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 25, 2023, SEI Investments Company (the "Company") issued a press release announcing its financial and operating results for the third quarter ended September 30, 2023. 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 25, 2023 | By: | /s/ Dennis J. McGonigle | ||||||||
| Dennis J. McGonigle Chief Financial Officer | |||||||||||
Investor Contact: Media Contact:
Alex Whitelam Leslie Wojcik
SEI SEI
+1 610-676-4924 +1 610-676-4191
awhitelam@seic.com lwojcik@seic.com
Pages: 9
FOR IMMEDIATE RELEASE
SEI Reports Third-Quarter 2023 Financial Results
OAKS, Pa., Oct. 25, 2023 – SEI Investments Company (NASDAQ:SEIC) today announced financial results for the third-quarter 2023. Diluted earnings per share were $0.87 in third-quarter 2023 compared to $0.45 in third-quarter 2022. Third-quarter 2022 results included one-time costs of the voluntary separation program of $57.0 million resulting in $0.32 diluted earnings per share.
| Consolidated Overview | ||||||||||||||||||||||||||||||||||||||
| (In thousands, except earnings per share) | For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||
| 2023 | 2022 | % | 2023 | 2022 | % | |||||||||||||||||||||||||||||||||
| Revenues | $476,759 | $471,334 | 1% | $1,434,935 | $1,534,447 | (6)% | ||||||||||||||||||||||||||||||||
| Net income | 115,661 | 61,659 | 88% | 341,527 | 363,243 | (6)% | ||||||||||||||||||||||||||||||||
| Diluted earnings per share | $0.87 | $0.45 | 93% | $2.54 | $2.63 | (3)% | ||||||||||||||||||||||||||||||||
“Our third-quarter financial results reflect continued positive sales activity in our operational and processing businesses and strong profitability due to solid revenue and sound expense management, particularly in our technology and investment processing businesses. We remain focused on executing our strategic growth initiatives and diligently managing expenses across the organization,” said CEO Ryan Hicke.
“Despite persisting challenges in the broader market environment, we continue to prudently invest in our talent and solutions to provide our clients an unmatched set of capabilities. Our market activity remains strong, and we are well-positioned to capitalize on the opportunities ahead. We will continue to deliver operational excellence, expand our reach across markets globally, and maintain our strong financial position to deliver long-term growth for our stakeholders.”
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, | ||||||||||||||||||||||||||||||||||||
| 2023 | 2022 | % | 2023 | 2022 | % | |||||||||||||||||||||||||||||||||
| Private Banks: | ||||||||||||||||||||||||||||||||||||||
| Revenues | $121,469 | $122,660 | (1)% | $378,171 | $460,392 | (18)% | ||||||||||||||||||||||||||||||||
| Expenses | 113,105 | 116,661 | (3)% | 343,442 | 359,676 | (5)% | ||||||||||||||||||||||||||||||||
| Operating Profit | 8,364 | 5,999 | 39% | 34,729 | 100,716 | (66)% | ||||||||||||||||||||||||||||||||
| Operating Margin | 7 | % | 5 | % | 9 | % | 22 | % | ||||||||||||||||||||||||||||||
| Investment Advisors: | ||||||||||||||||||||||||||||||||||||||
| Revenues | 110,461 | 109,565 | 1% | 326,579 | 341,989 | (5)% | ||||||||||||||||||||||||||||||||
| Expenses | 64,280 | 61,150 | 5% | 192,004 | 189,045 | 2% | ||||||||||||||||||||||||||||||||
| Operating Profit | 46,181 | 48,415 | (5)% | 134,575 | 152,944 | (12)% | ||||||||||||||||||||||||||||||||
| Operating Margin | 42 | % | 44 | % | 41 | % | 45 | % | ||||||||||||||||||||||||||||||
| Institutional Investors: | ||||||||||||||||||||||||||||||||||||||
| Revenues | 70,479 | 78,260 | (10)% | 219,914 | 248,582 | (12)% | ||||||||||||||||||||||||||||||||
| Expenses | 39,953 | 42,149 | (5)% | 126,337 | 131,432 | (4)% | ||||||||||||||||||||||||||||||||
| Operating Profit | 30,526 | 36,111 | (15)% | 93,577 | 117,150 | (20)% | ||||||||||||||||||||||||||||||||
| Operating Margin | 43 | % | 46 | % | 43 | % | 47 | % | ||||||||||||||||||||||||||||||
| Investment Managers: | ||||||||||||||||||||||||||||||||||||||
| Revenues | 169,293 | 156,015 | 9% | 495,318 | 468,842 | 6% | ||||||||||||||||||||||||||||||||
| Expenses | 108,078 | 100,876 | 7% | 321,705 | 300,520 | 7% | ||||||||||||||||||||||||||||||||
| Operating Profit | 61,215 | 55,139 | 11% | 173,613 | 168,322 | 3% | ||||||||||||||||||||||||||||||||
| Operating Margin | 36 | % | 35 | % | 35 | % | 36 | % | ||||||||||||||||||||||||||||||
| Investments in New Businesses: | ||||||||||||||||||||||||||||||||||||||
| Revenues | 5,057 | 4,834 | 5% | 14,953 | 14,642 | 2% | ||||||||||||||||||||||||||||||||
| Expenses | 11,874 | 9,915 | 20% | 34,089 | 34,709 | (2)% | ||||||||||||||||||||||||||||||||
| Operating Loss | (6,817) | (5,081) | NM | (19,136) | (20,067) | NM | ||||||||||||||||||||||||||||||||
| Totals: | ||||||||||||||||||||||||||||||||||||||
| Revenues | $476,759 | $471,334 | 1% | $1,434,935 | $1,534,447 | (6)% | ||||||||||||||||||||||||||||||||
| Expenses | 337,290 | 330,751 | 2% | 1,017,577 | 1,015,382 | —% | ||||||||||||||||||||||||||||||||
| Corporate Overhead Expenses | 30,997 | 89,537 | (65)% | 94,518 | 137,360 | (31)% | ||||||||||||||||||||||||||||||||
| Income from Operations | $108,472 | $51,046 | 112% | $322,840 | $381,705 | (15)% | ||||||||||||||||||||||||||||||||
2
Third-Quarter Business Highlights:
•Revenues from Assets under management, administration, and distribution fees increased primarily from higher assets under management and administration due to increases from existing alternative investment clients of the Investment Managers segment due to new products and additional services. Market appreciation and positive cash flows into separately managed account programs and Strategist programs during 2023 also contributed to the increase in revenues.
•The increase in revenues from Assets under management, administration, and distribution fees was partially offset by negative cash flows from SEI fund programs due to client losses in the Investment Advisors and Institutional Investors segments.
•Average assets under management in equity and fixed income programs, excluding LSV, increased $3.9 billion, or 2%, to $170.3 billion during the third-quarter 2023, as compared to $166.4 billion during the third-quarter 2022 (see attached Average Asset Balances schedule for further details).
•Average assets under administration increased $107.1 billion, or 14%, to $893.7 billion during the third-quarter 2023, as compared to $786.6 billion during the third-quarter 2022 (see attached Average Asset Balances schedules for further details).
•Net sales events in the Private Banks and Investment Managers segments during third-quarter 2023 were $22.3 million and are expected to generate net annualized recurring revenues of approximately $19.0 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 2023 were negative $7.6 million.
•Operational expenses declined primarily from the total cost of the voluntary separation program of $57.0 million recognized during 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.
•The decline in operational expenses was also due to decreased non-capitalized consulting costs. This decline was partially offset by higher personnel costs from business growth, competitive labor markets, and the impact of inflation on wages and services. Increased personnel costs and investments in compliance infrastructure to meet new regulatory requirements also partially offset the decline in operational expenses.
•Earnings from LSV increased to $29.9 million in the third-quarter 2023 as compared to $26.7 million in the third-quarter 2022 due to increased performance fees and market appreciation. Net negative cash flows from existing clients and client losses partially offset the increase in earnings from LSV.
•Capitalized software development costs were $8.5 million in third-quarter 2023, of which $4.3 million was for continued enhancements to the SEI Wealth PlatformSM. Amortization expense related to SWP was $6.5 million in third-quarter 2023. Capitalized software development costs also include $4.2 million in third-quarter 2023 for a new platform for the Investment Managers segment.
•Effective tax rates were 22.5% in third-quarter 2023 and 23.0% in third-quarter 2022.
•Repurchased shares of SEI common stock were 1.4 million for $86.0 million during the third-quarter 2023 at an average price of $61.43 per share.
•Cash flow from operations was $163.5 million and free cash flow was $148.3 million during the third-quarter 2023.
3
Earnings Conference Call
A conference call to review earnings is scheduled for 4:30 p.m. Eastern time on Oct. 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: 9991019.
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 help drive growth, make confident decisions, and protect futures. As of Sept. 30, 2023, 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 nature of our sales activity and profitability in our technology, operational and processing businesses;
•the initiatives on which we will focus;
•our ability to manage our expenses;
•where we will invest;
•our ability to capitalize on opportunities;
•when and if we will generate net annualized recurring revenues from sales events that occurred during the quarter, as well as the amount of such revenue;
•the duration of our customer relationships; and
•the degree to which we will deliver long-term growth for our stakeholders.
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 elements of our strategic focus, including, without limitation, our focus on:
◦strategic clients;
◦managing expenses;
◦enhancing our development pipeline;
◦proactively engaging with current clients;
◦expanding our sales pipeline;
◦connecting resources across the enterprise to identify and execute against cross-selling opportunities;
◦growing our profits;
◦prudently deploying capital;
◦investing in talent and market experience;
◦alternative investments;
◦inorganic growth; and
◦delivering at a high level for clients;
•advancing our efforts to build out custody capabilities for alternatives;
•the trends in our clients' businesses;
•our ability to sell our newly-launched US Fund Complex on a standalone basis and the timing for including it in our models offered to advisors;
•offering models which include alternative asset classes;
•whether our enhanced asset management solutions will attract more advisors;
•the headwinds our businesses face and our ability to respond to these headwinds;
•the success of our efforts to assess the market offerings and the best path forward to enhance our growth;
•our sales momentum;
•our ability to capitalize on our pipeline, prudently manage expenses, and drive profit to the bottom line;
•the degree to which our market units are positioned to accelerate growth;
•the value of our technology, investment processing and asset management capabilities to our clients;
•the timing of the closing, if any, of our acquisitions;
•the amount, if any, of our current backlog of sold but expected to be installed revenue in the next 18 months that will actually be installed during such period, if ever;
•the amount, if any, of our current backlog that will convert by the end of the year, if ever;
•the degree to which our newer investment offerings will benefit our business;
•the market dynamics affecting our market units;
•the degree to which our tax rate may vary;
•our ability to improve profitability without cannibalizing our medium to long-term growth agendas;
•the growth of our U.K., European, and Irish businesses;
•the organic and inorganic opportunities that will drive our growth; and
•the expected 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
4
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, 2022, 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, | |||||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
| Asset management, admin. and distribution fees | $380,594 | $372,133 | $1,131,244 | $1,148,824 | ||||||||||||||||||||||
| Information processing and software servicing fees | 96,165 | 99,201 | 303,691 | 385,623 | ||||||||||||||||||||||
| Total revenues | 476,759 | 471,334 | 1,434,935 | 1,534,447 | ||||||||||||||||||||||
| Subadvisory, distribution and other asset mgmt. costs | 47,531 | 47,334 | 142,157 | 150,485 | ||||||||||||||||||||||
| Software royalties and other information processing costs | 8,095 | 6,909 | 23,784 | 21,863 | ||||||||||||||||||||||
| Compensation, benefits and other personnel | 180,470 | 227,127 | 529,591 | 545,532 | ||||||||||||||||||||||
| Stock-based compensation | 7,979 | 10,766 | 23,458 | 31,339 | ||||||||||||||||||||||
| Consulting, outsourcing and professional fees | 54,203 | 58,558 | 176,619 | 184,320 | ||||||||||||||||||||||
| Data processing and computer related | 34,016 | 30,950 | 102,301 | 93,020 | ||||||||||||||||||||||
| Facilities, supplies and other costs | 16,999 | 19,704 | 58,825 | 57,464 | ||||||||||||||||||||||
| Amortization | 9,797 | 10,382 | 28,851 | 43,777 | ||||||||||||||||||||||
| Depreciation | 9,197 | 8,558 | 26,509 | 24,942 | ||||||||||||||||||||||
| Total expenses | 368,287 | 420,288 | 1,112,095 | 1,152,742 | ||||||||||||||||||||||
| Income from operations | 108,472 | 51,046 | 322,840 | 381,705 | ||||||||||||||||||||||
| Net (loss) gain from investments | (206) | (1,406) | 1,053 | (4,515) | ||||||||||||||||||||||
| Interest and dividend income | 11,125 | 3,962 | 29,453 | 6,663 | ||||||||||||||||||||||
| Interest expense | (116) | (143) | (396) | (604) | ||||||||||||||||||||||
| Equity in earnings of unconsolidated affiliate | 29,927 | 26,654 | 91,517 | 88,926 | ||||||||||||||||||||||
| Income before income taxes | 149,202 | 80,113 | 444,467 | 472,175 | ||||||||||||||||||||||
| Income taxes | 33,541 | 18,454 | 102,940 | 108,932 | ||||||||||||||||||||||
| Net income | $115,661 | $61,659 | $341,527 | $363,243 | ||||||||||||||||||||||
| Basic earnings per common share | $0.87 | $0.46 | $2.57 | $2.66 | ||||||||||||||||||||||
| Shares used to calculate basic earnings per share | 132,231 | 135,203 | 133,035 | 136,524 | ||||||||||||||||||||||
| Diluted earnings per common share | $0.87 | $0.45 | $2.54 | $2.63 | ||||||||||||||||||||||
| Shares used to calculate diluted earnings per share | 133,504 | 136,345 | 134,250 | 137,958 | ||||||||||||||||||||||
| Dividends declared per common share | $— | $— | $0.43 | $0.40 | ||||||||||||||||||||||
6
SEI INVESTMENTS COMPANY
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
| September 30, | December 31, | |||||||||||||
| 2023 | 2022 | |||||||||||||
| Assets | ||||||||||||||
| Current Assets: | ||||||||||||||
| Cash and cash equivalents | $854,443 | $853,008 | ||||||||||||
| Restricted cash | 301 | 351 | ||||||||||||
| Receivables from investment products | 55,687 | 62,014 | ||||||||||||
Receivables, net of allowance for doubtful accounts of $1,184 and $901 | 518,854 | 457,084 | ||||||||||||
| Securities owned | 32,748 | 32,148 | ||||||||||||
| Other current assets | 57,357 | 48,703 | ||||||||||||
| Total Current Assets | 1,519,390 | 1,453,308 | ||||||||||||
Property and Equipment, net of accumulated depreciation of $465,297 and $440,861 | 177,521 | 181,029 | ||||||||||||
| Operating Lease Right-of-Use Assets | 20,686 | 24,992 | ||||||||||||
Capitalized Software, net of accumulated amortization of $606,214 and $586,744 | 244,416 | 237,302 | ||||||||||||
| Available for Sale and Equity Securities | 119,562 | 128,201 | ||||||||||||
| Investments in Affiliated Funds, at fair value | 6,838 | 6,366 | ||||||||||||
| Investment in Unconsolidated Affiliate | 44,645 | 104,673 | ||||||||||||
| Goodwill | 115,597 | 115,599 | ||||||||||||
Intangible Assets, net of accumulated amortization of $39,432 and $30,261 | 46,413 | 55,532 | ||||||||||||
| Deferred Contract Costs | 38,518 | 37,928 | ||||||||||||
| Deferred Income Taxes | 26,449 | 4,936 | ||||||||||||
| Other Assets, net | 37,201 | 33,687 | ||||||||||||
| Total Assets | $2,397,236 | $2,383,553 | ||||||||||||
| Liabilities and Equity | ||||||||||||||
| Current Liabilities: | ||||||||||||||
| Accounts payable | $10,198 | $13,283 | ||||||||||||
| Accrued liabilities | 249,872 | 359,363 | ||||||||||||
| Current portion of long-term operating lease liabilities | 9,882 | 10,344 | ||||||||||||
| Deferred revenue | 12,100 | 14,893 | ||||||||||||
| Total Current Liabilities | 282,052 | 397,883 | ||||||||||||
| Long-term Income Taxes Payable | 803 | 803 | ||||||||||||
| Long-term Operating Lease Liabilities | 15,138 | 18,786 | ||||||||||||
| Other Long-term Liabilities | 15,362 | 12,257 | ||||||||||||
| Total Liabilities | 313,355 | 429,729 | ||||||||||||
| Shareholders' Equity: | ||||||||||||||
Common stock, $0.01 par value, 750,000 shares authorized; 131,571 and 134,162 shares issued and outstanding | 1,316 | 1,342 | ||||||||||||
| Capital in excess of par value | 1,369,465 | 1,307,162 | ||||||||||||
| Retained earnings | 763,635 | 694,287 | ||||||||||||
| Accumulated other comprehensive loss, net | (50,535) | (48,967) | ||||||||||||
| Total Shareholders' Equity | 2,083,881 | 1,953,824 | ||||||||||||
| Total Liabilities and Shareholders' Equity | $2,397,236 | $2,383,553 | ||||||||||||
7
ENDING ASSET BALANCES
(In millions) (Unaudited)
| Sept. 30, | Dec. 31, | Mar. 31, | Jun. 30, | Sept. 30, | ||||||||||||||||||||||||||||
| 2022 | 2022 | 2023 | 2023 | 2023 | ||||||||||||||||||||||||||||
| Private Banks: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs | $20,131 | $22,377 | $23,653 | $24,091 | $23,039 | |||||||||||||||||||||||||||
| Collective trust fund programs | 7 | 7 | 6 | 7 | 6 | |||||||||||||||||||||||||||
| Liquidity funds | 3,778 | 3,201 | 3,427 | 3,433 | 3,636 | |||||||||||||||||||||||||||
| Total assets under management | $23,916 | $25,585 | $27,086 | $27,531 | $26,681 | |||||||||||||||||||||||||||
| Client assets under administration | 4,161 | 4,151 | 4,299 | 4,154 | 4,399 | |||||||||||||||||||||||||||
| Total assets | $28,077 | $29,736 | $31,385 | $31,685 | $31,080 | |||||||||||||||||||||||||||
| Investment Advisors: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs | $62,579 | $66,240 | $68,065 | $69,439 | $66,911 | |||||||||||||||||||||||||||
| Liquidity funds | 5,200 | 5,436 | 4,965 | 4,968 | 5,175 | |||||||||||||||||||||||||||
| Total Platform assets under management | $67,779 | $71,676 | $73,030 | $74,407 | $72,086 | |||||||||||||||||||||||||||
| Platform-only assets | 12,609 | 13,931 | 14,980 | 16,103 | 16,232 | |||||||||||||||||||||||||||
| Total Platform assets | $80,388 | $85,607 | $88,010 | $90,510 | $88,318 | |||||||||||||||||||||||||||
| Institutional Investors: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs | $69,621 | $73,178 | $74,939 | $75,854 | $72,387 | |||||||||||||||||||||||||||
| Collective trust fund programs | 6 | 5 | 4 | 4 | 4 | |||||||||||||||||||||||||||
| Liquidity funds | 1,640 | 1,557 | 1,576 | 1,353 | 2,119 | |||||||||||||||||||||||||||
| Total assets under management | $71,267 | $74,740 | $76,519 | $77,211 | $74,510 | |||||||||||||||||||||||||||
| Client assets under advisement | 4,204 | 4,314 | 4,559 | 4,368 | 4,085 | |||||||||||||||||||||||||||
| Total assets | $75,471 | $79,054 | $81,078 | $81,579 | $78,595 | |||||||||||||||||||||||||||
| Investment Managers: | ||||||||||||||||||||||||||||||||
| Collective trust fund programs (A) | $137,538 | $141,285 | $146,176 | $149,779 | $146,991 | |||||||||||||||||||||||||||
| Liquidity funds | 248 | 199 | 203 | 249 | 180 | |||||||||||||||||||||||||||
| Total assets under management | $137,786 | $141,484 | $146,379 | $150,028 | $147,171 | |||||||||||||||||||||||||||
| Client assets under administration | 781,246 | 810,491 | 845,828 | 873,570 | 886,382 | |||||||||||||||||||||||||||
| Total assets | $919,032 | $951,975 | $992,207 | $1,023,598 | $1,033,553 | |||||||||||||||||||||||||||
| Investments in New Businesses: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs | $1,813 | $1,912 | $2,031 | $2,104 | $2,017 | |||||||||||||||||||||||||||
| Liquidity funds | 221 | 215 | 217 | 217 | 202 | |||||||||||||||||||||||||||
| Total assets under management | $2,034 | $2,127 | $2,248 | $2,321 | $2,219 | |||||||||||||||||||||||||||
| Client assets under administration | 1,026 | 1,077 | 1,081 | 1,098 | 1,070 | |||||||||||||||||||||||||||
| Total assets | $3,060 | $3,204 | $3,329 | $3,419 | $3,289 | |||||||||||||||||||||||||||
| LSV Asset Management: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs (B) | $75,380 | $83,753 | $84,964 | $86,469 | $83,684 | |||||||||||||||||||||||||||
| Total: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs (C) | $229,524 | $247,460 | $253,652 | $257,957 | $248,038 | |||||||||||||||||||||||||||
| Collective trust fund programs | 137,551 | 141,297 | 146,186 | 149,790 | 147,001 | |||||||||||||||||||||||||||
| Liquidity funds | 11,087 | 10,608 | 10,388 | 10,220 | 11,312 | |||||||||||||||||||||||||||
| Total assets under management | $378,162 | $399,365 | $410,226 | $417,967 | $406,351 | |||||||||||||||||||||||||||
| Client assets under advisement | 5,230 | 5,391 | 5,640 | 5,466 | 5,155 | |||||||||||||||||||||||||||
| Client assets under administration (D) | 785,407 | 814,642 | 850,127 | 877,724 | 890,781 | |||||||||||||||||||||||||||
| Platform-only assets | 12,609 | 13,931 | 14,980 | 16,103 | 16,232 | |||||||||||||||||||||||||||
| Total assets | $1,181,408 | $1,233,329 | $1,280,973 | $1,317,260 | $1,318,519 | |||||||||||||||||||||||||||
(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 $1.8 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, 2023).
(C)Equity and fixed-income programs include $5.9 billion of assets invested in various asset allocation funds (as of September 30, 2023).
(D) In addition to the assets presented, SEI also administers an additional $11.4 billion in Funds of Funds assets on which SEI does not earn an administration fee (as of September 30, 2023).
8
AVERAGE ASSET BALANCES
(In millions) (Unaudited)
| 3rd Qtr. | 4th Qtr. | 1st Qtr. | 2nd Qtr. | 3rd Qtr. | ||||||||||||||||||||||||||||
| 2022 | 2022 | 2023 | 2023 | 2023 | ||||||||||||||||||||||||||||
| Private Banks: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs | $22,115 | $21,839 | $23,576 | $23,748 | $23,920 | |||||||||||||||||||||||||||
| Collective trust fund programs | 7 | 7 | 7 | 7 | 6 | |||||||||||||||||||||||||||
| Liquidity funds | 3,742 | 3,395 | 3,253 | 3,500 | 3,585 | |||||||||||||||||||||||||||
| Total assets under management | $25,864 | $25,241 | $26,836 | $27,255 | $27,511 | |||||||||||||||||||||||||||
| Client assets under administration | 4,026 | 4,126 | 4,316 | 4,282 | 4,221 | |||||||||||||||||||||||||||
| Total assets | $29,890 | $29,367 | $31,152 | $31,537 | $31,732 | |||||||||||||||||||||||||||
| Investment Advisors: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs | $67,464 | $66,100 | $67,578 | $68,371 | $69,309 | |||||||||||||||||||||||||||
| Liquidity funds | 5,380 | 5,127 | 4,995 | 4,808 | 4,990 | |||||||||||||||||||||||||||
| Total Platform assets under management | $72,844 | $71,227 | $72,573 | $73,179 | $74,299 | |||||||||||||||||||||||||||
| Platform-only assets | 13,271 | 13,905 | 14,812 | 15,548 | 16,544 | |||||||||||||||||||||||||||
| Total Platform assets | $86,115 | $85,132 | $87,385 | $88,727 | $90,843 | |||||||||||||||||||||||||||
| Institutional Investors: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs | $74,859 | $72,581 | $74,653 | $74,865 | $75,023 | |||||||||||||||||||||||||||
| Collective trust fund programs | 6 | 5 | 5 | 4 | 4 | |||||||||||||||||||||||||||
| Liquidity funds | 1,717 | 1,719 | 1,715 | 1,537 | 1,611 | |||||||||||||||||||||||||||
| Total assets under management | $76,582 | $74,305 | $76,373 | $76,406 | $76,638 | |||||||||||||||||||||||||||
| Client assets under advisement | 4,194 | 4,251 | 4,431 | 4,583 | 4,294 | |||||||||||||||||||||||||||
| Total assets | $80,776 | $78,556 | $80,804 | $80,989 | $80,932 | |||||||||||||||||||||||||||
| Investment Managers: | ||||||||||||||||||||||||||||||||
| Collective trust fund programs (A) | $143,817 | $140,494 | $144,914 | $147,543 | $150,379 | |||||||||||||||||||||||||||
| Liquidity funds | 250 | 275 | 317 | 286 | 237 | |||||||||||||||||||||||||||
| Total assets under management | $144,067 | $140,769 | $145,231 | $147,829 | $150,616 | |||||||||||||||||||||||||||
| Client assets under administration | 782,559 | 785,813 | 836,410 | 859,296 | 889,503 | |||||||||||||||||||||||||||
| Total assets | $926,626 | $926,582 | $981,641 | $1,007,125 | $1,040,119 | |||||||||||||||||||||||||||
| Investments in New Businesses: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs | $1,939 | $1,890 | $1,991 | $2,057 | $2,096 | |||||||||||||||||||||||||||
| Liquidity funds | 231 | 208 | 212 | 199 | 211 | |||||||||||||||||||||||||||
| Total assets under management | $2,170 | $2,098 | $2,203 | $2,256 | $2,307 | |||||||||||||||||||||||||||
| Client assets under advisement | 1,126 | 1,075 | 1,098 | 1,075 | 1,101 | |||||||||||||||||||||||||||
| Total assets | $3,296 | $3,173 | $3,301 | $3,331 | $3,408 | |||||||||||||||||||||||||||
| LSV Asset Management: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs (B) | $81,241 | $83,370 | $86,987 | $84,492 | $86,671 | |||||||||||||||||||||||||||
| Total: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs (C) | $247,618 | $245,780 | $254,785 | $253,533 | $257,019 | |||||||||||||||||||||||||||
| Collective trust fund programs | 143,830 | 140,506 | 144,926 | 147,554 | 150,389 | |||||||||||||||||||||||||||
| Liquidity funds | 11,320 | 10,724 | 10,492 | 10,330 | 10,634 | |||||||||||||||||||||||||||
| Total assets under management | $402,768 | $397,010 | $410,203 | $411,417 | $418,042 | |||||||||||||||||||||||||||
| Client assets under advisement | 5,320 | 5,326 | 5,529 | 5,658 | 5,395 | |||||||||||||||||||||||||||
| Client assets under administration (D) | 786,585 | 789,939 | 840,726 | 863,578 | 893,724 | |||||||||||||||||||||||||||
| Platform-only assets | 13,271 | 13,905 | 14,812 | 15,548 | 16,544 | |||||||||||||||||||||||||||
| Total assets | $1,207,944 | $1,206,180 | $1,271,270 | $1,296,201 | $1,333,705 | |||||||||||||||||||||||||||
(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 2023 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 $6.1 billion of average assets invested in various asset allocation funds during third-quarter 2023.
(D) In addition to the assets presented, SEI also administers an additional $11.6 billion of average assets in Funds of Funds assets during third-quarter 2023 on which SEI does not earn an administration fee.
9