Issue link: https://info.seic.com/i/1445430
SEI Portfolio Update: First Quarter 2023 | SEI Institutional International Trust (SIT) SIT-1 Portfolio Manager: Hardeep Khangura Emerging Markets Debt Fund (SIT) Benchmark performance prior to 7/1/12 is that of the prior benchmarks: JP Morgan EMBI+ from inception to 3/31/03, JP Morgan EMBI Global Index from 4/1/03-6/30/06, JP Morgan EMBI Global Diversified from 7/1/06-6/30/12. The performance data shown is past performance. Past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, please call 1-800-DIAL-SEI. Fee waivers are voluntary and may be discontinued at any time. Q. HOW DID THE FUND PERFORM AGAINST ITS INDEX FOR THE QUARTER, HARDEEP? A. The Fund returned 3.34% versus 3.51% for the 50/50 JPM EMBI Global Diversified & JPM GBI EM Global Diversified blended benchmark. Q. WHAT EFFECT DID YOUR POSITIONING AT THE END OF LAST QUARTER HAVE ON PERFORMANCE? A. The Fund outperformed its benchmark over the quarter. The long position in the Brazilian real added as fiscal policy appears to be coming more controlled than initial concerns suggested. A long in the Mexican peso and a Turkish lira short also added value. While Russian ruble exposure detracted as the currency continued to weaken. We hold legacy Russian Federal Loan Obligation (OFZ) bonds which we have been selling when there is market liquidity. The Fund's long positioning in hard currency beta proved costly. Ecuador was the significant detractor in this block of the portfolio. Colchester Global Investor's overweight in local interest rate duration outperformed as local rates declined. Virtus Fixed Income Advisers managed to stem its losses in March after having taken off some risk in the January rally to end the quarter nearly flat. Ninety One UK, despite being on the right side of the short U.S. Dollar trade for the quarter, was significantly hindered by its long South African rand positioning. Neuberger Berman also had a long high yield hard currency exposure which hindered. It managed to more than offset this by a long in interest rate duration and short U.S. dollar exposure. Marathon Asset Management added value through security selection and a bias to investing in investment-grade bonds, which outperformed. Q. WHAT IS YOUR OUTLOOK GOING FORWARD AND HOW IS THIS REFLECTED IN THE FUND POSITIONING? A. The U.S. dollar short position continues to be managed with a 1-3% range, while euro funding was reduced towards 50 basis points. The Fund's preferred FX shorts are in the Chilean peso, South African rand, and Turkish lira. Hungarian forint profits were taken and thus the allocation was reduced, as it was the largest overweight. Colombian peso, Thai baht, and Brazilian real continue to be currency long positions. The Fund is now explicitly long local duration having been near flat last in September 2022. South African rand is now the largest duration long, along with Brazilian real and South Korean won; these offer a combination of attractive real yields and are in the latter stages of their hiking cycle. The high-yield hard currency exposure remains in place given the considerable spread difference between investment grade and high yield credits. Corporate credit remains light in the Fund. INVESTMENT STRATEGY: The Emerging Markets Debt Fund seeks to maximize total return. It normally invests at least 80% of its assets in fixed income securities, primarily in U.S. dollar-denominated debt of government, government-related and corporate issuers in emerging market countries, as well as entities organized to restructure the debt of those issuers. Although it is a non- diversified strategy, the Fund will invest in a number of countries and industries in order to limit its exposure to a single emerging market economy. Apr-23 ###### Jan-00 Jan-00 Feb-00 Jan-00 Jan-00 Feb-00 Feb-00 Feb-00 Jan-00 Fund Since Inception 1 Mo 3 Mo Ytd Qtr 1 Yr 3 Yr 5 Yr 10 Yr Incept 2022 2021 Equity Funds SIT Emerging Markets Equity Fund 1/17/95 2.87 4.94 4.94 4.94 -10.09 8.40 -1.87 1.43 3.84 -21.49 -1.83 MSCI Emerging Markets Index (Net) (USD) 3.03 3.96 3.96 3.96 -10.70 7.83 -0.91 2.00 5.46 -20.09 -2.54 Expenses before waivers (%) = 1.81 Expenses after waivers (%) = 1.71 SIT International Equity Fund 12/20/89 2.14 9.38 9.38 9.38 -0.36 14.62 3.07 4.95 3.70 -15.96 9.96 MSCI EAFE Index (Net) (USD) 2.48 8.47 8.47 8.47 -1.38 12.99 3.52 5.00 4.42 -14.45 11.26 Expenses after waivers (%) = 1.09 Expenses after waivers (%) = 1.09 Bond Funds SIT Emerging Markets Debt Portfolio 6/26/97 2.33 3.34 3.34 3.34 -4.23 0.92 -2.60 -0.86 5.99 -15.44 -5.83 50/50 JPM EMBI Global Div & JPM GBI EM Global Div 2.54 3.51 3.51 3.51 -3.83 0.46 -1.44 0.29 5.86 -14.75 -5.32 Expenses before waivers (%) = 1.62 Expenses after waivers (%) = 1.36 SIT International Fixed Income Fund 9/1/93 1.83 2.58 2.58 2.58 -3.32 -1.86 0.21 1.53 3.56 -9.20 -2.20 as of 03/31/2023 as of 03/31/2023 Performance Performance Cumulative Total Return Annualized Total Return Calendar Funds' Summary Performance Trend Report SEI Institutional International Trust - Class F (Formerly Class A) Apr-23 ###### Jan-00 Jan-00 Feb-00 Jan-00 Jan-00 Feb-00 Feb-00 Feb-00 Jan-00 Fund Since Inception 1 Mo 3 Mo Ytd Qtr 1 Yr 3 Yr 5 Yr 10 Yr Incept 2022 2021 Equity Funds SIT Emerging Markets Equity Fund 1/17/95 2.87 4.94 4.94 4.94 -10.09 8.40 -1.87 1.43 3.84 -21.49 -1.83 MSCI Emerging Markets Index (Net) (USD) 3.03 3.96 3.96 3.96 -10.70 7.83 -0.91 2.00 5.46 -20.09 -2.54 Expenses before waivers (%) = 1.81 Expenses after waivers (%) = 1.71 SIT International Equity Fund 12/20/89 2.14 9.38 9.38 9.38 -0.36 14.62 3.07 4.95 3.70 -15.96 9.96 MSCI EAFE Index (Net) (USD) 2.48 8.47 8.47 8.47 -1.38 12.99 3.52 5.00 4.42 -14.45 11.26 Expenses after waivers (%) = 1.09 Expenses after waivers (%) = 1.09 Bond Funds SIT Emerging Markets Debt Portfolio 6/26/97 2.33 3.34 3.34 3.34 -4.23 0.92 -2.60 -0.86 5.99 -15.44 -5.83 50/50 JPM EMBI Global Div & JPM GBI EM Global Div 2.54 3.51 3.51 3.51 -3.83 0.46 -1.44 0.29 5.86 -14.75 -5.32 Expenses before waivers (%) = 1.62 Expenses after waivers (%) = 1.36 SIT International Fixed Income Fund 9/1/93 1.83 2.58 2.58 2.58 -3.32 -1.86 0.21 1.53 3.56 -9.20 -2.20 2.01 2.86 2.86 2.86 -3.27 -1.82 0.90 2.28 4.30 -9.76 -1.40 Expenses before waivers (%) = 1.07 Expenses after waivers (%) = 1.02 Bloomberg Global Aggregate ex-USD Index (USD Hedged) as of 03/31/2023 as of 03/31/2023 Performance Performance Cumulative Total Return Annualized Total Return Calendar Theperformance data shown is pastperformance. Pastperformance is noguarantee offutureresults. The investment return andprincipal value ofan investmentwillfluctuate sothat when redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. For performance data current end, please call 1-800-DIAL-SEI. Funds' Summary Performance Trend Report SEI Institutional International Trust - Class F (Formerly Class A) Apr-23 ###### Jan-00 Jan-00 Feb-00 Jan-00 Jan-00 Feb-00 Feb-00 Feb-00 Jan-00 Fund Since Inception 1 Mo 3 Mo Ytd Qtr 1 Yr 3 Yr 5 Yr 10 Yr Incept 2022 2021 Equity Funds SIT Emerging Markets Equity Fund 1/17/95 2.87 4.94 4.94 4.94 -10.09 8.40 -1.87 1.43 3.84 -21.49 -1.83 MSCI Emerging Markets Index (Net) (USD) 3.03 3.96 3.96 3.96 -10.70 7.83 -0.91 2.00 5.46 -20.09 -2.54 Expenses before waivers (%) = 1.81 Expenses after waivers (%) = 1.71 SIT International Equity Fund 12/20/89 2.14 9.38 9.38 9.38 -0.36 14.62 3.07 4.95 3.70 -15.96 9.96 MSCI EAFE Index (Net) (USD) 2.48 8.47 8.47 8.47 -1.38 12.99 3.52 5.00 4.42 -14.45 11.26 Expenses after waivers (%) = 1.09 Expenses after waivers (%) = 1.09 Bond Funds SIT Emerging Markets Debt Portfolio 6/26/97 2.33 3.34 3.34 3.34 -4.23 0.92 -2.60 -0.86 5.99 -15.44 -5.83 50/50 JPM EMBI Global Div & JPM GBI EM Global Div 2.54 3.51 3.51 3.51 -3.83 0.46 -1.44 0.29 5.86 -14.75 -5.32 Expenses before waivers (%) = 1.62 Expenses after waivers (%) = 1.36 SIT International Fixed Income Fund 9/1/93 1.83 2.58 2.58 2.58 -3.32 -1.86 0.21 1.53 3.56 -9.20 -2.20 as of 03/31/2023 as of 03/31/2023 Performance Performance Cumulative Total Return Annualized Total Return Calendar Funds' Summary Performance Trend Report SEI Institutional International Trust - Class F (Formerly Class A)