UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
________
FORM N-CSR
________
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-22480
Adviser Managed Trust
(Exact name of registrant as specified in charter)
________
SEI Investments
One Freedom Valley Drive
Oaks, PA 19456
(Address of principal executive offices) (Zip code)
________
Timothy D. Barto, Esq.
SEI Investments
One Freedom Valley Drive
Oaks, PA 19456
(Name and address of agent for service)
Registrant's telephone number, including area code: 1-610-676-1000
Date of fiscal year end: July 31, 2023
Date of reporting period: July 31, 2023
Item 1. Reports to Stockholders.
July 31, 2023
ANNUAL REPORT
Adviser Managed Trust
❯ |
Diversified Equity Fund |
❯ |
Enhanced Fixed Income Fund |
TABLE OF CONTENTS
Letter to Shareholders | 1 |
Management Discussion and Analysis of Fund Performance | 6 |
Schedules of Investments | 8 |
Statements of Assets and Liabilities | 29 |
Statements of Operations | 30 |
Statements of Changes in Net Assets | 31 |
Financial Highlights | 32 |
Notes to Financial Statements | 33 |
Report of Independent Registered Public Accounting Firm | 47 |
Trustees and Officers of the Trust | 48 |
Disclosure of Fund Expenses | 52 |
Liquidity Risk Management Program | 53 |
Board of Trustees' Considerations in Approving the Advisory and Sub-Advisory Agreements | 54 |
Notice to Shareholders | 57 |
The Trust files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarter of each fiscal year on Form N-PORT. The Trust’s Forms N-PORT are available on the Commission’s website at http://www.sec.gov.
A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to portfolio securities, as well as information relating to how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, is available (i) without charge, upon request, by calling 1-800-DIAL-SEI; and (ii) on the Commission’s website at http://www.sec.gov.
LETTER TO SHAREHOLDERS (Unaudited)
JULY 31, 2023
To Our Shareholders:
During the one-year reporting period ending July 31, 2023, global financial markets gyrated in response to concerns about central bank monetary policy, the strength of the global economy, a crisis in the U.S. regional banking sector, and the politically charged U.S. debt-ceiling standoff.
The U.S. equity market experienced numerous periods of volatility as the Fed maintained its interest rate-hiking cycle for most of the reporting period in an effort to tame rising inflation. Headline inflation, as measured by the U.S. consumer-price index (“CPI”), decelerated during the one-year reporting period. The Fed raised the federal-funds rate 10 times between July 2022 and May 2023. The central bank left its benchmark rate unchanged in June, but then increased the federal-funds rate by 0.25% to a range of 5.25% to 5.50% following its meeting in late July.
In its announcement of the rate increase following its meeting in July, the Federal Open Market Committee (“FOMC”) commented, “The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. In support of these goals, the Committee decided to raise the target range for the federal funds rate to 5-1/4 to 5-1/2 percent. The Committee will continue to assess additional information and its implications for monetary policy. In determining the extent of additional policy firming that may be appropriate to return inflation to 2 percent over time, the Committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments.”
In early March 2023, the financial markets’ focus turned to the banking sector as two U.S.-based regional banks–Silicon Valley Bank (“SVB”) and Signature Bank–failed after depositors withdrew funds on fears regarding the valuation of the institutions’ bond portfolios. The Federal Deposit Insurance Corporation (“FDIC”) was appointed as receiver to SVB after the California Department of Financial Protection and Innovation– which oversees the operations of state-licensed financial institutions, including banks and credit unions–closed the bank. Occurring on the heels of the collapse of Silvergate Capital a few days earlier, SVB’s failure prompted investors to reconsider the safety of their positions across the banking industry. SVB is a unique entity, with a client base highly concentrated among startup, venture capital-backed companies. The deposits of the bank increased tremendously over the past few years and poor liquidity management of these assets appears to have been a significant contributor to the collapse. Both Silvergate Capital and Signature Bank, which was shut down by New York state regulators in mid-March, were closely aligned with the highly speculative cryptocurrency industry. In early May, U.S. regulators took control of California-based First Republic Bank. The California Department of Financial Protection and Innovation issued a statement announcing that it had taken over the bank and appointed the FDIC as receiver. The FDIC subsequently announced that it had accepted J.P. Morgan Chase Bank’s bid to “assume all deposits, including all uninsured deposits, and substantially all assets of First Republic Bank."
The administration of President Joe Biden and the Republican Party majority in the U.S. House of Representatives engaged in a heated debate about raising the U.S. government’s $31.4 trillion debt ceiling. The debt ceiling comprises the total amount of money that the U.S. government is authorized to borrow to meet its existing legal obligations, including Social Security and Medicare benefits, military salaries, interest on the national debt, tax refunds, and other payments. U.S. Treasury Secretary Janet Yellen had warned that the U.S. would no longer be able to meet its financial obligations as of early June. After numerous one-on-one discussions, Biden and Kevin McCarthy, who had been elected Speaker of the House of Representatives after the Republicans secured a majority in the lower house of Congress following the national election in November 2022, reached an agreement on the debt ceiling during the last week of May. Both the U.S. House of Representatives and the Senate passed the legislation–the Fiscal Responsibility Act–by wide margins, with strong support from Republicans and Democrats. The bill suspends the debt ceiling through January 1, 2025; maintains non-military spending close to current levels for the 2024 fiscal year, which begins in October; and implements a 1% cap on increases in non-military spending for the 2025 fiscal year. The fast-track approval of the legislation enabled the government to avoid a potential default on its debt.
LETTER TO SHAREHOLDERS (Unaudited) (Continued)
JULY 31, 2023
Geopolitical Events
The ongoing Russia-Ukraine war dominated the geopolitical news during the reporting period. Ukraine’s president, Volodymyr Zelenskyy, traveled to Washington, D.C., to address a joint session of the U.S. Congress in late December 2022, in an effort to secure additional financial aid from the U.S. and its allies. President Biden reiterated the U.S. government’s support for Ukraine in its conflict with Russia. In late December, the U.S. Congress approved $45 billion in additional financial assistance to Ukraine. In February 2023, nearly a year after the conflict began, President Biden made an unannounced trip to Ukraine to meet with President Volodymyr Zelenskyy and to encourage ongoing support from U.S. allies. The visit occurred as Russian President Vladimir Putin increased military activity in eastern Ukraine. President Biden’s trip was particularly risky as there was no protection from U.S. military personnel on the ground in Ukraine. In March, President Xi Jinping of China met with Russian President Vladimir Putin in Moscow to discuss China’s proposal to end the conflict with Ukraine. The Biden administration criticised the plan as “the ratification of Russian conquest” as it proposed a ceasefire that would recognise Russia’s right to occupy territory in Ukraine and provide Putin with time to bolster the nation’s military forces.
Late in the reporting period, the Wagner Group, a Russian paramilitary organization, began to retreat from the city of Bakhmut, Ukraine, in late May. The mercenaries were scheduled to complete their retreat by the beginning of June, and would be replaced by regular Russian troops. The Wagner Group had been fighting in Bakhmut since the summer of 2022. The withdrawal from the city occurred after the group’s leader, Yevgeny Prigozhin, claimed that Russian Defence Minister Sergei Shoigu and Valery Gerasimov, Chief of the General Staff, had intentionally withheld ammunition from Wagner Group fighters. In late June, the Wagner Group organised a short-lived mutiny against Russian President Vladimir Putin’s regime. The group occupied Rostov-On-Don in southern Russia, a significant command center for the Russian government’s invasion of Ukraine. The group’s leader, Yevgeny Prigozhin, subsequently agreed to be exiled to Belarus, and the mercenaries retreated from Rostov-On-Don.
Liz Truss was elected U.K. Prime Minister in September 2022, but served just seven weeks before resigning. The disastrous reaction to her fiscal program sent gilt and sterling markets reeling, collapsing her support within the Conservative Party. Her departure cleared the way for Rishi Sunak to ascend as the Conservative Party leader and Prime Minister. Sunak’s administration was plagued by public-sector employee strikes and other job actions during the reporting period, as pay increases have not kept up with the U.K.’s inflation rate, which stood at 7.9% year-over-year in May. In the spring of 2023, however, the labour tensions appeared to be easing. The GMB union, which represent National Health Service (NHS) workers, announced that its members voted to accept the U.K. government’s offer to resolve a labour dispute following five months of contentious negotiations and strikes.
Economic Performance
U.S. inflation, as measured by the CPI, peaked at an annual rate of 9.1% in June 2022, the largest year-over-year increase since December 1981, and then showed signs of cooling in the second half of the reporting period. The Department of Labor reported that the CPI increased 0.2% in June, a slight uptick from the 0.1% rise in May. The CPI posted a year-over-year gain of 3.0%—the smallest annual increase since March 2021, and sharply lower than the 4.0% annual rise during the previous month. Nonetheless, the inflation rate still exceeds the Fed's 2% target. The slowing pace of inflation over the previous 12-month period was due to sharp declines in prices for fuel oil and gasoline, while food costs rose 0.2% in May and 6.7% year-over-year. Meanwhile, core inflation, as measured by the CPI for all items less food and energy, increased 0.2% in June, down from the 0.4% rise in May. The CPI was up 4.8% over the previous 12 months—significantly lower than the 5.3% year-over-year increase in May.
According to the initial estimate from the Department of Commerce, U.S. gross domestic product (“GDP”) grew at a greater-than-expected annualized rate of 2.4% in the second quarter of 2023, up from the 2.0% rise in the first three months of the year. The largest increases for the second quarter were in consumer spending, nonresidential fixed investment (purchases of both nonresidential structures and equipment and software), and state and local government spending. These gains offset reductions in exports and residential fixed investment (purchases of private residential structures and residential equipment that property owners use for rentals). The government attributed the accelerated GDP growth rate to upturns in private inventory investment (a measure of the changes in values of inventories from one time period to the next) and nonresidential fixed investment.
LETTER TO SHAREHOLDERS (Unaudited) (Continued)
JULY 31, 2023
According to the Office for National Statistics, consumer prices in the U.K. rose 0.2% month-over-month in June, down from the 0.7% increase in May. Inflation increased 7.3% over the previous 12-month period, down 0.6% from the 7.9% annual upturn in May. Food and non-alcoholic beverages, and restaurants and hotels, were the most notable contributors to the annual rise in prices. Core inflation, which excludes volatile food prices, rose at an annual rate of 6.4% in June, marginally lower than the 6.5% year-over-year increase for the previous month. Eurostat estimated that the inflation rate in the eurozone fell 0.2% to 5.3% for the 12-month period ending in July. Energy prices decreased 5.6% year-over-year in June, following a 1.8% decline in May. Prices for food, alcohol and tobacco rose 10.8%, but the pace of acceleration slowed from the 11.6% annual rate in June. Core inflation, which excludes volatile energy and food prices, rose 5.5% for the month, unchanged from June.
Market Developments
Global equity markets garnered positive returns despite periods of volatility over the reporting period. Developed markets posted double-digit gains and significantly outperformed their emerging-market counterparts. The eurozone was the top-performing region among the developed markets for the reporting period with notably strong performances from Ireland, Italy, and Spain. Nordic countries were the most notable laggards among developed markets, with Norway and Finland posting negative returns for the period. The strongest performers among emerging markets included Turkey, Europe (particularly Greece, Poland, and Hungary) and Latin America (most notably Peru, Mexico, and Brazil), which achieved double-digit gains for the reporting period. Conversely, China experienced a substantial downturn and was among the weakest performers among emerging markets, along with Middle Eastern nations (Qatar, UAE, Kuwait, and Saudi Arabia) and Malaysia.
Global fixed-income assets saw modest losses over the reporting period, with the Bloomberg Global Aggregate Bond Index returning -2.70% in U.S. Dollar terms. Emerging-market and high-yield bonds, however, posted gains and outperformed government securities. Over the reporting period, rates rose across all maturities of the U.S. Treasury yield curve. The yield on the 10-year U.S. Treasury note ended the one-year reporting period up 1.37% to 3.97%, while the 2-year yield rose 1.98% to 4.88%. Bond prices fall as interest rates rise. The spread between 10- and 2-year notes widened from -0.30% to -0.91%. The yield curve remained inverted, with yields on shorter-term bonds exceeding those on longer-dated securities. The significant upturn in shorter-term bond yields reflected expectations for rates to remain higher for longer; longer-term bonds showed signs of concerns regarding how monetary tightening might have a negative effect on economic growth. Emerging-markets debt ended the period with notable gains, outperforming high yield, corporates, and government bonds.
Global commodity prices, as measured by the Bloomberg Commodity Total Return Index, fell 7.88% in U.S. Dollar terms during the reporting period. However, gold prices rallied and ended the period in positive territory as the U.S. Dollar weakened (gold prices move inversely to the U.S. Dollar) and the Fed began to slow the pace of its interest-rate hikes. Prices for West Texas Intermediate crude oil and Brent crude oil declined overall during the period but rallied sharply in July 2023. Wheat prices tumbled after Russia renewed a deal with the UN, Ukraine, and Turkey that allows the shipment of Ukrainian grain through the Black Sea. Additionally, Egypt made a large purchase tender for Russian wheat at a relatively low price.
Our View
Economists have been spending much of their time this year arguing when or if economic growth, inflation, corporate profits, interest rates, and equities will peak. Optimists and pessimists alike have been confounded by the ebb and flow of the data and the gyrations of the financial markets. The Conference Board’s Composite Index of Leading Economic Indicators has been in sharp decline since April 2022, consistent with a recession. However, coincident indicators, which track the current health of the real economy, continue to advance.
In general, input-price inflation has decelerated significantly. Canada’s industrial producer price index registered an outright decline in its price level, with a year-over-year change of -5.5% through June. The eurozone’s producer-price index (“PPI”) has witnessed the sharpest deceleration, falling from a peak year-over-year rate of 43% through August 2022 to a May 2023 reading of just 1.9%. By contrast, the improvement in producer prices has been less dramatic in Japan (still rising at a 4.1% year-over-year pace as of June), although the country has logged a steep deceleration from earlier this year. We believe that these year-over-year PPI inflation readings should continue to show improvement in the months immediately ahead owing to favorable base effects.
LETTER TO SHAREHOLDERS (Unaudited) (Concluded)
JULY 31, 2023
The good news at the corporate level is feeding only slowly down to the consumer. This is especially true for core inflation, which excludes food and energy prices. Inflation cooled somewhat in the U.K. in July, but slightly accelerated in Japan. Improvement in the U.S. and the euro area has been modest, with annual core inflation running at 4.8% and 3.7%, respectively, in June. Only Canada has recorded significant progress in its core inflation rate, declining from 6.0% in June 2022 to 2.8% as of June 2023.
On a longer-term basis, we believe that demographic shifts are likely to keep labor markets tighter than has been the case at any point since the baby boomers—who were born between 1946 and 1964—first made their presence felt in the workforce in the 1970s. The new focus on supply-chain resiliency, reduced dependence on China as a manufacturing hub, the transition away from relatively cheap fossil-fuel energy to greener but more expensive sources of power, and the likelihood of significantly higher corporate taxes and financing costs in the years ahead, all suggest to us that inflation will tend to settle at 3% or more in advanced industrial economies instead of the previous norm of 2% or less.
Persistent inflation and ongoing labor-market tightness have forced most major developed-country central banks to keep raising their benchmark interest rates. The Fed, the Bank of Canada, and the European Central Bank (“ECB”) already have benchmark rates that match or exceed the peak recorded in 2008. We think it’s likely that the Bank of England (“BoE”) will soon join this group.
SEI does not dispute the fact that inflation will continue to decelerate, especially given the current weakness in energy and goods prices. It is only a question of timing and end point. We maintain our view that inflation pressures will remain persistent in labor intensive service industries, at least until some slack opens up in the labor markets and spending by households fades more dramatically.
The rally in U.S. equities broadened in July, but the valuation in the market remains problematic. The price-to-earnings ratio of the broad-market S&P 500 Index has been on the rise this year, recently reaching 19.6 times analysts’ estimated earnings for the next 12 months. This expansion in the multiple on forward earnings has occurred despite the additional monetary tightening by the Fed and other central banks. Furthermore, this upturn in expected forward earnings over the next 12 months is not likely to last if a recession materializes later this year or in 2024. The overall market also appears to be overvalued relative to today’s bond yields. If earnings experience a substantial contraction, history suggests that stock valuations also will fall.
Sincerely,
James Smigiel
Chief Investment Officer
LETTER TO SHAREHOLDERS (Unaudited) (Concluded)
JULY 31, 2023
Index Definitions
Bloomberg Commodity Total Return Index: comprises futures contracts and tracks the performance of a fully collateralised investment in the index. This combines the returns of the index with the returns on cash collateral invested in 13-week (three-month) U.S. Treasury bills.
Bloomberg Global Aggregate Bond Index: is a market capitalization-weighted index that tracks the performance of investment-grade (rated BBB- or higher by S&P Global Ratings/Fitch Ratings or Baa3 or higher by Moody’s Investors Service) fixed-income securities denominated in 13 currencies. The index reflects reinvestment of all distributions and changes in market prices.
Composite Index of Leading Indicators (U.S. Conference Board): is designed to predict peaks and troughs in the business cycle. The index comprises 10 economic components for which changes tend to precede changes in the overall U.S. economy.
ICE BofA US High Yield Constrained Index: tracks the performance of below-investment-grade, U.S. dollar-denominated corporate bonds publicly issued in the U.S. domestic market; exposure to individual issuers is capped at 2%.
JPMorgan EMBI Global Diversified Index: tracks the performance of external debt instruments (including U.S.-dollar-denominated and other external-currency-denominated Brady bonds, loans, eurobonds and local-market instruments) in emerging markets.
S&P 500 Index: is an unmanaged, market-weighted index that consists of 500 of the largest publicly-traded U.S. companies and is considered representative of the broad U.S. stock market.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FUND PERFORMANCE (Unaudited)
JULY 31, 2023
Diversified Equity Fund
SCHEDULE OF INVESTMENTS
July 31, 2023
Diversified Equity Fund
SCHEDULE OF INVESTMENTS
July 31, 2023
Diversified Equity Fund (Continued)
SCHEDULE OF INVESTMENTS
July 31, 2023
Diversified Equity Fund (Continued)
SCHEDULE OF INVESTMENTS
July 31, 2023
Diversified Equity Fund (Continued)
SCHEDULE OF INVESTMENTS
July 31, 2023
Diversified Equity Fund (Continued)
SCHEDULE OF INVESTMENTS
July 31, 2023
Diversified Equity Fund (Continued)
SCHEDULE OF INVESTMENTS
July 31, 2023
Diversified Equity Fund (Continued)
SCHEDULE OF INVESTMENTS
July 31, 2023
Diversified Equity Fund (Continued)
SCHEDULE OF INVESTMENTS
July 31, 2023
Diversified Equity Fund (Continued)
SCHEDULE OF INVESTMENTS
July 31, 2023
Diversified Equity Fund (Concluded)
A list of open futures contracts held by the Fund at July 31, 2023, is as follows:
Type of Contract |
Number of |
Expiration Date |
Notional Amount (Thousands) |
Value |
Unrealized Appreciation(Thousands) |
|||||||||||||||
Long Contracts |
||||||||||||||||||||
MSCI EAFE Index |
192 | Sep-2023 | $ | 20,489 | $ | 21,176 | $ | 687 | ||||||||||||
MSCI Emerging Markets |
212 | Sep-2023 | 10,654 | 11,175 | 521 | |||||||||||||||
NASDAQ 100 Index E-MINI |
1 | Sep-2023 | 290 | 317 | 27 | |||||||||||||||
Russell 2000 Index E-MINI |
116 | Sep-2023 | 11,026 | 11,679 | 653 | |||||||||||||||
S&P 500 Index E-MINI |
19 | Sep-2023 | 4,167 | 4,384 | 217 | |||||||||||||||
S&P Mid Cap 400 Index E-MINI |
1 | Sep-2023 | 258 | 274 | 16 | |||||||||||||||
$ | 46,884 | $ | 49,005 | $ | 2,121 |
For the year ended July 31, 2023, the total amount of all open futures contracts, as presented in the table above, are representative of the volume of activity for this derivative type during the year.
The following is a summary of the transactions the Fund had with affiliates for the year ended July 31, 2023 ($ Thousands):
Security Description |
Value 7/31/2022 |
Purchases at Cost |
Proceeds from Sales |
Realized Gain/ (Loss) |
Change in Unrealized Appreciation/ (Depreciation) |
Value 7/31/2023 |
Income |
Capital Gains |
||||||||||||||||||||||||
SEI Daily Income Trust, Government Fund, Institutional Class |
$ | — | $ | 19,363 | $ | (16,655 | ) | $ | — | $ | — | $ | 2,708 | $ | 49 | $ | — |
Amounts designated as “—“ are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
SCHEDULE OF INVESTMENTS
July 31, 2023
Enhanced Fixed Income Fund
The following is a summary of the transactions the Fund had with affiliates for the period ended July 31, 2023 ($ Thousands):
Security Description |
Value 7/31/2022 |
Purchases at Cost |
Proceeds from Sales |
Realized Gain/ (Loss) |
Change in Unrealized Appreciation/ (Depreciation) |
Value 7/31/2023 |
Income |
Capital Gains |
||||||||||||||||||||||||
SEI Daily Income Trust, Government Fund, Institutional Class |
$ | — | $ | 21,581 | $ | (21,441 | ) | $ | — | $ | — | $ | 140 | $ | 8 | $ | — |
Amounts designated as “—“ are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
STATEMENTS OF ASSETS AND LIABILITIES ($ Thousands)
July 31, 2023
Diversified Equity Fund |
Enhanced Fixed Income Fund |
|||||||
Assets: |
||||||||
Investments, at value† |
$ | 274,082 | $ | 38,862 | ||||
Affiliated investments, at value†† |
2,708 | 140 | ||||||
Cash |
43,813 | 328 | ||||||
Foreign currency, at value ††† |
161 | — | ||||||
Cash pledged as collateral for futures contracts |
2,149 | — | ||||||
Dividends and interest receivable |
199 | 1 | ||||||
Receivable for variation margin |
141 | — | ||||||
Foreign tax reclaim receivable |
57 | — | ||||||
Receivable for fund shares sold |
20 | 3 | ||||||
Prepaid expenses |
27 | 2 | ||||||
Total Assets |
323,357 | 39,336 | ||||||
Liabilities: |
||||||||
Shareholder servicing fees payable |
67 | 8 | ||||||
Legal fees payable |
31 | 4 | ||||||
Audit fees payable |
22 | 3 | ||||||
Payable for variation margin |
21 | — | ||||||
Administration fees payable |
18 | — | ||||||
Investment advisory fees payable |
11 | 2 | ||||||
Custody fees payable |
11 | 5 | ||||||
Pricing fees payable |
9 | 1 | ||||||
Payable for fund shares redeemed |
7 | — | ||||||
Chief Compliance Officer fees payable |
1 | — | ||||||
Accrued expense payable |
8 | 1 | ||||||
Total Liabilities |
206 | 24 | ||||||
Net Assets |
$ | 323,151 | $ | 39,312 | ||||
† Cost of investments |
$ | 251,386 | $ | 38,893 | ||||
†† Cost of affiliated investments |
2,708 | 140 | ||||||
††† Cost of foreign currency |
159 | — | ||||||
Net Assets: |
||||||||
Paid-in capital — (unlimited authorization — no par value) |
$ | 301,825 | $ | 40,103 | ||||
Total distributable earnings (accumulated losses) |
21,326 | (791 | ) | |||||
Net Assets |
$ | 323,151 | $ | 39,312 | ||||
Net Asset Value, Offering and Redemption Price Per Share |
$ | 9.69 | $ | 9.83 | ||||
($323,151,097 ÷ 33,353,773 shares |
) | ($39,312,085 ÷ 4,000,962 shares |
) | |||||
The accompanying notes are an integral part of the financial statements. |
STATEMENTS OF OPERATIONS ($ Thousands)
For the year or period ended July 31, 2023
Diversified Equity Fund(1) |
Enhanced Fixed Income Fund(2) |
|||||||
Investment income: |
||||||||
Dividends |
$ | 2,494 | $ | 867 | ||||
Dividends from affiliated investments(3) |
49 | 8 | ||||||
Interest income |
440 | 4 | ||||||
Less: foreign taxes withheld |
(71 | ) | — | |||||
Total investment income |
2,912 | 879 | ||||||
Expenses: |
||||||||
Shareholder servicing fees |
348 | 44 | ||||||
Administration fees |
278 | 35 | ||||||
Investment advisory fees |
278 | 52 | ||||||
Chief Compliance Officer fees |
3 | — | ||||||
Trustee fees |
2 | 1 | ||||||
Professional fees |
105 | 7 | ||||||
Printing fees |
38 | 4 | ||||||
Registration fees |
16 | 1 | ||||||
Custodian/wire agent fees |
12 | 5 | ||||||
Other expenses |
49 | 3 | ||||||
Total expenses |
1,129 | 152 | ||||||
Less: |
||||||||
Waiver of investment advisory fees |
(224 | ) | (44 | ) | ||||
Waiver of administration fees |
(204 | ) | (35 | ) | ||||
Net expenses |
701 | 73 | ||||||
Net investment income |
2,211 | 806 | ||||||
Net realized gain (loss) on: |
||||||||
Investments |
(1,348 | ) | (760 | ) | ||||
Futures contracts |
(1,129 | ) | — | |||||
Foreign currency transactions |
(6 | ) | — | |||||
Net realized loss |
(2,483 | ) | (760 | ) | ||||
Net change in unrealized appreciation (depreciation) on: |
||||||||
Investments |
22,690 | (31 | ) | |||||
Futures contracts |
2,121 | — | ||||||
Foreign currency and translation of other assets and liabilities denominated in foreign currency |
4 | — | ||||||
Net change in unrealized appreciation (depreciation) |
24,815 | (31 | ) | |||||
Net realized and unrealized gain (loss) |
22,332 | (791 | ) | |||||
Net increase in net assets resulting from operations |
$ | 24,543 | $ | 15 |
(1) |
For the period August 1, 2022 through January 31, 2023, the Fund was not an active component of the Adviser Managed Strategy (see Note 1). |
(2) |
Commenced operations on February 1, 2023. |
(3) |
See Note 4 in the Notes to Financial Statements. |
Amounts designated as "—" are $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
STATEMENTS OF CHANGES IN NET ASSETS ($ Thousands)
For the year or periods ended July 31,
Diversified Equity Fund |
Enhanced Fixed Income Fund |
|||||||||||
2023 | (1) | 2022 | (2)(3) | 2023 | (4) | |||||||
Operations: |
||||||||||||
Net investment income |
$ | 2,211 | $ | 25 | $ | 806 | ||||||
Net realized loss |
(2,483 | ) | (13,770 | ) | (760 | ) | ||||||
Net change in unrealized appreciation (depreciation) |
24,815 | 6 | (31 | ) | ||||||||
Net increase (decrease) in net assets resulting from operations |
24,543 | (13,739 | ) | 15 | ||||||||
Distributions |
— | (30 | ) | (806 | ) | |||||||
Return of Capital |
— | — | (10 | ) | ||||||||
Capital share transactions:(5) |
||||||||||||
Proceeds from shares issued |
477,434 | 175,581 | 61,466 | |||||||||
Reinvestment of dividends & distributions |
— | — | 814 | |||||||||
Cost of shares redeemed |
(178,971 | ) | (161,667 | ) | (22,167 | ) | ||||||
Net increase in net assets derived from capital share transactions |
298,463 | 13,914 | 40,113 | |||||||||
Net increase in net assets |
323,006 | 145 | 39,312 | |||||||||
Net assets: |
||||||||||||
Beginning of year or period |
145 | — | — | |||||||||
End of year or period |
$ | 323,151 | $ | 145 | $ | 39,312 |
(1) |
For the period August 1, 2022 through January 31, 2023, the Fund was not an active component of the Adviser Managed Strategy (see Note 1). |
(2) |
For the period April 26, 2022 through July 31, 2022, the Fund was not an active component of the Adviser Managed Strategy (see Note 1). |
(3) |
Commenced operations on March 30, 2022. |
(4) |
Commenced operations on February 1, 2023. |
(5) |
See Note 5 in the Notes to Financial Statements for additional information. |
Amount designated as "—" is $0 or has been rounded to $0.
The accompanying notes are an integral part of the financial statements.
FINANCIAL HIGHLIGHTS
For the year or periods ended July 31,
For a share outstanding throughout the year or periods
Net asset value, beginning of year or period |
Net |
Net realized and unrealized gains (losses) on securities(1) |
Total from |
Dividends from net investment income |
Distributions from realized gains |
Total dividends |
Net asset value, |
Total return† |
Net assets, |
Ratio of |
Ratio of expenses to average net assets (excluding waivers and reimbursements) |
Ratio of net investment income to average net assets |
Portfolio turnover rate† |
|||||||||||||||||||||||||||||||||||||||||||
Diversified Equity Fund |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2023(2) |
$ | 8.86 | $ | 0.14 | $ | 0.69 | $ | 0.83 | $ | – | $ | – | $ | – | $ | 9.69 | 9.37 | % | $ | 323,151 | 0.50 | % | 0.81 | % | 1.59 | % | 132 | % | ||||||||||||||||||||||||||||
2022(3)(4) |
10.00 | 0.01 | (1.15 | ) | (1.14 | ) | – | ^‡ | – | – | ^‡ | 8.86 | (11.38 | ) | 145 | 0.50 | 1.04 | 0.19 | 6,822 | (5) | ||||||||||||||||||||||||||||||||||||
Enhanced Fixed Income Fund |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2023(6) |
$ | 10.00 | $ | 0.22 | $ | (0.18 | ) | $ | 0.04 | $ | (0.21 | )‡ | $ | – | $ | (0.21 | )‡ | $ | 9.83 | 0.42 | % | $ | 39,312 | 0.41 | % | 0.86 | % | 4.59 | % | 56 | % |
(1) |
Per share net investment income and net realized and unrealized gains (losses) calculated using average shares. |
(2) |
For the period August 1, 2022 through January 31, 2023, the Fund was not an active component of the Adviser Managed Strategy (see Note 1). |
(3) |
For the period April 26, 2022 through July 31, 2022, the Fund was not an active component of the Adviser Managed Strategy (see Note 1). |
(4) |
Commenced operations on March 30, 2022. All ratios for the period have been annualized. |
(5) |
Portfolio turnover rate reflects the Financial Advisor’s strategy to exercise its investment discretion which leads to the Fund buying and selling securities and other instruments frequently. Please see Note 1 for further details. |
(6) |
Commenced operations on February 1, 2023. All ratios for the period have been annualized. |
† |
Returns and portfolio turnover rate are for the period indicated and have not been annualized. Returns do not reflect the deduction of taxes the shareholder would pay on fund distributions or redemption of fund shares. |
^ |
Amount is less than $0.005 per share. |
‡ |
Includes return of capital of less than $0.005 per share. |
The accompanying notes are an integral part of the financial statements.
NOTES TO FINANCIAL STATEMENTS
July 31, 2023
NOTES TO FINANCIAL STATEMENTS (Continued)
July 31, 2023
NOTES TO FINANCIAL STATEMENTS (Continued)
July 31, 2023
NOTES TO FINANCIAL STATEMENTS (Continued)
July 31, 2023
NOTES TO FINANCIAL STATEMENTS (Continued)
July 31, 2023
The following is a summary of annual fees payable to the Adviser and Distributor and the expense limitations for the Funds:
Advisory |
Shareholder |
Contractual |
Voluntary |
|||||||||||||
Diversified Equity Fund |
0.20 | % | 0.25 | % | 0.75 | %* | 0.50 | % | ||||||||
Enhanced Fixed Income Fund** |
0.30 | % | 0.25 | % | 0.92 | %* | 0.41 | % |
The following is a summary of annual fees payable to the Administrator:
Contractual Fees |
||||||||||||
First $2.5 Billion | Next $500 Million | Over $3 Billion | ||||||||||
Diversified Equity Fund |
0.2000 | % | 0.1650 | % | 0.1200 | % |
Contractual Fees |
||||||||||||||||||||
First $1.5 Billion | Next $500 Million | Next $500 Million | Next $500 Million | Over $3 Billion | ||||||||||||||||
Enhanced Fixed Income Fund |
0.2000 | % | 0.1775 | % | 0.1550 | % | 0.1325 | % | 0.1100 | % |
NOTES TO FINANCIAL STATEMENTS (Continued)
July 31, 2023
The tax character of dividends and distributions paid during the fiscal year were as follows:
Ordinary |
Long-Term |
Return of Capital |
Total |
|||||||||||||||||
Diversified Equity Fund |
||||||||||||||||||||
2023 |
$ | — | $ | — | $ | — | $ | — | ||||||||||||
2022 |
29 | — | 1 | 30 | ||||||||||||||||
Enhanced Fixed Income Fund |
||||||||||||||||||||
2023 |
806 | — | 10 | 816 |
As of July 31, 2023, the components of Distributable Earnings (Accumulated Losses) on a tax basis were as follows:
Undistributed |
Undistributed |
Post- |
Unrealized |
Total Distributable Earnings |
||||||||||||||||
Diversified Equity Fund |
$ | 5,127 | $ | 294 | $ | — | $ | 15,905 | $ | 21,326 | ||||||||||
Enhanced Fixed Income Fund |
— | — | (25 | ) | (766 | ) | (791 | ) |
Post-October losses represent losses realized on investment transactions from November 1, 2022 through July 31, 2023 that in accordance with Federal income tax regulations, the Funds may elect to defer and treat as having arisen in the following fiscal year.
During the year ended July 31, 2023, the Diversified Equity Fund utilized $3,215 ($ Thousands) of capital loss carryforwards to offset capital gains and $7,221 ($ Thousands) to write off the remaining capital loss carryforwards balance.
NOTES TO FINANCIAL STATEMENTS (Continued)
July 31, 2023
NOTES TO FINANCIAL STATEMENTS (Concluded)
July 31, 2023
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders of the Funds and Board of Trustees
Adviser Managed Trust:
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of the Diversified Equity Fund (one of the two funds comprising the Adviser Managed Trust), including the schedule of investments, as of July 31, 2023, the related statement of operations for the year then ended, the statements of changes in net assets for the year then ended and the period from March 30, 2022 (commencement of operations) to July 31, 2022, and the related notes (collectively, the financial statements) and the financial highlights for the year then ended and the period from March 30, 2022 (commencement of operations) to July 31, 2022. We have also audited the accompanying statement of assets and liabilities of the Enhanced Fixed Income Fund (one of the two funds comprising the Adviser Managed Trust) (the two funds collectively, the Funds), including the schedule of investments, as of July 31, 2023, the related statements of operations and changes in net assets for the period from February 1, 2023 (commencement of operations) to July 31, 2023, and the related notes (collectively, the financial statements) and the financial highlights for the period from February 1, 2023 to July 31, 2023. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Funds as of July 31, 2023, the results of their operations for the year or period then ended, the changes in their net assets for each of the years or periods in the two-year period then ended, and the financial highlights for each of the years or periods in the two-year period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of July 31, 2023, by correspondence with the custodian and transfer agent. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.
/s/ KPMG LLP
We have served as the auditor of one or more SEI Funds investment companies since 2005.
Philadelphia, Pennsylvania
September 26, 2023
TRUSTEES AND OFFICERS OF THE TRUST (Unaudited)
The following chart lists Trustees and Officers as of July 31, 2023.
Set forth below are the names, addresses, ages, position with the Trust, Term of Office and Length of Time Served, the principal occupations for the last five years, number of positions in fund complex overseen by trustee, and other directorships outside the fund complex of each of the persons currently serving as Trustees and Officers of the Trust. The Trust's Statement of Additional Information ("SAI") includes additional information about the Trustees and Officers. The SAI may be obtained without charge by calling 1-800-342-5734.
Name, Address, and Age |
Position(s) Held with Trusts |
Term of Office and Length of Time Served1 |
Principal Occupation(s) During Past Five Years |
Number of Portfolios in Fund Complex Overseen by Trustee2 |
Other Directorships Held by Trustee |
INTERESTED TRUSTEES |
|||||
Robert A. Nesher One Freedom Valley Drive Oaks, PA 19456 76 yrs. old |
Chairman of the Board of Trustees*
|
since 2010 |
Currently performs various services on behalf of SEI for which Mr. Nesher is compensated.
|
97 |
President and Director of SEI Structured Credit Fund, LP. Director of SEI Global Master Fund plc, SEI Global Assets Fund plc, SEI Global Investments Fund plc, SEI Investments—Global Funds Services, Limited, SEI Investments Global, Limited, SEI Investments (Europe) Ltd., SEI Multi-Strategy Funds PLC, SEI Global Nominee Ltd and SEI Investments—Unit Trust Management (UK) Limited. President, Director and Chief Executive Officer of SEI Alpha Strategy Portfolios, LP from 2007 to 2013. President, Chief Executive Officer and Trustee of SEI Liquid Asset Trust from 1989 to 2016. President, Chief Executive Officer and Trustee of SEI Insurance Products Trust from 2013 to 2020. Trustee of The KP Funds from 2013 to 2020. Vice Chairman of O'Connor EQUUS (closed-end investment company) from 2014 to 2016. Vice Chairman of Winton Series Trust from 2014 to 2017. Vice Chairman of The Advisors' Inner Circle Fund III and Winton Diversified Opportunities Fund (closed-end investment company) from 2014 to 2018. Vice Chairman of Gallery Trust from 2015 to 2018. Vice Chairman of Schroder Series Trust and Schroder Global Series Trust from 2017 to 2018. Trustee of The Advisors’ Inner Circle Fund, The Advisors’ Inner Circle Fund II, Bishop Street Funds, Frost Family of Funds and Catholic Responsible Investments Funds. President, Chief Executive Officer and Trustee of SEI Asset Allocation Trust, SEI Daily Income Trust, SEI Institutional Managed Trust, SEI Institutional International Trust, SEI Institutional Investments Trust, SEI Tax Exempt Trust, Adviser Managed Trust, New Covenant Funds, SEI Catholic Values Trust and SEI Exchange Traded Funds. |
William M. Doran One Freedom Valley Drive Oaks, PA 19456 83 yrs. old |
Trustee* |
since 2010 |
Self-employed consultant since 2003. Partner, Morgan, Lewis & Bockius LLP (law firm) from 1976 to 2003. Counsel to the Trust, SEI Investments, SIMC, the Administrator and the Distributor.
|
97 |
Director of SEI Investments since 1985; Secretary of SEI Investments since 1978. Director of SEI Investments Distribution Co. since 2003. Director of SEI Investments—Global Funds Services, Limited, SEI Investments Global, Limited, SEI Investments (Europe), Limited, SEI Investments (Asia) Limited, SEI Global Nominee Ltd. and SEI Investments—Unit Trust Management (UK) Limited. Trustee of SEI Liquid Asset Trust from 1982 to 2016. Trustee of O'Connor EQUUS (closed-end investment company) from 2014 to 2016. Director of SEI Alpha Strategy Portfolios, LP from 2007 to 2013. Trustee of Winton Series Trust from 2014 to 2017. Trustee of The Advisors’ Inner Circle Fund and The Advisors’ Inner Circle Fund II from 1991 to 2018. Trustee of Bishop Street Funds from 2006 to 2018. Trustee of The KP Funds from 2013 to 2018. Trustee of Winton Diversified Opportunities Fund (closed-end investment company) from 2014 to 2018. Trustee of SEI Insurance Products Trust from 2013 to 2020. Trustee of Schroder Series Trust and Schroder Global Series Trust from 2017 to 2021. Trustee of The Advisors’ Inner Circle Fund III, Gallery Trust, Delaware Wilshire Private Markets Fund, Delaware Wilshire Private Markets Master Fund, Delaware Wilshire Private Markets Tender Fund, SEI Asset Allocation Trust, SEI Daily Income Trust, SEI Institutional Managed Trust, SEI Institutional International Trust, SEI Institutional Investments Trust, SEI Tax Exempt Trust, Adviser Managed Trust, New Covenant Funds, SEI Catholic Values Trust and SEI Exchange Traded Funds. |
TRUSTEES |
|
|
|
|
|
Nina Lesavoy One Freedom Valley Drive, Oaks, PA 19456 66 yrs. old |
Trustee |
since 2010 |
Founder and Managing Director, Avec Capital (strategic fundraising firm) since 2008. Managing Director, Cue Capital (strategic fundraising firm) from March 2002-March 2008.
|
97 |
Director of SEI Alpha Strategy Portfolios, LP from 2007 to 2013. Trustee of SEI Liquid Asset Trust from 2003 to 2016. Trustee of SEI Insurance Products Trust from 2013 to 2020. Trustee/Director of SEI Structured Credit Fund, L.P., SEI Asset Allocation Trust, SEI Daily Income Trust, SEI Institutional Managed Trust, SEI Institutional International Trust, SEI Institutional Investments Trust, SEI Tax Exempt Trust, New Covenant Funds, Adviser Managed Trust, SEI Catholic Values Trust and SEI Exchange Traded Funds. |
James M. Williams One Freedom Valley Drive, Oaks, PA 19456 75 yrs. old |
Trustee |
since 2010 |
Vice President and Chief Investment Officer, J. Paul Getty Trust, Non-Profit Foundation for Visual Arts, since December 2002. President, Harbor Capital Advisors and Harbor Mutual Funds, 2000-2002. Manager, Pension Asset Management, Ford Motor Company, 1997-1999. |
97 |
Director of SEI Alpha Strategy Portfolios, LP from 2007 to 2013. Trustee of SEI Liquid Asset Trust from 2004 to 2016. Trustee of SEI Insurance Products Trust from 2013 to 2020. Trustee/Director of Ariel Mutual Funds, SEI Structured Credit Fund, LP, SEI Asset Allocation Trust, SEI Daily Income Trust, SEI Institutional Managed Trust, SEI Institutional International Trust, SEI Institutional Investments Trust, SEI Tax Exempt Trust, New Covenant Funds, Adviser Managed Trust, SEI Catholic Values Trust and SEI Exchange Traded Funds. |
* |
Messrs. Nesher and Doran are Trustees who may be deemed as “interested” persons of the Trust as that term is defined in the 1940 Act by virtue of their affiliation with SIMC and the Trust’s Distributor. |
1 |
Each trustee shall hold office during the lifetime of this Trust until the election and qualification of his or her successor, or until he or she sooner dies, resigns or is removed in accordance with the Trust’s Declaration of Trust. |
2 |
The Fund Complex includes the following Trusts: SEI Asset Allocation Trust, SEI Daily Income Trust, SEI Institutional Investments Trust, Adviser Managed Trust, SEI Institutional International Trust, SEI Institutional Managed Trust, SEI Tax Exempt Trust, SEI Catholic Values Trust, New Covenant Funds and SEI Exchange Traded Funds. |
TRUSTEES AND OFFICERS OF THE TRUST (Unaudited) (Continued)
Name Address, and Age |
Position(s) Held with Trusts |
Term of Office and Length of Time Served1 |
Principal Occupation(s) During Past Five Years |
Number of Portfolios in Fund Complex Overseen by Trustee2 |
Other Directorships Held by Trustee |
TRUSTEES (continued) |
|||||
Hubert L. Harris, Jr. One Freedom Valley Drive, Oaks, PA 19456 80 yrs. old |
Trustee |
since 2010 |
Retired since December 2005. Owner of Harris Plantation, Inc. since 1995. Chief Executive Officer of Harris CAPM, a consulting asset and property management entity. Chief Executive Officer, INVESCO North America, August 2003-December 2005. Chief Executive Officer and Chair of the Board of Directors, AMVESCAP Retirement, Inc., January 1998- August 2005. |
97 |
Director of AMVESCAP PLC from 1993-2004. Served as a director of a bank holding company, 2003-2009. Director, Aaron’s Inc., 2012-present. Member of the Board of Councilors of the Carter Center (nonprofit corporation) and served on the boards of other non-profit organizations. Director of SEI Alpha Strategy Portfolios, LP from 2008 to 2013. Trustee of SEI Liquid Asset Trust from 2008 to 2016. Trustee of SEI Insurance Products Trust from 2013 to 2020. Trustee of SEI Asset Allocation Trust, SEI Daily Income Trust, SEI Institutional Managed Trust, SEI Institutional International Trust, SEI Institutional Investments Trust, SEI Tax Exempt Trust, New Covenant Funds, Adviser Managed Trust, SEI Catholic Values Trust and SEI Exchange Traded Funds. |
Susan C. Cote One Freedom Valley Drive Oaks, PA 19456 68 years old |
Trustee |
since 2015 |
Retired since July 2015. Treasurer and Chair of Finance, Investment and Audit Committee of the New York Women's Foundation from 2012 to 2017. Member of the Ernst & Young LLP Retirement Investment Committee, 2009-2015. Global Asset Management Assurance Leader, Ernst & Young LLP from 2006-2015. Partner, Ernst & Young LLP from 1997-2015. Americas Director of Asset Management, Ernst & Young LLP from 2006-2013. Prudential, 1983-1997. |
97 |
Trustee of SEI Insurance Products Trust from 2015 to 2020. Trustee/Director of SEI Structured Credit Fund, LP, SEI Tax Exempt Trust, SEI Daily Income Trust, SEI Institutional International Trust, SEI Institutional Managed Trust, SEI Asset Allocation Trust, SEI Institutional Investments Trust, New Covenant Funds, Adviser Managed Trust, SEI Catholic Values Trust and SEI Exchange Traded Funds. |
James B. Taylor One Freedom Valley Drive Oaks, PA 19456 72 years old
|
Trustee |
since 2018 |
Retired since December 2017. Chief Investment Officer at Georgia Tech Foundation from 2008 to 2017. Chief Investment Officer at Delta Air Lines from 1983 to 2007. Member of the Investment Committee of Institute of Electrical and Electronic Engineers from 1999 to 2004. President, Vice President and Treasurer for Southern Benefits Conference from 1998 to 2000. |
97 |
Trustee of SEI Insurance Products Trust from 2018 to 2020. Trustee of SEI Daily Income Trust, SEI Tax Exempt Trust, SEI Institutional Managed Trust, SEI Institutional International Trust, SEI Institutional Investments Trust, SEI Asset Allocation Trust, Adviser Managed Trust, New Covenant Funds, SEI Catholic Values Trust and SEI Exchange Traded Funds.
|
Christine Reynolds One Freedom Valley Drive Oaks, PA 19456 64 years old |
Trustee
|
since 2019 |
Retired since December 2016. Executive Vice President, Fidelity Investments from 2014-2016. President, Fidelity Pricing and Cash Management Services and Chief Financial Officer of Fidelity Funds from 2008-2014. Chief Operating Officer, Fidelity Pricing and Cash Management Services from 2007-2008. President and Treasurer, Fidelity Funds from 2004-2007. Anti-Money Laundering Officer, Fidelity Funds in 2004. Executive Vice President, Fidelity Funds from 2002-2004. Audit Partner, PricewaterhouseCoopers from 1992-2002. |
97 |
Trustee of SEI Insurance Products Trust from 2019 to 2020. Trustee of SEI Daily Income Trust, SEI Tax Exempt Trust, SEI Institutional Managed Trust, SEI Institutional International Trust, SEI Institutional Investments Trust, SEI Asset Allocation Trust, Adviser Managed Trust, New Covenant Funds, SEI Catholic Values Trust and SEI Exchange Traded Funds. |
Thomas Melendez One Freedom Valley Drive Oaks, PA 19456 63 years old |
Trustee
|
since 2021 |
Retired since 2019. Investment Officer and Institutional Equity Portfolio Manager at MFS Investment Management from 2002 to 2019. Director of Emerging Markets Group, General Manager of Operations in Argentina and Portfolio Manager for Latin America at Schroders Investment Management from 1994 to 2002. |
91 |
Trustee of Boston Children’s Hospital, The Partnership Inc. and Brae Burn Country Club (non-profit organizations). Trustee of SEI Daily Income Trust, SEI Tax Exempt Trust, SEI Institutional Managed Trust, SEI Institutional International Trust, SEI Institutional Investments Trust, SEI Asset Allocation Trust, SEI Exchange Traded Funds and Adviser Managed Trust. Independent Consultant of New Covenant Funds and SEI Catholic Values Trust. |
1 |
Each trustee shall hold office during the lifetime of this Trust until the election and qualification of his or her successor, or until he or she sooner dies, resigns or is removed in accordance with the Trust’s Declaration of Trust. |
2 |
The Fund Complex includes the following Trusts: SEI Asset Allocation Trust, SEI Daily Income Trust, SEI Institutional Investments Trust, Adviser Managed Trust, SEI Institutional International Trust, SEI Institutional Managed Trust, SEI Tax Exempt Trust, Catholic Values Trust, New Covenant Funds and SEI Exchange Traded Funds. |
TRUSTEES AND OFFICERS OF THE TRUST (Unaudited) (Concluded)
Name Address, and Age |
Position(s) Held with Trusts |
Term of Office and Length of Time Served1 |
Principal Occupation(s) During Past Five Years |
Number of Portfolios in Fund Complex Overseen by Trustee2 |
Other Directorships Held by Trustee |
OFFICERS |
|||||
Robert A. Nesher One Freedom Valley Drive, Oaks, PA 19456 76 yrs. Old |
President and CEO
|
since 2012 |
Currently performs various services on behalf of SEI for which Mr. Nesher is compensated. |
N/A |
N/A |
Glenn R. Kurdziel3 One Freedom Valley Drive Oaks, PA 19456 49 yrs. old |
Controller and Chief Financial Officer |
since 2023 |
Controller and Chief Financial Officer of SEI Daily Income Trust, SEI Tax Exempt Trust, SEI Institutional Managed Trust, SEI Institutional International Trust, SEI Asset Allocation Trust, SEI Institutional Investments Trust, Adviser Managed Trust, New Covenant Funds, SEI Catholic Values Trust and SEI Exchange Traded Funds since August 2023. Assistant Controller of SEI Daily Income Trust, SEI Tax Exempt Trust, SEI Institutional Managed Trust, SEI Institutional International Trust, SEI Asset Allocation Trust, SEI Institutional Investments Trust, Adviser Managed Trust, New Covenant Funds and SEI Catholic Values Trust from 2017 to 2023. Assistant Controller of SEI Exchange Traded Funds from 2022 to 2023. Senior Manager, Funds Accounting, SEI Investments Global Funds Services from 2005-2023. |
N/A |
N/A |
Stephen Panner One Freedom Valley Drive Oaks, PA 19456 53 yrs. old |
Chief Compliance Officer |
since 2022 |
Chief Compliance Officer of SEI Asset Allocation Trust, SEI Daily Income Trust, SEI Institutional Investments Trust, SEI Institutional International Trust, SEI Institutional Managed Trust, SEI Tax Exempt Trust, Adviser Managed Trust, New Covenant Funds, SEI Catholic Values Trust, SEI Exchange Traded Funds, SEI Structured Credit Fund, L.P., The Advisors' Inner Circle Fund, The Advisors' Inner Circle Fund II, The Advisors' Inner Circle Fund III, Bishop Street Funds, Frost Family of Funds, Gallery Trust, Delaware Wilshire Private Markets Fund, Delaware Wilshire Private Markets Master Fund, Delaware Wilshire Private Markets Tender Fund and Catholic Responsible Investments Funds since September 2022. Fund Compliance Officer of SEI Investments Company from February 2011 to September 2022. Fund Accounting Director and CFO and Controller for the SEI Funds from July 2005 to February 2011. |
N/A |
N/A |
Timothy D Barto One Freedom Valley Drive Oaks, PA 19456 55 yrs. old |
Vice President and Secretary |
since 2012 |
Vice President and Secretary of SEI Institutional Transfer Agent, Inc. since 2009. General Counsel and Secretary of SIMC since 2004. Vice President of SIMC and the Administrator since 1999. Vice President and Assistant Secretary of SEI since 2001. |
N/A |
N/A |
David F. McCann One Freedom Valley Drive, Oaks, PA 19456 47 yrs. old |
Vice President and Assistant Secretary |
since 2012 |
General Counsel and Secretary of SEI Institutional Transfer Agent, Inc. since 2020. Vice President and Assistant Secretary of SEI Institutional Transfer Agent, Inc. from 2009-2020. Vice President and Assistant Secretary of SIMC since 2008. Attorney, Drinker Biddle & Reath, LLP (law firm), May 2005 - October 2008. |
N/A |
N/A |
Katherine Mason One Freedom Valley Drive, Oaks, PA 19456 43 yrs. old |
Vice President and Assistant Secretary |
since 2022 |
Consulting Attorney, Hirtle, Callaghan & Co. from October 2021 – June 2022. Attorney, Stradley Ronon Stevens & Young from September 2007 – July 2012. |
N/A |
N/A |
Stephen G. MacRae One Freedom Valley Drive, Oaks, PA 19456 55 yrs. old |
Vice President |
since 2012 |
Director of Global Investment Product Management since January 2004. |
N/A |
N/A |
Donald Duncan One Freedom Valley Drive Oaks, PA 19456 59 yrs. old |
Anti-Money Laundering Compliance Officer and Privacy Officer |
since 2023 |
Anti-Money Laundering Compliance Officer and Privacy Officer of SEI Asset Allocation Trust, SEI Institutional International Trust, SEI Institutional Investments Trust, SEI Institutional Managed Trust, SEI Tax Exempt Trust, Adviser Managed Trust, New Covenant Funds, SEI Catholic Values Trust, SEI Exchange Traded Funds since 2023. Chief Compliance Officer and Global Head of Anti-Money Laundering Strategy of SEI Investments Company since January 2023. Head of Global Anti-Money Laundering Program for Hamilton Lane Advisors, LLC from August 2021 until December 2022. Senior VP and Supervising Principal of Hamilton Lane Securities, LLC from June 2016 to August 2021. Senior Director at AXA-Equitable from June 2011 until May 2016. Senior Director at PRUCO Securities, a subsidiary of Prudential Financial, Inc. from October 2005 until December 2009. |
N/A |
N/A |
TRUSTEES AND OFFICERS OF THE TRUST (Unaudited) (Concluded)
1 |
Each trustee shall hold office during the lifetime of this Trust until the election and qualification of his or her successor, or until he or she sooner dies, resigns or is removed in accordance with the Trust’s Declaration of Trust. |
2 |
The Fund Complex includes the following Trusts: SEI Asset Allocation Trust, SEI Daily Income Trust, SEI Institutional Investments Trust, Adviser Managed Trust, SEI Institutional International Trust, SEI Institutional Managed Trust, SEI Tax Exempt Trust, SEI Catholic Values Trust, New Covenant Funds and SEI Exchange Traded Funds. |
3 Prior to August 2, 2023, Ankit Puri served as the Controller and Chief Financial Officer.
DISCLOSURE OF FUND EXPENSES (Unaudited)
July 31, 2023
All mutual funds have operating expenses. As a shareholder of a fund, your investment is affected by these ongoing costs, which include (among others) costs for portfolio management, administrative services, and shareholder reports like this one. It is important for you to understand the impact of these costs on your investment returns.
Operating expenses such as these are deducted from the fund’s gross income and directly reduce your final investment return. These expenses are expressed as a percentage of the fund’s average net assets; this percentage is known as the fund’s expense ratio.
The following examples use the expense ratio and are intended to help you understand the ongoing costs (in dollars) of investing in your fund and to compare these costs with those of other mutual funds. The examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period (February 1, 2023 through July 31, 2023).
The table on this page illustrates your fund’s costs in two ways:
Actual fund return: This section helps you to estimate the actual expenses after fee waivers that your Fund incurred over the period. The “Expenses Paid During Period” column shows the actual dollar expense cost incurred by a $1,000 investment in the Fund, and the “Ending Account Value” number is derived from deducting that expense cost from the Fund’s gross investment return.
You can use this information, together with the actual amount you invested in the Fund, to estimate the expenses you paid over that period. Simply divide your actual account value by $1,000 to arrive at a ratio (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply that ratio by the number shown for your Fund under “Expenses Paid During Period.”
Hypothetical 5% return: This section helps you compare your Fund’s costs with those of other mutual funds. It assumes that the fund had an annual 5% return before expenses during the year, but that the expense ratio (Column 3) for the period is unchanged. This example is useful in making comparisons because the Securities and Exchange Commission requires all mutual funds to make this 5% calculation. You can assess your Fund’s comparative cost by comparing the hypothetical result for your Fund in the “Expenses Paid During Period” column with those that appear in the same charts in the shareholder reports for other funds.
NOTE: Because the return is set at 5% for comparison purposes — NOT your Fund’s actual return — the account values shown may not apply to your specific investment.
|
* Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 181/365 (to reflect the period shown). |
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LIQUIDITY RISK MANAGEMENT PROGRAM (Unaudited)
July 31, 2023
Pursuant to Rule 22e-4 under the 1940 Act, the Trust, on behalf of the Funds, has adopted a liquidity risk management program (the “Program”) to govern the Trust’s approach to managing liquidity risk. The Program is overseen by the SIMC Liquidity Risk Oversight Committee, and the Program’s principal objectives include assessing, managing and periodically reviewing the Funds’ liquidity risk, based on factors specific to the circumstances of the Funds.
At a meeting of the Board held on March 20-22, 2023, the Trustees received a report from the SIMC Liquidity Risk Oversight Committee addressing the operations of the Program and assessing its adequacy and effectiveness of implementation for the series that were operational during the review period. The SIMC Liquidity Risk Oversight Committee determined, and reported to the Board, that the Program remains reasonably designed to assess and manage the Funds’ liquidity risk and that the Program adequately and effectively managed the Funds’ liquidity risk during the 2022 calendar year. The SIMC Liquidity Risk Oversight Committee also reported that with respect to the Trust there were no reportable liquidity events during the period and discussed the liquidity classification of an underlying exchange-traded fund that had low trade volume but was nonetheless determined to be sufficiently liquid as a result of the potential to redeem its shares through an authorized participant. The SIMC Liquidity Risk Oversight Committee noted that additional monitoring processes, including manual reviews of upcoming market closures, have been implemented.
There can be no assurance that the Program will achieve its objectives in the future. Please refer to the prospectus for more information regarding each Fund’s exposure to liquidity risk and other principal risks to which an investment in the Fund may be subject.
BOARD OF TRUSTEES’ CONSIDERATIONS IN APPROVING THE ADVISORY AND SUB-ADVISORY AGREEMENT (Unaudited)
Adviser Managed Trust (the “Trust”) and SEI Investments Management Corporation (“SIMC”) have entered into an investment advisory agreement (the “Advisory Agreement”), pursuant to which SIMC provides investment advisory services to the various series of the Trust (the “Funds”). Pursuant to a separate sub-advisory agreement with SIMC (the “Sub-Advisory Agreement” and, together with the Advisory Agreement, the “Investment Advisory Agreements”), and under the supervision of SIMC and the Trust’s Board of Trustees (each member, a “Trustee” and, collectively, the “Trustees” or the “Board”), SSGA Funds Management, Inc. (the “Sub-Adviser”) is contractually engaged to provide security selection and certain other advisory services with respect to all or a discrete portion of the assets of two series of the Trust: the Diversified Equity Fund and the Core Fixed Income Fund (although the latter has not yet commenced operations). The Sub-Adviser is also responsible for managing its employees who provide services to the Funds. The Sub-Adviser was selected based primarily upon the research and recommendations of SIMC, which evaluates quantitatively and qualitatively the Sub-Adviser’s skills and investment results in managing assets for specific asset classes, investment styles and strategies.
The Investment Company Act of 1940, as amended (the “1940 Act”), requires that the initial approval of a Fund’s Investment Advisory Agreements be specifically approved by the vote of a majority of the outstanding shareholders of the Fund and the vote of a majority of the Trustees who are not parties to the Investment Advisory Agreements or “interested persons” of any party (the “Independent Trustees”) cast in person (or otherwise, as consistent with applicable laws, regulations and related guidance and relief) at a meeting called for such purpose. In addition, the 1940 Act requires that the continuation or renewal of any Investment Advisory Agreement be approved at least annually (after an initial period of up to two years), which also requires the vote of a majority of the Board, including a majority of the Independent Trustees. In connection with their consideration of such renewals, the Funds’ Trustees must request and evaluate, and SIMC and the Sub-Adviser are required to furnish, such information as may be reasonably necessary to evaluate the terms of the Investment Advisory Agreements. In addition, the Securities and Exchange Commission takes the position that, as part of their fiduciary duties with respect to a mutual fund’s fees, mutual fund boards are required to evaluate the material factors applicable to a decision to renew an Investment Advisory Agreement.
Consistent with these responsibilities, the Board calls and holds meetings each year to consider whether to approve new and/or renew existing Investment Advisory Agreements between the Trust and SIMC and SIMC and the Sub-Adviser with respect to the Funds. In preparation for these meetings, the Board requests and reviews a wide variety of materials provided by SIMC and the Sub-Adviser, including information about SIMC’s and the Sub-Adviser’s affiliates, personnel and operations and the services provided pursuant to the Investment Advisory Agreements. The Board also receives data from third parties. This information is provided in addition to the detailed information about the Funds that the Board reviews during the course of each year, including information that relates to Fund operations and Fund performance. The Trustees also receive a memorandum from counsel regarding the responsibilities of Trustees in connection with their consideration of whether to renew the Trust’s Investment Advisory Agreements. Finally, the Independent Trustees receive advice from independent counsel to the Independent Trustees, meet in executive sessions outside the presence of Fund management and participate in question and answer sessions with representatives of SIMC and the Sub-Adviser.
Specifically, during the course of the Trust’s fiscal year, the Board requested and received written materials from SIMC and the Sub-Adviser regarding: (i) the quality of SIMC’s and the Sub-Adviser’s investment management and other services; (ii) SIMC’s and the Sub-Adviser’s investment management personnel; (iii) SIMC’s and the Sub-Adviser’s operations and financial condition; (iv) SIMC’s and the Sub-Adviser’s brokerage practices (including any soft dollar arrangements) and investment strategies; (v) the level of the advisory fees that SIMC charges the Funds and the level of the sub-advisory fees that SIMC pays the Sub-Adviser, compared with fees each charge to comparable accounts; (vi) the advisory fees charged by SIMC and the Funds’ overall fees and operating expenses compared with peer groups of mutual funds prepared by Broadridge, an independent provider of investment company data that was engaged to prepare an assessment in connection with the renewal of the Investment Advisory Agreements (the “Broadridge Report”); (vii) the level of SIMC’s and the Sub-Adviser’s profitability; (viii) SIMC’s and the Sub-Adviser’s compliance program, including a description of material compliance matters and material compliance violations; (ix) SIMC’s potential economies of scale; (x) SIMC’s and the Sub-Adviser’s policies on and compliance procedures for personal securities transactions; (xi) SIMC’s and the Sub-Adviser’s expertise and resources in domestic and/or international financial markets; and (xii) the Funds’ performance, where available, over various periods of time compared with benchmark indexes and peer groups of mutual funds prepared by Broadridge.
Although the Core Fixed Income Fund is not currently operational, each of the Diversified Equity Fund and the Enhanced Fixed Income Fund has commenced operations (on March 30, 2022 and February 1, 2023, respectively). The Advisory Agreement (with respect to all three Funds) and the Sub-Advisory Agreement (with respect to the Diversified Equity Fund and the Core Fixed Income Fund) were approved for an initial two-year period (subject to annual renewals thereafter) at a
meeting of the Board held on June 21-23, 2021. Currently, SIMC directly manages the assets of the Enhanced Fixed Income Fund without a sub-adviser.
At the March 20-22, 2023 meeting of the Board, the Trustees, including a majority of the Independent Trustees, approved the renewal of the Advisory Agreement and the Sub-Advisory Agreement. In each case, the Board’s renewal was based on its consideration and evaluation of the factors described above, as discussed at the meeting and at prior meetings. With respect to the Enhanced Income Fund, because it had only recently commenced operations, performance information and other data available to the Board was more limited than with respect to Diversified Equity Fund. Also, with respect to the Sub-Advisory Agreement, because the Core Fixed Income Fund has not yet commenced operations, the data available to the Board with respect to the Sub-Adviser was more heavily weighted toward the Diversified Equity Fund. The following discusses some, but not all, of the factors that were considered by the Board in connection with its assessment of the Investment Advisory Agreements.
Nature, Extent and Quality of Services. The Board considered the nature, extent and quality of the services provided or to be provided by SIMC and the Sub-Adviser to the Funds and the resources of SIMC and the Sub-Adviser and their affiliates dedicated to the Funds. In this regard, the Trustees evaluated, among other things, SIMC’s and the Sub-Adviser’s personnel, experience, track record and compliance program. Following evaluation, the Board concluded that, within the context of its full deliberations, the nature, extent and quality of services provided or to be provided by SIMC and the Sub-Adviser to the Funds and the resources of SIMC and the Sub-Adviser and their affiliates dedicated to the Funds were sufficient to support the renewal of the Investment Advisory Agreements. In addition to advisory services, the Board considered the nature and quality of certain administrative, transfer agency and other non-investment advisory services provided or to be provided to the Funds by SIMC and/or its affiliates.
Performance. In determining whether to renew SIMC’s Advisory Agreement, the Trustees considered the Diversified Equity Fund’s performance relative to its peer groups and appropriate indexes/benchmarks. The Trustees reviewed performance information for the Fund, noting that they receive performance reports that permit them to monitor the Fund’s performance at board meetings throughout the year. As part of this review, the Trustees considered the composition of each peer group and selection criteria. In assessing Fund performance, the Trustees considered the Broadridge Report, which included metrics on net total return for the Fund and a universe of comparable funds. Based on the materials considered and discussed at the meeting, the Trustees found that although performance of the Fund for the period of March 30, 2022 to December 31, 2022 was materially below its peer group, the Trustees were satisfied with the reasons provided to explain such performance. In connection with the renewal of the Sub-Advisory Agreement, the Board considered the performance of the Sub-Adviser relative to appropriate indexes/benchmarks. Following evaluation, the Board concluded that, within the context of its full deliberations, the performance of the Adviser was sufficient to support renewal of SIMC’s Advisory Agreement, and the performance of the Sub-Adviser was sufficient to support the renewal of the Sub-Advisory Agreement.
Fees. With respect to the Funds’ expenses under the Investment Advisory Agreements, the Trustees considered the rate or proposed rate of compensation called for by the Investment Advisory Agreements and the Funds’ net operating expense ratios or projected net operating expense ratios in comparison to those of the Funds’ respective peer groups. In assessing Fund expenses, the Trustees considered the information in the Broadridge Report, which included with respect to the Diversified Equity Fund various metrics related to fund expenses, including, but not limited to, actual management fees (including transfer agent expenses), and actual total expenses for the Fund and a universe of comparable funds. Based on the materials considered and discussion at the meeting, the Trustees further determined that fees were either shown to be below the peer average in the comparative fee analysis, or that there was a reasonable basis for the fee level. The Trustees also considered the effects of SIMC’s and its affiliates’ contractual and voluntary waivers of management and other fees to prevent total Fund operating expenses from exceeding any applicable cap, and concluded that SIMC, through waivers, would maintain the Funds’ net operating expenses at competitive levels for its distribution channels. The Board also took into consideration compensation earned or that would be earned from the Funds by SIMC or its affiliates for non-advisory services, such as administration, transfer agency, shareholder services or brokerage, and considered whether SIMC and its affiliates may have realized or would realize other benefits from their relationship with the Funds, such as any research and brokerage services received under soft dollar arrangements. When considering fees paid or to be paid to the Sub-Adviser, the Board took into account the fact that the Sub-Adviser is compensated or would be compensated by SIMC and not by the applicable Funds directly, and that such compensation with respect to any unaffiliated Sub-Adviser reflects an arms-length negotiation between the Sub-Adviser and SIMC. Following evaluation, the Board concluded that, within the context of its full deliberations, the expenses or projected expenses of the Funds are reasonable and supported the renewal of the
BOARD OF TRUSTEES’ CONSIDERATIONS IN APPROVING THE ADVISORY AND SUB-ADVISORY AGREEMENT (Unaudited) (Concluded)
Investment Advisory Agreements. The Board also considered whether the Sub-Adviser and its affiliates may have realized or would realize other benefits from their relationship with the Funds, such as any research and brokerage services received under soft dollar arrangements.
Profitability. With regard to profitability, the Trustees considered compensation flowing or proposed to be flowing to SIMC and the Sub-Adviser and their affiliates, directly or indirectly. The Trustees considered whether the levels of compensation and profitability or proposed levels were reasonable. As with the fee levels, when considering the profitability of the Sub-Adviser, the Board took into account the fact that compensation with respect to the unaffiliated Sub-Adviser reflects an arms-length negotiation between the Sub-Adviser and SIMC. In connection with the renewal of the Sub-Advisory Agreement, the Board also took into consideration the impact that the fees paid or to be paid to the Sub-Adviser have or would have on SIMC’s advisory fee margin and profitability. Based on this evaluation, the Board concluded that, within the context of its full deliberations, the profitability or estimated profitability of SIMC and the Sub-Adviser individually is reasonable and supported the renewal of each Investment Advisory Agreement.
Economies of Scale. With respect to the Advisory Agreement, the Trustees considered whether any economies of scale were being realized by SIMC and its affiliates and, if so, whether the benefits of such economies of scale were passed along to the Funds’ shareholders through a graduated investment advisory fee schedule or other means, including any fee waivers by SIMC and its affiliates. The Trustees recognized that economies of scale are difficult to identify and quantify and are rarely identifiable on a fund-by-fund basis. Based on this evaluation, the Board determined that the fees were reasonable in light of the information that was provided by SIMC with respect to economies of scale.
Based on the Trustees’ deliberation and their evaluation of the information described above, the Board, including all of the Independent Trustees, with the assistance of Fund counsel and Independent Trustees’ counsel, unanimously approved the renewal of the Investment Advisory Agreements and concluded that the compensation under the Investment Advisory Agreements is fair and reasonable in light of such services and expenses and such other matters as the Trustees considered to be relevant in the exercise of their reasonable judgment. In the course of its deliberations, the Board did not identify any particular factor (or conclusion with respect thereto) or single piece of information that was all-important, controlling or determinative of its decision, but considered all of the factors together, and each Trustee may have attributed different weights to the various factors (and conclusions with respect thereto) and information.
NOTICE TO SHAREHOLDERS (Unaudited)
For shareholders that do not have a July 31, 2023 taxable year end, this notice is for informational purposes only. For shareholders with a July 31, 2023 year end, please consult your tax advisor as to the pertinence of this notice.
For the fiscal year ended July 31, 2023, the Fund is designating the following items with regard to distributions paid during the year:
Fund |
(A) |
(B) |
(C) |
Total |
(D) |
|||||||||||||||
Diversified Equity Fund |
0.00% | 0.00% | 0.00% | 0.00% | 0.00% | |||||||||||||||
Enhanced Fixed Income Fund |
0.00% | 1.27% | 98.73% | 100.00% | 0.00% | |||||||||||||||
Fund |
(E) |
(F) |
Interest |
Short-Term |
Qualifying Business Income Deduction(6) |
|||||||||||||||
Diversified Equity Fund |
0.00% | 0.00% | 0.00% | 0.00% | 0.00% | |||||||||||||||
Enhanced Fixed Income Fund |
0.00% | 0.00% | 0.42% | 0.00% | 0.00% |
(1) Qualifying dividends represent dividends which qualify for the corporate dividends received deduction.
(2) The percentage in this column represents the amount of “Qualifying Dividend Income” is reflected as a percentage of “Ordinary Income Distributions.” It is the intention of each of the aforementioned funds to designate the maximum amount permitted by the law. The information reported herein may differ from the information and distributions taxable to the shareholders for the calendar year ending December 31, 2023. Complete information will be computed and reported in conjunction with your 2023 Form 1099-DIV.
(3) The percentage of this column represents the amount of ordinary dividend income that qualified for 20% Business Income Deduction.
(4) “U.S. Government Interest” represents the amount of interest that was derived from direct U.S. Government obligations and distributed during the fiscal year. This amount is reflected as a percentage of total ordinary income distributions (the total of short term capital gain and net investment income distributions). Generally, interest from direct U.S. Government obligations is exempt from state income tax. However, for shareholders who are residents of California, Connecticut and New York, the statutory threshold requirements were not satisfied to permit exemption of these amounts from state income.
(5) The percentage in this column represents the amount of “Interest Related Dividend” and is reflected as a percentage of net investment income distributions that is exempt from U.S. withholding tax when paid to foreign investors.
(6) The percentage in this column represents the amount of “Short-Term Capital Gain” and is reflected as a percentage of short-term capital gain distributions that is exempt from U.S. withholding tax when paid to foreign investors.
Items (A), (B) and (C) are based on the percentage of the Fund’s total distribution.
Items (D) and (E) are based on the percentage of ordinary income distributions of the Fund. Item (F) is based on the percentage of gross income of the Fund.
Please consult your tax adviser for proper treatment of this information. This notification should be kept with your permanent tax records.
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ADVISER MANAGED TRUST ANNUAL REPORT JULY 31, 2023
AMT (7/23)
Item 2. Code of Ethics.
The Registrant has adopted a code of ethics that applies to the Registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions.
Item 3. Audit Committee Financial Expert.
(a)(1) The Registrant's Board of Trustees has determined that the Registrant has two audit committee financial experts serving on the audit committee.
(a)(2) The audit committee financial experts are Susan C. Cote and Hubert L. Harris, Jr. Ms. Cote and Mr. Harris are independent as defined in Form N-CSR Item 3 (a) (2).
Item 4. Principal Accountant Fees and Services.
Fees billed by KPMG LLP ("KPMG") related to the Registrant.
KPMG billed the Registrant aggregate fees for services rendered to the Registrant for the fiscal years 2023 and 2022 as follows:
Fiscal Year 2023 | Fiscal Year 2022 | ||||||
All fees and services to the Registrant that were pre-approved | All fees and services to service affiliates that were pre-approved | All other fees and services to service affiliates that did not require pre-approval | All fees and services to the Registrant that were pre-approved | All fees and services to service affiliates that were pre-approved | All other fees and services to service affiliates that did not require pre-approval | ||
(a) |
Audit Fees(1) |
$42,000 |
$0 |
N/A | $30,000 |
$0 |
N/A |
(b) |
Audit-Related Fees |
$0
|
$0
|
$0 |
$0
|
$0
|
$0 |
(c) |
Tax Fees |
$0 |
$0 |
$0 | $0 |
$0 |
$0 |
(d) |
All Other Fees(2) |
$0 |
$347,000 |
$0 | $0 |
$331,000 |
$0 |
Notes:
(1) | Audit fees include amounts related to the audit of the Registrant's annual financial statements and services normally provided by the accountant in connection with statutory and regulatory filings. |
(2) | See Item 4 (g) for a description of the services comprising the fees disclosed in this category. |
(e)(1) The Registrant's Audit Committee has adopted and the Board of Trustees has ratified an Audit and Non-Audit Services Pre-Approval Policy (the "Policy"), which sets forth the procedures and the conditions pursuant to which services proposed to be performed by the independent auditor of the Registrant may be pre-approved. In any instance where services require pre-approval, the Audit Committee will consider whether such services are consistent with SEC's rules on auditor independence and whether the provision of such services would compromise the auditor's independence.
The Policy provides that all requests or applications for proposed services to be provided by the independent auditor must be submitted to the Registrant's Chief Financial Officer ("CFO") and must include a detailed description of the services proposed to be rendered. The CFO will determine whether such services: (1) require specific pre-approval; (2) are included within the list of services that have received the general pre-approval of the Audit Committee pursuant to the Policy; or (3) have been previously pre-approved in connection with the independent auditor's annual engagement letter for the applicable year or otherwise.
Requests or applications to provide services that require specific pre-approval by the Audit Committee will be submitted to the Audit Committee by the CFO. The Audit Committee has delegated specific pre-approval authority to either the Audit Committee Chair or financial experts, provided that the estimated fee for any such proposed pre-approved service does not exceed $100,000 and any pre-approval decisions are reported to the Audit Committee at its next regularly scheduled meeting.
Services that have received the general pre-approval of the Audit Committee are identified and described in the Policy. In addition, the Policy sets forth a maximum fee per engagement with respect to each identified service that has received general pre-approval. The Audit Committee will annually review and pre-approve the services that may be provided by the independent auditor during the following twelve months without obtaining specific pre-approval from the Audit Committee.
The Audit Committee will be informed by the CFO on a quarterly basis of all services rendered by the independent auditor.
All services to be provided by the independent auditor shall be provided pursuant to a signed written engagement letter with the Registrant, the investment advisor or applicable control affiliate (except that matters as to which an engagement letter would be impractical because of timing issues or because the matter is small may not be the subject of an engagement letter) that sets forth both the services to be provided by the independent auditor and the total fees (or the manner of their determination) to be paid to the independent auditor for those services.
In addition, the Audit Committee has determined to take additional measures on an annual basis to meet its responsibility to oversee the work of the independent auditor and to assure the auditor's independence from the Registrant, such as reviewing a formal written statement from the independent auditor delineating all relationships between the independent auditor and the Registrant, and discussing with the independent auditor its methods and procedures for ensuring independence.
(e)(2) Percentage of fees billed applicable to non-audit services pursuant to waiver of pre-approval requirement were as follows:
Fiscal Year 2023 | Fiscal Year 2022 | |
Audit-Related Fees |
0% | 0% |
Tax Fees | 0% | 0% |
All Other Fees |
0% | 0% |
(f) Not Applicable.
(g) The aggregate non-audit fees and services billed by KPMG for the fiscal years 2023 and 2022 were $347,000 and $331,000, respectively. Non-audit fees consist of SSAE No. 16 review of fund accounting and administration operations and an attestation report in accordance with Rule 17Ad-13.
(h) During the past fiscal year, Registrant's principal accountant provided certain non-audit services to Registrant's investment adviser or to entities controlling, controlled by, or under common control with Registrant's investment adviser that provide ongoing services to Registrant that were not subject to pre-approval pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X. The Audit Committee of Registrant's Board of Trustees reviewed and considered these non-audit services provided by Registrant's principal accountant to Registrant's affiliates, including whether the provision of these non-audit services is compatible with maintaining the principal accountant's independence.
(i) Not applicable.
(j) Not applicable.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments
The Schedules of Investments are included as part of the Report to Shareholders filed under Item 1 of this form.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant's Board of Trustees (the "Board"). The Registrant has a standing Governance Committee (the "Committee") currently consisting of the Independent Trustees. The Committee is responsible for evaluating and recommending nominees for election to the Board. Pursuant to the Committee's Charter, adopted on June 18, 2004, as amended, the Committee will review all shareholder recommendations for nominations to fill vacancies on the Board if such recommendations are submitted in writing and addressed to the Committee at the Registrant's office.
Item 11. Controls and Procedures.
(a) The Registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the "1940 Act") are effective based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 as of a date within 90 days of the filing date of this report.
(b) There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 13. Exhibits.
(a)(1) Code of Ethics attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Adviser Managed Trust | ||
By | /s/ Robert A. Nesher | |
Robert A. Nesher | ||
President & CEO |
Date: October 6, 2023
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
By | /s/ Robert A. Nesher | |
Robert A. Nesher | ||
President & CEO | ||
Date: October 6, 2023 |
By | /s/ Glenn R. Kurdziel | |
Glenn R. Kurdziel | ||
Controller & CFO | ||
Date: October 6, 2023 |
SEI TAX EXEMPT TRUST
SEI DAILY INCOME TRUST
SEI INSTITUTIONAL MANAGED TRUST
SEI INSTITUTIONAL INTERNATIONAL TRUST
SEI ASSET ALLOCATION TRUST
SEI INSTITUTIONAL INVESTMENTS TRUST
ADVISER MANAGED TRUST
NEW COVENANT FUNDS
SEI CATHOLIC VALUES TRUST
SEI EXCHANGE TRADED FUNDS
SEI CAYMAN FOREIGN CORPORATIONS
Financial Officer Code of Ethics
1. | Introduction |
The reputation and integrity of SEI Tax Exempt Trust, SEI Daily Income Trust, SEI Institutional Managed Trust, SEI Institutional International Trust, SEI Asset Allocation Trust, SEI Institutional Investments Trust, Adviser Managed Trust, New Covenant Funds, SEI Catholic Values Trust, SEI Exchange Traded Funds and SEI Cayman Foreign Corporations (each a “Trust” and, collectively, the “Trusts”) are valuable assets that are vital to the each Trust’s success. The Trusts’ senior financial officers (“SFOs”) are responsible for conducting the Trusts’ business in a manner that demonstrates a commitment to the highest standards of integrity. The Trusts’ SFOs include the principal executive officer, the principal financial officer, comptroller or principal accounting officer, and any person who performs a similar function.
The Sarbanes-Oxley Act of 2002 (the “Act”) effected sweeping corporate disclosure and financial reporting reform on public companies, including mutual funds, to address corporate malfeasance and assure investors that the companies in which they invest are accurately and completely disclosing financial information. Under the Act, all public companies (including the Trusts) must either have a code of ethics for their SFOs, or disclose why they do not. The Act was intended to foster corporate environments which encourage employees to question and report unethical and potentially illegal business practices. Each Trust has chosen to adopt this Financial Officer Code of Ethics (the “Code”) to encourage its SFOs to act in a manner consistent with the highest principles of ethical conduct.
2. | Purposes of the Code |
The purposes of this Code are:
To promote honest and ethical conduct by each Trust’s SFOs, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships; |
To assist each Trust’s SFOs in recognizing and avoiding conflicts of interest, including disclosing to an appropriate person any material transaction or relationship that reasonably could be expected to give rise to such a conflict; |
To promote full, fair, accurate, timely, and understandable disclosure in reports and documents that the Trusts file with, or submit to, the SEC and in other public communications made by the Trusts; |
To promote compliance with applicable laws, rules, and regulations; |
To encourage the prompt internal reporting to an appropriate person of violations of this Code; and |
To establish accountability for adherence to this Code. |
3. | Questions about this Code |
Each Trust’s compliance officer designated to oversee compliance with the Trust’s Code of Ethics adopted pursuant to Rule 17j-1 shall serve as Compliance Officer for the implementation and administration of this Code. You should direct your questions about this Code to the Compliance Officer.
4. | Conduct Guidelines |
Each Trust has adopted the following guidelines under which the Trust’s SFOs must perform their official duties and conduct the business affairs of the Trust.
a) | Ethical and honest conduct is of paramount importance. Each Trust’s SFOs must act with honesty and integrity and avoid violations of this Code, including the avoidance of actual or apparent conflicts of interest with the Trust in personal and professional relationships. |
b) | SFOs must disclose material transactions or relationships. Each Trust’s SFOs must disclose to the Compliance Officer any actual or apparent conflicts of interest the SFO may have with the Trust that reasonably could be expected to give rise to any violations of this Code. Such conflicts of interest may arise as a result of material transactions or business or personal relationships to which the SFO may be a party. If it is not possible to disclose the matter to the Compliance Officer, it should be disclosed to the Trust’s Chief Financial Officer, Chief Executive Officer or another appropriate person. In addition to disclosing any actual or apparent conflicts of interest in which an SFO is personally involved, the Trusts’ SFOs have an obligation to report any other actual or apparent conflicts which they discover or of which they otherwise become aware. If you are unsure whether a particular fact pattern gives rise to a conflict of interest, or whether a particular transaction or relationship is “material,” you should bring the matter to the attention of the Compliance Officer. |
c) | Standards for quality of information shared with service providers of the Trusts. Each Trust’s SFOs must at all times seek to provide information to the Trust’s service providers (adviser, administrator, outside auditor, outside counsel, custodian, etc.) that is accurate, complete, objective, relevant, timely, and understandable. |
d) | Standards for quality of information included in periodic reports. Each Trust’s SFOs must at all times endeavor to ensure full, fair, timely, accurate, and understandable disclosure in the Trust’s periodic reports. |
e) | Compliance with laws. Each Trust’s SFOs must comply with the federal securities laws and other laws and rules applicable to the Trusts, such as the Internal Revenue Code. |
f) | Standard of care. Each Trust’s SFOs must at all times act in good faith and with due care, competence and diligence, without misrepresenting material facts or allowing your independent judgment to be subordinated. Each Trust’s SFOs must conduct the affairs of the Trust in a responsible manner, consistent with this Code. |
g) | Confidentiality of information. Each Trust’s SFOs must respect and protect the confidentiality of information acquired in the course of their professional duties, except when authorized by the Trust to disclose it or where disclosure is otherwise legally mandated. You may not use confidential information acquired in the course of your work for personal advantage. |
h) | Sharing of information and educational standards. Each Trust’s SFOs should share information with relevant parties to keep them informed of the business affairs of the Trust, as appropriate, and maintain skills important and relevant to the Trust’s needs. |
i) | Promote ethical conduct. Each Trust’s SFOs should at all times proactively promote ethical behavior among peers in your work environment. |
j) | Standards for recordkeeping. Each Trust’s SFOs must at all times endeavor to ensure that the Trust’s financial books and records are thoroughly and accurately maintained to the best of their knowledge in a manner consistent with applicable laws and this Code. |
5. | Waivers of this Code |
You may request a waiver of a provision of this Code by submitting your request in writing to the Compliance Officer for appropriate review. For example, if a family member works for a service provider that prepares a Trust’s financial statements, you may have a potential conflict of interest in reviewing those statements and should seek a waiver of this Code to review the work. An executive officer of each Trust, or another appropriate person (such as a designated Board or Audit Committee member), will decide whether to grant a waiver. All waivers of this code must be disclosed to the applicable Trust’s shareholders to the extent required by SEC rules.
6. | Affirmation of the Code |
Upon adoption of the Code, each Trust’s SFOs must affirm in writing that they have received, read and understand the Code, and annually thereafter must affirm that they have complied with the requirements of the Code. To the extent necessary, each Trust’s Compliance Officer will provide guidance on the conduct required by this Code and the manner in which violations or suspected violations must be reported and waivers must be requested.
7. | Reporting Violations |
In the event that an SFO discovers or, in good faith, suspects a violation of this Code, the SFO must immediately report the violation or suspected violation to the Compliance Officer. The Compliance Officer may, in his discretion, consult with another member of the Trust’s senior management or the Board in determining how to address the suspected violation. For example, a Code violation may occur when a periodic report or financial statement of a Trust omits a material fact, or is technically accurate but, in the view of the SFO, is written in a way that obscures its meaning.
SFOs who report violations or suspected violations in good faith will not be subject to retaliation of any kind. Reported violations will be investigated and addressed promptly and will be treated as confidential to the extent possible.
8. | Violations of the Code |
Dishonest or unethical conduct or conduct that is illegal will constitute a violation of this Code, regardless of whether this Code specifically refers to such particular conduct. A violation of this Code may result in disciplinary action, up to and including removal as an SFO of the Trust. A variety of laws apply to the Trusts and their operations, including the Securities Act of 1933, the Investment Company Act of 1940, state laws relating to duties owed by Trust officers, and criminal laws. The Trusts will report any suspected criminal violations to the appropriate authorities, and will investigate, address and report, as appropriate, non-criminal violations.
Dated: October 2022
Certification
Pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 and Section 302 of the Sarbanes-Oxley Act of 2002
I, Glenn R. Kurdziel, certify that:
1. I have reviewed this report on Form N-CSR of Adviser Managed Trust (Registrant);
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the Registrant as of, and for, the periods presented in this report;
4. The Registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the Registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal controls over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and
(d) Disclosed in this report any change in the Registrant's internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting; and
5. The Registrant's other certifying officer(s) and I have disclosed to the Registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize, and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control over financial reporting.
Date: October 6, 2023
/s/ Glenn R. Kurdziel | |
Glenn R. Kurdziel | |
Controller & CFO |
Certification
Pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 and Section 302 of the Sarbanes-Oxley Act of 2002
I, Robert A. Nesher, certify that:
1. I have reviewed this report on Form N-CSR of Adviser Managed Trust (Registrant);
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the Registrant as of, and for, the periods presented in this report;
4. The Registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the Registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and
(d) Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and
5. The Registrant's other certifying officer(s) and I have disclosed to the Registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize, and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control over financial reporting.
Date: October 6, 2023
/s/ Robert A. Nesher | |
Robert A. Nesher | |
President & CEO |
CERTIFICATION
Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906
of the Sarbanes-Oxley Act of 2002
The undersigned, the Controller & Chief Financial Officer of Adviser Managed Trust (the "Trust"), with respect to the Trust’s Report on Form N-CSR for the period ended July 31, 2023 as filed with the Securities and Exchange Commission, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:
1. such Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2. the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Trust.
Dated: October 6, 2023
/s/ Glenn R. Kurdziel | ||
Glenn R. Kurdziel, | ||
Controller & CFO |
CERTIFICATION
Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906
of the Sarbanes-Oxley Act of 2002
The undersigned, the President and Chief Executive Officer of Adviser Managed Trust (the "Trust"), with respect to the Trust's Report on Form N-CSR for the period ended July 31, 2023 as filed with the Securities and Exchange Commission, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:
1. such Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2. the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Trust.
Dated: October 6, 2023
/s/ Robert A. Nesher | ||
Robert A. Nesher, | ||
President & CEO |
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