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
Date of report (Date of earliest event reported)
________________________________________
________________________________________
(Exact name of registrant as specified in charter)
________________________________________
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||
(Address of Principal Executive Offices and Zip Code)
(610 ) 676-1000
(Registrants’ Telephone Number, Including Area Code)
________________________________________
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)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On Wednesday, January 26, 2022, SEI Investments Company (the "Company") issued a press release announcing its financial and operating results for the fourth quarter ended December 31, 2021. A copy of the press release is furnished as Exhibit 99.1 and incorporated in this Item 2.02 by reference. A recording of the earnings call referenced in the press release furnished as Exhibit 99.1 is available for replay on the Company’s website at discover.seic.com/investor-relations.
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.
| Exhibit No. | Description | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
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: | January 26, 2022 | By: | /s/ Dennis J. McGonigle | ||||||||
| Dennis J. McGonigle Chief Financial Officer | |||||||||||
Investor Contact: Media Contact:
Lindsey Opsahl Leslie Wojcik
SEI SEI
+1 610-676-4052 +1 610-676-4191
lopsahl@seic.com lwojcik@seic.com
Pages: 8
FOR IMMEDIATE RELEASE
SEI Reports Fourth-Quarter 2021 Financial Results
OAKS, Pa., Jan. 26, 2022 – SEI Investments Company (NASDAQ:SEIC) today announced financial results for the fourth-quarter 2021. Diluted earnings per share were $1.03 in fourth-quarter 2021 compared to $0.86 in fourth-quarter 2020.
| Consolidated Overview | ||||||||||||||||||||||||||||||||||||||
| (In thousands, except earnings per share) | For the Three Months Ended Dec. 31, | For the Twelve Months Ended Dec. 31, | ||||||||||||||||||||||||||||||||||||
| 2021 | 2020 | % | 2021 | 2020 | % | |||||||||||||||||||||||||||||||||
| Revenues | $501,650 | $443,723 | 13% | $1,918,309 | $1,684,058 | 14% | ||||||||||||||||||||||||||||||||
| Net income | 145,300 | 125,882 | 15% | 546,593 | 447,286 | 22% | ||||||||||||||||||||||||||||||||
| Diluted earnings per share | $1.03 | $0.86 | 20% | $3.81 | $3.00 | 27% | ||||||||||||||||||||||||||||||||
“Our record financial results for 2021 reflect continued sales momentum, success in delivering our solutions to our markets, and positive capital markets. We’ve made significant progress in executing against our growth strategy,” said Alfred P. West, Jr., SEI Chairman and CEO.
“We believe our recent acquisitions enhance our capabilities, expand our competitive market presence, and enhance our growth opportunities in our markets. We also continued our research and development investments that have advanced our technology and new business initiatives. At the core of our long-term success is a talented, dedicated workforce and tremendous leadership across SEI globally.
“As we continue to connect our markets to their future potential through our technology and investment solutions, we are well-positioned to continue seizing growth opportunities that will lead to increased shareholder value.”
1
Summary of Fourth-Quarter Results by Business Segment
| (In thousands) | For the Three Months Ended Dec. 31, | For the Twelve Months Ended Dec. 31, | ||||||||||||||||||||||||||||||||||||
| 2021 | 2020 | % | 2021 | 2020 | % | |||||||||||||||||||||||||||||||||
| Private Banks: | ||||||||||||||||||||||||||||||||||||||
| Revenues | $129,268 | $119,654 | 8% | $493,570 | $455,393 | 8% | ||||||||||||||||||||||||||||||||
| Expenses | 117,739 | 115,039 | 2% | 462,796 | 446,481 | 4% | ||||||||||||||||||||||||||||||||
| Operating Profit | 11,529 | 4,615 | 150% | 30,774 | 8,912 | 245% | ||||||||||||||||||||||||||||||||
| Operating Margin | 9 | % | 4 | % | 6 | % | 2 | % | ||||||||||||||||||||||||||||||
| Investment Advisors: | ||||||||||||||||||||||||||||||||||||||
| Revenues | 125,491 | 108,346 | 16% | 482,949 | 407,564 | 18% | ||||||||||||||||||||||||||||||||
| Expenses | 64,067 | 51,813 | 24% | 240,334 | 205,913 | 17% | ||||||||||||||||||||||||||||||||
| Operating Profit | 61,424 | 56,533 | 9% | 242,615 | 201,651 | 20% | ||||||||||||||||||||||||||||||||
| Operating Margin | 49 | % | 52 | % | 50 | % | 49 | % | ||||||||||||||||||||||||||||||
| Institutional Investors: | ||||||||||||||||||||||||||||||||||||||
| Revenues | 87,848 | 82,318 | 7% | 343,805 | 317,627 | 8% | ||||||||||||||||||||||||||||||||
| Expenses | 45,374 | 36,893 | 23% | 168,070 | 149,909 | 12% | ||||||||||||||||||||||||||||||||
| Operating Profit | 42,474 | 45,425 | (6)% | 175,735 | 167,718 | 5% | ||||||||||||||||||||||||||||||||
| Operating Margin | 48 | % | 55 | % | 51 | % | 53 | % | ||||||||||||||||||||||||||||||
| Investment Managers: | ||||||||||||||||||||||||||||||||||||||
| Revenues | 154,518 | 129,647 | 19% | 581,157 | 489,462 | 19% | ||||||||||||||||||||||||||||||||
| Expenses | 91,046 | 80,204 | 14% | 348,655 | 308,999 | 13% | ||||||||||||||||||||||||||||||||
| Operating Profit | 63,472 | 49,443 | 28% | 232,502 | 180,463 | 29% | ||||||||||||||||||||||||||||||||
| Operating Margin | 41 | % | 38 | % | 40 | % | 37 | % | ||||||||||||||||||||||||||||||
| Investments in New Businesses: | ||||||||||||||||||||||||||||||||||||||
| Revenues | 4,525 | 3,758 | 20% | 16,828 | 14,012 | 20% | ||||||||||||||||||||||||||||||||
| Expenses | 13,364 | 15,180 | (12)% | 53,219 | 52,871 | 1% | ||||||||||||||||||||||||||||||||
| Operating Loss | (8,839) | (11,422) | NM | (36,391) | (38,859) | NM | ||||||||||||||||||||||||||||||||
| Totals: | ||||||||||||||||||||||||||||||||||||||
| Revenues | $501,650 | $443,723 | 13% | $1,918,309 | $1,684,058 | 14% | ||||||||||||||||||||||||||||||||
| Expenses | 331,590 | 299,129 | 11% | 1,273,074 | 1,164,173 | 9% | ||||||||||||||||||||||||||||||||
| Corporate Overhead Expenses | 26,662 | 20,584 | 30% | 91,854 | 73,998 | 24% | ||||||||||||||||||||||||||||||||
| Income from Operations | $143,398 | $124,010 | 16% | $553,381 | $445,887 | 24% | ||||||||||||||||||||||||||||||||
2
Fourth-Quarter Business Highlights:
•Revenues from Asset management, administration, and distribution fees increased from higher assets under management and administration due to market appreciation and positive cash flows from new and existing clients.
•Revenues in the Private Banks segment include $6.8 million from early termination fees from an existing investment processing client.
•Our average assets under administration increased $104.6 billion, or 13%, to $884.3 billion in the fourth-quarter 2021, as compared to $779.7 billion during the fourth-quarter 2020 (see attached Average Asset Balances schedules for further details).
•Our average assets under management, excluding LSV, increased $40.6 billion, or 16%, to $301.0 billion in the fourth-quarter 2021, as compared to $260.4 billion during the fourth-quarter 2020 (see attached Average Asset Balances schedules for further details).
•Net sales events in the Private Banks and Investment Managers segments during fourth-quarter 2021 were $31.3 million and are expected to generate net annualized recurring revenues of approximately $22.1 million when contract values are completely realized. For the year ended 2021, net sales events were $81.4 million and are expected to generate net annualized recurring revenues of approximately $60.1 million when contract values are completely realized.
•Net sales events in asset management-related businesses of the Investment Advisors and Institutional Investors segments and the Asset Management Distribution (AMD) business in the Private Banks segment during fourth-quarter 2021 were $4.5 million. For the year ended 2021, net sales events were flat primarily due to net losses in the legacy Institutional Investors client base which offset new business growth in the Investment Advisors segment.
•The increase in operational expenses was primarily due to increased direct costs related to increased revenues, as well as increased personnel costs due to business growth and competitive labor markets.
•We acquired Novus Partners (Novus), a global portfolio intelligence platform company, in November 2021. The results of operations of Novus are included in the Institutional Investors segment. The segment's fourth-quarter 2021 results were negatively impacted by approximately $868 thousand from the acquisition.
•Earnings from LSV increased by $3.6 million, or 11%, to $34.2 million in fourth-quarter 2021 as compared to $30.6 million in fourth-quarter 2020. The increase in earnings was primarily due to higher assets under management from market appreciation. Negative cash flows from existing clients and client losses partially offset the increase in earnings from LSV.
•Stock-based compensation expense in fourth-quarter 2021 increased $3.7 million as compared to fourth-quarter 2020 due to equity awards in late 2020, net of forfeitures, and from a change in estimate of the timing of when stock-option vesting targets would be achieved. We expect stock-based compensation expense during 2022 to be approximately $46.3 million as compared to $41.5 million during 2021 as a result of new options granted in fourth-quarter 2021 net of awards granted in the prior year.
•We capitalized $6.6 million of software development costs in fourth-quarter 2021 for continued enhancements to the SEI Wealth PlatformSM (SWP). Amortization expense related to SWP was $13.4 million in fourth-quarter 2021.
•Our effective tax rates were 18.3% in fourth-quarter 2021 and 19.6% in fourth-quarter 2020. The decrease in the effective tax rate was primarily due to increased tax benefits associated with a higher volume of stock option exercises.
•We repurchased 1.5 million shares of our common stock for $95.5 million during the fourth-quarter 2021 at an average price of $62.44 per share. For the year ended 2021, we
3
repurchased 6.7 million shares of our common stock for $411.5 million at an average price of $61.00 per share.
•Cash flow from operations was $149.2 million, or $1.06 per share, and free cash flow was $138.7 million during the fourth-quarter 2021.
Earnings Conference Call
A conference call to review earnings is scheduled for 4:30 p.m. Eastern time on Jan. 26, 2022. Investors may listen to the call at seic.com/ir-events. Investors may also listen to a replay by telephone at (USA) 866-207-1041; (International) 402-970-0847; Access Code: 1785544.
About SEI®
SEI (NASDAQ:SEIC) delivers technology and investment solutions that connect the financial services industry. With capabilities across investment processing, operations, and asset management, SEI works with corporations, financial institutions and professionals, and ultra-high-net-worth families to solve problems, manage change, and help protect assets—for growth today and in the future. As of Dec. 31, 2021, SEI manages, advises, or administers approximately $1.3 trillion in assets. For more information, visit seic.com.
This release contains forward-looking statements within the meaning or the rules and regulations of the Securities and Exchange Commission. In some cases you can identify forward-looking statements by terminology, such as "may," "will," "expect," "believe" and "continue" or "appear." Our forward-looking statements include our current expectations as to:
•revenue that we believe will be generated by sales events that occurred during the quarter and the timing of the realization of such revenue, if any,
•whether we will have sales momentum,
•the effect of our acquisitions on our capabilities, competitive position and growth opportunities,
•our strategic priorities and commitments and the degree to which we will execute on them, and
•the degree to which we are well-positioned to seize growth opportunities that will lead to increased shareholder value.
We anticipate that we may deliver forward-looking statements during today’s earnings call that include our current expectations as to the matters in this release and set forth above as well as:
•the timing and success of client migrations, implementations and conversions,
•our ability to expand our relationships and revenue opportunities with new and existing clients,
•whether we will be able to take advantage of increasing sales demand,
•the timing of and our ability to integrate acquisition targets and the potential benefits we may derive from any of our acquisitions,
•the degree to which M&A activity in the industries in which we compete will affect our sales,
•the degree to which our technology is being adopted across both our existing client base and new clients,
•our ability to leverage our technologies and scale our businesses,
•the degree to which one-time and transaction-based revenues during the quarter will be repeated,
•revenue that we believe will be generated by sales events that occurred during the quarter or when our unfunded backlog may fund, if at all,
•the strategic initiatives and business segments that we will pursue and those in which we will invest,
•the degree to which our One SEISM strategy will allow us to increase our growth opportunities,
•the competition for and cost of talent and the effect of these factors on our business,
•the amount of recurring sales we will generate,
•the strength of our backlog and pipelines,
•the level of demand for our products and services,
•the degree to which the global COVID-19 pandemic is affecting our business,
•the momentum we may have with respect to our businesses and sales,
•the elements of our long-term success,
•the degree to which our business will be successful and what parties will be the beneficiaries of any such success,
•the headwinds we will face and our strategies for how we may respond to these headwinds,
•the margins that our businesses may generate,
•the investments we may make in our technologies and personnel,
•how we will manage our expenses and the degree to which our forecasted expenses will decline, increase or normalize,
•when we integrate purchased assets into and develop additional capabilities for the SEI Wealth Platform and the timing of our ability to offer additional services to clients,
•the organic and inorganic opportunities that will drive our growth,
•our ability to build upon our fourth quarter results, and
•the success and benefits of our strategic investments.
You should not place undue reliance on our forward-looking statements, as they are based on the current beliefs and expectations of our management and subject to significant risks and uncertainties, many of which are beyond our control or are subject to change. Although we believe the assumptions upon which we base our forward-looking statements are reasonable, they could be inaccurate. Some of the risks and important factors that could cause actual results to differ from those described in our forward-looking statements can be found in the “Risk Factors” section of our Annual Report on Form 10-K for the year ended Dec. 31, 2020, filed with the Securities and Exchange Commission.
# # #
4
SEI INVESTMENTS COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
| For the Three Months Ended Dec. 31, | For the Twelve Months Ended Dec. 31, | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
| Asset management, admin. and distribution fees | $403,565 | $353,610 | $1,547,016 | $1,345,649 | ||||||||||||||||||||||
| Information processing and software servicing fees | 98,085 | 90,113 | 371,293 | 338,409 | ||||||||||||||||||||||
| Total revenues | 501,650 | 443,723 | 1,918,309 | 1,684,058 | ||||||||||||||||||||||
| Subadvisory, distribution and other asset mgmt. costs | 56,458 | 46,973 | 218,068 | 181,618 | ||||||||||||||||||||||
| Software royalties and other information processing costs | 7,198 | 7,109 | 27,759 | 28,937 | ||||||||||||||||||||||
| Compensation, benefits and other personnel | 155,309 | 135,902 | 584,497 | 527,509 | ||||||||||||||||||||||
| Stock-based compensation | 10,278 | 6,556 | 41,451 | 27,014 | ||||||||||||||||||||||
| Consulting, outsourcing and professional fees | 57,543 | 59,566 | 223,200 | 227,916 | ||||||||||||||||||||||
| Data processing and computer related | 27,814 | 24,681 | 107,560 | 96,328 | ||||||||||||||||||||||
| Facilities, supplies and other costs | 19,909 | 17,467 | 69,760 | 64,915 | ||||||||||||||||||||||
| Amortization | 15,403 | 13,558 | 59,152 | 52,975 | ||||||||||||||||||||||
| Depreciation | 8,340 | 7,901 | 33,481 | 30,959 | ||||||||||||||||||||||
| Total expenses | 358,252 | 319,713 | 1,364,928 | 1,238,171 | ||||||||||||||||||||||
| Income from operations | 143,398 | 124,010 | 553,381 | 445,887 | ||||||||||||||||||||||
| Net (loss) gain on investments | (500) | 1,024 | (366) | (286) | ||||||||||||||||||||||
| Interest and dividend income | 934 | 986 | 3,649 | 6,568 | ||||||||||||||||||||||
| Interest expense | (209) | (153) | (563) | (609) | ||||||||||||||||||||||
| Equity in earnings of unconsolidated affiliate | 34,152 | 30,646 | 137,572 | 117,134 | ||||||||||||||||||||||
| Income before income taxes | 177,775 | 156,513 | 693,673 | 568,694 | ||||||||||||||||||||||
| Income taxes | 32,475 | 30,631 | 147,080 | 121,408 | ||||||||||||||||||||||
| Net income | $145,300 | $125,882 | $546,593 | $447,286 | ||||||||||||||||||||||
| Basic earnings per common share | $1.04 | $0.87 | $3.87 | $3.05 | ||||||||||||||||||||||
| Shares used to calculate basic earnings per share | 139,080 | 144,077 | 141,216 | 146,709 | ||||||||||||||||||||||
| Diluted earnings per common share | $1.03 | $0.86 | $3.81 | $3.00 | ||||||||||||||||||||||
| Shares used to calculate diluted earnings per share | 141,305 | 146,140 | 143,312 | 149,003 | ||||||||||||||||||||||
| Dividends declared per common share | $0.40 | $0.37 | $0.77 | $0.72 | ||||||||||||||||||||||
5
SEI INVESTMENTS COMPANY
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
| Dec. 31, | Dec. 31, | |||||||||||||
| 2021 | 2020 | |||||||||||||
| Assets | ||||||||||||||
| Current Assets: | ||||||||||||||
| Cash and cash equivalents | $825,210 | $784,626 | ||||||||||||
| Restricted cash | 351 | 3,101 | ||||||||||||
| Receivables from investment products | 59,036 | 55,271 | ||||||||||||
Receivables, net of allowance for doubtful accounts of $1,602 and $1,100 | 441,609 | 385,219 | ||||||||||||
| Securities owned | 28,267 | 34,064 | ||||||||||||
| Other current assets | 43,559 | 38,696 | ||||||||||||
| Total Current Assets | 1,398,032 | 1,300,977 | ||||||||||||
Property and Equipment, net of accumulated depreciation of $409,248 and $378,639 | 178,869 | 189,052 | ||||||||||||
| Operating Lease Right-of-Use Assets | 33,614 | 38,397 | ||||||||||||
Capitalized Software, net of accumulated amortization of $545,307 and $491,739 | 243,446 | 270,977 | ||||||||||||
| Available for Sale and Equity Securities | 129,541 | 105,419 | ||||||||||||
| Investments in Affiliated Funds, at fair value | 6,916 | 6,166 | ||||||||||||
| Investment in Unconsolidated Affiliate | 107,918 | 98,433 | ||||||||||||
| Goodwill and Intangible Assets, net | 186,014 | 88,793 | ||||||||||||
| Deferred Contract Costs | 36,236 | 33,781 | ||||||||||||
| Deferred Income Taxes | 8,809 | 2,972 | ||||||||||||
| Other Assets, net | 24,936 | 32,289 | ||||||||||||
| Total Assets | $2,354,331 | $2,167,256 | ||||||||||||
| Liabilities and Equity | ||||||||||||||
| Current Liabilities: | ||||||||||||||
| Accounts payable | $10,312 | $7,766 | ||||||||||||
| Accrued liabilities | 318,185 | 299,845 | ||||||||||||
| Current portion of long-term operating lease liabilities | 11,328 | 8,579 | ||||||||||||
| Deferred revenue | 9,721 | 1,085 | ||||||||||||
| Total Current Liabilities | 349,546 | 317,275 | ||||||||||||
| Borrowings Under Revolving Credit Facility | 40,000 | — | ||||||||||||
| Long-term Income Taxes Payable | 803 | 803 | ||||||||||||
| Deferred Income Taxes | 54,702 | 55,159 | ||||||||||||
| Long-term Operating Lease Liabilities | 27,639 | 34,058 | ||||||||||||
| Other Long-term Liabilities | 20,878 | 20,054 | ||||||||||||
| Total Liabilities | 493,568 | 427,349 | ||||||||||||
| Shareholders' Equity: | ||||||||||||||
Common stock, $0.01 par value, 750,000 shares authorized; 138,449 and 143,396 shares issued and outstanding | 1,384 | 1,434 | ||||||||||||
| Capital in excess of par value | 1,246,608 | 1,190,001 | ||||||||||||
| Retained earnings | 632,614 | 565,270 | ||||||||||||
| Accumulated other comprehensive loss, net | (19,843) | (16,798) | ||||||||||||
| Total Shareholders' Equity | 1,860,763 | 1,739,907 | ||||||||||||
| Total Liabilities and Shareholders' Equity | $2,354,331 | $2,167,256 | ||||||||||||
6
ENDING ASSET BALANCES
(In millions) (Unaudited)
| Dec. 31, | Mar. 31, | Jun. 30, | Sept. 30, | Dec. 31, | ||||||||||||||||||||||||||||
| 2020 | 2021 | 2021 | 2021 | 2021 | ||||||||||||||||||||||||||||
| Private Banks: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs | $25,498 | $25,098 | $26,264 | $25,618 | $26,281 | |||||||||||||||||||||||||||
| Collective trust fund programs | 6 | 7 | 7 | 6 | 6 | |||||||||||||||||||||||||||
| Liquidity funds | 3,778 | 3,793 | 3,654 | 3,988 | 4,724 | |||||||||||||||||||||||||||
| Total assets under management | $29,282 | $28,898 | $29,925 | $29,612 | $31,011 | |||||||||||||||||||||||||||
| Client assets under administration | 26,346 | 4,379 | 4,412 | 4,675 | 4,481 | |||||||||||||||||||||||||||
| Total assets | $55,628 | $33,277 | $34,337 | $34,287 | $35,492 | |||||||||||||||||||||||||||
| Investment Advisors: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs | $71,248 | $73,819 | $78,053 | $78,560 | $81,686 | |||||||||||||||||||||||||||
| Liquidity funds | 3,832 | 3,584 | 3,550 | 3,477 | 4,317 | |||||||||||||||||||||||||||
| Total Platform assets under management | $75,080 | $77,403 | $81,603 | $82,037 | $86,003 | |||||||||||||||||||||||||||
| Platform-only assets (E) | 11,862 | 12,538 | 13,566 | 13,728 | 14,564 | |||||||||||||||||||||||||||
| Total Platform assets (E) | $86,942 | $89,941 | $95,169 | $95,765 | $100,567 | |||||||||||||||||||||||||||
| Institutional Investors: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs | $90,869 | $92,040 | $93,010 | $89,441 | $91,719 | |||||||||||||||||||||||||||
| Collective trust fund programs | 98 | 95 | 5 | 5 | 5 | |||||||||||||||||||||||||||
| Liquidity funds | 2,128 | 2,909 | 2,516 | 2,599 | 2,118 | |||||||||||||||||||||||||||
| Total assets under management | $93,095 | $95,044 | $95,531 | $92,045 | $93,842 | |||||||||||||||||||||||||||
| Client assets under advisement | 4,063 | 4,333 | 4,566 | 4,698 | 4,857 | |||||||||||||||||||||||||||
| Total assets | $97,158 | $99,377 | $100,097 | $96,743 | $98,699 | |||||||||||||||||||||||||||
| Investment Managers: | ||||||||||||||||||||||||||||||||
| Collective trust fund programs | $75,214 | $78,304 | $87,012 | $87,488 | $92,549 | |||||||||||||||||||||||||||
| Liquidity funds | 424 | 449 | 473 | 568 | 423 | |||||||||||||||||||||||||||
| Total assets under management | $75,638 | $78,753 | $87,485 | $88,056 | $92,972 | |||||||||||||||||||||||||||
| Client assets under administration (A) | 760,397 | 831,819 | 875,942 | 861,605 | 907,377 | |||||||||||||||||||||||||||
| Total assets | $836,035 | $910,572 | $963,427 | $949,661 | $1,000,349 | |||||||||||||||||||||||||||
| Investments in New Businesses: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs | $1,711 | $1,777 | $1,924 | $1,964 | $2,096 | |||||||||||||||||||||||||||
| Liquidity funds | 162 | 289 | 191 | 202 | 240 | |||||||||||||||||||||||||||
| Total assets under management | $1,873 | $2,066 | $2,115 | $2,166 | $2,336 | |||||||||||||||||||||||||||
| Client assets under administration | 1,299 | 1,355 | 1,422 | 1,378 | 1,410 | |||||||||||||||||||||||||||
| Total assets | $3,172 | $3,421 | $3,537 | $3,544 | $3,746 | |||||||||||||||||||||||||||
| LSV Asset Management: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs (B) | $93,692 | $101,565 | $102,404 | $97,604 | $98,984 | |||||||||||||||||||||||||||
| Total: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs (C) | $283,018 | $294,299 | $301,655 | $293,187 | $300,766 | |||||||||||||||||||||||||||
| Collective trust fund programs | 75,318 | 78,406 | 87,024 | 87,499 | 92,560 | |||||||||||||||||||||||||||
| Liquidity funds | 10,324 | 11,024 | 10,384 | 10,834 | 11,822 | |||||||||||||||||||||||||||
| Total assets under management | $368,660 | $383,729 | $399,063 | $391,520 | $405,148 | |||||||||||||||||||||||||||
| Client assets under advisement | 5,362 | 5,688 | 5,988 | 6,076 | 6,267 | |||||||||||||||||||||||||||
| Client assets under administration (D) | 786,743 | 836,198 | 880,354 | 866,280 | 911,858 | |||||||||||||||||||||||||||
| Platform-only assets | 11,862 | 12,538 | 13,566 | 13,728 | 14,564 | |||||||||||||||||||||||||||
| Total assets | $1,172,627 | $1,238,153 | $1,298,971 | $1,277,604 | $1,337,837 | |||||||||||||||||||||||||||
(A)Client assets under administration in the Investment Managers segment include $12.4 billion of assets that are at fee levels below our normal full-service assets (as of Dec. 31, 2021).
(B)Equity and fixed-income programs include $2.4 billion of assets managed by LSV in which fees are based on performance only (as of Dec. 31, 2021).
(C)Equity and fixed-income programs include $7.9 billion of assets invested in various asset allocation funds at Dec. 31, 2021.
(D)In addition to the numbers presented, SEI also administers an additional $14.4 billion in Funds of Funds assets (as of
Dec. 31, 2021 on which SEI does not earn an administration fee.
(E) Platform assets under management and Platform-only assets combined are total Platform assets in the Investment Advisors segment.
7
AVERAGE ASSET BALANCES
(In millions) (Unaudited)
| 4th Qtr. | 1st Qtr. | 2nd Qtr. | 3rd Qtr. | 4th Qtr. | ||||||||||||||||||||||||||||
| 2020 | 2021 | 2021 | 2021 | 2021 | ||||||||||||||||||||||||||||
| Private Banks: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs | $24,284 | $25,139 | $26,056 | $26,232 | $25,999 | |||||||||||||||||||||||||||
| Collective trust fund programs | 6 | 6 | 7 | 6 | 6 | |||||||||||||||||||||||||||
| Liquidity funds | 3,712 | 3,876 | 3,833 | 3,916 | 4,452 | |||||||||||||||||||||||||||
| Total assets under management | $28,002 | $29,021 | $29,896 | $30,154 | $30,457 | |||||||||||||||||||||||||||
| Client assets under administration | 25,368 | 4,317 | 4,405 | 4,476 | 4,607 | |||||||||||||||||||||||||||
| Total assets | $53,370 | $33,338 | $34,301 | $34,630 | $35,064 | |||||||||||||||||||||||||||
| Investment Advisors: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs | $68,398 | $73,240 | $76,840 | $79,602 | $80,703 | |||||||||||||||||||||||||||
| Liquidity funds | 3,788 | 3,619 | 3,370 | 3,403 | 3,644 | |||||||||||||||||||||||||||
| Total Platform assets under management | $72,186 | $76,859 | $80,210 | $83,005 | $84,347 | |||||||||||||||||||||||||||
| Platform-only assets (E) | 11,214 | 12,206 | 13,292 | 13,863 | 14,341 | |||||||||||||||||||||||||||
| Total Platform assets (E) | $83,400 | $89,065 | $93,502 | $96,868 | $98,688 | |||||||||||||||||||||||||||
| Institutional Investors: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs | $86,277 | $91,349 | $93,458 | $91,965 | $90,557 | |||||||||||||||||||||||||||
| Collective trust fund programs | 102 | 96 | 68 | 5 | 5 | |||||||||||||||||||||||||||
| Liquidity funds | 2,271 | 2,621 | 2,681 | 2,742 | 2,391 | |||||||||||||||||||||||||||
| Total assets under management | $88,650 | $94,066 | $96,207 | $94,712 | $92,953 | |||||||||||||||||||||||||||
| Client assets under advisement | 3,746 | 4,146 | 4,516 | 4,658 | 4,812 | |||||||||||||||||||||||||||
| Total assets | $92,396 | $98,212 | $100,723 | $99,370 | $97,765 | |||||||||||||||||||||||||||
| Investment Managers: | ||||||||||||||||||||||||||||||||
| Collective trust fund programs | $69,349 | $78,035 | $84,553 | $89,441 | $90,457 | |||||||||||||||||||||||||||
| Liquidity funds | 411 | 490 | 469 | 532 | 491 | |||||||||||||||||||||||||||
| Total assets under management | $69,760 | $78,525 | $85,022 | $89,973 | $90,948 | |||||||||||||||||||||||||||
| Client assets under administration (A) | 754,350 | 817,330 | 853,810 | 851,183 | 879,718 | |||||||||||||||||||||||||||
| Total assets | $824,110 | $895,855 | $938,832 | $941,156 | $970,666 | |||||||||||||||||||||||||||
| Investments in New Businesses: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs | $1,634 | $1,743 | $1,870 | $1,958 | $2,053 | |||||||||||||||||||||||||||
| Liquidity funds | 165 | 169 | 236 | 205 | 197 | |||||||||||||||||||||||||||
| Total assets under management | $1,799 | $1,912 | $2,106 | $2,163 | $2,250 | |||||||||||||||||||||||||||
| Client assets under advisement | 1,218 | 1,327 | 1,406 | 1,423 | 1,423 | |||||||||||||||||||||||||||
| Total assets | $3,017 | $3,239 | $3,512 | $3,586 | $3,673 | |||||||||||||||||||||||||||
| LSV Asset Management: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs (B) | $88,182 | $97,476 | $103,583 | $99,924 | $97,381 | |||||||||||||||||||||||||||
| Total: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs (C) | $268,775 | $288,947 | $301,807 | $299,681 | $296,693 | |||||||||||||||||||||||||||
| Collective trust fund programs | 69,457 | 78,137 | 84,628 | 89,452 | 90,468 | |||||||||||||||||||||||||||
| Liquidity funds | 10,347 | 10,775 | 10,589 | 10,798 | 11,175 | |||||||||||||||||||||||||||
| Total assets under management | $348,579 | $377,859 | $397,024 | $399,931 | $398,336 | |||||||||||||||||||||||||||
| Client assets under advisement | 4,964 | 5,473 | 5,922 | 6,081 | 6,235 | |||||||||||||||||||||||||||
| Client assets under administration (D) | 779,718 | 821,647 | 858,215 | 855,659 | 884,325 | |||||||||||||||||||||||||||
| Platform-only assets | 11,214 | 12,206 | 13,292 | 13,863 | 14,341 | |||||||||||||||||||||||||||
| Total assets | $1,144,475 | $1,217,185 | $1,274,453 | $1,275,534 | $1,303,237 | |||||||||||||||||||||||||||
(A) Average client assets under administration in the Investment Managers segment during fourth-quarter 2021 include $12.3 billion that are at fee levels below our normal full-service assets.
(B) Equity and fixed-income programs include $2.3 billion of average assets managed by LSV in which fees are based on performance only during fourth-quarter 2021.
(C) Equity and fixed-income programs include $7.9 billion of average assets invested in various asset allocation funds during fourth-quarter 2021.
(D) In addition to the numbers presented, SEI also administers an additional $14.0 billion of average assets in Funds of Funds assets during fourth-quarter 2021 on which SEI does not earn an administration fee.
(E) Platform assets under management and Platform-only assets combined are total Platform assets in the Investment Advisors segment.
8