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, October 26, 2022, SEI Investments Company (the "Company") issued a press release announcing its financial and operating results for the third quarter ended September 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 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: | October 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: 9
FOR IMMEDIATE RELEASE
SEI Reports Third-Quarter 2022 Financial Results
OAKS, Pa., Oct. 26, 2022 – SEI Investments Company (NASDAQ:SEIC) today announced financial results for the third-quarter 2022. Diluted earnings per share were $0.45 in third-quarter 2022 compared to $0.97 in third-quarter 2021. Diluted earnings per share reflect one-time costs of the voluntary separation program of $57.0 million, or $0.32 per share.
| Consolidated Overview | ||||||||||||||||||||||||||||||||||||||
| (In thousands, except earnings per share) | For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||
| 2022 | 2021 | % | 2022 | 2021 | % | |||||||||||||||||||||||||||||||||
| Revenues | $471,334 | $485,322 | (3)% | $1,534,447 | $1,416,659 | 8% | ||||||||||||||||||||||||||||||||
| Net income | 61,659 | 138,045 | (55)% | 363,243 | 401,293 | (9)% | ||||||||||||||||||||||||||||||||
| Diluted earnings per share | $0.45 | $0.97 | (54)% | $2.63 | $2.79 | (6)% | ||||||||||||||||||||||||||||||||
“Our third-quarter financial results reflect strong sales activity from market adoption of our solutions. Revenue and profits were impacted by lower capital market performance, one-time costs associated with our voluntary separation program, and continued inflationary pressures on costs. All of our markets are facing a changing landscape, and while this change is challenging, we believe it reinforces growth opportunity for SEI,” said CEO Ryan Hicke.
“We will continue to take the important and necessary steps to invest in our talent and capabilities, while aligning our company for organic and inorganic growth. This is an exciting time for SEI, and we will capitalize on our unmatched position at the intersection of asset management and technology. I remain enthusiastic about SEI’s future as we set the direction and pace of growth to deliver value for our employees, clients, and shareholders.”
1
Summary of Third-Quarter Results by Business Segment
| (In thousands) | For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||
| 2022 | 2021 | % | 2022 | 2021 | % | |||||||||||||||||||||||||||||||||
| Private Banks: | ||||||||||||||||||||||||||||||||||||||
| Revenues | $122,660 | $123,018 | —% | $460,392 | $364,302 | 26% | ||||||||||||||||||||||||||||||||
| Expenses | 116,661 | 116,679 | —% | 359,676 | 345,057 | 4% | ||||||||||||||||||||||||||||||||
| Operating Profit | 5,999 | 6,339 | (5)% | 100,716 | 19,245 | NM | ||||||||||||||||||||||||||||||||
| Operating Margin | 5 | % | 5 | % | 22 | % | 5 | % | ||||||||||||||||||||||||||||||
| Investment Advisors: | ||||||||||||||||||||||||||||||||||||||
| Revenues | 109,565 | 124,768 | (12)% | 341,989 | 357,458 | (4)% | ||||||||||||||||||||||||||||||||
| Expenses | 61,150 | 62,107 | (2)% | 189,045 | 176,267 | 7% | ||||||||||||||||||||||||||||||||
| Operating Profit | 48,415 | 62,661 | (23)% | 152,944 | 181,191 | (16)% | ||||||||||||||||||||||||||||||||
| Operating Margin | 44 | % | 50 | % | 45 | % | 51 | % | ||||||||||||||||||||||||||||||
| Institutional Investors: | ||||||||||||||||||||||||||||||||||||||
| Revenues | 78,260 | 85,759 | (9)% | 248,582 | 255,957 | (3)% | ||||||||||||||||||||||||||||||||
| Expenses | 42,149 | 41,643 | 1% | 131,432 | 122,696 | 7% | ||||||||||||||||||||||||||||||||
| Operating Profit | 36,111 | 44,116 | (18)% | 117,150 | 133,261 | (12)% | ||||||||||||||||||||||||||||||||
| Operating Margin | 46 | % | 51 | % | 47 | % | 52 | % | ||||||||||||||||||||||||||||||
| Investment Managers: | ||||||||||||||||||||||||||||||||||||||
| Revenues | 156,015 | 147,412 | 6% | 468,842 | 426,639 | 10% | ||||||||||||||||||||||||||||||||
| Expenses | 100,876 | 89,594 | 13% | 300,520 | 257,609 | 17% | ||||||||||||||||||||||||||||||||
| Operating Profit | 55,139 | 57,818 | (5)% | 168,322 | 169,030 | —% | ||||||||||||||||||||||||||||||||
| Operating Margin | 35 | % | 39 | % | 36 | % | 40 | % | ||||||||||||||||||||||||||||||
| Investments in New Businesses: | ||||||||||||||||||||||||||||||||||||||
| Revenues | 4,834 | 4,365 | 11% | 14,642 | 12,303 | 19% | ||||||||||||||||||||||||||||||||
| Expenses | 9,915 | 12,820 | (23)% | 34,709 | 39,855 | (13)% | ||||||||||||||||||||||||||||||||
| Operating Loss | (5,081) | (8,455) | NM | (20,067) | (27,552) | NM | ||||||||||||||||||||||||||||||||
| Totals: | ||||||||||||||||||||||||||||||||||||||
| Revenues | $471,334 | $485,322 | (3)% | $1,534,447 | $1,416,659 | 8% | ||||||||||||||||||||||||||||||||
| Expenses | 330,751 | 322,843 | 2% | 1,015,382 | 941,484 | 8% | ||||||||||||||||||||||||||||||||
| Corporate Overhead Expenses | 89,537 | 21,354 | 319% | 137,360 | 65,192 | 111% | ||||||||||||||||||||||||||||||||
| Income from Operations | $51,046 | $141,125 | (64)% | $381,705 | $409,983 | (7)% | ||||||||||||||||||||||||||||||||
2
Third-Quarter Business Highlights:
•Revenues from Information processing and software servicing fees increased from new client conversions. 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 declined due to the significant decline in capital markets during the third-quarter 2022. This decline was partially offset by increased revenues from assets under administration.
•Average assets under management in equity and fixed income programs, excluding LSV, decreased $33.4 billion, or 17%, to $166.4 billion in the third-quarter 2022, as compared to $199.8 billion during the third-quarter 2021 (see attached Average Asset Balances schedules for further details).
•Average assets under administration decreased $69.1 billion, or 8%, to $786.6 billion in the third-quarter 2022, as compared to $855.7 billion during the third-quarter 2021 (see attached Average Asset Balances schedules for further details).
•Net sales events in the Private Banks and Investment Managers segments during third-quarter 2022 were $33.9 million and are expected to generate net annualized recurring revenues of approximately $26.7 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 third-quarter 2022 were negative $3.1 million due to the previously announced loss of a significant client of the Investment Advisors segment. Without this loss, net sales events were positive $2.5 million. Net cash flows for the Investment Advisors segment were positive $171.9 million into SEI asset management programs and positive $636.5 million into platform-only assets during third-quarter 2022.
•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. Operational expenses also increased due to personnel costs and investments in compliance infrastructure to meet new regulatory requirements. The increase was partially offset by lower direct costs related to asset management revenues and lower amortization expense.
•We finalized the Voluntary Separation Program (VSP) offered to long-tenured employees in July 2022 and recognized the total cost of the program of $57.0 million during the third-quarter 2022. This one-time cost is included in corporate overhead expenses and reflects a diluted earnings per share impact of $0.32 to third-quarter 2022 results. In addition, we incurred severance costs unrelated to the VSP of $5.2 million included in corporate overhead expenses during the third-quarter 2022.
•Earnings from LSV decreased to $26.7 million in the third-quarter 2022 as compared to $35.0 million in the third-quarter 2021 due to net negative cash flows from existing clients, market depreciation and client losses.
•We capitalized $6.8 million of software development costs in third-quarter 2022 for continued enhancements to SWP. Amortization expense related to SWP was $5.8 million in third-quarter 2022 as compared to $12.0 million in third-quarter 2021. The decline in amortization expense was due to the amortization period of the initial development costs related to SWP which ended in second-quarter 2022. Approximately $4.1 million of this reduction in amortization expense was related to the Private Banks segment and $1.3 million was related to the Investment Advisors segment.
•We also capitalized $4.2 million of software development costs in third-quarter 2022 for a new platform for the Investment Managers segment.
3
•Effective tax rates were 23.0% in third-quarter 2022 and 21.7% in third-quarter 2021. The increase in the effective tax rate was primarily due the timing of one-time state settlements, which reduced the effective rate in third-quarter 2021.
•We repurchased 890 thousand shares of our common stock for $49.4 million during the third-quarter 2022 at an average price of $55.55 per share.
•Cash flow from operations was $97.9 million, or $0.72 per share, and free cash flow was $74.4 million during the third-quarter 2022.
Earnings Conference Call
A conference call to review earnings is scheduled for 4:30 p.m. Eastern time on Oct. 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: 6671316.
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 Sept. 30, 2022, SEI manages, advises, or administers approximately $1.2 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 degree to which market conditions and trends create growth opportunities for us,
• 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,
• our strategies for investing in our talent, the timing of these investments and whether these investments will enable us to capitalize on opportunities for organic and inorganic growth, and
•whether we positioned for growth, and to deliver value to our employees, clients, and shareholders
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 drivers of expense growth,
•our priorities of right sizing our expenses to business growth opportunities and allocating spending to areas of accelerated growth are a priority,
•whether our previously announced voluntary separation plan will reduce our run-rate expenses going forward,
•the timing of client deconversions and the effect of these deconversions on our revenue,
•the value of our backlog and the strength of our pipelines,
•the impact of changes to our client’s businesses on our recurring revenue, including the divestiture of lines of business by our clients,
•whether we will take a one-time reduction in booked revenue in the 4th quarter as a consequence of discussions with Wells Fargo and the amount of any such reduction,
•whether we will add additional books from the client that went live on our SaaS SWP technology only offering,
•whether we will see revenue growth within many of our top clients,
•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 creating opportunities for diverse perspectives in talent from inside and outside of SEI will position us for growth or accelerate our growth,
•our ability to align our talent and solutions capabilities with our go-to-market strategy and the degree to which such alignment will enable us to capitalize on opportunities,
•whether our investments will create growth opportunities,
•whether we are positioned for sustainable growth and to take advantage of opportunities,
•the margins that our businesses may generate and the degree to which our reported margins will decline, increase or normalize,
•the degree to which one-time and transaction-based revenues during the quarter will be repeated,
•how we will manage our expenses,
•the strategic initiatives and business segments that we will pursue and those in which we will invest,
•the degree to which our organizational changes will strengthen our offerings and deepen relationships or help our clients succeed,
•our commitment to driving greater topline revenue growth and the success of such commitment,
•whether we have laid the groundwork for our future growth plans,
•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,
4
•the success, if any, of the sales and strategic initiatives we pursue,
•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,
•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, 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.
# # #
5
SEI INVESTMENTS COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
| Asset management, admin. and distribution fees | $372,133 | $393,296 | $1,148,824 | $1,143,451 | ||||||||||||||||||||||
| Information processing and software servicing fees | 99,201 | 92,026 | 385,623 | 273,208 | ||||||||||||||||||||||
| Total revenues | 471,334 | 485,322 | 1,534,447 | 1,416,659 | ||||||||||||||||||||||
| Subadvisory, distribution and other asset mgmt. costs | 47,334 | 55,619 | 150,485 | 161,610 | ||||||||||||||||||||||
| Software royalties and other information processing costs | 6,909 | 7,348 | 21,863 | 20,561 | ||||||||||||||||||||||
| Compensation, benefits and other personnel | 227,127 | 150,188 | 545,532 | 429,188 | ||||||||||||||||||||||
| Stock-based compensation | 10,766 | 11,318 | 31,339 | 31,173 | ||||||||||||||||||||||
| Consulting, outsourcing and professional fees | 58,558 | 55,868 | 184,320 | 165,657 | ||||||||||||||||||||||
| Data processing and computer related | 30,950 | 26,650 | 93,020 | 79,746 | ||||||||||||||||||||||
| Facilities, supplies and other costs | 19,704 | 14,124 | 57,464 | 49,851 | ||||||||||||||||||||||
| Amortization | 10,382 | 14,674 | 43,777 | 43,749 | ||||||||||||||||||||||
| Depreciation | 8,558 | 8,408 | 24,942 | 25,141 | ||||||||||||||||||||||
| Total expenses | 420,288 | 344,197 | 1,152,742 | 1,006,676 | ||||||||||||||||||||||
| Income from operations | 51,046 | 141,125 | 381,705 | 409,983 | ||||||||||||||||||||||
| Net (loss) gain on investments | (1,406) | (575) | (4,515) | 134 | ||||||||||||||||||||||
| Interest and dividend income | 3,962 | 892 | 6,663 | 2,715 | ||||||||||||||||||||||
| Interest expense | (143) | (101) | (604) | (354) | ||||||||||||||||||||||
| Equity in earnings of unconsolidated affiliate | 26,654 | 35,005 | 88,926 | 103,420 | ||||||||||||||||||||||
| Income before income taxes | 80,113 | 176,346 | 472,175 | 515,898 | ||||||||||||||||||||||
| Income taxes | 18,454 | 38,301 | 108,932 | 114,605 | ||||||||||||||||||||||
| Net income | $61,659 | $138,045 | $363,243 | $401,293 | ||||||||||||||||||||||
| Basic earnings per common share | $0.46 | $0.98 | $2.66 | $2.83 | ||||||||||||||||||||||
| Shares used to calculate basic earnings per share | 135,203 | 140,507 | 136,524 | 141,928 | ||||||||||||||||||||||
| Diluted earnings per common share | $0.45 | $0.97 | $2.63 | $2.79 | ||||||||||||||||||||||
| Shares used to calculate diluted earnings per share | 136,345 | 142,426 | 137,958 | 143,981 | ||||||||||||||||||||||
| Dividends declared per common share | $— | $— | $0.40 | $0.37 | ||||||||||||||||||||||
6
SEI INVESTMENTS COMPANY
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
| September 30, | December 31, | |||||||||||||
| 2022 | 2021 | |||||||||||||
| Assets | ||||||||||||||
| Current Assets: | ||||||||||||||
| Cash and cash equivalents | $791,437 | $831,407 | ||||||||||||
| Restricted cash | 351 | 351 | ||||||||||||
| Receivables from investment products | 91,223 | 59,036 | ||||||||||||
Receivables, net of allowance for doubtful accounts of $2,336 and $1,602 | 482,692 | 441,609 | ||||||||||||
| Securities owned | 31,586 | 28,267 | ||||||||||||
| Other current assets | 54,931 | 43,559 | ||||||||||||
| Total Current Assets | 1,452,220 | 1,404,229 | ||||||||||||
Property and Equipment, net of accumulated depreciation of $431,473 and $409,248 | 182,522 | 178,869 | ||||||||||||
| Operating Lease Right-of-Use Assets | 24,187 | 33,614 | ||||||||||||
Capitalized Software, net of accumulated amortization of $579,352 and $545,307 | 234,228 | 243,446 | ||||||||||||
| Available for Sale and Equity Securities | 109,375 | 129,541 | ||||||||||||
| Investments in Affiliated Funds, at fair value | 5,620 | 6,916 | ||||||||||||
| Investment in Unconsolidated Affiliate | 39,012 | 107,918 | ||||||||||||
| Goodwill | 117,509 | 117,232 | ||||||||||||
Intangible Assets, net of accumulated amortization of $27,133 and $17,716 | 58,201 | 68,782 | ||||||||||||
| Deferred Contract Costs | 37,790 | 36,236 | ||||||||||||
| Deferred Income Taxes | 2,253 | 2,983 | ||||||||||||
| Other Assets, net | 32,514 | 24,936 | ||||||||||||
| Total Assets | $2,295,431 | $2,354,702 | ||||||||||||
| Liabilities and Equity | ||||||||||||||
| Current Liabilities: | ||||||||||||||
| Accounts payable | $8,209 | $10,312 | ||||||||||||
| Accrued liabilities | 294,987 | 324,382 | ||||||||||||
| Current portion of long-term operating lease liabilities | 11,202 | 11,328 | ||||||||||||
| Deferred revenue | 13,025 | 9,721 | ||||||||||||
| Total Current Liabilities | 327,423 | 355,743 | ||||||||||||
| Borrowings Under Revolving Credit Facility | — | 40,000 | ||||||||||||
| Long-term Income Taxes Payable | 803 | 803 | ||||||||||||
| Deferred Income Taxes | 3,545 | 48,876 | ||||||||||||
| Long-term Operating Lease Liabilities | 18,361 | 27,639 | ||||||||||||
| Other Long-term Liabilities | 14,986 | 20,878 | ||||||||||||
| Total Liabilities | 365,118 | 493,939 | ||||||||||||
| Shareholders' Equity: | ||||||||||||||
Common stock, $0.01 par value, 750,000 shares authorized; 134,816 and 138,449 shares issued and outstanding | 1,348 | 1,384 | ||||||||||||
| Capital in excess of par value | 1,285,224 | 1,246,608 | ||||||||||||
| Retained earnings | 711,330 | 632,614 | ||||||||||||
| Accumulated other comprehensive loss, net | (67,589) | (19,843) | ||||||||||||
| Total Shareholders' Equity | 1,930,313 | 1,860,763 | ||||||||||||
| Total Liabilities and Shareholders' Equity | $2,295,431 | $2,354,702 | ||||||||||||
7
ENDING ASSET BALANCES
(In millions) (Unaudited)
| Sept. 30, | Dec. 31, | Mar. 31, | Jun. 30, | Sept. 30, | ||||||||||||||||||||||||||||
| 2021 | 2021 | 2022 | 2022 | 2022 | ||||||||||||||||||||||||||||
| Private Banks: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs | $25,618 | $26,281 | $25,335 | $22,277 | $20,131 | |||||||||||||||||||||||||||
| Collective trust fund programs | 6 | 6 | 7 | 7 | 7 | |||||||||||||||||||||||||||
| Liquidity funds | 3,988 | 4,724 | 4,225 | 3,666 | 3,778 | |||||||||||||||||||||||||||
| Total assets under management | $29,612 | $31,011 | $29,567 | $25,950 | $23,916 | |||||||||||||||||||||||||||
| Client assets under administration | 4,675 | 4,481 | 4,449 | 3,923 | 4,161 | |||||||||||||||||||||||||||
| Total assets | $34,287 | $35,492 | $34,016 | $29,873 | $28,077 | |||||||||||||||||||||||||||
| Investment Advisors: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs | $78,560 | $81,686 | $77,614 | $65,783 | $62,579 | |||||||||||||||||||||||||||
| Liquidity funds | 3,477 | 4,317 | 4,610 | 8,292 | 5,200 | |||||||||||||||||||||||||||
| Total Platform assets under management | $82,037 | $86,003 | $82,224 | $74,075 | $67,779 | |||||||||||||||||||||||||||
| Platform-only assets | 13,728 | 14,564 | 14,151 | 12,642 | 12,609 | |||||||||||||||||||||||||||
| Total Platform assets | $95,765 | $100,567 | $96,375 | $86,717 | $80,388 | |||||||||||||||||||||||||||
| Institutional Investors: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs | $89,441 | $91,719 | $87,358 | $75,506 | $69,621 | |||||||||||||||||||||||||||
| Collective trust fund programs | 5 | 5 | 6 | 5 | 6 | |||||||||||||||||||||||||||
| Liquidity funds | 2,599 | 2,118 | 2,150 | 1,654 | 1,640 | |||||||||||||||||||||||||||
| Total assets under management | $92,045 | $93,842 | $89,514 | $77,165 | $71,267 | |||||||||||||||||||||||||||
| Client assets under advisement | 4,698 | 4,857 | 4,778 | 4,218 | 4,204 | |||||||||||||||||||||||||||
| Total assets | $96,743 | $98,699 | $94,292 | $81,383 | $75,471 | |||||||||||||||||||||||||||
| Investment Managers: | ||||||||||||||||||||||||||||||||
| Collective trust fund programs (A) | $87,488 | $92,549 | $85,411 | $142,035 | $137,538 | |||||||||||||||||||||||||||
| Liquidity funds | 568 | 423 | 284 | 271 | 248 | |||||||||||||||||||||||||||
| Total assets under management | $88,056 | $92,972 | $85,695 | $142,306 | $137,786 | |||||||||||||||||||||||||||
| Client assets under administration | 861,605 | 907,377 | 895,181 | 885,096 | 781,246 | |||||||||||||||||||||||||||
| Total assets | $949,661 | $1,000,349 | $980,876 | $1,027,402 | $919,032 | |||||||||||||||||||||||||||
| Investments in New Businesses: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs | $1,964 | $2,096 | $2,057 | $1,903 | $1,813 | |||||||||||||||||||||||||||
| Liquidity funds | 202 | 240 | 305 | 242 | 221 | |||||||||||||||||||||||||||
| Total assets under management | $2,166 | $2,336 | $2,362 | $2,145 | $2,034 | |||||||||||||||||||||||||||
| Client assets under administration | 1,378 | 1,410 | 1,401 | 1,076 | 1,026 | |||||||||||||||||||||||||||
| Total assets | $3,544 | $3,746 | $3,763 | $3,221 | $3,060 | |||||||||||||||||||||||||||
| LSV Asset Management: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs (B) | $97,604 | $98,984 | $95,962 | $81,940 | $75,380 | |||||||||||||||||||||||||||
| Total: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs (C) | $293,187 | $300,766 | $288,326 | $247,409 | $229,524 | |||||||||||||||||||||||||||
| Collective trust fund programs | 87,499 | 92,560 | 85,424 | 142,047 | 137,551 | |||||||||||||||||||||||||||
| Liquidity funds | 10,834 | 11,822 | 11,574 | 14,125 | 11,087 | |||||||||||||||||||||||||||
| Total assets under management | $391,520 | $405,148 | $385,324 | $403,581 | $378,162 | |||||||||||||||||||||||||||
| Client assets under advisement | 6,076 | 6,267 | 6,179 | 5,294 | 5,230 | |||||||||||||||||||||||||||
| Client assets under administration (D) | 866,280 | 911,858 | 899,630 | 889,019 | 785,407 | |||||||||||||||||||||||||||
| Platform-only assets | 13,728 | 14,564 | 14,151 | 12,642 | 12,609 | |||||||||||||||||||||||||||
| Total assets | $1,277,604 | $1,337,837 | $1,305,284 | $1,310,536 | $1,181,408 | |||||||||||||||||||||||||||
(A)Collective trust fund program assets in the Investment Managers segment are included in assets under management since SEI is the trustee. Fees earned on this product are less than fees earned on customized asset management programs.
(B)Equity and fixed-income programs include $1.7 billion of assets managed by LSV in which fees are based solely on performance and are not calculated as an asset-based fee (as of September 30, 2022).
(C)Equity and fixed-income programs include $6.2 billion of assets invested in various asset allocation funds (as of September 30, 2022).
(D) In addition to the assets presented, SEI also administers an additional $12.5 billion in Funds of Funds assets on which SEI does not earn an administration fee (as of September 30, 2022).
8
AVERAGE ASSET BALANCES
(In millions) (Unaudited)
| 3rd Qtr. | 4th Qtr. | 1st Qtr. | 2nd Qtr. | 3rd Qtr. | ||||||||||||||||||||||||||||
| 2021 | 2021 | 2022 | 2022 | 2022 | ||||||||||||||||||||||||||||
| Private Banks: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs | $26,232 | $25,999 | $25,637 | $23,713 | $22,115 | |||||||||||||||||||||||||||
| Collective trust fund programs | 6 | 6 | 6 | 7 | 7 | |||||||||||||||||||||||||||
| Liquidity funds | 3,916 | 4,452 | 4,403 | 3,795 | 3,742 | |||||||||||||||||||||||||||
| Total assets under management | $30,154 | $30,457 | $30,046 | $27,515 | $25,864 | |||||||||||||||||||||||||||
| Client assets under administration | 4,476 | 4,607 | 4,500 | 4,163 | 4,026 | |||||||||||||||||||||||||||
| Total assets | $34,630 | $35,064 | $34,546 | $31,678 | $29,890 | |||||||||||||||||||||||||||
| Investment Advisors: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs | $79,602 | $80,703 | $77,576 | $70,436 | $67,464 | |||||||||||||||||||||||||||
| Liquidity funds | 3,403 | 3,644 | 5,151 | 7,070 | 5,380 | |||||||||||||||||||||||||||
| Total Platform assets under management | $83,005 | $84,347 | $82,727 | $77,506 | $72,844 | |||||||||||||||||||||||||||
| Platform-only assets | 13,863 | 14,341 | 13,978 | 13,142 | 13,271 | |||||||||||||||||||||||||||
| Total Platform assets | $96,868 | $98,688 | $96,705 | $90,648 | $86,115 | |||||||||||||||||||||||||||
| Institutional Investors: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs | $91,965 | $90,557 | $89,250 | $80,971 | $74,859 | |||||||||||||||||||||||||||
| Collective trust fund programs | 5 | 5 | 5 | 5 | 6 | |||||||||||||||||||||||||||
| Liquidity funds | 2,742 | 2,391 | 2,223 | 2,097 | 1,717 | |||||||||||||||||||||||||||
| Total assets under management | $94,712 | $92,953 | $91,478 | $83,073 | $76,582 | |||||||||||||||||||||||||||
| Client assets under advisement | 4,658 | 4,812 | 4,889 | 3,987 | 4,194 | |||||||||||||||||||||||||||
| Total assets | $99,370 | $97,765 | $96,367 | $87,060 | $80,776 | |||||||||||||||||||||||||||
| Investment Managers: | ||||||||||||||||||||||||||||||||
| Collective trust fund programs (A) | $89,441 | $90,457 | $86,633 | $131,435 | $143,817 | |||||||||||||||||||||||||||
| Liquidity funds | 532 | 491 | 432 | 285 | 250 | |||||||||||||||||||||||||||
| Total assets under management | $89,973 | $90,948 | $87,065 | $131,720 | $144,067 | |||||||||||||||||||||||||||
| Client assets under administration | 851,183 | 879,718 | 888,854 | 893,361 | 782,559 | |||||||||||||||||||||||||||
| Total assets | $941,156 | $970,666 | $975,919 | $1,025,081 | $926,626 | |||||||||||||||||||||||||||
| Investments in New Businesses: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs | $1,958 | $2,053 | $2,025 | $2,016 | $1,939 | |||||||||||||||||||||||||||
| Liquidity funds | 205 | 197 | 286 | 262 | 231 | |||||||||||||||||||||||||||
| Total assets under management | $2,163 | $2,250 | $2,311 | $2,278 | $2,170 | |||||||||||||||||||||||||||
| Client assets under advisement | 1,423 | 1,423 | 1,397 | 1,165 | 1,126 | |||||||||||||||||||||||||||
| Total assets | $3,586 | $3,673 | $3,708 | $3,443 | $3,296 | |||||||||||||||||||||||||||
| LSV Asset Management: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs (B) | $99,924 | $97,381 | $96,449 | $87,818 | $81,241 | |||||||||||||||||||||||||||
| Total: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs (C) | $299,681 | $296,693 | $290,937 | $264,954 | $247,618 | |||||||||||||||||||||||||||
| Collective trust fund programs | 89,452 | 90,468 | 86,644 | 131,447 | 143,830 | |||||||||||||||||||||||||||
| Liquidity funds | 10,798 | 11,175 | 12,495 | 13,509 | 11,320 | |||||||||||||||||||||||||||
| Total assets under management | $399,931 | $398,336 | $390,076 | $409,910 | $402,768 | |||||||||||||||||||||||||||
| Client assets under advisement | 6,081 | 6,235 | 6,286 | 5,152 | 5,320 | |||||||||||||||||||||||||||
| Client assets under administration (D) | 855,659 | 884,325 | 893,354 | 897,524 | 786,585 | |||||||||||||||||||||||||||
| Platform-only assets | 13,863 | 14,341 | 13,978 | 13,142 | 13,271 | |||||||||||||||||||||||||||
| Total assets | $1,275,534 | $1,303,237 | $1,303,694 | $1,325,728 | $1,207,944 | |||||||||||||||||||||||||||
(A) Collective trust fund program average assets in the Investment Managers segment are included in assets under management since SEI is the trustee. Fees earned on this product are less than fees earned on customized asset management programs.
(B) Equity and fixed-income programs during third-quarter 2022 include $1.8 billion of average assets managed by LSV in which fees are based solely on performance and are not calculated as an asset-based fee.
(C) Equity and fixed-income programs include $6.3 billion of average assets invested in various asset allocation funds during third-quarter 2022.
(D) In addition to the assets presented, SEI also administers an additional $12.7 billion of average assets in Funds of Funds assets during third-quarter 2022 on which SEI does not earn an administration fee.
9