Issue link: https://info.seic.com/i/1445430
SEI Portfolio Update: First Quarter 2023 | SEI Tax-Exempt Trust (STET) STET-3 Portfolio Manager: Rich Bamford Pre-liquidation after-tax returns = after taxes on distributions of dividends and capital gains** Post-liquidation after-tax returns = after taxes on distributions of dividends and capital gains and proceeds from the sale of fund shares** **After-tax returns are calculated using the historical top individual federal marginal income-tax rates and do not reflect the impact of state and local taxes. Your actual after-tax returns will depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. 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 1.36% versus 2.76% for the Bloomberg 60/40 HY Muni & Muni Index. Q. WHAT EFFECT DID YOUR POSITIONING AT THE END OF LAST QUARTER HAVE ON PERFORMANCE? A. The Fund underperformed its benchmark for the quarter. The Fund's allocation to bank preferred bonds was the primary driver of underperformance given the issues in the banking sector. Within preferred bonds, an allocation to bank AT-1 and a small position in Credit Suisse AT-1 securities detracted. An overweight to revenue bonds and underweight to general obligation bonds enhanced performance. Selection within transportation and tobacco added. An overweight to BBB rated bonds yielded positive results as these bonds outperformed below investment grade bonds. An underweight to high yield tax-exempt municipals contributed to return as these bonds underperformed. Duration moved slightly long during the quarter and added value as yields declined. An underweight to the pre-refunding sector was positive. Q. WHAT IS YOUR OUTLOOK GOING FORWARD AND HOW IS THIS REFLECTED IN THE FUND POSITIONING? A. The Fund remains approximately 78% tax-exempt municipals and 22% preferred bonds. PIMCO extended duration during the quarter and is modestly long while Allspring moved closer to neutral. Spectrum raised liquidity in the preferred segment and is evaluating opportunities as the banking crisis does not appear to systemic at this point and is not the same as the Global Financial Crisis of the late 2000s. INVESTMENT STRATEGY: The Tax-Advantaged Income Fund seeks to provide a high level of current income in a tax-efficient manner. Under normal circumstances, the Fund will invest at least 50% of its net assets in municipal securities that pay interest that is exempt from federal income tax, including the Alternative Minimum Tax. To a lesser extent, the Fund will also invest in preferred stocks with an emphasis on securities that are eligible to pay dividends that qualify for certain favorable federal income tax treatment. Tax-Advantaged Income 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 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 Tax-Exempt Trust - Class F (Formerly Class A) Tax-Managed Bond Funds STET Tax-Advantaged Income Fund 9/4/07 -0.81 1.36 1.36 1.36 -5.30 1.52 1.95 3.08 3.95 -12.13 4.72 Pre-liquidation after-tax returns -0.81 1.36 1.36 1.36 -5.80 0.85 1.18 2.27 3.16 -12.72 3.97 Post-liquidation after-tax returns -0.31 1.28 1.28 1.28 -1.95 1.55 1.83 2.59 3.32 -6.27 3.75 1.82 2.76 2.76 2.76 -2.60 1.78 2.68 3.11 4.04 -11.29 5.23 Expenses before waivers (%) = 1.08 Expenses after waivers (%) = 0.86 Money Market Funds Pre-liquidation after-tax returns Post-liquidation after-tax returns #VALUE! #N/A Expenses before waivers (%) = Expenses after waivers (%) = Pre-liquidation after-tax returns Post-liquidation after-tax returns #VALUE! #N/A Expenses before waivers (%) = Expenses after waivers (%) = Bloomberg 60/40 HY Municipal & Municipal Bond Index (USD) 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)