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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 29, 2009

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 29, 2009, SEI Investments Company issued a press release announcing its financial and operating results for the fourth quarter ended December 31, 2008. 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 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 29, 2009 of SEI Investments Company related to the Company’s financial and operating results for the fourth quarter ended December 31, 2008.

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: January 29, 2009	By:	/s/ Dennis J. McGonigle
		Dennis J. McGonigle
		Chief Financial Officer

EXHIBIT INDEX


Exhibit Number		Description
99.1		Press Release dated January 29, 2009 of SEI Investments Company related to the Company’s financial and operating results for the fourth quarter ended December 31, 2008.

Press Release

Exhibit 99.1

NEWS FROM SEI

For Immediate Release


Contact:	Larry Wexler, Corp Comm	Murray Louis, VP	Dana Grosser, Corp PR
Voice:	610.676.1440	610.676.1932	610.676.2459
E-mail	lwexler@seic.com	mlouis@seic.com	dgrosser@seic.com
Pages:	Nine

SEI Reports Fourth-Quarter Revenues of $268.4 million, Net Income of $9.6 million

Net income negatively affected by $64.3 million in SIV-related charges

OAKS, Pa., January 29, 2009 — SEI Investments Company (NASDAQ:SEIC) today announced financial results for fourth-quarter 2008, reporting decreases in revenues, net income and earnings per share compared to fourth-quarter 2007. Net income during the fourth-quarter 2008 was negatively affected by a $64.3 million pre-tax charge (approximately $.20 per share post-tax) for previously-disclosed structured investment vehicle-related issues involving SEI-sponsored money market funds. The total SIV-related loss recognized during 2008 is $158.2 million and the total cumulative loss recognized is $183.3 million.


Consolidated Overview (In thousands, except earnings per share)	For the Three Months Ended December 31,						For the Twelve Months Ended December 31,
	2008		2007		%		2008		2007		%
Revenues	$	268,402	$	353,409	(24	)%	$	1,247,919	$	1,369,028	(9	)%
Net Income Before Taxes		19,477		84,792	(77	)%		224,974		409,540	(45	)%
Net Income		9,649		53,632	(82	)%		139,254		259,809	(46	)%
Diluted Earnings Per Share	$	.05	$	.27	(81	)%	$	.71	$	1.28	(45	)%

“The severe downturn in the capital markets made the fourth-quarter a particularly challenging one and had a significant negative impact on both our quarterly and annual results,” said Alfred P. West, Jr., SEI Chairman and CEO.

“Furthermore, the current market and economic environment promises to make 2009 challenging as well. In light of this, our current focus is on maintaining a strong capital base and balance sheet. Fortunately, we continue to produce positive cash flow which permits us to stay the course in the implementation of our strategies.

“During these times, we will work hard to improve our business and its results and to focus on our clients’ well-being. We are firm in our belief that what we are doing will provide our clients with opportunities for success and position us to prosper as times get better.”

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)	2008			2007			%		2008			2007			%
Private Banks:
Revenues	$	97,962		$	111,814		(12	)%	$	408,500		$	413,922		(1	)%
Expenses		75,582			89,255		(15	)%		326,661			330,923		(1	)%

Operating Profit	$	22,380		$	22,559		(1	)%	$	81,839		$	82,999		(1	)%
Operating Margin		23	%		20	%				20	%		20	%

Investment Advisors:
Revenues		41,951			66,564		(37	)%		223,164			259,288		(14	)%
Expenses		28,529			33,392		(15	)%		122,231			124,942		(2	)%

Operating Profit		13,422			33,172		(60	)%		100,933			134,346		(25	)%
Operating Margin		32	%		50	%				45	%		52	%

Institutional Investors:
Revenues		43,408			52,778		(18	)%		198,154			199,593		(1	)%
Expenses		22,873			32,031		(29	)%		112,866			121,365		(7	)%

Operating Profit		20,535			20,747		(1	)%		85,288			78,228		9	%
Operating Margin		47	%		39	%				43	%		39	%

Investment Managers:
Revenues		35,966			38,244		(6	)%		147,968			143,375		3	%
Expenses		23,536			26,752		(12	)%		101,078			101,401		—

Operating Profit		12,430			11,492		8	%		46,890			41,974		12	%
Operating Margin		35	%		30	%				32	%		29	%

Investments in New Businesses:
Revenues		1,356			1,858		(27	)%		6,865			7,205		(5	)%
Expenses		2,973			5,073		(41	)%		15,795			19,670		(20	)%

Operating Loss		(1,617	)		(3,215	)	(50	)%		(8,930	)		(12,465	)	(28	)%
Operating Margin		n/a			n/a					n/a			n/a

LSV:
Revenues		47,759			82,151		(42	)%		263,268			345,645		(24	)%
Expenses (1)		30,833			51,515		(40	)%		164,783			213,926		(23	)%

Operating Profit		16,926			30,636		(45	)%		98,485			131,719		(25	)%
Operating Margin		35	%		37	%				37	%		38	%

Consolidated Segment Totals:
Revenues	$	268,402		$	353,409		(24	)%	$	1,247,919		$	1,369,028		(9	)%
Expenses		184,326			238,018		(23	)%		843,414			912,227		(8	)%

Operating Profit	$	84,076		$	115,391		(27	)%	$	404,505		$	456,801		(11	)%
Operating Margin		31	%		33	%				32	%		33	%

(1)	Includes $23,200 and $42,387 for the three-month period ended December 31, 2008 and 2007, respectively, and $135,251 and $181,591 for the twelve-month period ended December 31, 2008 and 2007, 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, 2008 and 2007 is as follows:


	Three Months Ended December 31,						Twelve Months Ended December 31,
	2008			2007			2008			2007
Total operating profit from business segments	$	84,076		$	115,391		$	404,505		$	456,801

Corporate overhead expenses		(8,079	)		(11,586	)		(38,955	)		(42,045	)
Minority interest reflected in segments		23,518			43,859			138,079			186,500
LSV Employee Group Expenses (1)		(1,820	)		(1,821	)		(7,280	)		(7,281	)

Income from operations	$	97,695		$	145,843		$	496,349		$	593,975

(1)

Includes $1,806 for the three-month period ending December 31, 2008 and 2007, and $7,222 for the twelve-month period ended December 31, 2008 and 2007 of amortization expense related to intangible assets owned by LSV Employee 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:

•

Revenues were down across all segments due to the severe decline in the capital markets. The Institutional Investors and Investment Managers segments partially offset the negative capital market impact with new business growth.

•

Operating results were positively affected by reduced compensation costs in all segments except LSV. Other income represents a one-time benefit related to interest expense previously recorded.

•

The company’s percentage ownership in LSV remained at approximately 43 percent. In the fourth-quarter 2008, the company recognized $16.9 million as its portion of the earnings from LSV versus $30.6 million in the fourth-quarter 2007.

•

Assets under management declined by $27.5 billion during the fourth-quarter 2008 to $134.3 billion, primarily due to market depreciation.

•

The fourth-quarter 2008 results include a $61.6 million non-cash charge related to money market funds support agreements and a $2.7 million charge related to the decline in fair value for SIV securities purchased from an SEI-sponsored money market fund. SEI has recognized losses of $158.2 million during 2008 and cumulative losses of $183.3 million associated with SIV- related issues involving SEI-sponsored money market funds. Additional information about the capital support agreements, including the total principal amount as of December 31, 2008, is attached to this release and is also contained in SEI’s 2007 Form 10-K filed February 26, 2008 and SEI’s 2008 third-quarter Form 10-Q filed November 10, 2008, and SEI’s current report on Form 8-K filed December 2, 2008.

Fourth-Quarter Business Commentary: (continued)

•

In the fourth-quarter 2008, SEI’s effective tax rate was about 50 percent. The effective tax rate was affected by a higher than usual state tax rate of about 14 percent due to the uncertainty of the future use of the SIV losses for Pennsylvania state tax purposes because of net operating loss carryforward limitations.

•

In the fourth-quarter, SEI purchased 1,110,000 shares of its common stock for $16.6 million.

Earnings Conference Call

A conference call to review earnings is scheduled for 2:00 PM ET on January 29, 2009. Investors may listen to the call at www.seic.com (Investor Information section), 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 983434.

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, 2008, through its subsidiaries and partnerships in which the company has a significant interest, SEI administers $380 billion in mutual fund and pooled assets and manages $134 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 the statements in this release 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,
	2008			2007
Asset management, admin. and distribution fees	$	191,247		$	278,086
Information processing and software servicing fees		56,003			62,170
Transaction–based and trade execution fees		21,152			13,153

Total revenues		268,402			353,409

Commissions and fees		41,296			46,666
Compensation, benefits and other personnel		61,517			88,857
Consulting, outsourcing and professional fees		24,208			27,443
Data processing and computer related		11,500			10,785
Facilities, supplies and other costs		19,920			22,546
Depreciation and amortization		12,266			11,269

Total expenses		170,707			207,566

Income from operations		97,695			145,843

Minority interest		(21,419	)		(41,440	)
Net loss on investments (1) (2)		(64,631	)		(23,880	)
Interest and dividend income		2,995			5,282
Interest expense		(740	)		(1,013	)
Other income		5,577			—

Income before taxes		19,477			84,792

Income taxes		9,828			31,160

Net income	$	9,649		$	53,632

Diluted earnings per common share	$	.05		$	.27

Shares used to calculate diluted earnings per common share		192,030			200,297

Basic earnings per common share	$	.05		$	.28

Shares used to calculate basic earnings per common share		190,858			194,321

(1)	Includes $61,559 and $25,122 for the three month period ended December 31, 2008 of a non-cash charge related to money market funds support agreements.

(2)	Includes $2,733 for the three month period ended December 31, 2008 of a loss related to the purchase of structured investment vehicles from a SEI-sponsored money market fund.

SEI INVESTMENTS COMPANY

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share data)

(Unaudited)


	Twelve Months Ended December 31,
	2008			2007
Asset management, admin. and distribution fees	$	955,399		$	1,091,424
Information processing and software servicing fees		229,807			230,301
Transaction–based and trade execution fees		62,713			47,303

Total revenues		1,247,919			1,369,028

Commissions and fees		171,972			176,523
Compensation, benefits and other personnel		309,870			350,150
Consulting, outsourcing and professional fees		103,789			94,642
Data processing and computer related		44,602			42,189
Facilities, supplies and other costs		74,378			74,413
Depreciation and amortization		46,959			37,136

Total expenses		751,570			775,053

Income from operations		496,349			593,975

Minority interest		(129,256	)		(175,879	)
Net loss on investments (1) (2)		(158,018	)		(25,395	)
Interest and dividend income		13,740			18,596
Interest expense		(3,418	)		(4,709	)
Other income		5,577			2,952

Income before taxes		224,974			409,540

Income taxes		85,720			149,731

Net income	$	139,254		$	259,809

Diluted earnings per common share	$	.71		$	1.28

Shares used to calculate diluted earnings per common share		195,233			202,231

Basic earnings per common share	$	.73		$	1.32

Shares used to calculate basic earnings per common share		192,057			196,120

(1)	Includes $148,861 for the twelve month period ended December 31, 2008 of a non-cash charge related to money market funds support agreements.

(2)	Includes $9,321 for the twelve month period ended December 31, 2008 of a loss related to the purchase of structured investment vehicles from a SEI-sponsored money market fund.

SEI INVESTMENTS COMPANY

CONDENSED BALANCE SHEETS

(In thousands)


	(Unaudited) December 31, 2008		December 31, 2007
Assets

Cash and short-term investments	$	416,643	$	360,921
Restricted cash		14,000		10,250
Receivables		208,209		275,109
Securities owned		—		16,777
Other current assets		100,819		31,877

Total current assets		739,671		694,934

Property and equipment, net		148,124		143,516
Marketable securities		86,693		77,169
Capitalized software, net		270,606		231,684
Goodwill		22,842		22,842
Intangible assets, net		52,518		60,177
Other assets, net		21,261		22,043

Total assets	$	1,341,715	$	1,252,365


Liabilities

Current liabilities (1)	$	329,894	$	230,367
Long-term debt		24,332		43,971
Deferred income taxes		104,548		73,600
Long term liabilities		4,067		11,895
Minority interest		112,870		136,149

Shareholders’ Equity		766,004		756,383

Total liabilities and shareholders’ equity	$	1,341,715	$	1,252,365

(1)	Includes $173,983 and $25,122 at December 31, 2008 and December 31, 2007, respectively, of an accrual related to money market funds support agreements.

SEI INVESTMENTS COMPANY

ASSET BALANCES

(In millions)

(Unaudited)


	Dec. 31, 2007		Mar. 31, 2008		Jun. 30, 2008		Sep. 30, 2008		Dec. 31, 2008
Private Banks:
Equity/Fixed Income prgms.	$	21,160	$	18,904	$	18,163	$	14,436	$	10,573
Collective Trust Fund prgm.		1,007		1,008		955		1,028		1,145
Liquidity funds		8,886		9,198		8,345		9,253		9,194

Total assets under mgmt.	$	31,053	$	29,110	$	27,463	$	24,717	$	20,912

Client assets under admin.		14,235		13,897		13,242		12,301		10,622

Total assets	$	45,288	$	43,007	$	40,705	$	37,018	$	31,534

Investment Advisors:
Equity/Fixed Income prgms.	$	36,378	$	32,736	$	31,938	$	27,817	$	21,631
Collective Trust Fund prgm.		2,295		2,310		2,259		2,471		2,606
Liquidity funds		2,079		2,461		2,410		2,859		3,436

Total assets under mgmt.	$	40,752	$	37,507	$	36,607	$	33,147	$	27,673

Institutional Investors:
Equity/Fixed Income prgms.	$	44,833	$	43,134	$	43,608	$	39,775	$	34,966
Collective Trust Fund prgm.		897		924		947		1,001		942
Liquidity funds		3,629		4,077		3,950		3,930		4,582

Total assets under mgmt.	$	49,359	$	48,135	$	48,505	$	44,706	$	40,490

Investment Managers:
Equity/Fixed Income prgms.	$	24	$	20	$	19	$	10	$	8
Collective Trust Fund prgm.		6,651		6,571		6,572		6,453		5,974
Liquidity funds		325		571		438		699		869

Total assets under mgmt.	$	7,000	$	7,162	$	7,029	$	7,162	$	6,851

Client assets under admin. (C)		215,124		225,005		228,722		256,553		234,628

Total assets	$	222,124	$	232,167	$	235,751	$	263,715	$	241,479

Investments in New Businesses:
Equity/Fixed Income prgms.	$	929	$	869	$	838	$	704	$	519
Liquidity funds		74		77		98		115		153

Total assets under mgmt.	$	1,003	$	946	$	936	$	819	$	672

LSV Asset Management
Equity/Fixed Income prgms.	$	67,599	$	61,765	$	57,692	$	51,296	$	37,714

Consolidated:
Equity/Fixed Income prgms (A)	$	170,923	$	157,428	$	152,258	$	134,038	$	105,411
Collective Trust Fund prgm.		10,850		10,813		10,733		10,953		10,667
Liquidity funds		14,993		16,384		15,241		16,856		18,234

Total assets under mgmt.	$	196,766	$	184,625	$	178,232	$	161,847	$	134,312

Client assets under admin. (B)		229,359		238,902		241,964		268,854		245,250

Total assets	$	426,125	$	423,527	$	420,196	$	430,701	$	379,562

(A)	Equity/Fixed Income programs include $2,377 of assets invested in various asset allocation funds at December 31, 2008.

(B)	In addition to the numbers presented, SEI also administers an additional $7,424 in Funds of Funds assets (as of December 31, 2008) on which SEI does not earn an administration fee.

(C)	Client assets under administration in the Investment Managers segment include $78.6 billion of assets balances that require limited services and therefore are at fee levels below our normal service assets.

SEI Investments Company

Impact of Support Provided to Sponsored Money Market Funds

Fourth-Quarter 2008 and Cumulative as of December 31, 2008

(in thousands)


	Par Value of Securities		Support Amount		Required Collateral		Fourth Quarter 2008				Cumulative
	Par Value of Securities		Support Amount		Required Collateral		Gross Charge		After-Tax Charge		Gross Charge		After-Tax Charge
Securities currently held by funds:
Capital Support Agreement (1)	$	257,737	$	257,737	$	158,080	$	53,348	$	31,898	$	147,007	$	90,997
Capital Support Agreement (2)		68,109		30,000		30,000		8,211		4,857		26,976		16,698

Total of securities currently held by funds		325,846		287,737		188,080		61,559		36,775		173,983		107,695

Securities purchased from funds:
Gryphon (formerly Cheyne)		15,034		—		—		2,733		1,613		9,321		5,770

Total of all Securities	$	340,880	$	287,737	$	188,080	$	64,292	$	38,368	$	183,304	$	113,465

(1)	Pertains to the Amended and Restated Capital Support Agreement for the SEI Daily Income Trust Prime Obligation Fund

(2)	Pertains to the Amended and Restated Capital Support Agreement for the SEI Liquid Asset Trust Prime Obligation Fund