Weekly Market Update: 6 August 2010

The Economy

• Global economic data showed weak employment and a reluctance to spend on the part of the consumer. This environment confirms our view that near-term global economic growth is likely to remain tepid.
• U.S. manufacturing activity in July continued to expand although the pace of growth deteriorated, according to the Institute for Supply Management (ISM).
• Services industries, which comprise 90% of the U.S. economy, experienced growth for July, according to the ISM.
• The savings rate for U.S. consumers increased to 6.4% in June as spending stayed subdued.
• U.S. construction activity grew in June, helped by government programs.
• Factory orders in the U.S. declined more than expected for June, which will likely lead to a further cooling of manufacturing activity.
• The U.S. labor market showed continued weakness, as the number of initial jobless claims increased and the unemployment rate increased to 9.6%.
• U.S. mortgage applications increased due to interest rates remaining near record lows.
• Despite inflation being above the 2% target weight, the Bank of England left U.K. interest rates at 0.5 % as expected.
• European retail sales were unchanged in July, as consumer spending in France and Germany remained muted.

Economic Calendar

• Unit labor costs and the Federal Open Market Committee’s rate decision will be released August 10.
• The trade balance and mortgage applications will be released August 11.
• Initial jobless claims and continuing claims will be released August 12.
• The Consumer Price Index, retail sales and the University of Michigan’s consumer confidence survey will be released August 13.

Stocks

• Global equity markets gained despite a mixed bag of economic data.
• In the U.K., Energy, Materials and Utilities performed best, and Information Technology, Industrials and Consumer Staples lagged.
• In Europe, Healthcare, Energy and Materials outperformed the broader market, while Consumer Staples, Information Technology (IT) and Telecommunications performed worst.
• In the U.S., growth stocks outperformed their value counterparts, and large-company stocks outperformed their small-company brethren. Energy performed best, while Consumer Staples performed worst.
• Environmental issues in Russia and parts of Eastern Europe destroyed wheat crops, leading to rising global wheat prices. Share prices for many food and alcoholic beverage suppliers have plunged on forecasted profit-margin declines.

Bonds

• Global bond markets were mostly flat, with emerging-market debt performing best. From a broad-market perspective, European and U.K. bonds outperformed U.S. bonds.
• Government bonds had price gains, supported by continued investor uncertainty and weak economic data.
• High-yield bonds underperformed both investment-grade corporate bonds and government debt.

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.