Market Update

The Economy

• Better economic data and the European Union’s announcement of plans to help Greece tackle its growing debt issues helped drive positive global investor sentiment.
• The U.S. Senate announced a job creation bill aimed at reducing the continued high unemployment rate.
• In the U.S., retail sales for January grew by 0.5%, beating estimates of 0.3%.
• U.S. initial jobless claims and continuing claims both fell more than anticipated.
• U.S. business inventories fell unexpectedly as consumer demand increased.
• Snowstorms shut down much of the East Coast for the week. While this boosted business for airport hotels and snow-related businesses, it is likely to hurt February’s employment numbers due to a slowdown in hiring for transportation and construction-related positions.
• In the UK, loans for first-time home buyers rose to their highest levels in two years, just before the tax break ended.
• Gross domestic product for the 16-nation Eurozone rose 0.1%, below forecasts of 0.3%.
• China announced it is requiring banks to increase their reserve requirements,effective February 25.

Economic Calendar

• The U.S. markets will be closed on February 15 in observance of Presidents’ Day.
• The Empire State Manufacturing Index and Treasury International Capital (TIC) data will be released February 16.
• Import prices, housing starts, building permits, industrial production, and the Federal Open Market Committee’s meeting minutes will be released February 17.
• Initial jobless claims, continuing claims and the Philadelphia Fed Manufacturing Index will be released February 18.
• The Consumer Price Index will be released February 19.

Stocks

• Global markets began with a rough start but improved throughout the week as better economic news prevailed.
• In the U.S., small caps outperformed their large-cap brethren, and growth stocks outperformed their value counterparts. Consumer Staples did best, while Financials lagged.
• In the UK, equity markets bounced back somewhat; Consumer Staples, Healthcare and Materials led the market, while Information Technology, Telecommunications and Financials lagged. In Europe ex-UK, Consumer Staples, Energy and Healthcare performed best while Information Technology, Industrials and Consumer Services lagged.
• Oil prices rose on a weaker U.S. dollar and the snowstorms that have hit the East Coast of the U.S., the Mid-Atlantic States in particular.

Bonds

• Global bond markets fell on mostly positive economic news and a cautious outlook regarding government bonds.
• Bond investors were skittish due to fears that the Federal Reserve will raise interest rates, and to increased concerns for the potential for default for other peripheral European countries such as Portugal and Spain.
• Government bonds, as well as riskier high-yield and corporate bonds, fell for the week.
• Emerging-market debt led the broader bond markets.

Index returns are for illustrative purposes only and do not represent actual fund performance. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results. Diversification may not protect against market risk. There are risks involved with investing, including loss of principal.

This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice. This information is for educational purposes only.

SEI Investments Management Corporation (SIMC) is the adviser to the SEI Funds, which are distributed by SEI Investments Distribution Co (SIDCO). SIMC and SIDCO are wholly owned subsidiaries of SEI Investments Company.

To determine if the Fund(s) are an appropriate investment for you, carefully consider the Fund’s investment objectives, risk factors and charges and expenses before investing. This and other information can be found in the Fund’s prospectus, which can be obtained by calling 1-800-DIAL-SEI. Please read it carefully before investing.