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seic-20240423

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

April 23, 2024

Date of report (Date of earliest event reported)

________________________________________

https://cdn.kscope.io/de5e4056550614482aa04cd6b37d7765-GIF_sei_logo_final_black.gif

________________________________________

SEI INVESTMENTS COMPANY

(Exact name of registrant as specified in its charter)

________________________________________

Pennsylvania

0-10200

23-1707341

(State or Other Jurisdiction

of Incorporation)

(Commission
File Number)

(I.R.S. Employer
Identification No.)

1 Freedom Valley Drive

Oaks, Pennsylvania 19456

(Address of Principal Executive Offices and Zip Code)

(610) 676-1000

(Registrant's 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

Common Stock, par value $0.01 per share

SEIC

The NASDAQ Stock Market LLC

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.

During the quarter ended March 31, 2024, the Company made a determination to reorganize, effective January 1, 2024, some of its business segments based on how its current Chief Operating Decision Maker (CODM) manages its businesses, including with respect to resource allocation and performance assessment. As a result, one of the Company's client relationships formerly reported in the Private Banks segment will be reported in the Investment Managers segment and the Company’s family office services business, formerly reported in the Investment Managers segment, will be reported in the Investments in New Businesses segment. The business segment financial presentation was reclassified in 2024 to conform to this reorganization.

The reclassified results are being provided in exhibits as:

•Reclassified Results by Business Segment due to Business Segment Restructuring Year Over Year Comparison

•Reclassified Results by Business Segment due to Business Segment Restructuring

•Reclassified Ending Asset Balances by Business Segment due to Business Segment Restructuring

•Reclassified Average Asset Balances by Business Segment due to Business Segment Restructuring

The reclassified results are being provided solely to provide information concerning what the effect of the reclassifications would have been on the fiscal year 2022 and the fiscal and quarterly periods of 2023 had the reclassifications occurred on January 1, 2022, which may be considered in connection with the issuance of quarterly financial results reflecting the reclassifications during 2024. These changes did not affect the Company’s audited financial statements for the fiscal years ended December 31, 2023 and 2022 or the historical results of operations, financial condition or liquidity of the Company.

Item 9.01. Financial Statements and Exhibits.


Exhibit No.						Description

99.1						Reclassified Results by Business Segment due to Business Segment Restructuring Year Over Year Comparison

99.2						Reclassified Results by Business Segment due to Business Segment Restructuring

99.3						Reclassified Ending Asset Balances by Business Segment due to Business Segment Restructuring

99.4						Reclassified Average Asset Balances by Business Segment due to Business Segment Restructuring

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:	April 23, 2024	By:	/s/ Dennis J. McGonigle
			Dennis J. McGonigle Chief Financial Officer

Document

Exhibit 99.1

Reclassified Results by Business Segment due to Business Segment Restructuring Year Over Year Comparison


(In thousands)	As Reported		Amount	Restated		As Reported		Amount	Restated
	2022		Reclassified	2022		2023		Reclassified	2023
Private Banks:
Revenues (A)	$575,625		($5,615)	$570,010		$503,317		($7,000)	$496,317
Expenses	473,209		($5,388)	467,821		455,820		($7,330)	448,490
Operating Profit	102,416		(227)	102,189		47,497		330	47,827
Operating Margin	18	%		18	%	9	%		10	%

Investment Advisors:
Revenues	447,766		—	447,766		436,298		—	436,298
Expenses	251,650		—	251,650		259,142		—	259,142
Operating Profit	196,116		—	196,116		177,156		—	177,156
Operating Margin	44	%		44	%	41	%		41	%

Institutional Investors:
Revenues	323,353		—	323,353		289,708		—	289,708
Expenses	172,252		—	172,252		165,455		—	165,455
Operating Profit	151,101		—	151,101		124,253		—	124,253
Operating Margin	47	%		47	%	43	%		43	%

Investment Managers:
Revenues	624,918		(25,257)	599,661		670,486		(25,232)	645,254
Expenses	404,850		(22,885)	381,965		437,174		(17,978)	419,196
Operating Profit	220,068		(2,372)	217,696		233,312		(7,254)	226,058
Operating Margin	35	%		36	%	35	%		35	%

Investments in New Businesses:
Revenues	19,375		30,872	50,247		19,984		32,232	52,216
Expenses	45,159		28,273	73,432		45,437		25,308	70,745
Operating Loss	(25,784)		2,599	(23,185)		(25,453)		6,924	(18,529)

Totals:
Revenues	$1,991,037		$—	$1,991,037		$1,919,793		$—	$1,919,793
Expenses	1,347,120		—	1,347,120		1,363,028		—	1,363,028
Corporate Overhead Expenses	168,164		—	168,164		132,241		—	132,241
Income from Operations	$475,753		$—	$475,753		$424,524		$—	$424,524

(A) The 2022 full year Private Banks revenues includes one time early termination fees of $88.0 million from a significant investment processing client.

Document

Exhibit 99.2

Reclassified Results by Business Segment due to Business Segment Restructuring


(In thousands)	Full Year		1st Qtr.		2nd Qtr.		3rd Qtr.		4th Qtr.		Full Year
	2022		2023		2023		2023		2023		2023
Private Banks:
Revenues (A)	$570,010		$120,902		$132,414		$119,664		$123,337		$496,317
Expenses	467,821		112,462		114,165		111,207		110,656		448,490
Operating Profit	102,189		8,440		18,249		8,457		12,681		47,827
Operating Margin	18	%	7	%	14	%	7	%	10	%	10	%

Investment Advisors:
Revenues	447,766		106,538		109,580		110,461		109,719		436,298
Expenses	251,650		63,546		64,178		64,280		67,138		259,142
Operating Profit	196,116		42,992		45,402		46,181		42,581		177,156
Operating Margin	44	%	40	%	41	%	42	%	39	%	41	%

Institutional Investors:
Revenues	323,353		74,290		75,145		70,479		69,794		289,708
Expenses	172,252		40,868		45,516		39,953		39,118		165,455
Operating Profit	151,101		33,422		29,629		30,526		30,676		124,253
Operating Margin	47	%	45	%	39	%	43	%	44	%	43	%

Investment Managers:
Revenues	599,661		154,497		159,204		162,982		168,571		645,254
Expenses	381,965		101,685		103,213		103,585		110,713		419,196
Operating Profit	217,696		52,812		55,991		59,397		57,858		226,058
Operating Margin	36	%	34	%	35	%	36	%	34	%	35	%

Investments in New Businesses:
Revenues	50,247		12,892		12,714		13,173		13,437		52,216
Expenses	73,432		17,639		17,015		18,265		17,826		70,745
Operating Loss	(23,185)		(4,747)		(4,301)		(5,092)		(4,389)		(18,529)

Totals:
Revenues	$1,991,037		$469,119		$489,057		$476,759		$484,858		$1,919,793
Expenses	1,347,120		336,200		344,087		337,290		345,451		1,363,028
Corporate Overhead Expenses	168,164		31,152		32,369		30,997		37,723		132,241
Income from Operations	$475,753		$101,767		$112,601		$108,472		$101,684		$424,524

(A) The 2022 full year Private Banks revenues includes one time early termination fees of $88.0 million from a significant investment processing client.

Document

Exhibit 99.3

Reclassified Ending Asset Balances due to Business Segment Restructuring


(In millions)	Dec. 31,	Mar. 31,	Jun. 30,	Sept. 30,	Dec. 31,
	2022	2023	2023	2023	2023
Private Banks:
Equity and fixed-income programs	$22,377	$23,653	$24,091	$23,039	$24,496
Collective trust fund programs	7	6	7	6	4
Liquidity funds	3,201	3,427	3,433	3,636	3,916
Total assets under management	$25,585	$27,086	$27,531	$26,681	$28,416
Client assets under administration	4,151	4,299	4,154	4,399	7,267
Total assets	$29,736	$31,385	$31,685	$31,080	$35,683

Investment Advisors:
Equity and fixed-income programs	$66,240	$68,065	$69,439	$66,911	$71,634
Liquidity funds	5,436	4,965	4,968	5,175	4,812
Total Platform assets under management	$71,676	$73,030	$74,407	$72,086	$76,446
Platform-only assets	13,931	14,980	16,103	16,232	18,324
Platform-only assets-deposit program	—	—	—	—	843
Total Platform assets	$85,607	$88,010	$90,510	$88,318	$95,613

Institutional Investors:
Equity and fixed-income programs	$73,178	$74,939	$75,854	$72,387	$77,208
Collective trust fund programs	5	4	4	4	1
Liquidity funds	1,557	1,576	1,353	2,119	1,734
Total assets under management	$74,740	$76,519	$77,211	$74,510	$78,943
Client assets under advisement	4,314	4,559	4,368	4,085	6,120
Total assets	$79,054	$81,078	$81,579	$78,595	$85,063

Investment Managers:
Collective trust fund programs (A)	$141,285	$146,176	$149,779	$146,991	$156,376
Liquidity funds	199	203	249	180	114
Total assets under management	$141,484	$146,379	$150,028	$147,171	$156,490
Client assets under administration (E)	794,149	829,352	857,801	871,385	920,757
Total assets	$935,633	$975,731	$1,007,829	$1,018,556	$1,077,247

Investments in New Businesses:
Equity and fixed-income programs	$1,912	$2,031	$2,104	$2,017	$2,174
Liquidity funds	215	217	217	202	209
Total assets under management	$2,127	$2,248	$2,321	$2,219	$2,383
Client assets under advisement	1,077	1,081	1,098	1,070	1,150
Client assets under administration (E)	16,342	16,476	15,769	14,997	14,807
Total assets	$19,546	$19,805	$19,188	$18,286	$18,340

LSV Asset Management:
Equity and fixed-income programs (B)	$83,753	$84,964	$86,469	$83,684	$89,312

Total:
Equity and fixed-income programs (C)	$247,460	$253,652	$257,957	$248,038	$264,824
Collective trust fund programs	141,297	146,186	149,790	147,001	156,381
Liquidity funds	10,608	10,388	10,220	11,312	10,785
Total assets under management	$399,365	$410,226	$417,967	$406,351	$431,990
Client assets under advisement	5,391	5,640	5,466	5,155	7,270
Client assets under administration (D)	814,642	850,127	877,724	890,781	942,831
Platform-only assets	13,931	14,980	16,103	16,232	19,167
Total assets	$1,233,329	$1,280,973	$1,317,260	$1,318,519	$1,401,258

(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 $1.9 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, 2023).

(C)Equity and fixed-income programs include $6.3 billion of assets invested in various asset allocation funds (as of December 31, 2023).

(D) In addition to the assets presented, SEI also administers an additional $11.2 billion in Funds of Funds assets on which SEI does not earn an administration fee (as of December 31, 2023).

(E) Due to the reorganization of business segments, client assets under administration were reclassified from Investment Managers to Investments in New Businesses.

Document

Exhibit 99.4

Reclassified Average Asset Balances due to Business Segment Restructuring


(In millions)	Full Year	1st Qtr.	2nd Qtr.	3rd Qtr.	4th Qtr.	Full Year
	2022	2023	2023	2023	2023	2023
Private Banks:
Equity and fixed-income programs	$23,326	$23,576	$23,748	$23,920	$23,309	$23,638
Collective trust fund programs	7	7	7	6	5	6
Liquidity funds	3,834	3,253	3,500	3,585	3,808	3,537
Total assets under management	$27,167	$26,836	$27,255	$27,511	$27,122	$27,181
Client assets under administration	4,204	4,316	4,282	4,221	7,083	4,976
Total assets	$31,371	$31,152	$31,537	$31,732	$34,205	$32,157

Investment Advisors:
Equity and fixed-income programs	$70,394	$67,578	$68,371	$69,309	$68,369	$68,407
Liquidity funds	5,682	4,995	4,808	4,990	5,046	4,960
Total Platform assets under management	$76,076	$72,573	$73,179	$74,299	$73,415	$73,367
Platform-only assets	13,574	14,812	15,548	16,544	17,201	16,026
Platform-only assets-deposit program	—	—	—	—	281	70
Total Platform assets	$89,650	$87,385	$88,727	$90,843	$90,897	$89,463

Institutional Investors:
Equity and fixed-income programs	$79,415	$74,653	$74,865	$75,023	$73,644	$74,546
Collective trust fund programs	5	5	4	4	3	4
Liquidity funds	1,939	1,715	1,537	1,611	1,682	1,636
Total assets under management	$81,359	$76,373	$76,406	$76,638	$75,329	$76,186
Client assets under advisement	4,330	4,431	4,583	4,294	4,607	4,479
Total assets	$85,689	$80,804	$80,989	$80,932	$79,936	$80,665

Investment Managers:
Collective trust fund programs (A)	$125,595	$144,914	$147,543	$150,379	$149,551	$148,097
Liquidity funds	311	317	286	237	205	261
Total assets under management	$125,906	$145,231	$147,829	$150,616	$149,756	$148,358
Client assets under administration (E)	821,256	820,014	843,065	873,821	901,487	859,596
Total assets	$947,162	$965,245	$990,894	$1,024,437	$1,051,243	$1,007,954

Investments in New Businesses:
Equity and fixed-income programs	$1,968	$1,991	$2,057	$2,096	$2,069	$2,053
Liquidity funds	247	212	199	211	197	205
Total assets under management	$2,215	$2,203	$2,256	$2,307	$2,266	$2,258
Client assets under advisement	1,191	1,098	1,075	1,101	1,080	1,089
Client assets under administration (E)	16,391	16,396	16,231	15,682	14,781	15,773
Total assets	$19,797	$19,697	$19,562	$19,090	$18,127	$19,120

LSV Asset Management:
Equity and fixed-income programs (B)	$87,220	$86,987	$84,492	$86,671	$84,492	$85,661

Total:
Equity and fixed-income programs (C)	$262,323	$254,785	$253,533	$257,019	$251,883	$254,305
Collective trust fund programs	125,607	144,926	147,554	150,389	149,559	148,107
Liquidity funds	12,013	10,492	10,330	10,634	10,938	10,599
Total assets under management	$399,943	$410,203	$411,417	$418,042	$412,380	$413,011
Client assets under advisement	5,521	5,529	5,658	5,395	5,687	5,568
Client assets under administration (D)	841,851	840,726	863,578	893,724	923,351	880,345
Platform-only assets	13,574	14,812	15,548	16,544	17,482	16,096
Total assets	$1,260,889	$1,271,270	$1,296,201	$1,333,705	$1,358,900	$1,315,020

(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 2023 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 $6.1 billion of average assets invested in various asset allocation funds during fourth-quarter 2023.

(D) In addition to the assets presented, SEI also administers an additional $11.3 billion of average assets in Funds of Funds assets during fourth-quarter 2023 on which SEI does not earn an administration fee.

(E) Due to the reorganization of business segments, client assets under administration were reclassified from Investment Managers to Investments in New Businesses.