SEIC 8-K
Sei Investments Co (SEIC)
8-K
2023-04-20
For: 2023-04-20
View Original
Added on
April 04, 2026
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 Thursday, April 20, 2023, SEI Investments Company (the "Company") issued a press release announcing its financial and operating results for the first quarter ended March 31, 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: | April 20, 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
Pages: 8
FOR IMMEDIATE RELEASE
SEI Reports First-Quarter 2023 Financial Results
OAKS, Pa., April 20, 2023 – SEI Investments Company (NASDAQ:SEIC) today announced financial results for the first-quarter 2023. Diluted earnings per share were $0.79 in first-quarter 2023 compared to $1.36 in first-quarter 2022. First-quarter 2022 results included a one-time positive $88.0 million revenue event resulting in $0.47 diluted earnings per share net of associated costs.
| Consolidated Overview | ||||||||||||||
| (In thousands, except earnings per share) | For the Three Months Ended March 31, | |||||||||||||
| 2023 | 2022 | |||||||||||||
| Revenues | $469,119 | $581,443 | ||||||||||||
| Net income | 107,015 | 190,308 | ||||||||||||
| Diluted earnings per share | $0.79 | $1.36 | ||||||||||||
“Our first-quarter results reflect strong sales across most of our business lines, especially in technology and investment processing. Revenues and profits were slightly impacted by cash flows in our asset management businesses. We have a clear strategic focus on driving growth and will be very diligent about managing expenses across the company,” said CEO Ryan Hicke.
“We are encouraged by overall sales results, as well as the size and makeup of our pipelines, reflecting changes we have made over the last year. We will thoughtfully align our capital to opportunities for growth and deliver the solutions our markets value. I believe SEI’s future is ripe with opportunity, and we will be aggressive in executing our long-term growth strategy.”
1
Summary of First-Quarter Results by Business Segment
| (In thousands) | For the Three Months Ended March 31, | |||||||||||||||||||
| 2023 | 2022 | % | ||||||||||||||||||
| Private Banks: | ||||||||||||||||||||
| Revenues | $122,603 | $213,548 | (43)% | |||||||||||||||||
| Expenses | 114,276 | 121,955 | (6)% | |||||||||||||||||
| Operating Profit | 8,327 | 91,593 | (91)% | |||||||||||||||||
| Operating Margin | 7 | % | 43 | % | ||||||||||||||||
| Investment Advisors: | ||||||||||||||||||||
| Revenues | 106,538 | 119,230 | (11)% | |||||||||||||||||
| Expenses | 63,546 | 64,520 | (2)% | |||||||||||||||||
| Operating Profit | 42,992 | 54,710 | (21)% | |||||||||||||||||
| Operating Margin | 40 | % | 46 | % | ||||||||||||||||
| Institutional Investors: | ||||||||||||||||||||
| Revenues | 74,290 | 86,839 | (14)% | |||||||||||||||||
| Expenses | 40,868 | 45,358 | (10)% | |||||||||||||||||
| Operating Profit | 33,422 | 41,481 | (19)% | |||||||||||||||||
| Operating Margin | 45 | % | 48 | % | ||||||||||||||||
| Investment Managers: | ||||||||||||||||||||
| Revenues | 160,686 | 156,901 | 2% | |||||||||||||||||
| Expenses | 105,866 | 98,837 | 7% | |||||||||||||||||
| Operating Profit | 54,820 | 58,064 | (6)% | |||||||||||||||||
| Operating Margin | 34 | % | 37 | % | ||||||||||||||||
| Investments in New Businesses: | ||||||||||||||||||||
| Revenues | 5,002 | 4,925 | 2% | |||||||||||||||||
| Expenses | 11,644 | 11,950 | (3)% | |||||||||||||||||
| Operating Loss | (6,642) | (7,025) | NM | |||||||||||||||||
| Totals: | ||||||||||||||||||||
| Revenues | $469,119 | $581,443 | (19)% | |||||||||||||||||
| Expenses | 336,200 | 342,620 | (2)% | |||||||||||||||||
| Corporate Overhead Expenses | 31,152 | 24,024 | 30% | |||||||||||||||||
| Income from Operations | $101,767 | $214,799 | (53)% | |||||||||||||||||
2
First-Quarter Business Highlights:
•Revenues from Information processing and software servicing fees decreased primarily from a one-time early termination fee of $88.0 million from an uninstalled investment processing client recorded during first-quarter 2022 in the Private Banks segment.
•Revenues from Assets under management, administration, and distribution fees decreased primarily from lower assets under management in equity and fixed income programs from market depreciation during 2022 and negative cash flows from SEI fund programs due to client losses in the Investment Advisors and Institutional Investors segments. The improvement in market conditions and positive cash flows into separately managed account programs and Strategist programs during the first quarter 2023 partially offset the decline in revenues.
•Average assets under management in equity and fixed income programs, excluding LSV, decreased $26.7 billion, or 14%, to $167.8 billion in the first-quarter 2023, as compared to $194.5 billion during the first-quarter 2022 (see attached Average Asset Balances schedule for further details).
•Revenue from Asset management, administration and distribution fees increased from existing alternative investment clients of the Investment Managers segment due to new products and additional services. The decrease in average assets under administration reflect a loss of a significant client in 2022 which was not charged asset-based fees.
•Net sales events in the Private Banks and Investment Managers segments during first-quarter 2023 were $21.2 million and are expected to generate net annualized recurring revenues of approximately $17.1 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 first-quarter 2023 were $1.0 million.
•Net sales events in newer initiatives during first-quarter 2023 were $1.0 million.
•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 $28.9 million in the first-quarter 2023 as compared to $32.5 million in the first-quarter 2022 due to net negative cash flows from existing clients, client losses and market depreciation.
•We capitalized $9.0 million of software development costs in first-quarter 2023, of which $4.7 million was for continued enhancements to SWP. We also capitalized $4.3 million of software development costs in first-quarter 2023 for a new platform for the Investment Managers segment.
•Amortization expense related to SWP was $6.2 million in first-quarter 2023 as compared to $12.1 million in first-quarter 2022. 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.
•Effective tax rates were 23.6% in first-quarter 2023 and 23.1% in first-quarter 2022.
•We repurchased 1.4 million shares of our common stock for $80.3 million during the first-quarter 2023 at an average price of $59.03 per share.
•Cash flow from operations was $114.4 million, or $0.85 per share, and free cash flow was $94.7 million during the first-quarter 2023.
3
Earnings Conference Call
A conference call to review earnings is scheduled for 4:30 p.m. Eastern time on April 20, 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: 8123608.
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 March 31, 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:
•our strategic focus;
•the opportunities for us;
•when and if we will generate net annualized recurring revenues from sales events that occurred during the quarter, and
•whether we will be able to:
•manage expenses across the company;
•align our capital to opportunities for growth and deliver the solutions our markets value; or
•execute against our long-term growth strategy.
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:
•our ability to manage through times of uncertainty;
•the degree to which market conditions and trends create growth opportunities for us;
•the direction in which we are moving;
•our sales momentum;
•the traction we will generate in the areas we have increased our market focus and attention;
•the degree to which we will assess and revise our alignment of capital to opportunity;
•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 growth opportunities in the RIA market of our Investment Advisors segment present for our technology, investment processing, and asset management capabilities;
•those circumstances that may challenge our revenue rate earned on managed assets;
•the movement of assets among SMA, ETFs, direct indexing and third-party branded products;
•whether the nature of our asset management offerings enables us to keep and capture assets supporting our long-term growth and health;
•the importance of alternative assets to our strategic agenda;
•the headwinds in the U.K. and U.S. for our Institutional Investors segment;
•the degree to which our Private Banks segment will be profitable;
•the need to increase penetration and growth in our asset management markets by capitalizing on the continued growth and demand from intermediaries and institutions;
•the degree to which the changes we have made in leadership give us a greater opportunity to maintain and drive success in the short and medium term, while also driving talent mobility in the organization to position us for the future;
•the drivers of sales momentum;
•our ability to create growth engines;
•our ability to manage expenses and increase EPS;
•whether we are laying the foundation from which we will deliver what the market values;
•our ability to maintain and grow the sales momentum and continue to ensure we are selling, installing, and refreshing our pipelines with the right types of clients;
•the organic and inorganic opportunities that will drive our growth;
•the expense levels in our Investments in New Businesses segment;
•the impact of LSV’s pipeline on our revenue; 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, 2022, filed with the Securities and Exchange Commission.
# # #
4
SEI INVESTMENTS COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
| For the Three Months Ended March 31, | ||||||||||||||
| 2023 | 2022 | |||||||||||||
| Asset management, admin. and distribution fees | $371,829 | $394,097 | ||||||||||||
| Information processing and software servicing fees | 97,290 | 187,346 | ||||||||||||
| Total revenues | 469,119 | 581,443 | ||||||||||||
| Subadvisory, distribution and other asset mgmt. costs | 47,379 | 53,128 | ||||||||||||
| Software royalties and other information processing costs | 7,293 | 7,547 | ||||||||||||
| Compensation, benefits and other personnel | 173,415 | 160,484 | ||||||||||||
| Stock-based compensation | 8,074 | 10,566 | ||||||||||||
| Consulting, outsourcing and professional fees | 61,104 | 62,491 | ||||||||||||
| Data processing and computer related | 33,340 | 29,816 | ||||||||||||
| Facilities, supplies and other costs | 18,792 | 17,627 | ||||||||||||
| Amortization | 9,424 | 16,887 | ||||||||||||
| Depreciation | 8,531 | 8,098 | ||||||||||||
| Total expenses | 367,352 | 366,644 | ||||||||||||
| Income from operations | 101,767 | 214,799 | ||||||||||||
| Net gain (loss) on investments | 744 | (489) | ||||||||||||
| Interest and dividend income | 8,778 | 848 | ||||||||||||
| Interest expense | (141) | (250) | ||||||||||||
| Equity in earnings of unconsolidated affiliate | 28,879 | 32,459 | ||||||||||||
| Income before income taxes | 140,027 | 247,367 | ||||||||||||
| Income taxes | 33,012 | 57,059 | ||||||||||||
| Net income | $107,015 | $190,308 | ||||||||||||
| Basic earnings per common share | $0.80 | $1.38 | ||||||||||||
| Shares used to calculate basic earnings per share | 134,020 | 137,935 | ||||||||||||
| Diluted earnings per common share | $0.79 | $1.36 | ||||||||||||
| Shares used to calculate diluted earnings per share | 135,311 | 139,712 | ||||||||||||
5
SEI INVESTMENTS COMPANY
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
| March 31, | December 31, | |||||||||||||
| 2023 | 2022 | |||||||||||||
| Assets | ||||||||||||||
| Current Assets: | ||||||||||||||
| Cash and cash equivalents | $834,355 | $853,008 | ||||||||||||
| Restricted cash | 352 | 351 | ||||||||||||
| Receivables from investment products | 55,744 | 62,014 | ||||||||||||
Receivables, net of allowance for doubtful accounts of $721 and $901 | 458,226 | 457,084 | ||||||||||||
| Securities owned | 31,779 | 32,148 | ||||||||||||
| Other current assets | 50,964 | 48,703 | ||||||||||||
| Total Current Assets | 1,431,420 | 1,453,308 | ||||||||||||
Property and Equipment, net of accumulated depreciation of $449,628 and $440,861 | 183,207 | 181,029 | ||||||||||||
| Operating Lease Right-of-Use Assets | 23,992 | 24,992 | ||||||||||||
Capitalized Software, net of accumulated amortization of $593,049 and $586,744 | 240,038 | 237,302 | ||||||||||||
| Available for Sale and Equity Securities | 124,269 | 128,201 | ||||||||||||
| Investments in Affiliated Funds, at fair value | 6,537 | 6,366 | ||||||||||||
| Investment in Unconsolidated Affiliate | 55,041 | 104,673 | ||||||||||||
| Goodwill | 115,602 | 115,599 | ||||||||||||
Intangible Assets, net of accumulated amortization of $33,226 and $30,261 | 52,567 | 55,532 | ||||||||||||
| Deferred Contract Costs | 37,505 | 37,928 | ||||||||||||
| Deferred Income Taxes | 9,993 | 4,936 | ||||||||||||
| Other Assets, net | 38,323 | 33,687 | ||||||||||||
| Total Assets | $2,318,494 | $2,383,553 | ||||||||||||
| Liabilities and Equity | ||||||||||||||
| Current Liabilities: | ||||||||||||||
| Accounts payable | $14,160 | $13,283 | ||||||||||||
| Accrued liabilities | 233,684 | 359,363 | ||||||||||||
| Current portion of long-term operating lease liabilities | 10,331 | 10,344 | ||||||||||||
| Deferred revenue | 14,330 | 14,893 | ||||||||||||
| Total Current Liabilities | 272,505 | 397,883 | ||||||||||||
| Long-term Income Taxes Payable | 803 | 803 | ||||||||||||
| Long-term Operating Lease Liabilities | 17,657 | 18,786 | ||||||||||||
| Other Long-term Liabilities | 13,195 | 12,257 | ||||||||||||
| Total Liabilities | 304,160 | 429,729 | ||||||||||||
| Shareholders' Equity: | ||||||||||||||
Common stock, $0.01 par value, 750,000 shares authorized; 133,268 and 134,162 shares issued and outstanding | 1,333 | 1,342 | ||||||||||||
| Capital in excess of par value | 1,327,591 | 1,307,162 | ||||||||||||
| Retained earnings | 729,988 | 694,287 | ||||||||||||
| Accumulated other comprehensive loss, net | (44,578) | (48,967) | ||||||||||||
| Total Shareholders' Equity | 2,014,334 | 1,953,824 | ||||||||||||
| Total Liabilities and Shareholders' Equity | $2,318,494 | $2,383,553 | ||||||||||||
6
ENDING ASSET BALANCES
(In millions) (Unaudited)
| Mar. 31, | Jun. 30, | Sept. 30, | Dec. 31, | Mar. 31, | ||||||||||||||||||||||||||||
| 2022 | 2022 | 2022 | 2022 | 2023 | ||||||||||||||||||||||||||||
| Private Banks: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs | $25,335 | $22,277 | $20,131 | $22,377 | $23,653 | |||||||||||||||||||||||||||
| Collective trust fund programs | 7 | 7 | 7 | 7 | 6 | |||||||||||||||||||||||||||
| Liquidity funds | 4,225 | 3,666 | 3,778 | 3,201 | 3,427 | |||||||||||||||||||||||||||
| Total assets under management | $29,567 | $25,950 | $23,916 | $25,585 | $27,086 | |||||||||||||||||||||||||||
| Client assets under administration | 4,449 | 3,923 | 4,161 | 4,151 | 4,299 | |||||||||||||||||||||||||||
| Total assets | $34,016 | $29,873 | $28,077 | $29,736 | $31,385 | |||||||||||||||||||||||||||
| Investment Advisors: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs | $77,614 | $65,783 | $62,579 | $66,240 | $68,065 | |||||||||||||||||||||||||||
| Liquidity funds | 4,610 | 8,292 | 5,200 | 5,436 | 4,965 | |||||||||||||||||||||||||||
| Total Platform assets under management | $82,224 | $74,075 | $67,779 | $71,676 | $73,030 | |||||||||||||||||||||||||||
| Platform-only assets | 14,151 | 12,642 | 12,609 | 13,931 | 14,980 | |||||||||||||||||||||||||||
| Total Platform assets | $96,375 | $86,717 | $80,388 | $85,607 | $88,010 | |||||||||||||||||||||||||||
| Institutional Investors: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs | $87,358 | $75,506 | $69,621 | $73,178 | $74,939 | |||||||||||||||||||||||||||
| Collective trust fund programs | 6 | 5 | 6 | 5 | 4 | |||||||||||||||||||||||||||
| Liquidity funds | 2,150 | 1,654 | 1,640 | 1,557 | 1,576 | |||||||||||||||||||||||||||
| Total assets under management | $89,514 | $77,165 | $71,267 | $74,740 | $76,519 | |||||||||||||||||||||||||||
| Client assets under advisement | 4,778 | 4,218 | 4,204 | 4,314 | 4,559 | |||||||||||||||||||||||||||
| Total assets | $94,292 | $81,383 | $75,471 | $79,054 | $81,078 | |||||||||||||||||||||||||||
| Investment Managers: | ||||||||||||||||||||||||||||||||
| Collective trust fund programs (A) | $85,411 | $142,035 | $137,538 | $141,285 | $146,176 | |||||||||||||||||||||||||||
| Liquidity funds | 284 | 271 | 248 | 199 | 203 | |||||||||||||||||||||||||||
| Total assets under management | $85,695 | $142,306 | $137,786 | $141,484 | $146,379 | |||||||||||||||||||||||||||
| Client assets under administration | 895,181 | 885,096 | 781,246 | 810,491 | 845,828 | |||||||||||||||||||||||||||
| Total assets | $980,876 | $1,027,402 | $919,032 | $951,975 | $992,207 | |||||||||||||||||||||||||||
| Investments in New Businesses: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs | $2,057 | $1,903 | $1,813 | $1,912 | $2,031 | |||||||||||||||||||||||||||
| Liquidity funds | 305 | 242 | 221 | 215 | 217 | |||||||||||||||||||||||||||
| Total assets under management | $2,362 | $2,145 | $2,034 | $2,127 | $2,248 | |||||||||||||||||||||||||||
| Client assets under administration | 1,401 | 1,076 | 1,026 | 1,077 | 1,081 | |||||||||||||||||||||||||||
| Total assets | $3,763 | $3,221 | $3,060 | $3,204 | $3,329 | |||||||||||||||||||||||||||
| LSV Asset Management: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs (B) | $95,962 | $81,940 | $75,380 | $83,753 | $84,964 | |||||||||||||||||||||||||||
| Total: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs (C) | $288,326 | $247,409 | $229,524 | $247,460 | $253,652 | |||||||||||||||||||||||||||
| Collective trust fund programs | 85,424 | 142,047 | 137,551 | 141,297 | 146,186 | |||||||||||||||||||||||||||
| Liquidity funds | 11,574 | 14,125 | 11,087 | 10,608 | 10,388 | |||||||||||||||||||||||||||
| Total assets under management | $385,324 | $403,581 | $378,162 | $399,365 | $410,226 | |||||||||||||||||||||||||||
| Client assets under advisement | 6,179 | 5,294 | 5,230 | 5,391 | 5,640 | |||||||||||||||||||||||||||
| Client assets under administration (D) | 899,630 | 889,019 | 785,407 | 814,642 | 850,127 | |||||||||||||||||||||||||||
| Platform-only assets | 14,151 | 12,642 | 12,609 | 13,931 | 14,980 | |||||||||||||||||||||||||||
| Total assets | $1,305,284 | $1,310,536 | $1,181,408 | $1,233,329 | $1,280,973 | |||||||||||||||||||||||||||
(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 $2.0 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 March 31, 2023).
(C)Equity and fixed-income programs include $6.3 billion of assets invested in various asset allocation funds (as of March 31, 2023).
(D) In addition to the assets presented, SEI also administers an additional $12.1 billion in Funds of Funds assets on which SEI does not earn an administration fee (as of March 31, 2023).
7
AVERAGE ASSET BALANCES
(In millions) (Unaudited)
| 1st Qtr. | 2nd Qtr. | 3rd Qtr. | 4th Qtr. | 1st Qtr. | ||||||||||||||||||||||||||||
| 2022 | 2022 | 2022 | 2022 | 2023 | ||||||||||||||||||||||||||||
| Private Banks: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs | $25,637 | $23,713 | $22,115 | $21,839 | $23,576 | |||||||||||||||||||||||||||
| Collective trust fund programs | 6 | 7 | 7 | 7 | 7 | |||||||||||||||||||||||||||
| Liquidity funds | 4,403 | 3,795 | 3,742 | 3,395 | 3,253 | |||||||||||||||||||||||||||
| Total assets under management | $30,046 | $27,515 | $25,864 | $25,241 | $26,836 | |||||||||||||||||||||||||||
| Client assets under administration | 4,500 | 4,163 | 4,026 | 4,126 | 4,316 | |||||||||||||||||||||||||||
| Total assets | $34,546 | $31,678 | $29,890 | $29,367 | $31,152 | |||||||||||||||||||||||||||
| Investment Advisors: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs | $77,576 | $70,436 | $67,464 | $66,100 | $67,578 | |||||||||||||||||||||||||||
| Liquidity funds | 5,151 | 7,070 | 5,380 | 5,127 | 4,995 | |||||||||||||||||||||||||||
| Total Platform assets under management | $82,727 | $77,506 | $72,844 | $71,227 | $72,573 | |||||||||||||||||||||||||||
| Platform-only assets | 13,978 | 13,142 | 13,271 | 13,905 | 14,812 | |||||||||||||||||||||||||||
| Total Platform assets | $96,705 | $90,648 | $86,115 | $85,132 | $87,385 | |||||||||||||||||||||||||||
| Institutional Investors: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs | $89,250 | $80,971 | $74,859 | $72,581 | $74,653 | |||||||||||||||||||||||||||
| Collective trust fund programs | 5 | 5 | 6 | 5 | 5 | |||||||||||||||||||||||||||
| Liquidity funds | 2,223 | 2,097 | 1,717 | 1,719 | 1,715 | |||||||||||||||||||||||||||
| Total assets under management | $91,478 | $83,073 | $76,582 | $74,305 | $76,373 | |||||||||||||||||||||||||||
| Client assets under advisement | 4,889 | 3,987 | 4,194 | 4,251 | 4,431 | |||||||||||||||||||||||||||
| Total assets | $96,367 | $87,060 | $80,776 | $78,556 | $80,804 | |||||||||||||||||||||||||||
| Investment Managers: | ||||||||||||||||||||||||||||||||
| Collective trust fund programs (A) | $86,633 | $131,435 | $143,817 | $140,494 | $144,914 | |||||||||||||||||||||||||||
| Liquidity funds | 432 | 285 | 250 | 275 | 317 | |||||||||||||||||||||||||||
| Total assets under management | $87,065 | $131,720 | $144,067 | $140,769 | $145,231 | |||||||||||||||||||||||||||
| Client assets under administration | 888,854 | 893,361 | 782,559 | 785,813 | 836,410 | |||||||||||||||||||||||||||
| Total assets | $975,919 | $1,025,081 | $926,626 | $926,582 | $981,641 | |||||||||||||||||||||||||||
| Investments in New Businesses: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs | $2,025 | $2,016 | $1,939 | $1,890 | $1,991 | |||||||||||||||||||||||||||
| Liquidity funds | 286 | 262 | 231 | 208 | 212 | |||||||||||||||||||||||||||
| Total assets under management | $2,311 | $2,278 | $2,170 | $2,098 | $2,203 | |||||||||||||||||||||||||||
| Client assets under advisement | 1,397 | 1,165 | 1,126 | 1,075 | 1,098 | |||||||||||||||||||||||||||
| Total assets | $3,708 | $3,443 | $3,296 | $3,173 | $3,301 | |||||||||||||||||||||||||||
| LSV Asset Management: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs (B) | $96,449 | $87,818 | $81,241 | $83,370 | $86,987 | |||||||||||||||||||||||||||
| Total: | ||||||||||||||||||||||||||||||||
| Equity and fixed-income programs (C) | $290,937 | $264,954 | $247,618 | $245,780 | $254,785 | |||||||||||||||||||||||||||
| Collective trust fund programs | 86,644 | 131,447 | 143,830 | 140,506 | 144,926 | |||||||||||||||||||||||||||
| Liquidity funds | 12,495 | 13,509 | 11,320 | 10,724 | 10,492 | |||||||||||||||||||||||||||
| Total assets under management | $390,076 | $409,910 | $402,768 | $397,010 | $410,203 | |||||||||||||||||||||||||||
| Client assets under advisement | 6,286 | 5,152 | 5,320 | 5,326 | 5,529 | |||||||||||||||||||||||||||
| Client assets under administration (D) | 893,354 | 897,524 | 786,585 | 789,939 | 840,726 | |||||||||||||||||||||||||||
| Platform-only assets | 13,978 | 13,142 | 13,271 | 13,905 | 14,812 | |||||||||||||||||||||||||||
| Total assets | $1,303,694 | $1,325,728 | $1,207,944 | $1,206,180 | $1,271,270 | |||||||||||||||||||||||||||
(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 first-quarter 2023 include $2.1 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 $6.4 billion of average assets invested in various asset allocation funds during first-quarter 2023.
(D) In addition to the assets presented, SEI also administers an additional $12.3 billion of average assets in Funds of Funds assets during first-quarter 2023 on which SEI does not earn an administration fee.
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