Weekly Market Update: 13 August 2010

The Economy

• Global economic data was weak, showing further signs of slowing growth and confirming our view that recovery will be a slow process.
• The U.S. Federal Reserve said it planned to reinvest principal payments from mortgages into Treasury securities and remained committed to keeping interest rates at record lows. This slightly more accommodative stance suggested that the U.S. economic outlook is worse than previously expected.
• The Mortgage Bankers Association’s index of U.S. mortgage applications increased for a second consecutive week, as unusually low mortgage rates spurred refinancing activity.
  U.S. initial jobless claims were higher than expected.
• The Bank of England lowered both its forecast of economic growth over the next few years and its expected inflation growth, focusing on the use of accommodative policies to sustain the fragile economic recovery.
• Germany’s national statistics office reported the country’s largest quarterly growth (as measured by gross domestic product, or GDP) in over two decades.
• European industrial production fell in June, driven by declines in consumer durable goods such as furniture.

Economic Calendar

• The Empire State Manufacturing Index will be released August 16.
• The Producer Price Index, housing starts and building permits will be released August 17.
• Mortgage applications will be released August 18.
• Initial jobless claims, continuing claims, the Philadelphia Fed Manufacturing Index and leading economic indicators will be released August 13.

Stocks

• Equity markets fell across the globe on heightened concerns that the economic recovery is beginning to stall.
• In the U.K., Healthcare, Consumer Staples and Utilities performed best, and Information Technology, Consumer Discretionary and Materials lagged.
• In Europe, Consumer Staples, Telecommunications and Healthcare outperformed the broader market, while Financials, Materials and Industrials performed worst.
• In the U.S., value stocks outperformed their growth counterparts, and large-company stocks outperformed their small-company brethren. Telecommunications performed best, while Information Technology performed worst.

Bonds

• Global bond markets were slightly positive, with emerging-market debt performing best on better financial situations in comparison to their developed peers.
• From a broad-market perspective, U.S. and U.K. bonds outperformed European bonds.
• High-yield bonds underperformed on investor risk aversion. For the same reason, the rally in U.S. Treasuries continued.

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.














































The Numbers as of Friday 1 Week YTD 1 Year Friday's Close*
August 13, 2010
Global Equity Indices*
MSCI World ($) -4.2% -5.6% 3.0% 1103.6
MSCI EAFE ($) -4.2% -5.5% 3.7% 325.4
MSCI Emerging Mkts ($) -3.0% -0.9% 14.6% 980.5
US & Canadian Equities
Dow Jones Industrials ($) -3.3% -1.2% 9.6% 10303.2
S&P 500 ($) -3.8% -3.2% 6.6% 1079.3
NASDAQ ($) -5.0% -4.2% 8.2% 2173.5
S&P/ TSX Composite (C$) -2.3% -1.9% 6.5% 11528.3
UK & European Equities
FTSE All-Share (£) -1.3% -1.6% 11.4% 2717.0
MSCI Europe ex UK (€) -2.3% -4.2% 4.8% 880.5
Asian Equities
Topix (yen) -3.5% -8.4% -14.2% 831.2
Hong Kong Hang Seng ($) -2.8% -3.7% 1.0% 21071.6
MSCI Asia Pac. Ex-Japan ($) -2.9% -2.4% 10.8% 406.7
Latin American Equities
MSCI EMF Latin America ($) -2.9% -3.0% 17.4% 3994.4
Mexican Bolsa (peso) -2.5% -0.1% 14.0% 32099.8
Brazilian Bovespa (real) -2.7% -3.4% 16.2% 66264.4
Commodities ($)*
West Texas Intermediary Spot -6.6% -5.0% 6.9% 75.4
Gold Spot Price 0.8% 10.6% 26.9% 1214.7
Global Bond Indices ($)*
Barclays Capital Global Agg. 0.3% 7.1% 9.5% 186.1
JPMorgan Emerging Mkt Bond 0.6% 11.9% 20.1% 522.1
10-Year Yield Change (basis points**)
US Treasury -14.5 -116.6 -92.7 2.67%
UK Gilt -10.2 -89.3 -66.4 3.12%
German Bund -12.6 -99.4 -103.1 2.39%
Japan Govt Bond -7.4 -30.5 -42.6 0.99%
Canada Govt Bond -9.2 -62.9 -52.4 2.98%
Currency Returns*
US$ per euro*** -3.6% -10.7% -8.3% 1.2792
Yen per US$ 1.1% -7.6% -9.6% 86.20
US$ per £*** -2.3% -9.4% 7.0% 1.5599
C$ per US$ 1.0% -7.4% -14.6% 1.0390
Source: Bloomberg, total return. Equity returns are index price only. *New York close for Commodities, currency returns, and global equity and bond indices; all else local market close. **100 basis points = 1 percentage point. ***A gain in US$ per euro and £ = a decline in the dollar, and vice-versa.