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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
January 31, 2018
Date of report (Date of earliest event reported)
________________________________________
https://cdn.kscope.io/f763fe405c1c893030b01cd43ecf5c79-seinwnaka02.jpg
________________________________________
SEI INVESTMENTS COMPANY
(Exact name of registrant as specified in its charter)

Pennsylvania
 
0-10200
 
23-1707341
(State or other jurisdiction
of incorporation)
 
(Commission
File No.)
 
(I.R.S. Employer
Identification No.)
1 Freedom Valley Drive
Oaks, Pennsylvania 19456
(Address of principal executive offices) (Zip Code)
(610) 676-1000
(Registrants’ telephone number, including area code)
Not applicable
(Former name or former address, if changed since last report)

 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))



Item 2.02.    Results of Operations and Financial Condition.

On Wednesday, January 31, 2018, SEI Investments Company issued a press release announcing its financial and operating results for the fourth quarter ended December 31, 2017. A copy of the press release is furnished as Exhibit 99.1 and incorporated in this Item 2.02 by reference.

As provided in General Instruction B.2 to Form 8-K, the information furnished in this Item 2.02 and Exhibit 99.1 hereto shall not be deemed “filed” for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing with the Securities and Exchange Commission, except as shall be expressly provided by specific reference in such filing.

Item 9.01.    Financial Statements and Exhibits.
(d)    Exhibits
99.1




SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
SEI INVESTMENTS COMPANY
 
 
Date:
February 1, 2018
By:
/s/ Dennis J. McGonigle
 
 
Dennis J. McGonigle
Chief Financial Officer







EXHIBIT INDEX

Exhibit Number
 
Description
 
 
 
99.1
 






Exhibit

Exhibit 99.1

https://cdn.kscope.io/f763fe405c1c893030b01cd43ecf5c79-seiexhibit991logoa14.jpg

Investor Contact:                         Media Contact:
Lindsey Opsahl                        Dana Grosser
SEI            SEI
+1 610-676-4052                        +1 610-676-2459
lopsahl@seic.com                        dgrosser@seic.com
Pages:        8

FOR IMMEDIATE RELEASE

SEI Reports Fourth-Quarter 2017 Financial Results

OAKS, Pa., January 31, 2018 -- SEI Investments Company (NASDAQ:SEIC) today announced financial results for the fourth-quarter 2017. Diluted earnings per share were $0.75 in fourth-quarter 2017 compared to $0.55 in fourth-quarter 2016. 
Consolidated Overview
 
 
 
 
 
 
 
 
 
 
 
 
(In thousands, except earnings per share)
 
For the Three Months Ended December 31,
 
 
 
For the Twelve Months Ended December 31,
 
 
 
 
2017
 
2016
 
%
 
2017
 
2016
 
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 

$408,219

 

$368,810

 
11%
 

$1,526,552

 

$1,401,545

 
9%
Net income
 
122,144

 
88,611

 
38%
 
404,389

 
333,817

 
21%
Diluted earnings per share
 

$0.75

 

$0.55

 
36%
 

$2.49

 

$2.03

 
23%
"Our financial results for both the fourth quarter and the full year reflect the growing adoption of our platforms across all of our business segments and the overall strength of our business," said Alfred P. West, Jr., SEI Chairman and CEO. "As we discussed at our Investor Conference in November, we are committed to a strategy of long-term sustainable growth, founded on our core mission, our values and our proven business model. The results for 2017 reflect that commitment.

"The wealth and investment management industries have headwinds to address and tailwinds to
capitalize on. We believe our platforms position us well to assist our clients in their success and
increase our opportunities for growth. This leads to increased shareholder value for our investors."




Summary of Fourth-Quarter Results by Business Segment
(In thousands)
 
For the Three Months Ended December 31,
 
 
 
For the Twelve Months Ended December 31,
 
 
 
 
2017
 
2016
 
%
 
2017
 
2016
 
%
Private Banks:
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 

$126,955

 

$113,737

 
12%
 

$474,272

 

$457,886

 
4%
Expenses
 
118,410

 
109,062

 
9%
 
455,119

 
421,188

 
8%
Operating Profit
 
8,545

 
4,675

 
83%
 
19,153

 
36,698

 
(48)%
Gain on sale of subsidiary
 
—

 
—

 
—
 
—

 
2,791

 
NM
Segment Profit
 
8,545

 
4,675

 
83%
 
19,153

 
39,489

 
NM
Operating Margin (A)
 
7
%
 
4
%
 
 
 
4
%
 
8
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment Advisors:
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
98,171

 
86,857

 
13%
 
373,473

 
330,677

 
13%
Expenses
 
54,329

 
45,565

 
19%
 
201,833

 
180,140

 
12%
Operating Profit
 
43,842

 
41,292

 
6%
 
171,640

 
150,537

 
14%
Operating Margin
 
45
%
 
48
%
 
 
 
46
%
 
46
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Institutional Investors:
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
86,974

 
88,791

 
(2)%
 
322,457

 
312,584

 
3%
Expenses
 
44,141

 
44,242

 
—%
 
161,640

 
153,117

 
6%
Operating Profit
 
42,833

 
44,549

 
(4)%
 
160,817

 
159,467

 
1%
Operating Margin
 
49
%
 
50
%
 
 
 
50
%
 
51
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment Managers:
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
94,321

 
77,862

 
21%
 
349,444

 
294,390

 
19%
Expenses
 
60,761

 
50,296

 
21%
 
226,504

 
191,127

 
19%
Operating Profit
 
33,560

 
27,566

 
22%
 
122,940

 
103,263

 
19%
Operating Margin
 
36
%
 
35
%
 
 
 
35
%
 
35
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments in New Businesses:
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
1,798

 
1,563

 
15%
 
6,906

 
6,008

 
15%
Expenses
 
5,611

 
5,027

 
12%
 
20,678

 
20,962

 
(1)%
Operating Loss
 
(3,813
)
 
(3,464
)
 
NM
 
(13,772
)
 
(14,954
)
 
NM
 
 
 
 
 
 
 
 
 
 
 
 
 
Totals:
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 

$408,219

 

$368,810

 
11%
 

$1,526,552

 

$1,401,545

 
9%
Expenses
 
283,252

 
254,192

 
11%
 
1,065,774

 
966,534

 
10%
Corporate overhead expenses
 
18,004

 
16,477

 
9%
 
63,834

 
59,317

 
8%
Income from operations
 

$106,963

 

$98,141

 
9%
 

$396,944

 

$375,694

 
6%

(A) Percentage determined exclusive of gain on sale of subsidiary.

2


Fourth-Quarter Business Highlights:

•
Revenue growth in the quarter was primarily driven by higher Asset management, administration, and distribution fees from market appreciation and positive cash flows from new and existing clients.
•
Our average assets under management, excluding LSV, increased $32.2 billion, or 17 percent, to $227.0 billion, as compared to $194.8 billion during the fourth-quarter 2016. Our assets under management do not include advised assets (see attached Average Asset Balances schedules for further details).
•
Our average assets under administration increased $51.3 billion, or 11 percent, to $517.0 billion in the fourth-quarter 2017, as compared to $465.7 billion during the fourth-quarter 2016 (see attached Average Asset Balances schedules for further details).
•
In the fourth-quarter 2017, we recognized performance fees of $3.4 million and corresponding sub-advisory expense of $1.7 million associated with an SEI-sponsored investment product, resulting in a positive net impact of approximately $0.01 diluted earnings per share. In the fourth-quarter 2016, we recognized performance fees of $12.3 million and corresponding sub-advisory expense of $6.1 million for a diluted earnings per share impact of $0.03 from this investment product. These items are reflected in the Institutional Investors segment.
•
Fourth-quarter 2017 sales events, net of client losses, totaled approximately $9.0 million and are expected to generate net annualized recurring revenues of approximately $355 thousand when contract values are fully realized. These numbers include the loss of our only federal government client who advised us they will not be renewing their TRUST 3000® contract which ends later this year. This will result in an approximate $17.8 million annual investment processing revenue loss commencing no sooner than the fourth-quarter 2018. Excluding this client loss, we would have generated $26.8 million of net sales events, of which $18.2 million would have been annualized recurring revenues when the contracts were fully realized. For the year ended 2017, sales events, net of client losses, totaled approximately $77.8 million and are expected to generate net annualized recurring revenues of approximately $49.1 million when contract values are fully realized.
•
Our earnings from LSV increased by $9.3 million, or 27 percent, to $43.3 million in fourth-quarter 2017 as compared to $34.1 million in fourth-quarter 2016. The increase in earnings was due to an increase in assets under management from market appreciation and increased performance fees; however, our earnings were negatively impacted by increased personnel expenses of LSV.
•
We capitalized $12.5 million and $17.2 million of software development costs in fourth-quarter 2017 and 2016, respectively, of which $10.8 million and $12.4 million are related to continued enhancements to the SEI Wealth PlatformSM (the Platform). The remaining amounts of our software development costs capitalized during the fourth quarter of 2017 and 2016 are related to an application for the Investment Managers segment. Our expenses related to maintenance and enhancements not eligible for capitalization have increased. A higher portion of these costs are recognized in personnel and consulting costs. These increased costs primarily impacted the Private Banks and Investment Advisors business segments.
•
The remaining estimated useful life of certain components and functionality of the SEI Wealth Platform was adjusted effective October 1, 2017. As a result, amortization expense related to the Platform decreased to $9.2 million during the fourth-quarter 2017 as compared to $11.7 million during the fourth-quarter 2016.
•
We expect amortization expense related to all of our capitalized software development costs in first-quarter 2018 to be approximately $10.9 million. This amount includes amortization expense related to the application for the Investment Managers segment placed into service in 2018.
•
Our operating expenses, primarily personnel costs, in our Investment Advisors and Investment Managers segments increased. These expenses primarily consist of operational and marketing

3


costs and are mainly related to servicing existing clients and acquiring and implementing new clients.
•
Stock-based compensation expense in fourth-quarter 2017 increased by $12.9 million as compared to fourth-quarter 2016. This incremental expense reflects a change in our estimate of the timing of when stock option vesting targets will be achieved. The Private Banks and Investment Managers segments recognized $3.8 million and $3.0 million, respectively, of this incremental expense. The Investment Advisors and Institutional Investors segments each recognized $2.0 million in incremental expense. We expect stock-based compensation expense during 2018 to be approximately $20.1 million as compared to $36.4 million during 2017.
•
Our effective tax rates were 19.9 percent in fourth-quarter 2017 and 33.4 percent in fourth-quarter 2016. Our rate in fourth-quarter 2017 reflected the estimated impact of the Tax Cuts and Jobs Act which included a $27.1 million tax benefit resulting from the re-measurement of our estimated net deferred tax liability as of December 31, 2017, and $14.7 million of tax expense relating to the estimated tax impact of the deemed repatriation and withholding tax of our previously undistributed foreign earnings, for a net benefit of $12.4 million.
•
Our tax rate in fourth-quarter 2017 was also favorably impacted by the adoption of Accounting Standards Update (ASU) 2016-09 and the expiration of the statute of limitations pertaining to various state tax items.
•
Our fourth-quarter 2017 earnings from SEI Archway in our Investment Managers segment were positively impacted by an adjustment of $3.8 million to the contingent purchase price related to the acquisition.
•
We repurchased 865 thousand shares of our common stock for $59.8 million during the fourth-quarter 2017.

Earnings Conference Call
A conference call to review earnings is scheduled for 4:30 p.m. Eastern time on Jan. 31, 2018. Investors may listen to the call at seic.com, Investors section, Events and Webcasts. Investors may also listen to a replay by telephone at (USA) 800-475-6701; (International) 320-365-3844, access code 443279.

About SEI
Now in its 50th year of business, SEI (NASDAQ:SEIC) is a leading global provider of investment processing, investment management, and investment operations solutions that help corporations, financial institutions, financial advisors, and ultra-high-net-worth families create and manage wealth. As of December 31, 2017, through its subsidiaries and partnerships in which the company has a significant interest, SEI manages, advises or administers $861 billion in hedge, private equity, mutual fund and pooled or separately managed assets, including $337 billion in assets under management and $518 billion in client assets under administration. For more information, visit seic.com.



Many of the statements in this release may be considered “forward looking statements” and include discussions about future operations, strategies and financial results. Forward-looking statements are based upon estimates and assumptions that involve risks and uncertainties, many of which are beyond our control or are subject to change. Although we believe our assumptions are reasonable, they could be inaccurate. Our actual future revenues and income could differ materially from our expected results. We have no obligation to publicly update or revise any forward-looking statements.




4


SEI INVESTMENTS COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
 
 
For the Three Months Ended December 31,
 
For the Twelve Months Ended December 31,
 
 
2017
 
2016
 
2017
 
2016
 
 
 
 
 
 
 
 
 
Asset management, admin. and distribution fees
 

$313,844

 

$286,534

 

$1,180,789

 

$1,072,176

Information processing and software servicing fees
 
88,240

 
75,512

 
321,741

 
300,346

Transaction–based and trade execution fees
 
6,135

 
6,764

 
24,022

 
29,023

 
 
 
 
 
 
 
 
 
Total revenues
 
408,219

 
368,810

 
1,526,552

 
1,401,545

 
 
 
 
 
 
 
 
 
Subadvisory, distribution and other asset mgmt costs
 
47,813

 
48,310

 
179,181

 
170,961

Software royalties and other information processing costs
 
8,438

 
7,379

 
31,275

 
30,323

Brokerage commissions
 
4,682

 
5,087

 
17,845

 
22,152

Compensation, benefits and other personnel
 
121,818

 
107,272

 
458,737

 
414,622

Stock-based compensation
 
16,839

 
3,973

 
36,366

 
16,017

Consulting, outsourcing and professional fees
 
48,366

 
45,057

 
186,357

 
166,769

Data processing and computer related
 
18,805

 
16,849

 
71,909

 
64,930

Facilities, supplies and other costs
 
17,588

 
18,051

 
72,352

 
68,245

Amortization
 
9,943

 
11,708

 
48,275

 
45,392

Depreciation
 
6,964

 
6,983

 
27,311

 
26,440

 
 
 
 
 
 
 
 
 
Total expenses
 
301,256

 
270,669

 
1,129,608

 
1,025,851

 
 
 
 
 
 
 
 
 
Income from operations
 
106,963

 
98,141

 
396,944

 
375,694

 
 
 
 
 
 
 
 
 
Net gain (loss) on investments
 
233

 
(208
)
 
1,269

 
112

Interest and dividend income
 
2,129

 
1,174

 
7,057

 
4,316

Interest expense
 
(210
)
 
(115
)
 
(781
)
 
(531
)
Equity in earnings of unconsolidated affiliate
 
43,337

 
34,061

 
152,550

 
126,103

Gain on sale of subsidiary
 
—

 
—

 
—

 
2,791

 
 
 
 
 
 
 
 
 
Income before income taxes
 
152,452

 
133,053

 
557,039

 
508,485

 
 
 
 
 
 
 
 
 
Income taxes
 
30,308

 
44,442

 
152,650

 
174,668

 
 
 
 
 
 
 
 
 
Net income
 

$122,144

 

$88,611

 

$404,389

 

$333,817

 
 
 
 
 
 
 
 
 
Basic earnings per common share
 

$0.78

 

$0.55

 

$2.56

 

$2.07

 
 
 
 
 
 
 
 
 
Shares used to calculate basic earnings per share
 
157,390

 
159,674

 
158,177

 
161,350

 
 
 
 
 
 
 
 
 
Diluted earnings per common share
 

$0.75

 

$0.55

 

$2.49

 

$2.03

 
 
 
 
 
 
 
 
 
Shares used to calculate diluted earnings per share
 
163,478

 
162,567

 
162,269

 
164,431

 
 
 
 
 
 
 
 
 
Dividends declared per common share
 

$0.30

 

$0.28

 

$0.58

 

$0.54





5


SEI INVESTMENTS COMPANY
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)

 
 
December 31,
 
December 31,
 
 
2017
 
2016
Assets
 
 
 
 
Current Assets:
 
 
 
 
Cash and cash equivalents
 

$744,247

 

$695,701

Restricted cash
 
3,505

 
3,500

Receivables from investment products
 
56,666

 
61,761

Receivables, net of allowance for doubtful accounts of $695 and $523
 
282,706

 
227,957

Securities owned
 
21,526

 
21,339

Other current assets
 
31,158

 
27,575

Total Current Assets
 
1,139,808

 
1,037,833

 
 
 
 
 
Property and Equipment, net of accumulated depreciation of $309,955 and $285,322
 
146,428

 
146,190

Capitalized Software, net of accumulated amortization of $350,045 and $303,540
 
310,405

 
295,867

Investments Available for Sale
 
87,983

 
84,033

Investments in Affiliated Funds, at fair value
 
6,034

 
4,858

Investment in Unconsolidated Affiliate
 
59,492

 
50,459

Goodwill
 
52,990

 
—

Intangible Assets, net of accumulated amortization of $1,552
 
28,578

 
—

Deferred Income Taxes
 
2,767

 
2,127

Other Assets, net
 
18,884

 
15,456

Total Assets
 

$1,853,369

 

$1,636,823

 
 
 
 
 
Liabilities and Equity
 
 
 
 
Current Liabilities:
 
 
 
 
Accounts payable
 

$5,268

 

$5,966

Accrued liabilities
 
265,058

 
240,525

Deferred revenue
 
4,723

 
2,880

Total Current Liabilities
 
275,049

 
249,371

 
 
 
 
 
Borrowings Under Revolving Credit Facility
 
30,000

 
—

Long-term Taxes Payable

 
10,629

 
—

Deferred Income Taxes
 
48,472

 
69,693

Other Long-term Liabilities
 
12,380

 
14,645

Total Liabilities
 
376,530

 
333,709

 
 
 
 
 
Shareholders' Equity:
 
 
 
 
Common stock, $.01 par value, 750,000 shares authorized; 157,069 and 159,031 shares issued and outstanding
 
1,571

 
1,590

Capital in excess of par value
 
1,027,709

 
955,461

Retained earnings
 
467,467

 
384,018

Accumulated other comprehensive loss, net
 
(19,908
)
 
(37,955
)
Total Shareholders' Equity
 
1,476,839

 
1,303,114

Total Liabilities and Shareholders' Equity
 

$1,853,369

 

$1,636,823




6


ENDING ASSET BALANCES
(In millions) (Unaudited)
 
 
 
Dec 31,
 
Mar. 31,
 
Jun. 30,
 
Sept. 30,
 
Dec 31,
 
 
 
2016
 
2017
 
2017
 
2017
 
2017
Private Banks:
 
 
 
 
 
 
 
 
 
 
 
Equity and fixed-income programs
 
 

$17,926

 

$19,034

 

$20,185

 

$21,196

 

$22,764

Collective trust fund programs
 
 
3

 
5

 
4

 
4

 
4

Liquidity funds
 
 
4,230

 
3,903

 
3,589

 
3,345

 
3,864

Total assets under management
 
 

$22,159

 

$22,942

 

$23,778

 

$24,545

 

$26,632

Client assets under administration
 
 
19,255

 
20,760

 
20,951

 
22,107

 
22,980

Total assets
 
 

$41,414

 

$43,702

 

$44,729

 

$46,652

 

$49,612

 
 
 
 
 
 
 
 
 
 
 
 
Investment Advisors:
 
 
 
 
 
 
 
 
 
 
 
Equity and fixed-income programs
 
 

$52,847

 

$55,311

 

$57,358

 

$59,455

 

$61,908

Collective trust fund programs
 
 
5

 
5

 
5

 
5

 
5

Liquidity funds
 
 
2,741

 
2,645

 
2,451

 
2,327

 
2,414

Total assets under management
 
 

$55,593

 

$57,961

 

$59,814

 

$61,787

 

$64,327

 
 
 
 
 
 
 
 
 
 
 
 
Institutional Investors:
 
 
 
 
 
 
 
 
 
 
 
Equity and fixed-income programs (E)
 
 

$76,465

 

$78,954

 

$81,723

 

$84,939

 

$86,727

Collective trust fund programs
 
 
93

 
89

 
80

 
82

 
78

Liquidity funds
 
 
2,903

 
2,759

 
2,468

 
3,699

 
2,937

Total assets under management
 
 

$79,461

 

$81,802

 

$84,271

 

$88,720

 

$89,742

Advised assets

 
 
—

 
3,228

 
4,255

 
4,450

 
4,802

Total assets
 
 

$79,461

 

$85,030

 

$88,526

 

$93,170

 

$94,544

 
 
 
 
 
 
 
 
 
 
 
 
Investment Managers:
 
 
 
 
 
 
 
 
 
 
 
Equity and fixed-income programs
 
 

$81

 

$84

 

$92

 

$93

 

$96

Collective trust fund programs
 
 
36,991

 
40,646

 
42,662

 
46,087

 
49,340

Liquidity funds
 
 
667

 
911

 
999

 
799

 
743

Total assets under management
 
 

$37,739

 

$41,641

 

$43,753

 

$46,979

 

$50,179

Client assets under administration (A)
 
 
448,708

 
457,356

 
476,543

 
493,538

 
495,447

Total assets
 
 

$486,447

 

$498,997

 

$520,296

 

$540,517

 

$545,626

 
 
 
 
 
 
 
 
 
 
 
 
Investments in New Businesses:
 
 
 
 
 
 
 
 
 
 
 
Equity and fixed-income programs
 
 

$884

 

$931

 

$997

 

$1,052

 

$1,104

Liquidity funds
 
 
61

 
79

 
46

 
71

 
53

Total assets under management
 
 

$945

 

$1,010

 

$1,043

 

$1,123

 

$1,157

Advised assets
 
 
—

 
85

 
69

 
54

 
49

Total assets
 
 

$945

 

$1,095

 

$1,112

 

$1,177

 

$1,206

 
 
 
 
 
 
 
 
 
 
 
 
LSV Asset Management:
 
 
 
 
 
 
 
 
 
 
 
Equity and fixed-income programs
 
 

$87,248

 

$90,611

 

$94,774

 

$101,893

 

$105,278

 
 
 
 
 
 
 
 
 
 
 
 
Total:
 
 
 
 
 
 
 
 
 
 
 
Equity and fixed-income programs (B)
 
 

$235,451

 

$244,925

 

$255,129

 

$268,628

 

$277,877

Collective trust fund programs
 
 
37,092

 
40,745

 
42,751

 
46,178

 
49,427

Liquidity funds
 
 
10,602

 
10,297

 
9,553

 
10,241

 
10,011

Total assets under management
 
 

$283,145

 

$295,967

 

$307,433

 

$325,047

 

$337,315

Advised assets (C)
 
 
—

 
3,313

 
4,324

 
4,504

 
4,851

Client assets under administration (D)
 
 
467,963

 
478,116

 
497,494

 
515,645

 
518,427

Total assets
 
 

$751,108

 

$777,396

 

$809,251

 

$845,196

 

$860,593

(A)
Client assets under administration in the Investment Managers segment include $43.5 billion of assets that require limited services and therefore are at fee levels below our normal full service assets (as of December 31, 2017).
(B)
Equity and fixed-income programs include $5.7 billion of assets invested in various asset allocation funds at December 31, 2017.
(C)
Assets for which SEI acts as an advisor to the accounts. These assets were excluded in previous periods. 
(D)
In addition to the numbers presented, SEI also administers an additional $11.2 billion in Funds of Funds assets (as of
December 31, 2017) on which SEI does not earn an administration fee.
(E)
Ending asset balance for Institutional Investors as of Mar. 31, 2017 were revised from $80.1 billion to $79.0 billion.

7


AVERAGE ASSET BALANCES
(In millions) (Unaudited)
 
 
 
4th Qtr.
 
1st Qtr.
 
2nd Qtr.
 
3rd Qtr.
 
4th Qtr.
 
 
 
2016
 
2017
 
2017
 
2017
 
2017
Private Banks:
 
 
 
 
 
 
 
 
 
 
 
Equity and fixed-income programs
 
 

$17,945

 

$18,498

 

$19,610

 

$20,699

 

$21,748

Collective trust fund programs
 
 
3

 
4

 
5

 
4

 
4

Liquidity funds
 
 
4,030

 
4,051

 
3,677

 
3,555

 
3,584

Total assets under management
 
 

$21,978

 

$22,553

 

$23,292

 

$24,258

 

$25,336

Client assets under administration
 
 
19,010

 
20,223

 
21,166

 
21,441

 
22,759

Total assets
 
 

$40,988

 

$42,776

 

$44,458

 

$45,699

 

$48,095

 
 
 
 
 
 
 
 
 
 
 
 
Investment Advisors:
 
 
 
 
 
 
 
 
 
 
 
Equity and fixed-income programs
 
 

$52,267

 

$54,446

 

$56,319

 

$58,406

 

$60,730

Collective trust fund programs
 
 
5

 
5

 
5

 
5

 
5

Liquidity funds
 
 
2,638

 
2,559

 
2,390

 
2,335

 
2,235

Total assets under management
 
 

$54,910

 

$57,010

 

$58,714

 

$60,746

 

$62,970

 
 
 
 
 
 
 
 
 
 
 
 
Institutional Investors:
 
 
 
 
 
 
 
 
 
 
 
Equity and fixed-income programs
 
 

$77,040

 

$77,852

 

$80,561

 

$83,696

 

$85,713

Collective trust fund programs
 
 
92

 
90

 
85

 
80

 
80

Liquidity funds
 
 
2,766

 
2,891

 
2,861

 
3,177

 
3,052

Total assets under management
 
 

$79,898

 

$80,833

 

$83,507

 

$86,953

 

$88,845

Advised assets
 
 
—

 
3,125

 
3,687

 
4,376

 
4,656

Total assets
 
 

$79,898

 

$83,958

 

$87,194

 

$91,329

 

$93,501

 
 
 
 
 
 
 
 
 
 
 
 
Investment Managers:
 
 
 
 
 
 
 
 
 
 
 
Equity and fixed-income programs
 
 

$79

 

$75

 

$84

 

$92

 

$99

Collective trust fund programs
 
 
36,170

 
39,081

 
41,615

 
44,824

 
47,772

Liquidity funds
 
 
813

 
860

 
937

 
952

 
843

Total assets under management
 
 

$37,062

 

$40,016

 

$42,636

 

$45,868

 

$48,714

Client assets under administration
 
 
446,666

 
453,766

 
470,701

 
486,158

 
494,201

Total assets
 
 

$483,728

 

$493,782

 

$513,337

 

$532,026

 

$542,915

 
 
 
 
 
 
 
 
 
 
 
 
Investments in New Businesses:
 
 
 
 
 
 
 
 
 
 
 
Equity and fixed-income programs
 
 

$851

 

$909

 

$954

 

$1,016

 

$1,079

Liquidity funds
 
 
60

 
63

 
64

 
55

 
54

Total assets under management
 
 

$911

 

$972

 

$1,018

 

$1,071

 

$1,133

Advised assets
 
 
—

 
82

 
73

 
73

 
50

Total assets
 
 

$911

 

$1,054

 

$1,091

 

$1,144

 

$1,183

 
 
 
 
 
 
 
 
 
 
 
 
LSV Asset Management:
 
 
 
 
 
 
 
 
 
 
 
Equity and fixed-income programs
 
 

$84,676

 

$90,274

 

$93,094

 

$99,279

 

$104,174

 
 
 
 
 
 
 
 
 
 
 
 
Total:
 
 
 
 
 
 
 
 
 
 
 
Equity and fixed-income programs
 
 

$232,858

 

$242,054

 

$250,622

 

$263,188

 

$273,543

Collective trust fund programs
 
 
36,270

 
39,180

 
41,710

 
44,913

 
47,861

Liquidity funds
 
 
10,307

 
10,424

 
9,929

 
10,074

 
9,768

Total assets under management
 
 

$279,435

 

$291,658

 

$302,261

 

$318,175

 

$331,172

Advised assets
 
 
—

 
3,207

 
3,760

 
4,449

 
4,706

Client assets under administration
 
 
465,676

 
473,989

 
491,867

 
507,599

 
516,960

Total assets
 
 

$745,111

 

$768,854

 

$797,888

 

$830,223

 

$852,838






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