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, July 20, 2022, SEI Investments Company (the "Company") issued a press release announcing its financial and operating results for the second quarter ended June 30, 2022. 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 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 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On July 18, 2022, the Company’s Compensation Committee of the Board recommended, and the Board approved, changes in the fiscal 2022 compensation for Dennis McGonigle, the Company’s Chief Financial Officer, whereby Mr. McGonigle will (i) receive a pro-rated annual salary of $700,000 for fiscal 2022 (effective July 29, 2022), and (ii) have an annual target bonus opportunity of $1,300,000, with the actual amount to be determined at year-end based on individual and/or Company performance as determined by the Compensation Committee of the Board.
In addition, Mr. McGonigle will receive a restricted stock unit grant with respect to 20,000 shares of the Company’s common stock (the “RSU Grant”) under the Company’s 2014 Omnibus Equity Compensation Plan (the “2014 Plan”). The RSU Grant will vest over four years in equal annual installments on the first four anniversaries of July 18, 2022, provided that Mr. McGonigle remains employed through the applicable vesting date.
The agreements with Mr. McGonigle were not pursuant to any written agreement.
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: | July 20, 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 Second-Quarter 2022 Financial Results
OAKS, Pa., July 20, 2022 – SEI Investments Company (NASDAQ:SEIC) today announced financial results for the second-quarter 2022. Diluted earnings per share were $0.81 in second-quarter 2022 compared to $0.93 in second-quarter 2021.
| Consolidated Overview | ||||||||||||||||||||||||||||||||||||||
| (In thousands, except earnings per share) | For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||
| 2022 | 2021 | % | 2022 | 2021 | % | |||||||||||||||||||||||||||||||||
| Revenues | $481,670 | $475,651 | 1% | $1,063,113 | $931,337 | 14% | ||||||||||||||||||||||||||||||||
| Net income | 111,276 | 133,778 | (17)% | 301,584 | 263,248 | 15% | ||||||||||||||||||||||||||||||||
| Diluted earnings per share | $0.81 | $0.93 | (13)% | $2.17 | $1.82 | 19% | ||||||||||||||||||||||||||||||||
“Our second-quarter financial results reflect our business' resilience as we navigate the state of the capital markets, inflation's continued impact, and change. While we expect these challenges to continue, we remain steadfast in our conviction that our company is moving in the right direction,” said CEO Ryan Hicke.
“We’ve made progress as a business in three strategic areas of focus: growth, talent, and culture. Our expertise in asset management, technology, and operations is the foundation for driving short- and long-term revenue growth. We are seizing opportunities globally to provide existing and new solutions to our markets, enhance our talent, and reignite our culture. We will continue to diligently assess and allocate our investments in order to push our company forward in these areas, further position us for growth, and deliver value to our employees, clients, and shareholders.”
1
Summary of Second-Quarter Results by Business Segment
| (In thousands) | For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||
| 2022 | 2021 | % | 2022 | 2021 | % | |||||||||||||||||||||||||||||||||
| Private Banks: | ||||||||||||||||||||||||||||||||||||||
| Revenues | $124,184 | $123,676 | —% | $337,732 | $241,284 | 40% | ||||||||||||||||||||||||||||||||
| Expenses | 121,060 | 117,654 | 3% | 243,015 | 228,378 | 6% | ||||||||||||||||||||||||||||||||
| Operating Profit | 3,124 | 6,022 | (48)% | 94,717 | 12,906 | NM | ||||||||||||||||||||||||||||||||
| Operating Margin | 3 | % | 5 | % | 28 | % | 5 | % | ||||||||||||||||||||||||||||||
| Investment Advisors: | ||||||||||||||||||||||||||||||||||||||
| Revenues | 113,194 | 119,396 | (5)% | 232,424 | 232,690 | —% | ||||||||||||||||||||||||||||||||
| Expenses | 63,375 | 59,133 | 7% | 127,895 | 114,160 | 12% | ||||||||||||||||||||||||||||||||
| Operating Profit | 49,819 | 60,263 | (17)% | 104,529 | 118,530 | (12)% | ||||||||||||||||||||||||||||||||
| Operating Margin | 44 | % | 50 | % | 45 | % | 51 | % | ||||||||||||||||||||||||||||||
| Institutional Investors: | ||||||||||||||||||||||||||||||||||||||
| Revenues | 83,483 | 85,699 | (3)% | 170,322 | 170,198 | —% | ||||||||||||||||||||||||||||||||
| Expenses | 43,925 | 41,895 | 5% | 89,283 | 81,053 | 10% | ||||||||||||||||||||||||||||||||
| Operating Profit | 39,558 | 43,804 | (10)% | 81,039 | 89,145 | (9)% | ||||||||||||||||||||||||||||||||
| Operating Margin | 47 | % | 51 | % | 48 | % | 52 | % | ||||||||||||||||||||||||||||||
| Investment Managers: | ||||||||||||||||||||||||||||||||||||||
| Revenues | 155,926 | 142,808 | 9% | 312,827 | 279,227 | 12% | ||||||||||||||||||||||||||||||||
| Expenses | 100,807 | 84,995 | 19% | 199,644 | 168,015 | 19% | ||||||||||||||||||||||||||||||||
| Operating Profit | 55,119 | 57,813 | (5)% | 113,183 | 111,212 | 2% | ||||||||||||||||||||||||||||||||
| Operating Margin | 35 | % | 40 | % | 36 | % | 40 | % | ||||||||||||||||||||||||||||||
| Investments in New Businesses: | ||||||||||||||||||||||||||||||||||||||
| Revenues | 4,883 | 4,072 | 20% | 9,808 | 7,938 | 24% | ||||||||||||||||||||||||||||||||
| Expenses | 12,844 | 13,631 | (6)% | 24,794 | 27,035 | (8)% | ||||||||||||||||||||||||||||||||
| Operating Loss | (7,961) | (9,559) | NM | (14,986) | (19,097) | NM | ||||||||||||||||||||||||||||||||
| Totals: | ||||||||||||||||||||||||||||||||||||||
| Revenues | $481,670 | $475,651 | 1% | $1,063,113 | $931,337 | 14% | ||||||||||||||||||||||||||||||||
| Expenses | 342,011 | 317,308 | 8% | 684,631 | 618,641 | 11% | ||||||||||||||||||||||||||||||||
| Corporate Overhead Expenses | 23,799 | 22,322 | 7% | 47,823 | 43,838 | 9% | ||||||||||||||||||||||||||||||||
| Income from Operations | $115,860 | $136,021 | (15)% | $330,659 | $268,858 | 23% | ||||||||||||||||||||||||||||||||
2
Second-Quarter Business Highlights:
•Revenues from Information processing and software servicing fees increased from new client conversions and growth from existing SEI Wealth PlatformSM (SWP) clients. Additional revenues from our acquisition of SEI Novus during the fourth-quarter 2021 also contributed to the increase.
•Revenues from Assets under management, administration, and distribution fees were flat. Revenues from Assets under management decreased due to the significant decline in market conditions during the second quarter and client shifts into lower fee investment products. This decline was offset by increased revenues from assets under administration.
•Our average assets under management in equity and fixed income programs, excluding LSV, decreased $21.1 billion, or 11%, to $177.1 billion in the second-quarter 2022, as compared to $198.2 billion during the second-quarter 2021 (see attached Average Asset Balances schedules for further details).
•Our average assets under administration increased $39.3 billion, or 5%, to $897.5 billion in the second-quarter 2022, as compared to $858.2 billion during the second-quarter 2021 (see attached Average Asset Balances schedules for further details).
•Net sales events in the Private Banks and Investment Managers segments during second-quarter 2022 were $7.9 million and are expected to generate net annualized recurring revenues of approximately $5.6 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 second-quarter 2022 were $934.0 thousand.
•The increase in operational expenses was primarily due to increased personnel costs due to business growth, competitive labor markets, and the impact of inflation on wages and services. The increase was partially offset by lower direct costs related to asset management revenues.
•In June, we initiated an enhanced voluntary separation program to long-tenured employees as part of our commitment to professional development and expanded responsibilities for current and new talent by increasing advancement opportunities. We expect this program to be finalized in July 2022. The program's total cost is currently estimated to be between $54.0 million and $58.0 million, which will be recorded as part of third-quarter 2022 results.
•Earnings from LSV decreased to $29.8 million in the second-quarter 2022 as compared to $35.1 million in the second-quarter 2021 due to negative cash flows from existing clients, market depreciation and client losses.
•We capitalized $6.1 million of software development costs in second-quarter 2022 for continued enhancements to SWP. Amortization expense related to SWP was $11.8 million in second-quarter 2022.
•Our effective tax rates were 23.1% in second-quarter 2022 and 22.3% in second-quarter 2021. The increase in the effective tax rate was primarily due to decreased tax benefits associated with a lower volume of stock option exercises.
•We repurchased 2.0 million shares of our common stock for $109.3 million during the second-quarter 2022 at an average price of $55.48 per share.
•Cash flow from operations was $70.2 million, or $0.51 per share, and free cash flow was $52.4 million during the second-quarter 2022.
3
Earnings Conference Call
A conference call to review earnings is scheduled for 4:30 p.m. Eastern time on July 20, 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: 4384485.
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 June 30, 2022, 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:
•the extent to which current market conditions will persist,
•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 diligently assess and allocate our investments,
•whether we positioned for growth, and to deliver value to our employees, clients, and shareholders, and
•when our enhanced voluntary separation program will close and the amount of the cost of such program.
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 our investments will create growth opportunities,
•whether we are positioned for sustainable growth and to take advantage of opportunities,
•the margins that out businesses may generate,
•the degree to which one-time and transaction-based revenues during the quarter will be repeated,
•the competition for and cost of talent and the effect of these factors on our business,
•the headwinds we will face and our strategies for how we may respond to these headwinds,
•how we will manage our expenses,
•the degree to which our reported margins will decline, increase or normalize,
•the strategic initiatives and business segments that we will pursue and those in which we will invest,
•whether we have laid the groundwork for our future growth plans,
•the degree to which we will align our talent and spending to capitalize on market opportunities for both the short and medium term,
•whether our voluntary separation program will create space for internal mobility, fresh perspectives, diversity and external experience, and the degree to which this will position us for or accelerate our growth,
•the degree to which we will reset our capital investments to sustain the growth we create,
•the success, if any, of the sales and strategic initiatives we pursue,
•whether our culture will enable us to be more nimble, while maintaining focus and attention on our clients and opportunities,
•the timing of when new clients will be on-boarded directly to new technology platforms and when our entire existing client base will be live on such platforms,
•the value of our backlog and the strength of our pipelines,
•whether we will be able to drive cross-selling opportunities,
•whether we will focus on maintaining and accelerating growth in existing businesses, expanding our focus on new growth engines, or reinvigorating our culture and talent strategies across the company,
•our growth prospects,
•the timing of and our ability to integrate any acquisition targets that we may pursue, if any,
•the potential benefits we may derive from any of our acquisitions,
•the organic and inorganic opportunities that will drive our growth,
•the investments we may make in our technologies and personnel, 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, 2021, 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 June 30, | For the Six Months Ended June 30, | |||||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
| Asset management, admin. and distribution fees | $382,594 | $382,509 | $776,691 | $750,155 | ||||||||||||||||||||||
| Information processing and software servicing fees | 99,076 | 93,142 | 286,422 | 181,182 | ||||||||||||||||||||||
| Total revenues | 481,670 | 475,651 | 1,063,113 | 931,337 | ||||||||||||||||||||||
| Subadvisory, distribution and other asset mgmt. costs | 50,023 | 55,827 | 103,151 | 105,991 | ||||||||||||||||||||||
| Software royalties and other information processing costs | 7,407 | 7,471 | 14,954 | 13,213 | ||||||||||||||||||||||
| Compensation, benefits and other personnel | 157,921 | 141,779 | 318,405 | 279,000 | ||||||||||||||||||||||
| Stock-based compensation | 10,007 | 10,103 | 20,573 | 19,855 | ||||||||||||||||||||||
| Consulting, outsourcing and professional fees | 63,271 | 55,449 | 125,762 | 109,789 | ||||||||||||||||||||||
| Data processing and computer related | 32,254 | 27,375 | 62,070 | 53,096 | ||||||||||||||||||||||
| Facilities, supplies and other costs | 20,133 | 18,479 | 37,760 | 35,727 | ||||||||||||||||||||||
| Amortization | 16,508 | 14,723 | 33,395 | 29,075 | ||||||||||||||||||||||
| Depreciation | 8,286 | 8,424 | 16,384 | 16,733 | ||||||||||||||||||||||
| Total expenses | 365,810 | 339,630 | 732,454 | 662,479 | ||||||||||||||||||||||
| Income from operations | 115,860 | 136,021 | 330,659 | 268,858 | ||||||||||||||||||||||
| Net (loss) gain on investments | (2,620) | 377 | (3,109) | 709 | ||||||||||||||||||||||
| Interest and dividend income | 1,853 | 878 | 2,701 | 1,823 | ||||||||||||||||||||||
| Interest expense | (211) | (130) | (461) | (253) | ||||||||||||||||||||||
| Equity in earnings of unconsolidated affiliate | 29,813 | 35,065 | 62,272 | 68,415 | ||||||||||||||||||||||
| Income before income taxes | 144,695 | 172,211 | 392,062 | 339,552 | ||||||||||||||||||||||
| Income taxes | 33,419 | 38,433 | 90,478 | 76,304 | ||||||||||||||||||||||
| Net income | $111,276 | $133,778 | $301,584 | $263,248 | ||||||||||||||||||||||
| Basic earnings per common share | $0.82 | $0.94 | $2.20 | $1.85 | ||||||||||||||||||||||
| Shares used to calculate basic earnings per share | 136,435 | 142,074 | 137,185 | 142,638 | ||||||||||||||||||||||
| Diluted earnings per common share | $0.81 | $0.93 | $2.17 | $1.82 | ||||||||||||||||||||||
| Shares used to calculate diluted earnings per share | 137,817 | 144,212 | 138,764 | 144,759 | ||||||||||||||||||||||
| Dividends declared per common share | $0.40 | $0.37 | $0.40 | $0.37 | ||||||||||||||||||||||
5
SEI INVESTMENTS COMPANY
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
| June 30, | December 31, | |||||||||||||
| 2022 | 2021 | |||||||||||||
| Assets | ||||||||||||||
| Current Assets: | ||||||||||||||
| Cash and cash equivalents | $771,673 | $831,407 | ||||||||||||
| Restricted cash | 351 | 351 | ||||||||||||
| Receivables from investment products | 54,911 | 59,036 | ||||||||||||
Receivables, net of allowance for doubtful accounts of $1,952 and $1,602 | 466,902 | 441,609 | ||||||||||||
| Securities owned | 31,171 | 28,267 | ||||||||||||
| Other current assets | 50,523 | 43,559 | ||||||||||||
| Total Current Assets | 1,375,531 | 1,404,229 | ||||||||||||
Property and Equipment, net of accumulated depreciation of $424,048 and $409,248 | 178,946 | 178,869 | ||||||||||||
| Operating Lease Right-of-Use Assets | 27,629 | 33,614 | ||||||||||||
Capitalized Software, net of accumulated amortization of $572,065 and $545,307 | 230,497 | 243,446 | ||||||||||||
| Available for Sale and Equity Securities | 121,682 | 129,541 | ||||||||||||
| Investments in Affiliated Funds, at fair value | 6,000 | 6,916 | ||||||||||||
| Investment in Unconsolidated Affiliate | 46,865 | 107,918 | ||||||||||||
| Goodwill | 117,405 | 117,232 | ||||||||||||
Intangible Assets, net of accumulated amortization of $24,163 and $17,716 | 61,669 | 68,782 | ||||||||||||
| Deferred Contract Costs | 35,353 | 36,236 | ||||||||||||
| Deferred Income Taxes | 2,459 | 2,983 | ||||||||||||
| Other Assets, net | 30,893 | 24,936 | ||||||||||||
| Total Assets | $2,234,929 | $2,354,702 | ||||||||||||
| Liabilities and Equity | ||||||||||||||
| Current Liabilities: | ||||||||||||||
| Accounts payable | $10,305 | $10,312 | ||||||||||||
| Accrued liabilities | 218,752 | 324,382 | ||||||||||||
| Current portion of long-term operating lease liabilities | 10,993 | 11,328 | ||||||||||||
| Deferred revenue | 13,510 | 9,721 | ||||||||||||
| Total Current Liabilities | 253,560 | 355,743 | ||||||||||||
| Borrowings Under Revolving Credit Facility | — | 40,000 | ||||||||||||
| Long-term Income Taxes Payable | 803 | 803 | ||||||||||||
| Deferred Income Taxes | 22,833 | 48,876 | ||||||||||||
| Long-term Operating Lease Liabilities | 21,675 | 27,639 | ||||||||||||
| Other Long-term Liabilities | 13,970 | 20,878 | ||||||||||||
| Total Liabilities | 312,841 | 493,939 | ||||||||||||
| Shareholders' Equity: | ||||||||||||||
Common stock, $0.01 par value, 750,000 shares authorized; 135,480 and 138,449 shares issued and outstanding | 1,355 | 1,384 | ||||||||||||
| Capital in excess of par value | 1,272,971 | 1,246,608 | ||||||||||||
| Retained earnings | 693,525 | 632,614 | ||||||||||||
| Accumulated other comprehensive loss, net | (45,763) | (19,843) | ||||||||||||
| Total Shareholders' Equity | 1,922,088 | 1,860,763 | ||||||||||||
| Total Liabilities and Shareholders' Equity | $2,234,929 | $2,354,702 | ||||||||||||
6
ENDING ASSET BALANCES
(In millions) (Unaudited)
| Jun. 30, | Sept. 30, | Dec. 31, | Mar. 31, | Jun. 30, | ||||||||||||||||||||||||||||
| 2021 | 2021 | 2021 | 2022 | 2022 | ||||||||||||||||||||||||||||
| Private Banks: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs | $26,264 | $25,618 | $26,281 | $25,335 | $22,277 | |||||||||||||||||||||||||||
| Collective trust fund programs | 7 | 6 | 6 | 7 | 7 | |||||||||||||||||||||||||||
| Liquidity funds | 3,654 | 3,988 | 4,724 | 4,225 | 3,666 | |||||||||||||||||||||||||||
| Total assets under management | $29,925 | $29,612 | $31,011 | $29,567 | $25,950 | |||||||||||||||||||||||||||
| Client assets under administration | 4,412 | 4,675 | 4,481 | 4,449 | 3,923 | |||||||||||||||||||||||||||
| Total assets | $34,337 | $34,287 | $35,492 | $34,016 | $29,873 | |||||||||||||||||||||||||||
| Investment Advisors: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs | $78,053 | $78,560 | $81,686 | $77,614 | $65,783 | |||||||||||||||||||||||||||
| Liquidity funds | 3,550 | 3,477 | 4,317 | 4,610 | 8,292 | |||||||||||||||||||||||||||
| Total Platform assets under management | $81,603 | $82,037 | $86,003 | $82,224 | $74,075 | |||||||||||||||||||||||||||
| Platform-only assets (E) | 13,566 | 13,728 | 14,564 | 14,151 | 12,642 | |||||||||||||||||||||||||||
| Total Platform assets (E) | $95,169 | $95,765 | $100,567 | $96,375 | $86,717 | |||||||||||||||||||||||||||
| Institutional Investors: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs | $93,010 | $89,441 | $91,719 | $87,358 | $75,506 | |||||||||||||||||||||||||||
| Collective trust fund programs | 5 | 5 | 5 | 6 | 5 | |||||||||||||||||||||||||||
| Liquidity funds | 2,516 | 2,599 | 2,118 | 2,150 | 1,654 | |||||||||||||||||||||||||||
| Total assets under management | $95,531 | $92,045 | $93,842 | $89,514 | $77,165 | |||||||||||||||||||||||||||
| Client assets under advisement | 4,566 | 4,698 | 4,857 | 4,778 | 4,218 | |||||||||||||||||||||||||||
| Total assets | $100,097 | $96,743 | $98,699 | $94,292 | $81,383 | |||||||||||||||||||||||||||
| Investment Managers: | ||||||||||||||||||||||||||||||||
| Collective trust fund programs | $87,012 | $87,488 | $92,549 | $85,411 | $142,035 | |||||||||||||||||||||||||||
| Liquidity funds | 473 | 568 | 423 | 284 | 271 | |||||||||||||||||||||||||||
| Total assets under management | $87,485 | $88,056 | $92,972 | $85,695 | $142,306 | |||||||||||||||||||||||||||
| Client assets under administration (A) | 875,942 | 861,605 | 907,377 | 895,181 | 885,096 | |||||||||||||||||||||||||||
| Total assets | $963,427 | $949,661 | $1,000,349 | $980,876 | $1,027,402 | |||||||||||||||||||||||||||
| Investments in New Businesses: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs | $1,924 | $1,964 | $2,096 | $2,057 | $1,903 | |||||||||||||||||||||||||||
| Liquidity funds | 191 | 202 | 240 | 305 | 242 | |||||||||||||||||||||||||||
| Total assets under management | $2,115 | $2,166 | $2,336 | $2,362 | $2,145 | |||||||||||||||||||||||||||
| Client assets under administration | 1,422 | 1,378 | 1,410 | 1,401 | 1,076 | |||||||||||||||||||||||||||
| Total assets | $3,537 | $3,544 | $3,746 | $3,763 | $3,221 | |||||||||||||||||||||||||||
| LSV Asset Management: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs (B) | $102,404 | $97,604 | $98,984 | $95,962 | $81,940 | |||||||||||||||||||||||||||
| Total: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs (C) | $301,655 | $293,187 | $300,766 | $288,326 | $247,409 | |||||||||||||||||||||||||||
| Collective trust fund programs | 87,024 | 87,499 | 92,560 | 85,424 | 142,047 | |||||||||||||||||||||||||||
| Liquidity funds | 10,384 | 10,834 | 11,822 | 11,574 | 14,125 | |||||||||||||||||||||||||||
| Total assets under management | $399,063 | $391,520 | $405,148 | $385,324 | $403,581 | |||||||||||||||||||||||||||
| Client assets under advisement | 5,988 | 6,076 | 6,267 | 6,179 | 5,294 | |||||||||||||||||||||||||||
| Client assets under administration (D) | 880,354 | 866,280 | 911,858 | 899,630 | 889,019 | |||||||||||||||||||||||||||
| Platform-only assets | 13,566 | 13,728 | 14,564 | 14,151 | 12,642 | |||||||||||||||||||||||||||
| Total assets | $1,298,971 | $1,277,604 | $1,337,837 | $1,305,284 | $1,310,536 | |||||||||||||||||||||||||||
(A)Client assets under administration in the Investment Managers segment include $80.7 billion of assets that are at fee levels below our normal full-service assets (as of June 30, 2022).
(B)Equity and fixed-income programs include $1.9 billion of assets managed by LSV in which fees are based on performance only (as of June 30, 2022).
(C)Equity and fixed-income programs include $6.4 billion of assets invested in various asset allocation funds at June 30, 2022.
(D)In addition to the numbers presented, SEI also administers an additional $12.9 billion in Funds of Funds assets (as of
June 30, 2022) 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)
| 2nd Qtr. | 3rd Qtr. | 4th Qtr. | 1st Qtr. | 2nd Qtr. | ||||||||||||||||||||||||||||
| 2021 | 2021 | 2021 | 2022 | 2022 | ||||||||||||||||||||||||||||
| Private Banks: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs | $26,056 | $26,232 | $25,999 | $25,637 | $23,713 | |||||||||||||||||||||||||||
| Collective trust fund programs | 7 | 6 | 6 | 6 | 7 | |||||||||||||||||||||||||||
| Liquidity funds | 3,833 | 3,916 | 4,452 | 4,403 | 3,795 | |||||||||||||||||||||||||||
| Total assets under management | $29,896 | $30,154 | $30,457 | $30,046 | $27,515 | |||||||||||||||||||||||||||
| Client assets under administration | 4,405 | 4,476 | 4,607 | 4,500 | 4,163 | |||||||||||||||||||||||||||
| Total assets | $34,301 | $34,630 | $35,064 | $34,546 | $31,678 | |||||||||||||||||||||||||||
| Investment Advisors: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs | $76,840 | $79,602 | $80,703 | $77,576 | $70,436 | |||||||||||||||||||||||||||
| Liquidity funds | 3,370 | 3,403 | 3,644 | 5,151 | 7,070 | |||||||||||||||||||||||||||
| Total Platform assets under management | $80,210 | $83,005 | $84,347 | $82,727 | $77,506 | |||||||||||||||||||||||||||
| Platform-only assets (E) | 13,292 | 13,863 | 14,341 | 13,978 | 13,142 | |||||||||||||||||||||||||||
| Total Platform assets (E) | $93,502 | $96,868 | $98,688 | $96,705 | $90,648 | |||||||||||||||||||||||||||
| Institutional Investors: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs | $93,458 | $91,965 | $90,557 | $89,250 | $80,971 | |||||||||||||||||||||||||||
| Collective trust fund programs | 68 | 5 | 5 | 5 | 5 | |||||||||||||||||||||||||||
| Liquidity funds | 2,681 | 2,742 | 2,391 | 2,223 | 2,097 | |||||||||||||||||||||||||||
| Total assets under management | $96,207 | $94,712 | $92,953 | $91,478 | $83,073 | |||||||||||||||||||||||||||
| Client assets under advisement | 4,516 | 4,658 | 4,812 | 4,889 | 3,987 | |||||||||||||||||||||||||||
| Total assets | $100,723 | $99,370 | $97,765 | $96,367 | $87,060 | |||||||||||||||||||||||||||
| Investment Managers: | ||||||||||||||||||||||||||||||||
| Collective trust fund programs | $84,553 | $89,441 | $90,457 | $86,633 | $131,435 | |||||||||||||||||||||||||||
| Liquidity funds | 469 | 532 | 491 | 432 | 285 | |||||||||||||||||||||||||||
| Total assets under management | $85,022 | $89,973 | $90,948 | $87,065 | $131,720 | |||||||||||||||||||||||||||
| Client assets under administration (A) | 853,810 | 851,183 | 879,718 | 888,854 | 893,361 | |||||||||||||||||||||||||||
| Total assets | $938,832 | $941,156 | $970,666 | $975,919 | $1,025,081 | |||||||||||||||||||||||||||
| Investments in New Businesses: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs | $1,870 | $1,958 | $2,053 | $2,025 | $2,016 | |||||||||||||||||||||||||||
| Liquidity funds | 236 | 205 | 197 | 286 | 262 | |||||||||||||||||||||||||||
| Total assets under management | $2,106 | $2,163 | $2,250 | $2,311 | $2,278 | |||||||||||||||||||||||||||
| Client assets under advisement | 1,406 | 1,423 | 1,423 | 1,397 | 1,165 | |||||||||||||||||||||||||||
| Total assets | $3,512 | $3,586 | $3,673 | $3,708 | $3,443 | |||||||||||||||||||||||||||
| LSV Asset Management: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs (B) | $103,583 | $99,924 | $97,381 | $96,449 | $87,818 | |||||||||||||||||||||||||||
| Total: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs (C) | $301,807 | $299,681 | $296,693 | $290,937 | $264,954 | |||||||||||||||||||||||||||
| Collective trust fund programs | 84,628 | 89,452 | 90,468 | 86,644 | 131,447 | |||||||||||||||||||||||||||
| Liquidity funds | 10,589 | 10,798 | 11,175 | 12,495 | 13,509 | |||||||||||||||||||||||||||
| Total assets under management | $397,024 | $399,931 | $398,336 | $390,076 | $409,910 | |||||||||||||||||||||||||||
| Client assets under advisement | 5,922 | 6,081 | 6,235 | 6,286 | 5,152 | |||||||||||||||||||||||||||
| Client assets under administration (D) | 858,215 | 855,659 | 884,325 | 893,354 | 897,524 | |||||||||||||||||||||||||||
| Platform-only assets | 13,292 | 13,863 | 14,341 | 13,978 | 13,142 | |||||||||||||||||||||||||||
| Total assets | $1,274,453 | $1,275,534 | $1,303,237 | $1,303,694 | $1,325,728 | |||||||||||||||||||||||||||
(A) Average client assets under administration in the Investment Managers segment during second-quarter 2022 include $80.7 billion that are at fee levels below our normal full-service assets.
(B) Equity and fixed-income programs include $2.1 billion of average assets managed by LSV in which fees are based on performance only during second-quarter 2022.
(C) Equity and fixed-income programs include $6.9 billion of average assets invested in various asset allocation funds during second-quarter 2022.
(D) In addition to the numbers presented, SEI also administers an additional $13.1 billion of average assets in Funds of Funds assets during second-quarter 2022 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