UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

________________________________________

FORM 10-Q


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~September~~June 30, ~~2021~~2022


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OF 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from_________to ________

Commission File Number: 0-10200

________________________________________

SEI INVESTMENTS COMPANY

(Exact Name of Registrant as Specified in its Charter)

________________________________________


Pennsylvania						23-1707341
(State or Other Jurisdiction of Incorporation or Organization)						(I.R.S. Employer Identification No.)

1 Freedom Valley Drive, Oaks, Pennsylvania 19456-1100

(Address of Principal Executive Offices) (Zip Code)

(610) 676-1000

(Registrant’s Telephone Number, Including Area Code)

N/A

(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

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 (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No x

The number of shares outstanding of the registrant’s common stock, as of the close of business on ~~October 21, 2021:~~July 15, 2022:


Common Stock, $0.01 par value						~~139,452,507~~135,489,033

SEI INVESTMENTS COMPANY

TABLE OF CONTENTS

PART I - FINANCIAL INFORMATION

Page

Item 1.

Financial Statements.

Consolidated Balance Sheets (Unaudited) -- ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020~~2021

Consolidated Statements of Operations (Unaudited) -- For the Three and ~~Nine~~Six Months Ended ~~September~~June 30, ~~2021~~2022 and ~~2020~~2021

Consolidated Statements of Comprehensive Income (Unaudited) -- For the Three and ~~Nine~~Six Months Ended ~~September~~June 30, ~~2021~~2022 and ~~2020~~2021

Consolidated Statements of Changes in Equity (Unaudited) -- For the Three and ~~Nine~~Six Months Ended ~~September~~June 30, ~~2021~~2022 and ~~2020~~2021

Consolidated Condensed Statements of Cash Flows (Unaudited) -- For the ~~Nine~~Six Months Ended ~~September~~June 30, ~~2021~~2022 and ~~2020~~2021

Notes to Consolidated Financial Statements

Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations.

2829

Item 3.

Quantitative and Qualitative Disclosures About Market Risk.

4344

Item 4.

Controls and Procedures.

4344

PART II - OTHER INFORMATION

Item 1.

Legal Proceedings.

4546

Item 1A.

Risk Factors.

4546

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds.

4546

Item 6.

Exhibits.

4546

Signatures

4647

PART I. FINANCIAL INFORMATION

Item 1. Consolidated Financial Statements.

SEI Investments Company

Consolidated Balance Sheets

(unaudited)

(In thousands, except par value)


		September 30, 2021		December 31, 2020			June 30, 2022		December 31, 2021
Assets	Assets					Assets
Current Assets:	Current Assets:					Current Assets:
Cash and cash equivalents	Cash and cash equivalents	$	793,883	$	784,626	Cash and cash equivalents	$	771,673	$	831,407
Restricted cash	Restricted cash	351		3,101		Restricted cash	351		351
Receivables from investment products	Receivables from investment products	59,808		55,271		Receivables from investment products	54,911		59,036
Receivables, net of allowance for doubtful accounts of $2,669 and $1,100		442,187		385,219
Receivables, net of allowance for doubtful accounts of $1,952 and $1,602						Receivables, net of allowance for doubtful accounts of $1,952 and $1,602	466,902		441,609
Securities owned	Securities owned	31,770		34,064		Securities owned	31,171		28,267
Other current assets	Other current assets	42,615		38,696		Other current assets	50,523		43,559
Total Current Assets	Total Current Assets	1,370,614		1,300,977		Total Current Assets	1,375,531		1,404,229
Property and Equipment, net of accumulated depreciation of $400,679 and $378,639		183,802		189,052
Property and Equipment, net of accumulated depreciation of $424,048 and $409,248						Property and Equipment, net of accumulated depreciation of $424,048 and $409,248	178,946		178,869
Operating Lease Right-of-Use Assets	Operating Lease Right-of-Use Assets	35,145		38,397		Operating Lease Right-of-Use Assets	27,629		33,614
Capitalized Software, net of accumulated amortization of $531,923 and $491,739		250,280		270,977
Capitalized Software, net of accumulated amortization of $572,065 and $545,307						Capitalized Software, net of accumulated amortization of $572,065 and $545,307	230,497		243,446
Available for Sale and Equity Securities	Available for Sale and Equity Securities	140,079		105,419		Available for Sale and Equity Securities	121,682		129,541
Investments in Affiliated Funds, at fair value	Investments in Affiliated Funds, at fair value	6,893		6,166		Investments in Affiliated Funds, at fair value	6,000		6,916
Investment in Unconsolidated Affiliate	Investment in Unconsolidated Affiliate	39,872		98,433		Investment in Unconsolidated Affiliate	46,865		107,918
Goodwill	Goodwill	64,489		64,489		Goodwill	117,405		117,232
Intangible Assets, net of accumulated amortization of $15,768 and $12,456		31,992		24,304
Intangible Assets, net of accumulated amortization of $24,163 and $17,716						Intangible Assets, net of accumulated amortization of $24,163 and $17,716	61,669		68,782
Deferred Contract Costs	Deferred Contract Costs	34,263		33,781		Deferred Contract Costs	35,353		36,236
Deferred Income Taxes	Deferred Income Taxes	2,148		2,972		Deferred Income Taxes	2,459		2,983
Other Assets, net	Other Assets, net	32,224		32,289		Other Assets, net	30,893		24,936
Total Assets	Total Assets	$	2,191,801	$	2,167,256	Total Assets	$	2,234,929	$	2,354,702

The accompanying notes are an integral part of these consolidated financial statements.

SEI Investments Company

Consolidated Balance Sheets

(unaudited)

(In thousands, except par value)


		September 30, 2021		December 31, 2020			June 30, 2022		December 31, 2021
Liabilities and Equity	Liabilities and Equity					Liabilities and Equity
Current Liabilities:	Current Liabilities:					Current Liabilities:
Accounts payable	Accounts payable	$	10,772	$	7,766	Accounts payable	$	10,305	$	10,312
Accrued liabilities	Accrued liabilities	231,043		299,845		Accrued liabilities	218,752		324,382
Current portion of long-term operating lease liabilities	Current portion of long-term operating lease liabilities	10,412		8,579		Current portion of long-term operating lease liabilities	10,993		11,328
Deferred revenue	Deferred revenue	1,235		1,085		Deferred revenue	13,510		9,721
Total Current Liabilities	Total Current Liabilities	253,462		317,275		Total Current Liabilities	253,560		355,743
Borrowings Under Revolving Credit Facility						Borrowings Under Revolving Credit Facility	—		40,000
Long-term Income Taxes Payable	Long-term Income Taxes Payable	803		803		Long-term Income Taxes Payable	803		803
Deferred Income Taxes	Deferred Income Taxes	47,434		55,159		Deferred Income Taxes	22,833		48,876
Long-term Operating Lease Liabilities	Long-term Operating Lease Liabilities	29,857		34,058		Long-term Operating Lease Liabilities	21,675		27,639
Other Long-term Liabilities	Other Long-term Liabilities	22,157		20,054		Other Long-term Liabilities	13,970		20,878
Total Liabilities	Total Liabilities	353,713		427,349		Total Liabilities	312,841		493,939
Commitments and Contingencies	Commitments and Contingencies	0		0		Commitments and Contingencies	0		0
Shareholders' Equity:	Shareholders' Equity:					Shareholders' Equity:
Common stock, $0.01 par value, 750,000 shares authorized; 139,305 and 143,396 shares issued and outstanding		1,393		1,434
Common stock, $0.01 par value, 750,000 shares authorized; 135,480 and 138,449 shares issued and outstanding						Common stock, $0.01 par value, 750,000 shares authorized; 135,480 and 138,449 shares issued and outstanding	1,355		1,384
Capital in excess of par value	Capital in excess of par value	1,228,085		1,190,001		Capital in excess of par value	1,272,971		1,246,608
Retained earnings	Retained earnings	629,153		565,270		Retained earnings	693,525		632,614
Accumulated other comprehensive loss, net	Accumulated other comprehensive loss, net	(20,543)		(16,798)		Accumulated other comprehensive loss, net	(45,763)		(19,843)
Total Shareholders' Equity	Total Shareholders' Equity	1,838,088		1,739,907		Total Shareholders' Equity	1,922,088		1,860,763
Total Liabilities and Shareholders' Equity	Total Liabilities and Shareholders' Equity	$	2,191,801	$	2,167,256	Total Liabilities and Shareholders' Equity	$	2,234,929	$	2,354,702

The accompanying notes are an integral part of these consolidated financial statements.

SEI Investments Company

Consolidated Statements of Operations

(unaudited)

(In thousands, except per share data)


		Three Months Ended September 30,				Nine Months Ended September 30,					Three Months Ended June 30,				Six Months Ended June 30,
		2021		2020		2021		2020			2022		2021		2022		2021
Revenues:	Revenues:									Revenues:
Asset management, administration and distribution fees	Asset management, administration and distribution fees	$	393,296	$	339,609	$	1,143,451	$	992,039	Asset management, administration and distribution fees	$	382,594	$	382,509	$	776,691	$	750,155
Information processing and software servicing fees	Information processing and software servicing fees	92,026		85,318		273,208		248,296		Information processing and software servicing fees	99,076		93,142		286,422		181,182
Total revenues	Total revenues	485,322		424,927		1,416,659		1,240,335		Total revenues	481,670		475,651		1,063,113		931,337
Expenses:	Expenses:									Expenses:
Subadvisory, distribution and other asset management costs	Subadvisory, distribution and other asset management costs	55,619		45,126		161,610		134,645		Subadvisory, distribution and other asset management costs	50,023		55,827		103,151		105,991
Software royalties and other information processing costs	Software royalties and other information processing costs	7,348		6,992		20,561		21,828		Software royalties and other information processing costs	7,407		7,471		14,954		13,213
Compensation, benefits and other personnel	Compensation, benefits and other personnel	150,188		134,795		429,188		391,607		Compensation, benefits and other personnel	157,921		141,779		318,405		279,000
Stock-based compensation	Stock-based compensation	11,318		6,467		31,173		20,458		Stock-based compensation	10,007		10,103		20,573		19,855
Consulting, outsourcing and professional fees	Consulting, outsourcing and professional fees	55,868		57,949		165,657		168,350		Consulting, outsourcing and professional fees	63,271		55,449		125,762		109,789
Data processing and computer related	Data processing and computer related	26,650		24,437		79,746		71,647		Data processing and computer related	32,254		27,375		62,070		53,096
Facilities, supplies and other costs	Facilities, supplies and other costs	14,124		16,679		49,851		47,448		Facilities, supplies and other costs	20,133		18,479		37,760		35,727
Amortization	Amortization	14,674		13,200		43,749		39,417		Amortization	16,508		14,723		33,395		29,075
Depreciation	Depreciation	8,408		7,945		25,141		23,058		Depreciation	8,286		8,424		16,384		16,733
Total expenses	Total expenses	344,197		313,590		1,006,676		918,458		Total expenses	365,810		339,630		732,454		662,479
Income from operations	Income from operations	141,125		111,337		409,983		321,877		Income from operations	115,860		136,021		330,659		268,858
Net (loss) gain from investments	Net (loss) gain from investments	(575)		776		134		(1,310)		Net (loss) gain from investments	(2,620)		377		(3,109)		709
Interest and dividend income	Interest and dividend income	892		1,009		2,715		5,582		Interest and dividend income	1,853		878		2,701		1,823
Interest expense	Interest expense	(101)		(153)		(354)		(456)		Interest expense	(211)		(130)		(461)		(253)
Equity in earnings of unconsolidated affiliate	Equity in earnings of unconsolidated affiliate	35,005		28,305		103,420		86,488		Equity in earnings of unconsolidated affiliate	29,813		35,065		62,272		68,415
Income before income taxes	Income before income taxes	176,346		141,274		515,898		412,181		Income before income taxes	144,695		172,211		392,062		339,552
Income taxes	Income taxes	38,301		30,178		114,605		90,777		Income taxes	33,419		38,433		90,478		76,304
Net income	Net income	$	138,045	$	111,096	$	401,293	$	321,404	Net income	$	111,276	$	133,778	$	301,584	$	263,248
Basic earnings per common share	Basic earnings per common share	$	0.98	$	0.76	$	2.83	$	2.18	Basic earnings per common share	$	0.82	$	0.94	$	2.20	$	1.85
Shares used to compute basic earnings per share	Shares used to compute basic earnings per share	140,507		145,812		141,928		147,586		Shares used to compute basic earnings per share	136,435		142,074		137,185		142,638
Diluted earnings per common share	Diluted earnings per common share	$	0.97	$	0.75	$	2.79	$	2.14	Diluted earnings per common share	$	0.81	$	0.93	$	2.17	$	1.82
Shares used to compute diluted earnings per share	Shares used to compute diluted earnings per share	142,426		147,907		143,981		149,958		Shares used to compute diluted earnings per share	137,817		144,212		138,764		144,759
Dividends declared per common share	Dividends declared per common share	$	—	$	—	$	0.37	$	0.35	Dividends declared per common share	$	0.40	$	0.37	$	0.40	$	0.37

The accompanying notes are an integral part of these consolidated financial statements.

SEI Investments Company

Consolidated Statements of Comprehensive Income

(unaudited)

(In thousands)


		Three Months Ended September 30,				Nine Months Ended September 30,					Three Months Ended June 30,				Six Months Ended June 30,
		2021		2020		2021		2020			2022		2021		2022		2021
Net income	Net income	$	138,045	$	111,096	$	401,293	$	321,404	Net income	$	111,276	$	133,778	$	301,584	$	263,248
Other comprehensive (loss) income, net of tax:	Other comprehensive (loss) income, net of tax:									Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments	Foreign currency translation adjustments	(5,546)		7,085		(2,867)		(5,051)		Foreign currency translation adjustments	(14,623)		994		(19,181)		2,679
Unrealized (loss) gain on investments:
Unrealized (losses) gains during the period, net of income taxes of $208, $154, $453 and $(218)		(713)		(542)		(1,548)		702
Reclassification adjustment for losses realized in net income, net of income taxes of $(67), $(63), $(190) and $(126)		238		238		670		455
Unrealized loss on investments:										Unrealized loss on investments:
Unrealized losses during the period, net of income taxes of $923, $85, $2,109 and $245										Unrealized losses during the period, net of income taxes of $923, $85, $2,109 and $245	(3,088)		(292)		(7,057)		(835)
Reclassification adjustment for losses realized in net income, net of income taxes of $(39), $(49), $(96) and $(123)										Reclassification adjustment for losses realized in net income, net of income taxes of $(39), $(49), $(96) and $(123)	129		179		318		432
Total other comprehensive (loss) income, net of tax	Total other comprehensive (loss) income, net of tax	(6,021)		6,781		(3,745)		(3,894)		Total other comprehensive (loss) income, net of tax	(17,582)		881		(25,920)		2,276
Comprehensive income	Comprehensive income	$	132,024	$	117,877	$	397,548	$	317,510	Comprehensive income	$	93,694	$	134,659	$	275,664	$	265,524

The accompanying notes are an integral part of these consolidated financial statements.

SEI Investments Company

Consolidated Statements of Changes in Equity

(unaudited)

(In thousands)


		Shares of Common Stock	Common Stock		Capital In Excess of Par Value		Retained Earnings		Accumulated Other Comprehensive Loss		Total Equity			Shares of Common Stock	Common Stock		Capital In Excess of Par Value		Retained Earnings		Accumulated Other Comprehensive Loss		Total Equity
		For the Three Months Ended September 30, 2021												For the Three Months Ended June 30, 2022
Balance, July 1, 2021		141,027	$	1,410	$	1,219,487	$	599,231	$	(14,522)	$	1,805,606
Balance, April 1, 2022													Balance, April 1, 2022	137,219	$	1,372	$	1,266,320	$	733,572	$	(28,181)	$	1,973,083
Net income	Net income	—	—		—		138,045		—		138,045		Net income	—	—		—		111,276		—		111,276
Other comprehensive loss	Other comprehensive loss	—	—		—		—		(6,021)		(6,021)		Other comprehensive loss	—	—		—		—		(17,582)		(17,582)
Purchase and retirement of common stock	Purchase and retirement of common stock	(1,980)	(21)		(11,751)		(108,123)		—		(119,895)		Purchase and retirement of common stock	(1,970)	(20)		(12,328)		(96,945)		—		(109,293)
Issuance of common stock under employee stock purchase plan	Issuance of common stock under employee stock purchase plan	22	1		1,119		—		—		1,120		Issuance of common stock under employee stock purchase plan	22	1		1,089		—		—		1,090
Issuance of common stock upon exercise of stock options	Issuance of common stock upon exercise of stock options	236	3		7,912		—		—		7,915		Issuance of common stock upon exercise of stock options	209	2		7,883		—		—		7,885
Stock-based compensation	Stock-based compensation	—	—		11,318		—		—		11,318		Stock-based compensation	—	—		10,007		—		—		10,007

Balance, September 30, 2021		139,305	$	1,393	$	1,228,085	$	629,153	$	(20,543)	$	1,838,088
Dividends declared ($0.40 per share)													Dividends declared ($0.40 per share)	—	—		—		(54,378)		—		(54,378)
Balance, June 30, 2022													Balance, June 30, 2022	135,480	$	1,355	$	1,272,971	$	693,525	$	(45,763)	$	1,922,088


		Shares of Common Stock	Common Stock		Capital In Excess of Par Value		Retained Earnings		Accumulated Other Comprehensive Loss		Total Equity			Shares of Common Stock	Common Stock		Capital In Excess of Par Value		Retained Earnings		Accumulated Other Comprehensive Loss		Total Equity
		For the Three Months Ended September 30, 2020												For the Three Months Ended June 30, 2021
Balance, July 1, 2020		146,445	$	1,464	$	1,174,411	$	566,929	$	(34,179)	$	1,708,625
Balance, April 1, 2021													Balance, April 1, 2021	142,701	$	1,427	$	1,208,433	$	634,651	$	(15,403)	$	1,829,108
Net income	Net income	—	—		—		111,096		—		111,096		Net income	—	—		—		133,778		—		133,778
Other comprehensive income	Other comprehensive income	—	—		—		—		6,781		6,781		Other comprehensive income	—	—		—		—		881		881
Purchase and retirement of common stock	Purchase and retirement of common stock	(2,110)	(22)		(11,939)		(96,781)		—		(108,742)		Purchase and retirement of common stock	(2,086)	(21)		(12,389)		(116,809)		—		(129,219)
Issuance of common stock under employee stock purchase plan	Issuance of common stock under employee stock purchase plan	26	1		1,152		—		—		1,153		Issuance of common stock under employee stock purchase plan	18	—		966		—		—		966
Issuance of common stock upon exercise of stock options	Issuance of common stock upon exercise of stock options	130	2		4,051		—		—		4,053		Issuance of common stock upon exercise of stock options	394	4		12,374		—		—		12,378
Stock-based compensation	Stock-based compensation	—	—		6,467		—		—		6,467		Stock-based compensation	—	—		10,103		—		—		10,103

Balance, September 30, 2020		144,491	$	1,445	$	1,174,142	$	581,244	$	(27,398)	$	1,729,433
Dividends declared ($0.37 per share)													Dividends declared ($0.37 per share)	—	—		—		(52,389)		—		(52,389)
Balance, June 30, 2021													Balance, June 30, 2021	141,027	$	1,410	$	1,219,487	$	599,231	$	(14,522)	$	1,805,606

The accompanying notes are an integral part of these consolidated financial statements.

SEI Investments Company

Consolidated Statements of Changes in Equity

(unaudited)

(In thousands)


		Shares of Common Stock	Common Stock		Capital In Excess of Par Value		Retained Earnings		Accumulated Other Comprehensive Loss		Total Equity			Shares of Common Stock	Common Stock		Capital In Excess of Par Value		Retained Earnings		Accumulated Other Comprehensive Loss		Total Equity
		For the Nine Months Ended September 30, 2021												For the Six Months Ended June 30, 2022
Balance, January 1, 2021		143,396	$	1,434	$	1,190,001	$	565,270	$	(16,798)	$	1,739,907
Balance, January 1, 2022													Balance, January 1, 2022	138,449	$	1,384	$	1,246,608	$	632,614	$	(19,843)	$	1,860,763
Net income	Net income	—	—		—		401,293		—		401,293		Net income	—	—		—		301,584		—		301,584
Other comprehensive loss	Other comprehensive loss	—	—		—		—		(3,745)		(3,745)		Other comprehensive loss	—	—		—		—		(25,920)		(25,920)
Purchase and retirement of common stock	Purchase and retirement of common stock	(5,218)	(53)		(30,979)		(285,021)		—		(316,053)		Purchase and retirement of common stock	(3,683)	(37)		(23,051)		(186,295)		—		(209,383)
Issuance of common stock under employee stock purchase plan	Issuance of common stock under employee stock purchase plan	64	1		3,224		—		—		3,225		Issuance of common stock under employee stock purchase plan	45	1		2,257		—		—		2,258
Issuance of common stock upon exercise of stock options	Issuance of common stock upon exercise of stock options	1,063	11		34,666		—		—		34,677		Issuance of common stock upon exercise of stock options	669	7		26,584		—		—		26,591
Stock-based compensation	Stock-based compensation	—	—		31,173		—		—		31,173		Stock-based compensation	—	—		20,573		—		—		20,573
Dividends declared ($0.37 per share)		—	—		—		(52,389)		—		(52,389)
Balance, September 30, 2021		139,305	$	1,393	$	1,228,085	$	629,153	$	(20,543)	$	1,838,088
Dividends declared ($0.40 per share)													Dividends declared ($0.40 per share)	—	—		—		(54,378)		—		(54,378)
Balance, June 30, 2022													Balance, June 30, 2022	135,480	$	1,355	$	1,272,971	$	693,525	$	(45,763)	$	1,922,088


		Shares of Common Stock	Common Stock		Capital In Excess of Par Value		Retained Earnings		Accumulated Other Comprehensive Loss		Total Equity			Shares of Common Stock	Common Stock		Capital In Excess of Par Value		Retained Earnings		Accumulated Other Comprehensive Loss		Total Equity
		For the Nine Months Ended September 30, 2020												For the Six Months Ended June 30, 2021
Balance, January 1, 2020		149,745	$	1,497	$	1,158,900	$	601,885	$	(23,504)	$	1,738,778
Balance, January 1, 2021													Balance, January 1, 2021	143,396	$	1,434	$	1,190,001	$	565,270	$	(16,798)	$	1,739,907
Net income	Net income	—	—		—		321,404		—		321,404		Net income	—	—		—		263,248		—		263,248
Other comprehensive loss		—	—		—		—		(3,894)		(3,894)
Other comprehensive income													Other comprehensive income	—	—		—		—		2,276		2,276
Purchase and retirement of common stock	Purchase and retirement of common stock	(6,185)	(62)		(34,999)		(290,583)		—		(325,644)		Purchase and retirement of common stock	(3,238)	(32)		(19,228)		(176,898)		—		(196,158)
Issuance of common stock under employee stock purchase plan	Issuance of common stock under employee stock purchase plan	73	1		3,400		—		—		3,401		Issuance of common stock under employee stock purchase plan	42	—		2,105		—		—		2,105
Issuance of common stock upon exercise of stock options	Issuance of common stock upon exercise of stock options	858	9		26,383		—		—		26,392		Issuance of common stock upon exercise of stock options	827	8		26,754		—		—		26,762
Stock-based compensation	Stock-based compensation	—	—		20,458		—		—		20,458		Stock-based compensation	—	—		19,855		—		—		19,855
Dividends declared ($0.35 per share)		—	—		—		(51,462)		—		(51,462)
Balance, September 30, 2020		144,491	$	1,445	$	1,174,142	$	581,244	$	(27,398)	$	1,729,433
Dividends declared ($0.37 per share)													Dividends declared ($0.37 per share)	—	—		—		(52,389)		—		(52,389)
Balance, June 30, 2021													Balance, June 30, 2021	141,027	$	1,410	$	1,219,487	$	599,231	$	(14,522)	$	1,805,606

The accompanying notes are an integral part of these consolidated financial statements.

SEI Investments Company

Consolidated Condensed Statements of Cash Flows

(unaudited)

(In thousands)


		Nine Months Ended September 30,					Six Months Ended June 30,
		2021		2020			2022		2021
Cash flows from operating activities:	Cash flows from operating activities:					Cash flows from operating activities:
Net income	Net income	$	401,293	$	321,404	Net income	$	301,584	$	263,248
Adjustments to reconcile net income to net cash provided by operating activities (See Note 1)	Adjustments to reconcile net income to net cash provided by operating activities (See Note 1)	82,588		75,120		Adjustments to reconcile net income to net cash provided by operating activities (See Note 1)	29,031		61,749
Net cash provided by operating activities	Net cash provided by operating activities	483,881		396,524		Net cash provided by operating activities	330,615		324,997
Cash flows from investing activities:	Cash flows from investing activities:					Cash flows from investing activities:
Additions to property and equipment	Additions to property and equipment	(22,520)		(43,113)		Additions to property and equipment	(19,821)		(15,469)
Additions to capitalized software	Additions to capitalized software	(19,486)		(18,640)		Additions to capitalized software	(13,809)		(12,271)
Purchases of marketable securities	Purchases of marketable securities	(168,333)		(114,407)		Purchases of marketable securities	(96,642)		(81,541)
Prepayments and maturities of marketable securities	Prepayments and maturities of marketable securities	133,895		112,575		Prepayments and maturities of marketable securities	90,553		64,194
Sales of marketable securities	Sales of marketable securities	327		842		Sales of marketable securities	106		—
Other investing activities	Other investing activities	(11,425)		(1,500)		Other investing activities	(2,903)		(11,000)
Net cash used in investing activities	Net cash used in investing activities	(87,542)		(64,243)		Net cash used in investing activities	(42,516)		(56,087)
Cash flows from financing activities:	Cash flows from financing activities:					Cash flows from financing activities:
Repayments under revolving credit facility						Repayments under revolving credit facility	(40,000)		—
Payment of contingent consideration	Payment of contingent consideration	(3,965)		(633)		Payment of contingent consideration	(868)		(3,965)
Purchase and retirement of common stock	Purchase and retirement of common stock	(315,811)		(327,079)		Purchase and retirement of common stock	(210,324)		(197,322)
Proceeds from issuance of common stock	Proceeds from issuance of common stock	37,902		29,793		Proceeds from issuance of common stock	28,849		28,867
Payment of dividends	Payment of dividends	(105,516)		(103,914)		Payment of dividends	(109,830)		(105,516)
Net cash used in financing activities	Net cash used in financing activities	(387,390)		(401,833)		Net cash used in financing activities	(332,173)		(277,936)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	Effect of exchange rate changes on cash, cash equivalents and restricted cash	(2,442)		(4,196)		Effect of exchange rate changes on cash, cash equivalents and restricted cash	(15,660)		2,578
Net increase (decrease) in cash, cash equivalents and restricted cash		6,507		(73,748)
Net decrease in cash, cash equivalents and restricted cash						Net decrease in cash, cash equivalents and restricted cash	(59,734)		(6,448)
Cash, cash equivalents and restricted cash, beginning of period	Cash, cash equivalents and restricted cash, beginning of period	787,727		844,547		Cash, cash equivalents and restricted cash, beginning of period	831,758		787,727
Cash, cash equivalents and restricted cash, end of period	Cash, cash equivalents and restricted cash, end of period	$	794,234	$	770,799	Cash, cash equivalents and restricted cash, end of period	$	772,024	$	781,279

The accompanying notes are an integral part of these consolidated financial statements.

Notes to Consolidated Financial Statements

(all figures are in thousands except share and per share data)

Note 1. Summary of Significant Accounting Policies

Nature of Operations

SEI Investments Company (the Company), a Pennsylvania corporation, provides comprehensive platforms, services and ~~infrastructure—~~infrastructure–encompassing technology, operational, and investment management ~~services—~~services–to help wealth managers, financial advisors, investment managers, family offices, institutional and private investors create and manage wealth.

Investment processing platforms provide technologies and business process outsourcing services for wealth managers and investment advisors. These solutions include investment advisory, client relationship, and other technology-enabled capabilities for the front office; administrative and investment services for the middle office; and accounting and processing services for the back office. Revenues from investment processing platforms are recognized in Information processing and software servicing fees on the accompanying Consolidated Statements of Operations.

Investment operations platforms provide business process outsourcing services for investment managers and asset owners. These platforms support a broad range of traditional and alternative investments and provide technology-enabled information analytics and investor capabilities for the front office; administrative and investment services for the middle office; and fund administration and accounting services for the back office. Revenues from investment operations platforms are recognized in Asset management, administration and distribution fees on the accompanying Consolidated Statements of Operations.

Investment management platforms provide comprehensive solutions for managing personal and institutional wealth. These platforms include goals-based investment strategies; SEI-sponsored investment products, including mutual funds, collective investment products, alternative investment portfolios and separately managed accounts (SMA); and other market-specific advice, technology and operational components. These platforms are offered to wealth managers as part of a complete goals-based investment program for their end-investors. For institutional investors, the Company provides Outsourced Chief Investment Officer (OCIO) solutions that include investment management programs, as well as advisory and administrative services. Revenues from investment management platforms are recognized in Asset management, administration and distribution fees on the accompanying Consolidated Statements of Operations.

Basis of Presentation

The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America. Certain financial information and accompanying note disclosure normally included in the Company’s Annual Report on Form 10-K have been condensed or omitted. The interim financial information is unaudited but reflects all adjustments (consisting of only normal recurring adjustments) which are, in the opinion of management, necessary for a fair statement of financial position of the Company as of ~~September~~June 30, ~~2021,~~2022, the results of operations for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020,~~2021, and cash flows for the ~~nine-months~~six-months ended ~~September~~June 30, ~~2021~~2022 and ~~2020.~~2021. These interim Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and the Notes to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, ~~2020.~~2021.

There have been no significant changes in significant accounting policies during the ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 as compared to the significant accounting policies described in the Company's Annual Report on Form 10-K for the year ended December 31, ~~2020.~~2021.

Variable Interest Entities

The Company or its affiliates have created numerous investment products for its clients in various types of legal entity structures. The Company serves as the Manager, Administrator and Distributor for these investment products and may also serve as the Trustee for some of the investment products. The Company receives asset management, distribution, administration and custodial fees for these services. Clients are the equity investors and participate in proportion to their ownership percentage in the net income or loss and net capital gains or losses of the products, and, on liquidation, will participate in proportion to their ownership percentage in the remaining net assets of the products after satisfaction of outstanding liabilities. The Company has concluded that it is not the primary beneficiary of the entities and, therefore, is not required to consolidate any of the pooled investment vehicles for which it receives asset management, distribution, administration and custodial fees under the VIE model.

The Company is a party to expense limitation agreements with certain SEI-sponsored money market funds subject to Rule 2a-7 of the Investment Company Act of 1940 which establish a maximum level of ordinary operating expenses incurred by the fund in any fiscal year including, but not limited to, fees of the administrator or its affiliates. Under the terms of these

agreements, the Company waived ~~$11,629~~$9,039 and ~~$8,575~~$11,256 in fees during the three months ended ~~September~~June 30, ~~2021~~2022 and ~~2020,~~2021, respectively. During the ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020,~~2021, the Company waived ~~$33,118~~$20,224 and ~~$24,930,~~$21,489, respectively, in fees.

Revenue Recognition

Revenue is recognized when the transfer of control of promised goods or services under the terms of a contract with customers are satisfied in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those promised goods or services. Certain portions of the Company’s revenues involve a third party in providing goods or services to its customers. In such circumstances, the Company must determine whether the nature of its promise to the customer is to provide the underlying goods or services (the Company is the principal in the transaction and reports the transaction gross) or to arrange for a third party to provide the underlying goods or services (the entity is the agent in the transaction and reports the transaction net). See Note 13 for related disclosures regarding revenue recognition.

Cash and Cash Equivalents

Cash and cash equivalents includes ~~$332,657~~$320,825 and ~~$347,082~~$290,256 at ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020,~~2021, respectively, primarily invested in SEI-sponsored open-ended money market mutual funds.

Restricted Cash

Restricted cash includes $250 ~~and $3,000~~ at ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020, respectively,~~2021 segregated for regulatory purposes related to trade-execution services conducted by SEI Investments (Europe) Limited. Restricted cash also includes $101 at ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020~~2021 segregated in special reserve accounts for the benefit of customers of the Company’s broker-dealer subsidiary, SEI Investments Distribution Co. (SIDCO), in accordance with certain rules established by the Securities and Exchange Commission (SEC) for broker-dealers.

Capitalized Software

The Company capitalized ~~$19,486~~$13,809 and ~~$18,640~~$12,271 of software development costs during the ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020,~~2021, respectively. The Company's software development costs primarily relate to significant enhancements to the SEI Wealth PlatformSM (SWP). ~~The Company capitalized $19,387 and $17,208 of software development costs for significant enhancements to SWP during the nine months ended September 30, 2021 and 2020, respectively.~~ As of ~~September~~June 30, ~~2021,~~2022, the net book value of SWP was ~~$241,262~~$224,736. The net book value includes ~~$22,702~~$28,744 of capitalized software development costs in-progress associated with future releases of SWP. Capitalized software development costs in-progress associated with future releases of SWP were ~~$13,409~~$29,253 as of December 31, ~~2020.~~2021. SWP has a weighted average remaining life of ~~10.0~~10.3 years. Amortization expense for SWP was ~~$35,834~~$23,859 and ~~$32,576~~$23,876 during the ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020,~~2021, respectively.

Earnings per Share

The calculations of basic and diluted earnings per share for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020~~2021 are:


		Three Months Ended September 30,				Nine Months Ended September 30,					Three Months Ended June 30,				Six Months Ended June 30,
		2021		2020		2021		2020			2022		2021		2022		2021
Net income	Net income	$	138,045	$	111,096	$	401,293	$	321,404	Net income	$	111,276	$	133,778	$	301,584	$	263,248
Shares used to compute basic earnings per common share	Shares used to compute basic earnings per common share	140,507,000		145,812,000		141,928,000		147,586,000		Shares used to compute basic earnings per common share	136,435,000		142,074,000		137,185,000		142,638,000
Dilutive effect of stock options	Dilutive effect of stock options	1,919,000		2,095,000		2,053,000		2,372,000		Dilutive effect of stock options	1,382,000		2,138,000		1,579,000		2,121,000
Shares used to compute diluted earnings per common share	Shares used to compute diluted earnings per common share	142,426,000		147,907,000		143,981,000		149,958,000		Shares used to compute diluted earnings per common share	137,817,000		144,212,000		138,764,000		144,759,000
Basic earnings per common share	Basic earnings per common share	$	0.98	$	0.76	$	2.83	$	2.18	Basic earnings per common share	$	0.82	$	0.94	$	2.20	$	1.85
Diluted earnings per common share	Diluted earnings per common share	$	0.97	$	0.75	$	2.79	$	2.14	Diluted earnings per common share	$	0.81	$	0.93	$	2.17	$	1.82

During the three months ended ~~September~~June 30, ~~2021~~2022 and ~~2020,~~2021, employee stock options to purchase ~~11,347,000~~12,064,000 and ~~8,813,000~~11,530,000 shares of common stock with an average exercise price of ~~$57.80~~$60.27 and ~~$57.98,~~$57.77, respectively, were outstanding but not included in the computation of diluted earnings per common share. During the ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020,~~2021, employee stock options to purchase ~~11,531,000~~12,141,000 and ~~8,342,000~~11,623,000 shares of common stock with an average exercise price of ~~$57.78~~$60.28 and ~~$58.18,~~$57.77, respectively, were outstanding but not included in the computation of diluted earnings per common share. These options for the three and ~~nine~~six month periods were not included in the computation of diluted earnings per common share because either the performance conditions have not been satisfied or would not have been satisfied if the reporting date was the end of the contingency period or the options' exercise price was greater than

the average market price of the Company’s common stock and the effect on diluted earnings per common share would have been anti-dilutive.

~~Reclassifications~~

~~Certain prior year amounts have been reclassified to conform to current year presentation.~~

Statements of Cash Flows

For purposes of the Consolidated Statements of Cash Flows, the Company considers investment instruments purchased with an original maturity of three months or less to be cash equivalents.

The following table provides the details of the adjustments to reconcile net income to net cash provided by operating activities for the ~~nine~~six months ended ~~September~~June 30:


		2021		2020			2022		2021
Net income	Net income	$	401,293	$	321,404	Net income	$	301,584	$	263,248
Adjustments to reconcile net income to net cash provided by operating activities:	Adjustments to reconcile net income to net cash provided by operating activities:					Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	Depreciation	25,141		23,058		Depreciation	16,384		16,733
Amortization	Amortization	43,749		39,417		Amortization	33,395		29,075
Equity in earnings of unconsolidated affiliate	Equity in earnings of unconsolidated affiliate	(103,420)		(86,488)		Equity in earnings of unconsolidated affiliate	(62,272)		(68,415)
Distributions received from unconsolidated affiliate	Distributions received from unconsolidated affiliate	110,559		107,180		Distributions received from unconsolidated affiliate	69,824		68,064
Stock-based compensation	Stock-based compensation	31,173		20,458		Stock-based compensation	20,573		19,855
Provision for losses on receivables	Provision for losses on receivables	1,569		109		Provision for losses on receivables	350		2,088
Deferred income tax expense	Deferred income tax expense	(6,639)		(7,731)		Deferred income tax expense	(23,506)		(6,869)
Net (gain) loss from investments		(134)		1,310
Net loss (gain) from investments						Net loss (gain) from investments	3,109		(709)

Change in other long-term liabilities	Change in other long-term liabilities	2,103		(4,442)		Change in other long-term liabilities	1,998		987
Change in other assets	Change in other assets	314		(965)		Change in other assets	(3,111)		(976)
Contract costs capitalized, net of amortization	Contract costs capitalized, net of amortization	(482)		(2,842)		Contract costs capitalized, net of amortization	883		429
Other	Other	921		(1,053)		Other	(1,521)		929
Change in current assets and liabilities	Change in current assets and liabilities					Change in current assets and liabilities
(Increase) decrease in	(Increase) decrease in					(Increase) decrease in
Receivables from investment products	Receivables from investment products	(4,537)		2,521		Receivables from investment products	4,125		(906)
Receivables	Receivables	(58,537)		(37,921)		Receivables	(25,523)		(26,437)
Other current assets	Other current assets	(3,919)		(6,186)		Other current assets	(7,014)		538
Advances due from unconsolidated affiliate	Advances due from unconsolidated affiliate	51,422		12,641		Advances due from unconsolidated affiliate	53,500		51,364
(Decrease) increase in	(Decrease) increase in					(Decrease) increase in
Accounts payable	Accounts payable	3,006		8,615		Accounts payable	(7)		1,525
Accrued liabilities	Accrued liabilities	(9,851)		8,809		Accrued liabilities	(55,734)		(25,721)
Deferred revenue	Deferred revenue	150		(1,370)		Deferred revenue	3,578		195
Total adjustments	Total adjustments	82,588		75,120		Total adjustments	29,031		61,749
Net cash provided by operating activities	Net cash provided by operating activities	$	483,881	$	396,524	Net cash provided by operating activities	$	330,615	$	324,997

Note 2. Investment in Unconsolidated Affiliate

LSV Asset Management

The Company has an investment in LSV Asset Management (LSV), a registered investment advisor that provides investment advisory services primarily to institutions, including pension plans and investment companies. LSV is currently an investment sub-advisor for a limited number of SEI-sponsored investment products. The Company's partnership interest in LSV as of ~~September~~June 30, ~~2021~~2022 was ~~38.7%~~38.6%. The Company accounts for its interest in LSV using the equity method because of its less than 50% ownership. The Company’s interest in the net assets of LSV is reflected in Investment in unconsolidated affiliate on the accompanying Consolidated Balance Sheets and its interest in the earnings of LSV is reflected in Equity in earnings of unconsolidated affiliate on the accompanying Consolidated Statements of Operations.

At ~~September~~June 30, ~~2021,~~2022, the Company’s total investment in LSV was ~~$39,872.~~$46,865. The Company receives partnership distributions from LSV on a quarterly basis. The Company received partnership distributions from LSV of ~~$110,559~~$69,824 and ~~$107,180~~$68,064 in the ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020,~~2021, respectively. As such, the Company considers these distribution payments as returns on investment rather than returns of the Company's original investment in LSV and has therefore classified the associated cash inflows as an operating activity on the Consolidated Statements of Cash Flows.

The Company’s proportionate share in the earnings of LSV was ~~$35,005~~$29,813 and ~~$28,305~~$35,065 during the three months ended ~~September~~June 30, ~~2021~~2022 and ~~2020,~~2021, respectively. During the ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020,~~2021, the Company's proportionate share in the earnings of LSV was ~~$103,420~~$62,272 and ~~$86,488,~~$68,415, respectively.

These tables contain condensed financial information of LSV:


Condensed Statement of Operations	Condensed Statement of Operations	Three Months Ended September 30,				Nine Months Ended September 30,				Condensed Statement of Operations	Three Months Ended June 30,				Six Months Ended June 30,
		2021		2020		2021		2020			2022		2021		2022		2021
Revenues	Revenues	$	115,728	$	94,902	$	342,957	$	289,546	Revenues	$	99,814	$	116,392	$	208,264	$	227,229
Net income	Net income	90,365		70,440		266,805		220,184		Net income	77,193		90,520		160,984		176,440


Condensed Balance Sheets	Condensed Balance Sheets	September 30, 2021		December 31, 2020		Condensed Balance Sheets	June 30, 2022		December 31, 2021
Current assets	Current assets	$	123,325	$	151,515	Current assets	$	118,021	$	171,058
Non-current assets	Non-current assets	4,426		4,296		Non-current assets	5,329		4,792
Total assets	Total assets	$	127,751	$	155,811	Total assets	$	123,350	$	175,850

Current liabilities	Current liabilities	$	69,349	$	77,077	Current liabilities	$	53,683	$	82,858
Non-current liabilities	Non-current liabilities	4,058		4,620		Non-current liabilities	3,465		3,863
Partners’ capital	Partners’ capital	54,344		74,114		Partners’ capital	66,202		89,129
Total liabilities and partners’ capital	Total liabilities and partners’ capital	$	127,751	$	155,811	Total liabilities and partners’ capital	$	123,350	$	175,850

On April 1, ~~2021,~~2022, LSV provided an interest in the partnership to select key employees which reduced the ownership percentage of each existing partner on a pro-rata basis. As a result, the Company's total partnership interest in LSV was reduced slightly to approximately ~~38.7%~~38.6% from approximately ~~38.8%~~38.7%.

Note 3. Composition of Certain Financial Statement Captions

Receivables

Receivables on the accompanying Consolidated Balance Sheets consist of:


		September 30, 2021		December 31, 2020			June 30, 2022		December 31, 2021
Trade receivables	Trade receivables	$	112,572	$	99,106	Trade receivables	$	107,853	$	111,209
Fees earned, not billed	Fees earned, not billed	313,883		262,167		Fees earned, not billed	337,445		315,255
Other receivables	Other receivables	18,401		25,046		Other receivables	23,556		16,747
		444,856		386,319			468,854		443,211
Less: Allowance for doubtful accounts	Less: Allowance for doubtful accounts	(2,669)		(1,100)		Less: Allowance for doubtful accounts	(1,952)		(1,602)
		$	442,187	$	385,219		$	466,902	$	441,609

Fees earned, not billed represents receivables from contracts with customers earned but unbilled and results from timing differences between services provided and contractual billing schedules. These billing schedules generally provide for fees to be billed on a quarterly basis. In addition, certain fees earned from investment operations services are calculated based on assets under administration that have an extended valuation process. Billings to these clients occur once the asset valuation processes are completed.

Receivables from investment products on the accompanying Consolidated Balance Sheets primarily represent fees receivable for distribution, investment advisory, and administration services to various regulated investment companies and other investment products sponsored by SEI.

Property and Equipment

Property and Equipment on the accompanying Consolidated Balance Sheets consists of:


		September 30, 2021		December 31, 2020			June 30, 2022		December 31, 2021
Buildings	Buildings	$	209,315	$	206,151	Buildings	$	209,907	$	209,766
Equipment	Equipment	150,945		141,820		Equipment	167,591		153,158
Land	Land	24,651		24,179		Land	26,411		24,651
Purchased software	Purchased software	156,327		147,838		Purchased software	156,569		156,387
Furniture and fixtures	Furniture and fixtures	21,196		21,439		Furniture and fixtures	21,323		21,254
Leasehold improvements	Leasehold improvements	21,838		21,604		Leasehold improvements	20,617		21,946
Construction in progress	Construction in progress	209		4,660		Construction in progress	576		955
		584,481		567,691			602,994		588,117
Less: Accumulated depreciation	Less: Accumulated depreciation	(400,679)		(378,639)		Less: Accumulated depreciation	(424,048)		(409,248)
Property and Equipment, net	Property and Equipment, net	$	183,802	$	189,052	Property and Equipment, net	$	178,946	$	178,869

The Company recognized ~~$25,141~~$16,384 and ~~$23,058~~$16,733 in depreciation expense related to property and equipment for the ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020,~~2021, respectively.

Deferred Contract Costs

Deferred contract costs, which primarily consist of deferred sales commissions, were ~~$34,263~~$35,353 and ~~$33,781~~$36,236 as of ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020,~~2021, respectively. The Company deferred expenses related to contract costs of ~~$2,932~~$1,543 and ~~$2,521~~$1,674 during the three months ended ~~September~~June 30, ~~2021~~2022 and ~~2020,~~2021, respectively. During the ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020,~~2021, the Company deferred expenses related to contract costs of ~~$6,978~~$5,062 and ~~$7,270,~~$4,046, respectively. Amortization expense related to deferred contract costs were ~~$6,496~~$5,945 and ~~$4,428~~$4,475 during the ~~nine~~six months ended ~~September~~June 30, 2022 and 2021, ~~and 2020, respectively, and are~~respectively. Amortization expense during the six months ended June 30, 2022 includes $1,784 in expense accelerated as a result of the termination of a contractual agreement with a significant client (See Note 13). Amortization expense related to deferred contract costs is included in Compensation, benefits and other personnel on the accompanying Consolidated Statements of Operations. There was no impairment loss in relation to deferred contract costs during the ~~nine~~six months ended ~~September~~June 30, ~~2021.~~2022.

Accrued Liabilities

Accrued liabilities on the accompanying Consolidated Balance Sheets consist of:


		September 30, 2021		December 31, 2020			June 30, 2022		December 31, 2021
Accrued employee compensation	Accrued employee compensation	$	86,924	$	95,656	Accrued employee compensation	$	52,418	$	107,933
Accrued employee benefits and other personnel	Accrued employee benefits and other personnel	11,743		18,770		Accrued employee benefits and other personnel	9,749		13,951
Accrued consulting, outsourcing and professional fees	Accrued consulting, outsourcing and professional fees	35,945		31,907		Accrued consulting, outsourcing and professional fees	47,067		36,411
Accrued sub-advisory, distribution and other asset management fees	Accrued sub-advisory, distribution and other asset management fees	57,560		49,924		Accrued sub-advisory, distribution and other asset management fees	58,400		58,661

Accrued dividend payable	Accrued dividend payable	—		53,127		Accrued dividend payable	—		55,452

Other accrued liabilities	Other accrued liabilities	38,871		50,461		Other accrued liabilities	51,118		51,974
Total accrued liabilities	Total accrued liabilities	$	231,043	$	299,845	Total accrued liabilities	$	218,752	$	324,382

Note 4. Fair Value Measurements

The fair value of the Company’s financial assets and liabilities, except for the Company's investment funds sponsored by LSV, is determined in accordance with the fair value hierarchy. The fair value of the Company’s Level 1 financial assets consist mainly of investments in open-ended mutual funds that are quoted daily. Level 2 financial assets consist of GNMA mortgage-backed securities held by the Company's wholly-owned limited purpose federal thrift subsidiary, SEI Private Trust Company (SPTC), Federal Home Loan Bank (FHLB) and other U.S. government agency short-term notes held by SIDCO. The financial assets held by SIDCO were purchased as part of a cash management program requiring only short term, top-tier investment grade government and corporate securities. The financial assets held by SPTC are debt securities issued by GNMA and are backed by the full faith and credit of the U.S. government. These securities were purchased for the sole purpose of satisfying applicable regulatory requirements and have maturity dates which range from 2023 to 2041.

The fair value of the Company's investment funds sponsored by LSV is measured using the net asset value per share (NAV) as a practical expedient. The NAVs of the funds are calculated by the funds' independent custodian and are derived

from the fair values of the underlying investments as of the reporting date. The funds allow for investor redemptions at the end of each calendar month. This investment has not been classified in the fair value hierarchy but is presented in the tables below to permit reconciliation to the amounts presented on the accompanying Consolidated Balance Sheets.

The valuation of the Company's Level 2 financial assets held by SIDCO and SPTC are based upon securities pricing policies and procedures utilized by third-party pricing vendors.

The pricing policies and procedures applied for our Level 1 and Level 2 financial assets during the ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 were consistent with those as described in the Company's Annual Report on Form 10-K at December 31, ~~2020.~~2021. The Company had no Level 3 financial assets at ~~September~~June 30, ~~2021~~2022 or December 31, ~~2020~~2021 that were required to be measured at fair value on a recurring basis. Level 3 financial liabilities at ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020~~2021 consist entirely of the estimated contingent consideration resulting from an acquisition (See Note 12). The fair value of the contingent consideration was determined using a Monte-Carlo simulation model. Key assumptions for the Monte-Carlo simulation model include expected revenues, expected volatility, risk-free rate and other factors. There were no transfers of financial assets between levels within the fair value hierarchy during the ~~nine~~six months ended ~~September~~June 30, ~~2021.~~2022.

The fair value of certain financial assets of the Company was determined using the following inputs:


				Fair Value Measurements at the End of the Reporting Period Using							Fair Value Measurements at the End of the Reporting Period Using
Assets	Assets	September 30, 2021		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Assets	June 30, 2022		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)
Equity securities	Equity securities	$	12,241	$	12,241	$	—	Equity securities	$	10,812	$	10,812	$	—
Available-for-sale debt securities	Available-for-sale debt securities	127,838		—		127,838		Available-for-sale debt securities	110,870		—		110,870
Fixed-income securities owned	Fixed-income securities owned	31,770		—		31,770		Fixed-income securities owned	31,171		—		31,171
Investment funds sponsored by LSV (1)	Investment funds sponsored by LSV (1)	6,893						Investment funds sponsored by LSV (1)	6,000
		$	178,742	$	12,241	$	159,608		$	158,853	$	10,812	$	142,041


				Fair Value Measurements at the End of the Reporting Period Using							Fair Value Measurements at the End of the Reporting Period Using
Assets	Assets	December 31, 2020		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Assets	December 31, 2021		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)
Equity securities	Equity securities	$	12,142	$	12,142	$	—	Equity securities	$	12,406	$	12,406	$	—
Available-for-sale debt securities	Available-for-sale debt securities	93,277		—		93,277		Available-for-sale debt securities	117,135		—		117,135
Fixed-income securities owned	Fixed-income securities owned	34,064		—		34,064		Fixed-income securities owned	28,267		—		28,267
Investment funds sponsored by LSV (1)	Investment funds sponsored by LSV (1)	6,166						Investment funds sponsored by LSV (1)	6,916
		$	145,649	$	12,142	$	127,341		$	164,724	$	12,406	$	145,402

(1) The fair value amounts presented in the tables above are intended to permit reconciliation of the fair value hierarchy to the amounts presented on the accompanying Consolidated Balance Sheets (See Note 5).

Note 5. Marketable Securities

Marketable securities include investments in money market funds and commercial paper classified as cash equivalents, available-for-sale debt securities, investments in SEI-sponsored and non-SEI-sponsored mutual funds, equities, investments in funds sponsored by LSV and securities owned by SIDCO.

Cash Equivalents

Investments in money market funds and commercial paper classified as cash equivalents had a fair value of ~~$453,628~~$458,521 and ~~$462,624~~$422,838 at ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020,~~2021, respectively. There were no material unrealized or realized gains or losses from these investments during the ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020.~~2021. Investments in money market funds and commercial paper are Level 1 assets.

Available for Sale and Equity Securities

Available For Sale and Equity Securities on the accompanying Consolidated Balance Sheets consist of:


		At September 30, 2021									At June 30, 2022
		Cost Amount		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value			Cost Amount		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value
Available-for-sale debt securities	Available-for-sale debt securities	$	126,964	$	874	$	—	$	127,838	Available-for-sale debt securities	$	119,702	$	—	$	(8,832)	$	110,870
SEI-sponsored mutual funds	SEI-sponsored mutual funds	6,692		380		—		7,072		SEI-sponsored mutual funds	6,271		—		(249)		6,022
Equities and other mutual funds	Equities and other mutual funds	4,932		237		—		5,169		Equities and other mutual funds	4,870		—		(80)		4,790
		$	138,588	$	1,491	$	—	$	140,079		$	130,843	$	—	$	(9,161)	$	121,682


		At December 31, 2020									At December 31, 2021
		Cost Amount		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value			Cost Amount		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value
Available-for-sale debt securities	Available-for-sale debt securities	$	91,262	$	2,015	$	—	$	93,277	Available-for-sale debt securities	$	117,215	$	—	$	(80)	$	117,135
SEI-sponsored mutual funds	SEI-sponsored mutual funds	6,866		382		—		7,248		SEI-sponsored mutual funds	6,748		463		—		7,211
Equities and other mutual funds	Equities and other mutual funds	4,421		473		—		4,894		Equities and other mutual funds	4,935		260		—		5,195
		$	102,549	$	2,870	$	—	$	105,419		$	128,898	$	723	$	(80)	$	129,541

Net unrealized ~~gains~~losses at ~~September~~June 30, 2022 of available-for-sale debt securities were $6,801 (net of income tax benefit of $2,031). Net unrealized losses at December 31, 2021 of available-for-sale debt securities were ~~$673~~$62 (net of income tax ~~expense~~benefit of ~~$201)~~$18). ~~Net~~These unrealized ~~gains~~losses are associated with the Company’s investments in mortgage-backed securities issued by GNMA and were caused by interest rate increases (See Note 4). The contractual cash flows of these securities are guaranteed by an agency of the U.S. government. Accordingly, it is expected that the securities would not be settled at ~~December 31, 2020~~a price less than the amortized cost bases of ~~available-for-sale debt securities were $1,551 (net~~the Company's investments. The Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of ~~income tax expense of $464).~~their amortized cost bases. These net unrealized ~~gains~~losses are reported as a separate component of Accumulated other comprehensive loss on the accompanying Consolidated Balance Sheets.

There were gross realized losses of ~~$861~~$414 and ~~$582~~$556 from available-for-sale debt securities during the ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020,~~2021, respectively. There were no gross realized gains from available-for-sale debt securities during the ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020.~~2021. Realized losses from available-for-sale debt securities, including amounts reclassified from accumulated comprehensive loss, are reflected in Net (loss) gain from investments on the accompanying Consolidated Statements of Operations.

There were gross realized gains of ~~$714~~$7 and gross realized losses of ~~$65~~$658 from mutual funds and equities during the ~~nine~~six months ended ~~September~~June 30, ~~2021.~~2022. There were gross realized gains of ~~$254~~$613 and gross realized losses of ~~$250~~$59 from mutual funds and equities during the ~~nine~~six months ended ~~September~~June 30, ~~2020.~~2021. Gains and losses from mutual funds and equities are reflected in Net (loss) gain from investments on the accompanying Consolidated Statements of Operations.

Investments in Affiliated Funds

The Company has an investment in funds sponsored by LSV. The Company records this investment on the accompanying Consolidated Balance Sheets at fair value. Unrealized gains and losses from the change in fair value of these funds are recognized in Net (loss) gain from investments on the accompanying Consolidated Statements of Operations.

The funds had a fair value of ~~$6,893~~$6,000 and ~~$6,166~~$6,916 at ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020,~~2021, respectively. The Company recognized unrealized losses of ~~$39~~$1,270 and unrealized gains of ~~$458~~$309 during the three months ended ~~September~~June 30, ~~2021~~2022 and ~~2020,~~2021, respectively, from the change in fair value of the funds. The Company recognized unrealized losses of $916 and unrealized gains of ~~$727 and unrealized losses of $781~~$766 during the ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020,~~2021, respectively, from the change in fair value of the funds.

Securities Owned

The Company’s broker-dealer subsidiary, SIDCO, has investments in U.S. government agency securities with maturity dates less than one year. These investments are reflected as Securities owned on the accompanying Consolidated Balance Sheets. Due to specialized accounting practices applicable to investments by broker-dealers, the securities are reported at fair value and changes in fair value are recorded in current period earnings. The securities had a fair value of ~~$31,770~~$31,171 and ~~$34,064~~$28,267 at ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020,~~2021, respectively. There were no material net gains or losses related to the securities during the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020.~~2021.

Note 6. Line of Credit

~~On April 23, 2021 (the Closing Date), the~~The Company ~~entered into~~has a ~~new~~ five-year $325,000 Credit Agreement (the Credit Facility) with Wells Fargo Bank, N.A., and a syndicate of other lenders. ~~The Credit Facility became available on the Closing Date and replaced the former credit facility agreement (the 2016 Credit Facility).~~ The Credit Facility is scheduled to expire in April 2026, at which time any aggregate principal amount of loans outstanding becomes payable in full. Any borrowings made under the Credit Facility will accrue interest at rates that, at the Company's option, are based on a base rate (the Base Rate) plus a premium that can range from 0.25% to 1.00% or the London InterBank Offered Rate (LIBOR) plus a premium that can range from 1.25% to 2.00% depending on the Company’s Leverage Ratio (a ratio of consolidated indebtedness to consolidated EBITDA for the 4 preceding fiscal quarters, all as defined in the related agreement). The Base Rate is defined as the highest of a) the Federal Funds Rate, as published by the Federal Reserve Bank of New York, plus 0.50%, b) the prime commercial lending rate of Wells Fargo, c) the applicable LIBOR plus 1.00%, or d) 0%. The Credit Facility includes fallback language clearly defining an alternative reference rate which provides for specified replacement rates upon a LIBOR cessation event. At the time of a LIBOR cessation event, the replacement rate, the Secured Overnight Financing Rate (SOFR), self-executes without the need for negotiations or a formal amendment process.

The Company also pays quarterly commitment fees based on the unused portion of the Credit Facility. The quarterly fees for the Credit Facility can range from 0.15% of the amount of the unused portion to 0.30%, depending on the Company’s Leverage Ratio. Certain wholly-owned subsidiaries of the Company have guaranteed the obligations of the Company under the agreement. The aggregate amount of the Credit Facility may be increased by an additional $100,000 under certain conditions set forth in the agreement. The Company may issue up to $15,000 in letters of credit under the terms of the Credit Facility. The Company pays a periodic commission fee of 1.25% plus an issuance fee of 0.200% of the aggregate face amount of the outstanding letters of credit issued under the Credit Facility.

The Credit Facility contains covenants with restrictions on the ability of the Company to do transactions with affiliates other than wholly-owned subsidiaries or to incur liens or certain types of indebtedness as defined in the agreement. In the event of a default under the Credit Facility, the Company would also be restricted from paying dividends on, or repurchasing, its common stock without the approval of the lenders. Upon the occurrence of certain financial or economic events, significant corporate events, or certain other events of default constituting an event of default under the Credit Facility, all loans outstanding may be declared immediately due and payable and all commitments under the agreement may be terminated.

In November 2021, the Company borrowed $40,000 under the Credit Facility for the funding of an acquisition (See Note 12). During the six months ended June 30, 2022, the Company made principal payments of $40,000 to fully repay the outstanding balance of the Credit Facility.

As of ~~September 30, 2021,~~July 15, 2022, the Company had outstanding letters of credit of ~~$5,808~~$6,003 under the Credit Facility. These letters of credit were issued primarily for the expansion of the Company's headquarters and are scheduled to expire during ~~2021.~~2022. The amount of the Credit Facility that is available for general corporate purposes as of ~~September 30, 2021~~July 15, 2022 was ~~$319,192.~~$318,997.

The Company was in compliance with all covenants of the ~~credit facilities~~Credit Facility during the ~~nine~~six months ended ~~September~~June 30, ~~2021.~~2022.

Note 7. Shareholders’ Equity

Stock-Based Compensation

The Company has only non-qualified stock options and restricted stock units outstanding under its equity compensation plans. All outstanding stock options have performance-based vesting provisions specific to each option grant that tie the vesting of the applicable stock options to the Company’s financial performance. The Company’s stock options vest at a rate of 50% when a specified financial vesting target is achieved, and the remaining 50% when a second, higher specified financial vesting target is achieved. Options vest as a result of achievement of the financial vesting targets. Options granted in December 2017 and thereafter include a service condition which requires a minimum two or four year waiting period from the grant date along with the attainment of the applicable financial vesting target. The targets are measured annually on December 31. The amount of stock-based compensation expense recognized in the period is based upon management’s

estimate of when the financial vesting targets may be achieved. Any change in management’s estimate could result in the remaining amount of stock-based compensation expense to be accelerated, spread out over a longer period, or reversed. This may cause volatility in the recognition of stock-based compensation expense in future periods and could materially affect the Company’s earnings. The Company's restricted stock units outstanding vest ratably over four years commencing March 31, 2022.

The Company recognized stock-based compensation expense in its Consolidated Financial Statements in the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020,~~2021, respectively, as follows:


		Three Months Ended September 30,				Nine Months Ended September 30,					Three Months Ended June 30,				Six Months Ended June 30,
		2021		2020		2021		2020			2022		2021		2022		2021
Stock-based compensation expense	Stock-based compensation expense	$	11,318	$	6,467	$	31,173	$	20,458	Stock-based compensation expense	$	10,007	$	10,103	$	20,573	$	19,855
Less: Deferred tax benefit	Less: Deferred tax benefit	(1,857)		(1,229)		(5,615)		(3,932)		Less: Deferred tax benefit	(1,839)		(1,904)		(3,934)		(3,758)
Stock-based compensation expense, net of tax	Stock-based compensation expense, net of tax	$	9,461	$	5,238	$	25,558	$	16,526	Stock-based compensation expense, net of tax	$	8,168	$	8,199	$	16,639	$	16,097

The Company revised its ~~estimates~~estimate of when some vesting targets are expected to be ~~achieved during 2021 and 2020. The~~achieved. This change in management's estimate ~~during the nine months ended September 30, 2021~~ resulted in ~~an increase~~a decrease of ~~$3,209~~$663 in stock-based compensation ~~expense. The change in estimate~~expense during the ~~nine~~six months ended ~~September~~June 30, ~~2020 did not result in a material change to the Company's stock-based compensation expense.~~2022.

As of ~~September~~June 30, ~~2021,~~2022, there was approximately ~~$72,399~~$82,733 of unrecognized compensation cost remaining related to unvested employee stock options and restricted stock units that management expects will vest and is being amortized.

The Company issues new common shares associated with the exercise of stock options. The total intrinsic value of options exercised during the ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 was ~~$30,496.~~$12,806. The total options exercisable as of ~~September~~June 30, ~~2021~~2022 had an intrinsic value of ~~$104,146.~~$61,515. The total intrinsic value for options exercisable is calculated as the difference between the market value of the Company’s common stock as of ~~September~~June 30, ~~2021~~2022 and the weighted average exercise price of the options. The market value of the Company’s common stock as of ~~September~~June 30, ~~2021~~2022 was ~~$59.30~~$54.02 as reported by the Nasdaq Stock Market, LLC. The weighted average exercise price of the options exercisable as of ~~September~~June 30, ~~2021~~2022 was ~~$40.63.~~$49.40. Total options that were outstanding as of ~~September~~June 30, ~~2021~~2022 were ~~16,925,000~~18,072,000. Total options that were exercisable as of ~~September~~June 30, ~~2021~~2022 were ~~5,578,000~~7,911,000.

The Company initiated a voluntary separation program to long-tenured employees in June 2022. Certain allowances provided to the participating employees in the program are expected to result in modifications to the Company's equity compensation plans related to the vesting of stock options during the remainder of 2022 and the period in which the employee may exercise vested stock options after the termination of employment (See Note 14).

Common Stock Buyback

The Company’s Board of Directors, under multiple authorizations, has authorized the repurchase of common stock on the open market or through private transactions. The Company purchased ~~5,218,000~~3,683,000 shares at a total cost of ~~$316,053~~$209,383 during the ~~nine~~six months ended ~~September~~June 30, ~~2021,~~2022, which reduced the total shares outstanding of common stock. The cost of stock purchases during the period includes the cost of certain transactions that settled in the following quarter. On June 1, 2022, the Company's Board of Directors approved an increase in the stock repurchase program by an additional $200,000. As of ~~September~~June 30, ~~2021,~~2022, the Company had approximately ~~$126,775~~$221,910 of authorization remaining for the purchase of common stock under the program.

The Company immediately retires its common stock when purchased. Upon retirement, the Company reduces Capital in excess of par value for the average capital per share outstanding and the remainder is charged against Retained earnings. If the Company reduces its Retained earnings to zero, any subsequent purchases of common stock will be charged entirely to Capital in excess of par value.

Cash Dividend

On June ~~2, 2021,~~1, 2022, the Board of Directors declared a cash dividend of ~~$0.37~~$0.40 per share on the Company's common stock, which was paid on June 22, ~~2021,~~2022, to shareholders of record on June ~~14, 2021.~~13, 2022. Cash dividends declared during the ~~nine~~six months ended ~~September~~June 30, 2022 and 2021 were $54,378 and ~~2020 were~~ $52,389, ~~and $51,462,~~ respectively.

Note 8. Accumulated Other Comprehensive Loss

The components of Accumulated other comprehensive loss, net of tax, are as follows:


		Foreign Currency Translation Adjustments		Unrealized Gains (Losses) on Investments		Accumulated Other Comprehensive Loss			Foreign Currency Translation Adjustments		Unrealized Gains (Losses) on Investments		Accumulated Other Comprehensive Loss
Balance, January 1, 2021		$	(18,349)	$	1,551	$	(16,798)
Balance, January 1, 2022								Balance, January 1, 2022	$	(19,781)	$	(62)	$	(19,843)

Other comprehensive loss before reclassifications	Other comprehensive loss before reclassifications	(2,867)		(1,548)		(4,415)		Other comprehensive loss before reclassifications	(19,181)		(7,057)		(26,238)
Amounts reclassified from accumulated other comprehensive loss	Amounts reclassified from accumulated other comprehensive loss	—		670		670		Amounts reclassified from accumulated other comprehensive loss	—		318		318
Net current-period other comprehensive loss	Net current-period other comprehensive loss	(2,867)		(878)		(3,745)		Net current-period other comprehensive loss	(19,181)		(6,739)		(25,920)

Balance, September 30, 2021		$	(21,216)	$	673	$	(20,543)
Balance, June 30, 2022								Balance, June 30, 2022	$	(38,962)	$	(6,801)	$	(45,763)

Note 9. Business Segment Information

The Company’s reportable business segments are:

Private Banks – Provides outsourced investment processing and investment management platforms to banks and trust institutions, independent wealth advisers and financial advisors worldwide;

Investment Advisors – Provides investment management and investment processing platforms to affluent investors through a network of independent registered investment advisors, financial planners and other investment professionals in the United States;

Institutional Investors – Provides OCIO solutions, including investment management and administrative outsourcing platforms to retirement plan sponsors, healthcare systems, higher education and other not-for-profit organizations worldwide;

Investment Managers – Provides investment operations outsourcing platforms to fund companies, banking institutions, traditional and non-traditional investment managers worldwide and family offices in the United States; and

Investments in New Businesses – Focuses on providing investment management solutions to ultra-high-net-worth families residing in the United States; developing network and data protection services; modularizing larger technology platforms into stand-alone components; entering new markets; and conducting other research and development activities.

The information in the following tables is derived from internal financial reporting used for corporate management purposes. There are no inter-segment revenues for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020. Management evaluates Company assets on a consolidated basis during interim periods.~~2021. Assets are not allocated to segments for internal reporting purposes. The accounting policies of the reportable business segments are the same as those described in Note 1 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, ~~2020.~~2021.

The following tables highlight certain financial information about each of the business segments for the three months ended ~~September~~June 30, ~~2021~~2022 and ~~2020:~~2021:


		Private Banks		Investment Advisors		Institutional Investors		Investment Managers		Investments In New Businesses		Total			Private Banks		Investment Advisors		Institutional Investors		Investment Managers		Investments In New Businesses		Total
		For the Three Months Ended September 30, 2021													For the Three Months Ended June 30, 2022
Revenues	Revenues	$	123,018	$	124,768	$	85,759	$	147,412	$	4,365	$	485,322	Revenues	$	124,184	$	113,194	$	83,483	$	155,926	$	4,883	$	481,670
Expenses	Expenses	116,679		62,107		41,643		89,594		12,820		322,843		Expenses	121,060		63,375		43,925		100,807		12,844		342,011
Operating profit (loss)	Operating profit (loss)	$	6,339	$	62,661	$	44,116	$	57,818	$	(8,455)	$	162,479	Operating profit (loss)	$	3,124	$	49,819	$	39,558	$	55,119	$	(7,961)	$	139,659


		Private Banks		Investment Advisors		Institutional Investors		Investment Managers		Investments In New Businesses		Total			Private Banks		Investment Advisors		Institutional Investors		Investment Managers		Investments In New Businesses		Total
		For the Three Months Ended September 30, 2020													For the Three Months Ended June 30, 2021
Revenues	Revenues	$	114,792	$	103,189	$	79,583	$	123,846	$	3,517	$	424,927	Revenues	$	123,676	$	119,396	$	85,699	$	142,808	$	4,072	$	475,651
Expenses	Expenses	113,066		51,519		37,812		79,838		13,315		295,550		Expenses	117,654		59,133		41,895		84,995		13,631		317,308
Operating profit (loss)	Operating profit (loss)	$	1,726	$	51,670	$	41,771	$	44,008	$	(9,798)	$	129,377	Operating profit (loss)	$	6,022	$	60,263	$	43,804	$	57,813	$	(9,559)	$	158,343

A reconciliation of the total operating profit reported for the business segments to income from operations in the Consolidated Statements of Operations for the three months ended ~~September~~June 30, ~~2021~~2022 and ~~2020~~2021 is as follows:


		2021		2020			2022		2021
Total operating profit from segments	Total operating profit from segments	$	162,479	$	129,377	Total operating profit from segments	$	139,659	$	158,343
Corporate overhead expenses	Corporate overhead expenses	(21,354)		(18,040)		Corporate overhead expenses	(23,799)		(22,322)
Income from operations	Income from operations	$	141,125	$	111,337	Income from operations	$	115,860	$	136,021

The following tables provide additional information for the three months ended ~~September~~June 30, ~~2021~~2022 and ~~2020~~2021 pertaining to the business segments:


		Capital Expenditures (1)				Depreciation					Capital Expenditures (1)				Depreciation
		2021		2020		2021		2020			2022		2021		2022		2021
Private Banks	Private Banks	$	6,173	$	7,652	$	4,980	$	4,222	Private Banks	$	8,541	$	8,594	$	5,554	$	4,178
Investment Advisors	Investment Advisors	2,896		3,234		499		1,255		Investment Advisors	3,423		3,580		469		1,417
Institutional Investors	Institutional Investors	720		698		271		298		Institutional Investors	1,028		884		285		353
Investment Managers	Investment Managers	3,722		2,776		2,428		1,818		Investment Managers	4,113		3,373		1,755		2,027
Investments in New Businesses	Investments in New Businesses	336		144		60		97		Investments in New Businesses	208		313		44		100
Total from business segments	Total from business segments	$	13,847	$	14,504	$	8,238	$	7,690	Total from business segments	$	17,313	$	16,744	$	8,107	$	8,075
Corporate overhead	Corporate overhead	419		274		170		255		Corporate overhead	445		418		179		349
		$	14,266	$	14,778	$	8,408	$	7,945		$	17,758	$	17,162	$	8,286	$	8,424

(1) Capital expenditures include additions to property and equipment and capitalized software.

Amortization
2021 2020
Private Banks $ 8,526 $ 7,505
Investment Advisors 3,014 2,683
Institutional Investors 427 426
Investment Managers 2,451 2,343
Investments in New Businesses 185 186
Total from business segments $ 14,603 $ 13,143
Corporate overhead 71 57
$ 14,674 $ 13,200

~~The following tables highlight certain financial information about each of business segment for the nine months ended September 30, 2021 and 2020:~~


	Amortization
	2022		2021
Private Banks	$	8,261	$	8,633
Investment Advisors	3,158		2,909
Institutional Investors	2,257		427
Investment Managers	2,577		2,444
Investments in New Businesses	185		185
Total from business segments	$	16,438	$	14,598
Corporate overhead	70		125
	$	16,508	$	14,723

Private
Banks Investment
Advisors Institutional
Investors Investment
Managers Investments
In New
Businesses Total
For the Nine Months Ended September 30, 2021
Revenues $ 364,302 $ 357,458 $ 255,957 $ 426,639 $ 12,303 $ 1,416,659
Expenses 345,057 176,267 122,696 257,609 39,855 941,484
Operating profit (loss) $ 19,245 $ 181,191 $ 133,261 $ 169,030 $ (27,552) $ 475,175
The following tables highlight certain financial information about each of business segment for the six months ended June 30, 2022 and 2021:


		Private Banks		Investment Advisors		Institutional Investors		Investment Managers		Investments In New Businesses		Total			Private Banks		Investment Advisors		Institutional Investors		Investment Managers		Investments In New Businesses		Total
		For the Nine Months Ended September 30, 2020													For the Six Months Ended June 30, 2022
Revenues	Revenues	$	335,739	$	299,218	$	235,309	$	359,815	$	10,254	$	1,240,335	Revenues	$	337,732	$	232,424	$	170,322	$	312,827	$	9,808	$	1,063,113
Expenses	Expenses	331,442		154,100		113,016		228,795		37,691		865,044		Expenses	243,015		127,895		89,283		199,644		24,794		684,631
Operating profit (loss)	Operating profit (loss)	$	4,297	$	145,118	$	122,293	$	131,020	$	(27,437)	$	375,291	Operating profit (loss)	$	94,717	$	104,529	$	81,039	$	113,183	$	(14,986)	$	378,482



	Private Banks		Investment Advisors		Institutional Investors		Investment Managers		Investments In New Businesses		Total
	For the Six Months Ended June 30, 2021
Revenues	$	241,284	$	232,690	$	170,198	$	279,227	$	7,938	$	931,337
Expenses	228,378		114,160		81,053		168,015		27,035		618,641
Operating profit (loss)	$	12,906	$	118,530	$	89,145	$	111,212	$	(19,097)	$	312,696

A reconciliation of the total operating profit reported for the business segments to income from operations in the Consolidated Statements of Operations for the ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020:~~2021:


		2021		2020			2022		2021
Total operating profit from segments	Total operating profit from segments	$	475,175	$	375,291	Total operating profit from segments	$	378,482	$	312,696
Corporate overhead expenses	Corporate overhead expenses	(65,192)		(53,414)		Corporate overhead expenses	(47,823)		(43,838)
Income from operations	Income from operations	$	409,983	$	321,877	Income from operations	$	330,659	$	268,858

The following tables provide additional information for the ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020:~~2021:


		Capital Expenditures (1)				Depreciation					Capital Expenditures (1)				Depreciation
		2021		2020		2021		2020			2022		2021		2022		2021
Private Banks	Private Banks	$	20,596	$	24,211	$	13,290	$	12,069	Private Banks	$	15,763	$	14,423	$	10,660	$	8,310
Investment Advisors	Investment Advisors	8,784		12,427		3,205		3,578		Investment Advisors	6,450		5,888		925		2,706
Institutional Investors	Institutional Investors	2,115		3,085		982		901		Institutional Investors	1,977		1,395		574		711
Investment Managers	Investment Managers	8,726		19,067		6,508		5,499		Investment Managers	8,137		5,004		3,775		4,080
Investments in New Businesses	Investments in New Businesses	788		894		306		243		Investments in New Businesses	413		452		88		246
Total from business segments	Total from business segments	$	41,009	$	59,684	$	24,291	$	22,290	Total from business segments	$	32,740	$	27,162	$	16,022	$	16,053
Corporate Overhead	Corporate Overhead	997		2,069		850		768		Corporate Overhead	890		578		362		680
		$	42,006	$	61,753	$	25,141	$	23,058		$	33,630	$	27,740	$	16,384	$	16,733

(1) Capital expenditures include additions to property and equipment and capitalized software.


		Amortization					Amortization
		2021		2020			2022		2021
Private Banks	Private Banks	$	25,735	$	22,390	Private Banks	$	16,800	$	17,209
Investment Advisors	Investment Advisors	8,550		7,999		Investment Advisors	6,391		5,536
Institutional Investors	Institutional Investors	1,280		1,280		Institutional Investors	4,540		853
Investment Managers	Investment Managers	7,375		7,020		Investment Managers	5,153		4,924
Investments in New Businesses	Investments in New Businesses	555		556		Investments in New Businesses	370		370
Total from business segments	Total from business segments	$	43,495	$	39,245	Total from business segments	$	33,254	$	28,892
Corporate Overhead	Corporate Overhead	254		172		Corporate Overhead	141		183
		$	43,749	$	39,417		$	33,395	$	29,075

Note 10. Income Taxes

The gross liability for unrecognized tax benefits at ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020~~2021 was ~~$16,721~~$16,861 and ~~$15,911,~~$14,887, respectively, exclusive of interest and penalties, of which ~~$16,532~~$16,358 and ~~$15,761~~$14,382 would affect the effective tax rate if the Company were to recognize the tax benefit.

The Company classifies interest and penalties on unrecognized tax benefits as income tax expense. As of ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020,~~2021, the combined amount of accrued interest and penalties related to tax positions taken on tax returns was ~~$1,835~~$1,642 and ~~$2,105,~~$1,338, respectively.


		September 30, 2021		December 31, 2020			June 30, 2022		December 31, 2021
Gross liability for unrecognized tax benefits, exclusive of interest and penalties	Gross liability for unrecognized tax benefits, exclusive of interest and penalties	$	16,721	$	15,911	Gross liability for unrecognized tax benefits, exclusive of interest and penalties	$	16,861	$	14,887
Interest and penalties on unrecognized benefits	Interest and penalties on unrecognized benefits	1,835		2,105		Interest and penalties on unrecognized benefits	1,642		1,338
Total gross uncertain tax positions	Total gross uncertain tax positions	$	18,556	$	18,016	Total gross uncertain tax positions	$	18,503	$	16,225
Amount included in Current liabilities	Amount included in Current liabilities	$	4,497	$	6,546	Amount included in Current liabilities	$	4,533	$	4,253
Amount included in Other long-term liabilities	Amount included in Other long-term liabilities	14,059		11,470		Amount included in Other long-term liabilities	13,970		11,972
		$	18,556	$	18,016		$	18,503	$	16,225

The effective income tax rate for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020~~2021 differs from the federal income tax statutory rate due to the following:


		Three Months Ended September 30,				Nine Months Ended September 30,					Three Months Ended June 30,				Six Months Ended June 30,
		2021		2020		2021		2020			2022		2021		2022		2021
Statutory rate	Statutory rate	21.0	%	21.0	%	21.0	%	21.0	%	Statutory rate	21.0	%	21.0	%	21.0	%	21.0	%
State taxes, net of federal tax benefit	State taxes, net of federal tax benefit	2.5		3.3		3.0		3.2		State taxes, net of federal tax benefit	2.8		3.2		2.8		3.2
Foreign tax expense and tax rate differential	Foreign tax expense and tax rate differential	(0.1)		(0.2)		(0.1)		(0.1)		Foreign tax expense and tax rate differential	(0.1)		(0.1)		(0.1)		(0.1)
Tax benefit from stock option exercises	Tax benefit from stock option exercises	(0.6)		(0.4)		(1.0)		(1.0)		Tax benefit from stock option exercises	(0.3)		(1.2)		(0.3)		(1.2)
Expiration of the statute of limitations		—		(1.3)		—		(0.5)
State settlements		(0.3)		—		(0.2)		—
Provision-to-return adjustment		(0.5)		(0.4)		(0.2)		(0.1)

Other, net	Other, net	(0.3)		(0.6)		(0.3)		(0.5)		Other, net	(0.3)		(0.6)		(0.3)		(0.4)
		21.7	%	21.4	%	22.2	%	22.0	%		23.1	%	22.3	%	23.1	%	22.5	%

The increase in the Company's effective tax rate for the three and six months ended June 30, 2022 was primarily due to decreased tax benefits related to the lower volume of stock option exercises in 2022 compared to the prior year period. The increase was offset by a decrease in state tax expense.

The Company files income tax returns in the United States on a consolidated basis and in many U.S. state and foreign jurisdictions. The Company is subject to examination of income tax returns by the Internal Revenue Service (IRS) and other domestic and foreign tax authorities. The Company is no longer subject to U.S. federal income tax examination for years before ~~2017~~2018 and is no longer subject to state, local or foreign income tax examinations by authorities for years before 2015.

The Company estimates it will recognize ~~$4,497~~$4,533 of gross unrecognized tax benefits. This amount is expected to be paid within one year or to be removed at the expiration of the statute of limitations and resolution of income tax audits and is netted against the current payable account. These unrecognized tax benefits are related to tax positions taken on certain federal, state, and foreign tax returns. However, the timing of the resolution of income tax examinations is highly uncertain, and the amounts ultimately paid, if any, upon resolution of the issues raised by the taxing authorities may differ materially from the amounts accrued for each year. While it is reasonably possible that some issues under examination could be resolved in the next twelve months, based upon the current facts and circumstances, the Company cannot reasonably estimate the timing of such resolution or the total range of potential changes as it relates to the current unrecognized tax benefits that are recorded as part of the Company’s financial statements.

On July 8, 2022, House Bill 1342 was signed into law in the Commonwealth of Pennsylvania, making significant changes to the corporate income tax rate. The bill reduces the corporate income tax rate from 9.99% to 4.99% with reductions occurring in phases beginning each tax year from January 1, 2023 through January 1, 2031. U.S. GAAP requires companies to recognize the effect of tax law changes in the period of enactment. Management is still evaluating the impact of this rate change but does not expect it to be material.

Note 11. Commitments and Contingencies

In the ordinary course of business, the Company from time to time enters into contracts containing indemnification obligations of the Company. These obligations may require the Company to make payments to another party upon the occurrence of certain events including the failure by the Company to meet its performance obligations under the contract. These contractual indemnification provisions are often standard contractual terms of the nature customarily found in the type of contracts entered into by the Company. In many cases, there are no stated or notional amounts included in the indemnification provisions. There are no amounts reflected on the Consolidated Balance Sheets as of ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020~~2021 related to these indemnifications.

Stanford Trust Company Litigation

~~SEI~~There has been ~~named in 7 lawsuits filed in Louisiana courts; 4 of the cases also name SPTC as a defendant. The underlying allegations in all actions relate~~no material change to the ~~purported role of SPTC in providing back-office services to Stanford Trust~~

Company. The complaints allege that SEI and SPTC participated in some manner in the sale of “certificates of deposit” issued by Stanford International Bank so as to be a “seller” of the certificates of deposit for purposes of primary liability under the Louisiana Securities Law or so as to be secondarily liable under that statute for sales of certificates of deposit made by Stanford Trust Company. NaN of the actions also include claims for violations of the Louisiana Racketeering Act and possibly conspiracy, and a third also asserts claims of negligence, breach of contract, breach of fiduciary duty, violations of the uniform fiduciaries law, negligent misrepresentation, detrimental reliance, violations of the Louisiana Racketeering Act, and conspiracy.

~~The procedural~~ status of the 7 cases varies. The Lillie case, filed originally in the 19th Judicial District Court for the Parish of East Baton Rouge, was brought as a class action. A group of plaintiffs who opted out of the Lillie class filed a complaint against SEI and SPTC in the United States District Court in the Middle District of Louisiana, alleging claims essentially the same as those in Lillie. In both cases, as a result of the proceedings in the Northern District of Texas, only the plaintiffs’ secondary liability claims under Section 714(B) of the Louisiana Securities Law remain. On January 31, 2019, the Judicial Panel on Multidistrict Litigation remanded the Lillie and Ahders proceedingslitigations related to the ~~Middle District of Louisiana.~~

~~With respect to~~Stanford Trust Company matters or the Lillie proceeding, on July 9, 2019, the District Court issued an order granting SEI’s Summary Judgment Motion to dismiss the remaining Section 714(B) claim and denying Plaintiffs’ Motion for Continuance of SEI and SPTC’s Motion for Summary Judgment pursuant to Rule 56(d). On August 27, 2019, Plaintiffs-Appellants filed a Notice of Appeal to the United States Court of Appeals for the Fifth Circuit of the District Court's dismissal of the Lillie matter. On May 14, 2021, the United States Court of Appeals for the Fifth Circuit unanimously affirmed the District Court’s order granting summary judgment in favor SEI and the Insurer Defendants in the Lillie matter.

With respect to the Ahders proceeding, on January 24, 2020, the District Court issued an order granting SEI’s Summary Judgment Motion to dismiss the remaining Section 714(B) claim. On March 17, 2020, Plaintiffs-Appellants filed a Notice of Appeal to the United States Court of Appeals for the Fifth Circuit of the District Court's dismissal of the Ahders matter. On December 3, 2020, the United States Court of Appeals for the Fifth Circuit unanimously affirmed the District Court’s order granting summary judgment in favor of SEI and the Insurer Defendants in the Adhers matter.

Another case, filed in the 23rd Judicial District Court for the Parish of Ascension, also was removed to federal court and transferred by the Judicial Panel on Multidistrict Litigation to the Northern District of Texas and the Stanford MDL. The schedule for responding to that Complaint has not yet been established.

NaN additional cases remain in the Parish of East Baton Rouge. Plaintiffs filed petitions in 2010 and have granted SEI and SPTC indefinite extensions to respond. No material activity has taken place since.

In 2 additional cases, filed in East Baton Rouge and brought by the same counsel who filed the Lillie action, virtually all of the litigation to date has involved motions practice and appellate litigation regarding the existence of federal subject matter jurisdiction under the federal Securities Litigation Uniform Standards Act (SLUSA). The matters were removed to the United States District Court for the Northern District of Texas and consolidated. The court then dismissed the action under SLUSA. The Court of Appeals for the Fifth Circuit reversed that order, and the Supreme Court of the United States affirmed the Court of Appeals judgment on February 26, 2014. The matters were remanded to state court and no material activity has taken place since that date.

While the outcome of this litigation remains uncertain, SEI and SPTC believe that they have valid defenses to plaintiffs' claims and intend to defend the lawsuits vigorously. Because of uncertainty in the make-up of the Lillie class, the specific theories of liability that may survive a motion for summary judgment or other dispositive motion, the relative lack of discovery regarding damages, causation, mitigation and other aspects that may ultimately bear upon loss, the Company is not reasonably able to provide an estimate of loss, if any,Company’s expectations with respect to such matters as previously reported in the ~~foregoing lawsuits.~~Company’s quarterly report on Form 10-Q as filed with the Commission on April 25, 2022.

SS&C Advent ~~Matter~~Litigation

On February 28, 2020, SEI Global Services, Inc. (SGSI), a wholly-owned subsidiary of the Company, filed a complaint under seal in the United States District Court for the Eastern District of Pennsylvania against SS&C Advent (Advent) and SS&C Technologies Holdings, Inc. (SS&C) alleging that SS&C and Advent breached the terms of the contract between the parties and asking the Court to hold SS&C and Advent to their bargained-for obligations (the Advent Matter). In addition to Breach of Contract, the complaint also includes counts for Declaratory Judgment, Tortious Interference with Existing and Prospective Contractual Relations, Violation of the New York General Business Law Section 349, Violations of Section 2 of the Sherman Antitrust Act, Promissory Estoppel and Breach of the Covenant of Good Faith and Fair Dealing. SGSI seeks various forms of relief, including declaratory judgment, specific performance under the contract, and monetary damages, including punitive damages, treble damages and attorney’s fees.

Following various procedural actions, including an amendment of SGSI’s complaint to include additional breach of contract claims, Advent filed a motion to dismiss SGSI’s complaint.

On October 23, 2020, the United States District Court for the Eastern District of Pennsylvania dismissed SEI’s federal antitrust claims and declined to rule on the state law claims on the basis that in the absence of the anti-trust claim, the court had no jurisdiction over the state law claims. SGSI has appealed the dismissal of the federal anti-trust claims to the Third Circuit Court of Appeals. On June 30, 2022, the Third Circuit Court of Appeals ~~which is currently pending.~~issued an order denying SGSI’s appeal of the District Court’s ruling.

Since October 23, 2020, Advent and SGSI have been litigating the remaining breach of contract, breach of the implied duty of good faith and fair dealing, and tortious interference with contract claims in New York State Court. Additionally, SGSI made motions for injunctive relief to insure that Advent provided SGSI with access to the Geneva, Moxy and APX software modules as SGSI believes is required pursuant to the terms of a valid contract. On January 13, 2021, Judge Borrok of the Supreme Court of the State of New York, granted SGSI’s motion for injunctive relief and issued an Order in which he characterized the basis for Advent’s claim for breach of contract as appearing to be “pre-textual” and found that SGSI’s claims for breach of contract would likely succeed on the merits. Judge Borrok granted SGSI’s motion for injunctive relief, on a preliminary basis, and precluded SS&C Advent from:

•Dishonoring their contractual obligations and commitments under the SLSA, including, denying SEI’s licenses, rights, and privileges under the SLSA;

• Failing to provide new license keys for the license keys due to Geneva, Moxy, and APX, and other software products licensed by SEI pursuant to the SLSA (such new license keys to be provided no later than January 15, 2021 at 10 A.M.);

• Denying to SEI any and all access to the Geneva, Moxy, and APX software and related modules as are reasonably necessary to provide access to such software to SEI’s clients; and

• Denying to SEI any and all support, maintenance and technical support services for Geneva, Moxy, and APX.

Pursuant to the Court's injunction order, SS&C Advent provided SEI with the necessary access to the Geneva, Moxy and APX software modules on January 14, 2021. These ~~have been~~were tested, verified and are now running in the SEI production environment.

On January 15, 2021, SS&C Advent appealed Judge Borrok’s order granting SEI’s motion for preliminary injunctive relief to the Appellate Division of the Supreme Court of the State of New York, First Department.The Appellate Division unanimously affirmed the injunction order on June 15, 2021.

On March 1, 2021, SS&C Advent moved to dismiss SGSI’s breach of contract and tortious interference with contract counter claims.These counter-claims were:

1.breach of ~~contract,~~contract;

2.declaratory ~~judgment,~~judgment;

3.tortious interference with existing and prospective contractual ~~relations,~~relations;

4.deceptive trade practices in violation of ~~NY Statutes,~~New York Statutes;

5.breach of the covenant of good faith and fair ~~dealing,~~dealing; and

6.promissory estoppel.

The parties agreed to toll the litigation while endeavoring to resolve their dispute through a settlement mediation process moderated by Judge ~~Borrock.~~Borrok. The parties were unable to reach an agreement as to a settlement of the litigation and reengaged in the litigation process.

On October 5, 2021, Judge ~~Borrock~~Borrok issued an order partially denying and partially granting SS~~&C’s~~&C Advent’s motion to dismiss SGSI’s breach of contract and tortious interference with contract counter claims.

Judge ~~Borrock~~Borrok dismissed the third claim with respect to prospective contractual relationships only, as well as the fourth claim and the sixth claim.The remaining claims ~~that will~~directed to proceed ~~are:~~were:

1.breach of ~~contract,~~contract;

2.declaratory ~~judgment,~~judgment;

3.tortious interference with existing a contractual ~~relations,~~relations; and

4.breach of the covenant of good faith and fair dealing.

~~We expect~~On December 1, 2021, SGSI filed a motion for partial summary judgment in the New York state court action. This motion applies to Count I of SS&C Advent’s complaint (SS&C Advent’s request for a declaratory judgment that its termination of the SGSI license agreements was proper); and Counts I and II of SGSI’s counterclaims (SGSI’s request for a declaratory judgment that SS&C Advent’s termination of the contract was improper because the licenses are perpetual unless SGSI chooses to not renew them or breaches the terms). SS&C Advent filed a cross-motion for summary judgment for a declaration that it was entitled to not renew SGSI's contracts. It also argued that if SGSI prevailed on its breach of contract claims, then its breach of implied duty of good faith and fair dealing claim must be dismissed in turn.

On December 31, 2021, SGSI received the license key for another year of access to the product. This ensures SGSI access to Advent and Moxy through January 31, 2023.

On April 15, 2022, Judge Borrok held a hearing on SGSI’s motion for partial summary judgement and issued an order on the same day granting SGSI's motion in its entirety and denying SS&C Advent's cross motion. Specifically, the Court:

1.Rejected SS&C Advent's argument that the ~~parties will also reengage with respect~~license is not perpetual;

2.Determined that SS&C Advent's purported termination was "pretextual" and breached the parties' contract;

3.Determined that SS&C Advent's attempt to ~~SGSI’s pending appeal in~~not renew breached the ~~Third Circuit~~parties' contracts because "Advent did not have the right not to renew," after dismissing SS&C Advent's argument that it shared the same nonrenewal rights as SGSI as a "false narrative;" and

4.Rejected SS&C Advent's second attempt to dismiss SGSI's breach of ~~the dismissal~~implied duty of ~~SGSI’s anti-trust-claims.~~good faith and fair dealing claim.

SEI continues to believe that it will not have to change providers under the current terms of its contract with SS&C Advent and that the process of litigating its rights under this contract may be a multi-year process. ~~Consequently, SEI does not believe~~

that the Advent Matter will create any consequence to the services SGSI provides to its clients in the near term. SEI believes that it has alternatives available to it that will enable it to continue to provide currently provided services to its clients in all material respects in the unlikely event that there ultimately is a negative outcome in the Advent Matter.

SEI believes SGSI has a strong basis for proving the actions it alleges in the Advent Matter and looks forward to the opportunity to pursue its remaining tort and breach of implied covenant and good faith and fair dealing claims continue to assert all of its rights in tort and under the contract and prove the damages that it has suffered as a consequence of the behavior by SS&C Advent that SGSI alleges. SEI expects the financial impact of litigating the Advent Matter to be immaterial.

Other Matters

The Company and certain of its subsidiaries are party to various other examinations, investigations, actions and claims arising in the normal course of business that the Company does not believe are material. The Company believes that the ultimate resolution of these matters will not have a material adverse effect on the Company's financial position or the manner in which the Company conducts its business. Currently, the Company does not believe the amount of losses associated with these matters can be estimated. While the Company does not believe that the amount of such losses will, when liquidated or estimable, be material to its financial position, the assumptions may be incorrect and any such loss could have a material adverse effect on the Company's results of operations or the manner in which the Company conducts its business in the period(s) during which the underlying matters are resolved.

Note 12. Goodwill and Intangible Assets

OnThe changes in the carrying amount of the Company's goodwill by segment are as follows:


	Institutional Investors		Investment Managers		Investments in New Businesses		Total

Balance, December 31, 2021	$	48,911	$	56,822	$	11,499	$	117,232
Measurement period adjustments	(11)		211		—		200
Foreign currency translation adjustments	—		(27)		—		(27)
Balance, June 30, 2022	$	48,900	$	57,006	$	11,499	$	117,405

In October 2021, the Company acquired all ownership interests of Finomial Corporation (Finomial). The excess purchase price over the estimated value of the net tangible and identifiable intangible assets was allocated to goodwill. The total amount of goodwill from this transaction amounted to $4,036 and is included in the accompanying Consolidated Balance Sheets.

In November 2021, the Company acquired all ownership interests of Novus Partners (Novus). The excess purchase price over the estimated value of the net tangible and identifiable intangible assets was allocated to goodwill. The total amount of goodwill from this transaction amounted to $48,911 and is included in the accompanying Consolidated Balance Sheets.

In addition to the intangible assets acquired through the acquisitions of Finomial and Novus, during 2021, the Company also acquired intangible assets through the purchase of a technology platform providing digital collaboration tools for financial advisors and the purchase of the Atlas Master Trust, a defined contribution master trust in the United Kingdom.

In April 2, 2018, the Company acquired all ownership interests of Huntington Steele, LLC (Huntington Steele). The total purchase price was allocated to Huntington Steele’s net tangible and intangible assets based upon their estimated fair values at the date of purchase. The excess purchase price over the value of the identifiable intangible assets was recorded as goodwill. The total amount of goodwill from this transaction amounted to $11,499 and is included on the accompanying Consolidated Balance Sheets. The total purchase price for Huntington Steele included a contingent purchase price payable to the sellers upon the attainment of specified financial measures determined at various intervals occurring between 2019 and 2023. The Company made payments of ~~$3,965~~$868 and ~~$633~~$3,965 during the ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020,~~2021, respectively, to the sellers. As of ~~September~~June 30, ~~2021,~~2022, the ~~current portion~~remaining amount of the contingent consideration of ~~$765~~$9,166 is included in Accrued liabilities on the accompanying Balance Sheet. ~~The long-term portion of the contingent consideration of $8,099 is included in Other long-term liabilities on the accompanying Balance Sheet.~~

In July 2017, the Company acquired all ownership interests of Archway Technology Partners, LLC, Archway Finance & Operations, Inc. and Keystone Capital Holdings, LLC (collectively, Archway), a provider of operating technologies and services to the family office industry. The total purchase price was allocated to Archway’s net tangible and intangible assets based upon their estimated fair values at the date of purchase. The excess purchase price over the value of the net tangible and identifiable intangible assets was recorded as goodwill. The total amount of goodwill from this transaction amounted to $52,990 and is included on the accompanying Consolidated Balance Sheets.

~~There were no changes to goodwill during the nine months ended September 30, 2021.~~

The Company recognized ~~$2,763~~$6,496 and $2,117 of amortization expense related to the intangible assets acquired through acquisitions ~~of Huntington Steele and Archway~~ during the ~~nine~~six months ended ~~September~~June 30, 2022 and 2021, ~~and 2020.~~respectively.

Note 13. Revenues from Contracts with Customers

The Company’s principal sources of revenues are: (1) asset management, administration and distribution fees primarily earned based upon a contractual percentage of net assets under management or administration; and (2) information processing and software servicing fees that are either recurring and primarily earned based upon the number of trust accounts being serviced or a percentage of the market value of the clients' assets processed on the Company's platforms, or non-recurring and based upon project-oriented contractual agreements related to client implementations.

Disaggregation of Revenue

The following tables provide additional information pertaining to our revenues disaggregated by major product line and primary geographic market based on the location of the use of the products or services for each of the business segments for the three months ended ~~September~~June 30, ~~2021~~2022 and ~~2020:~~2021:

Private
Banks
Investment
Advisors Institutional
Investors Investment
Managers Investments
In New
Businesses Total
Major Product Lines: For the Three Months Ended September 30, 2021
Investment management fees from pooled investment products $ 34,212 $ 77,123 $ 13,639 $ 32 $ 338 $ 125,344
Investment management fees from investment management agreements 605 41,688 71,964 — 3,864 118,121
Investment operations fees 363 — — 136,978 — 137,341
Investment processing fees - PaaS 54,191 — — — — 54,191
Investment processing fees - SaaS 28,579 — — 3,848 — 32,427
Professional services fees 4,174 — — 871 — 5,045
Account fees and other 894 5,957 156 5,683 163 12,853
Total revenues $ 123,018 $ 124,768 $ 85,759 $ 147,412 $ 4,365 $ 485,322
Primary Geographic Markets:
United States $ 77,260 $ 124,768 $ 68,810 $ 136,934 $ 4,365 $ 412,137
United Kingdom 28,767 — 13,327 — — 42,094
Canada 12,343 — 926 — — 13,269
Ireland 4,648 — 2,570 10,478 — 17,696
Other — — 126 — — 126
Total revenues $ 123,018 $ 124,768 $ 85,759 $ 147,412 $ 4,365 $ 485,322


		Private Banks		Investment Advisors		Institutional Investors		Investment Managers		Investments In New Businesses		Total			Private Banks		Investment Advisors		Institutional Investors		Investment Managers		Investments In New Businesses		Total
Major Product Lines:	Major Product Lines:	For the Three Months Ended September 30, 2020												Major Product Lines:	For the Three Months Ended June 30, 2022
Investment management fees from pooled investment products	Investment management fees from pooled investment products	$	32,256	$	68,287	$	13,417	$	180	$	356	$	114,496	Investment management fees from pooled investment products	$	31,993	$	67,490	$	15,700	$	123	$	402	$	115,708
Investment management fees from investment management agreements	Investment management fees from investment management agreements	421		29,761		65,811		—		3,041		99,034		Investment management fees from investment management agreements	616		40,398		63,212		—		4,073		108,299
Investment operations fees	Investment operations fees	446		—		—		113,037		—		113,483		Investment operations fees	344		—		—		144,742		—		145,086
Investment processing fees - PaaS	Investment processing fees - PaaS	47,393		—		—		—		—		47,393		Investment processing fees - PaaS	56,378		—		—		—		—		56,378
Investment processing fees - SaaS	Investment processing fees - SaaS	27,567		—		—		3,479		—		31,046		Investment processing fees - SaaS	29,845		—		3,021		3,911		—		36,777
Professional services fees	Professional services fees	5,663		—		—		2,016		—		7,679		Professional services fees	4,096		—		—		635		—		4,731
Account fees and other	Account fees and other	1,046		5,141		355		5,134		120		11,796		Account fees and other	912		5,306		1,550		6,515		408		14,691
Total revenues	Total revenues	$	114,792	$	103,189	$	79,583	$	123,846	$	3,517	$	424,927	Total revenues	$	124,184	$	113,194	$	83,483	$	155,926	$	4,883	$	481,670

Primary Geographic Markets:	Primary Geographic Markets:													Primary Geographic Markets:
United States	United States	$	74,633	$	103,189	$	62,699	$	116,196	$	3,517	$	360,234	United States	$	96,115	$	113,194	$	68,702	$	142,350	$	4,883	$	425,244
United Kingdom	United Kingdom	25,234		—		12,930		—		—		38,164		United Kingdom	13,036		—		11,283		—		—		24,319
Canada	Canada	10,596		—		1,298		—		—		11,894		Canada	11,023		—		1,424		—		—		12,447
Ireland	Ireland	4,329		—		2,526		7,650		—		14,505		Ireland	4,010		—		1,963		9,416		—		15,389
Luxembourg														Luxembourg	—		—		—		4,160		—		4,160
Other	Other	—		—		130		—		—		130		Other	—		—		111		—		—		111
Total revenues	Total revenues	$	114,792	$	103,189	$	79,583	$	123,846	$	3,517	$	424,927	Total revenues	$	124,184	$	113,194	$	83,483	$	155,926	$	4,883	$	481,670


	Private Banks		Investment Advisors		Institutional Investors		Investment Managers		Investments In New Businesses		Total
Major Product Lines:	For the Three Months Ended June 30, 2021
Investment management fees from pooled investment products	$	33,708	$	75,039	$	13,638	$	14	$	326	$	122,725
Investment management fees from investment management agreements	603		38,345		71,342		—		3,561		113,851
Investment operations fees	402		—		—		132,262		—		132,664
Investment processing fees - PaaS	55,746		—		—		—		—		55,746
Investment processing fees - SaaS	28,442		—		—		3,855		—		32,297
Professional services fees	3,928		—		—		867		—		4,795
Account fees and other	847		6,012		719		5,810		185		13,573
Total revenues	$	123,676	$	119,396	$	85,699	$	142,808	$	4,072	$	475,651

Primary Geographic Markets:
United States	$	78,848	$	119,396	$	67,792	$	132,648	$	4,072	$	402,756
United Kingdom	28,082		—		14,035		—		—		42,117
Canada	12,152		—		1,198		—		—		13,350
Ireland	4,594		—		2,546		10,160		—		17,300
Other	—		—		128		—		—		128
Total revenues	$	123,676	$	119,396	$	85,699	$	142,808	$	4,072	$	475,651

The following tables provide additional information pertaining to our revenues disaggregated by major product line and primary geographic market based on the location of the use of the products or services for each of the Company’s business segments for the ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020:~~2021:


		Private Banks		Investment Advisors		Institutional Investors		Investment Managers		Investments In New Businesses		Total			Private Banks		Investment Advisors		Institutional Investors		Investment Managers		Investments In New Businesses		Total
Major Product Lines:	Major Product Lines:	For the Nine Months Ended September 30, 2021												Major Product Lines:	For the Six Months Ended June 30, 2022
Investment management fees from pooled investment products	Investment management fees from pooled investment products	$	100,484	$	224,816	$	41,365	$	105	$	993	$	367,763	Investment management fees from pooled investment products	$	65,111	$	139,483	$	29,566	$	207	$	769	$	235,136
Investment management fees from investment management agreements	Investment management fees from investment management agreements	1,681		114,747		213,249		—		10,811		340,488		Investment management fees from investment management agreements	871		82,406		131,672		—		8,199		223,148
Investment operations fees	Investment operations fees	1,134		—		—		394,401		—		395,535		Investment operations fees	704		—		—		290,121		—		290,825
Investment processing fees - PaaS	Investment processing fees - PaaS	160,813		—		—		—		—		160,813		Investment processing fees - PaaS	112,833		—		—		—		—		112,833
Investment processing fees - SaaS	Investment processing fees - SaaS	84,831		—		—		11,409		—		96,240		Investment processing fees - SaaS	59,404		—		6,131		7,569		—		73,104
Professional services fees		12,509		—		—		2,885		—		15,394
Professional services fees (1)														Professional services fees (1)	96,825		—		—		1,024		—		97,849
Account fees and other	Account fees and other	2,850		17,895		1,343		17,839		499		40,426		Account fees and other	1,984		10,535		2,953		13,906		840		30,218
Total revenues	Total revenues	$	364,302	$	357,458	$	255,957	$	426,639	$	12,303	$	1,416,659	Total revenues	$	337,732	$	232,424	$	170,322	$	312,827	$	9,808	$	1,063,113

Primary Geographic Markets:	Primary Geographic Markets:													Primary Geographic Markets:
United States	United States	$	231,203	$	357,458	$	203,322	$	396,598	$	12,303	$	1,200,884	United States	$	177,001	$	232,424	$	139,265	$	286,375	$	9,808	$	844,873
United Kingdom	United Kingdom	83,514		—		41,091		—		—		124,605		United Kingdom	129,699		—		24,032		—		—		153,731
Canada	Canada	35,977		—		3,426		—		—		39,403		Canada	22,823		—		2,666		—		—		25,489
Ireland	Ireland	13,608		—		7,735		30,041		—		51,384		Ireland	8,209		—		4,130		19,238		—		31,577
Luxembourg														Luxembourg	—		—		—		7,214		—		7,214
Other	Other	—		—		383		—		—		383		Other	—		—		229		—		—		229
Total revenues	Total revenues	$	364,302	$	357,458	$	255,957	$	426,639	$	12,303	$	1,416,659	Total revenues	$	337,732	$	232,424	$	170,322	$	312,827	$	9,808	$	1,063,113

Private
Banks Investment
Advisors Institutional
Investors Investment
Managers Investments
In New
Businesses Total
Major Product Lines: For the Nine Months Ended September 30, 2020
Investment management fees from pooled investment products $ 95,407 $ 200,718 $ 39,628 $ 536 $ 1,063 $ 337,352
Investment management fees from investment management agreements 1,060 83,726 194,445 — 8,912 288,143
Investment operations fees 1,359 — — 328,316 — 329,675
Investment processing fees - PaaS 137,737 — — — — 137,737
Investment processing fees - SaaS 84,783 — — 10,122 — 94,905
Professional services fees 11,535 — — 4,674 — 16,209
Account fees and other 3,858 14,774 1,236 16,167 279 36,314
Total revenues $ 335,739 $ 299,218 $ 235,309 $ 359,815 $ 10,254 $ 1,240,335
Primary Geographic Markets:
United States $ 220,254 $ 299,218 $ 185,202 $ 335,776 $ 10,254 $ 1,050,704
United Kingdom 71,938 — 38,034 — — 109,972
Canada 30,723 — 4,327 — — 35,050
Ireland 12,824 — 7,321 24,039 — 44,184
Other — — 425 — — 425
Total revenues $ 335,739 $ 299,218 $ 235,309 $ 359,815 $ 10,254 $ 1,240,335
(1) Professional services fees of the Private Banks segment includes one-time early termination fees of $88,000 related to a contractual agreement with a significant client of the Company. In accordance with Accounting Standards Codification 606, the entire amount of the fees received were recorded during the three months ended March 31, 2022 as there were no future performance obligations of the Company related to the agreement upon termination.


	Private Banks		Investment Advisors		Institutional Investors		Investment Managers		Investments In New Businesses		Total
Major Product Lines:	For the Six Months Ended June 30, 2021
Investment management fees from pooled investment products	$	66,272	$	147,693	$	27,726	$	73	$	655	$	242,419
Investment management fees from investment management agreements	1,076		73,059		141,285		—		6,947		222,367
Investment operations fees	771		—		—		257,423		—		258,194
Investment processing fees - PaaS	106,622		—		—		—		—		106,622
Investment processing fees - SaaS	56,252		—		—		7,561		—		63,813
Professional services fees	8,335		—		—		2,014		—		10,349
Account fees and other	1,956		11,938		1,187		12,156		336		27,573
Total revenues	$	241,284	$	232,690	$	170,198	$	279,227	$	7,938	$	931,337

Primary Geographic Markets:
United States	$	153,943	$	232,690	$	134,512	$	259,664	$	7,938	$	788,747
United Kingdom	54,747		—		27,764		—		—		82,511
Canada	23,634		—		2,500		—		—		26,134
Ireland	8,960		—		5,165		19,563		—		33,688
Other	—		—		257		—		—		257
Total revenues	$	241,284	$	232,690	$	170,198	$	279,227	$	7,938	$	931,337

Investment management fees from pooled investment products - Revenues associated with clients' assets invested in Company-sponsored pooled investment products. Contractual fees are stated as a percentage of the market value of

assets under management and collected on a monthly basis. Revenues are recognized in Asset management, administration and distribution fees on the accompanying Consolidated Statements of Operations.

Investment management fees from investment management agreements - Revenues based on assets of clients of the Institutional Investors segment primarily invested in Company-sponsored products. Each client is charged an investment management fee that is stated as a percentage of the market value of all assets under management. The client is billed directly on a quarterly basis. Revenues are recognized in Asset management, administration and distribution fees on the accompanying Consolidated Statements of Operations.

Revenues associated with the separately managed account program offered through registered investment advisors located throughout the United States. The contractual fee is stated as a percentage of the market value of all assets invested in the separately managed account and collected on a quarterly basis. Revenues are recognized in Asset management, administration and distribution fees on the accompanying Consolidated Statements of Operations.

Investment operations fees - Revenues earned from accounting and administrative services, distribution support services and regulatory and compliance services to investment management firms and family offices. The Company contracts directly with the investment management firm or family office. The contractual fees are stated as a percentage of net assets under administration and billed when asset valuations are finalized. Revenues are recognized in Asset management, administration and distribution fees on the accompanying Consolidated Statements of Operations.

Investment processing fees - Platform as a Service - Revenues associated with clients that outsource their entire investment operation and back-office processing functions. Through the use of the Company's proprietary platforms, the Company assumes all back-office investment processing services including investment processing, custody and safekeeping of assets, income collections, securities settlement and other related trust activities. The contractual fee is based on ~~either~~ a monthly fee plus additional fees determined on a per-account or per-transaction basis. Contractual fees can also be stated as a percentage of the value of assets processed on the Company's platforms each month as long as the fee is in excess of a monthly contractual minimum. The ~~contractual fee may also include additional fees determined on a per-account or per-transaction basis. The~~ client is billed directly on a monthly basis. Revenues are recognized in Information processing and software servicing fees on the accompanying Consolidated Statements of Operations.

Investment processing fees - Software as a Service - Revenues associated with clients that outsource investment processing technology software and computer processing by accessing ~~our~~the Company's proprietary software and data center remotely but retain responsibility for all investment operations, client administration and other back-office trust operations. The contractual fee is based on a monthly fee plus additional fees determined on a per-account or per-transaction basis. The client is billed directly on a monthly basis.

Revenues associated with portfolio intelligence and workflow solutions offered to clients of the Institutional Investors segment and revenues associated with technology and outsourced services that support the accounting, investment management, and reporting functions for family offices and their service providers offered to clients of the Investment Managers segment. The contractual fee is primarily based on an annual fixed fee for software licenses and data management services. The client is billed in advance with various billing terms. Revenue recorded in advance of the performance of services is deferred and recognized when earned. Revenues are recognized in Information processing and software servicing fees on the accompanying Consolidated Statements of Operations.

Professional services fees - Revenues associated with the business services migration for investment processing clients of the Private Banks segment and investment operations clients of the Investment Managers segment. In addition, Professional services include other services such as business transformation consulting. Typically, fees are stated as a contractual fixed fee. The client is billed directly and fees are collected according to the terms of the agreement.

Account fees and other - Revenues associated with custody account servicing, account terminations, reimbursements received for out-of-pocket expenses, and other fees for the provision of ancillary services.

Note 14. Voluntary Separation Program

The Company initiated a Voluntary Separation Program (VSP) in June 2022. The VSP is a program designed to enhance talent attraction and development to drive future growth. The VSP was offered to long-tenured employees as part of its commitment to professional development and expanded responsibilities for current and new employees by increasing advancement opportunities.

The VSP was made available to employees in the United States who met the long-term tenure requirements and includes a severance package and the continuation of certain benefits based upon years of service. The severance package also includes allowances related to the vesting of certain stock option awards during the remainder of 2022 and the period in which the employee may exercise vested stock options after the termination of employment. These allowances will be considered modifications to the Company's equity compensation plans.

Separation agreements with employees who are accepted to participate in the VSP are expected to be completed in July 2022. The vast majority of the accepted employees are anticipated to finish their employment before the end of 2022. The expected departure dates for participating employees may be adjusted based on management’s determination of how best to ensure a smooth and successful transition of responsibilities. The Company expects a one-time increase between $54,000 and $58,000 in personnel costs associated with the VSP during the third quarter 2022.

2728

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

(In thousands, except asset balances and per share data)

This discussion reviews and analyzes the consolidated financial condition, the consolidated results of operations and other key factors that may affect future performance. This discussion should be read in conjunction with the Consolidated Financial Statements, the Notes to the Consolidated Financial Statements and the Annual Report on Form 10-K for the year ended December 31, ~~2020.~~2021.

Overview

Consolidated Summary

SEI is a leading global provider of technology-driven wealth and investment management solutions. We deliver comprehensive platforms, services and ~~infrastructure—~~infrastructure–encompassing technology, operational, and investment management ~~services—~~services–to help wealth managers, financial advisors, investment managers, family offices, institutional and private investors create and manage wealth. Investment processing fees are earned as either monthly fees for contracted services or as a percentage of the market value of our clients' assets processed on our platforms. Investment operations and investment management fees are earned as a percentage of assets under management, administration or advised ~~assets (See Note 13 to the Consolidated Financial Statements for more information pertaining to our revenues).~~assets. As of ~~September~~June 30, ~~2021,~~2022, through our subsidiaries and partnerships in which we have a significant interest, we manage, advise or administer $1.3 trillion in hedge, private equity, mutual fund and pooled or separately managed assets, including ~~$391.5~~$403.6 billion in assets under management and ~~$866.3~~$889.0 billion in client assets under administration. Our affiliate, LSV Asset Management (LSV), manages ~~$97.6~~$81.9 billion of assets which are included as assets under management.

Condensed Consolidated Statements of Operations for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020~~2021 were:


		Three Months Ended September 30,				Percent Change*		Nine Months Ended September 30,									Percent Change*		Three Months Ended June 30,								Percent Change*		Six Months Ended June 30,				Percent Change*
		2021		2020			2021			2020						2022				2021					2022				2021
Revenues	Revenues	$	485,322	$	424,927		14%			$	1,416,659			$	1,240,335				14%		Revenues	$	481,670			$		475,651	1%		$	1,063,113	$	931,337	14%
Expenses	Expenses	344,197		313,590		10%		1,006,676				918,458					10%	Expenses	365,810				339,630				8%		732,454		662,479		11%
Income from operations	Income from operations	141,125		111,337		27%		409,983				321,877					27%	Income from operations	115,860				136,021				(15)%		330,659		268,858		23%
Net (loss) gain from investments	Net (loss) gain from investments	(575)		776		NM		134				(1,310)					NM	Net (loss) gain from investments	(2,620)				377				NM		(3,109)		709		NM
Interest income, net of interest expense	Interest income, net of interest expense	791		856		(8)%		2,361				5,126					(54)%	Interest income, net of interest expense	1,642				748				120%		2,240		1,570		43%
Equity in earnings from unconsolidated affiliate	Equity in earnings from unconsolidated affiliate	35,005		28,305		24%		103,420				86,488					20%	Equity in earnings from unconsolidated affiliate	29,813				35,065				(15)%		62,272		68,415		(9)%
Income before income taxes	Income before income taxes	176,346		141,274		25%		515,898				412,181					25%	Income before income taxes	144,695				172,211				(16)%		392,062		339,552		15%
Income taxes	Income taxes	38,301		30,178		27%		114,605				90,777					26%	Income taxes	33,419				38,433				(13)%		90,478		76,304		19%
Net income	Net income	138,045		111,096		24%		401,293				321,404					25%	Net income	111,276				133,778				(17)%		301,584		263,248		15%
Diluted earnings per common share	Diluted earnings per common share	$	0.97	$	0.75	29%		$	2.79			$	2.14				30%	Diluted earnings per common share	$	0.81			$	0.93			(13)%		$	2.17	$	1.82	19%

* Variances noted "NM" indicate the percent change is not meaningful.

The following items had a significant impact on our financial results for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020:~~2021:

•Revenue from Asset management, administration and distribution fees increased from higher average assets under administration from market appreciation during 2021 and positive cash flows from new and existing ~~clients.~~clients despite the significant decline in market conditions in 2022. Average assets under administration increased ~~$148.2~~$55.5 billion, or ~~21%~~7%, to ~~$845.2~~$895.4 billion in the first ~~nine~~six months of ~~2021~~2022 as compared to ~~$697.0~~$839.9 billion during the first ~~nine~~six months of ~~2020.~~2021.

•Revenue from Asset management, administration and distribution fees were negatively impacted by a shift of our average assets under management into lower fee products. Average assets under management, excluding LSV, increased ~~$54.6~~$21.0 billion, or ~~23%~~7%, to ~~$291.3~~$307.9 billion in the first ~~nine~~six months of ~~2021~~2022 as compared to ~~$236.7~~$286.9 billion during the first ~~nine~~six months of ~~2020. The increase was primarily due to market appreciation from the recovery of the capital markets during the later half of 2020 and first half of~~ 2021. ~~Defined benefit plan client losses in the Institutional Investors segment partially offset the increase and negatively impacted our asset-based revenues.~~

•A significant investment processing client of the Private Banks segment terminated an agreement for convenience during the first quarter 2022. As a result, we recorded one-time early termination fees of $88.0 million. The early termination fee is included in Information processing and software servicing fees inon the ~~Private Banks segment increased $23.8~~accompanying Consolidated Statements of Operations.

•Revenues from our acquisitions of SEI Novus and Atlas Master Trust were $6.1 million and $2.5 million, respectively, during the first ~~nine~~six months of 2022. SEI Novus and Atlas Master Trust were acquired during the fourth quarter of 2021 ~~due to higher asset balances processed on SWP.~~

•~~Earnings from LSV increased to $103.4 million~~and are reported in the first nine months of 2021 as compared to $86.5 million in the first nine months of 2020 due to higher assets under management from market appreciation and new clients. Negative cash flows from existing clients and client losses partially offset the increase in earnings from LSV.

•~~Operating expenses increased primarily from direct costs related to increased revenues and higher personnel costs due to business growth and competitive labor markets.~~

•Stock-based compensation expense increased $10.7 million during the first nine months of 2021 due to equity awards in late 2020 and from a change in estimate of the timing of when stock-option vesting targets would be achieved.

•We capitalized $19.4 million in the first nine months of 2021 for the SEI Wealth Platform as compared to $17.2 million in the first nine months of 2020. Amortization expense related to SWP increased to $35.8 million during the first nine months of 2021 as compared to $32.6 million during the first nine months of 2020 due to additional enhancements placed in service.

•~~We continued the stock repurchase program during 2021 and purchased 5.2 million shares for $316.1 million in the nine month period.~~

~~Impact of COVID-19 and Other Events~~

The occurrence of unforeseen or catastrophic events, including the emergence of a pandemic or other widespread health emergency or concerns over the possibility of such an emergency, could create economic and financial disruptions, and could lead to operational difficulties that could impair our ability to manage our business. In December 2019, a novel strain of coronavirus (COVID-19) was identified in Wuhan, China. COVID-19 quickly spread globally, leading the World Health Organization to declare the COVID-19 virus outbreak a global pandemic in March 2020. Since that time, governmental authorities have implemented numerous and varying measures to stall the spread and ameliorate the impact of COVID-19, including travel bans and restrictions, quarantines, curfews, shelter in place and safer-at-home orders, business shutdowns and closures, and have also implemented multi-step policies with the goal of re-opening domestic and global markets. Certain jurisdictions have begun re-opening only to return to restrictions in the face of increases in new COVID-19 cases. Recent developments include the phased re-opening of domestic and global markets to varying degrees.

In March 2020, we executed upon our business resiliency and contingency plans. To date, our remote capabilities have proven to be effective during the disruption caused by the COVID-19 pandemic with almost the entire workforce working remotely, with only a very limited number of on-site activities in our operational offices continuing to be performed.

We continue to closely monitor the domestic and international landscape for changes in governmental measures both in the United States and in the locations where we rely on critical outsourced services. We continue to be in regular contact with regulators, clients and vendors to confirm the measures taken to continue operating during this crisis, taking into consideration the latest announcements from state and federal authorities. We are also in continuous communication with our workforce to provide for the health and welfare of our employees working remotely and have implemented a return plan that is available for review on our website for those employees working in our operational offices. We will monitor the ability of these individuals to work as safely as possible at our offices and make adjustmentsInstitutional Investors segment (See Note 12 to the number of on-site personnel (either increases or decreases) accordingly. We expect that the individual circumstances of our employees regarding school, childcare, care-giving and underlying health concerns will significantly impact our ability to return staff to their primary office locations.

The majority of our revenues are based on the value of assets invested in investment products that we manage or administer which are affected by changes in the capital markets and the portfolio strategy of our clients or their customers. The strong recovery of the capital markets after the widespread economic shutdowns in response to the emergence of the pandemic has had a positive impact on our asset-based fees thereby increasing our base revenues. Any prolonged future downturns in general capital market conditions or long-term client portfolio strategies directing significant assets into lower margin products could have adverse effects on our revenues and earnings derived from assets under management and administration.

While we have developed and implemented and continue to develop and implement health and safety protocols, business continuity plans and crisis management protocols designed to mitigate the potentially negative impact of COVID-19 to our employees and our business, the extent of the impact of the pandemic on our business and financial results will continue to depend on numerous evolving factors that we are not able to accurately predict and which will vary by market, including the duration and scope of the pandemic, the effectiveness of vaccinations, the implications arising out of the emerging and potentially yet to be identified variants of COVID-19, global economic conditions during and after the pandemic, governmental actions that have been taken, or may be taken in the future, in response to the pandemic, the extent that critical public and private infrastructure functions upon which we rely are suspended and changes in investor and consumer behavior in response to the pandemic. The resulting market conditions may adversely affect our revenues and earnings derived from assets under management and administration.Consolidated Financial Statements).

~~On May 17, 2020, M.J. Brunner (Brunner), one~~•Earnings from LSV decreased to $62.3 million in the first six months of ~~our third-party developers/vendors that provides development services~~2022 as compared to $68.4 million in the first six months of 2021 due to negative cash flows from existing clients, market depreciation and ~~application~~client losses.

•Operating expenses increased primarily from higher personnel and consulting costs due to business growth and competitive labor markets. The increase was partially offset by lower direct costs related to asset management revenues.

•The Institutional Investors segment includes personnel, professional fees, amortization and other costs related to SEI Novus and Atlas Master Trust. These expenses are primarily included in Compensation, benefits and other personnel costs, Consulting, outsourcing and professional fees, and Amortization on the accompanying Consolidated Statements of Operations.

•We capitalized $12.7 million in the first six months of 2022 for ~~two~~the SEI Wealth Platform as compared to $12.2 million in the first six months of ~~our client applications experienced a ransomware attack.~~ 2021. Amortization expense related to SWP was $23.9 million during the first six months of 2022 and 2021.

•We ~~are aware that certain client data was illegally accessed~~continued the stock repurchase program during 2022 and ~~revealed by cybercriminal(s). The applications themselves were not compromised by this attack. The root cause~~purchased 3.7 million shares for $209.4 million in the six month period.

Introduction of ~~the attack was not predicated on vulnerability within SEI’s network, and neither SEI’s network nor operations were compromised, attacked or otherwise affected~~Voluntary Separation Program

In June 2022, we initiated an enhanced voluntary separation program to long-tenured employees as part of ~~this incident. While there were direct~~our commitment to professional development and ~~indirect expenses associated with~~expanded responsibilities for current and new employees by increasing advancement opportunities. The program was offered to employees in the ~~incident~~United States who met the long-term tenure requirements and includes a severance package and the continuation of certain benefits. We expect a one-time increase between $54.0 million and $58.0 million in ~~each fiscal quarter since the incident, and we expect there will continue to be~~personnel costs associated with the ~~incident going-forward, we do not expect these will be material. We note that several regulatory bodies who routinely review our operations, including~~program during the SEC and the United States Federal Financial Institutions Examination Council (FFIEC), have requested information with respect to, and are investigating the facts and circumstances surrounding, the ransomware attack on Brunner. We have produced information in connection with and continue to cooperate in the ongoing investigation being conducted by the SEC’s Division of Enforcement relating to this matter. Additionally, the SEC’s Division of Examinations concluded its examination of our regulated entities and found limited and discrete deficiencies in the execution of our third-party vendor management program as it pertained to Brunner. While we have identified no causal connection between the Examination findings and the Brunner ransomware attack, we take our clients’ security very seriously and have respondedthird quarter 2022 (See Note 14 to the ~~Staff’s Examination findings and are documenting further enhancements to our third-party vendor management program.~~Consolidated Financial Statements).

~~One SEI~~
SM ~~Strategy~~

In 2020, we invested in our One SEI strategy. The One SEI strategy is a company-wide initiative to open business opportunities across the entire company by leveraging existing and new SEI platforms and making them accessible to all types of clients, adjacent markets and other non-SEI platforms. As we execute on our strategy, we have incurred significant costs during 2020 and throughout 2021 to integrate, modularize and leverage these technologies in our service offerings for the front, middle and back-office. The majority of these costs have been recognized in the Investments in New Businesses segment. To date, we have not capitalized any software development costs related to the One SEI strategy. We expect these investments will continue during the fourth quarter of 2021 and into 2022 as we continue to deliver on our One SEI strategy.

Ending Asset Balances

(In millions)


		As of September 30,				Percent Change		As of June 30,				Percent Change
		2021		2020				2022		2021
Private Banks:	Private Banks:						Private Banks:
Equity and fixed-income programs	Equity and fixed-income programs	$	25,618	$	23,499	9%	Equity and fixed-income programs	$	22,277	$	26,264	(15)%
Collective trust fund programs	Collective trust fund programs	6		6		—%	Collective trust fund programs	7		7		—%
Liquidity funds	Liquidity funds	3,988		3,718		7%	Liquidity funds	3,666		3,654		—%
Total assets under management	Total assets under management	$	29,612	$	27,223	9%	Total assets under management	$	25,950	$	29,925	(13)%
Client assets under administration	Client assets under administration	4,675		24,174		(81)%	Client assets under administration	3,923		4,412		(11)%
Total assets	Total assets	$	34,287	$	51,397	(33)%	Total assets	$	29,873	$	34,337	(13)%
Investment Advisors:	Investment Advisors:						Investment Advisors:
Equity and fixed-income programs	Equity and fixed-income programs	$	78,560	$	65,581	20%	Equity and fixed-income programs	$	65,783	$	78,053	(16)%
Collective trust fund programs		—		3		(100)%
Liquidity funds	Liquidity funds	3,477		3,866		(10)%	Liquidity funds	8,292		3,550		134%
Total Platform assets under management	Total Platform assets under management	$	82,037	$	69,450	18%	Total Platform assets under management	$	74,075	$	81,603	(9)%
Platform-only assets (E)	Platform-only assets (E)	13,728		10,506		31%	Platform-only assets (E)	12,642		13,566		(7)%
Total Platform assets (E)	Total Platform assets (E)	$	95,765	$	79,956	20%	Total Platform assets (E)	$	86,717	$	95,169	(9)%
Institutional Investors:	Institutional Investors:						Institutional Investors:
Equity and fixed-income programs	Equity and fixed-income programs	$	89,441	$	83,846	7%	Equity and fixed-income programs	$	75,506	$	93,010	(19)%
Collective trust fund programs	Collective trust fund programs	5		101		(95)%	Collective trust fund programs	5		5		—%
Liquidity funds	Liquidity funds	2,599		2,096		24%	Liquidity funds	1,654		2,516		(34)%
Total assets under management	Total assets under management	$	92,045	$	86,043	7%	Total assets under management	$	77,165	$	95,531	(19)%
Client assets under advisement	Client assets under advisement	4,698		3,618		30%	Client assets under advisement	4,218		4,566		(8)%
Total assets	Total assets	$	96,743	$	89,661	8%	Total assets	$	81,383	$	100,097	(19)%
Investment Managers:	Investment Managers:						Investment Managers:
Collective trust fund programs	Collective trust fund programs	$	87,488	$	63,277	38%	Collective trust fund programs	$	142,035	$	87,012	63%
Liquidity funds	Liquidity funds	568		389		46%	Liquidity funds	271		473		(43)%
Total assets under management	Total assets under management	$	88,056	$	63,666	38%	Total assets under management	$	142,306	$	87,485	63%
Client assets under administration (A)	Client assets under administration (A)	861,605		730,369		18%	Client assets under administration (A)	885,096		875,942		1%
Total assets	Total assets	$	949,661	$	794,035	20%	Total assets	$	1,027,402	$	963,427	7%
Investments in New Businesses:	Investments in New Businesses:						Investments in New Businesses:
Equity and fixed-income programs	Equity and fixed-income programs	$	1,964	$	1,572	25%	Equity and fixed-income programs	$	1,903	$	1,924	(1)%
Liquidity funds	Liquidity funds	202		169		20%	Liquidity funds	242		191		27%
Total assets under management	Total assets under management	$	2,166	$	1,741	24%	Total assets under management	$	2,145	$	2,115	1%
Client assets under advisement	Client assets under advisement	1,378		1,179		17%	Client assets under advisement	1,076		1,422		(24)%
Total assets	Total assets	$	3,544	$	2,920	21%	Total assets	$	3,221	$	3,537	(9)%
LSV:	LSV:						LSV:
Equity and fixed-income programs (B)	Equity and fixed-income programs (B)	$	97,604	$	82,051	19%	Equity and fixed-income programs (B)	$	81,940	$	102,404	(20)%


Total:	Total:						Total:
Equity and fixed-income programs (C)	Equity and fixed-income programs (C)	$	293,187	$	256,549	14%	Equity and fixed-income programs (C)	$	247,409	$	301,655	(18)%
Collective trust fund programs	Collective trust fund programs	87,499		63,387		38%	Collective trust fund programs	142,047		87,024		63%
Liquidity funds	Liquidity funds	10,834		10,238		6%	Liquidity funds	14,125		10,384		36%
Total assets under management	Total assets under management	$	391,520	$	330,174	19%	Total assets under management	$	403,581	$	399,063	1%
Client assets under advisement	Client assets under advisement	6,076		4,797		27%	Client assets under advisement	5,294		5,988		(12)%
Client assets under administration (D)	Client assets under administration (D)	866,280		754,543		15%	Client assets under administration (D)	889,019		880,354		1%
Platform-only assets	Platform-only assets	13,728		10,506		31%	Platform-only assets	12,642		13,566		(7)%
Total assets	Total assets	$	1,277,604	$	1,100,020	16%	Total assets	$	1,310,536	$	1,298,971	1%

(A)Client assets under administration in the Investment Managers segment include ~~$12.3~~$80.7 billion of assets that are at fee levels below our normal full service assets (as of ~~September~~June 30, ~~2021)~~2022).

(B) Equity and fixed-income programs include assets managed by LSV in which fees are based on performance only. The ending value of these assets as of ~~September~~June 30, ~~2021~~2022 was ~~$2.3~~$1.9 billion.

(C) Equity and fixed-income programs include ~~$7.8~~$6.4 billion of assets invested in various asset allocation funds at ~~September~~June 30, ~~2021.~~2022.

(D) In addition to the numbers presented, SEI also administers an additional ~~$13.7~~$12.9 billion in Funds of Funds assets (as of ~~September~~June 30, ~~2021)~~2022) on which SEI does not earn an administration fee.

(E) Platform assets under management and Platform-only assets combined are total Platform assets in the Investment Advisors segment.

Average Asset Balances

(In millions)


		Three Months Ended September 30,				Percent Change		Nine Months Ended September 30,						Percent Change		Three Months Ended June 30,						Percent Change		Six Months Ended June 30,						Percent Change
		2021		2020			2021			2020			2022				2021				2022			2021
Private Banks:	Private Banks:																	Private Banks:
Equity and fixed-income programs	Equity and fixed-income programs	$	26,232	$	23,740	10%		$	25,809		$	23,542		10%	Equity and fixed-income programs	$	23,713		$	26,056			(9)%		$	24,675		$	25,598		(4)%
Collective trust fund programs	Collective trust fund programs	6		7		(14)%		6			5			20%	Collective trust fund programs	7			7			—%		7			7			—%
Liquidity funds	Liquidity funds	3,916		3,948		(1)%		3,875			3,965			(2)%	Liquidity funds	3,795			3,833			(1)%		4,099			3,855			6%
Total assets under management	Total assets under management	$	30,154	$	27,695	9%		$	29,690		$	27,512		8%	Total assets under management	$	27,515		$	29,896		(8)%		$	28,781		$	29,460		(2)%
Client assets under administration	Client assets under administration	4,476		25,295		(82)%		4,399			24,651			(82)%	Client assets under administration	4,163			4,405			(5)%		4,332			4,361			(1)%
Total assets	Total assets	$	34,630	$	52,990	(35)%		$	34,089		$	52,163		(35)%	Total assets	$	31,678		$	34,301		(8)%		$	33,113		$	33,821		(2)%
Investment Advisors:	Investment Advisors:														Investment Advisors:
Equity and fixed-income programs	Equity and fixed-income programs	$	79,602	$	64,479	23%		$	76,560		$	62,280		23%	Equity and fixed-income programs	$	70,436		$	76,840		(8)%		$	74,006		$	75,040		(1)%
Collective trust fund programs		—		3		(100)%		1			3			(67)%
Liquidity funds	Liquidity funds	3,403		4,569		(26)%		3,464			4,925			(30)%	Liquidity funds	7,070			3,370			110%		6,111			3,495			75%
Total Platform assets under management	Total Platform assets under management	$	83,005	$	69,051	20%		$	80,025		$	67,208		19%	Total Platform assets under management	$	77,506		$	80,210		(3)%		$	80,117		$	78,535		2%
Platform-only assets (E)	Platform-only assets (E)	13,863		10,501		32%		13,120			9,481			38%	Platform-only assets (E)	13,142			13,292			(1)%		13,560			12,749			6%
Total Platform assets (E)	Total Platform assets (E)	$	96,868	$	79,552	22%		$	93,145		$	76,689		21%	Total Platform assets (E)	$	90,648		$	93,502		(3)%		$	93,677		$	91,284		3%
Institutional Investors:	Institutional Investors:														Institutional Investors:
Equity and fixed-income programs	Equity and fixed-income programs	$	91,965	$	82,830	11%		$	92,257		$	79,931		15%	Equity and fixed-income programs	$	80,971		$	93,458		(13)%		$	85,111		$	92,404		(8)%
Collective trust fund programs	Collective trust fund programs	5		102		(95)%		56			96			(42)%	Collective trust fund programs	5			68			(93)%		5			82			(94)%
Liquidity funds	Liquidity funds	2,742		2,120		29%		2,681			2,313			16%	Liquidity funds	2,097			2,681			(22)%		2,160			2,651			(19)%
Total assets under management	Total assets under management	$	94,712	$	85,052	11%		$	94,994		$	82,340		15%	Total assets under management	$	83,073		$	96,207		(14)%		$	87,276		$	95,137		(8)%
Client assets under advisement	Client assets under advisement	4,658		3,565		31%		4,440			3,562			25%	Client assets under advisement	3,987			4,516			(12)%		4,438			4,331			2%
Total assets	Total assets	$	99,370	$	88,617	12%		$	99,434		$	85,902		16%	Total assets	$	87,060		$	100,723		(14)%		$	91,714		$	99,468		(8)%
Investment Managers:	Investment Managers:														Investment Managers:
Collective trust fund programs	Collective trust fund programs	$	89,441	$	62,028	44%		$	84,010		$	57,347		46%	Collective trust fund programs	$	131,435		$	84,553		55%		$	109,034		$	81,294		34%
Liquidity funds	Liquidity funds	532		565		(6)%		497			555			(10)%	Liquidity funds	285			469			(39)%		359			480			(25)%
Total assets under management	Total assets under management	$	89,973	$	62,593	44%		$	84,507		$	57,902		46%	Total assets under management	$	131,720		$	85,022		55%		$	109,393		$	81,774		34%
Client assets under administration (A)	Client assets under administration (A)	851,183		713,528		19%		840,774			672,309			25%	Client assets under administration (A)	893,361			853,810			5%		891,108			835,570			7%
Total assets	Total assets	$	941,156	$	776,121	21%		$	925,281		$	730,211		27%	Total assets	$	1,025,081		$	938,832		9%		$	1,000,501		$	917,344		9%
Investments in New Businesses:	Investments in New Businesses:														Investments in New Businesses:
Equity and fixed-income programs	Equity and fixed-income programs	$	1,958	$	1,560	26%		$	1,857		$	1,564		19%	Equity and fixed-income programs	$	2,016		$	1,870		8%		$	2,021		$	1,807		12%
Liquidity funds	Liquidity funds	205		180		14%		203			177			15%	Liquidity funds	262			236			11%		274			203			35%
Total assets under management	Total assets under management	$	2,163	$	1,740	24%		$	2,060		$	1,741		18%	Total assets under management	$	2,278		$	2,106		8%		$	2,295		$	2,010		14%
Client assets under advisement	Client assets under advisement	1,423		1,206		18%		1,385			1,192			16%	Client assets under advisement	1,165			1,406			(17)%		1,281			1,367			(6)%
Total assets	Total assets	$	3,586	$	2,946	22%		$	3,445		$	2,933		17%	Total assets	$	3,443		$	3,512		(2)%		$	3,576		$	3,377		6%
LSV:	LSV:														LSV:
Equity and fixed-income programs (B)	Equity and fixed-income programs (B)	$	99,924	$	83,536	20%		$	100,328		$	83,997		19%	Equity and fixed-income programs (B)	$	87,818		$	103,583		(15)%		$	92,134		$	100,530		(8)%


Total:	Total:											Total:
Equity and fixed-income programs (C)	Equity and fixed-income programs (C)	$	299,681	$	256,145	17%	$	296,811	$	251,314	18%	Equity and fixed-income programs (C)	$	264,954	$	301,807	(12)%	$	277,947	$	295,379	(6)%
Collective trust fund programs	Collective trust fund programs	89,452		62,140		44%	84,073		57,451		46%	Collective trust fund programs	131,447		84,628		55%	109,046		81,383		34%
Liquidity funds	Liquidity funds	10,798		11,382		(5)%	10,720		11,935		(10)%	Liquidity funds	13,509		10,589		28%	13,003		10,684		22%
Total assets under management	Total assets under management	$	399,931	$	329,667	21%	$	391,604	$	320,700	22%	Total assets under management	$	409,910	$	397,024	3%	$	399,996	$	387,446	3%
Client assets under advisement	Client assets under advisement	6,081		4,771		27%	5,825		4,754		23%	Client assets under advisement	5,152		5,922		(13)%	5,719		5,698		—%
Client assets under administration (D)	Client assets under administration (D)	855,659		738,823		16%	845,173		696,960		21%	Client assets under administration (D)	897,524		858,215		5%	895,440		839,931		7%
Platform-only assets	Platform-only assets	13,863		10,501		32%	13,120		9,481		38%	Platform-only assets	13,142		13,292		(1)%	13,560		12,749		6%
Total assets	Total assets	$	1,275,534	$	1,083,762	18%	$	1,255,722	$	1,031,895	22%	Total assets	$	1,325,728	$	1,274,453	4%	$	1,314,715	$	1,245,824	6%

(A) Average client assets under administration in the Investment Managers segment for the three months ended ~~September~~June 30, ~~2021~~2022 include ~~$12.5~~$80.7 billion that are at fee levels below our normal full service assets.

(B) Equity and fixed-income programs include assets managed by LSV in which fees are based on performance only. The average value of these assets for the three months ended ~~September~~June 30, ~~2021~~2022 was ~~$2.4~~$2.1 billion.

(C) Equity and fixed-income programs include ~~$7.8~~$6.9 billion of average assets invested in various asset allocation funds for the three months ended ~~September~~June 30, ~~2021.~~2022.

(D) In addition to the numbers presented, SEI also administers an additional ~~$13.6~~$13.1 billion of average assets in Funds of Funds assets for the three months ended ~~September~~June 30, ~~2021~~2022 on which SEI does not earn an administration fee.

(E) Platform assets under management and Platform-only assets combined are total Platform assets in the Investment Advisors segment.

In the preceding tables, assets under management are total assets of our clients or their customers invested in equity and fixed-income investment programs, collective trust fund programs, and liquidity funds for which we provide asset management services through our subsidiaries and partnerships in which we have a significant interest. Assets under advisement include assets for which we provide advisory services through a subsidiary to the accounts but do not manage the underlying assets. Assets under administration include total assets of our clients or their customers for which we provide administrative services, including client fund balances for which we provide administration and/or distribution services through our subsidiaries and partnerships in which we have a significant interest. Platform-only assets include total assets of our clients or their customers which are not invested in any SEI-sponsored investment products. The assets presented in the preceding tables do not include assets processed on SWP and are not included in the accompanying Consolidated Balance Sheets because we do not own them.

Business Segments

Revenues, Expenses and Operating Profit (Loss) for our business segments for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 compared to the three and ~~nine~~six months ended ~~September~~June 30, ~~2020~~2021 were as follows:


		Three Months Ended September 30,						Percent Change		Nine Months Ended September 30,								Percent Change		Three Months Ended June 30,								Percent Change		Six Months Ended June 30,						Percent Change
		2021			2020				2021				2020				2022				2021						2022			2021
Private Banks:	Private Banks:																						Private Banks:
Revenues	Revenues	$	123,018		$	114,792		7%		$	364,302			$	335,739			9%	Revenues	$	124,184			$	123,676				—%		$	337,732		$	241,284		40%
Expenses	Expenses	116,679			113,066			3%		345,057				331,442				4%	Expenses	121,060				117,654				3%		243,015			228,378			6%
Operating Profit	Operating Profit	$	6,339		$	1,726		NM		$	19,245			$	4,297			NM	Operating Profit	$	3,124			$	6,022			(48)%		$	94,717		$	12,906		NM
Operating Margin	Operating Margin	5		%	2		%			5		%		1		%			Operating Margin	3		%		5		%				28		%	5		%
Investment Advisors:	Investment Advisors:																		Investment Advisors:
Revenues	Revenues	$	124,768		$	103,189		21%		$	357,458			$	299,218			19%	Revenues	$	113,194			$	119,396			(5)%		$	232,424		$	232,690		—%
Expenses	Expenses	62,107			51,519			21%		176,267				154,100				14%	Expenses	63,375				59,133				7%		127,895			114,160			12%
Operating Profit	Operating Profit	$	62,661		$	51,670		21%		$	181,191			$	145,118			25%	Operating Profit	$	49,819			$	60,263			(17)%		$	104,529		$	118,530		(12)%
Operating Margin	Operating Margin	50		%	50		%			51		%		48		%			Operating Margin	44		%		50		%				45		%	51		%
Institutional Investors:	Institutional Investors:																		Institutional Investors:
Revenues	Revenues	$	85,759		$	79,583		8%		$	255,957			$	235,309			9%	Revenues	$	83,483			$	85,699			(3)%		$	170,322		$	170,198		—%
Expenses	Expenses	41,643			37,812			10%		122,696				113,016				9%	Expenses	43,925				41,895				5%		89,283			81,053			10%
Operating Profit	Operating Profit	$	44,116		$	41,771		6%		$	133,261			$	122,293			9%	Operating Profit	$	39,558			$	43,804			(10)%		$	81,039		$	89,145		(9)%
Operating Margin	Operating Margin	51		%	52		%			52		%		52		%			Operating Margin	47		%		51		%				48		%	52		%
Investment Managers:	Investment Managers:																		Investment Managers:
Revenues	Revenues	$	147,412		$	123,846		19%		$	426,639			$	359,815			19%	Revenues	$	155,926			$	142,808			9%		$	312,827		$	279,227		12%
Expenses	Expenses	89,594			79,838			12%		257,609				228,795				13%	Expenses	100,807				84,995				19%		199,644			168,015			19%
Operating Profit	Operating Profit	$	57,818		$	44,008		31%		$	169,030			$	131,020			29%	Operating Profit	$	55,119			$	57,813			(5)%		$	113,183		$	111,212		2%
Operating Margin	Operating Margin	39		%	36		%			40		%		36		%			Operating Margin	35		%		40		%				36		%	40		%
Investments in New Businesses:	Investments in New Businesses:																		Investments in New Businesses:
Revenues	Revenues	$	4,365		$	3,517		24%		$	12,303			$	10,254			20%	Revenues	$	4,883			$	4,072			20%		$	9,808		$	7,938		24%
Expenses	Expenses	12,820			13,315			(4)%		39,855				37,691				6%	Expenses	12,844				13,631				(6)%		24,794			27,035			(8)%
Operating Loss	Operating Loss	$	(8,455)		$	(9,798)		NM		$	(27,552)			$	(27,437)			NM	Operating Loss	$	(7,961)			$	(9,559)			NM		$	(14,986)		$	(19,097)		NM

For additional information pertaining to our business segments, see Note 9 to the Consolidated Financial Statements.

~~Private Banks~~

Three Months Ended September 30, Percent
Change Nine Months Ended September 30, Percent
Change
2021 2020 2021 2020
Revenues:
Information processing and software servicing fees $ 88,340 $ 81,811 8% $ 261,907 $ 238,099 10%
Asset management, administration & distribution fees 34,678 32,981 5% 102,395 97,640 5%
Total revenues $ 123,018 $ 114,792 7% $ 364,302 $ 335,739 9%

~~Revenues increased $8.2 million, or 7%, in the three month period and increased $28.6 million, or 9%, in the nine month period ended September 30, 2021 and were primarily affected by:~~

•~~Increased investment processing fees from new SWP client conversions and growth from existing SWP clients, partially due to market appreciation;~~

•~~Increased investment management fees from existing international clients due to market appreciation;~~

•~~Increased non-recurring professional service fees from existing clients and one-time early termination fees from an existing TRUST 3000~~® ~~client; and~~

•~~The positive impact from foreign currency exchange rate fluctuations between the U.S. dollar and the British~~

~~pound on our foreign operations; partially offset by~~Private Banks

•~~Decreased investment processing fees from the loss of clients; and~~


	Three Months Ended June 30,				Percent Change	Six Months Ended June 30,				Percent Change
	2022		2021			2022		2021
Revenues:
Information processing and software servicing fees	$	93,203	$	89,264	4%	$	274,240	$	173,567	58%
Asset management, administration & distribution fees	30,981		34,412		(10)%	63,492		67,717		(6)%
Total revenues	$	124,184	$	123,676	—%	$	337,732	$	241,284	40%

•~~Decreased investment management fees from liquidity products.~~

~~Operating margins~~Revenues increased ~~to 5% in the three and nine month periods. Operating margins in the prior year comparable periods were essentially flat. Operating income increased by $4.6 million~~slightly in the three month period and increased ~~by $14.9~~$96.4 million, or 40%, in the ~~nine~~six month period ended June 30, 2022 and ~~was~~were primarily affected by:

•~~An increase in revenues;~~

•~~Decreased non-capitalized costs, mainly personnel and consulting costs, related to maintenance, support and client migrations to SWP;~~Early termination fees of $88.0 million recorded during the first quarter 2022 from a significant investment processing client; and

•Increased investment processing fees from new client conversions and growth from existing SWP clients, in part due to market appreciation during 2021; partially offset by

•One-time early termination fees from a TRUST 3000® client recorded in the second quarter 2021;

•The ~~net positive~~negative impact from foreign currency exchange rate fluctuations between the U.S. dollar and the British pound on our foreign operations; and

•Decreased investment management fees from existing international clients due to market depreciation during 2022.

Operating margins decreased to 3% compared to 5% in the three month period and increased to 28% compared to 5% in the six month period. Operating income decreased by $2.9 million, or 48%, in the three month period and increased $81.8 million in the six month period and was primarily affected by:

•An increase in revenues; and

•Decreased direct expenses associated with lower investment management fees from existing international clients; partially offset by

•Increased ~~direct expenses associated with increased investment management fees~~personnel costs due to competitive labor markets;

•Increased costs, mainly personnel and consulting costs, primarily related to maintenance, support and client migrations to SWP;

•The negative impact from ~~existing international clients;~~foreign currency exchange rate fluctuations between the U.S. dollar and the British pound on our foreign operations; and

•Increased amortization expense related to ~~SWP; and~~

•~~Increased personnel and stock-based compensation costs.~~deferred sales commissions.

Investment Advisors


		Three Months Ended September 30,				Percent Change		Nine Months Ended September 30,						Percent Change		Three Months Ended June 30,						Percent Change		Six Months Ended June 30,						Percent Change
		2021		2020			2021			2020			2022				2021				2022			2021
Revenues:	Revenues:																	Revenues:
Investment management fees-SEI fund programs	Investment management fees-SEI fund programs	$	77,123	$	68,287	13%		$	224,816		$	200,718		12%	Investment management fees-SEI fund programs	$	67,490		$	75,039			(10)%		$	139,483		$	147,693		(6)%
Separately managed account fees	Separately managed account fees	41,688		29,761		40%		114,747			83,726			37%	Separately managed account fees	40,398			38,345			5%		82,406			73,059			13%
Other fees	Other fees	5,957		5,141		16%		17,895			14,774			21%	Other fees	5,306			6,012			(12)%		10,535			11,938			(12)%
Total revenues	Total revenues	$	124,768	$	103,189	21%		$	357,458		$	299,218		19%	Total revenues	$	113,194		$	119,396		(5)%		$	232,424		$	232,690		—%

Revenues ~~increased $21.6~~decreased $6.2 million, or ~~21%~~5%, in the three month period and ~~increased $58.2 million, or 19%,~~decreased slightly in the ~~nine~~six month period ended ~~September~~June 30, ~~2021~~2022 and were primarily affected by:

•Decreased investment management fees from SEI fund programs resulting from negative cash flows during 2021 and the decline in market conditions during 2022; partially offset by

•Increased separately managed account program fees from positive cash flows into ~~new~~our Strategist programs and ~~existing SEI-sponsored programs; and~~market appreciation occurring during 2021.

•~~The positive impact to investment management fees from market appreciation; partially offset by~~

•

~~Negative cash flows from SEI-sponsored mutual funds.~~

Operating margin ~~remained at~~decreased to 44% compared to 50% in the three month period and ~~increased~~decreased to 45% compared to 51% ~~compared to 48%~~ in the ~~nine~~six month period. Operating income ~~increased $11.0~~decreased $10.4 million, or ~~21%~~17%, in the three month period and ~~increased $36.1~~decreased $14.0 million, or ~~25%~~12%, in the ~~nine~~six month period and was primarily affected by:

•~~An increase in revenues; partially offset by~~

•Increased direct expenses associated with increased assets into our separately managed account program; and

•Increased ~~promotion~~personnel costs as well as increased ~~personnel and stock-based compensation~~promotion costs.

Institutional Investors

Revenues ~~increased $6.2~~decreased $2.2 million, or 8%3%, in the three month period and increased ~~$20.6 million, or 9%,~~slightly in the ~~nine~~six month period ended ~~September~~June 30, ~~2021~~2022 and were primarily affected by:

•~~Increased investment management fees~~Added revenues from ~~market appreciation;~~

•~~Asset funding from new sales~~the acquisitions of ~~our OCIO platform;~~

•~~Performance fees associated with an SEI-sponsored investment product~~SEI Novus and Atlas Master Trust during the ~~third-quarter~~fourth quarter 2021; and

•The positive impact to investment management fees from market appreciation in 2021; partially offset by

•Decreased investment management fees from defined benefit client losses; and

•The negative impact from foreign currency exchange rate fluctuations between the U.S. dollar and the British pound on our foreign ~~operations; partially offset by~~

•~~Defined benefit client losses.~~operations.

Operating margin decreased to ~~51%~~47% compared to ~~52%~~51% in the three month period and ~~remained at~~decreased to 48% compared to 52% in the ~~nine~~six month period. Operating income ~~increased $2.3~~decreased $4.2 million, or 6%10%, in the three month period and ~~increased $11.0~~decreased $8.1 million, or 9%, in the ~~nine~~six month period and was primarily affected by:

•~~An increase in revenues;~~Increased personnel, professional fees, amortization and other costs related to the acquisitions of SEI Novus and Atlas Master Trust; partially offset by

•~~Increased~~Decreased direct expenses associated with investment management ~~fees; and~~

•~~Increased personnel and stock-based compensation costs.~~fees.

Investment Managers

Revenues increased ~~$23.6~~$13.1 million, or ~~19%~~9%, in the three month period and increased ~~$66.8~~$33.6 million, or ~~19%~~12%, in the ~~nine~~six month period ended ~~September~~June 30, ~~2021~~2022 and were primarily affected by:

•Higher valuations of existing client assets from market ~~appreciation;~~appreciation in 2021; and

•Positive cash flows into alternative, traditional and separately managed account offerings from new and existing clients; partially offset by

•Client losses and fund closures.

Operating margin ~~increased~~decreased to ~~39%~~35% compared to ~~36%~~40% in the three month period and ~~increased~~decreased to 36% compared to 40% ~~compared to 36%~~ in the ~~nine~~six month period. Operating income ~~increased $13.8~~decreased $2.7 million, or ~~31%~~5%, in the three month period and increased ~~$38.0~~$2.0 million, or ~~29%~~2%, in the ~~nine~~six month period and was primarily affected by:

•An increase in revenues; partially offset by

•Increased personnel costs due to competitive labor markets;

•Increased costs associated with new business, primarily personnel expenses and third-party vendor costs; and

•Increased non-capitalized investment spending, mainly consulting ~~costs; and~~

•~~Increased stock-based compensation costs~~costs.

Other

Corporate overhead expenses

Corporate overhead expenses primarily consist of general and administrative expenses and other costs not directly attributable to a reportable business segment. Corporate overhead expenses were ~~$21.4~~$23.8 million and ~~$18.0~~$22.3 million in the three months ended ~~September~~June 30, ~~2021~~2022 and ~~2020,~~2021, respectively, and ~~$65.2~~$47.8 million and ~~$53.4~~$43.8 million in the ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020,~~2021, respectively. The increase in corporate overhead expenses in the three and six month periods is primarily due to an increase in personnel costs, ~~stock-based compensation,~~ consulting and professional fees.

Other income and expense

Other income and expense items on the accompanying Consolidated Statements of Operations consists of:


		Three Months Ended September 30,				Nine Months Ended September 30,					Three Months Ended June 30,				Six Months Ended June 30,
		2021		2020		2021		2020			2022		2021		2022		2021
Net (loss) gain from investments	Net (loss) gain from investments	$	(575)	$	776	$	134	$	(1,310)	Net (loss) gain from investments	$	(2,620)	$	377	$	(3,109)	$	709
Interest and dividend income	Interest and dividend income	892		1,009		2,715		5,582		Interest and dividend income	1,853		878		2,701		1,823
Interest expense	Interest expense	(101)		(153)		(354)		(456)		Interest expense	(211)		(130)		(461)		(253)
Equity in earnings of unconsolidated affiliate	Equity in earnings of unconsolidated affiliate	35,005		28,305		103,420		86,488		Equity in earnings of unconsolidated affiliate	29,813		35,065		62,272		68,415
Total other income and expense items, net	Total other income and expense items, net	$	35,221	$	29,937	$	105,915	$	90,304	Total other income and expense items, net	$	28,835	$	36,190	$	61,403	$	70,694

Net (loss) gain from investments

Net losses from investments in the three and six months ended June 30, 2022 were primarily due to unrealized mark-to-market losses recorded in current earnings associated with the LSV-sponsored investment funds and Company-sponsored mutual funds from the significant decline in market conditions in 2022 (See Note 5).

Interest and dividend income

Interest and dividend income is earned based upon the amount of cash that is invested daily. The ~~decrease~~increase in interest and dividend income in the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 was due to an overall ~~decline~~increase in interest rates.

Equity in earnings of unconsolidated affiliate

Equity in earnings of unconsolidated affiliate reflects our ownership interest in LSV. As of ~~September~~June 30, ~~2021,~~2022, our total partnership interest in LSV was ~~38.7%~~38.6%. The table below presents the revenues and net income of LSV and the proportionate share in LSV's earnings.


		Three Months Ended September 30,				Percent Change		Nine Months Ended September 30,									Percent Change		Three Months Ended June 30,								Percent Change		Six Months Ended June 30,				Percent Change
		2021		2020			2021			2020						2022				2021					2022				2021
Revenues of LSV	Revenues of LSV	$	115,728	$	94,902		22%			$	342,957			$	289,546				18%		Revenues of LSV	$	99,814			$		116,392	(14)%		$	208,264	$	227,229	(8)%
Net income of LSV	Net income of LSV	90,365		70,440		28%		266,805				220,184					21%	Net income of LSV	77,193				90,520				(15)%		160,984		176,440		(9)%

SEI's proportionate share in earnings of LSV	SEI's proportionate share in earnings of LSV	$	35,005	$	28,305	24%		$	103,420			$	86,488				20%	SEI's proportionate share in earnings of LSV	$	29,813			$	35,065			(15)%		$	62,272	$	68,415	(9)%

The ~~increase~~decrease in earnings from LSV in the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 was primarily due to ~~higher assets under management from market appreciation. Negative~~negative cash flows from existing clients, market depreciation and client ~~losses partially offset the increase in earnings from LSV.~~losses. Average assets under management by LSV ~~increased $16.3~~decreased $8.4 billion to ~~$100.3~~$92.1 billion during the ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 as compared to ~~$84.0~~$100.5 billion during the ~~nine~~six months ended ~~September~~June 30, ~~2020, an~~2021, a decrease of 8%.

Amortization

Amortization expense on the accompanying Consolidated Statements of Operations consists of:


	Three Months Ended June 30,				Percent Change	Six Months Ended June 30,				Percent Change
	2022		2021			2022		2021
Capitalized software development costs	$	13,204	$	13,402	(1)%	$	26,758	$	26,775	—%
Intangible assets acquired through acquisitions and asset purchases	3,243		921		252%	6,496		2,117		207%
Other	80		58		38%	80		58		38%
Total amortization expense	$	16,527	$	14,381	15%	$	33,334	$	28,950	15%

Capitalized software development costs

Capitalized software development costs are amortized on a project basis using the straight-line method over the estimated economic life of the product or enhancement. The capitalization of the initial development work related to SWP began in mid-2007 when the platform was determined to be ready for its intended use. The amortization expense related to the initial software development costs capitalized in 2007 ended in the second quarter of 2022. As a result, we expect amortization expense related to capitalized software in service as of June 30, 2022 to decline to approximately $6.7 million in the third quarter 2022 (See Note 1 to the Consolidated Financial Statements).

Intangible assets acquired through acquisitions and asset purchases

The increase in amortization expense in the three and six month periods was due to the acquisitions of ~~19%~~Finomial, SEI Novus and Atlas Master Trust during the fourth quarter 2021. Through these transactions, we acquired intangible assets related to technology, trade names and client relationships which are amortized over the estimated useful life of the assets (See Note 12 to the Consolidated Financial Statements).

Income Taxes

The effective income tax rates for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020~~2021 differ from the federal income tax statutory rate due to the following:


		Three Months Ended September 30,				Nine Months Ended September 30,					Three Months Ended June 30,				Six Months Ended June 30,
		2021		2020		2021		2020			2022		2021		2022		2021
Statutory rate	Statutory rate	21.0	%	21.0	%	21.0	%	21.0	%	Statutory rate	21.0	%	21.0	%	21.0	%	21.0	%
State taxes, net of federal tax benefit	State taxes, net of federal tax benefit	2.5		3.3		3.0		3.2		State taxes, net of federal tax benefit	2.8		3.2		2.8		3.2
Foreign tax expense and tax rate differential	Foreign tax expense and tax rate differential	(0.1)		(0.2)		(0.1)		(0.1)		Foreign tax expense and tax rate differential	(0.1)		(0.1)		(0.1)		(0.1)
Tax benefit from stock option exercises	Tax benefit from stock option exercises	(0.6)		(0.4)		(1.0)		(1.0)		Tax benefit from stock option exercises	(0.3)		(1.2)		(0.3)		(1.2)
Expiration of the statute of limitations		—		(1.3)		—		(0.5)
Provision-to-return adjustment		(0.5)		(0.4)		(0.2)		(0.1)

Other, net	Other, net	(0.3)		(0.6)		(0.3)		(0.5)		Other, net	(0.3)		(0.6)		(0.3)		(0.4)
		21.7	%	21.4	%	22.2	%	22.0	%		23.1	%	22.3	%	23.1	%	22.5	%

The increase in the effective tax rate in the three and six month periods was primarily due to decreased tax benefits related to the lower volume of stock option exercises in 2022 compared to the prior year period.

Stock-Based Compensation

We recognized ~~$31.2~~$20.6 million and ~~$20.5~~$19.9 million in stock-based compensation expense during the ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 and ~~2020,~~2021, respectively. The amount of stock-based compensation expense we recognize is primarily based upon management's estimate of when the financial vesting targets of outstanding stock options may be achieved. Any change in the estimate could result in the amount of stock-based compensation expense to be accelerated, spread out over a longer period, or reversed. This may cause volatility in the recognition of stock-based compensation expense in future periods and could materially affect earnings.

We revised our estimate of when some vesting targets are expected to be achieved. This change in estimate resulted in ~~an increase~~a decrease of ~~$3.2 million~~$663 thousand in stock-based compensation expense during the ~~nine~~six months ended ~~September~~June 30, ~~2021.~~2022. We expect to recognize ~~$13.1~~$18.6 million in stock-based compensation expense during the remainder of ~~2021.~~2022.

Fair Value Measurements

The fair value of financial assets and liabilities, except for the investment funds sponsored by LSV, is determined in accordance with the fair value hierarchy. The fair value of the investment funds sponsored by LSV is measured using the net asset value per share (NAV) as a practical expedient. The fair value of all other financial assets are determined using Level 1 or Level 2 inputs and consist mainly of investments in equity or fixed-income mutual funds that are quoted daily and Government National Mortgage Association (GNMA) and other U.S. government agency securities that are single

issuer pools that are valued based on current market data of similar assets. Level 3 financial liabilities at ~~September~~June 30, ~~2021~~2022 and December 31, ~~2020~~2021 consist entirely of the estimated contingent consideration resulting from an acquisition (See Note 12 to the Consolidated Financial Statements).

Regulatory Matters

Like many firms operating within the financial services industry, we are experiencing a complex and changing regulatory environment across our markets. Our current scale and reach as a provider to the financial services industry, the introduction and implementation of new solutions for our financial services industry clients, the increased regulatory oversight of the financial services industry generally, new laws and regulations affecting the financial services industry and ever-changing regulatory interpretations of existing laws and regulations, and a greater propensity of regulators to pursue enforcement actions and other sanctions against regulated entities, have made this an increasingly challenging and costly regulatory environment in which to operate.

SEI and some of our regulated subsidiaries have undergone or been scheduled to undergo a range of periodic or thematic reviews, examinations or investigations by numerous regulatory authorities around the world, including the Office of the Comptroller of the Currency, the Securities and Exchange Commission, the Financial Industry Regulatory Authority, the Financial Conduct Authority of the United Kingdom (FCA), the Central Bank of Ireland and others. These regulatory activities typically result in the identification of matters or practices to be addressed by us or our subsidiaries and, in certain circumstances, the regulatory authorities require remediation activities or pursue enforcement proceedings against

us or our subsidiaries. From time to time, the regulators in different jurisdictions will elevate their level of scrutiny of our operations as our business expands or is deemed critical to the operations of the relevant financial markets. As described under the caption “Regulatory Considerations” in our Annual Report on Form 10-K, the range of possible sanctions that are available to regulatory authorities include limitations on our ability to engage in business for specified periods of time, the revocation of registration, censures and fines. The direct and indirect costs of responding to these regulatory activities and of complying with new or modified regulations, as well as the potential financial costs and potential reputational impact against us of any enforcement proceedings that might result, is uncertain but could have a material adverse impact on our operating results or financial position.

Liquidity and Capital Resources


		Nine Months Ended September 30,					Six Months Ended June 30,
		2021		2020			2022		2021
Net cash provided by operating activities	Net cash provided by operating activities	$	483,881	$	396,524	Net cash provided by operating activities	$	330,615	$	324,997
Net cash used in investing activities	Net cash used in investing activities	(87,542)		(64,243)		Net cash used in investing activities	(42,516)		(56,087)
Net cash used in financing activities	Net cash used in financing activities	(387,390)		(401,833)		Net cash used in financing activities	(332,173)		(277,936)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	Effect of exchange rate changes on cash, cash equivalents and restricted cash	(2,442)		(4,196)		Effect of exchange rate changes on cash, cash equivalents and restricted cash	(15,660)		2,578
Net increase (decrease) in cash, cash equivalents and restricted cash		6,507		(73,748)
Net decrease in cash, cash equivalents and restricted cash						Net decrease in cash, cash equivalents and restricted cash	(59,734)		(6,448)
Cash, cash equivalents and restricted cash, beginning of period	Cash, cash equivalents and restricted cash, beginning of period	787,727		844,547		Cash, cash equivalents and restricted cash, beginning of period	831,758		787,727
Cash, cash equivalents and restricted cash, end of period	Cash, cash equivalents and restricted cash, end of period	$	794,234	$	770,799	Cash, cash equivalents and restricted cash, end of period	$	772,024	$	781,279

Cash requirements and liquidity needs are primarily funded through our cash flow from operations and our capacity for additional borrowing. At September 30, 2021, our unused sources of liquidity consisted of cash and cash equivalents and the amount available under our credit facility.

~~On April 23, 2021, we replaced our~~Our credit facility ~~with a new five-year credit facility agreement which~~ provides for borrowings up to $325.0 million and is scheduled to expire in April 2026 (See Note 6 to the Consolidated Financial Statements). ~~The new~~In November 2021, we borrowed $40.0 million under the credit facility ~~is a revolving line~~for the funding of an acquisition (See Note 12 to the Consolidated Financial Statements). We made principal payments of $40.0 million during the six month period ended June 30, 2022 to fully repay the outstanding balance of the credit facility.

As of July 15, 2022, we had outstanding letters of credit ~~with Wells Fargo Bank, N.A.,~~of $6.0 million which reduced the amount available under the credit facility. These letters of credit were primarily issued for the expansion of the corporate headquarters and ~~a syndicate of other lenders and is scheduled~~are due to expire in ~~April 2026.~~ late 2022. As of July 15, 2022, the amount of the credit facility available for corporate purposes was $319.0 million.

The availability of the credit facility is subject to compliance with certain covenants set forth in the agreement. The credit facility contains covenants which restrict our ability to engage in transactions with affiliates other than wholly-owned subsidiaries or to incur liens or certain types of indebtedness as defined in the agreement. In the event of a default under the credit facility, we would also be restricted from paying dividends on, or repurchasing, our common stock. Currently, our ability to borrow from the credit facility is not limited by any covenant of the agreement (See Note 6 to the Consolidated Financial Statements).

The credit facility contains terms that utilize the London InterBank Offered Rate (LIBOR) as a potential component of the interest rate to be applied to any borrowings; however, an alternative reference rate is included under the agreement which provides for a specified replacement rate upon a LIBOR cessation event. At the time of a LIBOR cessation event,

the replacement rate, the Secured Overnight Financing Rate (SOFR), self-executes without the need for negotiations or a formal amendment process.

We had outstanding letters of credit of $5.8 million as of October 21, 2021 which reduced our amount available under the credit facility to $319.2 million. These letters of credit were primarily issued for the expansion of our corporate headquarters completed in 2020 and are due to expire in late 2021.

The majority of excess cash reserves are primarily placed in accounts located in the United States that invest entirely in SEI-sponsored money market mutual funds denominated in the U.S. dollar. We also utilize demand deposit accounts or money market accounts at several well-established financial institutions located in the United States. Accounts used to manage these excess cash reserves do not impose any restrictions or limitations that would prevent us from being able to access such cash amounts immediately. As of ~~October 21, 2021,~~July 15, 2022, the amount of cash and cash equivalents considered free and immediately accessible for other general corporate purposes was ~~$376.1~~$386.2 million.

Cash and cash equivalents include accounts managed by subsidiaries that are used in their operations or to cover specific business and regulatory requirements. The availability of this cash for other purposes beyond the operations of these subsidiaries may be limited. We therefore do not include accounts of foreign subsidiaries in the calculation of free and immediately accessible cash for other general corporate purposes. A portion of the undistributed earnings of foreign subsidiaries are deemed repatriated. Any subsequent transfer of available cash related to the repatriated earnings of foreign subsidiaries could significantly increase free and immediately accessible cash.

Cash flows from operations increased ~~$87.4~~$5.6 million in the first ~~nine~~six months of ~~2021~~2022 compared to the first ~~nine~~six months of ~~2020~~2021 primarily from the increase in net ~~income and increased repayments from LSV related to their working capital accounts.~~income. The negative impact from the change in the Company's working capital accounts ~~and lower distribution payments received from LSV~~ partially offset the ~~increase.~~increase in cash flows from operations.

Net cash used in investing activities includes:

•Purchases, sales and maturities of marketable securities. Purchases, sales and maturities of marketable securities in the first ~~nine~~six months of ~~2021~~2022 and ~~2020~~2021 were as follows:


		Nine Months Ended September 30,					Six Months Ended June 30,
		2021		2020			2022		2021
Purchases	Purchases	$	(168,333)	$	(114,407)	Purchases	$	(96,642)	$	(81,541)
Sales and maturities	Sales and maturities	134,222		113,417		Sales and maturities	90,659		64,194
Net investing activities from marketable securities	Net investing activities from marketable securities	$	(34,111)	$	(990)	Net investing activities from marketable securities	$	(5,983)	$	(17,347)

See Note 5 to the Consolidated Financial Statements for more information related to marketable securities.

•The capitalization of costs incurred in developing computer software. We capitalized ~~$19.5~~$13.8 million of software development costs in the first ~~nine~~six months of ~~2021~~2022 as compared to ~~$18.6~~$12.3 million in the first ~~nine~~six months of ~~2020.~~2021. The majority of our software development costs are related to significant enhancements for the expanded functionality of the SEI Wealth Platform.

•Capital expenditures. Capital expenditures in the first ~~nine~~six months of ~~2021~~2022 were ~~$22.5~~$19.8 million as compared to ~~$43.1~~$15.5 million in the first ~~nine~~six months of ~~2020.~~2021. Expenditures in 2022 and 2021 include capital outlays for purchased software and equipment for data center operations. ~~Expenditures in 2020 include the expansion of our corporate headquarters completed in the fourth quarter 2020 as well as purchased software and equipment.~~ We continue to evaluate improvements to our information technology infrastructure which, if implemented, will result in additional expenditures for purchased software and equipment for data center operations.

•~~Other investing activities.~~ We made a payment of $11.0 million in the first nine months of 2021 to purchase a technology platform providing digital collaboration tools for financial advisors. In October 2021, we made a payment related to the acquisition of an investor lifecycle management fintech firm. The cash payment associated with this acquisition was not material. In November 2021, pending regulatory approval, we expect to make a payment for the acquisition of a defined contribution master trust in the United Kingdom. The cash payment related to this acquisition is not expected to be material.

Net cash used in financing activities includes:

•Principal repayments on revolving credit facility. In November 2021, we borrowed $40.0 million for the funding of an acquisition. We made principal payments of $40.0 million during the first six months of 2022 to fully repay the outstanding balance of the credit facility.

•The repurchase of common stock. Our Board of Directors has authorized the repurchase of common stock through multiple authorizations. Currently, there is no expiration date for the common stock repurchase program. We had total capital outlays of ~~$315.8~~$210.3 million during the first ~~nine~~six months of ~~2021~~2022 and ~~$327.1~~$197.3 million during the first ~~nine~~six months of ~~2020~~2021 for the repurchase of common stock.

•Proceeds from the issuance of common stock. We received ~~$37.9~~$28.8 million in proceeds from the issuance of common stock during the first ~~nine~~six months of ~~2021 as compared to $29.8 million during the first nine months of 2020. The increase in~~2022 and 2021. These proceeds iswere primarily ~~attributable to a higher level of~~from stock option exercise activity.

•Dividend payments. Cash dividends paid were $109.8 million in the first six months of 2022 as compared to $105.5 million in the first ~~nine~~six months of ~~2021 as compared~~2021.

Cash Requirements

Cash requirements and liquidity needs are primarily funded through cash flow from operations and our capacity for additional borrowing. At June 30, 2022, unused sources of liquidity consisted of cash and cash equivalents and the amount available under our credit facility.

We are obligated to ~~$103.9 million~~make payments in connection with the ~~first nine months of 2020.~~

credit facility, operating leases, maintenance contracts and other commitments. We believe our operating cash flow, available borrowing capacity, and existing cash and cash equivalents ~~should~~will provide adequate funds for these obligations and ongoing ~~operations; continued investment in new products~~operations. We currently anticipate that our available funds and ~~equipment; the common~~cash flow from operations will be sufficient to meet our operational cash needs and fund our stock repurchase program for at least the next 12 months and ~~future dividend payments.~~for the foreseeable future.

Forward-Looking Information and Risk Factors

The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. Certain information contained in this discussion is or may be considered forward-looking. Forward-looking statements relate to future operations, strategies, financial results or other developments. Forward-looking statements are based upon estimates and assumptions that involve certain 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.

Among the risks and uncertainties which may affect our future operations, strategies, financial results or other developments are those risks described in our latest Annual Report on Form 10-K in Part I, Item 1A. These risks include the following:

•changes in capital markets that may affect our revenues and earnings;

•product development risk;

•risk of failure by a third-party service provider;

•~~data and cyber security risks;~~

•~~operational risks associated with the processing of investment transactions;~~

•~~systems and technology risks;~~

•~~intellectual property risks;~~

•pricing pressure from increased competition, disruptive technology and poor investment performance;

•the affect on our earnings and cashflows from the performance of LSV Asset Management;

•~~third-party pricing services for the valuation of securities invested in~~consolidation within our ~~investment products;~~target markets;

•external factors affecting the fiduciary management market;

•software defects, development delays or installation difficulties, which would harm our business and reputation and expose us to potential liability;

•data and cyber security risks;

•risk of the disclosure and misuse of personal data;

•risk of outages, data losses, and disruptions of services;

•intellectual property risks;

•third-party service providers in our operations;

•poor investment performance of our investment products or a client preference for products other than those which we offer or for products that generate lower fees;

•investment advisory contracts which may be terminated or may not be renewed on favorable terms;

•operational risks associated with the processing of investment transactions;

•systems and technology risks;

•the affect of extensive governmental regulation;

•litigation and regulatory examinations and investigations;

•our ability to capture the expected value from acquisitions, divestitures, joint ventures, minority stakes or strategic alliances;

•increased costs and regulatory risks from the growth of our business;

•fiduciary or other legal liability for client losses from our investment management operations;

•~~consolidation within our target markets;~~

•our ability to receive dividends or other payments in needed amounts from our subsidiaries;

•the exit by the United Kingdom from the European Union;

•~~third-party approval of our investment products with advisors affiliated with independent broker-dealers or other networks;~~

•the effectiveness of our business, risk management and business continuity strategies, models and processes;

•financial and non-financial covenants which may restrict our ability to manage liquidity needs;

•changes in, or interpretation of, accounting principles or tax rules and regulations;

•fluctuations in foreign currency exchange rates;

•fluctuations in interest rates affecting the value of our fixed-income investment securities;

•our ability to hire and retain qualified employees;

•the competence and integrity of our employees and third-parties;

•stockholder activism efforts;

•retention of executive officers and senior management personnel; ~~and~~

•unforeseen or catastrophic events, including the emergence of pandemic, ~~terrorist attacks,~~ extreme weather events or other natural ~~disasters.~~disasters; and

•geopolitical unrest and other events.

We conduct operations through many regulated wholly-owned subsidiaries. These subsidiaries include:

•SEI Investments Distribution Co., or SIDCO, a broker-dealer registered with the SEC under the Securities Exchange Act of 1934 and a member of the Financial Industry Regulatory Authority, Inc., or FINRA;

•SEI Investments Management Corporation, or SIMC, an investment advisor registered with the SEC under the Investment Advisers Act of 1940 and with the Commodity Futures Trading Commission, or CFTC, under the Commodity Exchange Act;

•SEI Private Trust Company, or SPTC, a limited purpose federal thrift chartered and regulated by the Office of the Comptroller of the Currency;

•SEI Trust Company, or STC, a Pennsylvania trust company, regulated by the Pennsylvania Department of Banking and Securities;

•SEI Institutional Transfer Agent, Inc., or SITA, a transfer agent registered with the SEC under the Securities Exchange Act of 1934;

•SEI Investments (Europe) Limited, or SIEL, an investment manager and financial institution subject to regulation by the Financial Conduct Authority of the United Kingdom;

•SEI Investments Canada Company, or SEI Canada, an investment fund manager that has various other capacities that is regulated by the Ontario Securities Commission and various provincial authorities;

•SEI Investments Global, Limited, or SIGL, a management company for Undertakings for Collective Investment in Transferable Securities, or UCITS, and for Alternative Investment Funds, or AIFs, that is regulated primarily by the Central Bank of Ireland, or CBI;

•SEI Investments - Global Fund Services, Ltd., or GFSL, an authorized provider of administration services for Irish and non-Irish collective investment schemes that is regulated by the CBI; ~~and~~

•SEI Investments - Depositary and Custodial Services (Ireland) Limited, or D&C, an authorized provider of depositary and custodial services that is regulated by the ~~CBI.~~CBI;

•SEI Investments - Luxembourg S.A., or SEI Lux, a professional of the specialized financial sector subject to regulation by the Commission de Surveillance du Secteur Financier of the Grand Duchy of Luxembourg;

•SEI Investments Global (Cayman), Ltd., a full mutual fund administrator that is regulated by the Cayman Island Monetary Authority; and

•SEI Investments (South Africa) (PTY) Limited, a Private Company that is a licensed Financial Service Provider regulated by the Financial Sector Conduct Authority.

In addition to the regulatory authorities listed above, our subsidiaries are subject to the jurisdiction of regulatory authorities in other foreign countries. In addition to our wholly-owned subsidiaries, we also own a minority interest of approximately ~~38.7 percent~~38.6% in LSV, which is also an investment advisor registered with the SEC.

The Company, its regulated subsidiaries, their regulated services and solutions and their customers are all subject to extensive legislation, regulation, and supervision that recently has been subject to, and continues to experience, significant change and increased regulatory activity. These changes and regulatory activities could have a material adverse effect on us and our clients.

The various governmental agencies and self-regulatory authorities that regulate or supervise the Company and its subsidiaries have broad administrative powers. In the event of a failure to comply with laws, regulations, and requirements of these agencies and authorities, the possible business process changes required or sanctions that may be imposed include the suspension of individual employees, limitations on our ability to engage in business for specified periods of time, the revocation of applicable registration as a broker-dealer, investment advisor or other regulated entity, and, as the case may be, censures and fines. Additionally, certain securities and banking laws applicable to us and our subsidiaries provide for certain private rights of action that could give rise to civil litigation. Any litigation could have significant financial and non-financial consequences including monetary judgments and the requirement to take action or limit activities that could ultimately affect our business.

Governmental scrutiny from regulators, legislative bodies, and law enforcement agencies with respect to matters relating to our regulated subsidiaries and their activities, services and solutions, our business practices, our past actions and other matters has increased dramatically in the past several years. Responding to these examinations, investigations, actions, and lawsuits, regardless of the ultimate outcome of the proceeding, is time consuming and expensive and can divert the time and effort of our senior management from our business. Penalties, fines and changes to business processes sought by regulatory authorities have increased substantially over the last several years, and certain regulators have been more likely in recent years to commence enforcement actions or to advance or support legislation targeted at the financial services industry. We continue to be subject to inquiries from examinations and investigations by supervisory and enforcement divisions of regulatory authorities and expect this to continue in the future. We believe this is also the case with many of our regulated clients. Governmental scrutiny and legal and enforcement proceedings can also have a

negative impact on our reputation, our relationship with clients and prospective clients, and on the morale and performance of our employees, which could adversely affect our businesses and results of operations.

We are subject to ~~the USA PATRIOT Act of 2001, which contains~~U.S. and foreign anti-money laundering and financial transparency laws ~~and requires~~that require implementation of regulations applicable to financial services companies, including standards for verifying client identification and monitoring client transactions and detecting and reporting suspicious activities. ~~Anti-money laundering laws outside the United States contain similar requirements.~~ We offer investment and banking solutions that also are subject to regulation by the federal and state securities and banking authorities, as well as foreign regulatory

authorities, where applicable. Existing or future regulations that affect these solutions could lead to a reduction in sales of these solutions or require modifications of these solutions.

We must comply with economic sanctions and embargo programs administered by the Office of Foreign Assets Control (OFAC) and similar national and multinational bodies and governmental agencies outside the United States, as well as anti-corruption and anti-money laundering laws and regulations throughout the world. We can incur higher costs and face greater compliance risks in structuring and operating our businesses to comply with these requirements. Furthermore, a violation of a sanction or embargo program or anti-corruption or anti-money laundering laws and regulations could subject us and our subsidiaries, and individual employees, to regulatory enforcement actions as well as significant civil and criminal penalties.

Our businesses are also subject to privacy and data protection information security legal requirements concerning the use and protection of certain personal information. These include those adopted pursuant to the Gramm-Leach-Bliley Act and the Fair and Accurate Credit Transactions Act of 2003 in the United States, the General Data Protection Regulation (GDPR) in the EU, Canada’s Personal Information Protection and Electronic Documents Act, the Cayman Islands' Data Protection Law, and various other laws. Privacy and data security legislation is a priority issue in many states and localities in the United States, as well as foreign jurisdictions outside of the EU. For example, California enacted the California Consumer Privacy Act (CCPA) which broadly regulates the sale of the consumer information of California residents and grants California residents certain rights to, among other things, access and delete data about them in certain circumstances. Other states are considering similar proposals. Such attempts by the states to regulate have the potential to create a patchwork of differing and/or conflicting state regulations. Ensuring compliance under ever-evolving privacy legislation, such as GDPR and CCPA, is an ongoing commitment, which involves substantial costs.

Compliance with existing and future regulations and responding to and complying with recent increased regulatory activity affecting broker-dealers, investment advisors, investment companies, financial institutions, and their service providers could have a significant impact on us. We periodically undergo regulatory examinations and respond to regulatory inquiries and document requests. In addition, recent and continuing legislative activity in the United States and in other jurisdictions (including the European Union and the United Kingdom) have made and continue to make extensive changes to the laws regulating financial services firms. As a result of these examinations, inquiries, and requests, as a result of increased civil litigation activity, and as a result of these new laws and regulations, we engage legal counsel and other subject matter experts, review our compliance procedures, solution and service offerings, and business operations, and make changes as we deem necessary or as may be required by the applicable authority. These additional activities and required changes may result in increased expense or may reduce revenues.

Our bank clients are subject to supervision by federal, state, and foreign banking and financial services authorities concerning the manner in which such clients purchase and receive our products and services. Our plan sponsor clients and our subsidiaries providing services to those clients are subject to supervision by the Department of Labor and compliance with employee benefit regulations. Investment advisor and broker-dealer clients are regulated by the SEC, state securities authorities, or FINRA. Existing or future regulations applicable to our clients may affect our clients’ purchase of our products and services.

In addition, see the discussion of governmental regulations in Item 1A “Risk Factors” in our latest Annual Report on Form 10-K for a description of the risks that the current regulatory regimes and proposed regulatory changes may present for our business.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

Information required by this item is set forth under the captions "Our revenues and earnings are affected by changes in capital markets and significant changes in the value of financial instruments" and "Changes in interest rates may affect the value of our fixed-income investment securities" in Item 1A ~~"Risk Factors"~~Risk Factors and under the caption "Impact of ~~COVID-19 and Other Events"~~COVID-19" in Item 7, ~~"Management's~~Management's Discussion and Analysis of Financial Condition and Results of ~~Operations"~~Operations of our Annual Report on Form 10-K for the year ended December 31, ~~2020.~~2021. There have been no material changes to this information as it is disclosed in our Annual Report on Form 10-K for ~~2020.~~2021.

Item 4. Controls and Procedures.

(a) Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures as of the end of the period covered by this report are effective in ensuring that information required to be disclosed by us in reports filed under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the

time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Act is accumulated and communicated to the issuer’s management including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. A controls system, no matter how well designed and operated, cannot provide absolute assurance that the objectives of the controls systems are met, and no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company have been detected.

(b) Change in Internal Control over Financial Reporting

No change in our internal control over financial reporting occurred during the quarter ended ~~September~~June 30, ~~2021~~2022 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

4445

PART II. OTHER INFORMATION

Item 1. Legal Proceedings.

We and certain of our subsidiaries are a party to or have property subject to litigation and other proceedings, examinations and investigations that arise in the ordinary course of our business that we do not believe are material. These types of matters could result in fines, penalties, cost reimbursements or contributions, compensatory or treble damages or non-monetary sanctions or relief. We believe the probability is remote that the outcome of any of these matters will have a material adverse effect on SEI as a whole, notwithstanding that the unfavorable resolution of any matter may have a material effect on our net earnings in any particular interim reporting period. We cannot predict the outcome of legal or other proceedings with certainty. These matters include the proceedings summarized in “Note 11. Commitments and Contingencies” included in our Notes to Consolidated Financial Statements.

Item 1A. Risk Factors.

Information regarding risk factors appears in Part I – Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, ~~2020.~~2021. There have been no material changes in the risk factors from those disclosed in the Annual Report on Form 10-K for ~~2020.~~2021.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

(e) Our Board of Directors has authorized the repurchase of up to ~~$4.682~~$5.328 billion worth of our common stock through multiple authorizations. Currently, there is no expiration date for the common stock repurchase program. On June 1, 2022, the Board of Directors approved an increase in the stock repurchase program by an additional $200.0 million.

Information regarding the repurchase of common stock during the three months ended ~~September~~June 30, ~~2021~~2022 is as follows:

Period Total Number
of Shares
Purchased Average
Price Paid
per Share Total Number of
Shares Purchased as
Part of Publicly
Announced Program Approximate Dollar
Value of Shares that
May Yet Be
Purchased
Under the Program
July 2021 200,000 $ 60.87 200,000 $ 234,495,000
August 2021 619,000 61.77 619,000 196,241,000
September 2021 1,160,000 59.89 1,160,000 126,775,000
Total 1,979,000 $ 60.57 1,979,000


Period	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Program	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program
April 2022	450,000	$	56.95	450,000	$	105,578,000
May 2022	750,000	55.30		750,000	64,105,000
June 2022	770,000	54.81		770,000	221,910,000
Total	1,970,000	$	55.48	1,970,000

Item 6. Exhibits.

The following is a list of exhibits filed as part of the Form 10-Q.



10.1			Form of Restricted Stock Unit Grant Agreement with time-based vesting for employee awards under the Registrant's 2014 Omnibus Equity Compensation Plan.

31.1			Rule 13a-15(e)/15d-15(e) Certification of Chief Executive Officer.

31.2			Rule 13a-15(e)/15d-15(e) Certification of Chief Financial Officer.

32			Section 1350 Certifications.

101.INS			XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

101.SCH			XBRL Taxonomy Extension Schema Document

101.CAL			XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF			XBRL Taxonomy Extension Definition Linkbase Document

101.LAB			XBRL Taxonomy Extension Label Linkbase Document

101.PRE			XBRL Taxonomy Extension Presentation Linkbase Document

4546

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 thereunto duly authorized.

SEI INVESTMENTS COMPANY

Date:

~~October~~July 25, ~~2021~~2022

By:

/s/ Dennis J. McGonigle

Dennis J. McGonigle

Chief Financial Officer

4647