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SEI Institutional Equity-Income: 2001 Update

Lagging picks sink SEI Instl Equity-Income in a good year for large-value funds.

SEI Institutional Managed Trust Equity-Income Portfolio  (SEEIX) is in a familiar spot--the third quartile of the large-value category. It finished 2000 there, and its 7.9% loss through April 2, 2001, lands there, too. The fund's focus on dividend-rich stocks led it to some of the right places last year, like energy and financials. However, some of manager Mike McBurney's picks brought the fund's return below average. For example, Procter & Gamble (PG) suffered last year after its earnings slowed and the company started a massive reorganization. Also, Verizon (VZ) struggled as it and many other telecom shares pulled back. 

So far this year, McBurney has trimmed the utility and energy stocks that soared for him last year (like ExxonMobil (XOM)), but he is keeping sizable positions in oil-exploration firms, such as Baker Hughes (BHI), where he thinks margins will continue to be good. Meanwhile, like some other large-value managers, he has also nibbled at dividend-paying tech stocks like Apple (AAPL) after they were crushed in mid-2000. 

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