Market Update

The Economy

• Reports of improving economic conditions created a more positive tone for the week, in line with our view that the economy should continue its recovery, albeit at a slow and uneven pace.
• The Federal Reserve issued its Beige Book report, which showed that the economy continues to strengthen.
• The Institute for Supply Management Manufacturing Index rose to 58.4 in January from 54.9 in December, marking a sixth consecutive increase. A reading above 50 indicates expansion.
• Labor markets lost 36,000 jobs in February, which was fewer than expected. The unemployment rate remained at 9.7%.
• Claims for jobless benefits fell from a three-month high.
• The housing market still showed signs of weakness, as pending sales of existing homes fell 7.6%.
• Retail sales for February were better than forecast, increasing 3.7% for stores open at least a year.
• In the U.S., new orders for factory goods rose 1.7% in January.
• In the European Union (EU), officials continued to work on a plan to extend financial aid to Greece.
• U.K. producer prices rose in February by the largest amount since December 2009.

Economic Calendar

• Wholesale inventories, initial jobless claims and continuing claims will be released March 11.
• Retail sales and business inventories will be released March 12.

Stocks

• Global markets had robust gains on positive economic data and news that the EU is discussing plans to help Greece.
• In the U.S., growth stocks outperformed their value counterparts, and small-cap stocks outperformed their large-cap brethren. Materials led the way, while Telecommunications lagged.
• In the U.K., Materials led, while Utilities, Financials and Healthcare lagged.
• In Europe, Financials and Consumer Services led, while Consumer Staples, Utilities, Healthcare and Telecommunications lagged.

Bonds

• Global bond market prices were flat as investors regained their risk appetites, focusing on equities and riskier bonds.
• Global government bonds and corporate bonds were flat for the week.
• High-yield and emerging market debt both rallied on the more upbeat global economic outlook as well as the EU’s continued effort to help Greece tackle its government debt issues.
• Greece’s bond sale, which will pay higher interest rates to bondholders to compensate for the additional risk of holding the debt, was successful as demand for the bonds exceeded supply.

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.