Issue link: https://info.seic.com/i/1445430
SEI Portfolio Update: First Quarter 2023 | SEI Tax-Exempt Trust (STET) STET-4 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 2.12% versus 2.24% for the Bloomberg CA Intermediate Muni Index. Q. WHAT EFFECT DID YOUR POSITIONING AT THE END OF LAST QUARTER HAVE ON PERFORMANCE? A. The Fund performed in line with its benchmark for the quarter. Fund performance benefited from an overweight to revenue bonds and an underweight to California general obligation (G.O.) bonds, as well as security selection within transportation and local G.O. bonds. An overweight to BBB rated bonds enhanced Fund performance; lower-quality bonds outperformed as investors sought higher yields. An underweight to the underperforming pre-refunded bond sector also bolstered performance. The Fund's slightly short duration detracted from performance for the quarter. Q. WHAT IS YOUR OUTLOOK GOING FORWARD AND HOW IS THIS REFLECTED IN THE FUND POSITIONING? A. Municipal bonds generated positive returns during the first quarter after one of their worst calendar-year performance in 2022. Fund managers have gradually added to risk to the portfolio but are mindful of the developing concerns within the banking sector and its implications for potentially tighter lending conditions. Municipal bonds historically have outperformed in a rising interest-rate environment, which wasn't the case for the majority of 2022. Municipals outperformed in the first quarter of 2023, especially at the front end of the yield curve. Demand still outpaces supply, buoying the municipal market. INVESTMENT STRATEGY: The California Municipal Bond Fund seeks the highest level of current income exempt from federal and California state income taxes, consistent with the preservation of capital. Under normal circumstances, the Fund will invest at least 80% of its net assets in investment- grade municipal securities that pay interest that is exempt from U.S. and California state income taxes. California Municipal Bond 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 Expenses before waivers (%) = 0.84 Expenses after waivers (%) = 0.63 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 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)