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Form 8-K

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

January 31, 2008

Date of report (Date of earliest event reported)

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 No.)

(I.R.S. Employer

Identification No.)

1 Freedom Valley Drive

Oaks, Pennsylvania 19456

(Address of principal executive offices) (Zip Code)

(610) 676-1000

(Registrants’ telephone number, including area code)

Not applicable

(Former name or former address, if changed since last report)

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))

Item 2.02.

Results of Operations and Financial Condition.

On Thursday, January 31, 2008, SEI Investments Company issued a press release announcing its financial and operating results for the fourth quarter ended December 31, 2007. A copy of the press release is furnished as Exhibit 99.1 and incorporated in this Item 2.02 by reference.

As provided in General Instruction B.2 to Form 8-K, the information furnished in this Item 2.02 and in 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.

(d)

Exhibits.


99.1		Press Release dated January 31, 2008 of SEI Investments Company.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


	SEI Investments Company

Date: February 1, 2008	By:	/s/ Dennis J. McGonigle
		Dennis J. McGonigle
		Chief Financial Officer

EXHIBIT INDEX


Exhibit Number		Description
99.1		Press Release dated January 31, 2008 of SEI Investments Company.

Press Release

Exhibit 99.1

NEWS FROM SEI

For Immediate Release


Contact:	Mark Samuels, SVP	Murray Louis, VP	Dana Grosser, Corp PR
Voice:	610.676.2024	610.676.1932	610.676.2459
E-mail	msamuels@seic.com	mlouis@seic.com	dgrosser@seic.com
Pages:	Eight

SEI Reports 2007 Results

Revenues Up 16%, Net Income Up 10%

OAKS, Pa., January 31, 2008 — SEI Investments Company (NASDAQ:SEIC) today announced financial results for 2007, reporting increases in revenues, net income and earnings per share compared to 2006. Net income during the fourth-quarter was negatively affected by a $25.1 million non-cash charge (approximately $.08 per share) related to previously-disclosed support agreements covering holdings of structured investment products by SEI-sponsored money market funds.

Consolidated Overview


	For the Three Months Ended December 31,						For the Twelve Months Ended December 31,
(In thousands, except earnings per share)	2007		2006		%		2007		2006		%
Revenues	$	353,409	$	315,514	12	%	$	1,369,028	$	1,175,749	16	%
Net Income Before Taxes		84,792		98,054	(14	)%		409,540		358,756	14	%
Net Income		53,632		63,624	(16	)%		259,809		236,990	10	%
Diluted Earnings Per Share	$	.27	$	.31	(13	)%	$	1.28	$	1.17	9	%

“We continue to be satisfied with the progress we are making, even in the face of difficulties created by the capital and credit markets,” said Alfred P. West, Jr., SEI Chairman and CEO.

“During the fourth-quarter, SEI realized increased contributions from all of our core businesses, saw continued success in the first installation of our Global Wealth Platform, and made good progress on our other key investments. In the long run, we remain firm in our belief that what we are doing will provide our clients with increased opportunities for success and allow us to grow our future revenues and profits more rapidly.”

Summary of Fourth-Quarter and Year to Date Results by Business Segment


	For the Three Month Period Ended December 31,								For the Twelve Month Period Ended December 31,
(In thousands)	2007			2006			%		2007			2006			%
Private Banks:
Revenues	$	111,814		$	94,273		19	%	$	413,922		$	367,449		13	%
Expenses		89,255			74,423		20	%		330,923			279,089		19	%

Operating Profit	$	22,559		$	19,850		14	%	$	82,999		$	88,360		(6	)%
Operating Margin		20	%		21	%				20	%		24	%
Investment Advisors:
Revenues		66,564			60,070		11	%		259,288			225,716		15	%
Expenses		33,392			29,162		15	%		124,942			111,907		12	%

Operating Profit		33,172			30,908		7	%		134,346			113,809		18	%
Operating Margin		50	%		51	%				52	%		50	%
Institutional Investors:
Revenues		52,778			45,796		15	%		199,593			164,962		21	%
Expenses		32,031			28,563		12	%		121,365			106,377		14	%

Operating Profit		20,747			17,233		20	%		78,228			58,585		34	%
Operating Margin		39	%		38	%				39	%		36	%
Investment Managers:
Revenues		38,244			32,826		17	%		143,375			118,964		21	%
Expenses		26,752			23,641		13	%		101,401			90,799		12	%

Operating Profit		11,492			9,185		25	%		41,974			28,165		49	%
Operating Margin		30	%		28	%				29	%		24	%
Investments in New Businesses:
Revenues		1,858			2,191		(15	)%		7,205			7,537		(4	)%
Expenses		5,073			6,048		(16	)%		19,670			22,891		(14	)%

Operating Loss		(3,215	)		(3,857	)	17	%		(12,465	)		(15,354	)	19	%
Operating Margin		n/a			n/a					n/a			n/a
LSV
Revenues		82,151			80,358		2	%		345,645			291,121		19	%
Expenses (1)		51,515			48,959		5	%		213,926			178,727		20	%

Operating profit		30,636			31,399		(2	)%		131,719			112,394		17	%
Operating Margin		37	%		39	%				38	%		39	%
Consolidated Segment Totals:
Revenues	$	353,409		$	315,514		12	%	$	1,369,028		$	1,175,749		16	%
Expenses		238,018			210,796		13	%		912,227			789,790		16	%

Operating Profit	$	115,391		$	104,718		10	%	$	456,801		$	385,959		18	%
Operating Margin		33	%		33	%				33	%		33	%

(1)	Includes $42,387 and $42,862 for the three month period ended December 31, 2007 and 2006, respectively, and $181,591 and $153,381 for the twelve month period ended December 31, 2007 and 2006, respectively, of minority interest to the other partners of LSV.

A reconciliation of the totals reported for the business segments to the applicable line items in the Consolidated Statements of Income for the three and twelve month periods ended December 31, 2007 and 2006 are as follows:


	Three months ended December 31,						Twelve months ended December 31,
	2007			2006			2007			2006
Total operating profit from business segments	$	115,391		$	104,718		$	456,801		$	385,959
Corporate overhead expenses		(11,586	)		(10,221	)		(42,045	)		(38,842	)
Minority interest reflected in segments		43,859			44,051			186,500			158,615
LSV Employee Group Expenses (1)		(1,821	)		(1,864	)		(7,281	)		(7,281	)

Income from operations	$	145,843		$	136,684		$	593,975		$	498,451

(1)

Includes $1,806 for the three month period ending December 31, 2007 and 2006, and $7,222 for the twelve month period ending December 31, 2007 and 2006 of amortization expense related to intangible assets owned by LSV Employees Group LLC. The amortization is offset through Minority interest since SEI does not have any ownership in LSV Employee Group LLC.

Fourth-Quarter Business Commentary:

•

All four core business segments (Private Banks, Investment Advisors, Institutional Investors and Investment Managers) reported double-digit percentage revenue gains versus fourth-quarter, 2006.

•

The Private Banks, Institutional Investors and Investment Managers segments all reported double-digit percentage gains in operating profit versus fourth-quarter, 2006 levels.

•

The Global Wealth Platform was placed into service during the third-quarter, 2007. Fourth-quarter expenses reflect an increase of approximately $3.4 million for amortization versus fourth-quarter, 2006 levels. The amortization is primarily recognized in the Private Banks and Investment Advisors segments.

•

The company’s percentage ownership in LSV remained at approximately 43 percent. In the fourth-quarter, 2007, the company recognized $30.6 million as its portion of the earnings from LSV versus $31.4 million in the fourth-quarter, 2006.

•

Assets under management declined by $4.9 billion during fourth-quarter, 2007 to $196.8 billion, due to market depreciation.

•

In the fourth-quarter 2007, SEI purchased 706,000 shares of its common stock for $21.2 million. Stock repurchases totaled 7.2 million shares for approximately $205 million for the 2007 calendar year.

•

The fourth-quarter results include a $25.1 million non-cash charge related to money market funds support agreements. Additional information about the capital support agreements is contained in SEI’s third-quarter, 2007 Form 10-Q filed November 9, 2007.

Earnings Conference Call

A conference call to review earnings is scheduled for 2:00 PM ET on January 31, 2008. Investors may listen to the call at www.seic.com, or listen at www.earnings.com, a service of Thomson Streetevents. The call may also be accessed at numerous financial services web sites including AOL and Yahoo. Investors may also listen to replays at these web sites, or by telephone at (USA) 1-800-475-6701; (International) 320-365-3844, access code 889135.

About SEI

SEI (NASDAQ:SEIC) is a leading global provider of outsourced asset management, investment processing and investment operations solutions. The company’s innovative solutions help corporations, financial institutions, financial advisors, and affluent families create and manage wealth. As of December 31, 2007, through its subsidiaries and partnerships in which the company has a significant interest, SEI administers $426 billion in mutual fund and pooled assets and manages $197 billion in assets. SEI serves clients, conducts or is registered to conduct business and/or operations from more than 20 offices in over a dozen countries. For more information, visit www.seic.com.

Many of our responses may be considered “forward looking statements” and include discussions about future operations, strategies and financial results. Forward-looking statements are based upon estimates and assumptions that involve risks and uncertainties, many of which are beyond our control or are subject to change. Although we believe our assumptions are reasonable, they could be inaccurate. Our actual future revenues and income could differ materially from our expected results. We have no obligation to publicly update or revise any forward-looking statements.

SEI INVESTMENTS COMPANY

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share data)

(Unaudited)


	Three Months Ended December 31,
	2007			2006
Asset management, admin. and distribution fees	$	278,086		$	249,810
Information processing and software servicing fees		62,170			53,693
Transaction–based and trade execution fees		13,153			12,011

Total revenues		353,409			315,514

Commissions and fees		46,666			39,937
Compensation, benefits and other personnel		88,857			84,128
Consulting, outsourcing and professional fees		27,443			20,827
Data processing and computer related		10,785			10,319
Facilities, supplies and other costs		22,546			16,321
Depreciation and amortization		11,269			7,298

Total expenses		207,566			178,830

Income from operations		145,843			136,684

Minority interest		(41,440	)		(41,104	)
Net loss on investments (1)		(23,880	)		(512	)
Interest and dividend income		5,282			4,372
Interest expense		(1,013	)		(1,386	)

Income before taxes		84,792			98,054

Income taxes		31,160			34,430

Net income	$	53,632		$	63,624

Diluted earnings per common share	$	.27		$	.31

Shares used to calculate diluted earnings per common share		200,297			204,660

Basic earnings per common share	$	.28		$	.32

Shares used to calculate basic earnings per common share		194,321			197,808

Dividends declared per common share	$	.07		$	.06

(1)	Includes $25,122 non-cash charge related to money market funds support agreements.

SEI INVESTMENTS COMPANY

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share data)


	Twelve Months Ended December 31,
	2007			2006
	(Unaudited)
Asset management, admin. and distribution fees	$	1,091,424		$	918,142
Information processing and software servicing fees		230,301			213,066
Transaction–based and trade execution fees		47,303			44,541

Total revenues		1,369,028			1,175,749

Commissions and fees		176,523			147,835
Compensation, benefits and other personnel		350,150			315,502
Consulting, outsourcing and professional fees		94,642			77,753
Data processing and computer related		42,189			37,755
Facilities, supplies and other costs		74,413			69,306
Depreciation and amortization		37,136			29,147

Total expenses		775,053			677,298

Income from operations		593,975			498,451

Minority interest		(175,879	)		(146,962	)
Net loss on investments (1)		(25,395	)		(2,378	)
Interest and dividend income		18,596			13,521
Interest expense		(4,709	)		(5,464	)
Other income		2,952			1,588

Income before taxes		409,540			358,756

Income taxes		149,731			121,766

Net income	$	259,809		$	236,990

Diluted earnings per common share	$	1.28		$	1.17

Shares used to calculate diluted earnings per common share		202,231			203,266

Basic earnings per common share	$	1.32		$	1.20

Shares used to calculate basic earnings per common share		196,120			197,364

Dividends declared per common share	$	.14		$	.12

(1)	Includes $25,122 non-cash charge related to money market funds support agreements.

SEI INVESTMENTS COMPANY

CONDENSED BALANCE SHEETS

(In thousands)


	(Unaudited)
	December 31, 2007		December 31, 2006
Assets

Cash and short-term investments	$	360,921	$	286,948
Restricted cash		10,250		10,250
Receivables		275,109		244,599
Securities owned		16,777		16,431
Other current assets		31,877		28,245

Total current assets		694,934		586,473

Property and equipment, net		143,516		130,732
Investments available for sale		77,169		71,690
Capitalized software, net		231,684		180,014
Goodwill		22,842		22,842
Intangible assets		60,177		67,836
Other assets, net		22,043		20,118

Total assets	$	1,252,365	$	1,079,705


Liabilities

Current liabilities (1)	$	230,367	$	196,127
Long-term debt		43,971		67,538
Deferred income taxes		73,600		76,148
Long term liabilities		11,895		—
Minority interest		136,149		109,380

Shareholders’ Equity		756,383		630,512

Total liabilities and shareholders’ equity	$	1,252,365	$	1,079,705

(1)	Includes $25,122 accrual related to money market funds support agreements.

SEI INVESTMENTS COMPANY

ASSET BALANCES

(In millions)

(Unaudited)


	Dec. 31, 2006		Mar. 31, 2007		Jun. 30, 2007		Sep. 30, 2007		Dec. 31, 2007
Private Banks:
Equity/Fixed Income prgms.	$	16,806	$	18,196	$	20,666	$	21,816	$	21,160
Collective Trust Fund prgm.		1,251		1,148		1,078		1,056		1,007
Liquidity funds		8,513		8,241		8,224		8,836		8,886

Total assets under mgmt.	$	26,570	$	27,585	$	29,968	$	31,708	$	31,053

Client assets under admin.		14,738		14,864		15,019		15,655		14,235

Total assets	$	41,308	$	42,449	$	44,987	$	47,363	$	45,288

Investment Advisors:
Equity/Fixed Income prgms.	$	34,096	$	35,225	$	36,923	$	37,751	$	36,378
Collective Trust Fund prgm.		2,480		2,491		2,334		2,325		2,295
Liquidity funds		1,421		1,404		1,400		1,619		2,079

Total assets under mgmt.	$	37,997	$	39,120	$	40,657	$	41,695	$	40,752

Institutional Investors:
Equity/Fixed Income prgms.	$	37,720	$	39,504	$	40,771	$	43,504	$	44,833
Collective Trust Fund prgm.		1,081		1,078		895		907		897
Liquidity funds		3,371		5,072		4,128		4,342		3,629

Total assets under mgmt.	$	42,172	$	45,654	$	45,794	$	48,753	$	49,359

Investment Managers:
Equity/Fixed Income prgms.	$	30	$	29	$	32	$	24	$	24
Collective Trust Fund prgm.		8,675		8,300		7,990		6,814		6,651
Liquidity funds		215		178		271		360		325

Total assets under mgmt.	$	8,920	$	8,507	$	8,293	$	7,198	$	7,000

Client assets under admin.		170,344		180,745		192,931		205,251		215,124

Total assets	$	179,264	$	189,252	$	201,224	$	212,449	$	222,124

Investments in New Businesses:
Equity/Fixed Income prgms.	$	805	$	843	$	887	$	907	$	929
Liquidity funds		53		43		43		40		74

Total assets under mgmt.	$	858	$	886	$	930	$	947	$	1,003

LSV Asset Management
Equity/Fixed Income prgms.	$	64,970	$	68,225	$	73,100	$	71,349	$	67,599

Consolidated:
Equity/Fixed Income prgms (A)	$	154,427	$	162,022	$	172,379	$	175,351	$	170,923
Collective Trust Fund prgm.		13,487		13,017		12,297		11,102		10,850
Liquidity funds		13,573		14,938		14,066		15,197		14,993

Total assets under mgmt.	$	181,487	$	189,977	$	198,742	$	201,650	$	196,766

Client assets under admin. (B)		185,082		195,609		207,950		220,906		229,359

Total assets	$	366,569	$	385,586	$	406,692	$	422,556	$	426,125

(A)	Equity/Fixed Income programs include $3,717 of assets invested in SEI’s Asset Allocation Funds at December 31, 2007.

(B)	In addition to the numbers presented, SEI also administers an additional $6,326 in Funds of Funds assets (as of December 31, 2007) on which SEI does not earn an administration fee.