Issue link: https://info.seic.com/i/1445430
SEI Portfolio Update: First Quarter 2023 | SEI Tax-Exempt Trust (STET) STET-6 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 2.10% versus 2.14% for the Bloomberg 3-10 Year Municipal Blend (2-12) Index. Q. WHAT EFFECT DID YOUR POSITIONING AT THE END OF LAST QUARTER HAVE ON PERFORMANCE? A. The Fund slightly underperformed its benchmark for the first quarter. Fund performance benefited from an overweight to revenue bonds and an underweight to New Jersey general obligation (G.O.) bonds. Security selection within the hospital and housing sectors enhanced Fund performance, while selection in transportation had a negative impact. An overweight to BBB rated bonds bolstered performance. The Fund's slightly short duration weighed on performance for the quarter. An overweight to the front end of the yield curve also was a detractor. An underweight to the underperforming pre-refunded bond sector bolstered Fund performance. Q. WHAT IS YOUR OUTLOOK GOING FORWARD AND HOW IS THIS REFLECTED IN THE FUND POSITIONING? A. Municipal bonds generated positive returns in the first quarter of 2023 after three consecutive quarters of negative returns; however, volatility remained elevated. Given the magnitude of the selloff in 2022, fund managers have gradually been adding risk, but are mindful of still negative fund flows in the municipal bond sector, as this typically has had a large influence on valuations. There have been negative fund flows have been negative in 39 of the past 43 weeks. Municipal bonds historically have outperformed in a rising interest-rate environment, which wasn't the case for the majority of 2022. With tax-loss selling likely to abate in 2023, and issuance still projected to remain light, we think that municipals may be able to regain some momentum and outperform as fundamentals remain strong given resiliency of employment, consumer spending, and the housing market. INVESTMENT STRATEGY: The New Jersey Municipal Bond Fund seeks the highest level of current federal and New Jersey tax-exempt income that is 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 federal and New Jersey state income taxes. New Jersey 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 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. current to the most recent month end, please call 1-800-DIAL-SEI. 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)