, and bank trust departments. These services include portfolio evaluation, performance measurement and consulting services ("Funds Evaluation") and automated execution, clearing and settlement of securities transactions ("MarketLink"). (b) Furnish the Information required by the following table with respect to each director, officer or partner of each principal underwriter named in the answer to Item 21 of Part B. Unless otherwise noted, the business address of each director or officer is Oaks, PA 19456.
POSITION AND OFFICE POSITIONS AND OFFICES NAME WITH UNDERWRITER WITH REGISTRANT ------------------------ ---------------------------------------- ------------------------ Alfred P. West, Jr. Director, Chairman of the Board of -- Directors Carmen V. Romeo Director -- Mark J. Held President & Chief Operating Officer -- Richard B. Lieb Director, Executive Vice President -- Dennis J. McGonigle Executive Vice President -- Robert M. Silvestri Chief Financial Officer & Treasurer -- Carl A. Guarino Senior Vice President -- Jack May Senior Vice President -- Kevin P. Robins Senior Vice President -- Wayne M. Withrow Senior Vice President -- Patrick K. Walsh Senior Vice President -- Robert Aller Vice President -- John D. Anderson Vice President & Managing Director -- Timothy D. Barto Vice President & Assistant Secretary Vice President & Assistant Secretary Todd Cipperman Senior Vice President & General Counsel Vice President & Assistant Secretary Robert Crudup Vice President & Managing Director -- Richard A. Deak Vice President & Assistant Secretary
73
POSITION AND OFFICE POSITIONS AND OFFICES NAME WITH UNDERWRITER WITH REGISTRANT ------------------------ ---------------------------------------- ------------------------ Scott W. Dellorfano Vice President & Managing Director -- Barbara Doyne Vice President -- John C. Munch Vice President & Assistant Secretary Vice President & Assistant Secretary Jeff Drennen Vice President -- Scott C. Fanatico Vice President & Managing Director -- Vic Galef Vice President & Managing Director -- Steven A. Gardner Vice President & Managing Director -- Lydia A. Gavalis Vice President & Assistant Secretary Vice President & Assistant Secretary Greg Gettinger Vice President & Assistant Secretary -- Sherry K. Vetterlein Vice President & Assistant Secretary Vice President & Assistant Secretary Kathy Heilig Vice President -- Jeff Jacobs Vice President -- Bridget Jensen Vice President Samuel King Vice President -- John Kirk Vice President & Managing Director -- Kim Kirk Vice President & Managing Director -- John Krzeminski Vice President & Managing Director -- Karen LaTourette Secretary Alan H. Lauder Vice President -- Paul Lonergan Vice President & Managing Director -- Ellen Marquis Vice President -- Rob Redican Vice President -- Maria Rinehart Vice President -- Kathryn L. Stanton Vice President -- William E. Zitelli, Jr. Vice President & Assistant Secretary Vice President & Assistant Secretary Carolyn McLaurin Vice President & Managing Director -- Christine M. McCullough Vice President & Assistant Secretary Vice President & Assistant Secretary Mark Nagle Vice President -- Joanne Nelson Vice President -- Rob Redican Vice President -- Maria Rinehart Vice President -- Steve Smith Vice President -- Daniel Spaventa Vice President -- Lori L. White Vice President & Assistant Secretary -- William E. Zitelli, Jr. Vice President & Assistant Secretary Vice President & Assistant Secretary
74 ITEM 28. LOCATION OF ACCOUNTS AND RECORDS. Books or other documents required to be maintained by Section 31(a) of the Investment Company Act of 1940, and the rules promulgated thereunder, are maintained as follows: (a) With respect to Rules 31a-1(a); 31a-1(b)(1); (2)(a) and (b); (3); (6); (8); (12); and 31a-1(d), the required books and records will be maintained at the offices of Registrant's Custodian: First Union National Bank Broad & Chestnut Streets P.O. Box 7618 Philadelphia, Pennsylvania 19101 State Street Bank and Trust Company 225 Franklin Street Boston, Massachusetts 02110 (b)/(c) With respect to Rules 31a-1(a); 31a-1(b)(1),(4); (2)(C) and (D); (4); (5); (6); (8); (9); (10); (11); and 31a-1(f), the required books and records are maintained at the offices of Registrant's Administrator: SEI Investments Fund Management Oaks, Pennsylvania 19456 (c) With respect to Rules 31a-1(b)(5), (6), (9) and (10) and 31a-1(f), the required books and records are maintained at the principal offices of the Registrant's Advisers: Alliance Capital Management L.P. 1345 Avenue of the Americas New York, New York 10105 Artisan Partners Limited Partnership 1000 N. Water Street Milwaukee, Wisconsin 53202 Barclays Global Fund Advisors 45 Fremont Street San Francisco, CA 94105 BlackRock Financial Management, Inc. 40 East 52nd Street New York, New York 10022 BlackRock International, Ltd. 40 Torpichen Street Edinburgh, EH3 8JB Scotland, U.K. The Boston Company Asset Management, LLC One Boston Place Boston, MA 02108-4402 Capital Guardian Trust Company 333 South Hope Street, 55th Floor Los Angeles, CA 90071 Chartwell Investment Partners 1235 Westlakes Drive, Suite 330 Berwyn, PA 19312 75 Credit Suisse Asset Management LLC 466 Lexington Avenue New York, New York 10022 David J. Greene and Company, LLC 599 Lexington Avenue, 12th Floor New York, New York 10022 Deutsche Asset Management Inc. 280 Park Avenue New York, New York 10017 Duncan-Hurst Capital Management Inc. 4365 Executive Drive, Suite 1520 San Diego, CA 92121 Iridian Asset Management 276 Post Road West Westport, CT 06880-4705 LSV Asset Management 200 W. Madison Street Chicago, Illinois 60606 Mazama Capital Management, Inc. One Southwest Columbia Street, Suite 1860 Portland, Oregon 97258 McKinley Capital Management, Inc. 3301 C Street, Suite 500 Anchorage, Alaska 99503 Mellon Bond Associates, LLP Mellon Bank Center 1735 Market Street Philadelphia, PA 19101-7899 Montag & Caldwell Inc. 3455 Peachtree Rd. NE Ste 1200 Atlanta, GA 30326-3248 Morgan Stanley Investment Management Inc. 1221 Avenue of the Americas New York, New York 10020 Nicholas-Applegate Capital Management 600 West Broadway, 29th Floor San Diego, California 92101 Nomura Corporate Research and Asset Management 2 World Financial Center Building B, 25th Floor New York, New York 10281-1198 Oechsle International Advisors, LLC One International Place 23rd Floor Boston, Massachusetts 02110 76 Peregrine Capital Management Inc. LaSalle Plaza 800 LaSalle Avenue, Suite 1850 Minneapolis, Minnesota 55402-2018 Robert W. Baird & Co., Incorporated 777 E. Wisconsin Avenue Milwaukee, Wisconsin 53202 RS Investment Management, L.P. 388 Market Street Suite 200 San Francisco, California 94104 SEI Investments Management Corporation One Freedom Valley Drive Oaks, PA 19456 Salomon Brothers Asset Management Inc 388 Greenwich Street New York, New York 10013 Sanford C. Bernstein & Co., LLC 1345 Avenue of the Americas New York, NY 10105 Sawgrass Asset Management, LLC 1579 The Greens Way, Suite 20 Jacksonville, FL 32350 Schroder Investment Management North America Inc. 875 Third Avenue, 22nd Floor New York, NY 10020 Security Capital Research and Management Incorporated 11 South LaSalle Street, 2nd Floor Chicago, Illinois 60603 SG Pacific Asset Management, Inc. /SGY Asset Management (Singapore) Ltd. 560 Lexington Ave. New York, New York 10022 Shenkman Capital Management, Inc. 461 Fifth Avenue New York, New York 10017 Sterling Capital Management One First Union Center 301 College Street, Suite 3200 Charlotte, North Carolina 28202 Strategic Fixed Income, LLC 1001 Nineteenth Street North Suite 1400 Arlington, VA 22209 Transamerica Investment Management, LLC 1150 S. Olive St., 27th Floor Los Angeles, California 90015 77 Wall Street Associates 1200 Prospect Street, Suite 100 La Jolla, CA 92037 Wellington Management Company, LLP 75 State Street Boston, MA 02109 Western Asset Management Company 117 East Colorado Boulevard, 6th Floor Pasadena, CA 91105 ITEM 29. MANAGEMENT SERVICES: None ITEM 30. UNDERTAKINGS: None 78 SIGNATURES Pursuant to the requirements of the Securities Act of 1933, as amended, and the Investment Company Act of 1940, as amended, the Registrant certifies that it meets all of the requirements for effectiveness of this Registration Statement pursuant to Rule 485(b) under the Securities Act of 1933 and has duly caused this Post-Effective Amendment No. 4 to Registration Statement No. 333-70013 to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Oaks, Commonwealth of Pennsylvania on the 30th day of April, 2002. SEI INSURANCE PRODUCTS TRUST By: /s/ EDWARD D. LOUGHLIN --------------------------------------- Edward D. Loughlin PRESIDENT & CHIEF EXECUTIVE OFFICER Pursuant to the requirements of the Securities Act of 1933, this Amendment to the Registration Statement has been signed below by the following persons in the capacity on the date(s) indicated. * ------------------------------ Trustee April 30, 2002 William M. Doran * ------------------------------ Trustee April 30, 2002 F. Wendell Gooch * ------------------------------ Trustee April 30, 2002 George J. Sullivan, Jr. * ------------------------------ Trustee April 30, 2002 James M. Storey * ------------------------------ Trustee April 30, 2002 Robert A. Nesher * ------------------------------ Trustee April 30, 2002 Rosemarie B. Greco /s/ EDWARD D. LOUGHLIN ------------------------------ President & Chief April 30, 2002 Edward D. Loughlin Executive Officer /s/ JAMES R. FOGGO ------------------------------ Controller & Chief April 30, 2002 James R. Foggo Financial Officer *By: /s/ EDWARD D. LOUGHLIN ------------------------- Edward D. Loughlin ATTORNEY-IN-FACT EXHIBIT INDEX
EXHIBIT NAME -------------- ----------------------------------------------------------- Ex-99.a Agreement and Declaration of Trust of the Registrant, dated December 14, 1998, is incorporated by reference to Exhibit (a) of Registrant's Registration Statement, filed December 31, 1998. Ex-99.b By-Laws of the Registrant, is incorporated by reference to Exhibit (b) of Registrant's Registration Statement, filed December 31, 1998. Ex-99.B(b)(2) Amended By-Laws dated February 20, 2001 are incorporated by reference to exhibit (b)(2) of Post-Effective Amendment No. 3 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 30, 2001. Ex-99.(c) Not Applicable. Ex-99.(d)(1) Investment Advisory Agreement between the Registrant and SEI Investments Management Corporation ("SIMC") is incorporated by reference to exhibit (d)(1) of Pre-Effective Amendment No. 1 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on October 12, 1999. Ex-99.(d)(2) Form of Investment Sub-Advisory Agreements between SIMC and [Sub-Advisor] is incorporated by reference to exhibit (d)(2) of Pre-Effective Amendment No. 1 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on October 12, 1999. (d)(3) Investment Sub-Advisory Agreement between SIMC and Alliance Capital Management, L.P. with respect to the SEI VP Large Cap Growth Fund is incorporated by reference to exhibit (d)(3) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (d)(4) Investment Sub-Advisory Agreement between SIMC and Capital Guardian Trust Company with respect to the SEI VP International Equity Fund is incorporated by reference to exhibit (d)(4) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (d)(5) Investment Sub-Advisory Agreement between SIMC and Credit Suisse Asset Management, LLC with respect to the SEI VP High Yield Bond Fund is incorporated by reference to exhibit (d)(5) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (d)(6) Investment Sub-Advisory Agreement between SIMC and LSV Asset Management, L.P. with respect to the SEI VP Large Cap Value and SEI VP Small Cap Value Funds is incorporated by reference to exhibit (d)(6) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000.
EXHIBIT NAME -------------- ----------------------------------------------------------- (d)(7) Investment Sub-Advisory Agreement between SIMC and Mellon Equity Associates, LLP with respect to the SEI VP Large Cap Value Fund is incorporated by reference to exhibit (d)(7) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (d)(8) Investment Sub-Advisory Agreement between SIMC and Mellon Equity Associates, LLP with respect to the SEI VP Small Cap Value Fund is incorporated by reference to exhibit (d)(8) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (d)(9) Investment Sub-Advisory Agreement between SIMC and Nicholas-Applegate Capital Management with respect to the SEI VP Emerging Markets Equity and SEI VP Small Cap Value Funds is incorporated by reference to exhibit (d)(9) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (d)(10) Investment Sub-Advisory Agreement between SIMC and Oechsle International Advisors, LLC with respect to the SEI VP International Equity Fund is incorporated by reference to exhibit (d)(10) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (d)(11) Investment Sub-Advisory Agreement between SIMC and Provident Investment Counsel, Inc. With respect to the SEI VP Large Cap Growth Fund is incorporated by reference to exhibit (d)(11) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (d)(12) Investment Sub-Advisory Agreement between SIMC and Robert W. Baird & Co., Incorporated with respect to the SEI VP Core Fixed Income Fund is incorporated by reference to exhibit (d)(12) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (d)(13) Investment Sub-Advisory Agreement between SIMC and Sawgrass Asset Management, L.L.C. with respect to the SEI VP Small Cap Growth Fund is incorporated by reference to exhibit (d)(13) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (d)(14) Investment Sub-Advisory Agreement between SIMC and Schroder Investment Management North America Inc. with respect to the SEI VP Emerging Market Equity Fund is incorporated by reference to exhibit (d)(14) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000.
EXHIBIT NAME -------------- ----------------------------------------------------------- (d)(15) Investment Sub-Advisory Agreement between SIMC and Strategic Fixed Income, LLC with respect to the SEI VP International Fixed Income Fund is incorporated by reference to exhibit (d)(15) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (d)(16) Investment Sub-Advisory Agreement between SIMC and Wall Street Associates with respect to the SEI VP Small Cap Growth Fund is incorporated by reference to exhibit (d)(16) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (d)(17) Investment Sub-Advisory Agreement between SIMC and Wellington Management Company, LLP with respect to the SEI VP Prime Obligation Fund is incorporated by reference to exhibit (d)(17) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (d)(18) Investment Sub-Advisory Agreement between SIMC and Western Asset Management Company with respect to the SEI VP Core Fixed Income Fund is incorporated by reference to exhibit (d)(18) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (d)(19) Investment Sub-Advisory Agreement between SIMC and Salomon Brothers Asset Management Inc with respect to the SEI VP Emerging Markets Debt Fund is incorporated by reference to exhibit (d)(19) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (d)(20) Form of Investment Sub-Advisory Agreement between SIMC and Chartwell Investment Partners with respect to the SEI VP Small Cap Value Fund is incorporated by reference to exhibit (d)(20) of Post-Effective Amendment No. 3 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 30, 2001. (d)(21) The Investment Sub-Advisory Agreement between SIMC and Duncan-Hurst Capital Management, Inc. with respect to the SEI VP Large Cap Growth Fund is incorporated by reference to exhibit (d)(21) of Post-Effective Amendment No. 3 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 30, 2001. (d)(22) The Investment Sub-Advisory Agreement between SIMC and Iridian Asset Management, LLC with respect to the SEI VP Large Cap Value Fund is incorporated by reference to exhibit (d)(22) of Post-Effective Amendment No. 3 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 30, 2001.
EXHIBIT NAME -------------- ----------------------------------------------------------- (d)(23) Form of Investment Sub-Advisory Agreement between SIMC and McKinley Capital Management, Inc. with respect to the SEI VP Small Cap Growth Fund is incorporated by reference to exhibit (d)(25) of Post-Effective Amendment No. 3 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 30, 2001. (d)(24) The Investment Sub-Advisory Agreement between SIMC and Peregrine Capital Management Inc. with respect to the SEI VP Large Cap Growth Fund is incorporated by reference to exhibit (d)(26) of Post-Effective Amendment No. 3 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 30, 2001. (d)(25) Form of Investment Sub-Advisory Agreement between SIMC and Sanford C. Bernstein & Co., LLC with respect to the SEI VP Large Cap Value Fund is incorporated by reference to exhibit (d)(27) of Post-Effective Amendment No. 3 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 30, 2001. (d)(26) The Investment Sub-Advisory Agreement between SIMC and Sterling Capital Management with respect to the SEI VP Small Cap Value Fund is incorporated by reference to exhibit (d)(28) of Post-Effective Amendment No. 3 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 30, 2001. (d)(27) Form of Investment Sub-Advisory Agreement between SIMC and The Boston Company Asset Management, LLC with respect to the SEI VP Emerging Markets Equity Fund is incorporated by reference to exhibit (d)(29) of Post-Effective Amendment No. 3 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 30, 2001. (d)(28) The Investment Sub-Advisory Agreement between SIMC and Montag & Caldwell Inc. with respect to SEI VP Large Cap Growth Fund is herewith. (d)(29) Form of Investment Sub-Advisory Agreement between SIMC and Wellington Management Company, LLP with respect to the SEI VP Small Cap Growth Fund is filed herewith. (d)(30) Investment Sub-Advisory Agreement between SIMC and Barclays Global Fund Advisors with respect to the SEI VP S&P 500 Index Fund is filed herewith. (d)(31) Investment Sub-Advisory Agreement between SIMC and Transamerica Investment Management, LLC with respect to the SEI VP Large Cap Growth Fund is filed herewith. (d)(32) Investment Sub-Advisory Agreement between SIMC and David J. Greene & Co., LLC with respect to the SEI VP Small Cap Value Fund is filed herewith. (d)(33) Investment Sub-Advisory Agreement between SIMC and Deutsche Asset Management Inc. with respect to the SEI VP Large Cap Value Fund is filed herewith.
EXHIBIT NAME -------------- ----------------------------------------------------------- (d)(34) Form of Investment Sub-Advisory Agreement between SIMC and Shenkman Capital Management, Inc. with respect to the SEI VP High Yield Bond Fund is filed herewith. Ex-99.(e) Distribution Agreement between the Registrant and SEI Investments Distribution Co. is incorporated by reference to exhibit (e) of Pre-Effective Amendment No. 1 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on October 12, 1999. Ex-99.(f) Not Applicable. Ex-99.(g)(1) Form of Custodian Agreement between the Registrant and First Union National Bank is incorporated by reference to exhibit (g)(1) of Pre-Effective Amendment No. 1 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on October 12, 1999. Ex-99.(g)(2) Custodian Agreement between the Registrant and State Street Bank and Trust Company is incorporated by reference to exhibit (g)(2) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. Ex-99.(h)(1) Administration Agreement between the Registrant and SEI Investments Fund Management is incorporated by reference to exhibit (h)(1) of Pre-Effective Amendment No. 1 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on October 12, 1999. Ex-99.(i) Opinion and Consent of counsel, Morgan, Lewis & Bockius LLP, is filed herewith. Ex-99.(j) Opinion and Consent of Independent Public Accountants, is filed herewith. Ex-99.(k) Not Applicable. Ex-99.(n) Not Applicable. (p)(1) The Code of Ethics for SEI Investments Company, as amended December 2000, is incorporated by reference to exhibit (p)(1) of Post-Effective Amendment No. 3 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 30, 2001. (p)(2) The Code of Ethics for SEI Insurance Products Trust is incorporated by reference to exhibit (p)(2) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (p)(3) The Code of Ethics for Alliance Capital Management L.P. is incorporated by reference to exhibit (p)(3) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000.
EXHIBIT NAME -------------- ----------------------------------------------------------- (p)(4) The Code of Ethics for Capital Guardian Trust Company is incorporated by reference to exhibit (p)(4) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (p)(5) The Code of Ethics for Credit Suisse Asset Management, LLC is incorporated by reference to exhibit (p)(5) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (p)(6) The Code of Ethics for LSV Asset Management, L.P. is incorporated by reference to exhibit (p)(6) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (p)(7) The Code of Ethics for Mellon Bond Associates, LLP is incorporated by reference to exhibit (p)(7) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (p)(8) The Code of Ethics for Nicholas-Applegate Capital Management is incorporated by reference to exhibit (p)(8) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (p)(9) The Code of Ethics for Oechsle International Advisors, LLC is incorporated by reference to exhibit (p)(9) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (p)(10) The Code of Ethics for Provident Investment Counsel, Inc. is incorporated by reference to exhibit (p)(15) of Post-Effective Amendment No. 35 to SEI Institutional Managed Trust's Registration Statement on Form N-1A (File No. 33-9504) filed with the SEC on July 3, 2000. (p)(11) The Code of Ethics for Robert W. Baird & Co., Incorporated is incorporated by reference to exhibit (p)(11) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (p)(12) The Code of Ethics for RS Investment Management, L.P. is incorporated by reference to exhibit (p)(12) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000.
EXHIBIT NAME -------------- ----------------------------------------------------------- (p)(13) The Code of Ethics for Salomon Brothers Asset Management Inc is incorporated by reference to exhibit (p)(13) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (p)(14) The Code of Ethics for Sanford C. Bernstein & Co., Inc. is incorporated by reference to exhibit (p)(14) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (p)(15) The Code of Ethics for Sawgrass Asset Management, LLC is incorporated by reference to exhibit (p)(15) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (p)(16) The Code of Ethics for Schroder Investment Management North America Inc. is incorporated by reference to exhibit (p)(16) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (p)(17) The Code of Ethics for Strategic Fixed Income, L.L.C. is incorporated by reference to exhibit (p)(17) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (p)(18) The Code of Ethics for Wall Street Associates is incorporated by reference to exhibit (p)(18) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (p)(19) The Code of Ethics for Wellington Management Company, LLP is incorporated by reference to exhibit (p)(19) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. (p)(20) The Code of Ethics for Western Asset Management Company is incorporated by reference to exhibit (p)(20) of Post-Effective Amendment No. 2 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 14, 2000. Ex-99.B(p)(21) The Code of Ethics for Chartwell Investment Partners is incorporated by reference to exhibit (p)(11) of Post-Effective Amendment No. 6 to SEI Institutional Investments Trust's Registration Statement on Form N-1A (File No. 33-58041) filed with the SEC on September 28, 2000.
EXHIBIT NAME -------------- ----------------------------------------------------------- Ex-99.B(p)(22) The Code of Ethics for Duncan-Hurst Capital Management, Inc. is incorporated by reference to exhibit (p)(29) of Post-Effective Amendment No. 36 of SEI Institutional Managed Trust's Registration Statement on Form N-1A (File No. 33-9504) filed with the SEC on January 29, 2001. Ex-99.B(p)(23) The Code of Ethics for Iridian Asset Management, LLC is incorporated by reference to exhibit (p)(30) of Post-Effective Amendment No. 36 to SEI Institutional Managed Trust's Registration Statement on Form N-1A (File No. 33-9504) filed with the SEC on January 29, 2001. Ex-99.B(p)(24) The Code of Ethics for McKinley Capital Management, Inc. is incorporated by reference to exhibit (p)(19) of Post-Effective Amendment No. 6 to SEI Institutional Investments Trust's Registration Statement on Form N-1A (File No. 33-58041) filed with the SEC on September 28, 2000. Ex-99.B(p)(25) The Code of Ethics for Peregrine Capital Management Inc. is incorporated by reference to exhibit (p)(31) of Post-Effective Amendment No. 36 of SEI Institutional Managed Trust's Registration Statement on Form N-1A (File No. 33-9504) filed with the SEC on January 29, 2001. Ex-99.B(p)(26) The Code of Ethics for Sterling Capital Management is incorporated by reference to exhibit (p)(32) of Post-Effective Amendment No. 36 of SEI Institutional Managed Trust's Registration Statement on Form N-1A (File No. 33-9504) filed with the SEC on January 29, 2001. Ex-99.B(p)(27) The Code of Ethics for The Boston Company Asset Management, LLC is incorporated by reference to exhibit (p)(8) of Post-Effective Amendment No. 6 of SEI Institutional Investments Trust's Registration Statement on Form N-1A (File No. 33-58041) filed with the SEC on September 28, 2000. (p)(28) The Code of Ethics for Barclays Global Fund Advisors is herein incorporated by reference to Exhibit (p)(42) of Post-Effective Amendment No. 9 to SEI Institutional Investments Trust's Registration Statement on (File Nos. 33-58041 and 811-7257) on Form N-1A filed with the SEC on March 29, 2002. (p)(29) The Code of Ethics for Montag & Caldwell Inc. is herein incorporated by reference to exhibit (p)(43) of Post-Effective Amendment No. 9 to SEI Institutional Investments Trust's Registration Statement (File Nos. 33-58041 and 811-7257) on Form N-1A filed with the SEC on March 29, 2002. (p)(30) The Code of Ethics for Transamerica Investment Management, LLC is herein incorporated by reference to exhibit (p)(41) of Post-Effective Amendment No. 7 to SEI Institutional Investments Trust's Registration Statement (File Nos. 33-58041 and 811-7257) on Form N-1A filed with the SEC on September 28, 2001.
EXHIBIT NAME -------------- ----------------------------------------------------------- (p)(31) The Code of Ethics for Artisan Partners Limited Partnership is herein incorporated by reference to exhibit (p)(4) of Post-Effective Amendment No. 33 to SEI Institutional Managed Trust's Registration Statement (File Nos. 33-9504 and 811-4878) on Form N-1A filed with the SEC on July 3, 2000. (p)(32) The Code of Ethics for BlackRock Financial Management, Inc. is herein incorporated by reference to exhibit (p)(6) of Post-Effective Amendment No. 37 to SEI Institutional Managed Trust's Registration Statement (File Nos. 33-9504 and 811-4878) on Form N-1A filed with the SEC on January 28, 2002. (p)(33) The Code of Ethics for BlackRock International, Ltd. is herein incorporated by reference to exhibit (p)(4) of Post-Effective Amendment No. 34 to SEI Institutional International Trust's Registration Statement (File Nos. 33-22821 and 811-5601) on Form N-1A filed with the SEC on January 28, 2002. (p)(34) The Code of Ethics for David J. Greene & Company, LLC is herein incorporated by reference to exhibit (p)(24) of Post-Effective Amendment No. 37 to SEI Institutional Managed Trust's Registration Statement (File Nos. 33-9504 and 811-4878) on Form N-1A filed with the SEC on January 28, 2002. (p)(35) The Code of Ethics for Deutsche Asset Management Inc. is herein incorporated by reference to exhibit (p)(36) of Post-Effective Amendment No. 7 to SEI Institutional Investments Trust's Registration Statement (File Nos. 33-58041 and 811-7257) on Form N-1A filed with the SEC on September 28, 2001. (p)(36) The Code of Ethics for Mazama Capital Management, Inc. is herein incorporated by reference to exhibit (p)(11) of Post-Effective Amendment No. 33 to SEI Institutional Managed Trust's Registration Statement (File Nos. 33-9504 and 811-4878) on Form N-1A filed with the SEC on July 3, 2000. (p)(37) The Code of Ethics for Morgan Stanley Investment Management Inc. is herein incorporated by reference to exhibit (p)(20) of Post-Effective Amendment No. 7 to SEI Institutional Investments Trust's Registration Statement (File Nos. 33-58041 and 811-7257) on Form N-1A filed with the SEC on September 28, 2001. (p)(38) The Code of Ethics for Nomura Corporate Research and Asset Management Inc. is herein incorporated by reference to exhibit (p)(14) of Post-Effective Amendment No. 33 to SEI Institutional Managed Trust's Registration Statement (File Nos. 33-9504 and 811-4878) on Form N-1A filed with the SEC on July 3, 2000. (p)(39) The Code of Ethics for Security Capital Research and Management Incorporated is herein incorporated by reference to exhibit (p)(19) of Post-Effective Amendment No. 33 to SEI Institutional Managed Trust's Registration Statement (File Nos. 33-9504 and 811-4878) on Form N-1A filed with the SEC on July 3, 2000.
EXHIBIT NAME -------------- ----------------------------------------------------------- (p)(40) The Code of Ethics for SG Pacific Asset Management, Inc. and SGY Asset Management (Singapore) Ltd. is herein incorporated by reference to exhibit (p)(12) of Post-Effective Amendment No. 30 to SEI Institutional International Trust's Registration Statement (File Nos. 33-22821 and 811-5601) on Form N-1A filed with the SEC on June 30, 2000. (p)(41) The Code of Ethics for Shenkman Capital Management, Inc. is herein incorporated by reference to exhibit (p)(38) of Post-Effective Amendment No. 7 to SEI Institutional Investments Trust's Registration Statement (File Nos. 33-58041 and 811-7257) on Form N-1A filed with the SEC on September 28, 2001. Ex-99.q Powers of Attorney for Robert A. Nesher, William M. Doran, James R. Foggo, F. Wendell Gooch, George J. Sullivan, Jr., James M. Storey, Rosemarie B. Greco and Edward D. Loughlin are incorporated by reference to exhibit (p)(1) of Post-Effective Amendment No. 3 to Registrant's Registration Statement on Form N-1A (File No. 333-70013) filed with the SEC on April 30, 2001.