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 25, 2023, SEI Investments Company (the "Company") issued a press release announcing its financial and operating results for the fourth quarter ended December 31, 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: | January 25, 2023 | 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 Fourth-Quarter 2022 Financial Results
OAKS, Pa., Jan. 25, 2023 – SEI Investments Company (NASDAQ:SEIC) today announced financial results for the fourth-quarter 2022. Diluted earnings per share were $0.83 in fourth-quarter 2022 compared to $1.03 in fourth-quarter 2021.
| Consolidated Overview | ||||||||||||||||||||||||||||||||||||||
| (In thousands, except earnings per share) | For the Three Months Ended December 31, | For the Twelve Months Ended December 31, | ||||||||||||||||||||||||||||||||||||
| 2022 | 2021 | % | 2022 | 2021 | % | |||||||||||||||||||||||||||||||||
| Revenues | $456,590 | $501,650 | (9)% | $1,991,037 | $1,918,309 | 4% | ||||||||||||||||||||||||||||||||
| Net income | 112,224 | 145,300 | (23)% | 475,467 | 546,593 | (13)% | ||||||||||||||||||||||||||||||||
| Diluted earnings per share | $0.83 | $1.03 | (19)% | $3.46 | $3.81 | (9)% | ||||||||||||||||||||||||||||||||
“2022 was a year of evolution for SEI. As we reposition our company's future, we've made—and continue to make—the changes we believe are necessary to execute against our strategy to drive growth. As we look at the year ahead, we will work to grow our revenue, improve the overall efficiency and scale of our business, and invest wisely in our future. I’m excited for what lies ahead as we deliver increased value for our employees, clients, and shareholders,” said CEO Ryan Hicke.
“Our financial results for 2022 reflect our focus on growth through new client signings, important recontracts, and successful delivery of our solutions to our markets. Numerous economic factors continue to create change in our industry and challenges for our markets. We believe this environment presents growth opportunities, and we remain committed to our vision for SEI’s future.”
1
Summary of Fourth-Quarter Results by Business Segment
| (In thousands) | For the Three Months Ended December 31, | For the Twelve Months Ended December 31, | ||||||||||||||||||||||||||||||||||||
| 2022 | 2021 | % | 2022 | 2021 | % | |||||||||||||||||||||||||||||||||
| Private Banks: | ||||||||||||||||||||||||||||||||||||||
| Revenues | $115,233 | $129,268 | (11)% | $575,625 | $493,570 | 17% | ||||||||||||||||||||||||||||||||
| Expenses | 113,533 | 117,739 | (4)% | 473,209 | 462,796 | 2% | ||||||||||||||||||||||||||||||||
| Operating Profit | 1,700 | 11,529 | (85)% | 102,416 | 30,774 | 233% | ||||||||||||||||||||||||||||||||
| Operating Margin | 1 | % | 9 | % | 18 | % | 6 | % | ||||||||||||||||||||||||||||||
| Investment Advisors: | ||||||||||||||||||||||||||||||||||||||
| Revenues | 105,777 | 125,491 | (16)% | 447,766 | 482,949 | (7)% | ||||||||||||||||||||||||||||||||
| Expenses | 62,605 | 64,067 | (2)% | 251,650 | 240,334 | 5% | ||||||||||||||||||||||||||||||||
| Operating Profit | 43,172 | 61,424 | (30)% | 196,116 | 242,615 | (19)% | ||||||||||||||||||||||||||||||||
| Operating Margin | 41 | % | 49 | % | 44 | % | 50 | % | ||||||||||||||||||||||||||||||
| Institutional Investors: | ||||||||||||||||||||||||||||||||||||||
| Revenues | 74,771 | 87,848 | (15)% | 323,353 | 343,805 | (6)% | ||||||||||||||||||||||||||||||||
| Expenses | 40,820 | 45,374 | (10)% | 172,252 | 168,070 | 2% | ||||||||||||||||||||||||||||||||
| Operating Profit | 33,951 | 42,474 | (20)% | 151,101 | 175,735 | (14)% | ||||||||||||||||||||||||||||||||
| Operating Margin | 45 | % | 48 | % | 47 | % | 51 | % | ||||||||||||||||||||||||||||||
| Investment Managers: | ||||||||||||||||||||||||||||||||||||||
| Revenues | 156,076 | 154,518 | 1% | 624,918 | 581,157 | 8% | ||||||||||||||||||||||||||||||||
| Expenses | 104,330 | 91,046 | 15% | 404,850 | 348,655 | 16% | ||||||||||||||||||||||||||||||||
| Operating Profit | 51,746 | 63,472 | (18)% | 220,068 | 232,502 | (5)% | ||||||||||||||||||||||||||||||||
| Operating Margin | 33 | % | 41 | % | 35 | % | 40 | % | ||||||||||||||||||||||||||||||
| Investments in New Businesses: | ||||||||||||||||||||||||||||||||||||||
| Revenues | 4,733 | 4,525 | 5% | 19,375 | 16,828 | 15% | ||||||||||||||||||||||||||||||||
| Expenses | 10,450 | 13,364 | (22)% | 45,159 | 53,219 | (15)% | ||||||||||||||||||||||||||||||||
| Operating Loss | (5,717) | (8,839) | NM | (25,784) | (36,391) | NM | ||||||||||||||||||||||||||||||||
| Totals: | ||||||||||||||||||||||||||||||||||||||
| Revenues | $456,590 | $501,650 | (9)% | $1,991,037 | $1,918,309 | 4% | ||||||||||||||||||||||||||||||||
| Expenses | 331,738 | 331,590 | —% | 1,347,120 | 1,273,074 | 6% | ||||||||||||||||||||||||||||||||
| Corporate Overhead Expenses | 30,804 | 26,662 | 16% | 168,164 | 91,854 | 83% | ||||||||||||||||||||||||||||||||
| Income from Operations | $94,048 | $143,398 | (34)% | $475,753 | $553,381 | (14)% | ||||||||||||||||||||||||||||||||
2
Fourth-Quarter Business Highlights:
•Revenues from Assets under management, administration, and distribution fees declined primarily from lower assets under management from the significant market depreciation during 2022 which negatively impacted our asset-based fee revenues.
•Revenues from Information processing and software servicing fees decreased primarily from an adjustment during the quarter to revenue for a client that reduced their business processed with the Company through divestment.
•Average assets under management in equity and fixed income programs, excluding LSV, decreased $36.9 billion, or 19%, to $162.4 billion in the fourth-quarter 2022, as compared to $199.3 billion during the fourth-quarter 2021 (see attached Average Asset Balances schedules for further details).
•Average assets under administration decreased $94.4 billion, or 11%, to $789.9 billion in the fourth-quarter 2022, as compared to $884.3 billion during the fourth-quarter 2021 (see attached Average Asset Balances schedules for further details).
•Net sales events in the Private Banks and Investment Managers segments during fourth-quarter 2022 were $25.0 million and are expected to generate net annualized recurring revenues of approximately $15.1 million when contract values are completely realized. For the year ended 2022, net sales events in the Private Banks and Investment Managers segments were $72.5 million and are expected to generate net annualized recurring revenues of approximately $51.1 million when contract values are completely realized.
•During the fourth-quarter 2022, the Private Banks and Investment Managers segments recontracted a combined $108.1 million in recurring revenue. One of the recontracts in the Private Banks segment, while successful in extending the relationship, resulted in a reduction in contracted annual recurring revenue of approximately $8.3 million. This reduction is not included in the net sales events in the Private banks segment for the fourth-quarter or the year ended 2022.
•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 2022 were negative $4.7 million. For the year ended 2022, net sales events were negative $4.9 million primarily due to the previously announced loss of a significant client of the Investment Advisors segment. Without this loss, net sales events were essentially flat.
•Operational expenses increased due to higher personnel costs from 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 substantially offset by lower direct costs related to asset management revenues and lower amortization expense.
•Earnings from LSV decreased to $31.7 million in the fourth-quarter 2022 as compared to $34.2 million in the fourth-quarter 2021 due to net negative cash flows from existing clients, market depreciation and client losses. The decline in earnings was partially offset by higher performance fees earned by LSV.
•We capitalized $6.2 million of software development costs in fourth-quarter 2022 for continued enhancements to SWP. Amortization expense related to SWP was $5.9 million in fourth-quarter 2022 as compared to $11.9 million in fourth-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.
•We also capitalized $4.3 million of software development costs in fourth-quarter 2022 for enhancements to an existing platform for the Investment Managers segment.
3
•We recognized other income of $3.4 million in fourth-quarter 2022 related to insurance recoveries for weather-related damage to our corporate headquarters.
•Effective tax rates were 18.1% in fourth-quarter 2022 and 18.3% in fourth-quarter 2021.
•We repurchased 1.3 million shares of our common stock for $79.6 million during the fourth-quarter 2022 at an average price of $59.36 per share.
•Cash flow from operations was $137.6 million, or $1.01 per share, and free cash flow was $120.3 million during the fourth-quarter 2022.
Earnings Conference Call
A conference call to review earnings is scheduled for 4:30 p.m. Eastern time on Jan. 25, 2023. 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: 9166923.
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, 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,
•our strategic focus, and
•whether we will:
•make the necessary changes to execute against our strategy to drive growth,
•invest wisely in our future, or
•deliver increased value for 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:
•whether we will increase our revenue over time from those clients to which we have granted price concessions,
•whether we will expand any of our relationships with any of our clients,
•the negative consequences for us, if any, with respect to those of our clients that are involved in M&A activity,
•the degree to which outsourcing activity will grow and our ability to take advantage of this trend, if any,
•the strength of activity in our Investment Advisors segment,
•the expense trends in any of our market segments,
•whether we will generate positive sales momentum,
•the extent, scope and strategies of our expense management,
•our strategies for managing,
•the success, if any, that we may have in our Investment Managers market segment,
•our strategy for the unbundling of our investment options and the value our clients may see in this strategy,
•the growth opportunities for our Institutional Investors market segment,
•the degree to which our Private Banks market segment is positioned for growth,
•the drivers of expense growth,
•our priorities of right sizing our expenses to business growth opportunities and allocating spending to areas of accelerated growth,
•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,
•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,
•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,
•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,
•our commitment to driving greater topline revenue growth and the success of such commitment,
4
•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,
•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 December 31, | For the Twelve Months Ended December 31, | |||||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
| Asset management, admin. and distribution fees | $365,239 | $403,565 | $1,514,063 | $1,547,016 | ||||||||||||||||||||||
| Information processing and software servicing fees | 91,351 | 98,085 | 476,974 | 371,293 | ||||||||||||||||||||||
| Total revenues | 456,590 | 501,650 | 1,991,037 | 1,918,309 | ||||||||||||||||||||||
| Subadvisory, distribution and other asset mgmt. costs | 46,247 | 56,458 | 196,732 | 218,068 | ||||||||||||||||||||||
| Software royalties and other information processing costs | 7,143 | 7,198 | 29,006 | 27,759 | ||||||||||||||||||||||
| Compensation, benefits and other personnel | 174,497 | 155,309 | 720,029 | 584,497 | ||||||||||||||||||||||
| Stock-based compensation | 8,064 | 10,278 | 39,403 | 41,451 | ||||||||||||||||||||||
| Consulting, outsourcing and professional fees | 57,693 | 57,543 | 242,013 | 223,200 | ||||||||||||||||||||||
| Data processing and computer related | 32,151 | 27,814 | 125,171 | 107,560 | ||||||||||||||||||||||
| Facilities, supplies and other costs | 17,529 | 19,909 | 74,993 | 69,760 | ||||||||||||||||||||||
| Amortization | 10,503 | 15,403 | 54,280 | 59,152 | ||||||||||||||||||||||
| Depreciation | 8,715 | 8,340 | 33,657 | 33,481 | ||||||||||||||||||||||
| Total expenses | 362,542 | 358,252 | 1,515,284 | 1,364,928 | ||||||||||||||||||||||
| Income from operations | 94,048 | 143,398 | 475,753 | 553,381 | ||||||||||||||||||||||
| Net gain (loss) on investments | 1,437 | (500) | (3,078) | (366) | ||||||||||||||||||||||
| Interest and dividend income | 6,645 | 934 | 13,308 | 3,649 | ||||||||||||||||||||||
| Interest expense | (145) | (209) | (749) | (563) | ||||||||||||||||||||||
| Other income | 3,379 | — | 3,379 | — | ||||||||||||||||||||||
| Equity in earnings of unconsolidated affiliate | 31,741 | 34,152 | 120,667 | 137,572 | ||||||||||||||||||||||
| Income before income taxes | 137,105 | 177,775 | 609,280 | 693,673 | ||||||||||||||||||||||
| Income taxes | 24,881 | 32,475 | 133,813 | 147,080 | ||||||||||||||||||||||
| Net income | $112,224 | $145,300 | $475,467 | $546,593 | ||||||||||||||||||||||
| Basic earnings per common share | $0.83 | $1.04 | $3.49 | $3.87 | ||||||||||||||||||||||
| Shares used to calculate basic earnings per share | 134,714 | 139,080 | 136,071 | 141,216 | ||||||||||||||||||||||
| Diluted earnings per common share | $0.83 | $1.03 | $3.46 | $3.81 | ||||||||||||||||||||||
| Shares used to calculate diluted earnings per share | 135,818 | 141,305 | 137,423 | 143,312 | ||||||||||||||||||||||
| Dividends declared per common share | $0.43 | $0.40 | $0.83 | $0.77 | ||||||||||||||||||||||
6
SEI INVESTMENTS COMPANY
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
| December 31, | December 31, | |||||||||||||
| 2022 | 2021 | |||||||||||||
| Assets | ||||||||||||||
| Current Assets: | ||||||||||||||
| Cash and cash equivalents | $853,008 | $831,407 | ||||||||||||
| Restricted cash | 351 | 351 | ||||||||||||
| Receivables from investment products | 62,014 | 59,036 | ||||||||||||
Receivables, net of allowance for doubtful accounts of $901 and $1,602 | 457,084 | 441,609 | ||||||||||||
| Securities owned | 32,148 | 28,267 | ||||||||||||
| Other current assets | 48,703 | 43,559 | ||||||||||||
| Total Current Assets | 1,453,308 | 1,404,229 | ||||||||||||
Property and Equipment, net of accumulated depreciation of $440,861 and $409,248 | 181,029 | 178,869 | ||||||||||||
| Operating Lease Right-of-Use Assets | 24,992 | 33,614 | ||||||||||||
Capitalized Software, net of accumulated amortization of $586,744 and $545,307 | 237,302 | 243,446 | ||||||||||||
| Available for Sale and Equity Securities | 128,201 | 129,541 | ||||||||||||
| Investments in Affiliated Funds, at fair value | 6,366 | 6,916 | ||||||||||||
| Investment in Unconsolidated Affiliate | 104,673 | 107,918 | ||||||||||||
| Goodwill | 115,599 | 117,232 | ||||||||||||
Intangible Assets, net of accumulated amortization of $30,261 and $17,716 | 55,532 | 68,782 | ||||||||||||
| Deferred Contract Costs | 37,928 | 36,236 | ||||||||||||
| Deferred Income Taxes | 4,936 | 2,983 | ||||||||||||
| Other Assets, net | 33,687 | 24,936 | ||||||||||||
| Total Assets | $2,383,553 | $2,354,702 | ||||||||||||
| Liabilities and Equity | ||||||||||||||
| Current Liabilities: | ||||||||||||||
| Accounts payable | $13,283 | $10,312 | ||||||||||||
| Accrued liabilities | 359,363 | 324,382 | ||||||||||||
| Current portion of long-term operating lease liabilities | 10,344 | 11,328 | ||||||||||||
| Deferred revenue | 14,893 | 9,721 | ||||||||||||
| Total Current Liabilities | 397,883 | 355,743 | ||||||||||||
| Borrowings Under Revolving Credit Facility | — | 40,000 | ||||||||||||
| Long-term Income Taxes Payable | 803 | 803 | ||||||||||||
| Deferred Income Taxes | — | 48,876 | ||||||||||||
| Long-term Operating Lease Liabilities | 18,786 | 27,639 | ||||||||||||
| Other Long-term Liabilities | 12,257 | 20,878 | ||||||||||||
| Total Liabilities | 429,729 | 493,939 | ||||||||||||
| Shareholders' Equity: | ||||||||||||||
Common stock, $0.01 par value, 750,000 shares authorized; 134,162 and 138,449 shares issued and outstanding | 1,342 | 1,384 | ||||||||||||
| Capital in excess of par value | 1,307,162 | 1,246,608 | ||||||||||||
| Retained earnings | 694,287 | 632,614 | ||||||||||||
| Accumulated other comprehensive loss, net | (48,967) | (19,843) | ||||||||||||
| Total Shareholders' Equity | 1,953,824 | 1,860,763 | ||||||||||||
| Total Liabilities and Shareholders' Equity | $2,383,553 | $2,354,702 | ||||||||||||
7
ENDING ASSET BALANCES
(In millions) (Unaudited)
| Dec. 31, | Mar. 31, | Jun. 30, | Sept. 30, | Dec. 31, | ||||||||||||||||||||||||||||
| 2021 | 2022 | 2022 | 2022 | 2022 | ||||||||||||||||||||||||||||
| Private Banks: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs | $26,281 | $25,335 | $22,277 | $20,131 | $22,377 | |||||||||||||||||||||||||||
| Collective trust fund programs | 6 | 7 | 7 | 7 | 7 | |||||||||||||||||||||||||||
| Liquidity funds | 4,724 | 4,225 | 3,666 | 3,778 | 3,201 | |||||||||||||||||||||||||||
| Total assets under management | $31,011 | $29,567 | $25,950 | $23,916 | $25,585 | |||||||||||||||||||||||||||
| Client assets under administration | 4,481 | 4,449 | 3,923 | 4,161 | 4,151 | |||||||||||||||||||||||||||
| Total assets | $35,492 | $34,016 | $29,873 | $28,077 | $29,736 | |||||||||||||||||||||||||||
| Investment Advisors: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs | $81,686 | $77,614 | $65,783 | $62,579 | $66,240 | |||||||||||||||||||||||||||
| Liquidity funds | 4,317 | 4,610 | 8,292 | 5,200 | 5,436 | |||||||||||||||||||||||||||
| Total Platform assets under management | $86,003 | $82,224 | $74,075 | $67,779 | $71,676 | |||||||||||||||||||||||||||
| Platform-only assets | 14,564 | 14,151 | 12,642 | 12,609 | 13,931 | |||||||||||||||||||||||||||
| Total Platform assets | $100,567 | $96,375 | $86,717 | $80,388 | $85,607 | |||||||||||||||||||||||||||
| Institutional Investors: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs | $91,719 | $87,358 | $75,506 | $69,621 | $73,178 | |||||||||||||||||||||||||||
| Collective trust fund programs | 5 | 6 | 5 | 6 | 5 | |||||||||||||||||||||||||||
| Liquidity funds | 2,118 | 2,150 | 1,654 | 1,640 | 1,557 | |||||||||||||||||||||||||||
| Total assets under management | $93,842 | $89,514 | $77,165 | $71,267 | $74,740 | |||||||||||||||||||||||||||
| Client assets under advisement | 4,857 | 4,778 | 4,218 | 4,204 | 4,314 | |||||||||||||||||||||||||||
| Total assets | $98,699 | $94,292 | $81,383 | $75,471 | $79,054 | |||||||||||||||||||||||||||
| Investment Managers: | ||||||||||||||||||||||||||||||||
| Collective trust fund programs (A) | $92,549 | $85,411 | $142,035 | $137,538 | $141,285 | |||||||||||||||||||||||||||
| Liquidity funds | 423 | 284 | 271 | 248 | 199 | |||||||||||||||||||||||||||
| Total assets under management | $92,972 | $85,695 | $142,306 | $137,786 | $141,484 | |||||||||||||||||||||||||||
| Client assets under administration | 907,377 | 895,181 | 885,096 | 781,246 | 810,491 | |||||||||||||||||||||||||||
| Total assets | $1,000,349 | $980,876 | $1,027,402 | $919,032 | $951,975 | |||||||||||||||||||||||||||
| Investments in New Businesses: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs | $2,096 | $2,057 | $1,903 | $1,813 | $1,912 | |||||||||||||||||||||||||||
| Liquidity funds | 240 | 305 | 242 | 221 | 215 | |||||||||||||||||||||||||||
| Total assets under management | $2,336 | $2,362 | $2,145 | $2,034 | $2,127 | |||||||||||||||||||||||||||
| Client assets under administration | 1,410 | 1,401 | 1,076 | 1,026 | 1,077 | |||||||||||||||||||||||||||
| Total assets | $3,746 | $3,763 | $3,221 | $3,060 | $3,204 | |||||||||||||||||||||||||||
| LSV Asset Management: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs (B) | $98,984 | $95,962 | $81,940 | $75,380 | $83,753 | |||||||||||||||||||||||||||
| Total: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs (C) | $300,766 | $288,326 | $247,409 | $229,524 | $247,460 | |||||||||||||||||||||||||||
| Collective trust fund programs | 92,560 | 85,424 | 142,047 | 137,551 | 141,297 | |||||||||||||||||||||||||||
| Liquidity funds | 11,822 | 11,574 | 14,125 | 11,087 | 10,608 | |||||||||||||||||||||||||||
| Total assets under management | $405,148 | $385,324 | $403,581 | $378,162 | $399,365 | |||||||||||||||||||||||||||
| Client assets under advisement | 6,267 | 6,179 | 5,294 | 5,230 | 5,391 | |||||||||||||||||||||||||||
| Client assets under administration (D) | 911,858 | 899,630 | 889,019 | 785,407 | 814,642 | |||||||||||||||||||||||||||
| Platform-only assets | 14,564 | 14,151 | 12,642 | 12,609 | 13,931 | |||||||||||||||||||||||||||
| Total assets | $1,337,837 | $1,305,284 | $1,310,536 | $1,181,408 | $1,233,329 | |||||||||||||||||||||||||||
(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 $2.1 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 December 31, 2022).
(C)Equity and fixed-income programs include $6.4 billion of assets invested in various asset allocation funds (as of December 31, 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 December 31, 2022).
8
AVERAGE ASSET BALANCES
(In millions) (Unaudited)
| 4th Qtr. | 1st Qtr. | 2nd Qtr. | 3rd Qtr. | 4th Qtr. | ||||||||||||||||||||||||||||
| 2021 | 2022 | 2022 | 2022 | 2022 | ||||||||||||||||||||||||||||
| Private Banks: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs | $25,999 | $25,637 | $23,713 | $22,115 | $21,839 | |||||||||||||||||||||||||||
| Collective trust fund programs | 6 | 6 | 7 | 7 | 7 | |||||||||||||||||||||||||||
| Liquidity funds | 4,452 | 4,403 | 3,795 | 3,742 | 3,395 | |||||||||||||||||||||||||||
| Total assets under management | $30,457 | $30,046 | $27,515 | $25,864 | $25,241 | |||||||||||||||||||||||||||
| Client assets under administration | 4,607 | 4,500 | 4,163 | 4,026 | 4,126 | |||||||||||||||||||||||||||
| Total assets | $35,064 | $34,546 | $31,678 | $29,890 | $29,367 | |||||||||||||||||||||||||||
| Investment Advisors: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs | $80,703 | $77,576 | $70,436 | $67,464 | $66,100 | |||||||||||||||||||||||||||
| Liquidity funds | 3,644 | 5,151 | 7,070 | 5,380 | 5,127 | |||||||||||||||||||||||||||
| Total Platform assets under management | $84,347 | $82,727 | $77,506 | $72,844 | $71,227 | |||||||||||||||||||||||||||
| Platform-only assets | 14,341 | 13,978 | 13,142 | 13,271 | 13,905 | |||||||||||||||||||||||||||
| Total Platform assets | $98,688 | $96,705 | $90,648 | $86,115 | $85,132 | |||||||||||||||||||||||||||
| Institutional Investors: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs | $90,557 | $89,250 | $80,971 | $74,859 | $72,581 | |||||||||||||||||||||||||||
| Collective trust fund programs | 5 | 5 | 5 | 6 | 5 | |||||||||||||||||||||||||||
| Liquidity funds | 2,391 | 2,223 | 2,097 | 1,717 | 1,719 | |||||||||||||||||||||||||||
| Total assets under management | $92,953 | $91,478 | $83,073 | $76,582 | $74,305 | |||||||||||||||||||||||||||
| Client assets under advisement | 4,812 | 4,889 | 3,987 | 4,194 | 4,251 | |||||||||||||||||||||||||||
| Total assets | $97,765 | $96,367 | $87,060 | $80,776 | $78,556 | |||||||||||||||||||||||||||
| Investment Managers: | ||||||||||||||||||||||||||||||||
| Collective trust fund programs (A) | $90,457 | $86,633 | $131,435 | $143,817 | $140,494 | |||||||||||||||||||||||||||
| Liquidity funds | 491 | 432 | 285 | 250 | 275 | |||||||||||||||||||||||||||
| Total assets under management | $90,948 | $87,065 | $131,720 | $144,067 | $140,769 | |||||||||||||||||||||||||||
| Client assets under administration | 879,718 | 888,854 | 893,361 | 782,559 | 785,813 | |||||||||||||||||||||||||||
| Total assets | $970,666 | $975,919 | $1,025,081 | $926,626 | $926,582 | |||||||||||||||||||||||||||
| Investments in New Businesses: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs | $2,053 | $2,025 | $2,016 | $1,939 | $1,890 | |||||||||||||||||||||||||||
| Liquidity funds | 197 | 286 | 262 | 231 | 208 | |||||||||||||||||||||||||||
| Total assets under management | $2,250 | $2,311 | $2,278 | $2,170 | $2,098 | |||||||||||||||||||||||||||
| Client assets under advisement | 1,423 | 1,397 | 1,165 | 1,126 | 1,075 | |||||||||||||||||||||||||||
| Total assets | $3,673 | $3,708 | $3,443 | $3,296 | $3,173 | |||||||||||||||||||||||||||
| LSV Asset Management: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs (B) | $97,381 | $96,449 | $87,818 | $81,241 | $83,370 | |||||||||||||||||||||||||||
| Total: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs (C) | $296,693 | $290,937 | $264,954 | $247,618 | $245,780 | |||||||||||||||||||||||||||
| Collective trust fund programs | 90,468 | 86,644 | 131,447 | 143,830 | 140,506 | |||||||||||||||||||||||||||
| Liquidity funds | 11,175 | 12,495 | 13,509 | 11,320 | 10,724 | |||||||||||||||||||||||||||
| Total assets under management | $398,336 | $390,076 | $409,910 | $402,768 | $397,010 | |||||||||||||||||||||||||||
| Client assets under advisement | 6,235 | 6,286 | 5,152 | 5,320 | 5,326 | |||||||||||||||||||||||||||
| Client assets under administration (D) | 884,325 | 893,354 | 897,524 | 786,585 | 789,939 | |||||||||||||||||||||||||||
| Platform-only assets | 14,341 | 13,978 | 13,142 | 13,271 | 13,905 | |||||||||||||||||||||||||||
| Total assets | $1,303,237 | $1,303,694 | $1,325,728 | $1,207,944 | $1,206,180 | |||||||||||||||||||||||||||
(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 fourth-quarter 2022 include $1.9 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 fourth-quarter 2022.
(D) In addition to the assets presented, SEI also administers an additional $12.5 billion of average assets in Funds of Funds assets during fourth-quarter 2022 on which SEI does not earn an administration fee.
9