Issue link: https://info.seic.com/i/1445430
SEI Portfolio Update: First Quarter 2023 | SEI Tax-Exempt Trust (STET) STET-2 Portfolio Manager: Rich Bamford 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, RICH? A. The Fund returned 1.17% versus 1.06% for the Bloomberg 1 Year Municipal Bond Index (1-2). Q. WHAT EFFECT DID YOUR POSITIONING AT THE END OF LAST QUARTER HAVE ON PERFORMANCE? A. For the quarter, the Fund outperformed its benchmark. Municipals largely avoided the credit issues that plagued the taxable related to the banking sector as municipal finances remain on solid footing. An overweight to revenue bonds and underweight to general obligation bonds enhanced performance. Selection within transportation and housing added value. An overweight to BBB rated bonds contributed to performance, with lower-quality bonds underperforming amid the rally in municipals. Duration was slightly shorter and thus detracted from return as yields declined. Positioning in the three- to five-year segment of the yield curve enhanced performance with the yield flattening between one and three years. Q. WHAT IS YOUR OUTLOOK GOING FORWARD AND HOW IS THIS REFLECTED IN THE FUND POSITIONING? A. While the Fund's duration remains slightly short, its benchmark managers may look to extend it, with the Fed nearing the end of its rate-hiking cycle. We are also seeking to move up in credit quality and are looking to increase the allocation to BBBs though that is challenging given low supply and strong demand. The Fund maintains an overweight to the revenue sectors and is building a yield advantage versus the benchmark. Furthermore, the Fund favors revenue sectors given tight valuations in general obligation bonds. INVESTMENT STRATEGY: The Short Duration Municipal Fund seeks a high level of federal tax-exempt income that is consistent with the preservation of capital. The Fund invests substantially all (at least 80%) of its net assets in investment-grade municipal securities that generate income that is exempt from federal income taxes. The principal issuers of these securities are state and local governments and their agencies located in any of the fifty states, the District of Columbia, Puerto Rico and other U.S. territories and possessions. The Fund will maintain an average weighted duration of three years or less. Short Duration Municipal Fund (STET) Jan-00 Jan-00 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 Bond Funds STET Intermediate-Term Municipal Fund 9/5/89 1.68 2.28 2.28 2.28 -0.40 0.53 1.71 1.84 4.19 -8.35 1.61 2.04 2.40 2.40 2.40 1.63 0.71 2.18 2.27 4.78 -6.42 0.93 Expenses before waivers (%) = 0.80 Expenses after waivers (%) = 0.63 STET Short Duration Municipal Fund 11/13/03 0.87 1.17 1.17 1.17 1.14 0.54 0.85 0.59 1.31 -1.79 0.04 1.07 1.06 1.06 1.06 1.55 0.64 1.15 0.91 1.61 -1.13 0.31 Expenses before waivers (%) = 0.80 Expenses after waivers (%) = 0.63 STET California Municipal Bond Fund 8/19/98 2.02 2.12 2.12 2.12 1.25 0.00 1.24 1.41 3.27 -6.91 -0.25 Bloomberg CA Intermediate Muni Index (USD) 2.03 2.24 2.24 2.24 2.37 0.47 1.97 2.14 3.99 -5.90 0.02 Expenses before waivers (%) = 0.81 Expenses after waivers (%) = 0.60 STET Massachusetts Municipal Bond Fund 8/19/98 2.22 2.35 2.35 2.35 1.45 -0.19 1.41 1.35 3.27 -6.83 -0.87 Bloomberg MA Intermediate Muni Index (USD) 2.27 2.60 2.60 2.60 2.63 0.54 2.24 2.18 4.05 -5.82 -0.30 Expenses before waivers (%) = 0.82 Expenses after waivers (%) = 0.63 STET New Jersey Municipal Bond Fund 8/18/98 1.99 2.10 2.10 2.10 1.32 0.17 1.43 1.39 3.01 -5.81 -0.11 Bloomberg 3-10 Year Municipal Blend (2-12) (USD) 1.90 2.14 2.14 2.14 1.98 0.78 2.03 1.98 3.70 -5.33 0.58 Expenses before waivers (%) = 0.82 Expenses after waivers (%) = 0.60 STET New York Municipal Bond Fund 8/18/98 2.12 2.20 2.20 2.20 1.93 0.33 1.49 1.41 3.20 -5.63 0.28 Bloomberg NY Intermediate Muni Index (USD) 2.22 2.47 2.47 2.47 2.81 0.98 2.17 2.15 3.95 -5.12 0.79 Expenses before waivers (%) = 0.82 Expenses after waivers (%) = 0.60 STET Pennsylvania Municipal Bond Fund 8/26/98 2.01 1.89 1.89 1.89 0.64 -0.22 1.57 1.42 3.14 -6.90 -0.14 Bloomberg PA Intermediate Muni Index (USD) 1.98 2.43 2.43 2.43 1.84 0.87 2.62 2.45 4.08 -6.46 0.64 as of 03/31/2023 as of 03/31/2023 Bloomberg 3-15 Year Municipal Blend (2-17) (USD) Bloomberg 1 Year Municipal Bond Index (1-2) (USD) Performance Performance Cumulative Total Return Annualized Total Return Calendar Funds' Summary Performance Trend Report SEI Tax-Exempt Trust - Class F (Formerly Class A) Jan-00 Jan-00 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 Bond Funds STET Intermediate-Term Municipal Fund 9/5/89 1.68 2.28 2.28 2.28 -0.40 0.53 1.71 1.84 4.19 -8.35 1.61 2.04 2.40 2.40 2.40 1.63 0.71 2.18 2.27 4.78 -6.42 0.93 Expenses before waivers (%) = 0.80 Expenses after waivers (%) = 0.63 STET Short Duration Municipal Fund 11/13/03 0.87 1.17 1.17 1.17 1.14 0.54 0.85 0.59 1.31 -1.79 0.04 1.07 1.06 1.06 1.06 1.55 0.64 1.15 0.91 1.61 -1.13 0.31 Expenses before waivers (%) = 0.80 Expenses after waivers (%) = 0.63 STET California Municipal Bond Fund 8/19/98 2.02 2.12 2.12 2.12 1.25 0.00 1.24 1.41 3.27 -6.91 -0.25 Bloomberg CA Intermediate Muni Index (USD) 2.03 2.24 2.24 2.24 2.37 0.47 1.97 2.14 3.99 -5.90 0.02 Expenses before waivers (%) = 0.81 Expenses after waivers (%) = 0.60 STET Massachusetts Municipal Bond Fund 8/19/98 2.22 2.35 2.35 2.35 1.45 -0.19 1.41 1.35 3.27 -6.83 -0.87 Bloomberg MA Intermediate Muni Index (USD) 2.27 2.60 2.60 2.60 2.63 0.54 2.24 2.18 4.05 -5.82 -0.30 Expenses before waivers (%) = 0.82 Expenses after waivers (%) = 0.63 STET New Jersey Municipal Bond Fund 8/18/98 1.99 2.10 2.10 2.10 1.32 0.17 1.43 1.39 3.01 -5.81 -0.11 Bloomberg 3-10 Year Municipal Blend (2-12) (USD) 1.90 2.14 2.14 2.14 1.98 0.78 2.03 1.98 3.70 -5.33 0.58 Expenses before waivers (%) = 0.82 Expenses after waivers (%) = 0.60 as of 03/31/2023 as of 03/31/2023 Bloomberg 3-15 Year Municipal Blend (2-17) (USD) Bloomberg 1 Year Municipal Bond Index (1-2) (USD) Performance Performance Cumulative Total Return Annualized Total Return Calendar Funds' Summary Performance Trend Report SEI Tax-Exempt Trust - Class F (Formerly Class A) Jan-00 Jan-00 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 Bond Funds STET Intermediate-Term Municipal Fund 9/5/89 1.68 2.28 2.28 2.28 -0.40 0.53 1.71 1.84 4.19 -8.35 1.61 2.04 2.40 2.40 2.40 1.63 0.71 2.18 2.27 4.78 -6.42 0.93 Expenses before waivers (%) = 0.80 Expenses after waivers (%) = 0.63 STET Short Duration Municipal Fund 11/13/03 0.87 1.17 1.17 1.17 1.14 0.54 0.85 0.59 1.31 -1.79 0.04 1.07 1.06 1.06 1.06 1.55 0.64 1.15 0.91 1.61 -1.13 0.31 Expenses before waivers (%) = 0.80 Expenses after waivers (%) = 0.63 STET California Municipal Bond Fund 8/19/98 2.02 2.12 2.12 2.12 1.25 0.00 1.24 1.41 3.27 -6.91 -0.25 Bloomberg CA Intermediate Muni Index (USD) 2.03 2.24 2.24 2.24 2.37 0.47 1.97 2.14 3.99 -5.90 0.02 Expenses before waivers (%) = 0.81 Expenses after waivers (%) = 0.60 STET Massachusetts Municipal Bond Fund 8/19/98 2.22 2.35 2.35 2.35 1.45 -0.19 1.41 1.35 3.27 -6.83 -0.87 Bloomberg MA Intermediate Muni Index (USD) 2.27 2.60 2.60 2.60 2.63 0.54 2.24 2.18 4.05 -5.82 -0.30 Expenses before waivers (%) = 0.82 Expenses after waivers (%) = 0.63 STET New Jersey Municipal Bond Fund 8/18/98 1.99 2.10 2.10 2.10 1.32 0.17 1.43 1.39 3.01 -5.81 -0.11 Bloomberg 3-10 Year Municipal Blend (2-12) (USD) 1.90 2.14 2.14 2.14 1.98 0.78 2.03 1.98 3.70 -5.33 0.58 Expenses before waivers (%) = 0.82 Expenses after waivers (%) = 0.60 as of 03/31/2023 as of 03/31/2023 Bloomberg 3-15 Year Municipal Blend (2-17) (USD) Bloomberg 1 Year Municipal Bond Index (1-2) (USD) Performance Performance Cumulative Total Return Annualized Total Return Calendar Funds' Summary Performance Trend Report SEI Tax-Exempt Trust - Class F (Formerly Class A)